Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Walter Energy, Inc. | ' | ' |
Entity Central Index Key | '0000837173 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
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 | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $650.70 |
Entity Common Stock, Shares Outstanding | ' | 62,580,470 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $260,818 | $116,601 |
Receivables, net | 281,763 | 256,967 |
Inventories | 312,647 | 306,018 |
Deferred income taxes | 37,067 | 58,526 |
Prepaid expenses | 39,022 | 53,776 |
Other current assets | 18,031 | 23,928 |
Total current assets | 949,348 | 815,816 |
Mineral interests, net | 2,905,002 | 2,965,557 |
Property, plant and equipment, net | 1,637,552 | 1,732,131 |
Deferred income taxes | ' | 160,422 |
Other long-term assets | 98,958 | 94,494 |
Total assets | 5,590,860 | 5,768,420 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Current debt | 9,210 | 18,793 |
Accounts payable | 92,712 | 114,913 |
Accrued expenses | 133,870 | 184,875 |
Accumulated other postretirement benefits obligation | 30,036 | 29,200 |
Other current liabilities | 214,073 | 206,473 |
Total current liabilities | 479,901 | 554,254 |
Long-term debt | 2,769,622 | 2,397,372 |
Accumulated other postretirement benefits obligation | 570,712 | 633,264 |
Deferred income taxes | 822,867 | 921,687 |
Other long-term liabilities | 195,064 | 251,272 |
Total liabilities | 4,838,166 | 4,757,849 |
Commitments and Contingencies (Note 18) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.01 par value per share: Authorized-200,000,000 shares; issued-62,577,924 and 62,521,300 shares, respectively | 626 | 625 |
Capital in excess of par value | 1,613,256 | 1,628,244 |
Accumulated deficit | -698,930 | -347,448 |
Accumulated other comprehensive loss | -162,258 | -270,850 |
Total stockholders' equity | 752,694 | 1,010,571 |
Total liabilities and stockholders' equity | $5,590,860 | $5,768,420 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Common stock, par value per share (in dollars per share) | $0.01 | $0.01 |
Common stock, Authorized shares | 200,000,000 | 200,000,000 |
Common stock, issued shares | 62,577,924 | 62,521,300 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | ' | ' |
Sales | $1,836,343 | $2,381,760 |
Miscellaneous income | 24,288 | 18,135 |
Total revenues | 1,860,631 | 2,399,895 |
Costs and expenses: | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 1,558,305 | 1,796,991 |
Depreciation and depletion | 311,514 | 316,232 |
Selling, general and administrative | 99,994 | 133,467 |
Other postretirement benefits | 58,900 | 52,852 |
Restructuring and asset impairments | 2,883 | 49,070 |
Goodwill impairment | ' | 1,064,409 |
Total costs and expenses | 2,031,596 | 3,413,021 |
Operating income (loss) | -170,965 | -1,013,126 |
Interest expense | -233,854 | -139,356 |
Interest income | 1,103 | 804 |
Other income (loss), net | 2,875 | -13,081 |
Income (loss) from continuing operations before income tax expense (benefit) | -400,841 | -1,164,759 |
Income tax expense (benefit) | -41,838 | -99,204 |
Income (loss) from continuing operations | -359,003 | -1,065,555 |
Income from discontinued operations | ' | 5,180 |
Net income (loss) | ($359,003) | ($1,060,375) |
Basic income (loss) per share: | ' | ' |
Income (loss) from continuing operations (in dollars per share) | ($5.74) | ($17.04) |
Income from discontinued operations (in dollars per share) | ' | $0.08 |
Net income (loss) (in dollars per share) | ($5.74) | ($16.96) |
Diluted income (loss) per share: | ' | ' |
Income (loss) from continuing operations (in dollars per share) | ($5.74) | ($17.04) |
Income from discontinued operations (in dollars per share) | ' | $0.08 |
Net income (loss) (in dollars per share) | ($5.74) | ($16.96) |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net income (loss) | ($359,003) | ($1,060,375) | $363,598 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Change in pension and other postretirement benefit plans (net of tax: $60,013, $23,330, and $33,179, respectively) | 100,892 | -40,501 | -53,224 |
Change in unrealized loss on hedges (net of tax: $1,458, $1,985, and $367, respectively) | 2,524 | -3,416 | -716 |
Change in foreign currency translation adjustment | 6,073 | 1,774 | -3,276 |
Change in unrealized gain on investments | -897 | 769 | 128 |
Total other comprehensive income (loss), net of tax | 108,592 | -41,374 | -57,088 |
Total comprehensive income (loss) | ($250,411) | ($1,101,749) | $306,510 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Change in pension and other postretirement benefit plans, tax | $60,013 | $23,330 | $33,179 |
Change in unrealized loss on hedges, tax | $1,458 | $1,985 | $367 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | |
Balance at Dec. 31, 2010 | $595,066,000 | $531,000 | $355,540,000 | $411,383,000 | ($172,388,000) | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | |
Net income (loss) | 363,598,000 | ' | ' | 363,598,000 | ' | |
Other comprehensive income (loss), net of tax | -57,088,000 | ' | ' | ' | -57,088,000 | |
Stock issued upon the exercise of stock options | 8,920,000 | 3,000 | 8,917,000 | ' | ' | |
Dividends paid, $0.27, $0.50 and $0.50 per share for the year ended 2013, 2012 and 2011, respectively | -30,042,000 | ' | ' | -30,042,000 | ' | |
Stock based compensation | 9,384,000 | ' | 9,384,000 | ' | ' | |
Tax effect from stock-based compensation arrangements | 8,929,000 | ' | 8,929,000 | ' | ' | |
Issuance of common stock in connection with the Western Coal Corp. acquisition | 1,224,126,000 | 90,000 | 1,224,036,000 | ' | ' | |
Fair value of replacement stock options and warrants issued in connection with the Western Coal Corp. acquisition | 18,844,000 | ' | 18,844,000 | ' | ' | |
Other | -5,220,000 | ' | -5,220,000 | ' | ' | |
Balance at Dec. 31, 2011 | 2,136,517,000 | 624,000 | 1,620,430,000 | 744,939,000 | -229,476,000 | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | |
Net income (loss) | -1,060,375,000 | ' | ' | -1,060,375,000 | ' | |
Other comprehensive income (loss), net of tax | -41,374,000 | ' | ' | ' | -41,374,000 | |
Stock issued upon the exercise of stock options | 161,000 | 1,000 | 160,000 | ' | ' | |
Dividends paid, $0.27, $0.50 and $0.50 per share for the year ended 2013, 2012 and 2011, respectively | -31,246,000 | ' | ' | -31,246,000 | ' | |
Stock based compensation | 7,437,000 | ' | 7,437,000 | ' | ' | |
Tax effect from stock-based compensation arrangements | 217,000 | ' | 217,000 | ' | ' | |
Other | -766,000 | ' | ' | -766,000 | ' | |
Balance at Dec. 31, 2012 | 1,010,571,000 | 625,000 | 1,628,244,000 | -347,448,000 | -270,850,000 | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | |
Net income (loss) | -359,003,000 | ' | ' | -359,003,000 | ' | |
Other comprehensive income (loss), net of tax | 108,592,000 | ' | ' | ' | 108,592,000 | |
Stock issued upon the exercise of stock options | 279,000 | 1,000 | 278,000 | ' | ' | |
Dividends paid, $0.27, $0.50 and $0.50 per share for the year ended 2013, 2012 and 2011, respectively | [1] | -16,889,000 | ' | -24,703,000 | 7,814,000 | ' |
Stock based compensation | 10,154,000 | ' | 10,154,000 | ' | ' | |
Tax effect from stock-based compensation arrangements | -717,000 | ' | -717,000 | ' | ' | |
Other | -293,000 | ' | ' | -293,000 | ' | |
Balance at Dec. 31, 2013 | $752,694,000 | $626,000 | $1,613,256,000 | ($698,930,000) | ($162,258,000) | |
[1] | An adjustment of $7.8 million was made to Capital in Excess of Par Value in the first quarter of 2013 to correct the classification of the dividend declared in the fourth quarter of 2012. |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ' | ' | ' |
Dividends paid (in dollars per share) | $0.27 | $0.50 | $0.50 |
Adjustment to Capital in Excess of Par Value to correct the classification of the dividend declared | $7.80 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
OPERATING ACTIVITIES | ' | ' | ' |
Net income (loss) | ($359,003,000) | ($1,060,375,000) | $363,598,000 |
Less income from discontinued operations | ' | -5,180,000 | ' |
Income (loss) from continuing operations | -359,003,000 | -1,065,555,000 | 363,598,000 |
Adjustments to reconcile net income (loss) from continuing operations to net cash flows provided by (used in) operating activities: | ' | ' | ' |
Depreciation and depletion | 311,514,000 | 316,232,000 | 230,681,000 |
Deferred income tax provision (benefit) | 16,518,000 | -132,220,000 | 66,803,000 |
Amortization of debt issuance costs | 29,885,000 | 22,606,000 | 21,154,000 |
Tax effect from stock-based compensation arrangements | 717,000 | -217,000 | -8,929,000 |
Gain on initial investment in Western Coal Corp | ' | ' | -20,553,000 |
Impairment charges | ' | 1,107,512,000 | ' |
Other | -3,142,000 | -59,190,000 | 18,764,000 |
Decrease (increase) in current assets, net of effect of business acquisitions: | ' | ' | ' |
Receivables | -24,918,000 | 44,378,000 | -1,605,000 |
Inventories | 3,599,000 | -62,630,000 | -1,885,000 |
Prepaid expenses and other current assets | 13,775,000 | 11,702,000 | 18,929,000 |
Increase (decrease) in current liabilities, net of effect of business acquisitions: | ' | ' | ' |
Accounts payable | -4,117,000 | 34,594,000 | 13,676,000 |
Accrued expenses and other current liabilities | -11,904,000 | 112,695,000 | 6,233,000 |
Cash flows provided by (used in) operating activities | -27,076,000 | 329,907,000 | 706,866,000 |
INVESTING ACTIVITIES | ' | ' | ' |
Additions to property, plant and equipment | -153,896,000 | -391,512,000 | -436,705,000 |
Proceeds from sales of investments | 1,559,000 | 13,239,000 | 27,325,000 |
Other | 1,824,000 | 898,000 | 1,413,000 |
Cash flows used in investing activities | -150,513,000 | -377,375,000 | -2,840,660,000 |
FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from issuance of debt | 897,412,000 | 496,510,000 | 2,350,000,000 |
Borrowings under revolving credit agreement | 764,332,000 | 510,650,000 | 71,259,000 |
Repayments on revolving credit agreement | -764,332,000 | -519,453,000 | -61,259,000 |
Retirements of debt | -515,195,000 | -392,851,000 | -290,630,000 |
Dividends paid | -16,889,000 | -31,246,000 | -30,042,000 |
Tax effect from stock-based compensation arrangements | -717,000 | 217,000 | 8,929,000 |
Proceeds from stock options exercised | 279,000 | 161,000 | 8,920,000 |
Cash paid upon exercise of warrants | ' | -11,535,000 | ' |
Debt issuance costs | -41,588,000 | -24,532,000 | -80,027,000 |
Other | -293,000 | -766,000 | -5,203,000 |
Cash flows provided by financing activities | 323,009,000 | 27,155,000 | 1,971,947,000 |
Cash flows provided by (used in) continuing operations | 145,420,000 | -20,313,000 | -161,847,000 |
CASH FLOWS FROM DISCONTINUED OPERATIONS | ' | ' | ' |
Cash flows provided by investing activities | ' | 9,500,000 | ' |
Effect of foreign exchange rates on cash | -1,203,000 | -1,016,000 | -3,668,000 |
Net increase (decrease) in cash and cash equivalents | 144,217,000 | -11,829,000 | -165,515,000 |
Cash and cash equivalents at beginning of year | 116,601,000 | 128,430,000 | 293,410,000 |
Add: Cash and cash equivalents of discontinued operations at beginning of year | ' | ' | 535,000 |
Net increase (decrease) in cash and cash equivalents | 144,217,000 | -11,829,000 | -165,515,000 |
Cash and cash equivalents at end of year | 260,818,000 | 116,601,000 | 128,430,000 |
SUPPLEMENTAL DISCLOSURES: | ' | ' | ' |
Interest paid, net of capitalized interest | 191,388,000 | 95,642,000 | 63,828,000 |
