Supplemental Guarantor and Non-Guarantor Financial Information | (21) Guarantor and Non-Guarantor Information The Company has issued senior notes and convertible senior notes that are fully and unconditionally guaranteed, jointly and severally, on a senior or subordinated, secured or unsecured basis by certain of the Company’s 100% owned subsidiaries (the “New Notes Guarantor Subsidiaries”). Presented below are Condensed Consolidating Financial Statements as of June 30, 2015 and December 31, 2014 and for the three months ended June 30, 2015 and 2014 , respectively, based on the guarantor structure of the Company’s Senior Notes and Convertible Notes. The tables below refer to the Company as issuer of the Senior Notes. “Non-Guarantor Subsidiaries” refers, for the tables below, to ANR Receivables Funding, LLC, Gray Hawk Insurance Company, Shannon-Pocahontas Mining Company, Alpha Coal Sales International Limited, Alpha Natural Resources Singapore Private Limited, ANR Second Receivables Funding, LLC, Alpha Coal India Private Limited, Alpha Sub Eight, LLC, Alpha Sub Nine, LLC, Alpha Sub Ten, Inc., and Alpha Sub Eleven, Inc. which were not guarantors of the Senior Notes or the Convertible Notes. Alpha Natural Resources, Inc. and Subsidiaries Supplemental Condensed Consolidating Balance Sheet June 30, 2015 Parent Non-Guarantor Eliminations Total Assets Current assets: Cash and cash equivalents $ 462 $ 696,394 $ 1,380 $ — $ 698,236 Trade accounts receivable, net — 16,317 237,971 — 254,288 Inventories, net — 237,466 — — 237,466 Short-term investments — 416,722 — — 416,722 Prepaid expenses and other current assets — 147,271 2,538 — 149,809 Total current assets 462 1,514,170 241,889 — 1,756,521 Property, equipment and mine development costs, net — 1,262,460 — — 1,262,460 Owned and leased mineral rights and land, net — 6,608,042 — — 6,608,042 Other acquired intangibles, net — 73,362 — — 73,362 Other non-current assets 7,579,839 7,839,815 10,322 (15,159,678 ) 270,298 Total assets $ 7,580,301 $ 17,297,849 $ 252,211 $ (15,159,678 ) $ 9,970,683 Liabilities and Stockholders’ Equity Current liabilities: Current portion of long-term debt $ 3,571,019 $ 122,826 $ (3,454 ) $ — $ 3,690,391 Trade accounts payable — 184,522 — — 184,522 Accrued expenses and other current liabilities — 532,872 231 — 533,103 Total current liabilities 3,571,019 840,220 (3,223 ) — 4,408,016 Long-term debt — 34,439 — — 34,439 Pension and postretirement medical benefit obligations — 1,166,958 — — 1,166,958 Asset retirement obligations — 582,608 — — 582,608 Deferred income taxes — 729,034 — — 729,034 Other non-current liabilities 1,369,543 1,546,205 233,223 (2,739,082 ) 409,889 Total liabilities 4,940,562 4,899,464 230,000 (2,739,082 ) 7,330,944 Stockholders’ Equity Total stockholders’ equity 2,639,739 12,398,385 22,211 (12,420,596 ) 2,639,739 Total liabilities and stockholders’ equity $ 7,580,301 $ 17,297,849 $ 252,211 $ (15,159,678 ) $ 9,970,683 Alpha Natural Resources, Inc. and Subsidiaries Supplemental Condensed Consolidating Balance Sheet December 31, 2014 Parent Non-Guarantor Eliminations Total Assets Current assets: Cash and cash equivalents $ 830 $ 738,700 $ 1,656 $ — $ 741,186 Trade accounts receivable, net — 43,784 270,231 — 314,015 Inventories, net — 237,945 — — 237,945 Short-term investments — 405,169 — — 405,169 Prepaid expenses and other current assets — 175,221 2,778 — 177,999 Total current assets 830 1,600,819 274,665 — 1,876,314 Property, equipment and mine development costs, net — 1,425,667 — — 1,425,667 Owned and leased mineral rights and land, net — 6,916,307 — — 6,916,307 Other acquired intangibles, net — 97,169 — — 97,169 Other non-current assets 8,050,042 8,363,729 10,321 (16,100,083 ) 324,009 Total assets $ 8,050,872 $ 18,403,691 $ 284,986 $ (16,100,083 ) $ 10,639,466 Liabilities