CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Thousands | Dec. 31, 2009
| Dec. 31, 2008
|
Current assets of continuing operations: | ||
Cash and cash equivalents | $165,279 | $116,074 |
Receivables, net | 70,500 | 140,423 |
Inventories | 99,278 | 75,172 |
Deferred income taxes | 110,576 | 84,669 |
Other current assets | 27,065 | 26,119 |
Total current assets | 472,698 | 442,457 |
Property, plant and equipment, net | 522,931 | 504,585 |
Deferred income taxes | 178,338 | 179,402 |
Other long-term assets | 70,192 | 69,251 |
Total assets of continuing operations | 1,244,159 | 1,195,695 |
Assets of discontinued operations: | ||
Current assets | 15,197 | 16,158 |
Long-term assets | 18,396 | |
Unclassified assets | 1,837,744 | |
Total assets of discontinued operations | 15,197 | 1,872,298 |
Total assets | 1,259,356 | 3,067,993 |
Liabilities of continuing operations: | ||
Accounts payable | 44,211 | 60,497 |
Accrued expenses | 39,034 | 57,230 |
Current debt | 13,351 | 13,480 |
Accumulated postretirement benefits obligation | 23,563 | 19,124 |
Other current liabilities | 18,513 | 20,801 |
Total current liabilities | 138,672 | 171,132 |
Long-term debt | 163,147 | 211,905 |
Accumulated postretirement benefits obligation | 429,096 | 349,184 |
Other long-term liabilities | 261,736 | 273,645 |
Total liabilities of continuing operations | 992,651 | 1,005,866 |
Liabilities of discontinued operations: | ||
Current liabilities | 7,310 | 12,400 |
Unclassified liabilities | 1,419,458 | |
Total liabilities of discontinued operations | 7,310 | 1,431,858 |
Total liabilities | 999,961 | 2,437,724 |
Stockholders' equity: | ||
Common stock, $0.01 par value per share: Authorized - 200,000,000 shares; Issued - 53,256,904 and 54,143,958 shares, respectively | 533 | 541 |
Preferred stock, $0.01 par value per share: Authorized - 20,000,000 shares, issued - 0 shares | 0 | 0 |
Capital in excess of par value | 374,522 | 714,174 |
Retained earnings | 50,852 | 50,990 |
Accumulated other comprehensive income (loss): | ||
Pension and other post-retirement benefit plans, net of tax | (167,037) | (137,364) |
Unrealized gain on hedges, net of tax | 525 | 1,928 |
Total stockholders' equity | 259,395 | 630,269 |
Total liabilities and stockholders' equity | $1,259,356 | $3,067,993 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $) | ||
Dec. 31, 2009
| Dec. 31, 2008
| |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value per share (in dollars per share) | 0.01 | 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 53,256,904 | 54,143,958 |
Preferred stock, par value per share (in dollars per share) | 0.01 | 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (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 |
Net sales and revenues: | |||
Net sales | $955,508 | $1,135,745 | $745,236 |
Miscellaneous income | 11,319 | 13,939 | 29,559 |
Net sales and revenues | 966,827 | 1,149,684 | 774,795 |
Cost and expenses: | |||
Cost of sales (exclusive of depreciation) | 586,774 | 628,325 | 496,284 |
Depreciation | 72,939 | 56,542 | 39,234 |
Selling, general and administrative | 70,063 | 63,394 | 55,182 |
Postretirement benefits | 30,833 | 27,557 | 27,750 |
Amortization of intangibles | 447 | 273 | 351 |
Restructuring and impairment charges | 3,601 | 32,386 | |
Cost and expenses | 764,657 | 808,477 | 618,801 |
Operating income | 202,170 | 341,207 | 155,994 |
Interest expense | (18,975) | (26,226) | (18,830) |
Interest income | 799 | 17,808 | 2,545 |
Income from continuing operations before income tax expense | 183,994 | 332,789 | 139,709 |
Income tax expense | 42,144 | 101,597 | 41,482 |
Income from continuing operations | 141,850 | 231,192 | 98,227 |
Income (loss) from discontinued operations | (4,692) | 115,388 | 13,772 |
Net income | $137,158 | $346,580 | $111,999 |
Basic income (loss) per share: | |||
Income from continuing operations (in dollars per share) | 2.67 | 4.3 | 1.89 |
Income (loss) from discontinued operations (in dollars per share) | -0.09 | 2.14 | 0.26 |
Basic net income per share (in dollars per share) | 2.58 | 6.44 | 2.15 |
Diluted income (loss) per share: | |||
Income from continuing operations (in dollars per share) | 2.64 | 4.24 | 1.87 |
Income (loss) from discontinued operations (in dollars per share) | -0.09 | 2.11 | 0.26 |
Diluted net income per share (in dollars per share) | 2.55 | 6.35 | 2.13 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME (USD $) | ||||||
In Thousands | Common Stock
| Capital in Excess of Par Value
| Retained Earnings (Deficit)
| Treasury Stock
| Accumulated Other Comprehensive Income (Loss)
| Total
|
Balance, previously reported at Dec. 31, 2006 | $728 | $757,699 | ($398,564) | ($259,317) | ($98,638) | $1,908 |
Balance at Dec. 31, 2006 | 728 | 757,699 | (402,985) | (259,317) | (98,638) | (2,513) |
Increase (Decrease) in Stockholders' Equity | ||||||
Adjustment to initially apply FIN 48 | (4,421) | (4,421) | ||||
Comprehensive income: | ||||||
Net income | 111,999 | 111,999 | ||||
Other comprehensive income, net of tax: | ||||||
Change in pension and postretirement benefit plans, net of tax benefit of $44.2 million for 2009, tax benefit of $32.3 million for 2008 and tax provision of $9.7 million for 2007 | 15,231 | 15,231 | ||||
Change in unrealized gain (loss) on hedges, net of $0.4 million tax for 2009, $4.5 million tax provision for 2008 and $4.3 million tax benefit for 2007 | (8,446) | (8,446) | ||||
Comprehensive income | 118,784 | |||||
Effects of changing the pension plan measurement date pursuant to FASB Statement No. 158: | ||||||
Retirement of treasury stock | (207) | (259,902) | 260,109 | |||
Purchases of stock under stock repurchase program | (1) | (5,626) | (5,627) | |||
Stock issued upon the exercise of stock options | 1,447 | 1,447 | ||||
Tax benefit on the exercise of stock options | 2,015 | 2,015 | ||||
Dividends paid $0.40 per share for year 2009, $ 0.30 per share for year 2008 and $0.20 per share for year 2007 | (10,411) | (10,411) | ||||
Stock based compensation | 11,810 | 11,810 | ||||
Other | (792) | (792) | ||||
Balance at Dec. 31, 2007 | 520 | 497,032 | (290,986) | (91,853) | 114,713 | |
Comprehensive income: | ||||||
Net income | 346,580 | 346,580 | ||||
Other comprehensive income, net of tax: | ||||||
Change in pension and postretirement benefit plans, net of tax benefit of $44.2 million for 2009, tax benefit of $32.3 million for 2008 and tax provision of $9.7 million for 2007 | (50,961) | (50,961) | ||||
Change in unrealized gain (loss) on hedges, net of $0.4 million tax for 2009, $4.5 million tax provision for 2008 and $4.3 million tax benefit for 2007 | 6,710 | 6,710 | ||||