Income taxes paid, net of refunds | 1,380,000 | 12,433,000 | 69,101,000 |
Western Coal Corp | ' | ' | ' |
INVESTING ACTIVITIES | ' | ' | ' |
Acquisition, net of cash acquired | ' | ' | -2,432,693,000 |
FINANCING ACTIVITIES | ' | ' | ' |
Cash paid upon exercise of warrants | ' | -11,500,000 | ' |
Acquisition of Western Coal in 2011: | ' | ' | ' |
Fair value of assets acquired | ' | ' | 5,164,842,000 |
Less: fair value of liabilities assumed | ' | ' | -1,418,640,000 |
fair value of shares of common stock issued | ' | ' | -1,224,126,000 |
fair value of stock options issued and warrants | ' | ' | -34,765,000 |
gain on initial investment | ' | ' | -20,553,000 |
cash acquired | ' | ' | -34,065,000 |
Net cash paid | ' | ' | $2,432,693,000 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2013 | |
Organization | ' |
Organization | ' |
NOTE 1—Organization | |
Walter Energy, Inc. ("Walter"), together with its consolidated subsidiaries ("the Company"), is a leading producer and exporter of metallurgical coal for the global steel industry from underground and surface mines with mineral reserves located in the United States, Canada and the United Kingdom. The Company also extracts, processes, markets and/or possesses mineral reserves for thermal coal and anthracite coal, as well as produces metallurgical coke and coal bed methane gas. | |
As described in Note 3, on April 1, 2011, the Company completed the acquisition of all the outstanding common shares of Western Coal Corp. ("Western Coal"). The accompanying financial statements include the results of operations of Western Coal since April 1, 2011. The Company reports all of its operations located in the U.S. in the U.S. Operations segment. The Company reports its mining operations located in Northeast British Columbia (Canada) and South Wales (United Kingdom) in the Canadian and U.K. Operations segment. The Other segment primarily consists of unallocated Corporate activities and expenditures. See Note 22 for segment information. | |
During the quarter ended June 30, 2012, the Company sold the Kodiak assets and liabilities for $9.5 million, which resulted in an after-tax gain of $5.2 million. As a result of the sale, Kodiak is presented as discontinued operations for the year ended December 31, 2012. The Kodiak operations did not have a significant impact on either the Company's revenues or operating income for the year ended December 31, 2011 and was not reported as discontinued operations. See Note 6 for discontinued operations information. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
NOTE 2—Summary of Significant Accounting Policies | ||||||||
Basis of Presentation | ||||||||
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. | ||||||||
During the first quarter of 2013, the Company determined that the $7.8 million cash dividend declared and paid in the fourth quarter of 2012 should have been reported as a reduction to the capital in excess of par value component of stockholders' equity rather than retained earnings as the Company was in an accumulated deficit position. In the first quarter of 2013 this amount was reclassified from accumulated deficit to capital in excess of par value. Management has determined that the effect of this classification change was immaterial to prior reporting periods affected as the change had no effect on total stockholders' equity. | ||||||||
During the first quarter of 2013, the Company began to classify certain administrative costs as cost of sales as opposed to selling, general and administrative costs as it determined that these costs are directly supportive of operations. If this classification of these costs had been retrospectively applied, selling, general and administrative expenses for the year ended December 31, 2012 and 2011 would have been reduced by $24.5 million and $26.3 million, respectively, and cost of sales would have been increased by similar amounts. Prior period balances have not been restated as management has determined that the effect of this classification change was immaterial to prior reporting periods. The change in classification has no effect on net income. | ||||||||
During the second quarter of 2013, the Company identified an immaterial cumulative error related to the mineral interest value of Western Coal Corp. The related correction resulted in an $8.4 million dollar reduction to depreciation and depletion expense in the quarter. Prior period balances have not been restated as management has determined that the effect was not material to the financial statements of the current or prior reporting periods. | ||||||||
New Accounting Pronouncements | ||||||||
On January 1, 2013, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The standard requires disclosure of amounts reclassified out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income, either on the face of the Consolidated Statements of Operations or in the notes to the financial statements. The Company has elected disclosure in the Notes to Consolidated Financial Statements as described in Note 20. | ||||||||
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force) ("ASU 2013-05"). The standard applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. ASU 2013-05 is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The Company is currently reviewing the provisions of ASU 2013-05 but does not expect it to have a material effect on the Company's financial condition, results of operations, and cash flows. | ||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of Unrecognized Tax Benefits ("ASU 2013-11"). The standard requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and the entity intends to use the deferred tax asset for that purpose. ASU 2013-11 is effective for public entities with fiscal periods beginning after December 15, 2013. The Company is already in compliance with this standard. | ||||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the applicable reporting period. Due to the inherent uncertainty involved in making estimates, actual results could differ from those estimates. | ||||||||
Concentrations of Credit Risk and Major Customers | ||||||||
The Company's principal line of business is mining and marketing metallurgical coal to foreign steel and coke producers. In 2013 and 2012, approximately 82% and 78%, respectively, of the Company's revenues were derived from coal shipments to these customers, located primarily in Europe, Asia, and South America. At December 31, 2013 and 2012, approximately 44% and 50%, respectively, of the Company's net receivables related to these customers. During the year ended December 31, 2013, ArcelorMittal accounted for $233.5 million or 12.6% of consolidated revenues from sales in our U.S. and Canadian and U.K. Operations. The loss of ArcelorMittal as a customer could have a material adverse effect on our results of operations. During the year ended December 31, 2012, no single customer accounted for 10% or more of consolidated revenues. 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 | ||||||||
Revenue 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 coke shipments via rail or truck, revenue is recognized when title and risk of loss transfer to the customer, generally at the point of shipment. For natural gas sales, delivery occurs when the gas has been transferred to the customer's pipeline. | ||||||||
Shipping and Handling | ||||||||
Costs to ship products to customers are included in cost of sales and amounts billed to customers, if any, to cover shipping and handling are included in sales. | ||||||||
Cash and Cash Equivalents | ||||||||
Cash and cash equivalents include short-term deposits and highly liquid investments that have original maturities of three months or less when purchased and are stated at cost, which approximates fair value. | ||||||||
Allowances for Losses | ||||||||
Allowances for losses on trade and other accounts receivables are based, in large part, upon judgments and estimates of expected losses and specific identification of problem trade accounts and other receivables. Significantly weaker than anticipated industry or economic conditions could impact customers' ability to pay such that actual losses may be greater than the amounts provided for in these allowances. The allowance for losses was $1.3 million and $5.4 million at December 31, 2013 and 2012, respectively. | ||||||||
Inventories | ||||||||
Inventories are valued at the lower of cost or market. For the years ended December 31, 2013, 2012 and 2011, the Company recognized lower of cost or market charges of $126.1 million, $218.8 million, and $20.1 million, respectively, which is included within cost of sales exclusive of depreciation and depletion in the accompanying Consolidated Statements of Operations. The Company recognized lower of cost or market charges of $36.5 million and $17.4 million within depreciation and depletion in the accompanying Consolidated Statements of Operations for the years ended December 31, 2013 and 2012, respectively. The Company's coal inventory costs include labor, supplies, equipment costs, operating overhead, freight, royalties and other related costs. As of December 31, 2013, all of the Company's coal inventories are determined using the first-in, first-out ("FIFO") inventory valuation method. The Company's supplies inventories are determined using the average cost method of accounting. The valuation of coal inventories are subject to estimates due to possible gains and losses resulting from inventory movements from the mine site to storage facilities, inherent inaccuracies in belt scales and aerial surveys used to measure quantities and fluctuations in moisture content. Periodic adjustments to coal tonnages on hand are made for an estimate of coal shortages and overages due to these inherent gains and losses, primarily based on historical results from the results of aerial surveys and periodic coal pile clean-ups. Additionally, the Company evaluates its inventory in terms of excess and obsolete exposures. This evaluation includes such factors as anticipated usage, inventory turnover, inventory levels and ultimate market value. | ||||||||
Owned and Leased Mineral Interests | ||||||||
Costs to obtain coal reserves and lease mineral rights are capitalized based on the fair value at acquisition and depleted using the unit-of-production method over the life of proven and probable reserves. Lease agreements are generally long-term in nature (original terms range from 10 to 50 years) and substantially all of the leases contain provisions that allow for automatic extension of the lease term providing certain requirements are met. Depletion expense is included in depreciation and depletion in the accompanying Consolidated Statements of Operations and was $61.4 million, $99.8 million and $59.3 million for the years ended December 31, 2013, December 31, 2012, and 2011, respectively. | ||||||||
Property, Plant and Equipment | ||||||||
Property, Plant and Equipment | ||||||||
Property, plant and equipment are recorded at cost. Depreciation is recorded principally on the straight-line or units of production methods, whichever is deemed most appropriate over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line method over the lesser of the useful life of the improvement or the remaining lease term. Estimated useful lives used in computing depreciation expense range from three to ten years for machinery and equipment, and from fifteen to thirty years for land improvements and buildings, well life for gas properties and related development, and mine life for mine development costs. Gains and losses upon disposition are reflected in the statement of operations in the period of disposition. Maintenance and repair expenditures are charged to expense as incurred. | ||||||||
