Peabody Energy (BTU) 10-K 24 Feb 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. 12, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	PEABODY ENERGY CORP
Entity Central Index Key	0001064728
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			8.1
Entity Common Stock, Shares Outstanding		268,757,971

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues
Sales	5468.1	$6,004	4313.9
Other revenues	544.3	557	209.9
Total revenues	6012.4	6,561	4523.8
Costs and expenses
Operating costs and expenses	4467.7	4585.2	3510.1
Depreciation, depletion and amortization	405.2	402.4	346.3
Asset retirement obligation expense	40.1	48.2	23.7
Selling and administrative expenses	208.7	201.8	147.1
Other operating (income) loss:
Net gain on disposal or exchange of assets	-23.2	-72.9	-88.6
(Income) loss from equity affiliates	69.1	0	-14.5
Operating profit	844.8	1396.3	599.7
Interest expense	201.2	227	235.8
Interest income	-8.1	(10)	(7)
Income from continuing operations before income taxes	651.7	1179.3	370.9
Income tax provision (benefit)	193.8	191.4	-70.7
Income from continuing operations, net of income taxes	457.9	987.9	441.6
Income (loss) from discontinued operations, net of income taxes	5.1	-28.8	-180.1
Net income	463	959.1	261.5
Less: Net income (loss) attributable to noncontrolling interests	14.8	6.2	-2.3
Net income attributable to common stockholders	448.2	952.9	263.8
Income From Continuing Operations
Basic earnings per share	1.66	3.63	1.67
Diluted earnings per share	1.64	3.6	1.64
Net Income Attributable to Common Stockholders
Basic earnings per share	1.68	3.52	0.99
Diluted earnings per share	1.66	3.5	0.97
Dividends declared per share	0.25	0.24	0.24

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets
Cash and cash equivalents	988.8	449.7
Accounts receivable, net of allowance for doubtful accounts of $18.3 at December 31, 2009 and $24.8 at December 31, 2008	303	382.2
Inventories	325.1	276.2
Assets from coal trading activities, net	276.8	662.8
Deferred income taxes	40	1.7
Other current assets	255.3	198.7
Total current assets	2,189	1971.3
Property, plant, equipment and mine development
Land and coal interests	7557.3	7349.4
Buildings and improvements	908	858.1
Machinery and equipment	1391.2	1245.1
Less: accumulated depreciation, depletion and amortization	(2,595)	-2155.3
Property, plant, equipment and mine development, net	7261.5	7297.3
Investments and other assets	504.8	427
Total assets	9955.3	9695.6
Current liabilities
Current maturities of long-term debt	14.1	17
Liabilities from coal trading activities, net	110.6	304.2
Accounts payable and accrued expenses	1187.7	1,535
Total current liabilities	1312.4	1856.2
Long-term debt, less current maturities	2738.2	2776.6
Deferred income taxes	299.1	20.8
Asset retirement obligations	452.1	418.7
Accrued postretirement benefit costs	914.1	766.1
Other noncurrent liabilities	483.5	737.7
Total liabilities	6199.4	6576.1
Stockholders' equity
Preferred Stock	0	0
Common Stock	2.8	2.8
Additional paid-in capital	2067.7	2020.2
Retained earnings	2183.8	1802.4
Accumulated other comprehensive loss	-183.5	-388.5
Treasury shares, at cost: 8,644,464 shares as of December 31, 2009 and 8,566,261 shares as of December 31, 2008	-321.1	-318.8
Peabody Energy Corporation's stockholders' equity	3749.7	3118.1
Noncontrolling interests	6.2	1.4
Total stockholders' equity	3755.9	3119.5
Total liabilities and stockholders' equity	9955.3	9695.6
Series A Junior Participating Preferred Stock
Stockholders' equity
Preferred Stock	0	0
Common Stock
Stockholders' equity
Total stockholders' equity	2.8	2.8
Additional Paid-in Capital
Stockholders' equity
Total stockholders' equity	2067.7	2020.2
Treasury Stock
Stockholders' equity
Total stockholders' equity	-321.1	-318.8
Retained Earnings
Stockholders' equity
Total stockholders' equity	2183.8	1802.4
Accumulated Other Comprehensive Loss
Stockholders' equity
Total stockholders' equity	-183.5	-388.5
Noncontrolling Interests
Stockholders' equity
Total stockholders' equity	6.2	1.4
Perpetual Preferred Stock
Stockholders' equity
Preferred Stock	0	0
Series Common Stock
Stockholders' equity
Common Stock	$0	$0

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Current assets
Allowance for doubtful accounts receivable, current	18.3	24.8
Stockholders' equity
Preferred stock, par value	0.01	0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	0.01	0.01
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares issued	276,848,279	275,211,240
Common stock, shares outstanding	268,203,815	266,644,979
Treasury stock, shares	8,644,464	8,566,261
Series A Junior Participating Preferred Stock
Stockholders' equity
Preferred stock, shares authorized	1,500,000	1,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Perpetual Preferred Stock
Stockholders' equity
Preferred stock, shares authorized	750,000	750,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series Common Stock
Stockholders' equity
Common stock, par value	0.01	0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash Flows From Operating Activities
Net income	$463	959.1	261.5
(Income) loss from discontinued operations, net of income taxes	-5.1	28.8	180.1
Income from continuing operations, net of income taxes	457.9	987.9	441.6
Adjustments to reconcile income from continuing operations, net of income taxes to net cash provided by operating activities:
Depreciation, depletion and amortization	405.2	402.4	346.3
Deferred income taxes	131.1	-33.3	-196.5
Share-based compensation	38.8	34.9	20.1
Amortization of debt discount and debt issuance costs	7.8	7.7	8
Net gain on disposal or exchange of assets	-23.2	-72.9	-88.6
(Income) loss from equity affiliates	69.1	0	-14.5
Revenue recovery on coal supply agreement	0	-56.9	0
Dividends received from equity affiliates	0	19.9	12.9
Changes in current assets and liabilities:
Accounts receivable, including securitization	81.4	-114.7	65.6
Inventories	-48.9	-13.2	-60.9
Net assets from coal trading activities	70.9	(43)	-77.6
Other current assets	-3.3	1.9	-57.1
Accounts payable and accrued expenses	-123.8	235.1	52.6
Asset retirement obligations	27.7	32.9	13.6
Workers' compensation obligations	3	10.3	2.7
Accrued postretirement benefit costs	7.2	13.6	13.1
Contributions to pension plans	-38.7	-21.3	-5.4
Other, net	-8.7	18.5	-15.2
Net cash provided by continuing operations	1053.5	1409.8	460.7
Net cash used in discontinued operations	-5.6	(123)	-141.3
Net cash provided by operating activities	1047.9	1286.8	319.4
Cash Flows From Investing Activities
Additions to property, plant, equipment and mine development	-260.6	-264.1	-438.8
Investment in Prairie State Energy Campus	-56.8	-40.9	-28.8
Federal coal lease expenditures	-123.6	-178.5	-178.2
Proceeds from disposal of assets, net of notes receivable	53.9	72.8	119.6
Additions to advance mining royalties	-6.1	(6)	-8.1
Investments in equity affiliates and joint ventures	(15)	-2.6	-4.6
Net cash used in continuing operations	-408.2	-419.3	-538.9
Net cash provided by (used in) discontinued operations	1.7	23.9	-36.4
Net cash used in investing activities	-406.5	-395.4	-575.3
Cash Flows From Financing Activities
Change in revolving line of credit	0	-97.7	97.7
Payments of long-term debt	-37.1	-32.7	-117.8
Common stock repurchase	0	-199.8	0
Dividends paid	-66.8	-64.9	-63.7
Payment of debt issuance costs	0	0	-0.8
Excess tax benefit related to stock options exercised	0	0	96.7
Proceeds from stock options exercised	3.6	14.1	26.2
Net proceeds from borrowing	0.8	0	0
Acquisition of noncontrolling interests (Millennium Mine)	0	-110.1	0
Other, net	-2.8	4.1	3.4
Net cash provided by (used in) continuing operations	-102.3	(487)	41.7
Net cash used in discontinued operations	0	0	(67)
Net cash used in financing activities	-102.3	(487)	-25.3
Net change in cash and cash equivalents	539.1	404.4	-281.2
Cash and cash equivalents at beginning of year	449.7	45.3	326.5
Cash and cash equivalents at end of year	988.8	449.7	45.3