Comprehensive income | 302,329 | |||||
Effects of changing the pension plan measurement date pursuant to FASB Statement No. 158: | ||||||
Service cost, interest cost, and expected return on plan assets for October 1-December 31, 2007, net of $3.0 million tax benefit | (4,604) | (4,604) | ||||
Amortization of prior service cost and actuarial gain/loss for October 1-December 31, 2007, net of $0.5 million tax provision | 668 | 668 | ||||
Proceeds from public stock offering | 32 | 280,432 | 280,464 | |||
Purchases of stock under stock repurchase program | (16) | (64,628) | (64,644) | |||
Stock issued upon the exercise of stock options | 4 | 7,989 | 7,993 | |||
Stock issued upon conversion of convertible notes | 1 | 784 | 785 | |||
Dividends paid $0.40 per share for year 2009, $ 0.30 per share for year 2008 and $0.20 per share for year 2007 | (16,233) | (16,233) | ||||
Stock based compensation | 10,439 | 10,439 | ||||
Other | (1,641) | (1,641) | ||||
Balance at Dec. 31, 2008 | 541 | 714,174 | 50,990 | (135,436) | 630,269 | |
Comprehensive income: | ||||||
Net income | 137,158 | 137,158 | ||||
Other comprehensive income, net of tax: | ||||||
Change in pension and postretirement benefit plans, net of tax benefit of $44.2 million for 2009, tax benefit of $32.3 million for 2008 and tax provision of $9.7 million for 2007 | (28,513) | (28,513) | ||||
Change in unrealized gain (loss) on hedges, net of $0.4 million tax for 2009, $4.5 million tax provision for 2008 and $4.3 million tax benefit for 2007 | (877) | (877) | ||||
Comprehensive income | 107,768 | |||||
Effects of changing the pension plan measurement date pursuant to FASB Statement No. 158: | ||||||
Purchases of stock under stock repurchase program | (14) | (34,240) | (34,254) | |||
Stock issued upon the exercise of stock options | 6 | 9,882 | 9,888 | |||
Stock dividend for spin-off of Financing | (321,301) | (116,106) | (1,686) | (439,093) | ||
Dividends paid $0.40 per share for year 2009, $ 0.30 per share for year 2008 and $0.20 per share for year 2007 | (21,190) | (21,190) | ||||
Stock based compensation | 6,703 | 6,703 | ||||
Other | (696) | (696) | ||||
Balance at Dec. 31, 2009 | $533 | $374,522 | $50,852 | ($166,512) | $259,395 |
1_CONSOLIDATED STATEMENTS OF CH
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME (PARENTHETICAL) (USD $) | |||
In Millions, except Per Share data | 1/1/2009 - 12/31/2009
| 1/1/2008 - 12/31/2008
| 1/1/2007 - 12/31/2007
|
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME | |||
Change in pension and postretirement benefit plans, tax | 44.2 | 32.3 | -9.7 |
Change in unrealized gain (loss) on hedges, tax | -0.4 | 4.5 | -4.3 |
Service cost, interest cost, and expected return on plan assets, tax | (3) | ||
Amortization of prior service cost and actuarial gain/loss, tax | 0.5 | ||
Dividends paid (in dollars per share) | 0.4 | 0.3 | 0.2 |
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 | Dec. 31, 2006
|
OPERATING ACTIVITIES | ||||
Net income | $137,158 | $346,580 | $111,999 | |
Loss (income) from discontinued operations | 4,692 | (115,388) | (13,772) | |
Income from continuing operations | 141,850 | 231,192 | 98,227 | |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||||
Depreciation | 72,939 | 56,542 | 39,234 | |
Deferred income tax provision (benefit) | 29,038 | 89,370 | (2,522) | |
Non-cash restructuring and impairment charges | 3,601 | 32,386 | ||
Other | 18,337 | 13,448 | 15,160 | |
Decrease (increase) in current assets, net of effect of acquisitions: | ||||
Receivables | 69,772 | (92,421) | 7,255 | |
Inventories | (25,076) | (32,005) | 5,095 | |
Other current assets | 17,624 | 23,775 | 6,738 | |
Increase (decrease) in current liabilities, net of effect of acquisitions: | ||||
Accounts payable | (16,286) | 4,768 | 7,963 | |
Accrued expenses and other current liabilities | (27,831) | 4,399 | (12,983) | |
Cash flows provided by (used in) operating activities | 283,968 | 331,454 | 164,167 | |
INVESTING ACTIVITIES | ||||
Additions to property, plant and equipment | (96,298) | (99,946) | (147,556) | |
Acquisitions, net of cash acquired | (17,089) | (11,650) | ||
Other | 3,270 | (1,726) | 1,712 | |
Cash flows provided by (used in) investing activities | (93,028) | (118,761) | (157,494) | |
FINANCING ACTIVITIES | ||||
Proceeds from issuance of debt | 340,000 | |||
Retirements of debt | (61,597) | (398,709) | (44,679) | |
Sale of common stock | 280,464 | |||
Purchases of stock under stock repurchase program | (34,254) | (64,644) | ||
Cash spun off to Financing | (33,821) | |||
Dividends paid | (21,190) | (16,233) | (10,411) | |
Other | 3,719 | 5,172 | 1,185 | |
Cash flows provided by (used in) financing activities | (147,143) | 146,050 | (53,905) | |
Cash flows provided by (used in) continuing operations | 43,797 | 358,743 | (47,232) | |
CASH FLOWS FROM DISCONTINUED OPERATIONS | ||||
Cash flows provided by (used in) operating activities | 19,070 | 25,563 | (23,521) | |
Cash flows provided by (used in) investing activities | 27,379 | 36,210 | 4,193 | |
Cash flows provided by (used in) financing activities | (41,385) | (333,458) | (30,196) | |
Cash flows provided by (used in) discontinued operations | 5,064 | (271,685) | (49,524) | |
Net increase (decrease) in cash and cash equivalents | 48,861 | 87,058 | (96,756) | |
Cash and cash equivalents at beginning of year | 116,074 | 27,459 | 123,731 | |
Net increase (decrease) in cash and cash equivalents | 48,861 | 87,058 | (96,756) | |
Cash and cash equivalents at end of year | 165,279 | 116,074 | 27,459 | 123,731 |
Add: Cash and cash equivalents of discontinued operations at beginning of year | 1,598 | 3,155 | 3,639 | |
Less: Cash and cash equivalents of discontinued operations at end of year | 1,254 | 1,598 | 3,155 | 3,639 |
SUPPLEMENTAL DISCLOSURES: | ||||
Interest paid, net of capitalized interest | 9,991 | 18,638 | 19,703 | |
Income taxes paid | 15,326 | 27,680 | 54,818 | |
Acquisition of Taft in 2008 and TRI in 2007: | ||||
Fair value of assets acquired | 71,679 | 26,260 | ||
Fair value of liabilities assumed | (51,579) | (14,216) | ||
Less: Cash acquired | (3,011) | (394) | ||
Net cash paid | 17,089 | 11,650 | ||
Non-Cash Financing Activities: | ||||
One-year property insurance policy financing agreement | 12,710 | 13,884 | 12,516 | |
Dividend to spin off Financing | 437,407 | |||
Equipment acquired with specific financing arrangements | 41,681 | |||
Non-cash conversion of Senior Subordinated Convertible Notes into stock | $785 |
Organization