Direct internal and external costs to implement computer systems and software are capitalized and are amortized over the estimated useful life of the system or software, generally three to five years, beginning when site installations or module development is complete and ready for its intended use. | ||||||||
Deferred Mine Development | ||||||||
Costs of developing new underground mines and certain underground expansion projects are capitalized. Underground development costs, which are costs incurred to make the coal physically accessible, may include construction permits and licenses, mine design, construction of access roads, main entries, airshafts, roof protection and other facilities. Costs of developing the first pit within a permitted area of a surface mine are capitalized up to the point of coal production attaining a level that would be more than de minimis. A surface mine is defined as the permitted mining area which includes various adjacent pits that share common infrastructure, processing equipment and a common coal reserve. Surface mine development costs include construction costs for entry roads, drilling, blasting and removal of overburden to access the first coal seam. Mine development costs are amortized primarily on a unit-of-production basis over the estimated reserve tons directly benefiting from the capital expenditures. Costs incurred during the production phase of a mine are capitalized into inventory and expensed to cost of sales as the coal is sold. | ||||||||
Capitalized Interest Costs | ||||||||
For the years ended December 31, 2013, 2012 and 2011, the Company capitalized interest costs in the amounts of $1.7 million, $7.7 million and $5.4 million, respectively. | ||||||||
Asset Retirement Obligations | ||||||||
The Company has certain asset retirement obligations, primarily related to reclamation efforts for its mining operations. These obligations are recognized at fair value in the period for which they are to be incurred and the carrying amount of the related long-lived asset is correspondingly increased. Over time, the liability is accreted to its future value. The corresponding asset cost capitalized at inception is amortized over the useful life of the asset. The present values of the Company's asset retirement obligations were $116.4 million and $89.5 million as of December 31, 2013 and 2012, respectively. | ||||||||
Natural Gas Exploration Activities | ||||||||
The Company accounts for its natural gas exploration activities under the successful efforts method of accounting. Costs of exploratory wells are capitalized pending determination of whether the wells found commercially sufficient quantities of proved reserves. If a commercially sufficient quantity of proved reserves is not discovered, any associated previously capitalized exploratory costs associated with the drilling area are expensed. Costs of producing properties and natural gas mineral interests are amortized using the unit-of-production method. Costs incurred to develop proved reserves, including the cost of all development wells and related equipment used in the production of natural gas, are capitalized and amortized using the unit-of-production method. Unit-of-production amortization rates are revised when events and circumstances indicate an adjustment is necessary, but at least once a year, and such revisions are accounted for prospectively as changes in accounting estimates. | ||||||||
Impairment of Long-Lived Assets | ||||||||
Property, plant and equipment and other long-lived assets are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, the Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable. If the carrying amount of an asset or asset groups exceeds its estimated future cash flows, impairment is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset or asset groups. Fair value is generally determined using market quotes, if available, or a discounted cash flow approach. The Company's estimate of future undiscounted cash flows are based on assumptions including long-term metallurgical coal pricing forecasts, anticipated production volumes and mine operating costs for the life of mine or estimated useful life of the asset. Due to market volatility associated with the global coal supply and demand as well as actual mine operating conditions experienced in the years being forecasted, it is possible that the estimate of undiscounted cash flows may change in the near term resulting in a potential need to write down the related assets to fair value, in particular the assets associated with purchased coal reserves. | ||||||||
With the exception of the Alabama North River Mine, which closed earlier than initially anticipated, no long-lived asset impairments resulted from the 2013 review. However, as mentioned above, global metallurgical coal pricing is volatile. In light of this volatility, the Company performed a sensitivity analysis and noted that a sustained price decrease of 5% over and above the prices used in the analysis through the life of all its mines would result in a potential impairment of coal reserves related to the Gauley Eagle Mine in the U.S. Operations segment and the Brule and Willow Creek mines within the Canadian and U.K. Operations segment and natural gas reserves of Walter Black Warrior Basin. The Company recognized asset impairment charges of approximately $8.0 million for the year ended December 31, 2013 related to the closure of the Alabama North River Mine. | ||||||||
For the year ended December 31, 2012, the Company recognized impairment charges relating to a natural gas exploration project in the U.S. Operations segment and asset impairment charges related to the impairment of property, plant and equipment at the Aberpergwm mine in the Canadian and U.K. Operations segment as carrying values of certain asset groups exceeded their fair value. See Note 5 for additional discussion on asset impairment matters. | ||||||||
Goodwill | ||||||||
Goodwill represents the excess of the purchase price over the fair value assigned to the net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not amortized but instead is tested for impairment at a minimum annually unless circumstances indicate a possible impairment may exist. The Company performs its annual goodwill testing as of the beginning of the fourth quarter at the reporting unit level. An impairment loss generally would be recognized when the carrying amount of the reporting unit exceeds the fair value of the reporting unit. The fair value of each reporting unit is determined using a market approach, an income approach or a combination of each. A number of significant assumptions and estimates are involved in determining fair value of the reporting unit including markets, sales volumes and prices, costs to produce, capital spending, working capital changes and the discount rate. Management considers historical experience and all available information at the time the fair values of its reporting units are estimated. During the year ended December 31, 2012, the Company performed an interim goodwill impairment test and, as a result, a goodwill impairment charge of $1.1 billion was recorded. See Note 4 for additional discussion on goodwill impairment matters. | ||||||||
Benefit Plans | ||||||||
The Company has various defined benefit pension plans covering certain U.S. salaried employees and eligible hourly employees. 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 cost of providing these benefits is determined on an actuarial basis and accrued over the employee's period of active service. | ||||||||
The Company is required to recognize the overfunded or underfunded status of these plans as determined on an actuarial basis as an asset or liability in its Consolidated Balance Sheets and to recognize changes in the funded status in the year in which the changes occur through other comprehensive income (loss). The Company is also required to measure plan assets and benefit obligations as of the date of the Company's fiscal year-end balance sheet and provide the required disclosures as of the end of each fiscal year. See Note 15 for additional discussion of employee benefit plans. | ||||||||
Workers' Compensation and Pneumoconiosis ("Black Lung") Benefits | ||||||||
We are insured for workers' compensation benefits for work related injuries that occur within our U.S. operations. We retain the first $1 million to $2 million per accident for all of our U.S. subsidiaries and are fully insured above the deductible for statutory limits, with the exception of Jim Walter Resources located in Alabama, where we retain any amount in excess of $15 million per accident. Liabilities, including those related to claims incurred but not reported, are recorded principally using annual valuations based on discounted future expected payments and using historical data of the division or combined insurance industry data when historical data is limited. Workers' compensation liabilities were as follows (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Undiscounted aggregated estimated claims to be paid | $ | 46,119 | $ | 47,043 | ||||
Workers' compensation liability recorded on a discounted basis | $ | 40,238 | $ | 40,477 | ||||
The Company applies a discount rate at a risk-free interest rate, generally a U.S. Treasury bill rate, for each policy year. The rate used is one with a duration that corresponds to the weighted average expected payout period for each policy year. Once a discount rate is applied to a policy year, it remains the discount rate for that year until all claims are paid. The weighted average rate used for discounting the 2013 policy year liability at December 31, 2013 was 1.27%. A one-percentage-point increase in the discount rate on the discounted claims liability would decrease the liability by $0.3 million, while a one-percentage-point decrease in the discount rate would increase the liability by $0.3 million. | ||||||||
The Company is responsible for medical and disability benefits for black lung disease under the Federal Coal Mine Health and Safety Act of 1969, as amended, and is self-insured for certain amounts of black lung related claims. The Company performs an annual evaluation of the overall black lung liabilities at the December 31st balance sheet date. The calculation is performed using assumptions regarding rates of successful claims, discount factors, benefit increases and mortality rates, among others. The present value of the obligation recorded by the Company using a discount factor of 5.28% for 2013 and 4.44% for 2012 was $17.2 million and $17.9 million as of December 31, 2013 and 2012, respectively. A one-percentage-point increase in the discount rate on the discounted claims liability would decrease the liability by $2.7 million, while a one-percentage-point decrease in the discount rate would increase the liability by $3.4 million. | ||||||||
Derivative Instruments and Hedging Activities | ||||||||