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders Equity (USD $)
In Millions	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests	Total
Beginning balance at Dec. 31, 2006	2.7	$1,788	-103.7	1115.9	-249.2	33.3	$2,587
Comprehensive income:
Net income				263.8		-2.3	261.5
Increase (decrease) in fair value of cash flow hedges (net of $220.9 tax provision), (net of $178.2 tax benefit) and (net of $14.5 tax provision) for the years ended 2009, 2008, and 2007 respectively					21.9		21.9
Postretirement plans and workers' compensation obligations (net of $71.8 tax benefit), (net of $59.3 tax benefit) and (net of $50.2 tax provision) for the years ended 2009, 2008 and 2007, respectively					87.2		87.2
Comprehensive income				263.8	109.1	-2.3	370.6
Dividends paid				-63.7			-63.7
Patriot Coal Corporation spin-off				-375.1	73	-14.1	-316.2
Share-based compensation		48.8					48.8
Stock options exercised		26.2					26.2
Employee stock purchases		6.4					6.4
Shares relinquished			-4.3				-4.3
Income tax benefits from stock options exercised		96.7					96.7
Noncontrolling interests activity related to discontinued operations						-6.2	-6.2
Distributions to noncontrolling interests						(3)	(3)
Acquisition of noncontrolling interests associated with Excel Coal Limited - purchase accounting adjustment						(7)	(7)
Ending balance at Dec. 31, 2007	2.7	1966.1	(108)	940.9	-67.1	0.7	2735.3
Comprehensive income:
Net income				952.9		6.2	959.1
Increase (decrease) in fair value of cash flow hedges (net of $220.9 tax provision), (net of $178.2 tax benefit) and (net of $14.5 tax provision) for the years ended 2009, 2008, and 2007 respectively					-217.9		-217.9
Postretirement plans and workers' compensation obligations (net of $71.8 tax benefit), (net of $59.3 tax benefit) and (net of $50.2 tax provision) for the years ended 2009, 2008 and 2007, respectively					-103.5		-103.5
Comprehensive income				952.9	-321.4	6.2	637.7
Dividends paid				-64.9			-64.9
Patriot Coal Corporation spin-off adjustment				-26.5			-26.5
Share-based compensation		34.9					34.9
Stock options exercised	0.1	14					14.1
Employee stock purchases		5.2					5.2
Shares relinquished			(11)				(11)
Common stock repurchased			-199.8				-199.8
Distributions to noncontrolling interests						-1.1	-1.1
Eliminations of noncontrolling interests due to acquisitions						-4.4	-4.4
Ending balance at Dec. 31, 2008	2.8	2020.2	-318.8	1802.4	-388.5	1.4	3119.5
Comprehensive income:
Net income				448.2		14.8	463
Increase (decrease) in fair value of cash flow hedges (net of $220.9 tax provision), (net of $178.2 tax benefit) and (net of $14.5 tax provision) for the years ended 2009, 2008, and 2007 respectively					319.8		319.8
Postretirement plans and workers' compensation obligations (net of $71.8 tax benefit), (net of $59.3 tax benefit) and (net of $50.2 tax provision) for the years ended 2009, 2008 and 2007, respectively					-114.8		-114.8
Comprehensive income				448.2	205	14.8	668
Dividends paid				-66.8			-66.8
Share-based compensation		38.8					38.8
Stock options exercised		3.6					3.6
Employee stock purchases		5.1					5.1
Shares relinquished			-2.3				-2.3
Distributions to noncontrolling interests						(10)	(10)
Ending balance at Dec. 31, 2009	2.8	2067.7	-321.1	2183.8	-183.5	6.2	3755.9

1_Consolidated Statements of Ch

Consolidated Statements of Changes in Stockholders Equity (Parenthetical) (USD $)
In Millions	Accumulated Other Comprehensive Loss	Total
Comprehensive income:
Cash flow hedges, taxes	14.5	14.5
Postretirement plans and workers' compensation obligations, taxes	50.2	50.2
Comprehensive income:
Cash flow hedges, taxes	178.2	178.2
Postretirement plans and workers' compensation obligations, taxes	59.3	59.3
Comprehensive income:
Cash flow hedges, taxes	220.9	220.9
Postretirement plans and workers' compensation obligations, taxes	71.8	71.8

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(1) Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Peabody Energy Corporation (the Company) and its affiliates. All intercompany transactions, profits and balances have been eliminated in consolidation. Description of Business The Company is engaged in the mining of thermal coal for sale primarily to electric utilities and metallurgical coal for sale to industrial customers. The Companys mining operations are located in the United States (U.S.) and Australia, and include an equity interest in a mining operation in Venezuela. In addition to the Companys mining operations, the Company markets, brokers and trades coal. The Companys other energy related commercial activities include participating in the development of mine-mouth coal-fueled generating plants, the management of its vast coal reserve and real estate holdings, and the development of Btu Conversion and clean coal technologies. The Companys Btu Conversion projects are designed to expand the uses of coal through various technologies such as coal-to-liquids and coal gasification. Newly Adopted Accounting Standards In August 2009, the Financial Accounting Standards Board (FASB) issued accounting guidance that clarifies the fair value measurement of liabilities in circumstances in which a quoted price in an active market for the identical liability is not available. In those circumstances, an entity is required to measure fair value utilizing one or more of the following techniques: (1)a valuation technique that uses the quoted market price of an identical liability or similar liabilities when traded as assets; or (2)another valuation technique that is consistent with the principles of Accounting Standards Codification (ASC) Topic 820, such as a present value technique or market approach. The guidance also clarifies that when estimating the fair value liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of a liability. Additionally, the guidance clarifies that both a quoted price in an active market for the identical liability at the measurement date and the quoted price for the identical liability when traded as an asset in an active market when no adjustments to the quoted price of the asset are required are Level1 fair value measurements. The guidance, which became effective in the fourth quarter of 2009, did not have a material impact on the Companys results of operations or financial condition. In May 2009, the FASB issued an accounting standard that was effective upon issuance that establishes accounting and disclosure guidance for subsequent events, which are events that occur after the balance sheet date but before financial statements are issued or are available to be issued. The Company evaluated subsequent events after the balance sheet date of December31, 2009 through the filing of this report with the Securities and Exchange Commission on February24, 2010. In April 2009, the FASB issued an accounting standard which requires di

