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 | |||
Produced coal revenue | $2,318,489 | $2,559,929 | $2,054,413 |
Freight and handling revenue | 218,203 | 306,397 | 167,641 |
Purchased coal revenue | 62,721 | 30,684 | 108,191 |
Other revenue | 91,746 | 92,779 | 83,278 |
Total revenues | 2,691,159 | 2,989,789 | 2,413,523 |
Costs and Expenses | |||
Cost of produced coal revenue | 1,850,058 | 1,910,953 | 1,641,774 |
Freight and handling costs | 218,203 | 306,397 | 167,641 |
Cost of purchased coal revenue | 57,108 | 28,517 | 95,241 |
Depreciation, depletion and amortization, applicable to: | |||
Depreciation, depletion and amortization, applicable to: Cost of produced coal revenue | 268,317 | 253,737 | 242,755 |
Depreciation, depletion and amortization, applicable to: Selling, general and administrative | 1,860 | 3,590 | 3,280 |
Selling, general and administrative | 97,381 | 77,015 | 75,845 |
Other expense | 8,705 | 3,207 | 7,308 |
Litigation charge | 0 | 250,061 | 0 |
Loss on financing transactions | 189 | 5,006 | 0 |
(Gain) loss on derivative instruments | (37,638) | 22,552 | 0 |
Total costs and expenses | 2,464,183 | 2,861,035 | 2,233,844 |
Income before interest and taxes | 226,976 | 128,754 | 179,679 |
Interest income | 12,583 | 23,576 | 23,969 |
Interest expense | (102,294) | (96,866) | (74,145) |
Loss on short-term investment | 0 | (6,537) | 0 |
Income before taxes | 137,265 | 48,927 | 129,503 |
Income tax expense | (32,832) | (1,098) | (35,405) |
Net income | $104,433 | $47,829 | $94,098 |
Net income per share | |||
Net income per share - Basic | 1.23 | 0.58 | 1.17 |
Net income per share - Diluted | 1.22 | 0.58 | 1.17 |
Shares used to calculate income per share | |||
Shares used to calculate Net income per share - Basic | 84,992 | 81,816 | 80,123 |
Shares used to calculate Net income per share - Diluted | 85,598 | 82,895 | 80,654 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Thousands | Dec. 31, 2009
| Dec. 31, 2008
|
Current Assets | ||
Cash and cash equivalents | $665,762 | $606,997 |
Short-term investment | 10,864 | 39,383 |
Trade and other accounts receivable, less allowance for doubtful accounts | 121,577 | 233,266 |
Inventories | 269,826 | 233,168 |
Income taxes receivable | 10,546 | 6,621 |
Other current assets | 235,990 | 116,061 |
Total current assets | 1,314,565 | 1,235,496 |
Property, plant and equipment, net | 2,344,770 | 2,297,696 |
Other Noncurrent Assets | ||
Other noncurrent assets | 140,336 | 139,186 |
Total assets | 3,799,671 | 3,672,378 |
Current Liabilities | ||
Accounts payable, principally trade and bank overdrafts | 164,979 | 244,201 |
Short-term debt | 23,531 | 1,976 |
Payroll and employee benefits | 63,590 | 56,959 |
Other current liabilities | 192,835 | 201,017 |
Total current liabilities | 444,935 | 504,153 |
Noncurrent Liabilities | ||
Long-term debt | 1,295,555 | 1,310,181 |
Deferred income taxes | 209,230 | 177,294 |
Pension obligation | 55,610 | 63,304 |
Other noncurrent liabilities | 538,058 | 490,834 |
Total noncurrent liabilities | 2,098,453 | 2,041,613 |
Total liabilities | 2,543,388 | 2,545,766 |
Capital Stock | ||
Preferred stock - value | 0 | 0 |
Commom stock - value | 53,868 | 53,378 |
Additional capital | 568,995 | 542,519 |
Retained earnings | 716,089 | 632,077 |
Accumulated other comprehensive loss | (82,669) | (101,362) |
Total shareholders' equity | 1,256,283 | 1,126,612 |
Total liabilities and shareholders' equity | $3,799,671 | $3,672,378 |
PARANTHETICAL DATA TO THE CONSO
PARANTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Thousands, except Share data | Dec. 31, 2009
| Dec. 31, 2008
|
Current Assets | ||
Allowance for doubtful accounts | $1,303 | $873 |
Capital Stock | ||
Preferred stock - autorized shares without par value | 20,000,000 | 20,000,000 |
Preferred stock - none issued | 0 | 0 |
Common stock - autorized | 150,000,000 | 150,000,000 |
Commom stock - par value | 0.625 | 0.625 |
Common stock - shares issued | 85,544,413 | 85,447,970 |
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 |
Adjustment to reconcile Net Income to Cash provided by operating activities: | |||
Depreciation, depletion and amortization | $270,177 | $257,327 | $246,035 |
Bond discount amortization | 19,054 | 8,028 | 0 |
Share-based compensation expense | 12,747 | 13,856 | 17,095 |
Deferred income taxes | 18,407 | 5,573 | 27,403 |
Gain on disposal of assets | (15,984) | (2,926) | (6,751) |
Gain on reserve exchanges | (26,537) | (32,449) | (10,284) |
Reserve on note receivable | 6,000 | 0 | 0 |
Loss on financing transactions | 369 | 11,431 | 0 |
Net unrealized (gains) losses in derivative instruments | (53,116) | 22,552 | 0 |
Unrealized loss on short-term investment | 0 | 6,537 | 0 |
Accretion of asset retirement obligations | 13,991 | 11,844 | 11,758 |
Changes in operating asset and liabilities: | |||
Decrease (increase) in accounts receivable | 100,020 | (77,953) | 19,253 |
(Increase) decrease in inventories | (36,658) | (49,808) | 7,696 |
(Increase) decrease in other current assets | (67,075) | 49,079 | 6,382 |
Increase in other assets | (1,589) | (9,621) | (5,362) |
(Decrease) increase in accounts payable | (79,222) | 95,995 | 31,049 |
(Increase) decrease in income taxes receivable | (2,350) | 10,048 | (35,714) |
Increase (decrease) in other accrued liabilities | 9,882 | 21,189 | (558) |
Increase in pension obligation | 10,796 | 1,625 | 5,171 |
Increase (decrease) in other noncurrent liabilities | 10,916 | (118) | (212) |
Asset retirement obligation payments | (5,352) | (4,957) | (11,061) |
Cash provided by operating activities | 288,909 | 385,081 | 395,998 |
Supplemental Cash Flow Information Cash paid during the period for income taxes | 13,539 | 4,219 | 34,502 |
Cash Flows from Investing Activities | |||
Capital expenditures | (274,552) | (736,529) | (270,461) |
Redesignation of cash equivalent to short-term investment | 0 | (217,900) | 0 |
Proceeds from redemption of short-term investment | 28,519 | 171,980 | 0 |
Proceeds from sale of assets | 19,010 | 5,958 | 28,118 |
Proceeds from insurance recovery | 15,395 | 0 | 0 |
Cash utilized by investing activities | (211,628) | (776,491) | (242,343) |
Cash Flows from Financing Activities | |||
Issuance of common stock | 0 | 258,188 | 0 |
Stock repurchase | 0 | 0 | (29,991) |
Repayments of capital lease obligations | (2,584) | (1,911) | (2,409) |
Proceeds from issuance of 3.25% convertible senior notes | 0 | 674,136 | 0 |
Repurchase of 3.25% convertible senior notes | (9,982) | (10,450) | 0 |
Tender payment for 6.625% senior notes | 0 | (322,139) | 0 |
Redemption of 4.75% convertible senior notes | (70) | 0 | 0 |
Proceeds from sale-leaseback transactions | 0 | 41,318 | 13,146 |
Cash dividends paid | (20,421) | (21,310) | (12,837) |
Proceeds from stock options exercised | 11,306 | 16,519 | 4,001 |
Excess income tax benefit (expense) from stock option exercises | 3,235 | (1,164) | 410 |
Gains Losses On Extinguishment Of Debt | 189 | 5,006 | 0 |
Cash (utilized) provided by financing activities | (18,516) | 633,187 | (27,680) |
Increase in cash and cash equivalents | 58,765 | 241,777 | 125,975 |