The Company enters into interest rate hedge agreements in accordance with the Company's internal debt and interest rate risk management policy, which is designed to mitigate risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Changes in the fair value of interest rate hedge agreements that are designated and effective as hedges are recorded in accumulated other comprehensive income (loss) ("OCI"). Deferred gains or losses are reclassified from OCI to the statement of operations in the same period as the underlying transactions are recorded and are recognized in the caption, interest expense. Changes in the fair value of interest rate hedge agreements that are not effective as hedges would be recorded immediately in the statement of operations as interest expense. | ||||||||
To protect against the reduction in the value of forecasted cash flows resulting from sales of natural gas, the Company periodically engages in a natural gas hedging program. The Company periodically hedges portions of its forecasted revenues from sales of natural gas with natural gas derivative contracts, generally either "swaps" or "collars". The Company enters into natural gas derivatives that effectively convert a portion of its forecasted sales at floating-rate natural gas prices to a fixed-rate basis, thus reducing the impact of natural gas price changes on revenues. When natural gas prices fall, the decline in value of future natural gas sales is offset by gains in the value of swap contracts designated as hedges. Conversely, when natural gas prices rise, the increase in the value of future cash flows from natural gas sales is offset by losses in the value of the swap contracts. Changes in the fair value of natural gas derivative agreements that are designated and effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI and recognized as miscellaneous income in the statement of operations in the same period as the underlying transactions are recognized. Changes in the fair value of natural gas hedge agreements that are not effective as hedges or are not designated as hedges would be recorded immediately in the statement of operations as miscellaneous income. | ||||||||
During the three years ended December 31, 2013, the Company did not hold any non-derivative instruments designated as hedges or any derivatives designated as fair value hedges. In addition, the Company does not enter into derivative financial instruments for speculative or trading purposes. Derivative contracts are entered into only with counterparties that management considers creditworthy. Cash flows from hedging activities are reported in the statement of cash flows in the same classification as the hedged item, generally as a component of cash flows from operations. | ||||||||
Foreign Currency Translation | ||||||||
The functional currency of the Company's Canadian operations is the U.S. dollar, while the U.K. operation's functional currency is the British Pound. Our Canadian operations' monetary assets and liabilities are remeasured at period end exchange rates while non-monetary items are remeasured at historical rates. Income and expense accounts are remeasured at the average rates in effect during the year, except for those expenses related to balance sheet amounts that are remeasured at historical exchange rates. Our U.K. operations' assets and liabilities are translated using exchange rates in effect at the end of the period, and revenues and costs are translated using average exchange rates for the period. For the Company's Canadian operations, gains and losses from foreign currency remeasurement related to tax balances are included as a component of income tax expense while all other remeasurement gains and losses are included in miscellaneous income (expense). For the Company's U.K. operations, foreign currency translation adjustments are reported in OCI. The foreign currency remeasurement gain recognized in miscellaneous income for the year ended December 31, 2013 was $8.0 million compared to a loss of $3.1 million for the year ended December 31, 2012. | ||||||||
Stock-Based Compensation | ||||||||
The Company periodically grants stock-based awards to employees and its Board of Directors and records the related compensation expense during the period of vesting. This compensation expense results in a corresponding credit to capital in excess of par value and the expense is generally recognized in selling, general and administrative expenses and cost of sales, as appropriate, utilizing the graded vesting method for stock options and the straight-line method for restricted stock units. The Company uses the Black- Scholes option pricing model to value stock option grants and estimates forfeitures in calculating the expense related to stock-based compensation. The Company uses the Monte Carlo simulation to value its performance share units in calculating the expense related to stock-based compensation. See Note 7 for additional disclosures on stock-based compensation and equity awards. | ||||||||
Environmental Expenditures | ||||||||
The Company capitalizes environmental expenditures that increase the life or efficiency of property or that reduce or prevent environmental contamination. The Company accrues for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and reasonably estimable. See Note 18 for additional disclosures of environmental matters. | ||||||||
Deferred Financing Costs | ||||||||
The costs to obtain new debt financing or amend existing financing agreements are deferred and amortized to interest expense over the life of the related indebtedness or credit facility using the effective interest method. The unamortized balance of deferred financing costs was $62.7 million and $70.0 million at December 31, 2013 and 2012, respectively. Amounts classified as current were $14.9 million and $17.5 million at December 31, 2013 and 2012, respectively. Current amounts are included in other current assets and non-current amounts are included in other long-term assets in the accompanying consolidated balance sheets. | ||||||||
Income (Loss) per Share | ||||||||
The Company calculates basic income (loss) per share based on the weighted average common shares outstanding during each period and diluted income (loss) per share based on weighted average common shares and dilutive common equivalent shares outstanding during each period. Dilutive common equivalent shares include the dilutive effect of stock awards. See Note 17 for additional disclosures on income (loss) per share. | ||||||||
Income Taxes | ||||||||
The Company records a tax provision for the expected tax effects of the reported results of operations. The provision for income taxes is determined using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax impact of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce deferred income tax assets to the amount that is believed more likely than not to be realized. | ||||||||
The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | ||||||||
In the event that the Company determines all or part of the net deferred income tax assets are not realizable in the future, the Company will make an adjustment to the valuation allowance that would be charged to earnings in the period such determination is made. See Note 11 for additional disclosures on the accounting for income taxes. | ||||||||
Acquisitions
Acquisitions | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Acquisitions | ' | ||||
Acquisitions | ' | ||||
NOTE 3—Acquisitions | |||||
Western Coal Corp. On November 18, 2010, the Company announced its intent to acquire all of the outstanding common shares of Western Coal. Through this acquisition, the Company acquired high quality metallurgical coal mines in Northeast British Columbia (Canada), high quality metallurgical coal and compliant thermal coal mines in West Virginia (United States), and a high quality anthracite coal mine in South Wales (United Kingdom). The acquisition of Western Coal substantially increased the Company's reserves available for future production, the majority of which is high-quality metallurgical coal, and created a diverse geographical footprint with strategic access to high-growth steel-producing countries in both the Atlantic and Pacific basins. | |||||
On November 17, 2010, the Company entered into a share purchase agreement with various funds advised by Audley Capital to purchase approximately 54.5 million common shares, or 19.8%, of the outstanding common shares of Western Coal for $11.50 CAD per share in two separate transactions. On December 2, 2010, the Company entered into an arrangement agreement with Western Coal to acquire all the remaining outstanding common shares of Western Coal for $11.50 CAD per share in cash or 0.114 of a Walter Energy share, or for a combination thereof at the holder's election, subject to proration. | |||||
In January 2011, the Company completed the first transaction to acquire 25,274,745 common shares of Western Coal, or 9.15% of the outstanding shares, from funds advised by Audley Capital. The shares were purchased for $293.7 million in cash and had a fair value of $314.2 million on April 1, 2011. The Company recognized a gain on April 1, 2011 of $20.5 million as a result of remeasuring to fair value the Western Coal shares acquired from Audley Capital which is included in other income in the Consolidated Statements of Operations for the year ended December 31, 2011. On April 1, 2011, the Company acquired the remaining outstanding common shares of Western Coal (including the second Audley Capital transaction) for a combination of $2.2 billion in cash and the issuance of 8,951,558 common shares of Walter Energy valued at $1.2 billion. The fair value of Walter Energy's common stock on April 1, 2011 was $136.75 per share based on the closing value on the New York Stock Exchange. The cash portion was funded with part of the proceeds from the $2.7 billion credit facility discussed in Note 14. All of the outstanding options to purchase Western Coal common shares that were not exercised prior to the acquisition were exchanged for fully-vested and immediately exercisable options to purchase shares of Walter Energy common stock. The Company issued 193,498 stock options in exchange for the Western Coal stock options outstanding as of April 1, 2011. The stock options issued had a fair value of $15.5 million, which was estimated using the Black-Scholes option pricing model. The outstanding warrants of Western Coal were not directly affected by the acquisition. Instead, upon exercise each warrant entitled the holder to receive cash and shares of Walter Energy common stock that would have been issued if the warrants had been exercised immediately before closing the acquisition. During the year ended December 31, 2012, all of the warrants were exercised (or expired) resulting in a cash payment of $11.5 million and the issuance of 18,938 additional shares of common stock. | |||||
The purchase consideration has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. Fair values were determined using the income, cost and market price valuation methods as deemed appropriate. The following tables summarize the purchase consideration and the purchase price allocation to the assets acquired and liabilities assumed (in thousands): | |||||
Purchase consideration: | |||||
Cash | $ | 2,173,080 | |||
Fair value of shares of common stock issued | 1,224,126 | ||||
Fair value of stock options issued and warrants | 34,765 | ||||
| | | | | |
Fair value of consideration transferred | 3,431,971 | ||||
Fair value of equity interest in Western Coal held before the acquisition | 314,231 | ||||