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Discontinued Operations [Abstract]
Discontinued Operations	(2) Discontinued Operations Patriot Coal Corporation On October31, 2007, the Company spun-off portions of its formerly Eastern U.S.Mining operations business segment through a dividend of all outstanding shares of Patriot Coal Corporation (Patriot), which is now an independent public company traded on the New York Stock Exchange (symbol PCX). The spin-off included eight company-operated mines, two joint venture mines, and numerous contractor operated mines serviced by eight coal preparation facilities along with 1.2billion tons of proven and probable coal reserves. Revenues from the spun-off operations are the result of supply agreements the Company entered into with Patriot to meet commitments under non-assignable pre-existing customer agreements sourced from Patriot mining operations. The Company makes no profit as part of these arrangements. The loss from discontinued operations for the year ended December31, 2008 was primarily related to the write-off of a $19.4million receivable related to excise taxes previously paid on export shipments produced from discontinued operations. As part of the Patriot spin-off, the Company retained a receivable for excise tax refunds on export shipments that had previously been ruled unconstitutional by the appellate court. The U.S.Supreme Court reversed the appellate courts ruling on April15, 2008, and the Company recorded the charge to discontinued operations. In October 2008, the Energy Improvement and Extension Act of 2008 was enacted, which contained provisions that allow for the refund of coal excise tax collected on coal exported from the U.S.between January1, 1990 and the date of the legislation. The Companys claim for refund was approved by the Internal Revenue Service (IRS) in 2009. During the year ended December31, 2009 the refund of approximately $35million (net of income taxes) was recorded in Income (loss) from discontinued operations, net of income taxes in the consolidated statement of operations. Approximately $59million was received during 2009 and is shown in Net cash used in discontinued operations as a component of cash flows from operating activities in the consolidated statements of cash flows. Baralaba In December 2008, the Company sold its Baralaba Mine, a non-strategic Australian mine, for $25.8million of cash proceeds and an Australian dollar note receivable valued at approximately $8.7million on December31, 2008, resulting in a gain of $26.2million. In 2008, the non-cash portion of this transaction was excluded from the investing section of the consolidated statement of cash flows. Chain Valley In December 2009, the Company sold its Chain Valley Mine, a non-strategic Australian mine, and recorded a loss of $10.0million in conjunction with the sale. Summary Financial Information Operating results related to discontinued operations and assets held for sale were as follows: Year Ended December31, 2009 2008 2007 (Dollars in millions) Revenues: Patriot $ 275.7 $ 431.2 $ 1,024.5 Bar

Labor Relations Risk Management

Labor Relations Risk Management and Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Labor Relations, Risk Management and Fair Value Measurements [Abstract]
Labor Relations, Risk Management and Fair Value Measurements	(3) Labor Relations, Risk Management and Fair Value Measurements Employees As of December31, 2009, the Company had approximately 7,300employees, which included approximately 5,400hourly employees. As of December31, 2009, approximately 29% of the Companys hourly employees were represented by organized labor unions and generated 10% of its 2009 coal production. Relations with its employees and, where applicable, organized labor are important to the Companys success. U.S. Labor Relations.Hourly workers at the Companys Kayenta Mine in Arizona are represented by the United Mine Workers of America (UMWA) under the Western Surface Agreement, which is effective through September2, 2013. This agreement covers approximately 7% of the Companys U.S.subsidiaries hourly employees, who generated 4% of the Companys U.S.production during the year ended December31, 2009. Hourly workers at the Companys Willow Lake Mine in Illinois are represented by the International Brotherhood of Boilermakers under a labor agreement that expires April15, 2011. This agreement covers approximately 9% of the Companys U.S.subsidiaries hourly employees, who generated approximately 2% of the Companys U.S.production during the year ended December31, 2009. Australian Labor Relations.The Australian coal mining industry is unionized and the majority of workers employed at the Companys Australian Mining operations are members of trade unions. The Construction Forestry Mining and Energy Union represents the Companys Australian subsidiarys hourly production and engineering employees, including those employed through contract mining relationships. All the Australian subsidiarys mine sites have enterprise bargaining agreements. The current labor agreement at the Companys Metropolitan Mine expires in June 2010; renegotiations for a new agreement will commence in the first quarter of 2010. The labor agreement for the Wambo Mine coal handling plant was renewed in 2008 and expires in 2011. The labor agreement for the Wambo Underground Mine was renewed in early 2009 and will expire in 2012. For the Wilkie Creek Mine (expired October 2009)and the North Goonyella Mine (expired May 2009), the Company has reached agreements in principle, with the vote of the unions and employees expected to take place in late February 2010. Risk Management Non Coal Trading The Company is exposed to various types of risk in the normal course of business, including fluctuations in commodity prices, interest rates and foreign currency exchange rates. These risks are actively monitored in an effort to ensure compliance with the risk management policies of the Company. In most cases, commodity price risk (excluding coal trading activities) related to the sale of coal is mitigated through the use of long-term, fixed-price contracts rather than financial instruments. Interest Rate Swaps.The Company is exposed to interest rate risk on its fixed rate and variable rate long-term debt. The interest rate risk associated with the fair value of the Companys fixed rate borrowings is managed using fixed-to-floating interest rate swaps to effectively convert a portion of the under

Resource Management and Other C

Resource Management and Other Commercial Events
	12 Months Ended Dec. 31, 2009 USD / shares
Resource Management and Other Commercial Events [Abstract]
Resource Management and Other Commercial Events	(4) Resource Management and Other Commercial Events In 2008, the Company sold approximately 58million tons of non-strategic coal reserves and surface lands located in Kentucky for $21.5million cash proceeds and a note receivable of $54.9million, and recognized a gain of $54.0million. The note receivable was paid in two installments, $30.0million of which was received in December 2008 with the balance received in June 2009. The non-cash portion of this transaction was excluded from the investing section of the consolidated statement of cash flows until the cash was received. In 2007, the Company sold approximately 172million tons of coal reserves and surface lands to the Prairie State Energy Campus (Prairie State) equity partners. The Company recognized a gain totaling $26.4million and received $114.3million in cash proceeds associated with this transaction. See Note19 for additional information regarding Prairie State. In 2007, the Company exchanged oil and gas rights and assets in more than 860,000acres in the Illinois Basin, West Virginia, New Mexico and the Powder River Basin for coal reserves in West Virginia and Kentucky and $15.0million in cash proceeds. The Companys subsidiaries, including one subsidiary now owned by Patriot, received approximately 40million tons of coal reserves. Based on the fair value of the coal reserves received, the Company recognized a $50.5million gain on the exchange. The non-cash portion of this transaction was excluded from the investing section of the consolidated statement of cash flows.

Assets and Liabilities from Coa

Assets and Liabilities from Coal Trading Activities
	12 Months Ended Dec. 31, 2009 USD / shares
Assets and Liabilities from Coal Trading Activities [Abstract]
Assets and Liabilities from Coal Trading Activities	(5) Assets and Liabilities from Coal Trading Activities The fair value of assets and liabilities from coal trading activities is set forth below: December31, 2009 2008 Gross Basis Net Basis Gross Basis Net Basis (Dollars in millions) Assets from coal trading activities $ 949.8 $ 276.8 $ 1,969.7 $ 662.8 Liabilities from coal trading activities (779.3 ) (110.6 ) (1,548.5 ) (304.2 ) Subtotal 170.5 166.2 421.2 358.6 Net margin held (4.3 ) (62.6 ) Net value of coal trading positions $ 166.2 $ 166.2 $ 358.6 $ 358.6 As of December31, 2009, forward contracts made up 53% and 65% of the Companys trading assets and liabilities, respectively; financial swaps represent most of the remaining balances. The net fair value of coal trading positions designated as cash flow hedges of anticipated future sales was an asset of $93.0million as of December31, 2009 and an asset of $220.4million as of December31, 2008. The net value of trading positions, including those designated as hedges of future cash flows, represents the fair value of the trading portfolio. As of December31, 2009, the estimated future realization of the value of the Companys trading portfolio was as follows: Year of Percentage of Expiration Portfolio Total 2010 46 % 2011 51 % 2012 3 % 100 % At December31, 2009, 73% of the Companys credit exposure related to coal trading activities with investment grade counterparties and 27% with non-investment grade counterparties.