Cash and cash equivalents at beginning of period | 606,997 | 365,220 | 239,245 |
Cash and cash equivalents at end of period | $665,762 | $606,997 | $365,220 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) | ||||||
In Thousands | Common Stock [Member]
| Additional Capital [Member]
| Retained Earnings [Member]
| Accumulated Other Comprehensive Loss [Member]
| Treasury Stock [Member]
| Total
|
Balance - Shares at Dec. 31, 2006 | 81,066 | |||||
Balance - Value at Dec. 31, 2006 | $51,458 | $220,650 | $515,894 | ($40,716) | ($49,995) | $697,291 |
Net income | 0 | 0 | 94,098 | 0 | 0 | 94,098 |
Other comprehensive income: | ||||||
Pension and postretirement plans, net of deferred tax | 0 | 0 | 0 | 13,692 | 0 | 13,692 |
Comprehensive income | 0 | 0 | 0 | 0 | 0 | 107,790 |
Adoption of accounting standards: | ||||||
Uncertainty in income taxes | 0 | 0 | 5,182 | 0 | 0 | 5,182 |
Dividends declared | 0 | 0 | (13,587) | 0 | 0 | (13,587) |
Stock option expense | 0 | 8,308 | 0 | 0 | 0 | 8,308 |
Exercise of stock options | 188 | 3,813 | 0 | 0 | 0 | 4,001 |
Exercise of stock options (in shares) | 299 | |||||
Stock option tax benefit | 0 | 410 | 0 | 0 | 0 | 410 |
Restricted stock | 97 | 4,503 | 0 | 0 | 0 | 4,600 |
Restricted stock (in shares) | 155 | |||||
Share repurchase | 0 | 0 | 0 | 0 | (29,991) | (29,991) |
Share repurchase (in shares) | (1,576) | |||||
Balance - Value at Dec. 31, 2007 | 51,743 | 237,684 | 601,587 | (27,024) | (79,986) | 784,004 |
Balance - Shares at Dec. 31, 2007 | 79,944 | |||||
Net income | 0 | 0 | 47,829 | 0 | 0 | 47,829 |
Other comprehensive income: | ||||||
Pension and postretirement plans, net of deferred tax | 0 | 0 | 0 | (74,338) | 0 | (74,338) |
Comprehensive income | 0 | 0 | 0 | 0 | 0 | (26,509) |
Adoption of accounting standards: | ||||||
Dividends declared | 0 | 0 | (17,339) | 0 | 0 | (17,339) |
Stock option expense | 0 | 8,204 | 0 | 0 | 0 | 8,204 |
Exercise of stock options | 492 | 16,027 | 0 | 0 | 0 | 16,519 |
Exercise of stock options (in shares) | 787 | |||||
Stock option tax benefit | 0 | (1,164) | 0 | 0 | 0 | (1,164) |
Restricted stock | 185 | 5,467 | 0 | 0 | 0 | 5,652 |
Restricted stock (in shares) | 300 | |||||
Issuance of stock for debt conversion | 21 | 639 | 0 | 0 | 0 | 660 |
Issuance of stock for debt conversion (in shares) | 34 | |||||
Issuance of additional common shares | 937 | 177,265 | 0 | 0 | 79,986 | 258,188 |
Issuance of additional common shares (in shares) | 4,370 | |||||
Equity component of 3.25% convertible senior notes | 0 | 98,397 | 0 | 0 | 0 | 98,397 |
Balance - Value at Dec. 31, 2008 | 53,378 | 542,519 | 632,077 | (101,362) | 0 | 1,126,612 |
Balance - Shares at Dec. 31, 2008 | 85,435 | |||||
Net income | 0 | 0 | 104,433 | 0 | 0 | 104,433 |
Other comprehensive income: | ||||||
Pension and postretirement plans, net of deferred tax | 0 | 0 | 0 | 18,693 | 0 | 18,693 |
Comprehensive income | 0 | 0 | 0 | 0 | 0 | 123,126 |
Adoption of accounting standards: | ||||||
Dividends declared | 0 | 0 | (20,421) | 0 | 0 | (20,421) |
Stock option expense | 0 | 6,197 | 0 | 0 | 0 | 6,197 |
Exercise of stock options | 321 | 10,985 | 0 | 0 | 0 | 11,306 |
Exercise of stock options (in shares) | 515 | |||||
Stock option tax benefit | 0 | 3,235 | 0 | 0 | 0 | 3,235 |
Restricted stock | 169 | 6,381 | 0 | 0 | 0 | 6,550 |
Restricted stock (in shares) | 262 | |||||
Equity component of 3.25% convertible senior notes | 0 | (322) | 0 | 0 | 0 | (322) |
Balance - Value at Dec. 31, 2009 | $53,868 | $568,995 | $716,089 | ($82,669) | $0 | $1,256,283 |
Balance - Shares at Dec. 31, 2009 | 86,212 |
PARENTHETICAL DATA CONSOLIDATED
PARENTHETICAL DATA CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (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 |
Other comprehensive income: | |||
Other comprehensive income deferred taxes | $9,105 | $47,528 | $8,754 |
Divedends decleared per share | 0.24 | 0.21 | 0.17 |
1. Significant Accounting Polic
1. Significant Accounting Policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the accounts of Massey Energy Company (we, our, or us), its wholly owned and sole, direct operating subsidiary A.T. Massey Coal Company, Inc. (A.T. Massey) and A.T. Masseys wholly owned direct and indirect subsidiaries. Inter-company transactions and accounts are eliminated in consolidation. We have no independent assets or operations. We do not have a controlling interest in any separate independent operations. Investments in business entities in which we do not have control, but have the ability to exercise significant influence over the operating and financial policies, are accounted for under the equity method. A.T. Massey and substantially all of our indirect operating subsidiaries, each such subsidiary being indirectly 100% owned by us, fully and unconditionally, jointly and severally, guarantees our obligations under the 6.625% senior notes due 2010 (6.625% Notes), the 6.875% senior notes due 2013 (6.875% Notes), the 3.25% convertible senior notes due 2015 (3.25% Notes) and the 2.25% convertible senior notes due 2024 (2.25% Notes).The subsidiaries not providing a guarantee of the 6.625% Notes, the 6.875% Notes, the 3.25% Notes and the 2.25% Notes are minor (as defined under Securities and Exchange Commission (SEC) Rule 3-10(h)(6) of Regulation S-X). See Note 6 for a more complete discussion of debt. In May 2009, the Financial Accounting Standards Board (FASB) issued accounting guidance, effective for financial statements issued for interim and annual periods ending after June 15, 2009, which requires us to disclose the date through which we have evaluated subsequent events and whether the date corresponds with the release of our financial statements. We have evaluated subsequent events through the date the financial statements were issued. Codification In June 2009, the FASB issued new accounting guidance, effective for financial statements issued for interim and annual periods ending after September15, 2009, which identifies the FASB Accounting Standards Codification (Codification) as the authoritative source of GAAP in the United States. Rules and interpretive releases of the SEC under federal securities laws are also sources of authoritative GAAP for SEC registrants. Codification is not intended to change GAAP. The adoption of this new accounting guidance had no impact on our financial position or results of operations. Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect reported amounts. These estimates are based on information available as of the date of the financial statements. Therefore, actual results could differ from those estimates. The most significant estimates used in the preparation of the consolidated financial statements are related to defined benefit pension plans, coal workers pneumoconiosis (black lung), workers compensation, other postretirement benefits, reclamation and mine closure obligations, contingencies, income ta |
2. Inventories