Organization | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Organization | NOTE 1Organization On April23, 2009, Walter Industries,Inc. changed its name to Walter Energy,Inc. ("Walter"). Walter, together with its consolidated subsidiaries ("the Company"), is a leading U.S. producer and exporter of premium hard coking coal for the global steel industry (Underground Mining), operates surface mines for the steam coal and industrial coal markets (Surface Mining) and produces metallurgical coke (Walter Coke). In December 2008, the Company announced the closure of its Homebuilding segment and on April17, 2009, the Company spun off its Financing segment. As a result of the closure and spin-off, amounts previously reported in those segments are presented as discontinued operations for all periods presented. See Note3. These actions have completed the transformation of Walter Industries,Inc. from a diversified corporation to a pure play natural resources and energy company, now renamed Walter Energy,Inc. Prior to the first quarter of 2009, the Company's underground and surface coal mining operations were reported together as the Natural Resources segment. Beginning with the first quarter of 2009, the Company revised its reportable segments to separate the Natural Resources segment into Underground Mining and Surface Mining. Underground Mining includes the Company's underground hard coking coal operations from the No.4 and No.7 mines and its natural gas operations. Surface Mining includes the Company's surface coal mining operations for Tuscaloosa Resources,Inc. ("TRI") and Taft Coal Sales Associates,Inc. ("Taft") as well as Walter Minerals,Inc. (formerly known as United Land Corporation) results. In addition, during the second quarter of 2009 the Company changed the name of its metallurgical coke manufacturer from Sloss Industries Corporation to Walter Coke,Inc. See Note16 for segment information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Summary of Significant Accounting Policies | NOTE 2Summary of Significant Accounting Policies Basis of Presentation Historically, the Company has prepared its balance sheet on an unclassified basis because the operating cycle of Financing exceeded one year. As a result of the spin-off of this business, the assets and liabilities for continuing operations are now presented on a classified basis for all periods presented to reflect the Company's current operating cycle. The assets and liabilities of discontinued operations attributable to Kodiak and Homebuilding have also been restated to reflect their one-year operating cycle. The assets and liabilities of discontinued operations attributable to Financing continue to be presented on an unclassified basis. The consolidated financial statements include the accounts of all wholly and majority owned subsidiaries. Preparation of financial statements in accordance with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. All significant intercompany balances and transactions have been eliminated. The notes to consolidated financial statements, except where otherwise indicated, relate to continuing operations only. Concentrations of Credit Risk and Major Customers The Company's principal line of business is the mining and marketing of its metallurgical coal to foreign steel and coke producers. In 2009, approximately 75% of the Company's net sales and revenues were derived from coal shipments to these customers, located primarily in Europe and South America. At December31, 2009 and 2008, approximately 57% and 60%, respectively, of the Company's receivables, net, related to these customers. Furthermore, sales to a single customer represented 13.7%, 8.1% and 8.1% of consolidated net sales and revenues in 2009, 2008 and 2007, respectively, while sales to another single customer represented 12.6%, 10.4% and 8.9% of consolidated net sales and revenues in 2009, 2008 and 2007, respectively. Credit is extended based on an evaluation of the customer's financial condition. In some instances, the Company requires letters of credit, cash collateral or prepayment for shipment from its customers to mitigate the risk of loss. These efforts have consistently led to minimal credit losses. Revenue Recognition Underground and Surface MiningRevenue is recognized when the following criteria have been met: persuasive evidence of an arrangement exists; the price to the buyer is fixed or determinable; delivery has occurred; and collectability is reasonably assured. Delivery is considered to have occurred at the time title and risk of loss transfers to the customer. For coal shipments via rail, delivery generally occurs when the railcar is loaded. For coal shipments via ocean vessel, delivery generally occurs when the vessel is loaded. For the Company's natural gas operations, delivery occurs when the gas has been transferred to the customer's pipeline. Walter CokeFor products shipped via rail or truck, revenue is recognized when title and risk of loss transfer to the cu |
Discontinued Operations & Acqui
Discontinued Operations & Acquisitions | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Discontinued Operations & Acquisitions | NOTE 3Discontinued Operations Acquisitions Spin-off of FinancingOn April17, 2009, the Company completed the spin-off of its Financing business and the merger of that business with Hanover Capital Mortgage Holdings,Inc. to create Walter Investment Management Corp. ("Walter Investment"), which operates as a publicly traded real estate investment trust. The subsidiaries and assets that Walter Investment owned at the time of the spin-off included all assets of Financing except for those associated with the workers' compensation program and various other run-off insurance programs within Cardem InsuranceCo.,Ltd. As a result of the distribution, the Company no longer has any ownership interest in Walter Investment. The Company and Walter Investment entered into several agreements to facilitate the spin-off. These include the following: (1)A Transition Services Agreement to provide certain services to each other, including tax, accounting, human resources and communication for a limited duration, in all cases not expected to exceed 24months, with the precise term of each service set forth in the Transition Services Agreement; (2)A Tax Separation Agreement that sets forth the rights and obligations of the Company and Walter Investment with respect to taxes and other liabilities that could be imposed if Walter Investment is required to pay an additional dividend in order to maintain its REIT status for U.S. federal income tax purposes. If that need arises, the