and Stockholders’ Equity Current liabilities: Current portion of long-term debt $ 49,752 $ 128,499 $ — $ — $ 178,251 Trade accounts payable — 215,972 126 — 216,098 Accrued expenses and other current liabilities 3,130 611,833 237 — 615,200 Total current liabilities 52,882 956,304 363 — 1,009,549 Long-term debt 3,585,775 41,070 (4,008 ) — 3,622,837 Pension and postretirement medical benefit obligations — 1,236,986 — — 1,236,986 Asset retirement obligations — 538,008 — — 538,008 Deferred income taxes — 773,466 — — 773,466 Other non-current liabilities 1,425,415 1,630,041 267,195 (2,850,831 ) 471,820 Total liabilities 5,064,072 5,175,875 263,550 (2,850,831 ) 7,652,666 Stockholders’ Equity Total stockholders’ equity 2,986,800 13,227,816 21,436 (13,249,252 ) 2,986,800 Total liabilities and stockholders’ equity $ 8,050,872 $ 18,403,691 $ 284,986 $ (16,100,083 ) $ 10,639,466 Alpha Natural Resources, Inc. and Subsidiaries Supplemental Condensed Consolidating Statement of Operations Three Months Ended June 30, 2015 Parent Guarantor Non-Guarantor Eliminations Total Revenues: Coal revenues $ — $ 674,068 $ — $ — $ 674,068 Freight and handling revenues — 79,739 — — 79,739 Other revenues — 9,643 1,617 — 11,260 Total revenues — 763,450 1,617 — 765,067 Cost and expenses: Cost of coal sales (exclusive of items shown separately below) — 713,111 — — 713,111 Freight and handling costs — 79,739 — — 79,739 Other expenses — 6,418 (42 ) — 6,376 Depreciation, depletion, and amortization — 170,700 — — 170,700 Amortization of acquired intangibles, net — 7,472 — — 7,472 Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) — 26,377 976 — 27,353 Asset impairment and restructuring — 238,606 — — 238,606 Total costs and expenses — 1,242,423 934 — 1,243,357 Income (loss) from operations — (478,973 ) 683 — (478,290 ) Other income (expense): Interest expense (71,850 ) 633 (1,169 ) — (72,386 ) Interest income — 618 1 — 619 Miscellaneous income, net — 2,325 7 — 2,332 Total other income (expense), net (71,850 ) 3,576 (1,161 ) — (69,435 ) Loss before income taxes and equity in earnings of investments in Issuer and Guarantor Subsidiaries (71,850 ) (475,397 ) (478 ) — (547,725 ) Income tax benefit 28,022 51,327 186 — 79,535 Equity in earnings of investments in Issuer and Guarantor Subsidiaries (424,362 ) — — 424,362 — Net income (loss) $ (468,190 ) $ (424,070 ) $ (292 ) $ 424,362 $ (468,190 ) Alpha Natural Resources, Inc. and Subsidiaries Supplemental Condensed Consolidating Statement of Operations Three Months Ended June 30, 2014 Parent Guarantor Non-Guarantor Eliminations Total Revenues: Coal revenues $ — $ 919,253 $ — $ — $ 919,253 Freight and handling revenues — 116,338 — — 116,338 Other revenues — 18,031 476 — 18,507 Total revenues — 1,053,622 476 — 1,054,098 Cost and expenses: Cost of coal sales (exclusive of items shown separately below) — 827,948 — — 827,948 Freight and handling costs — 116,338 — — 116,338 Other expenses (3,036 ) 9,727 — — 6,691 Depreciation, depletion, and amortization — 191,072 — — 191,072 Amortization of acquired intangibles, net — 9,464 — — 9,464 Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) — 43,647 110 — 43,757 Asset impairment and restructuring — 2,590 — — 2,590 Goodwill impairment — 308,651 — — 308,651 Total costs and expenses (3,036 ) 1,509,437 110 — 1,506,511 Income (loss) from operations 3,036 (455,815 ) 366 — (452,413 ) Other income (expense): Interest expense (71,475 ) 463 — — (71,012 ) Interest income — 535 5 — 540 Loss on early extinguishment of debt (176 ) (42 ) — — (218 ) Miscellaneous income (expense), net — 1,057 (99 ) — 958 Total other income (expense), net (71,651 ) 2,013 (94 ) — (69,732 ) Income (loss) before income taxes and equity in earnings of investments in Issuer and Guarantor Subsidiaries (68,615 ) (453,802 ) 272 — (522,145 ) Income