Accounts Receivable Securitizat

Accounts Receivable Securitization
	12 Months Ended Dec. 31, 2009 USD / shares
Accounts Receivable Securitization [Abstract]
Accounts Receivable Securitization	(6) Accounts Receivable Securitization The Company has an accounts receivable securitization program (securitization program) through its wholly-owned, bankruptcy-remote subsidiary (Seller). Under the program, the Company contributes a pool of eligible trade receivables to the Seller, which then sells, without recourse, to a multi-seller, asset-backed commercial paper conduit (Conduit). Purchases by the Conduit are financed with the sale of highly rated commercial paper. The Company utilizes proceeds from the sale of its accounts receivable as an alternative to other forms of debt, effectively reducing its overall borrowing costs. The funding cost of the securitization program was $4.0million, $10.8million and $11.2million for the years ended December31, 2009, 2008 and 2007, respectively and is included in interest expense in the consolidated statements of operations. The Company continues to service the sold trade receivables but does not receive a servicing fee. The securitization program was renewed in May 2009, and amended in December 2009 and January 2010, and extends to May 2012, while the letter of credit commitment that supports the commercial paper facility underlying the securitization program must be renewed annually. The securitization transactions have been recorded as sales, with those accounts receivable sold to the Conduit removed from the consolidated balance sheets. The amount of interest in accounts receivable sold to the Conduit was $254.6million as of December31, 2009 and $275.0million as of December31, 2008. The $20.4million decrease in the securitization program for the year ended December31, 2009 is reflected in cash flows from operating activities in the consolidated statements of cash flows. There was no change in the facility usage during the year ended December31, 2008. The Seller is a separate legal entity whose assets are available first and foremost to satisfy the claims of its creditors. Eligible receivables, as defined in the securitization agreement, consist of trade receivables from most of the Companys U.S.subsidiaries, and are reduced for certain items such as past due balances and concentration limits. Of the eligible pool of receivables contributed to the Seller, only a portion of the pool is sold to the Conduit. The Company continues to own $9.4million of receivables as of December31, 2009, which represents collateral supporting the securitization program. The Sellers interest in these receivables is subordinate to the Conduits interest in the event of default under the securitization agreement. If the Company defaulted under the securitization agreement or if its pool of eligible trade receivables decreased significantly, the Company could be prohibited from selling any additional receivables in the future under the securitization agreement. On January25, 2010, the receivables purchase agreement for the accounts receivable securitization program was amended and restated to add a second multi-seller asset-backed commercial paper conduit as a purchaser.

Earnings per Share

Earnings per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings per Share [Abstract]
Earnings per Share	(7) Earnings per Share As discussed in Note1, the Company uses the two-class method to compute basic and diluted EPS for all periods presented. The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS. Year Ended December31, 2009 2009 2008 2007 (In millions, except per share amounts) Basic earnings per share: Income from continuing operations, net of income taxes $ 457.9 $ 987.9 $ 441.6 Less: Net income (loss) attributable to noncontrolling interests 14.8 6.2 (2.3 ) Income from continuing operations attributable to common stockholders before allocation of earnings to participating securities 443.1 981.7 443.9 Less: Earnings allocated to participating securities (2.9 ) (5.5 ) (1.2 ) Income from continuing operations attributable to common stockholders 440.2 976.2 442.7 Income (loss) from discontinued operations, net of income taxes 5.1 (28.8 ) (180.1 ) Net income attributable to common stockholders $ 445.3 $ 947.4 $ 262.6 Diluted earnings per share: Income from continuing operations attributable to common stockholders before allocation of earnings to participating securities $ 443.1 $ 981.7 $ 443.9 Less: Earnings allocated to participating securities (2.9 ) (5.5 ) (1.2 ) Income from continuing operations attributable to common stockholders before the reallocation of the earnings of participating securities 440.2 976.2 442.7 Reallocation of the earnings of participating securities Income from continuing operations attributable to common stockholders 440.2 976.2 442.7 Income (loss) from discontinued operations, net of income taxes 5.1 (28.8 ) (180.1 ) Net income attributable to common stockholders $ 445.3 $ 947.4 $ 262.6 Weighted average shares outstanding basic 265.5 268.9 264.1 Dilutive impact of share-based compensation(1) 2.0 1.8 4.5 Weighted average shares outstanding diluted(2) 267.5 270.7 268.6 Basic earnings per share attributable to common stockholders: Income from continuing operations $ 1.66 $ 3.63 $ 1.67 Income (loss) from discontinued operations 0.02

Inventories

Inventories
	12 Months Ended Dec. 31, 2009 USD / shares
Inventories [Abstract]
Inventories	(8) Inventories Inventories consisted of the following: December31, 2009 2008 (Dollars in millions) Materials and supplies $ 106.5 $ 109.6 Raw coal 80.5 22.7 Saleable coal 138.1 143.9 Total $ 325.1 $ 276.2

Leases

Leases
	12 Months Ended Dec. 31, 2009 USD / shares
Leases [Abstract]
Leases	(9) Leases The Company leases equipment and facilities under various noncancelable lease agreements. Certain lease agreements require the maintenance of specified ratios and contain restrictive covenants which limit indebtedness, subsidiary dividends, investments, asset sales and other Company actions. Rental expense under operating leases was $127.8million, $121.3million and $104.6million for the years ended December31, 2009, 2008 and 2007, respectively. The gross value of property, plant, equipment and mine development assets under capital leases was $98.4million and $108.6million as of December31, 2009 and 2008, respectively, related primarily to the leasing of mining equipment. The accumulated depreciation for these items was $31.0million and $27.6million at December31, 2009 and 2008, respectively. The Company also leases coal reserves under agreements that require royalties to be paid as the coal is mined. Certain agreements also require minimum annual royalties to be paid regardless of the amount of coal mined during the year. Total royalty expense was $439.4million, $506.4million and $338.6million for the years ended December31, 2009, 2008 and 2007, respectively. A substantial amount of the coal mined by the Company is produced from mineral reserves leased from the owner. One of the major lessors is the U.S.government, from which the Company leases substantially all of the coal it mines in Wyoming and Colorado under terms set by Congress and administered by the U.S.Bureau of Land Management. These leases are generally for an initial term of ten years but may be extended by diligent development and mining of the reserves until all economically recoverable reserves are depleted. The Company has met the diligent development requirements for substantially all of these federal leases either directly through production or by including the lease as a part of a logical mining unit with other leases upon which development has occurred. Annual production on these federal leases must total at least 1.0% of the original amount of coal in the entire logical mining unit. In addition, royalties are payable monthly at a rate of 12.5% of the gross realization from the sale of the coal mined using surface mining methods and at a rate of 8.0% of the gross realization for coal produced using underground mining methods. The Company also leases coal reserves in Arizona from The Navajo Nation and the Hopi Tribe under leases that are administered by the U.S.Department of the Interior. These leases expire upon exhaustion of the leased reserves or upon the permanent ceasing of all mining activities on the related reserves as a whole. The royalty rates are also generally based upon a percentage of the gross realization from the sale of coal. These rates are subject to redetermination every ten years under the terms of the leases. The remainder of the leased coal is generally leased from state governments, land holding companies and various individuals. The duration of these leases varies greatly. Typically, the lease terms are automatically extended as long as active mining continues. Royalty payments are generally based upon a specif

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses
	12 Months Ended Dec. 31, 2009 USD / shares
Accounts Payable and Accrued Expenses [Abstract]
Accounts Payable and Accrued Expenses	(10) Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: December31, 2009 2008 (Dollars in millions) Trade accounts payable $ 387.6 $ 427.2 Accrued taxes other than income 172.3 170.7 Other accrued expenses 160.0 127.0 Accrued payroll and related benefits 135.0 120.1 Income taxes payable 80.7 142.7 Accrued health care 78.7 82.5 Accrued royalties 51.1 77.7 Accrued interest 31.7 31.1 Commodity and foreign currency hedge contracts 29.4 261.1 Workers compensation obligations 8.7 8.7 Accrued environmental 7.9 7.6 Other accrued benefits 4.0 4.1 Liabilities associated with discontinued operations 40.6 69.1 Current liabilities associated with assets held for sale 5.4 Total accounts payable and accrued expenses $ 1,187.7 $ 1,535.0