Company will be required to reimburse Walter Investment for a portion of such additional dividend; (3)A Joint Litigation Agreement that allocates responsibilities for pending and future litigation and claims, allocates insurance coverages and third-party indemnification rights, where appropriate, and provides that each party should cooperate with each other regarding such litigation claims and rights on a going forward basis, and; (4)A Trademark Licensing Agreement whereby the Company granted Walter Investment a paid-up, perpetual, non-exclusive, non-transferable (except to affiliates) license to use certain variations and/or acronyms of the "Walter", "Best Insurors" and "Mid-State" names in connection with mortgage finance, lending, insurance and reinsurance services, and financial services related thereto, in the United States. In order to facilitate the successful spin-off of Financing, the Company entered into a Support Letter of Credit Agreement (the "L/C Agreement") and a revolving credit facility agreement with Walter Investment and certain of its subsidiaries on April20, 2009. The L/C Agreement provides Walter Investments' financial lending institutions with a stand-by letter of credit totaling $15.7million. This stand-by letter of credit was issued under the Company's 2005 Walter Credit Agreement and enabled Walter Investment to obtain third-party financing under a revolving credit agreement. The maximum amount of future payments that the Company could be required to make under the L/C Agreement is $15.7million, plus any unreimbursed fees, in the event of a default. To date, no event of default has occurred that would trigger a draw under the stand-by letter of credit. The |
Restructuring and Impairments
Restructuring and Impairments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Restructuring and Impairments | NOTE 4Restructuring and Impairments Walter CokeIn December 2009, the Company closed its fiber plant at its Walter Coke subsidiary. The fiber plant produced approximately 100,000 tons of various slag wool fiber products annually. The closure resulted in the Company recording a restructuring and impairment charge of $3.6million, of which $2.2million related to the impairment of property, plant and equipment and $1.4million related to severance and other obligations. In addition, Walter Coke recorded a charge of $0.9million included in cost of sales in the 2009 statement of operations related to inventory write-downs. Approximately $0.1million of cash was used in 2009 for the severance and other obligations, with the remainder expected to be expended in 2010. The property, plant and equipment of the fiber plant was written down to fair value of $0.2million, which was estimated using comparable transactions of similar assets, less the cost to dispose of the assets. The following table summarizes the impairment and restructuring activity for the year ended December31, 2009 (in thousands): Balance at January1, 2009 Restructuring and Impairment Charges Cash Payments Asset Impairments Balance at December31, 2009 Impairment of property, plant and equipment $ $ 2,153 $ $ (2,153 ) $ Severance and other obligations 1,448 (60 ) 1,388 $ $ 3,601 $ (60 ) $ (2,153 ) $ 1,388 Surface MiningAs previously discussed in Note3, the Company acquired Taft in September 2008. A significant portion of the purchase price was allocated to the mineral interests, valued at $44.0million. The initial value assigned to the mineral interests was determined using a discounted cash flow approach incorporating market-based assumptions when available. One of the significant assumptions used to determine the discounted cash flows associated with the minerals was the market price of similar coals at the date of acquisition and the future market pricing forecasts that existed as of that date. Subsequent to September2, 2008, the market price and future forecasted market prices for similar coals dropped significantly. As such, the Company performed an impairment test of the mineral interests. The results of the impairment test indicated that there was an asset impairment and, as a result, the Company recorded a $32.4million impairment charge in the 2008 fourth quarter. |
Equity Award Plans
Equity Award Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Equity Award Plans | NOTE 5Equity Award Plans The stockholders of the Company approved the 2002 Long-Term Incentive Award Plan (the "2002 Plan"), under which an aggregate of 4.3million shares of the Company's common stock, as restated to reflect the modification for the Financing spin-off, have been reserved for grant and issuance of incentive and non-qualified stock options, stock appreciation rights and stock awards. Under the Long-Term Incentive Stock Plan approved by stockholders in October 1995 (the "1995 Plan") and amended in September 1997, an aggregate of 6.0million shares of the Company's common stock were reserved for the grant and issuance of incentive and non-qualified stock options, stock appreciation rights and stock awards. However, the 1995 Plan expired in 2005 and, therefore, no further grants will be issued under this plan. Under both plans (collectively, the "Equity Award Plans"), an option becomes exercisable at such times and in such installments as set by the Compensation Committee of the Board of Directors (generally, vesting occurs over three years in equal annual increments), but no option will be exercisable after the tenth anniversary of the date on which it is granted. Under both plans, the Company may issue restricted stock units. The Company has issued restricted stock units which fully vest generally after three years of continuous employment or over three years in equal annual increments. In connection with the spin-off of Financing, and in accordance with the anti-dilution provisions contained within the Equity Award Plans, the Company modified the equity awards outstanding at April17, 2009, the spin-off date. The modifications were structured to maintain the intrinsic value for the employee. Employees transferring to Walter Investment were given the choice to maintain their equity awards in the Company's stock or convert them to equity awards in Walter Investment stock. All equity awards in the Company's stock held by employees transferring to Walter Investment who elected to convert their awards were cancelled and replaced with Walter Investment awards. Similarly, all equity awards held by employees transferring to Walter Investment who elected to maintain their awards in the Company's stock as well as awards held by employees remaining with the Company were cancelled and replaced by new equity awards with similar terms such that the intrinsic value immediately after the spin-off was the same as the intrinsic value immediately prior to the spin-off. There were no modifications to any other terms of the awards. These modifications did not yield any incremental compensation cost. For the years ended December31, 2009, 2008 and 2007, the Company recorded stock-based compensation expense for its continuing operations related to equity awards totaling approximately $6.7million, $5.9million, and $7.7million, respectively. These amounts are included in selling, general and administrative expenses and have been allocated to the reportable segments. The total income tax benefits in the Company's continuing operations recognized in the statements of operations for share-based compensation arrangements were $2.4million, |