2. Inventories | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Inventories | 2. Inventories Inventories consisted of the following: December 31, December 31, 2009 2008 (In Thousands) Saleable coal $ 179,081 $ 144,834 Raw coal 36,254 16,802 Subtotal coal inventory 215,335 161,636 Supplies inventory 54,491 71,532 Total inventory $ 269,826 $ 233,168 Saleable coal represents coal ready for sale, including inventories designated for customer facilities under consignment arrangements of $43.7 million and $50.7 million at December 31, 2009 and 2008, respectively. Raw coal represents coal that generally requires further processing prior to shipment to the customer. |
3. Other Current Assets
3. Other Current Assets | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Other Current Assets | 3. Other Current Assets Other current assets are comprised of the following: December 31, December 31, 2009 2008 (In Thousands) Longwall panel costs $ 12,041 $ 12,290 Deposits 133,794 59,648 Other 90,155 44,123 Total other current assets $ 235,990 $ 116,061 Deposits consist primarily of funds placed in restricted accounts with financial institutions to collateralize letters of credit that support workers compensation requirements, insurance and other obligations. As of December 31, 2009 and 2008, Deposits includes $46.0 million of funds pledged as collateral to support $45.1 million of outstanding letters of credit. In addition, Deposits at December 31, 2009 and 2008, includes $12.1 million and $13.0 million of United States Treasury securities supporting various regulatory obligations, respectively. During 2009, we posted $72.0 million of cash as collateral 66 for an appeal bond in the Harman litigation which is included in Deposits(see Note 18 to the Notes to Consolidated Financial Statements for more information). During 2009, we committed to the divestiture of certain mining equipment assets which are not part of our short-term mining plan. At December 31, 2009, the carrying amount of assets held for sale totaled $22.3million and is included in Other current assets. |
4. Property, Plant and Equipmen
4. Property, Plant and Equipment | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Property, Plant and Equipment | 4. Property, Plant and Equipment Property, plant and equipment is comprised of the following: December 31, December 31, 2009 2008 (In Thousands) Land, buildings and equipment $ 2,631,886 $ 2,538,762 Mining properties owned in fee and leased mineral rights 851,704 779,932 Mine development 1,131,707 1,054,631 Total property, plant and equipment 4,615,297 4,373,325 Less accumulated depreciation, depletion and amortization (2,270,527 ) (2,075,629 ) Net property, plant and equipment $ 2,344,770 $ 2,297,696 Land, buildings and equipment includes gross assets under capital leases of $12.9 million and $17.3 million at December 31, 2009 and 2008, respectively. During 2009, we exchanged coal reserves and other assets with various third parties, recognizing a gain in Other revenue of $26.5 million (pre-tax). The acquired coal reserves and other assets were recorded in Property, plant and equipment at the fair value of the reserves and other assets surrendered. During 2009, we sold our interest in certain coal reserves to a third party, recognizing a pre-tax gain of $7.1 million in Other revenue. During 2008, we exchanged coal reserves and other assets with various third-parties, recognizing a gain in Other revenue of $32.4 million (pre-tax). The acquired coal reserves were recorded in Property, plant and equipment at the fair value of the reserves surrendered. During 2008, we sold and leased-back certain mining equipment in several transactions for net proceeds of $41.3 million (see Note 13 for further details). During 2009, we had no material sale-leaseback transactions. On August 27, 2009, a fire destroyed the Bandmill preparation plant at our Logan County resource group, located near Logan, West Virginia. We maintain property insurance which is expected to cover property losses incurred from the fire. We received $15.4 million in insurance proceeds during 2009. A replacement preparation plant is currently under construction, which is expected to be operational by the fall of 2010. |
5. Pension Plans
5. Pension Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Pension Expense | 5. Pension Plans Defined Benefit Pension Plans We sponsor a qualified non-contributory defined benefit pension plan, which covers substantially all administrative and non-union employees. Based on a participants entrance date to the plan, the participant may accrue benefits based on one of four benefit formulas. Two of the formulas provide pension benefits based on the employees years of service and average annual compensation during the highest five consecutive years of service. The third formula credits certain eligible employees with flat dollar contributions based on years of service with Massey and years of service under the UMWA 1974 Pension Plan. The fourth formula provides benefits under a cash balance formula with contribution credits based on hours worked. This last formula has a guaranteed rate of return on contributions of 4% for all contributions after December 31, 2003. Funding for the plan is generally at the minimum contribution level required by applicable regulations. We made contributions of $15.0 million to the qualified plan during 2009.No contributions were made to the qualified plan during 2008. 67 An independent trustee holds the plan assets for the qualified defined benefit pension plan. The plans assets include cash and cash equivalents, corporate and government bonds, preferred and common stocks and an investment in a group annuity contract. We have an internal investment committee (Investment Committee) that sets investment policy, selects and monitors investment managers and monitors asset allocation. Diversification of assets is employed to reduce risk. The long-term target asset allocation is 65% for equity securities (including 50% domestic and 15% international) and 35% for cash and interest bearing securities. The investment policy is based on the assumption that the overall portfolio volatility will be similar to that of the target allocation. Given the volatility of the capital markets, strategic adjustments in various asset classes may be required to rebalance asset allocation back to its target policy. Investment fund managers are not permitted to invest in certain securities and transactions as outlined by the investment policy statements specific to each investment category without prior Investment Committee approval. In January 2009, the Investment Committee decided to reduce the targeted asset allocation for an interim period for equity securities to 25% of current plan assets given the recent volatility and uncertainty in the equity securities market.The Investment Committee decided to invest $65 million of plan assets previously invested in equity securities in a fixed duration, fixed income strategy with an effective duration of approximately four years.The Investment Committee expects to rebalance the asset portfolio consistent with the long-term target asset allocation at the maturity of the fixed income, fixed duration strategy. To develop the expected long-term rate of return on assets assumption, we considered the historical returns and the future expectations for returns for each asset class, as well as the long-term target asset allocation of the pension portfolio. This |