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	(11) Income Taxes Income from continuing operations before income taxes consisted of the following: Year Ended December31, 2009 2008 2007 (Dollars in millions) U.S. $ 281.4 $ 185.2 $ 296.1 Non U.S. 370.3 994.1 74.8 Total $ 651.7 $ 1,179.3 $ 370.9 Total income tax provision (benefit) consisted of the following: Year Ended December31, 2009 2008 2007 (Dollars in millions) Current: U.S. federal $ (0.7 ) $ $ Non U.S. 61.7 224.7 28.9 State 1.7 0.2 Total current 62.7 224.7 29.1 Deferred: U.S. federal 56.0 47.1 (139.3 ) Non U.S. 74.4 (81.7 ) 46.7 State 0.7 1.3 (7.2 ) Total deferred 131.1 (33.3 ) (99.8 ) Total provision (benefit) $ 193.8 $ 191.4 $ (70.7 ) The income tax rate differed from the U.S.federal statutory rate as follows: Year Ended December31, 2009 2008 2007 (Dollars in millions) Federal statutory rate $ 228.1 $ 412.7 $ 129.8 Excess depletion (44.0 ) (40.1 ) (55.3 ) Foreign earnings rate differential (83.6 ) (119.7 ) (13.5 ) Remeasurement of foreign deferred taxes 74.4 (65.2 ) 56.0 State income taxes, net of U.S. federal tax benefit 3.4 (1.6 ) 0.3 Tax credits (12.2 ) (12.6 ) (24.3 ) Changes in valuation allowance 17.3 (44.2 ) (175.7 ) Changes in tax reserves 5.9 34.4 4.1 Other, net 4.5 27.7 7.9 Total provision (benefit) $ 193.8 $ 191.4 $ (70.7 ) The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities consisted of the following: December31, 2009 2008 (Dollars in millions) Deferred tax assets: Tax credits and loss carryforwards $ 557.1 $ 785.9 Postretirement benefit obligations 474.7 403.9 Intangible tax asset and purchased contract rights 30.9 58.1 Accrued reclamation and mine c

Long-Term Debt

Long-Term Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Long-Term Debt [Abstract]
Long-Term Debt	(12) Long-Term Debt The Companys total indebtedness as of December31, 2009 and 2008 consisted of the following: December31, 2009 2008 (Dollars in millions) Term Loan under Senior Unsecured Credit Facility $ 490.3 $ 490.3 Convertible Junior Subordinated Debentures due December 2066 371.5 369.9 7.375%Senior Notes due November 2016 650.0 650.0 6.875%Senior Notes due March 2013 650.0 650.0 7.875%Senior Notes due November 2026 247.1 247.0 5.875%Senior Notes due March 2016 218.1 218.1 6.84% SeriesC Bonds due December 2016 33.0 43.0 6.34% SeriesB Bonds due December 2014 15.0 18.0 6.84% SeriesA Bonds due December 2014 10.0 Capital lease obligations 67.5 81.2 Fair value hedge adjustment 8.4 15.1 Other 1.4 1.0 Total $ 2,752.3 $ 2,793.6 Senior Unsecured Credit Facility The Senior Unsecured Credit Facility provides a $1.8billion Revolving Credit Facility (the Revolver) and a $950.0million Term Loan Facility (the Term Loan) and matures on September15, 2011. The Revolver is intended to accommodate working capital needs, letters of credit, and other general corporate purposes, and includes a $50.0million sub-facility available for same-day swingline loan borrowings. As of December31, 2009, the Company had $315.7million of letters of credit outstanding under the Revolver, with a remaining available borrowing capacity of approximately $1.5billion. Loans under the facility are available to the Company in U.S.dollars, with a sub-facility under the Revolver available in Australian dollars, pounds sterling and euros. Letters of credit under the Revolver are available to the Company in U.S.dollars with a sub-facility available in Australian dollars, pounds sterling and euros. The interest rate payable on the Revolver and the Term Loan is based on a pricing grid tied to the Companys leverage ratio, as defined in the Third Amended and Restated Credit Agreement. The interest rate payable on the Revolver and the Term Loan is currently LIBOR plus 0.75%, which was 1.0% at December31, 2009. Under the Senior Unsecured Credit Facility, the Company must comply with certain financial covenants on a quarterly basis including a minimum interest coverage ratio and a maximum leverage ratio. The financial covenants also place limitations on the Companys investments in joint ventures, unrestricted subsidiaries, indebtedness of non-loan parties and the imposition of liens on Company assets. Convertible Junior Subordinated Debentures As of December31, 2009, the Company had $732.5million aggregate principal outstanding of Convertible Junior Subordinated Debentures (the Debentures) that generally require interest to be paid semiannually at a rate of 4.75% per year. The Company may elect to, and to the extent that a mandatory trigger ev

Asset Retirement Obligations

Asset Retirement Obligations
	12 Months Ended Dec. 31, 2009 USD / shares
Asset Retirement Obligation [Abstract]
Asset Retirement Obligation	(13) Asset Retirement Obligations Reconciliations of the Companys ARO liability are as follows: December31, 2009 2008 (Dollars in millions) Balance at beginning of year $ 418.7 $ 360.7 Liabilities incurred or acquired 0.4 Liabilities settled or disposed (8.1 ) (6.1 ) Accretion expense 24.0 20.5 Revisions to estimates 17.1 43.6 Balance at end of year $ 452.1 $ 418.7 Balance at end of year active locations $ 422.0 $ 383.3 Balance at end of year closed or inactive locations $ 30.1 $ 35.4 The credit-adjusted, risk-free interest rates were 7.92% at December31, 2009 and 7.91% at December31, 2008 and 7.85% at January1, 2008. As of December31, 2009 and 2008, the Company had $772.3million and $740.6million, respectively, in surety bonds outstanding to secure reclamation obligations or activities. The amount of reclamation self-bonding in certain states in which the Company qualifies was $821.9million and $773.4million as of December31, 2009 and 2008, respectively. Additionally, the Company had $34.9million and $0.1million of letters of credit in support of reclamation obligations or activities as of December31, 2009 and 2008, respectively.

Pension and Savings Plans

Pension and Savings Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Pension and Savings Plans [Abstract]
Pension and Savings Plans	(14) Pension and Savings Plans One of the Companys subsidiaries, Peabody Investments Corp. (PIC), sponsors a defined benefit pension plan covering certain U.S.salaried employees and eligible hourly employees at certain PIC subsidiaries (the Peabody Plan). A PIC subsidiary also has a defined benefit pension plan covering eligible employees who are represented by the UMWA under the Western Surface Agreement (the Western Plan). PIC also sponsors an unfunded supplemental retirement plan to provide senior management with benefits in excess of limits under the federal tax law. These plans are collectively referred to as The Plans. Effective June1, 2008 the Peabody Plan was frozen in its entirety for both participation and benefit accrual purposes. The Company adopted an enhanced savings plan contribution structure in lieu of benefits formerly accrued under the Peabody Plan. Net periodic pension cost included the following components: Year Ended December31, 2009 2008 2007 (Dollars in millions) Service cost for benefits earned $ 1.4 $ 2.0 $ 12.7 Interest cost on projected benefit obligation 51.3 51.0 49.0 Expected return on plan assets (60.9 ) (60.6 ) (57.4 ) Amortization of prior service cost 1.4 1.3 0.4 Amortization of actuarial (gains) losses 1.9 (0.5 ) 15.3 Net periodic pension cost (4.9 ) (6.8 ) 20.0 Curtailment gain (0.6 ) (0.4 ) Total net periodic pension (benefit) cost $ (4.9 ) $ (7.4 ) $ 19.6 The following includes amounts recognized in accumulated other comprehensive loss: Year Ended December31, 2009 2008 2007 (Dollars in millions) Net actuarial (gain) loss arising during year $ 46.1 $ 199.2 $ (89.6 ) Prior service cost arising during year 7.9 Amortizations: Actuarial gain (loss) (1.9 ) 0.5 (15.3 ) Prior service cost (1.4 ) (0.7 ) Total recognized in other comprehensive loss 42.8 199.0 (97.0 ) Net periodic pension (benefit) costs (4.9 ) (6.8 ) 20.0 Total recognized in net periodic pension cost and other comprehensive loss $ 37.9 $ 192.2 $ (77.0 ) The Company amortizes actuarial gains and losses using a 5% corridor with a five-year amortization period. The estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic pension costs during the yea