Receivables
Receivables | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Receivables | NOTE 6Receivables Receivables are summarized as follows (in thousands): December31, 2009 2008 Trade receivables $ 62,379 $ 110,559 Other receivables 10,748 32,707 Less: Allowance for losses (2,627 ) (2,843 ) Receivables, net $ 70,500 $ 140,423 At December31, 2009 and 2008, other receivables includes $6.2million and $29.4million, respectively, relating to a Black Lung Excise Tax refund claim. |
Inventories
Inventories | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Inventories | NOTE 7Inventories Inventories are summarized as follows (in thousands): December31, 2009 2008 Finished goods $ 73,582 $ 45,642 Raw materials and supplies 25,696 29,530 Total inventories $ 99,278 $ 75,172 |
Property, Plant and Equipment
Property, Plant and Equipment | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Property, Plant and Equipment | NOTE 8Property, Plant and Equipment Property, plant and equipment are summarized as follows (in thousands): December31, 2009 2008 Land $ 33,046 $ 32,607 Land improvements 12,246 2,623 Mineral interests 34,569 34,069 Buildings and leasehold improvements 26,762 26,450 Mine development costs 83,353 99,400 Machinery and equipment 666,482 559,744 Construction in progress 52,929 74,434 Total 909,387 829,327 Less: Accumulated depreciation (386,456 ) (324,742 ) Net $ 522,931 $ 504,585 |
Income Taxes
Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Income Taxes | NOTE 9Income Taxes Income tax expense (benefit) applicable to continuing operations consists of the following (in thousands): For the years ended December31, 2009 2008 2007 Current Deferred Total Current Deferred Total Current Deferred Total Federal $ 3,423 $ 35,515 $ 38,938 $ (2,297 ) $ 90,850 $ 88,553 $ 33,131 $ (2,484 ) $ 30,647 State 9,683 (6,477 ) 3,206 14,524 (1,480 ) 13,044 10,873 (38 ) 10,835 Total $ 13,106 $ 29,038 $ 42,144 $ 12,227 $ 89,370 $ 101,597 $ 44,004 $ (2,522 ) $ 41,482 The income tax expense (benefit) at the Company's effective tax rate differed from the statutory rate as follows (in thousands): For the years ended December31, 2009 2008 2007 Income from continuing operations before income tax expense $ 183,994 $ 332,789 $ 139,709 Tax expense at statutory tax rate of 35% $ 64,398 $ 116,476 $ 48,898 Effect of: Excess depletion benefit (18,693 ) (20,837 ) (12,897 ) State and local income tax, net of federal effect 2,158 9,294 6,653 Other (5,719 ) (3,336 ) (1,172 ) Tax expense recognized $ 42,144 $ 101,597 $ 41,482 Deferred tax assets (liabilities) related to the following (in thousands): December31, 2009 2008 Deferred tax assets: Net operating loss/credit carryforwards $ 83,097 $ 102,093 Accrued expenses 18,593 16,948 Contingent interest 31,695 25,891 Postretirement benefits other than pensions 199,151 144,671 Pension obligations 25,226 27,124 Other 31,168 38,665 Total deferred tax assets 388,930 355,392 Deferred tax liabilities: Prepaid expenses (8,880 ) (18,113 ) Depreciation (91,136 ) (73,208 ) Total deferred tax liabilities (100,016 ) (91,321 ) Net deferred tax asset $ 288,914 $ 264,071 Deferred taxes are classified as follows: Current deferred income tax asset, net $ 110,576 $ 84,669 Noncurrent deferred income tax asset, net 178,338 179,402 Net deferred tax asset $ 288,914 $ 264,071 The Company has a federal net operating loss carryforward of approximately $223.0million that expires beginning in 2028. This carryforward benefit arose primarily due to a worthless stock deduction resulting from the deemed liquidation of the Company's Homebuilding business on December31, 2008. The Company also has various state net operating loss carryforwards that expire beginning in 2022. The Company believes the losses will be utilized within the carryforward periods due to expected profitability of operations and tax planning strategies. The Company files income tax returns in the U.S. and in various |
Debt
Debt | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Debt | NOTE 10Debt Debt consisted of the following (in thousands): December31, Weighted Average Stated Interest Rate At December31, 2009 Estimated Final Maturity 2009 2008 Other debt: 2005 Walter term loan(1) $ 137,498 $ 138,934 2.49% 2012 2005 Walter revolving credit facility 40,000 2012 Other(2) 39,000 46,451 Various Various Total debt 176,498 225,385 Less current debt (13,351 ) (13,480 ) Total long-term debt $ 163,147 $ 211,905 The Company's debt repayment schedule, excluding interest, as of December31, 2009 is as follows (in thousands): Payments Due 2010 2011 2012 2013 2014 Thereafter 2005 Walter term loan $ 1,436 $ 1,436 $ 134,626 Other debt 11,915 8,042 8,617 8,643 1,783 $ 13,351 $ 9,478 $ 143,243 $ 8,643 $ 1,783 (1) In June 2008, the Company used some of the net proceeds from a stock offering to repay $77.9million on the outstanding term loan. See note below. (2) This balance includes a one-year property insurance financing agreement at a fixed rate of 3.9%, an equipment financing agreement and capital lease obligations. 