6. Debt
6. Debt | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Debt | 6. Debt Our debt is comprised of the following: December 31, December 31, 2009 2008 As Adjusted (In Thousands) 6.875% senior notes due 2013, net of discount $ 756,727 $ 756,041 3.25% convertible senior notes due 2015, net of discount 526,435 517,538 6.625% senior notes due 2010 21,949 21,949 2.25% convertible senior notes due 2024 9,647 9,647 4.75% convertible senior notes due 2023 - 70 Capital lease obligations 4,328 6,912 Total debt 1,319,086 1,312,157 Amounts due within one year (23,531 ) (1,976 ) Total long-term debt $ 1,295,555 $ 1,310,181 The weighted average effective interest rate of the outstanding borrowings was 7.3% at both December 31, 2009 and 2008. Convertible Debt Securities On January 1, 2009, new accounting guidance became effective relating to our 3.25% Notes, which was retroactively applied, as required. The impact to Earnings per share was a decrease of $0.13 and $0.10 for the years ended December 31, 2009 and 2008, respectively. We separately account for the liability and equity components in a manner reflective of our nonconvertible debt borrowing rate, which was determined to be 7.75% at the date of issuance of the 3.25% Notes. The discount associated with the 3.25% Notes is being amortized via the effective-interest method increasing the reported liability until the notes are carried at par value on their maturity date. We recognized $18.4 million and $6.9 million of non-cash interest expense forthe amortization of the discount for the years ended December 31, 2009 and 2008, respectively. Financing Transactions On August 5, 2008, we commenced a consent solicitation and tender offer for any and all of the outstanding $335 million of 6.625% Notes and concurrently we commenced registered underwritten public offerings of convertible senior notes (the 3.25% Notes) and shares of Common Stock and announced our intention to use the proceeds of the offerings to purchase some or all of the 6.625% Notes in the tender offer and for general corporate purposes. On August 19, 2008, we settled with holders of $311.5 million of the 6.625% Notes, representing approximately 93% of the outstanding 6.625% Notes, who tendered their 6.625% Notes pursuant to our consent solicitation and tender offer for the 6.625% Notes. The total consideration for these 6.625% Notes was $1,026.57 per $1,000 principal amount of the 6.625% Notes. The total consideration included a consent payment of $25 per $1,000 principal amount of the 6.625% Notes. In addition to the total consideration, holders also received interest which was accrued and unpaid since the previous interest payment date. As a result of the consents of approximately 93% of the outstanding 6.625% Notes, we received the requisite consents to execute a supplemental indenture relating to the 6.625% Notes, which eliminated substantially all of the restrictive covenants in the 6.625% Notes indenture. On September 3, 2008, we settled with holders of an additional $1.6 million of the 6.625% Note |
7. Income Taxes
7. Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Income Taxes | 7. Income Taxes Income tax expense included in the Consolidated Statements of Income is as follows: Year Ended December 31, December 31, December 31, 2009 2008 2007 As Adjusted (In Thousands) Current: Federal $ 14,309 $ (4,597 ) $ 7,876 State and local 116 122 126 Total current 14,425 (4,475 ) 8,002 Deferred: Federal 15,374 4,593 24,593 State and local 3,033 980 2,810 Total deferred 18,407 5,573 27,403 Income tax expense $ 32,832 $ 1,098 $ 35,405 75 A reconciliation of Income tax expense calculated at the federal statutory rate of 35% to our Income tax expense on Net income is as follows: Year Ended December 31, December 31, December 31, 2009 2008 2007 As Adjusted (In Thousands) U.S. statutory federal tax expense $ 48,043 $ 17,124 $ 45,326 Increase (Decrease) resulting from: State taxes 550 66 (116 ) Non-deductible penalties 4,903 6,240 8,062 Percentage depletion (33,918 ) (45,671 ) (33,501 ) Non-deductible compensation 805 666 711 Non-deductible refinancing and exchange offer costs - - (4,809 ) Valuation allowance adjustment 18,747 29,104 31,343 Uncertain tax positions - - (2,325 ) Alternative minimum tax credit refund, net of adjustment (5,988 ) (4,770 ) - Refund from settlement of 2001 IRS audit - - (4,609 ) Other, net (310 ) (1,661 ) (4,677 ) Income tax expense $ 32,832 $ 1,098 $ 35,405 Deferred taxes reflect the tax effects of differences between the amounts recorded as assets and liabilities for financial reporting purposes and the amounts recorded for income tax purposes. The tax effects of temporary differences giving rise to deferred tax assets and liabilities are as follows: Year Ended December 31, December 31, 2009 2008 As Adjusted (In Thousands) Deferred tax assets: Postretirement benefit obligations $ 113,757 $ 117,106 Workers' compensation 23,707 24,682 Reclamation and mine closure 52,286 46,608 Alternative minimum tax credit carryforwards 113,977 104,782 Litigation 3,534 9,777 Deferred compensation 31,766 26,088 Federal net operating loss 110,415 115,897 State net operating loss 24,264 25,083 Other 33,032 35,718 Total deferred tax assets 506,738 505,741 Valuation allowance for deferred tax assets (212,643 ) (202,318 ) Total deferred tax assets, net of valuation allowance 294,095 303,423 Deferred tax liabilities: Plant, equipment and mine development ( |
8. Other Noncurrent Liabilities
8. Other Noncurrent Liabilities | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Other Noncurrent Liabilities | 8. Other Noncurrent Liabilities Other noncurrent liabilities are comprised of the following: December 31, December 31, 2009 2008 (In Thousands) Reclamation (Note 9) $ 193,361 $ 154,823 Other postretirement benefits (Note 10) 155,024 161,527 Workers' compensation and black lung (Note 11) 98,227 92,982 Other 91,446 81,502 Total other noncurrent liabilities $ 538,058 $ 490,834 |
9. Reclamation