| | | | | |
Total consideration | $ | 3,746,202 | |||
| | | | | |
| | | | | |
Fair value of assets acquired and liabilities assumed: | |||||
Cash and cash equivalents | $ | 34,065 | |||
Receivables | 163,668 | ||||
Inventories | 121,229 | ||||
Other current assets | 86,498 | ||||
Mineral interests | 3,086,000 | ||||
Property, plant and equipment | 554,192 | ||||
Goodwill | 1,065,040 | ||||
Other long-term assets | 54,150 | ||||
| | | | | |
Total assets | 5,164,842 | ||||
| | | | | |
Accounts payable and accrued liabilities | 184,983 | ||||
Other current liabilities | 86,105 | ||||
Deferred tax liability | 1,046,708 | ||||
Other long-term liabilities | 100,844 | ||||
| | | | | |
Total liabilities | 1,418,640 | ||||
| | | | | |
Net assets acquired | $ | 3,746,202 | |||
| | | | | |
| | | | | |
The unaudited supplemental pro forma information presented below includes the effects of the Western Coal acquisition as if it had been completed as of January 1, 2010. The pro forma results include (i) the impact of certain estimated fair value adjustments, including additional estimated depreciation and depletion expense associated with the acquired mineral interests and property, plant and equipment and (ii) interest expense associated with debt used to fund the acquisition. The pro forma results for the year ended December 31, 2011 exclude adjustments for the financial impact of certain acquisition related items that would have been incurred during the year ended December 31, 2010 if the acquisition had occurred on January 1, 2010. Accordingly, the following unaudited pro forma financial information should not be considered indicative of either future results or results that might have occurred had the acquisition been consummated as of January 1, 2010 (in thousands): | |||||
For the year | |||||
ended | |||||
December 31, | |||||
2011 | |||||
Total revenues | |||||
As reported herein | $ | 2,571,358 | |||
Pro forma | $ | 2,795,566 | |||
Income from continuing operations | |||||
As reported herein | $ | 363,598 | |||
Pro forma | $ | 418,419 | |||
North River Mine. On May 6, 2011, the Company acquired the North River thermal coal mine in Fayette and Tuscaloosa Counties of Alabama from a subsidiary of Chevron Corporation for $1.1 million in cash and the assumption of certain liabilities totaling approximately $90.9 million. The Company recognized goodwill of $1.7 million. The results of this operation have been included in the consolidated financial statements of the Company since the acquisition date. The North River Mine was closed in the fourth quarter of 2013 as we completed mining the economically recoverable reserves. | |||||
Goodwill_Impairment
Goodwill Impairment | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Goodwill Impairment | ' | |||||||||||||
Goodwill Impairment | ' | |||||||||||||
NOTE 4—Goodwill Impairment | ||||||||||||||
During 2012, domestic and international metallurgical coal markets deteriorated as a result of slowing economic activity in Europe and Asia, an oversupply of coal due to the settlement of labor unrest issues in Australia and a decline in the production of steel. The changes to the near-term market outlook resulted in the Company reviewing its operating strategy and related capital investment projects during the third quarter of 2012. Based on this review, the Company decided to reduce capital spending for the remainder of 2012 and 2013 and to temporarily curtail mining operations at certain mines in its Canadian and U.K. Operations segment. | ||||||||||||||
The changes to the near-term market outlook combined with planned reductions in capital spending, plans to curtail mining operations at certain mines in our Canadian and U.K. Operations segment, and a significant decrease in our common stock price indicated that the fair value of the Company's goodwill could be less than its carrying value. Accordingly, the Company performed an interim goodwill impairment test as of July 31, 2012 and recorded a goodwill impairment charge of $1.1 billion to reduce the carrying value of goodwill to its implied fair value for two reporting units in the U.S. Operations segment and two reporting units in the Canadian and U.K. Operations segment. | ||||||||||||||
The market approach was utilized to estimate the fair value of three of our four reporting units and the income approach was used for one reporting unit where there were no market comparable data available. The market approach is based on a guideline public company methodology. Under the guideline public company method, certain operating metrics from a selected group of publicly traded guideline companies that have operations similar to the Company's reporting units were used to estimate the fair value of the reporting units. The income approach is based on a discounted cash flow methodology in which expected future net cash flows are discounted to present value, using an appropriate after-tax weighted average cost of capital. The valuation methodology utilized to allocate the estimated fair value of the reporting units to the underlying assets and liabilities contained within the individual reporting units for the goodwill impairment test was primarily based on an income approach. The income approach uses future discounted cash flow estimates in which future net cash flows projected to result from such assets were discounted to present value using an appropriate after-tax weighted average cost of capital. The table below summarizes the impact of the goodwill impairment for the impacted reporting segments. | ||||||||||||||
Balance as of | Other—Primarily | Impairments | Balance as of | |||||||||||
December 31, | Currency | December 31, | ||||||||||||
2011 | Translation | 2012 | ||||||||||||
Goodwill, net: | ||||||||||||||
U.S. Operations | $ | 74,320 | $ | — | $ | (74,320 | ) | $ | — | |||||
Canadian and U.K. Operations | 992,434 | (2,345 | ) | (990,089 | ) | — | ||||||||
| | | | | | | | | | | | | | |
Total goodwill | $ | 1,066,754 | $ | (2,345 | ) | $ | (1,064,409 | ) | $ | — | ||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Restructuring_and_Asset_Impair
Restructuring and Asset Impairment | 12 Months Ended |
Dec. 31, 2013 | |
Restructuring and Asset Impairment | ' |
Restructuring and Asset Impairment | ' |
NOTE 5—Restructuring and Asset Impairment | |
During the fourth quarter of 2013, the Company closed the North River Mine in the U.S. Operations segment as all of the economically recoverable reserves were mined. The Company recognized a gain of approximately $17.0 million due to the release of a below market contract liability that was obtained through the acquisition of the North River Mine, primarily offset by restructuring and asset impairment charges of approximately $9.3 million, all related to the accelerated closure of the North River Mine. The Company also curtailed production at the Willow Creek Mine in the Canadian and U.K. Operations segment in the first half of 2013 due to depressed metallurgical coal prices. In connection with this curtailment, the Company recognized restructuring charges of approximately $10.7 million. | |
In the fourth quarter of 2012, the Company curtailed operations at its Aberpergwm underground coal mine in the U.K. and recognized restructuring and asset impairment charges of $9.1 million, of which $6.0 million related to severance and other obligations and $3.1 million related to the impairment of property, plant and equipment as the carrying values of certain assets exceeded their fair value. The Company also recorded a pre-tax charge of $40 million ($25 million after-tax) in the third quarter of 2012, to write-off capitalized exploratory costs associated with a natural gas exploration project that had not proved capable of providing commercially sufficient quantities of proven reserves to be economical. | |
Discontinued_Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2013 | |
Discontinued Operations | ' |
Discontinued Operations | ' |
NOTE 6—Discontinued Operations | |
Closure of Kodiak Mining Co. In 2012, the Company divested the Kodiak Mining Company, LLC, assets and liabilities for $9.5 million cash. This mine was closed in 2008 and the sale resulted in a gain of $8.2 million ($5.2 million after-tax). The Company has reported the results of operations and cash flows of Kodiak as discontinued operations for the year ended December 31, 2012.The Kodiak operations did not have a material impact on either the Company's revenues or operating income for the year ended December 31, 2011 and as such, was not reported as discontinued operations. | |
Equity_Award_Plans
Equity Award Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Equity Award Plans | ' | |||||||||||||
Equity Award Plans | ' | |||||||||||||
NOTE 7—Equity Award Plans | ||||||||||||||
The stockholders of the Company approved the 2002 Long-Term Incentive Award Plan (the "2002 Plan"), under which an aggregate of 4.3 million shares of the Company's common stock have been reserved for grant and issuance of incentive and non-qualified stock options, stock appreciation rights and stock awards. | ||||||||||||||
Under the 2002 Plan, 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. The Company may also issue restricted stock awards. The Company has issued restricted stock awards which generally fully vest after three years of continuous employment or over three years in equal annual increments. | ||||||||||||||
Upon completion of the Western Coal acquisition, all of the outstanding options to purchase Western Coal common shares that were not exercised prior to the acquisition were exchanged for fully-vested and immediately exercisable Walter Energy stock options. The Company issued 193,498 stock options in exchange for the Western Coal stock options outstanding as of April 1, 2011. | ||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, the Company recorded stock-based compensation expense for its continuing operations related to equity awards totaling approximately $10.1 million, $7.3 million, and $9.2 million, 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 $3.8 million, $2.7 million, and $3.2 million during 2013, 2012 and 2011, respectively. | ||||||||||||||
A summary of activity related to stock options during the year ended December 31, 2013, is presented below: | ||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic Value | ||||||||||||
Exercise | Remaining | $0 | ||||||||||||
Price | Contractual | |||||||||||||
Term (in years) | ||||||||||||||
Outstanding at December 31, 2012 | 541,369 | $ | 46.58 | |||||||||||
Granted | 267,624 | $ | 28.6 | |||||||||||
Exercised | (26,390 | ) | $ | 10.87 | ||||||||||
Forfeited or expired | (28,134 | ) | $ | 57.47 | ||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 31, 2013 | 754,469 | $ | 41.04 | 6.1 | $ | 363.9 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at December 31, 2013 | 437,282 | $ | 44.3 | 3.9 | $ | 244.4 | ||||||||
Weighted average assumptions used to determine the grant-date fair value of options granted were: | ||||||||||||||
For the year | ||||||||||||||
ended December 31, | ||||||||||||||
2013 | 2012 | 2011(1) | ||||||||||||
Risk free interest rate | 1.13 | % | 0.85 | % | 0.88 | % | ||||||||
Dividend yield | 1.1 | % | 0.55 | % | 0.52 | % | ||||||||
Expected life (years) | 4.98 | 4.95 | 2.46 | |||||||||||
Volatility | 73.54 | % | 75.79 | % | 57.51 | % | ||||||||
-1 | ||||||||||||||