2005 Walter Credit Agreement In 2005, the Company entered into a $675.0million credit agreement ("2005 Walter Credit Agreement") which included, prior to its amendments, (1)an amortizing term loan facility with an initial aggregate principal amount of $450.0million, $137.5million and $138.9million of which was outstanding as of December31, 2009 and 2008 with weighted average interest rates of 2.49% and 3.59%, respectively, and (2)an initial $225.0million revolving credit facility ("Revolver") which provides for loans and letters of credit. The Company's obligations under the 2005 Walter Credit Agreement ("Credit Agreement") are secured by substantially all of the Company's and guarantors' real, personal and intellectual property, and the Company's ownership interest in the guarantors. The term loan requires quarterly principal payments of $0.4million through October3, 2012, at which time the remaining outstanding principal is due. In 2008, the Company amended the Credit Agreement to increase the Revolver to $475.0million. Available funds of $214.8million were used to repay principal, interest and fees and terminate certain debt related to the Financing segment prior to spin-off. The amendment also increased the interest rate on the Revolver and the term loan to as much as LIBOR plus 300 basis points. The commitment fee on the unused portion of the Revolver also increased from 0.375% per year to 0.5% per year. In addition, the amended 2005 Walter Credit Agreement contained a reducing revolver commitment feature, where the total available revolver commitment would not exceed $400.0million at March31, 2009, $350.0million at June30, 2009, $300.0million at September30, 2009, and $250.0mill |
Pension and Other Employee Bene
Pension and Other Employee Benefits | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Pension and Other Employee Benefits | NOTE 11Pension and Other Employee Benefits The Company has various pension and profit sharing plans covering substantially all employees. In addition to its own pension plans, the Company contributes to certain multi-employer plans. The Company funds its retirement and employee benefit plans in accordance with the requirements of the plans and, where applicable, in amounts sufficient to satisfy the "Minimum Funding Standards" of the Employee Retirement Income Security Act of 1974 ("ERISA"). The plans provide benefits based on years of service and compensation or at stated amounts for each year of service. The Company also provides certain postretirement benefits other than pensions, primarily healthcare, to eligible retirees. The Company's postretirement benefit plans are not funded. New salaried employees have been ineligible to participate in postretirement healthcare benefits since May 2000. Effective January1, 2003, the Company placed a monthly cap on Company contributions for postretirement healthcare coverage. The Company is required to measure plan assets and liabilities as of the fiscal year-end reporting date. Previously, the Company used a September30 measurement date and, in 2008, was required to change its valuation measurement date to December31. As a result of the change in valuation date during 2008, plan year 2008 consisted of fifteen months beginning October1, 2007 and ending December31, 2008. Plan year 2009 consisted of twelve months beginning January1, 2009 and ending December31, 2009. As of December31, 2009 and 2008, respectively, all of our pension plans have obligations that exceed plan assets. The amounts recognized for all of the Company's pension and postretirement benefit plans are as follows: Pension Benefits Other Benefits December31, 2009 December31, 2008 December31, 2009 December31, 2008 (in thousands) Accumulated benefit obligation $ 212,567 $ 185,207 $ 452,659 $ 368,308 Change in projected benefit obligation: Benefit obligation at beginning of year $ 198,290 $ 189,547 $ 368,308 $ 338,291 Adjustments due to change in measurement date 4,006 6,120 Service cost 4,154 4,010 3,049 2,993 Interest cost 12,458 12,013 23,294 21,526 Amendments 15 Actuarial loss 21,613 962 80,941 22,033 Addition of plan, Taft 2,090 Benefits paid (9,935 ) (12,263 ) (22,933 ) (24,618 ) Special termination benefits (127 ) Benefit obligation at end of year $ 226,580 $ 198,290 $ 452,659 $ 368,308 Change in plan assets: Fair value of plan assets at beginning of year $ 128,270 $ 163,841 $ $ Actual gain (loss) on plan assets 26,933 (47,049 ) Employer contributions 15,676 23,741 22,933 24,618 Benefits paid (9,935 ) (12,263 ) (22,933 ) (24,618 ) Fair value of plan assets at end of year $ 160,944 |
Stockholders' Equity
Stockholders' Equity | |
1/1/2009 - 12/31/2009
USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Stockholders' Equity | NOTE 12Stockholders' Equity On June16, 2008, the Company completed a public offering of 3,220,000 shares of its common stock at a price of $90.75 per share. The Company received $280.5million of net proceeds from this offering, after deducting underwriting discounts and offering expenses. The Company used the net proceeds from this offering to repay $280.4million of the borrowings outstanding under the Company's 2005 Walter Credit Agreement. On July31, 2008, the Board of Directors approved an increase in the Company's regular quarterly dividend rate from $0.05 per common share to $0.10 per common share. During 2008, the Company repurchased 354,256 shares under its $25.0million share repurchase program, thereby fulfilling the program's authorized allotment, which was authorized by the Company's Board of Directors on August13, 2007. On September26, 2008, the Board of Directors approved a new $50.0million share repurchase program, which was intended to replace the previously authorized $25.0million share repurchase program. Through December31, 2008, the Company had repurchased 1,276,743 shares for $45.2million under this program. On December31, 2008, the Company announced that its Board of Directors had authorized a $50.0million expansion of the Company's share repurchase program. The new program began on January1, 2009 and purchases are based on liquidity and market conditions. Through December31, 2009, a total of 2,747,659 shares have been repurchased for $79.4million under the $100.0million program. During the period January1, 2010 through February23, 2010, the Company repurchased an additional 69,679 shares for $4.7million, leaving $15.9million available for future purchases. On April23, 2009, shareholders voted to grant the Company the authority to issue 20,000,000 shares of Preferred Stock, par value $0.01 per share. The Board believes the ability to issue preferred stock is necessary in order to provide the Company with greater flexibility in structuring future capital raising transactions, acquisitions and/or joint ventures, including taking advantage of financing techniques that receive favorable treatment from credit rating agencies. No preferred shares have been issued. |
Net Income