9. Reclamation | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Reclamation | 9. Reclamation Our reclamation liabilities primarily consist of spending estimates related to reclaiming surface land and support facilities at both surface and underground mines in accordance with federal and state reclamation laws as defined by each mine permit. The obligation and corresponding asset are recognized in the period in which the liability is incurred. We estimate our ultimate reclamation liability based upon detailed engineering calculations of the amount and timing of the future cash flows to perform the required work. We consider the estimated current cost of reclamation and apply inflation rates and a third-party profit, as necessary. The third-party profit is an estimate of the approximate markup that would be charged by contractors for work performed on our behalf. The discount rate applied is based on the rates of treasury bonds with maturities similar to the estimated future cash flow, adjusted for our credit standing. 77 The following table describes all changes to our reclamation liability: Year Ended December 31, December 31, 2009 2008 (In Thousands) Reclamation liability at beginning of period $ 186,180 $ 168,641 Accretion expense 13,991 11,844 Liability assumed/incurred 28,527 16,956 Liability disposed (505 ) (212 ) Revisions in estimated cash flows 11,721 (6,092 ) Payments (5,352 ) (4,957 ) Reclamation liability at end of period 234,562 186,180 Less amount included in Other current liabilities 41,201 31,357 Total reclamation, included in Other noncurrent liabilities $ 193,361 $ 154,823 |
10. Other Postretirement Benefi
10. Other Postretirement Benefits Expense | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Other Postretirement Benefits | 10. Other Postretirement Benefits We sponsor defined benefit health care plans that provide postretirement medical benefits to eligible union and non-union employees. To be eligible, retirees must meet certain age and service requirements. Depending on year of retirement, benefits may be subject to annual deductibles, coinsurance requirements, lifetime limits and retiree contributions. Service costs are accrued currently based on an annual study prepared by independent actuaries. These plans are unfunded. Net periodic postretirement benefit cost includes the following components: Year Ended December 31, December 31, December 31, 2009 2008 2007 (In Thousands) Service cost $ 3,913 $ 3,204 $ 3,668 Interest cost 10,017 8,845 8,467 Amortization of net loss 2,303 813 1,864 Amortization of prior service credit (750 ) (750 ) (750 ) Net periodic postretirement benefit cost $ 15,483 $ 12,112 $ 13,249 The discount rate assumed to determine the net periodic postretirement benefit cost was 6.10%, 6.50% and 5.90% for the years ended December 31, 2009, 2008 and 2007, respectively. The following table sets forth the change in benefit obligation of our postretirement benefit plans: Year Ended December 31, December 31, 2009 2008 (In Thousands) Change in benefit obligation: Benefit obligation at the beginning of the period $ 168,629 $ 147,733 Service cost 3,913 3,204 Interest cost 10,017 8,845 Plan amendment (27,595 ) - Actuarial loss 13,951 15,538 Benefits paid (6,827 ) (6,691 ) Benefit obligation at the end of the period $ 162,088 $ 168,629 Accrued postretirement benefit obligation $ 162,088 $ 168,629 Amount included in Payroll and employee benefits 7,064 7,102 Postretirement benefit obligation, included in Other noncurrent liabilities $ 155,024 $ 161,527 78 Effective January 1, 2010, we consolidated our self-insured Medicare-age non-union retiree plans into one insured plan.We will pay 100% of the premium for fiscal year 2010 for each retiree. In subsequent years, retirees will be responsible for inflationary increases in the insurance premium.Further, members hired after January 1, 2010 will be required to pay 100% of the applicable Medicare Supplemental Plan monthly premium. The table below details the changes to Accumulated other comprehensive loss related to our post retirement benefit plans: Year Ended December 31, 2009 December 31, 2008 (In Thousands) Net loss Prior service credit Net loss Prior service credit January 1 beginning balance $ 29,111 $ (4,605 ) $ 20,132 $ (5,063 ) Changes to Accumulated other comprehensive loss 7,107 458 8,979 458 Plan Amendment - (16,833 ) - - December 31 ending balance $ 36,218 $ (20,980 ) |
11. Workers' Compensation and B
11. Workers' Compensation and Black Lung Benefits | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Workers' Compensation and Black Lung Benefits | 11. Workers Compensation and Black Lung Benefits Workers compensation and black lung benefit obligation consisted of the following: December 31, December 31, 2009 2008 (In Thousands) Accrued self-insured black lung obligation $ 53,145 $ 50,739 Workers' compensation (traumatic injury) 61,792 64,172 Total accrued workers' compensation and black lung 114,937 114,911 Less amount included in Other current liabilities 16,710 21,929 Workers' compensation black lung in Other noncurrent liabilities $ 98,227 $ 92,982 The amount of workers' compensation (traumatic liability) related to self-insurance was $61.1 million and $59.1 million at December 31, 2009 and 2008, respectively. Weighted average actuarial assumptions used in the determination of the self-insured portion of workers compensation (traumatic injury) liability included a discount rate of 4.75% and 5.00% at December 31, 2009 and 2008, respectively, and the accumulated black lung obligation included a discount rate of 6.00% and 6.10% at December 31, 2009 and 2008, respectively. A reconciliation of changes in the self-insured black lung obligation is as follows: Year Ended December 31, December 31, 2009 2008 (In Thousands) Beginning of year accrued self-insured black lung obligation $ 50,739 $ 53,412 Service cost 3,689 2,186 Interest cost 2,872 3,390 Actuarial gain (1,535 ) (6,524 ) Benefit payments (2,620 ) (1,725 ) Accrued self-insured black lung obligation $ 53,145 $ 50,739 80 The table below details the changes to Accumulated other comprehensive loss related to black lung benefits: Year Ended December 31, 2009 December 31, 2008 (In Thousands) Net gain Net gain January 1 beginning balance $ (12,438 ) $ (10,587 ) Changes to Accumulated other comprehensive gain (loss) 1,854 (1,851 ) December 31 ending balance $ (10,584 ) $ (12,438 ) We expect to recognize $3.5 million of net actuarial gain in 2010. Expenses for black lung benefits and workers compensation related benefits include the following components: Year Ended December 31, December 31, December 31, 2009 2008 2007 (In Thousands) Self-insured black lung benefits: Service cost $ 3,689 $ 2,186 $ 2,495 Interest cost 2,872 3,390 3,117 Amortization of actuarial gain (4,575 ) (3,489 ) (3,194 ) 1,986 2,087 2,418 Other workers' compensation benefits 26,816 27,965 30,842 $ 28,802 $ 30,052 $ 33,260 Payments for benefits, premiums and other costs related to black lung and workers compensation liabilities were $31.8 million, $24.0 million and $29.6 million for the years ended December 31, 2009, 2008 and 2007, respectively. The actuarial assumptions used in the determination of self-insured black lung benef |
12. Stock Plans