Includes fully vested replacement stock options issued on April 1, 2011 in connection with the acquisition of Western Coal described in Note 3, which significantly reduced the expected life as compared with prior periods. | ||||||||||||||
The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant with a term equal to the expected life. The expected dividend yield is based on the Company's estimated annual dividend payout at grant date. The expected term of the options represents the period of time the options are expected to be outstanding. Expected volatility is based on historical volatility of the Company's share price for the expected term of the options. | ||||||||||||||
A summary of activity related to restricted stock units during the year ended December 31, 2013, is as follows: | ||||||||||||||
Shares | Weighted | Aggregate | ||||||||||||
Average | Intrinsic Value | |||||||||||||
Remaining | $0 | |||||||||||||
Contractual Term | ||||||||||||||
in Years | ||||||||||||||
Outstanding at December 31, 2012 | 149,271 | |||||||||||||
Granted | 121,364 | |||||||||||||
Vested | (38,908 | ) | ||||||||||||
Forfeited or expired | (17,719 | ) | ||||||||||||
| | | | | | | | | | | ||||
Outstanding at December 31, 2013 | 214,008 | 8.18 | $ | 3,644.70 | ||||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
The weighted-average grant-date fair values of stock options granted during the years ended December 31, 2013, 2012 and 2011 were $15.83, $36.97 and $81.82, respectively. The weighted-average grant-date fair values of restricted stock units granted during the years ended December 31, 2013, 2012 and 2011 were $34.03, $63.17 and $133.15, respectively. The total amount of cash received from exercise of stock options was $0.3 million, $0.2 million and $8.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. The total intrinsic value of stock options exercised and restricted stock vested during 2013 was $0.5 million and $0.6 million, respectively, and the total intrinsic value of stock options exercised and restricted stock vested during 2012 was $1.4 million and $1.6 million, respectively. The total intrinsic value of stock options exercised and restricted stock vested during 2011 was $24.2 million and $7.7 million, respectively. The total fair value of restricted stock units vested during 2013, 2012 and 2011 was $3.4 million, $2.1 million and $4.5 million, respectively. | ||||||||||||||
Performance-Based Share Units | ||||||||||||||
During 2013, the Board of Directors approved the grant of 53,874 performance-based share units, all of which remain outstanding as of December 31, 2013. The performance-based share units are awarded to executive officers and key employees and generally cliff vest after two or three years (with accelerated vesting upon a change of control). Performance-based share units granted represent the number of shares of common stock to be awarded based on the achievement of targeted performance levels related to total shareholder return goals over a two or three year period and may range from 0% to 200% of the targeted amount. The grant date fair value of the awards is based upon a Monte Carlo simulation and is amortized over the performance period. At each reporting date the Company reassesses whether achievement of each of the performance conditions is probable, as well as estimated forfeitures. Upon vesting of performance-based share units, the Company issues authorized and unissued shares of the Company's common stock to the recipient. | ||||||||||||||
A summary of activity related to performance-based share units during the year ended December 31, 2013, is as follows: | ||||||||||||||
Shares | Weighted | |||||||||||||
Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||
Outstanding at December 31, 2012 | — | |||||||||||||
Granted | 53,874 | $ | 52.38 | |||||||||||
Vested | — | |||||||||||||
Forfeited or expired | — | |||||||||||||
| | | | | | | | |||||||
Outstanding at December 31, 2013 | 53,874 | |||||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Unrecognized compensation costs related to restricted stock units granted were approximately $2.4 million as of December 31, 2013. These costs are to be recognized over a weighted average period of 1.5 years. Unrecognized compensation costs related to stock options granted were approximately $2.3 million and are to be recognized over a weighted average period of 2.1 years. Unrecognized compensation costs related to performance-based share units compensation arrangements granted were approximately $1.3 million and are to be recognized over a weighted average period of 1.7 years. | ||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||
All full-time employees of the Company who have attained the age of majority in the country in which they reside are eligible to participate in the employee stock purchase plan, which was adopted in January 1996 and amended in April 2004. The Company contributes a sum equal to 15% (20% after five years of continuous participation) of each participant's actual payroll deduction as authorized, and remits such funds to a designated brokerage firm that purchases shares of the Company's common stock for the accounts of the participants, in the open market. The total number of shares that may be purchased under the plan is 3.5 million. Shares purchased under the plan during the years ended December 31, 2013, 2012 and 2011 were approximately 217,900, 86,200 and 29,500, respectively, and the Company's contributions recognized as expense were approximately $0.3 million, $0.5 million and $0.4 million, respectively, during such years. | ||||||||||||||
Receivables
Receivables | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables | ' | |||||||
Receivables | ' | |||||||
NOTE 8—Receivables | ||||||||
Receivables are summarized as follows (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Trade receivables | $ | 150,394 | $ | 154,081 | ||||
Tax receivables | 127,130 | 83,203 | ||||||
Other receivables | 5,517 | 25,050 | ||||||
Less: Allowance for losses | (1,278 | ) | (5,367 | ) | ||||
| | | | | | | | |
Receivables, net | $ | 281,763 | $ | 256,967 | ||||
| | | | | | | | |
| | | | | | | | |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
NOTE 9—Inventories | ||||||||
Inventories are summarized as follows (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Coal | $ | 238,820 | $ | 228,910 | ||||
Raw materials and supplies | 73,827 | 77,108 | ||||||
| | | | | | | | |
Total inventories | $ | 312,647 | $ | 306,018 | ||||
| | | | | | | | |
| | | | | | | | |
Mineral_Interests_and_Property
Mineral Interests and Property, Plant and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Mineral Interests and Property, Plant and Equipment | ' | |||||||
Mineral Interests and Property, Plant and Equipment | ' | |||||||
NOTE 10—Mineral Interests and Property, Plant and Equipment | ||||||||
Mineral interests totaled $3,146.0 million and $3,145.2 million as of December 31, 2013 and 2012, respectively. Accumulated amortization totaled $241.0 million and $179.6 million as of December 31, 2013 and 2012, respectively. | ||||||||
Property, plant and equipment are summarized as follows (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Land | $ | 79,733 | $ | 87,088 | ||||
Land improvements | 43,107 | 19,949 | ||||||
Buildings and leasehold improvements | 420,142 | 362,296 | ||||||
Mine development costs | 255,680 | 270,768 | ||||||
Machinery and equipment | 1,569,318 | 1,402,417 | ||||||
Gas properties and related development | 188,527 | 223,200 | ||||||
Construction in progress | 61,933 | 163,096 | ||||||
| | | | | | | | |
Total | 2,618,440 | 2,528,814 | ||||||
Less: Accumulated depreciation | (980,888 | ) | (796,683 | ) | ||||
| | | | | | | | |
Net | $ | 1,637,552 | $ | 1,732,131 | ||||
| | | | | | | | |
| | | | | | | | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||||||
NOTE 11—Income Taxes | |||||||||||||||||||||||||||||
Income tax expense (benefit) applicable to continuing operations consists of the following (in thousands): | |||||||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Current | Deferred(1) | Total | Current | Deferred | Total | Current | Deferred | Total | |||||||||||||||||||||
Federal | $ | (54,312 | ) | $ | 103,851 | $ | 49,539 | $ | 49,236 | $ | (45,330 | ) | $ | 3,906 | $ | 37,307 | $ | 80,701 | $ | 118,008 | |||||||||
State | (3,906 | ) | 15,040 | 11,134 | 3,860 | (1,747 | ) | 2,113 | 6,226 | 3,108 | 9,334 | ||||||||||||||||||
Foreign | (137 | ) | (102,374 | ) | (102,511 | ) | (20,080 | ) | (85,143 | ) | (105,223 | ) | 20,889 | (17,006 | ) | 3,883 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | (58,355 | ) | $ | 16,517 | $ | (41,838 | ) | $ | 33,016 | $ | (132,220 | ) | $ | (99,204 | ) | $ | 64,422 | $ | 66,803 | $ | 131,225 | |||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The foreign provision (benefit) for income taxes is based on foreign pretax losses of $222.3 million in 2013 as compared with foreign pretax losses of $1.2 billion in 2012 and foreign pretax earnings of $84.0 million in 2011. | |||||||||||||||||||||||||||||
Deferred income tax assets and liabilities reflect the effects of tax losses, credits, and the future income tax effects of temporary differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |||||||||||||||||||||||||||||
As of December 31, 2013 and December 31, 2012, the significant components of the Company's deferred income tax assets and liabilities were (in thousands): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Deferred income tax assets: | |||||||||||||||||||||||||||||
Net operating losses and credit carryforwards | $ | 278,016 | $ | 156,387 | |||||||||||||||||||||||||
Accrued expenses | 5,167 | 14,827 | |||||||||||||||||||||||||||
Contingent interest | 42,763 | 39,581 | |||||||||||||||||||||||||||
Other postretirement benefits | 223,346 | 247,578 | |||||||||||||||||||||||||||
Pension obligations | 2,925 | 23,725 | |||||||||||||||||||||||||||
Other | 15,243 | 34,214 | |||||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Total | 567,460 | 516,312 | |||||||||||||||||||||||||||
Less: valuation allowance for deferred income tax assets | (166,265 | ) | (20,919 | ) | |||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Net deferred income tax assets | 401,195 | 495,393 | |||||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||||||||||||||
Prepaid expenses | (13,494 | ) | (12,465 | ) | |||||||||||||||||||||||||
British Columbia mineral tax | (184,680 | ) | (243,229 | ) | |||||||||||||||||||||||||
Property, plant and equipment | (990,580 | ) | (943,523 | ) | |||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Total deferred income tax liabilities | (1,188,754 | ) | (1,199,217 | ) | |||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Net deferred income tax liability | $ | (787,559 | ) | $ | (703,824 | ) | |||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Deferred income taxes are classified as follows: | |||||||||||||||||||||||||||||
Current deferred income tax asset | $ | 37,067 | $ | 58,526 | |||||||||||||||||||||||||
Noncurrent deferred income tax asset | — | 160,422 | |||||||||||||||||||||||||||
Other current liabilities | (1,759 | ) | (1,085 | ) | |||||||||||||||||||||||||
Noncurrent deferred income tax liability | (822,867 | ) | (921,687 | ) | |||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Net deferred tax liability | $ | (787,559 | ) | $ | (703,824 | ) | |||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