Net Income (Loss) Per Share | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Net Income (Loss) Per Share | NOTE 13Net Income (Loss) Per Share A reconciliation of the basic and diluted net income (loss) per share computations for the years ended December31, 2009, 2008 and 2007 is as follows (in thousands, except per share data): For the years ended December31, 2009 2008 2007 Basic Diluted Basic Diluted Basic Diluted Numerator: Income from continuing operations $ 141,850 $ 141,850 $ 231,192 $ 231,192 $ 98,227 $ 98,227 Effect of dilutive securities: Interest related to 3.75% convertible senior subordinated notes, net of tax(a) 19 $ 141,850 $ 141,850 $ 231,192 $ 231,192 $ 98,227 $ 98,246 Income (loss) from discontinued operations $ (4,692 ) $ (4,692 ) $ 115,388 $ 115,388 $ 13,772 $ 13,772 Denominator: Average number of common shares outstanding 53,076 53,076 53,791 53,791 52,016 52,016 Effect of dilutive securities Stock awards(b) 743 794 390 3.75% convertible senior subordinated notes(a) 84 53,076 53,819 53,791 54,585 52,016 52,490 Income from continuing operations $ 2.67 $ 2.64 $ 4.30 $ 4.24 $ 1.89 $ 1.87 Income (loss) from discontinued operations (0.09 ) (0.09 ) 2.14 2.11 0.26 0.26 Net income per share $ 2.58 $ 2.55 $ 6.44 $ 6.35 $ 2.15 $ 2.13 (a) The numerator represents the weighted-average interest, net of tax, and the denominator represents the weighted-average shares issuable upon conversion related to the Company's 3.75% contingent convertible senior subordinated notes. (b) Represents the weighted average number of shares of common stock issuable on the exercise of dilutive employee stock options and restricted stock units less the number of shares of common stock which could have been purchased with the proceeds from the exercise of such stock awards. These purchases were assumed to have been made at the average market price of the common stock for the period. Weighted average number of stock options and restricted stock units outstanding for the year ended December31, 2009 of 150,907, for the year ended December31, 2008 of 87,673 and for the year ended December31, 2007 of 613,128 were excluded because their effect would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Commitments and Contingencies | NOTE 14Commitments and Contingencies Income Tax Litigation The Company is currently engaged in litigation with the IRS with regard to certain federal income tax issues; see Note9 for a more complete explanation. Environmental Matters The Company is subject to a wide variety of laws and regulations concerning the protection of the environment, both with respect to the construction and operation of its plants, mines and other facilities and with respect to remediating environmental conditions that may exist at its own and other properties. The Company believes that it is in substantial compliance with federal, state and local environmental laws and regulations. The Company accrues for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and can be reasonably estimated. Walter Coke entered into a decree order in 1989 relative to a Resource Conservation Recovery Act ("RCRA") compliance program mandated by the EPA. A RCRA Facility Investigation ("RFI") Work Plan was prepared which proposed investigative tasks to assess the presence of contamination at the Walter Coke facility. A work plan was approved in 1994 and the PhaseI investigations were conducted and completed between 1995 and 1999. PhaseII investigations for the Chemical Plant/Coke Plant and Biological Treatment Facility and Sewers/Land Disposal Areas at the Walter Coke facility were performed in 2000 and 2001 and are complete. At the end of 2004, the EPA re-directed Walter Coke's RFI efforts toward completion of the Environmental Indicator ("EI") determinations for the Current Human Exposures. This EI effort was completed to assist the EPA in meeting goals set by the Government Performance Results Act ("GPRA") for RCRA by 2005. Walter Coke implemented the approved EI sampling plan in April 2005. The EPA approved/finalized the EI determinations for Walter Coke's Birmingham facility in September 2005. In an effort to refocus the RFI, the EPA approved technical comments on the PhaseII RFI report and the report submitted as part of the EI effort. A PhaseIII work plan was submitted to the EPA during the first quarter of 2007. The EPA commented on the PhaseIII plan and Walter Coke has responded. Subsequently, a meeting was held with the EPA during the third quarter of 2007 with the objective of finalization of the PhaseIII plan. However, additional requests by EPA expanded the scope of the project which required additional sampling and testing. In January 2008, as a follow-up to the EI determination, the EPA requested that Walter Coke perform soil sampling and testing in the neighborhoods surrounding its facility. The results of this sampling and testing was submitted to the EPA for review in December 2009. The Company has incurred costs to investigate the presence of contamination at the Walter Coke facility and to define remediation actions to address this environmental liability in accordance with the agreements reached with the EPA per the findings in the PhaseI and PhaseII investigations and in conjunction with the PhaseIII work plan. The Company continues to incur costs related to defining remediation ef |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Fair Value of Financial Instruments | NOTE 15Fair Value of Financial Instruments The following methods and assumptions were used to estimate fair value disclosures: Cash and cash equivalents, restricted short-term investments, receivables and accounts payable.The carrying amounts reported in the balance sheet approximate fair value. Debt.The Company's term loan in the amount of $137.5million and $138.9million at December31, 2009 and 2008, respectively, is carried at cost. The estimated fair value of the Company's term loan was $134.1million and $104.2million at December31, 2009 and 2008, respectively, based on similar transactions and yields in an active market for similarly rated debt. The Company's outstanding borrowings under its revolving credit facility of $0.0million and $40.0million at December31, 2009 and 2008, respectively, is carried at cost. The estimated fair value of the revolver debt at December31, 2008 was $28.4million based on similar transactions and yields in an active market for similarly rated companies. The Company's equipment financing debt had a balance (carried at cost) of $26.6million at December31, 2009 and $31.9million at December31, 2008. The estimated fair value of this equipment financing debt as of December31, 2009 and 2008 is $26.0million and $23.9million, respectively, based on comparable equipment financing transactions for similarly rated companies based on similar transactions. The