12. Stock Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Stock Plans | 12. Stock Plans We have stock incentive plans to encourage employees and nonemployee directors to remain with the Company and to more closely align their interests with those of our shareholders. Description of Stock Plans The Massey Energy Company 2006 Stock and Incentive Compensation Plan (the 2006 Plan), which was approved by our shareholders and became effective on June 28, 2006 replaces the five stock-based compensation plans (the Prior Plans) we had in place prior to the approval of the 2006 Plan, all of which had been approved by our shareholders. On May 19, 2009, the Companys shareholders approved adding 1,550,000 shares to our 2006 Plan. The shareholders also approved a limit to the maximum number of shares available for awards granted in any form provided under the2006 Plan(other than stock options or SARS) to no more than 75% of the total number of issuable shares. The Prior Plans include the following: Massey Energy Company 1996 Executive Stock Plan, as amended and restated effective November 30, 2000 (the 1996 Plan), Massey Energy Company 1997 Stock Appreciation Rights Plan, as amended and restated effective November 30, 2000 (the SAR Plan), Massey Energy Company 1999 Executive Performance Incentive Plan, as amended and restated effective November 30, 2000 (the 1999 Plan), Massey Energy Company Stock Plan for Non-Employee Directors, as amended and restated effective May 24, 2005 (the 1995 Plan), and Massey Energy Company 1997 Restricted Stock Plan for Non-Employee Directors, as amended and restated effective May 24, 2005 (the 1997 Plan). Stock-based compensation has been granted under the 2006 Plan and the Prior Plans in the manner described below. Issued and outstanding stock-based compensation has been granted to officers and certain key employees in accordance with the provisions of the 1996 Plan, the SAR Plan, the 1999 Plan, and the 2006 Plan. Issued and outstanding stock-based compensation has been granted to non-employee directors in accordance with the provisions of the 1995 Plan, the 1997 Plan and the 2006 Plan. The Compensation Committee of the Board of Directors administers the 1996 Plan, the 1999 Plan, the SAR Plan and the 2006 Plan. A committee comprised of non-participating board members administers the 1995 Plan and the 1997 Plan. The 1996 Plan provided for grants of stock options and restricted stock. The 1999 Plan provided for grants of stock options, restricted stock, incentive awards and stock units. The SAR Plan provided for grants of SARs. The 1995 Plan provided for grants of restricted stock and restricted units. The 1997 Plan provided for grants of restricted stock. As of June 28, 2006, grants can no longer be made under the Prior Plans, except for the 1996 Plan, under which grants could no longer be made as of March 2, 2006. All awards previously granted that are outstanding under the Prior Plans will remain effective in accordance with the terms of their grant. The aggregate number of shares of Common Stock that may be issued for future grant under the 2006 Plan as of December 31, 2009 was2,704,145 shares, which was computed as the 3,500,000 shares spec |
13. Lease Obligations
13. Lease Obligations | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Lease Obligations | 13. Lease Obligations We lease certain mining and other equipment under various lease agreements. Certain of these leases provide options for the purchase of the property at the end of the initial lease term, generally at its then fair market value, or to extend the 84 terms at its then fair rental value. Certain of these leases contain financial or other non-performance covenants that may require an accelerated buyout of the lease if the covenants are violated. Rental expense for the years ended December 31, 2009, 2008 and 2007 was $81.8 million, $53.1 million and $39.7 million, respectively. During 2008 and 2007 we sold and leased-back certain mining equipment. We received net proceeds of $41.3 million and $13.1 million, for the years ended December 31, 2008 and 2007, respectively, resulting in net deferred gains of $2.4 million and $1.2 million for the years ended December 31, 2008 and 2007, respectively. The gains are being recognized ratably over the term of the leases, which range from 3.5 to 7 years. At lease termination, the leases contain renewal and purchase options at an amount approximating fair value. The leases are being accounted for as operating leases. We did not engage in any material sale-leaseback transactions in 2009. The following presents future minimum rental payments, by year, required under leases with initial terms greater than one year, in effect at December 31, 2009: Capital Leases Operating Leases (In Thousands) 2010 $ 1,759 $ 75,412 2011 2,705 64,827 2012 35 54,477 2013 35 37,533 2014 35 12,602 Beyond 2014 - 7,601 Total minimum lease payments 4,569 $ 252,452 Less imputed interest 241 Present value of minimum capital lease payments $ 4,328 |
14. Concentrations of Credit Ri
14. Concentrations of Credit Risk and Major Customers | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Concentrations of Credit Risk and Major Customers | 14. Concentrations of Credit Risk and Major Customers We are engaged in the production of coal for the utility industry, steel industry and industrial markets. The following chart lists the percentage of each type of Produced coal revenue generated by market: For the years ended December 31, 2009 2008 2007 Utility coal 62% 53% 60% Metallurgical coal 30% 37% 30% Industrial coal 8% 10% 10% Our mining operations are conducted in southern West Virginia, eastern Kentucky and western Virginia. We market our produced and purchased coal to customers in the United States and in international markets, including Canada and various European and Asian countries.For the years ended December 31, 2009, 2008, and 2007 approximately 20%, 30%, and 16%, respectively, of Produced coal revenue was attributable to sales to customers outside of the United States. For the years ended December 31, 2009 and 2008, approximately 19% and 11%, respectively, of Produced coal revenue was attributable to sales to Constellation Energy Commodities Group, Inc. For the year ended December 31, 2007, approximately 11% of Produced coal revenue was attributable to sales to affiliates of American Electric Power Company, Inc. At December 31, 2009, approximately 61%, 19% and 20% of Trade receivables represents amounts due from utility customers, metallurgical customers and industrial customers, respectively, compared with 75%, 13% and 12%, respectively, as of December 31, 2008. Our Trade and other accounts receivable are subject to potential default by customers. In prior years, certain of our customers have filed for bankruptcy resulting in bad debt charges. In an effort to mitigate credit-related risks in all customer classifications, we maintain a credit policy, which requires scheduled reviews of customer creditworthiness and continuous monitoring of customer news events that might have an impact on their financial condition. Negative credit performance or events may trigger the application of tighter terms of sale, requirements for collateral or guarantees or, ultimately, a suspension of credit privileges. We also insure the receivables of certain customers whose financial condition puts them at a greater risk of loss; recoveries under this insurance programare subject to 10% co-insurance and a $5 million deductible. We 85 establish bad debt reserves to specifically consider customers in financial difficulty and other potential receivable losses. In establishing the reserve, we consider the financial condition of individual customers and probability of recovery in the event of default. We charge off uncollectible receivables once legal potential for recovery is exhausted. See Note 18 for a discussion of certain customer disputes. |