As of each reporting date, the Company's management considers new evidence, both positive and negative, that could impact management's view with regard to future realization of deferred income tax assets. As of December 31, 2013, management determined that sufficient negative evidence exists to conclude that it is more likely than not that deferred income tax assets of $166.3 million will not be realized. In recognition of this risk, the Company increased the valuation allowances by $145.3 million. The tax benefits related to any future reversals of the valuation allowances on deferred income tax assets as of December 31, 2013, will be accounted for as a reduction to income tax expense. | |||||||||||||||||||||||||||||
As of December 31, 2013, our U.S. net operating losses ("NOLs") consisted of $77.1 million of federal NOLs and $343.0 million of state NOLs available as offsets to future years' taxable income. The NOLs primarily expire between 2026 and 2033. Additionally, $10.8 million of federal and state capital losses were available as of December 31, 2013. The Company has alternative minimum tax credits of $52.3 million and general business credits of $6.6 million as of December 31, 2013 that may be carried forward indefinitely. In our evaluation of the need for a valuation allowance on our U.S. deferred income tax assets, we considered all available positive and negative evidence, including scheduled reversals of deferred income tax liabilities, carryback of future period losses to prior periods, projected future taxable income, tax planning strategies and recent financial performance. Based on our review of all positive and negative evidence, including a three year U.S. cumulative pre-tax loss, it was concluded that a valuation allowance should be recorded against our deferred income tax assets that are not expected to be realized through future sources of taxable income generated from carrybacks of future period losses, scheduled reversals of deferred income tax liabilities and tax planning strategies. As a result, a valuation allowance was recorded to reflect the portion of the U.S. federal and state deferred income tax assets that are not likely to be realized based upon all available evidence. If we later determine that we will more likely than not realize all, or a portion, of the U.S. deferred income tax assets, we will reverse the valuation allowance in a future period. All future reversals of the valuation allowance would result in a tax benefit in the period recognized. | |||||||||||||||||||||||||||||
As of December 31, 2013, our foreign subsidiaries had $707.2 million of ordinary non-U.S. NOLs and $8.6 million of non-U.S. capital losses available for carryforward. Canadian ordinary NOLs of $581.9 million will expire between 2031 and 2033 while Canadian capital losses of $1.2 million have an indefinite carryforward period. U.K. ordinary NOLs of $125.3 million have an indefinite carryforward period. We believe the Canadian and U.K operations non-capital NOLs and the Canadian capital losses will more likely than not be realized prior to their expiration from the reversal of taxable temporary differences in the future. We have valuation allowances on U.K. capital losses equal to the capital loss carryforward of $7.4 million which is not expected to provide future tax benefits. We have $13.8 million of Canadian unrealized losses for which we have a full valuation allowance. Additionally, we have established a full valuation allowance against $9.6 million of future British Columbia mineral tax attributes that are not expected to provide future tax benefits. | |||||||||||||||||||||||||||||
The income tax expense (benefit) at the Company's effective tax rate differed from the U.S. statutory rate of 35% as follows (in thousands): | |||||||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense | $ | (400,841 | ) | $ | (1,164,759 | ) | $ | 494,823 | |||||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
Tax expense (benefit) at statutory tax rate of 35% | (140,294 | ) | $ | (407,665 | ) | $ | 173,188 | ||||||||||||||||||||||
Effect of: | |||||||||||||||||||||||||||||
Excess depletion benefit | (17,524 | ) | (26,107 | ) | (32,370 | ) | |||||||||||||||||||||||
Taxation of foreign operations | (5,663 | ) | (11,945 | ) | (36,545 | ) | |||||||||||||||||||||||
British Columbia mineral tax foreign currency effect | (26,778 | ) | 3,643 | (12,336 | ) | ||||||||||||||||||||||||
British Columbia mineral tax | (14,697 | ) | (22,365 | ) | 24,290 | ||||||||||||||||||||||||
Goodwill impairment | — | 372,543 | — | ||||||||||||||||||||||||||
State and local income tax, net of federal effect | (6,947 | ) | 2,470 | 7,394 | |||||||||||||||||||||||||
U.S. domestic production activities benefit | — | (2,950 | ) | (5,583 | ) | ||||||||||||||||||||||||
Valuation allowance on deferred tax assets | 145,322 | 19,189 | — | ||||||||||||||||||||||||||
Impact of statutory tax rate changes | 14,660 | (3,772 | ) | — | |||||||||||||||||||||||||
Credits and other incentives | (659 | ) | (2,301 | ) | — | ||||||||||||||||||||||||
Impact of West Virginia legal entity restructuring | 10,084 | — | — | ||||||||||||||||||||||||||
Acquisition costs | — | — | 8,078 | ||||||||||||||||||||||||||
Other | 658 | (19,944 | ) | 5,109 | |||||||||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
Tax expense (benefit) recognized | $ | (41,838 | ) | $ | (99,204 | ) | $ | 131,225 | |||||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
During 2013, income tax expense attributable to equity-based compensation transactions that were allocated to stockholders' equity totaled $0.7 million as compared to net excess tax benefits of $0.8 million, and $8.9 million in 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
The Company files income tax returns in the U.S., Canada, U.K., Australia and in various state, provincial and local jurisdictions which are routinely examined by tax authorities in these jurisdictions. The statute of limitations related to the U.S. consolidated federal income tax returns is closed for years prior to August 31, 1983 and for the years ended May 31, 1997, 1998 and 1999. The impact of any U.S. federal changes for these years on state income taxes remains subject to examination for a period up to five years after formal notification to the states. The Company generally remains subject to income tax in various states for prior periods ranging from three to eleven years depending on jurisdiction. In our major non-U.S. jurisdictions, tax years are typically subject to examination for three to six years. | |||||||||||||||||||||||||||||
On December 27, 1989, the Company and most of its U.S. subsidiaries each filed a voluntary petition for reorganization under Chapter 11 of Title 11 of the United States Code (the "Bankruptcy Proceedings") in the United States Bankruptcy Court for the Middle District of Florida, Tampa Division (the "Bankruptcy Court"). The Company emerged from bankruptcy on March 17, 1995 (the "Effective Date") pursuant to the Amended Joint Plan of Reorganization dated as of December 9, 1994, as modified on March 1, 1995 (as so modified the "Consensual Plan"). Despite the confirmation and effectiveness of the Consensual Plan, the Bankruptcy Court continues to have jurisdiction over, among other things, the resolution of disputed prepetition claims against the Company and other matters that may arise in connection with or related to the Consensual Plan, including claims related to federal income taxes. | |||||||||||||||||||||||||||||
In connection with the U.S. Bankruptcy Proceedings, the Internal Revenue Service ("IRS") filed a proof of claim in the Bankruptcy Court (the "Proof of Claim") for a substantial amount of taxes, interest and penalties with respect to fiscal years ended August 31, 1983 through May 31, 1994. The Company filed an adversary proceeding in the Bankruptcy Court disputing the Proof of Claim (the "Adversary Proceeding") and the various issues have been litigated in the Bankruptcy Court. An opinion was issued by the Bankruptcy Court in June 2010 as to the remaining disputed issues. The Bankruptcy Court instructed both parties to submit a final order addressing all issues that have been litigated for the tax years 1983 through 1995 in the Adversary Proceeding by late August 2010. At the request of both parties, the Bankruptcy Court granted an extension of time of 90 days from the initial submission date to submit the final order. Additional extensions of time to submit the proposed final order were granted in November 2010, February 2011, May 2011, September 2011, January 2013, May 2013 and December 2013. At the request of the Internal Revenue Service, in December 2013 the Bankruptcy Court granted an additional extension of time to submit the final order. | |||||||||||||||||||||||||||||
The amounts initially asserted by the Proof of Claim do not reflect the subsequent resolution of various issues through settlements or concessions by the parties. The Company believes that any financial exposure with respect to those issues that have not been resolved or settled in the Proof of Claim is limited to interest and possible penalties and the amount of tax assessed has been offset by tax reductions in future years. All of the issues in the Proof of Claim, which have not been settled or conceded, have been litigated before the Bankruptcy Court and are subject to appeal but only at the conclusion of the entire Adversary Proceeding. | |||||||||||||||||||||||||||||
The IRS completed its audit of the Company's federal income tax returns for the years ended May 31, 2000 through December 31, 2005. The IRS issued 30-Day Letters to the Company in June 2010, proposing changes to tax for these tax years. The Company believes its tax filing positions have substantial merit and filed a formal protest with the IRS within the prescribed 30-day time limit for those issues which have not been previously settled or conceded. The IRS filed a rebuttal to the Company's formal protest and the case was assigned to the Appeals Division of the IRS. The Appeals Division convened a hearing on March 8, 2011 and heard arguments from both parties as to issues not settled or conceded for the 2000 through 2005 audit period. As of December 31, 2013, a final resolution has not been reached with the Appeals Division pertaining to these matters. The disputed issues in this audit period are similar to the issues remaining in the Proof of Claim. | |||||||||||||||||||||||||||||
In the second quarter of 2012, the IRS completed its audit of the Company's federal income tax returns for the years 2006 through 2008 and proposed adjustments to tax for these periods. The IRS issued a 30-Day Letter with proposed adjustments and the Company responded to the IRS within the prescribed 30-day time limit. The proposed adjustments are similar to issues in the prior Proof of Claim and included a proposed adjustment to a worthless stock deduction reported in the Company's 2008 federal income tax return. In the third quarter of 2012, the Company received notification from the IRS that the audit of the 2006 through 2008 tax years had been reopened for further review. The IRS issued a revised IRS Appeals Transmittal Letter in April 2013 conceding the proposed adjustment to the worthless stock deduction. As of December 31, 2013, a final resolution has not been reached with the Appeals Division pertaining to the remaining disputed matters. The remaining disputed issues in this audit period are similar to the issues remaining in the Proof of Claim. | |||||||||||||||||||||||||||||