Company's short term borrowing to finance the premium payments on certain of its property insurance was $4.3million and $4.7million at December31, 2009 and December31, 2008, respectively, and is carried at cost. The carrying amounts reported on the balance sheet on this short term financing approximate fair value. Interest rate hedge.On December30, 2008, the Company entered into an interest rate hedge agreement with a notional value of $31.5million. The objective of the hedge was to protect against the variability in expected future cash flows attributable to changes in the benchmark interest rate related to 62 of the 64monthly interest payments required under the equipment financing arrangement for a new longwall shield system entered into on October21, 2008. The interest rate on the debt is subject to change due to fluctuations in the benchmark interest rate of 1-month LIBOR. The structure of the hedge is a 62month amortizing interest rate swap based on a 5.59% fixed rate with fixed rate and floating rate payment dates effective February1, 2009. The hedge will be settled upon maturity and is being accounted for as a cash flow hedge. Changes in the fair value of the hedge that take place through the date of maturity will be recorded in accumulated other comprehensive income (loss). This interest rate hedge had an immaterial fair value at both December31, 2009 and December31, 2008. During 2009, 2008 and 2007, interest rate hedge unrealized gains (losses) recorded in accumulated other comprehensive income, as well as realized gains (losses) recorded in net income were immaterial. Commodity hedges.On October20, 2009, the Company entered into a swap contract to hedge 1.6million mmbtus of natural gas, or approximately 24% of forecasted 2010 |
Segment Analysis
Segment Analysis | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Segment Analysis | NOTE 16Segment Analysis The Company's reportable segments are strategic business units that offer different products and services and have separate management teams. The business units have been aggregated into four reportable segments: Underground Mining, Surface Mining, Walter Coke and Other. The Underground Mining segment is comprised of metallurgical coal mining, natural gas operations and royalties. The Surface Mining segment is comprised of coal mining and land sales generated by certain land holdings. Walter Coke manufactures foundry and furnace coke. The Other segment includes corporate expenses. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on operating earnings of the respective business segments. Summarized financial information concerning the Company's reportable segments is shown in the following tables (in thousands): For the years ended December31, 2009 2008 2007 Sales and revenues: Underground Mining $ 787,325 $ 911,067 $ 614,920 Surface Mining 99,556 72,711 26,008 Walter Coke 101,233 206,230 134,918 Other 2,469 3,424 4,137 Consolidating eliminations of intersegment activity(a) (23,756 ) (43,748 ) (5,188 ) Net sales and revenues(b) $ 966,827 $ 1,149,684 $ 774,795 Segment operating income (loss):(c)(d) Underground Mining $ 208,189 $ 328,071 $ 158,279 Surface Mining 24,045 (23,397 ) 7,242 Walter Coke (1,338 ) 60,672 11,861 Other (29,086 ) (22,825 ) (19,574 ) Consolidating eliminations of intersegment activity 360 (1,314 ) (1,814 ) Operating income 202,170 341,207 155,994 Less interest expense, net (18,176 ) (8,418 ) (16,285 ) Income from continuing operations before income tax expense 183,994 332,789 139,709 Income tax expense (42,144 ) (101,597 ) (41,482 ) Income from continuing operations $ 141,850 $ 231,192 $ 98,227 Depreciation: Underground Mining $ 59,393 $ 43,149 $ 33,157 Surface Mining 8,574 8,327 1,222 Walter Coke 4,566 4,152 3,822 Other 406 914 966 Consolidating eliminations of intersegment activity 67 Total $ 72,939 $ 56,542 $ 39,234 Capital expenditures: Underground Mining $ 74,625 $ 125,789 $ 139,298 Surface Mining 16,210 8,626 912 Walter Coke 4,837 6,904 7,019 Other 626 308 327 Total $ 96,298 $ 141,627 $ 147,556 Identifiable assets: Underground Mining $ 662,153 $ 687,218 $ 544,846 Surface Mining 54,593 84,713 46,194 Walter Coke 83,492 70,472 58,270 Other 443,920 353,292 |
Related Party Transactions
Related Party Transactions | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Related Party Transactions | NOTE 17Related Party Transactions The Company owns a 50% interest in the joint venture Black Warrior Methane ("BWM"), which is accounted for under the proportionate consolidation method. The Company has granted the rights to produce and sell methane gas from its coal mines to BWM. The Company also supplies labor to BWM and incurs costs, including property and liability insurance, to support the joint venture. The Company charges the joint venture for such costs on a monthly basis. These charges for 2009, 2008 and 2007 were $2.5million, $2.0million and $2.1million, respectively. |
Accounting Pronouncements Not Y
Accounting Pronouncements Not Yet Adopted | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Accounting Pronouncements Not Yet Adopted | NOTE 18Accounting Pronouncements Not Yet Adopted In January 2010, the FASB amended its guidance in ASC Topic 932 "Extractive Activities-Oil and Gas," expanding the definition of oil and gas producing activities to include the extraction of saleable hydrocarbons from oil sands, shale and coalbeds, clarifying that entities' equity method investments must be considered in oil and gas activities, and requiring new disclosures. This updated guidance is generally effective for annual periods ending on or after December31, 2009, but for entities becoming subject to this standard because of the change in the definition of significant oil and gas producing activities, disclosure is required for periods beginning after December31, 2009. Since the Company is subject to this guidance because it extracts hydrocarbons from coalbeds, disclosures under ASC Topic 932 will be provided for its 2010 reporting period, as required. The Company does not expect the effect of applying the amendment to have a material effect on our operating results or financial condition. |
DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION (USD $) | |||
In Billions, except Share data | 12 Months Ended
Dec. 31, 2009 | Jan. 31, 2010
| Jun. 30, 2009
|
Document and Entity Information | |||
Entity Registrant Name | Walter Energy, Inc. | ||
Entity Central Index Key | 0000837173 | ||
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 | 1.9 | ||
Entity Common Stock, Shares Outstanding | 53,296,211 |