15. Derivative Instruments
15. Derivative Instruments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Derivative Instruments | 15. Derivative Instruments Upon entering into each coal sales and coal purchase contract, we evaluate each of our contracts to determine if they qualify for the NPNS exceptionprescribed by current accounting guidance. We use purchase coal contracts to supplement our produced and processed coal in order to provide coal to meet customer requirements under sales contracts. The majority of our contracts qualifiy for the NPNS exception and thereforeare not reflected in the Consolidated Balance Sheets and Consolidated Statements of Income. For those contracts that do not qualify for the NPNS exception, at inception or at some point during the duration of the contract, the contracts are required to be accounted for as derivative instruments and must be recognized as assets or liabilities and measured at fair value. Those contracts that do not qualify for the NPNS exception have not been designated as cash flow or fair value hedges and, accordingly, the net change in fair value is recorded in current period earnings. As of December 31, 2009, there were approximately 1.0 million and 1.1 million tons outstanding under these coal purchase and coal sales contracts, respectively. As of December 31, 2008, there were approximately 1.8 million and 2.2 million tons outstanding under these coal purchase and coal sales contracts, respectively. We have recorded a net gain of $37.6 million ($53.1 million of unrealized gains due to fair value measurement adjustments and $15.5 million of realized losses due to settlements on existing contracts) for the year ended December 31, 2009, and $22.6 million of unrealized losses due to fair value measurement adjustments for the year ended December 31, 2008, related to coal sales and purchase contracts that did not qualify for the NPNS exception in the Consolidated Statements of Income under the caption (Gain) loss on derivative instruments. An asset of $30.6 million is included in Other current assets in the Consolidated Balance Sheet as of December 31, 2009. A liability of $22.6 million is included in Other current liabilities in the Consolidated Balance Sheet as of December 31, 2008. The fair values of our purchases and sales derivative contracts have been aggregated in Other current assets and Other current liabilities as of December 31, 2009 and 2008, respectively. We are exposed to certain risks related to coal price volatility. The purchases and sales contracts we enter into allow us to mitigate a portion of the underlying risk associated with coal price volatility. |
16. Fair Value of Financial Ins
16. Fair Value of Financial Instruments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Fair Value of Financial Instruments | 16. Fair Value of Financial Instruments Financial and non-financial assets and liabilities that are required to be measured at fair value must be categorized based upon the levels of judgment associated with the inputs used to measure their fair value.Hierarchical levels directly related to the amount of subjectivity associated with the inputs used to determine the fair value of financial assets and liabilities are as follows: Level 1 Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the assets or liability through correlation with market data at the measurement date and for the duration of the instruments anticipated life. Level 3 Inputs reflect managements best estimate of what market participants would use in pricing the asset or liability at the measurement date.Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Each major category of financial assets and liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations. December 31, 2009 (In Thousands) Level 1 Level 2 Level 3 Total Fixed income securities $ 12,147 $ - $ - $ 12,147 Money market funds 763,573 - - 763,573 Short-term investment - - 10,864 10,864 Derivative instruments - 30,564 30,564 Total securities $ 775,720 $ 30,564 $ 10,864 $ 817,148 86 Fixed income securities and money market funds All investments in money market funds are cash equivalents or deposits pledged as collateral and are invested in AAA prime money market funds and Treasury-backed funds. Included in the money market funds are $46.0 million of funds pledged as collateral to support $45.1 million of outstanding letters of credit and $72.0 million of cash held as collateral for an appeal bond in the Harman litigation. All fixed income securities are deposits, consisting of obligations of the U.S. Treasury, supporting various regulatory obligations.See Note 3 to the Notes to Consolidated Financial Statements for more information on deposits. Short-Term Investment Short-term investment is comprised of an investment in Primary Fund, a money market fund that has suspended redemptions and is being liquidated. We have determined that our investment in the Primary Fund no longer meets the definition of a security, within the scope of current accounting guidance, since the equity investment no longer has a readily determinable fair value. Therefore, the investment has been classified as a short-term investment, subject to the cost method of accounting, on our Consolidated Balance Sheet. This classification as a short-term investment is based on our assessment of each of the individual securities that make up the underlying portfolio holdings in the Primary Fund, which prim |
17. Common Stock Issuance
17. Common Stock Issuance | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Common Stock Issuance | 17. Common Stock Issuance On August12, 2008, we completed a registered underwritten public offering of 4,370,000 shares of Common Stock, which included 2,874,800 shares of our Treasury stock, at a public offering price of $61.50 per share, resulting in proceeds to us of $258.2 million, net of underwriting fees. As discussed in Note 6, we used these proceeds and the proceeds of the concurrent convertible notes offering to purchase a portion of the 6.625% Notes in connection with the 6.625% Notes consent solicitation and tender offer and for general corporate purposes. |
18. Contingencies
18. Contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Contingencies | 18. Contingencies Harman In December 1997, A.T. Masseys then subsidiary, Wellmore Coal Corporation (Wellmore), declared force majeure under its coal supply agreement with Harman Mining Corporation (Harman) and reduced the amount of coal to be purchased from Harman. On October 29, 1998, Harman and its sole shareholder sued A.T. Massey and five of its other subsidiaries (the Massey Defendants) in the Circuit Court of Boone County, West Virginia, alleging that the Massey Defendants tortiously interfered with Wellmores agreement with Harman, causing Harman to go out of business. On August 1, 2002, the jury awarded the plaintiffs $50 million in compensatory and punitive damages. On October 24, 2006, the Massey Defendants timely filed their Petition for Appeal to the Supreme Court of Appeals of West Virginia (WV Supreme Court).On November 21, 2007, the WV Supreme Court issued a 3-2 majority opinion reversing the judgment against the Massey Defendants and remanding the case to the Circuit Court of Boone County with directions to enter an order dismissing the case, with prejudice, in its entirety.The Harman plaintiffs filed motions asking the WV Supreme Court to conduct a rehearing in the case. On January 24, 2008, the WV Supreme Court decided to rehear the case, which was re-argued on March 12, 2008. On April 3, 2008, the WV Supreme Court again reversed the judgment against the Massey Defendants and remanded the case with direction to enter an order dismissing the case, with prejudice, in its entirety. In July 2008, the Harman plaintiffs petitioned the United States Supreme Court (the U.S. Supreme Court) to review the WV Supreme Courts dismissal of their claims. In December 2008, the U.S. Supreme Court agreed to review the case.The U.S. Supreme Court granted review based on the question of whether a justice of the WV Supreme Court should have recused himself from the appeal. The U.S. Supreme Court found that the justice should have recused himself and ruled on June 8, 2009 that the matter should be reheard by the WV Supreme Court.The WV Supreme Court heard oral arguments on the matter on September 8, 2009, and reversed the lower courts decision on November 12, 2009.The Harman plaintiffs subsequently requested that the WV Supreme Court reconsider its decision.The WV Supreme Court has yet to rule on that request.We were required to post $72 million of cash as collateral for an appeal bond prior to the rehearing on September 8, 2009, and the WV Supreme Court has not released that appeal bond while the request for reconsideration has been outstanding.Because the West Virginia Supreme Court rarely grants requests for reconsideration, we believe at this time that this matter will be resolved without a material adverse impact on our cash flows, results of operations or financial condition. West Virginia Flooding Since July 2001, we and nine of our subsidiaries were sued in 17 consolidated civil actions filed in the Circuit Courts of Boone, Fayette, Kanawha, McDowell, Mercer, Raleigh and Wyoming Counties, West Virginia, for alleged property damages and personal injuries arising out of flooding on or about July 8, 2001. Along with 32 o |
19. Quarterly Information
19. Quarterly Information (Unaudited) | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Quarterly Information (Unaudited) | 19. Quarterly Information (Unaudited) The table below details our quarterly financial information for the previous two fiscal years. Three Months Ended March 31, June 30, September 30, December 31, 2009 (1) 2009 2009 (2) 2009 (3) (In Thousands, Except Per Share Amounts) Total revenue $ 768,088 $ 697,627 $ 641,560 $ 583,884 Income before interest and taxes 72,750 48,705 45,783 59,738 Income before taxes 56,391 26,059 20,880 33,935 Net income 43,426 20,192 16,458 24,357 Net income per share: Basic $ 0.51 $ 0.24 $ 0.19 $ 0.29 Diluted $ 0.51 $ 0.24 $ 0.19 $ 0.28 Three Months Ended March 31, 2008 (4) June 30, 2008 (5) September 30, 2008 (6) December 31, 2008 (7) As Adjusted As Adjusted (In Thousands, Except Per Share Amounts) Total revenue $ 644,625 $ 826,838 $ 763,296 $ 755,030 Income (loss) before interest and taxes 68,975 (108,574 ) 93,490 74,863 Income (loss) before taxes 53,239 (125,794 ) 61,852 59,630 Net income (loss) 41,934 (93,338 ) 51,558 47,675 Net income (loss) per share Basic $ 0.53 $ (1.16 ) $ 0.62 $ 0.56 Diluted $ 0.52 $ (1.16 ) $ 0.61 $ 0.56 (1) Net income for the first quarter of 2009 included the recognition of $12.2 million in pre-tax income ($5.1 million benefit recorded in Cost of purchased coal revenue and $7.1 million in interest income) from the receipt of black lung excise tax refunds as authorized by federal legislation passed in October 2008. Additionally, during the first quarter of 2009, we sold our interest in certain coal reserves to a third party, recognizing a pre-tax gain of $7.1 million in Other revenue. (2) Income for the third quarter of 2009 includes a $24.9 million pre-tax gain on the exchange of coal reserves. (3) The results for the fourth quarter of 2009 included the impact of a $6.0 million reserve for bad debt related to a note receivable from a supplier. (4) Income for the first quarter of 2008 includes a $13.6 million pre-tax gain on the exchange of coal reserves. (5) Loss for the second quarter of 2008 includes $245.3 million pre-tax expense related to litigation with Wheeling-Pittsburgh Steel Corporation and a $15.3 million pre tax gain on the exchange of coal reserves. (6) Income for the third quarter of 2008 includes $5.8 million pre-tax expense related to litigation with Wheeling-Pittsburgh Steel Corporation, $9.1 million pre-tax loss on financing transaction related to fees incurred for the tender offer for our 6.625% Notes (see Note 6 for further information), $3.6 million pre-tax gain on the exchange of coal reserves and other assets, and a $6.5 million pre-tax loss on short-term investment refl |
Schedule II-Valuation And Quali
Schedule II-Valuation And Qualifying Accounts | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Schedule To Financial Statements [Abstract] | |
Schedule II-Valuation And Qualifying Accounts | MASSEY ENERGY COMPANY SCHEDULE IIVALUATION AND QUALIFYING ACCOUNTS (In Thousands) Description Balance at Beginning of Period Amounts Charged to Costs and Expenses Deductions (1) Other Balance at End of Period YEAR ENDED DECEMBER 31, 2009 Reserves deducted from asset accounts: Allowance for accounts and notes receivable $ 873 $ 6,430 $ - $ - $ 7,303 (2) YEAR ENDED DECEMBER 31, 2008 Reserves deducted from asset accounts: Allowance for accounts and notes receivable $ 444 $ 429 $ - $ - $ 873 YEAR ENDED DECEMBER 31, 2007 Reserves deducted from asset accounts: Allowance for accounts and notes receivable $ 576 $ (132 ) $ - $ - $ 444 (1)Reserves utilized, unless otherwise indicated. (2) Allowance for accounts and notes receivable for the year ended December 31, 2009 includes a $6 million reserve for bad debt related to a note receivable from a supplier, which was recorded in Other noncurrent assets at December 31, 2009. |
Document Information
Document Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-K |
Document Period End Date | 2009-12-31 |
Amendment Flag | false |
Entity Information
Entity Information (USD $) | ||
12 Months Ended
Dec. 31, 2009 | Jun. 30, 2009
| |
Entity [Text Block] | ||
Entity Registrant Name | Massey Energy Co | |
Entity Central Index Key | 0000037748 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well Known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $1,670,076,824 | |
Entity Common Stock Shares Outstanding | 86,213,582 |