tax benefit (expense) 26,760 (17,136 ) (106 ) — 9,518 Equity in earnings of investments in Issuer and Guarantor Subsidiaries (470,772 ) — — 470,772 — Net income (loss) $ (512,627 ) $ (470,938 ) $ 166 $ 470,772 $ (512,627 ) Alpha Natural Resources, Inc. and Subsidiaries Supplemental Condensed Consolidating Statement of Operations Six Months Ended June 30, 2015 Parent Guarantor Non-Guarantor Eliminations Total Revenues: Coal revenues $ — $ 1,400,135 $ — $ — $ 1,400,135 Freight and handling revenues — 179,898 — — 179,898 Other revenues — 23,558 3,465 — 27,023 Total revenues — 1,603,591 3,465 — 1,607,056 Cost and expenses: Cost of coal sales (exclusive of items shown separately below) — 1,464,435 — — 1,464,435 Freight and handling costs — 179,898 — — 179,898 Other expenses — 11,361 — — 11,361 Depreciation, depletion, and amortization — 329,131 — — 329,131 Amortization of acquired intangibles, net — 19,917 — — 19,917 Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) — 50,388 1,927 — 52,315 Asset impairment and restructuring — 242,726 — — 242,726 Total costs and expenses — 2,297,856 1,927 — 2,299,783 Income (loss) from operations — (694,265 ) 1,538 — (692,727 ) Other income (expense): Interest expense (148,160 ) 1,058 (1,990 ) — (149,092 ) Interest income — 1,274 5 — 1,279 Gain on early extinguishment of debt 364,153 — — — 364,153 Miscellaneous income (expense), net — 1,890 (28 ) — 1,862 Total other income (expense), net 215,993 4,222 (2,013 ) — 218,202 Income (loss) before income taxes and equity in earnings of investments in Issuer and Guarantor Subsidiaries 215,993 (690,043 ) (475 ) — (474,525 ) Income tax (expense) benefit (84,238 ) 158,599 185 — 74,546 Equity in earnings of investments in Issuer and Guarantor Subsidiaries (531,734 ) — — 531,734 — Net (loss) income $ (399,979 ) $ (531,444 ) $ (290 ) $ 531,734 $ (399,979 ) Alpha Natural Resources, Inc. and Subsidiaries Supplemental Condensed Consolidating Statement of Operations Six Months Ended June 30, 2014 Parent Guarantor Non-Guarantor Eliminations Total Revenues: Coal revenues $ — $ 1,872,073 $ — $ — $ 1,872,073 Freight and handling revenues — 250,540 — — 250,540 Other revenues — 41,675 1,583 — 43,258 Total revenues — 2,164,288 1,583 — 2,165,871 Cost and expenses: Cost of coal sales (exclusive of items shown separately below) — 1,724,532 — — 1,724,532 Freight and handling costs — 250,540 — — 250,540 Other expenses (3,036 ) 24,921 — — 21,885 Depreciation, depletion, and amortization — 391,367 — — 391,367 Amortization of acquired intangibles, net — 18,743 — — 18,743 Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) — 84,575 379 — 84,954 Asset impairment and restructuring — 12,089 — — 12,089 Goodwill impairment — 308,651 — — 308,651 Total costs and expenses (3,036 ) 2,815,418 379 — 2,812,761 Income (loss) from operations 3,036 (651,130 ) 1,204 — (646,890 ) Other income (expense): Interest expense (133,172 ) (2,802 ) — — (135,974 ) Interest income — 1,150 6 — 1,156 Loss on early extinguishment of debt (1,630 ) (392 ) — — (2,022 ) Gain on sale of equity method investment — 250,331 — — 250,331 Miscellaneous income (expense), net — 2,208 (94 ) — 2,114 Total other (expense) income, net (134,802 ) 250,495 (88 ) — 115,605 (Loss) income before income taxes and equity in earnings of investments in Issuer and Guarantor Subsidiaries (131,766 ) (400,635 ) 1,116 — (531,285 ) Income tax benefit (expense) 51,389 (87,994 ) (435 ) — (37,040 ) Equity in earnings of investments in Issuer and Guarantor Subsidiaries (487,948 ) — — 487,948 — Net (loss) income $ (568,325 ) $ (488,629 ) $ 681 $ 487,948 $ (568,325 ) Alpha Natural Resources, Inc. and Subsidiaries Supplemental Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended June 30, 2015 Parent Guarantor Non-Guarantor Eliminations Total Net income (loss) $ (468,190 ) $ (424,070 ) $ (292 ) $ 424,362 $ (468,190 ) Total comprehensive income (loss) $ (421,527 ) $ (377,407 ) $ (292 ) $ 377,699 $ (421,527 ) Alpha Natural Resources, Inc. and Subsidiaries Supplemental Condensed Consolidating Statements of Comprehensive Income (Loss) Three Months Ended June 30, 2014 Parent Guarantor Non-Guarantor Eliminations Total Net income (loss) $ (512,627 ) $ (470,938 ) $ 166 $ 470,772 $ (512,627 ) Total comprehensive income (loss) $ (494,136 ) $ (452,447 ) $ 166 $ 452,281 $ (494,136 ) Alpha Natural Resources, Inc. and Subsidiaries Supplemental Condensed Consolidating Statements of Comprehensive Income (Loss) Six Months Ended June 30, 2015 Parent Guarantor Non-Guarantor Eliminations Total Net income (loss) $ (399,979 ) $ (531,444 ) $ (290 ) $ 531,734 $ (399,979 ) Total comprehensive income (loss) $ (349,312 ) $ (480,777 ) $ (290 ) $ 481,067 $ (349,312 ) Alpha Natural Resources, Inc. and Subsidiaries Supplemental Condensed Consolidating Statements of Comprehensive Income (Loss) Six Months Ended June 30, 2014 Parent Guarantor Non-Guarantor Eliminations Total Net income (loss) $ (568,325 ) $ (488,629 ) $ 681 $ 487,948 $ (568,325 ) Total comprehensive income (loss) $ (520,383 ) $ (440,687 ) $ 681 $ 440,006 $ (520,383 ) Alpha Natural Resources, Inc. and Subsidiaries Supplemental Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2015 Parent Non-Guarantor Total Net cash used in operating activities $ — $ (276,137 ) $ (156 ) $ (276,293 ) Investing activities: Capital expenditures — (66,451 ) — (66,451 ) Purchases of investments — (379,687 ) — (379,687 ) Sales of investments — 413,404 — 413,404 Proceeds from sale of property, plant and equipment — 7,986 — 7,986 Net cash used in investing activities — (24,748 ) — (24,748 ) Financing activities: Principal repayments of long-term debt (379,509 ) — — (379,509 ) Principal repayments of capital lease obligations — (12,992 ) — (12,992 ) Proceeds from borrowings on long-term debt 658,646 — — 658,646 Debt issuance and modification costs (6,815 ) — — (6,815 ) Common stock repurchases (420 ) — — (420 ) Other — (819 ) — (819 ) Transactions with affiliates (272,270 ) 272,390 (120 ) — Net cash provided by (used in) financing activities (368 ) 258,579 (120 ) 258,091 Net increase (decrease) in cash and cash equivalents (368 ) (42,306 ) (276 ) (42,950 ) Cash and cash equivalents at beginning of period 830 738,700 1,656 741,186 Cash and cash equivalents at end of period $ 462 $ 696,394 $ 1,380 $ 698,236 Alpha Natural Resources, Inc. and Subsidiaries Supplemental Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2014 Parent Non-Guarantor Total Net cash provided by (used in) operating activities $ 102 $ (271,061 ) $ (50 ) $ (271,009 ) Investing activities: Capital expenditures — (82,833 ) — (82,833 ) Purchases of investments — (333,497 ) — (333,497 ) Sales of investments — 298,180 — 298,180 Proceeds from exchange of equity method investment, net — 96,732 — 96,732 Proceeds from sale of property, plant and equipment — 3,271 — 3,271 Net cash used in investing activities — (18,147 ) — (18,147 ) Financing activities: Principal repayments of long-term debt (24,510 ) (9,921 ) — (34,431 ) Principal repayments of capital lease obligations — (8,574 ) — (8,574 ) Proceeds from borrowings on long-term debt 500,000 — — 500,000 Debt issuance and modification costs (16,494 ) — — (16,494 ) Common stock repurchases (1,162 ) — — (1,162 ) Other — (1,326 ) — (1,326 ) Transactions with affiliates (457,936 ) 457,914 22 — Net cash (used in) provided by financing activities (102 ) 438,093 22 438,013 Net increase (decrease) in cash and cash equivalents — 148,885 (28 ) 148,857 Cash and cash equivalents at beginning of period 467 617,952 1,225 619,644 Cash and cash equivalents at end of period $ 467 $ 766,837 $ 1,197 $ 768,501 |