Postretirement Health Care and

Postretirement Health Care and Life Insurance Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Postretirement Health Care and Life Insurance Benefits [Abstract]
Postretirement Health Care and Life Insurance Benefits	(15) Postretirement Health Care and Life Insurance Benefits The Company currently provides health care and life insurance benefits to qualifying salaried and hourly retirees and their dependents from defined benefit plans established by the Company. Plan coverage for health and life insurance benefits is provided to future hourly retirees in accordance with the applicable labor agreement. Net periodic postretirement benefit cost included the following components: Year Ended December31, 2009 2008 2007 (Dollars in millions) Service cost for benefits earned $ 10.5 $ 10.1 $ 9.4 Interest cost on accumulated postretirement benefit obligation 55.2 54.0 50.6 Amortization of prior service cost (credit) 1.5 0.4 (0.2 ) Amortization of actuarial losses 14.5 17.3 22.8 Net periodic postretirement benefit cost $ 81.7 $ 81.8 $ 82.6 Net periodic postretirement benefit cost related to the spin-off of Patriot was $46.6million for the year ended December31, 2007 and was included in Discontinued operations. The following includes amounts recognized in accumulated other comprehensive loss: Year Ended December31, 2009 2008 2007 (Dollars in millions) Net actuarial (gain) loss arising during year $ 165.2 $ (18.3 ) $ (24.5 ) Prior service cost arising during year (10.5 ) 13.8 Amortizations: Actuarial loss (14.5 ) (17.3 ) (22.8 ) Prior service (cost) credit (1.5 ) (0.4 ) 0.2 Total recognized in other comprehensive loss 138.7 (36.0 ) (33.3 ) Net periodic postretirement benefit cost 81.7 81.8 82.6 Total recognized in net periodic postretirement benefit costs and other comprehensive loss $ 220.4 $ 45.8 $ 49.3 The Company amortizes actuarial gains and losses using a 0% corridor with an amortization period that covers the average remaining service period of active employees (10.92years and 10.68years at January1, 2009 and 2008, respectively). The estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic postretirement benefit cost during the year ended December31, 2010 are $25.4million and $2.0million, respectively. The following table sets forth the plans funded status reconciled with the amounts shown in the consolidated balance sheets: December31, 2009 2008 (Dollars in millions) Change in benefit obligation: Accumulated postretirement

Stockholders Equity

Stockholders Equity
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' Equity [Abstract]
Stockholders' Equity	(16) Stockholders Equity Common Stock The Company has 800.0million authorized shares of $0.01par value common stock. Holders of common stock are entitled to one vote per share on all matters to be voted upon by the stockholders and vote together, as one class, with the holders of the Companys SeriesA Junior Participating Preferred Stock, if any such shares were issued and outstanding. The holders of common stock do not have cumulative voting rights in the election of directors. Holders of common stock are entitled to receive ratably dividends if, as and when dividends are declared from time to time by the Companys Board of Directors out of funds legally available for that purpose, after payment of dividends required to be paid on outstanding preferred stock or series common stock, as described below. Upon liquidation, dissolution or winding up, any business combination or a sale or disposition of all or substantially all of the assets, the holders of common stock are entitled to receive ratably the assets available for distribution to the stockholders after payment of liabilities and accrued but unpaid dividends and liquidation preferences on any outstanding preferred stock or series common stock. The common stock has no preemptive or conversion rights and is not subject to further calls or assessment by the Company. There are no redemption or sinking fund provisions applicable to the common stock. The following table summarizes common stock activity from December31, 2006 to December31, 2009: Shares Outstanding December31, 2006 263,846,839 Stock options exercised 5,222,074 Stock grants to employees 937,795 Employee stock purchases 185,646 Stock grants to non-employee directors 11,892 Shares relinquished (137,625 ) December31, 2007 270,066,621 Stock options exercised 1,388,174 Stock grants to employees 788,895 Employee stock purchases 119,737 Stock grants to non-employee directors 2,870 Shares repurchased (5,524,574 ) Shares relinquished (196,744 ) December31, 2008 266,644,979 Stock options exercised 463,490 Stock grants to employees 794,213 Employee stock purchases 374,548 Stock grants to non-employee directors 4,788 Shares relinquished (78,203 ) December31, 2009 268,203,815 Preferred Stock and SeriesCommon Stock The Board of Directors is authorized to issue up to 10.0million shares of preferred stock and up to 40.0million shares of series common stock. The Board of Directors can determine the terms and rights of each series, whether dividends (if any) will be cumulative or non-cumulative and the dividend rate of the series, redemption or sinking fund provisions, conversion terms, prices and rates, and amounts payable on shares of the series in the event of any voluntary or involuntary liquidation, dissolution or winding u

Share-Based Compensation

Share-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Share-Based Compensation [Abstract]
Share-Based Compensation	(17) Share-Based Compensation The Company recognizes share-based compensation expense in accordance with the fair value recognition provisions of Compensation topic of the ASC, which it adopted on January1, 2006. The Company has four equity incentive plans for employees and non-employee directors that in the aggregate allow for the issuance of share-based compensation in the form of stock appreciation rights, restricted stock, performance awards, incentive stock options, nonqualified stock options and deferred stock units. These plans made 47.4million shares of the Companys common stock available for grant, with 14.6million shares available for grant as of December31, 2009. The Company has two employee stock purchase plans that provide for the purchase of up to 6.0million shares of the Companys common stock, with 5.0million shares authorized for purchase by U.S.employees and 1.0million shares authorized for purchase by the Australian employees. Share-based compensation expense, which is recorded in Selling and administrative expenses in the consolidated statements of operations, was as follows (Dollars in millions): Year Ended Expense, Net of December 31, Total Expense Tax Benefit Tax Benefit 2009 $ 38.8 $ 15.0 $ 23.8 2008 34.9 13.5 21.4 2007 20.1 2.9 17.2 As of December31, 2009, the total unrecognized compensation cost related to nonvested awards was $28.0million, net of taxes, which is expected to be recognized over 3.2years with a weighted-average period of 0.7years. In 2009 and 2008, the Company granted deferred stock units to each of its non-employee directors. The fair value of these units are equal to the market price of the Companys common stock at the date of grant and generally vest after one year. In 2007, the Company granted stock options and restricted stock to each of its non-employee directors. Restricted Stock Awards Restricted stock awards are typically granted in January of each year and generally cliff vest after three years of service. The fair value of restricted stock is equal to the market price of the Companys common stock at the date of grant and is amortized to expense ratably over the vesting period. A summary of restricted stock award activity is as follows: Weighted Year Ended Average December31, Grant-Date 2009 Fair Value Nonvested at January1, 2009 1,788,333 $ 38.13 Granted 769,229 30.09 Vested (308,760 ) 36.43 Forfeited (103,937 ) 37.49 Nonvested at December31, 2009 2,144,865 $ 35.51 Stock Options Employee and director stock options granted since the Companys initial public offering (IPO) of common stock in May 2001 generally vest ratably over three years and expire after 10years from the date of the grant, subject to earlier terminatio

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)
	12 Months Ended Dec. 31, 2009 USD / shares
Accumulated Other Comprehensive Income (Loss) [Abstract]
Accumulated Other Comprehensive Income (Loss)	(18) Accumulated Other Comprehensive Income (Loss) The following table sets forth the after-tax components of comprehensive income (loss): Net Actuarial Loss Associated with Postretirement Prior Service Total Foreign Plans and Cost Associated Accumulated Currency Workers with Other Translation Compensation Postretirement Cash Flow Comprehensive Adjustment Obligations Plans Hedges Loss (Dollars in millions) December31, 2006 $ 3.1 $ (288.8 ) $ (7.0 ) $ 43.5 $ (249.2 ) Net increase in value of cash flow hedges 83.7 83.7 Reclassification from other comprehensive income to earnings: Continuing operations 24.3 (0.1 ) (61.8 ) (37.6 ) Discontinued operations 17.9 (6.1 ) 11.8 Current period change 64.2 (13.0 ) 51.2 Patriot spin-off 65.7 7.3 73.0 December31, 2007 3.1 (116.7 ) (18.9 ) 65.4 (67.1 ) Net decrease in value of cash flow hedges (194.5 ) (194.5 ) Reclassification from other comprehensive income to earnings 14.1 0.2 (23.4 ) (9.1 ) Current period change (117.8 ) (117.8 ) December31, 2008 3.1 (220.4 ) (18.7 ) (152.5 ) (388.5 ) Net increase in value of cash flow hedges 235.2 235.2 Reclassification from other comprehensive income to earnings 11.8 1.8 84.6 98.2 Current period change (128.4 ) (128.4 ) December31, 2009 $ 3.1 $ (337.0 ) $ (16.9 ) $ 167.3 $ (183.5 ) Comprehensive income (loss) differs from net income by the amount of unrealized gain or loss resulting from valuation changes of the Companys cash flow hedges (which include fuel and explo

Guarantees and Financial Instru

Guarantees and Financial Instruments With Off-Balance-Sheet Risk
	12 Months Ended Dec. 31, 2009 USD / shares
Guarantees and Financial Instruments With Off-Balance-Sheet Risk [Abstract]
Guarantees and Financial Instruments With Off-Balance-Sheet Risk	(19) Guarantees and Financial Instruments With Off-Balance-Sheet Risk In the normal course of business, the Company is a party to guarantees and financial instruments with off-balance-sheet risk, such as bank letters of credit, performance or surety bonds and other guarantees and indemnities, which are not reflected in the accompanying consolidated balance sheets. Such financial instruments are valued based on the amount of exposure under the instrument and the likelihood of required performance. In the Companys past experience, virtually no claims have been made against these financial instruments. Management does not expect any material losses to result from these guarantees or off-balance-sheet instruments. Letters of Credit and Bonding The Company has letters of credit, surety bonds and corporate guarantees (such as self bonds) in support of the Companys reclamation, coal lease obligations, and workers compensation as follows as of December31, 2009: Workers Reclamation Lease Compensation Obligations Obligations Obligations Other(1) Total (Dollars in millions) Self bonding $ 821.9 $ $ $ $ 821.9 Surety bonds 772.3 116.3 8.7 57.3 954.6 Letters of credit 34.9 43.0 237.8 315.7 $ 1,629.1 $ 116.3 $ 51.7 $ 295.1 $ 2,092.2 (1) Other includes the six letter of credit obligations described below and an additional $61.1million in letters of credit and surety bonds related to collateral for surety companies, road maintenance, performance guarantees and other operations. The Company owns a 37.5% interest in Dominion Terminal Associates, a partnership that operates a coal export terminal in Newport News, Virginia under a 30-year lease that permits the partnership to purchase the terminal at the end of the lease term for a nominal amount. The partners have severally (but not jointly) agreed to make payments under various agreements which in the aggregate provide the partnership with sufficient funds to pay rents and to cover the principal and interest payments on the floating-rate industrial revenue bonds issued by the Peninsula Ports Authority, and which are supported by letters of credit from a commercial bank. As of December31, 2009, the Companys maximum reimbursement obligation to the commercial bank was in turn supported by four letters of credit totaling $42.7million. The Company is party to an agreement with the PBGC and TXU Europe Limited, an affiliate of the Companys former parent corporation, under which the Company is required to make special contributions to two of the Companys defined benefit pension plans and to maintain a $37.0million letter of credit in favor of the PBGC. If the Company or the PBGC gives notice

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies [Abstract]
Commitments and Contingencies	(20) Commitments and Contingencies Commitments As of December31, 2009, purchase commitments for capital expenditures were $70.4million. Commitments for expenditures to be made under coal leases are reflected in Note9. The Company has also various long- and short-term take or pay arrangements associated with rail and port commitments for the delivery of coal, some of which extend to 2040, including amounts relating to export facilities currently under construction which are expected to be completed in 2010. As of December31, 2009, these commitments totaled $1,864.4million with $718.5million obligated within the next five years and $110.7million obligated within the next year. From time to time, the Company or its subsidiaries are involved in legal proceedings arising in the ordinary course of business or related to indemnities or historical operations. The Company believes it has recorded adequate reserves for these liabilities and that there is no individual case pending that is likely to have a material adverse effect on the Companys financial condition, results of operations or cash flows. The Company discusses its significant legal proceedings below. Litigation Relating to Continuing Operations Navajo Nation Litigation.On June18, 1999, the Navajo Nation served three of the Companys subsidiaries, including Peabody Western Coal Company (Peabody Western), with a complaint that had been filed in the U.S.District Court for the District of Columbia. The Navajo Nation has alleged 16 claims, including Civil Racketeer Influenced and Corrupt Organizations Act (RICO) violations and fraud. The complaint alleges that the defendants jointly participated in unlawful activity to obtain favorable coal lease amendments. The plaintiff is seeking various remedies including actual damages of at least $600million, which could be trebled under the RICO counts, punitive damages of at least $1billion, a determination that Peabody Westerns two coal leases have terminated due to Peabody Westerns breach of these leases and a reformation of these leases to adjust the royalty rate to 20%. Subsequently, the court allowed the Hopi Tribe to intervene in this lawsuit and the Hopi Tribe is also seeking unspecified actual damages, punitive damages and reformation of its coal lease. One of the Companys subsidiaries named as a defendant is now a subsidiary of Patriot. However, the Company is responsible for this litigation under the Separation Agreement entered into with Patriot in connection with the spin-off. On April6, 2009, the U.S.Supreme Court ruled against the Navajo Nation in a related case against the U.S.government, and remanded that case to the lower court to dismiss the complaint. The U.S.Supreme Court said that none of the sources relied on by the Navajo Nation provided a basis for its breach-of-trust lawsuit against the U.S.government, which undermines some of the claims the Navajo Nation asserts in its litigation against the Company. The outcome of this litigation is subject to numerous uncertainties. Based on the Companys evaluation of the issues and their potential impact, the amount of any future loss cannot be reaso

Summary Quarterly Financial Inf

Summary Quarterly Financial Information (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Summary Quarterly Financial Information (Unaudited) [Abstract]
Summary Quarterly Financial Information (Unaudited)	(21) Summary Quarterly Financial Information (Unaudited) A summary of the unaudited quarterly results of operations for the years ended December31, 2009 and 2008 is presented below. In the third quarter of 2009, the Companys Chain Valley Mine in Australia was held for sale and subsequently sold in the fourth quarter of 2009. See Note2 for additional information regarding the sale. All periods presented below reflect the Chain Valley Mine as a discontinued operation. Year Ended December31, 2009 First Quarter Second Quarter Third Quarter Fourth Quarter (In millions except per share data) Revenues $ 1,453.0 $ 1,338.2 $ 1,667.0 $ 1,554.2 Operating profit 219.7 215.4 220.3 189.4 Income from continuing operations, net of income taxes 141.2 90.0 113.2 113.5 Net income 175.2 82.0 110.8 95.0 Net income attributable to common stockholders 170.0 79.2 106.8 92.2 Basic earnings per share continuing operations(1) 0.51 0.33 0.41 0.41 Diluted earnings per share continuing operations(1) 0.50 0.32 0.41 0.41 Weighted average shares used in calculating basic earnings per share 265.3 265.4 265.7 265.8 Weighted average shares used in calculating diluted earnings per share 267.3 267.1 267.3 267.7 (1) Earnings per share for the quarters may not add to the amounts for the year as each period is computed on a discrete basis. Operating profit in the second, third and fourth quarters reflect lower contract pricing in Australia that began in the second quarter. Operating profit in the fourth quarter included an impairment loss of $34.7million (see Investments in Joint Ventures section of Note1 for additional information). Income from continuing operations, net of income taxes in the first quarter included a benefit of $0.9million from the remeasurement of non-U.S.income tax accounts while the second, third and fourth quarters included non-cash tax expense of $47.7million, $22.3million, and $5.3million, respectively. Net income in the first quarter included a gain of approximately $35million (net of income taxes) related to a coal excise tax refund (see Note2 for additional information). Year Ended December31, 2008 First Quarter Second Quarter Third Quarter Fourth Quarter (In millions except per share data) Revenues $ 1,259.9 $ 1,517.6 $ 1,889.6 $ 1,893.9 Operating profit 185.0 346.0 496.6 368.7 Income from continuing operations, net of income taxes 79.5 244.9 383.2 280.3 Net income 57.9 235.8 371.8 293.6 Net income attributable to com

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Information [Abstract]
Segment Information	(22) Segment Information The Company reports its operations primarily through the following reportable operating segments: Western U.S.Mining, Midwestern U.S.Mining, Australian Mining, Trading and Brokerage and Corporate and Other. Western U.S.Mining operations reflect the aggregation of the Powder River Basin, Southwest and Colorado mining operations, and Midwestern U.S.Mining operations reflects the Companys Illinois and Indiana mining operations. In 2008, the Company renamed its Eastern U.S.Mining segment to Midwestern U.S.Mining segment to better reflect the geography of the continuing operations of that region. The principal business of the Western U.S.Mining, Midwestern U.S.Mining and Australian Mining segments is the mining, preparation and sale of thermal coal, sold primarily to electric utilities, and metallurgical coal, sold to steel and coke producers. For the year ended December31, 2009, 81% of the Companys total sales (by volume) were to U.S.electricity generators, 17% were to customers outside the U.S.and 2% were to the U.S.industrial sector. Western U.S.Mining operations are characterized by predominantly surface mining extraction processes, lower sulfur content and Btu of coal and higher customer transportation costs (due to longer shipping distances). Conversely, Midwestern U.S.Mining operations are characterized by a mix of surface and underground mining extraction processes, higher sulfur content and Btu of coal and lower customer transportation costs (due to shorter shipping distances). Geologically, Western operations mine bituminous and subbituminous coal deposits, and Midwestern operations mine bituminous coal deposits. Australian Mining operations are characterized by both surface and underground extraction processes, mining various qualities of low-sulfur, high Btu coal (metallurgical coal) as well as thermal coal primarily sold to an international customer base with a small portion sold to Australian steel producers and power generators. The Trading and Brokerage segments principal business is the brokering of coal sales of other coal producers both as principal and agent, and the trading of coal, freight and freight-related contracts. Corporate and Other includes selling and administrative expenses, net gains on property disposals, costs associated with past mining obligations, joint venture earnings (losses) and revenues and expenses related to the Companys other commercial activities such as generation development, Btu Conversion, clean coal technologies and resource management. The Companys chief operating decision maker uses Adjusted EBITDA as the primary measure of segment profit and loss. The Company defines Adjusted EBITDA as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expense and depreciation, depletion and amortization. Operating segment results for the year ended December31, 2009 were as follows: Western Midwestern Australian Trading and Corporate U.S. Mining U.S. Mining Mining Brokerag

Supplemental Guarantor Non-Guar

Supplemental Guarantor Non-Guarantor Financial Information
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Guarantor Non-Guarantor Financial Information [Abstract]
Supplemental Guarantor/Non-Guarantor Financial Information	(23) Supplemental Guarantor/Non-Guarantor Financial Information In accordance with the indentures governing the 6.875%Senior Notes due March 2013, the 5.875%Senior Notes due March 2016, the 7.375%Senior Notes due November 2016 and the 7.875%Senior Notes due November 2026, certain wholly-owned U.S.subsidiaries of the Company have fully and unconditionally guaranteed these Senior Notes, on a joint and several basis. Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management believes that such information is not material to the Senior Note holders. The following historical financial statement information is provided for the Guarantor/Non-Guarantor Subsidiaries. PEABODY ENERGY CORPORATION SUPPLEMENTAL CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December31, 2009 Parent Guarantor Non-Guarantor Company Subsidiaries Subsidiaries Eliminations Consolidated (Dollars in millions) Total revenues $ $ 4,024.0 $ 2,312.5 $ (324.1 ) $ 6,012.4 Costs and expenses Operating costs and expenses 104.4 2,958.5 1,728.9 (324.1 ) 4,467.7 Depreciation, depletion and amortization 287.6 117.6 405.2 Asset retirement obligation expense 33.3 6.8 40.1 Selling and administrative expenses 29.3 168.9 10.5 208.7 Other operating (income) loss: Net gain on disposal or exchange of assets (17.1 ) (6.1 ) (23.2 ) (Income) loss from equity affiliates (620.9 ) 6.3 62.8 620.9 69.1 Interest expense 198.4 52.6 16.2 (66.0 ) 201.2 Interest income (15.3 ) (28.9 ) (29.9 ) 66.0 (8.1 ) Income from continuing operations before income taxes 304.1 562.8 405.7 (620.9 ) 651.7 Income tax provision (benefit) (122.3 ) 184.1 132.0 193.8 Income from continuing operations, net of income taxes 426.4 378.7 273.7 (620.9 ) 457.9 Income (loss) from discontinued operations, net of income taxes 21.8 (2.7 ) (14.0 ) 5.1 Net income 448.2 376.0 259.7 (620.9 ) 463.0 Less: Net income attributable to noncontrolling interests 14.8

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 PEABODY ENERGY CORPORATION SCHEDULEII VALUATION AND QUALIFYING ACCOUNTS Balance at Charged to Balance Beginning Costs and at End Description of Period Expenses Deductions(1) Other of Period (Dollars in millions) Year ended December31, 2009 Reserves deducted from asset accounts: Advance royalty recoupment reserve $ 17.2 $ 1.6 $ (2.2 ) $ 0.6 (2) $ 17.2 Reserve for materials and supplies 4.9 3.6 (2.3 ) 6.2 Allowance for doubtful accounts 24.8 7.7 (3.6 ) (10.6 )(3) 18.3 Year ended December31, 2008 Reserves deducted from asset accounts: Advance royalty recoupment reserve $ 13.6 $ 4.0 $ (3.0 ) $ 2.6 (2) $ 17.2 Reserve for materials and supplies 4.3 1.7 (1.1 ) 4.9 Allowance for doubtful accounts 11.9 13.9 (1.0 ) 24.8 Year ended December31, 2007 Reserves deducted from asset accounts: Advance royalty recoupment reserve $ 12.0 $ $ $ 1.6 (2) $ 13.6 Reserve for materials and supplies 3.2 0.5 (0.7 ) 1.3 (2) 4.3 Allowance for doubtful accounts 10.9 1.1 (0.1 ) 11.9 (1) Reserves utilized, unless otherwise indicated. (2) Balances transferred (to) from other accounts or reserves recorded as part of a property transaction or acquisition. (3) Reflects subsequent recovery of amounts previously reserved.