The IRS is conducting an audit of the Company's income tax returns filed for 2009 and 2010. Since the examination is ongoing, any resulting tax deficiency or overpayment cannot be estimated at this time. During 2014, the statute of limitations for assessing additional income tax deficiencies will expire for certain tax years in several state tax jurisdictions. The expiration of the statute of limitations for these years is expected to have an immaterial impact on the total uncertain income tax positions and net income. | |||||||||||||||||||||||||||||
It is reasonably possible that the amount of unrecognized tax benefits will change in the next year. The Company anticipates a final order will be issued by the Bankruptcy Court in 2014 settling the issues in the Proof of Claim. The final order by the Bankruptcy Court would permit a resolution of similar issues for the tax years currently in Appeals (2000-2008). As of December 31, 2013, the Company had $38.0 million of accruals for unrecognized tax benefits on the matters subject to disposition. Due to the uncertainty related to the potential outcome of these matters, any possible changes in unrecognized tax benefits cannot be reasonably estimated. | |||||||||||||||||||||||||||||
The Company believes that all of its current and prior tax filing positions have substantial merit and intends to vigorously defend any tax claims asserted. The Company believes that it has sufficient accruals to address any claims, including interest and penalties, and does not believe that any potential difference between the final settlements and the amounts accrued will have a material effect on the Company's financial position, but such potential difference could be material to results of operations in a future reporting period. | |||||||||||||||||||||||||||||
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits excluding penalties and interest is as follows (in thousands): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Gross unrecognized tax benefits at beginning of year | $ | 89,631 | $ | 92,758 | $ | 39,191 | |||||||||||||||||||||||
Increases for tax positions taken in prior years | 347 | 10,019 | 31,704 | ||||||||||||||||||||||||||
Increases in tax positions for the current year | — | 8,058 | 23,169 | ||||||||||||||||||||||||||
Decreases for tax positions taken in prior years | (13,690 | ) | (18,440 | ) | — | ||||||||||||||||||||||||
Decreases for lapse of statute of limitations | — | (2,764 | ) | — | |||||||||||||||||||||||||
Decreases for changes in temporary differences | — | — | (1,306 | ) | |||||||||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
Gross unrecognized tax benefits at end of year | $ | 76,288 | $ | 89,631 | $ | 92,758 | |||||||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
The total amount of net unrecognized tax benefits that, if recognized, would affect the effective tax rate totaled $69.1 million, $87.6 million and $92.1 million at December 31, 2013, 2012, and 2011, respectively. The Company recognizes interest expense and penalties related to unrecognized tax benefits as components of interest expense and selling, general and administrative expenses. | |||||||||||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, interest expense includes $9.0 million, $10.4 million and $7.2 million, respectively, for interest accrued on the liability for unrecognized tax benefits and for issues identified in the Proof of Claim. As of December 31, 2013, the Company had accrued interest and penalties related to unrecognized tax benefits and the Adversary Proceeding of $112.8 million, of which $111.6 million is included in other current liabilities and $1.2 million is including in other long-term liabilities in the Consolidated Balance Sheets as of December 31, 2013. | |||||||||||||||||||||||||||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Asset Retirement Obligations | ' | |||||||
Asset Retirement Obligations | ' | |||||||
NOTE 12—Asset Retirement Obligations | ||||||||
As of December 31, 2013 and 2012, asset retirement obligation accruals for mine reclamation and closure costs were $116.4 million and $89.5 million, respectively. The portion of the costs expected to be paid within a year of $23.9 million and $12.3 million as of December 31, 2013 and 2012, respectively, is included in other current liabilities. The portion of costs expected to be incurred beyond one year of $92.5 million and $77.2 million as of December 31, 2013 and 2012, respectively, is included in other long-term liabilities. There were no assets that were legally restricted for purposes of settling asset retirement obligations at December 31, 2013 or 2012. | ||||||||
Changes in the asset retirement obligations are as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Balance at beginning of year | $ | 89,478 | $ | 74,963 | ||||
Accretion expense | 9,079 | 4,411 | ||||||
Revisions in estimated cash flows | 26,453 | 14,353 | ||||||
Obligations settled | (8,617 | ) | (4,249 | ) | ||||
| | | | | | | | |
Balance at end of year | $ | 116,393 | $ | 89,478 | ||||
| | | | | | | | |
| | | | | | | | |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accrued Expenses and Other Current Liabilities | ' | |||||||
Accrued Expenses and Other Current Liabilities | ' | |||||||
NOTE 13—Accrued Expenses and Other Current Liabilities | ||||||||
Accrued expenses consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Accrued professional fees | $ | 23,855 | $ | 54,205 | ||||
Wage and employee benefits | 41,938 | 37,981 | ||||||
Accrued interest | 34,473 | 23,343 | ||||||
Other | 33,604 | 69,346 | ||||||
| | | | | | | | |
Total accrued expenses | $ | 133,870 | $ | 184,875 | ||||
| | | | | | | | |
| | | | | | | | |
Other current liabilities consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Accrual for tax interest and penalties | $ | 111,581 | $ | 103,181 | ||||
Accrual for uncertain tax positions | 42,433 | 37,960 | ||||||
Other | 60,059 | 65,332 | ||||||
| | | | | | | | |
Total other current liabilities | $ | 214,073 | $ | 206,473 | ||||
| | | | | | | | |
| | | | | | | | |
Debt
Debt | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Debt | ' | |||||||||||||||||||
Debt | ' | |||||||||||||||||||
NOTE 14—Debt | ||||||||||||||||||||
Debt consisted of the following (in thousands): | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | Weighted Average | Final Maturity | |||||||||||||||||
Stated Interest Rate At | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | ||||||||||||||||||||
2011 term loan A ($406.6 million face value) | $ | 401,052 | $ | 756,974 | 5.74% | 2016 | ||||||||||||||
2011 term loan B ($978.2 million face value) | 968,581 | 1,127,770 | 6.75% | 2018 | ||||||||||||||||
Revolving credit facility(1) | — | — | N/A | 2016 | ||||||||||||||||
9.875% senior notes ($500.0 million face value) | 496,831 | 496,510 | 9.88% | 2020 | ||||||||||||||||
8.50% senior notes | 450,000 | — | 8.50% | 2021 | ||||||||||||||||
9.50% senior secured notes ($450.0 million face value) | 447,492 | — | 9.50% | 2019 | ||||||||||||||||
Other(2) | 14,876 | 34,911 | Various | Various | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total debt | 2,778,832 | 2,416,165 | ||||||||||||||||||
Less: current debt(2) | (9,210 | ) | (18,793 | ) | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total long-term debt | $ | 2,769,622 | $ | 2,397,372 | ||||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
-1 | ||||||||||||||||||||
As of December 31, 2013, the revolving credit facility interest rate was tied to LIBOR or CDOR, plus a credit spread of 550 basis points and includes a commitment fee of 0.5% on the unused facility. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
This balance includes capital lease obligations (see Note 18) and an equipment financing agreement. | ||||||||||||||||||||
The Company's minimum debt repayment schedule, excluding interest, as of December 31, 2013 is as follows (in thousands): | ||||||||||||||||||||
Payments Due | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||
2011 term loan A | $ | — | $ | 305,941 | $ | 100,625 | $ | — | $ | — | $ | — | ||||||||
2011 term loan B | — | — | — | — | 978,178 | — | ||||||||||||||
9.875% senior notes | — | — | — | — | — | 500,000 | ||||||||||||||
8.50% senior notes | — | — | — | — | — | 450,000 | ||||||||||||||
9.50% senior secured notes | — | — | — | — | — | 450,000 | ||||||||||||||
Other debt | 9,210 | 5,609 | 57 | — | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
$ | 9,210 | $ | 311,550 | $ | 100,682 | $ | — | $ | 978,178 | $ | 1,400,000 | |||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
9.875% Senior Notes due 2020 | ||||||||||||||||||||
On November 21, 2012, we issued $500.0 million in aggregate principal amount of 9.875% senior notes due December 15, 2020 (the "2020 Notes") at an initial price of 99.302% of their face amount. The 2020 Notes are unconditionally guaranteed, jointly and severally, on an unsecured basis, by each of our current and future wholly-owned domestic restricted subsidiaries. Interest on the 2020 Notes accrues at the rate of 9.875% per year and is payable semi-annually in arrears on June 15 and December 15, beginning on June 15, 2013. | ||||||||||||||||||||
At any time prior to December 15, 2015, we may redeem up to 35% of the aggregate principal amount of the 2020 Notes with the net cash proceeds of certain equity offerings at a redemption price of 109.875% of the aggregate principal amount. We may redeem the 2020 Notes, in whole or in part, at any time prior to December 15, 2016, at a price equal to 100% of the aggregate principal amount of the 2020 Notes plus a "make-whole" premium, plus accrued and unpaid interest. We may redeem the 2020 Notes, in whole or in part, at any time during the year commencing December 15, 2016, at 104.938% of the aggregate principal amount of the 2020 Notes, at any time during the year commencing December 15, 2017, at 102.469% of the aggregate principal amount of the 2020 Notes, and at any time after December 15, 2018, at 100% of the aggregate principal amount of the 2020 Notes, in each case plus accrued and unpaid interest. Upon the occurrence of a change of control, unless the Company has exercised its right to redeem the 2020 Notes, the Company will be required to offer to repurchase each holder's 2020 Notes at a price equal to 101% of the aggregate principal amount. The unamortized balance of the debt issuance discount of $3.2 million at December 31, 2013, will be accreted to interest expense over the life of the 2020 Notes using the effective interest method. | ||||||||||||||||||||
8.50% Senior Notes due 2021 | ||||||||||||||||||||
On March 27, 2013, the Company issued $450.0 million aggregate principal amount of 8.50% senior notes due April 15, 2021 (the "2021 Notes"). The 2021 Notes are unconditionally guaranteed, jointly and severally, on an unsecured basis, by each of our current and future wholly-owned domestic restricted subsidiaries that from time to time guarantees any of our indebtedness or any indebtedness of our restricted subsidiaries. Interest on the 2021 Notes is payable semi-annually in arrears on April 15 and October 15 of each year, commencing on October 15, 2013. | ||||||||||||||||||||
A portion of the proceeds from the 2021 Notes was used to repurchase $250.0 million of Term Loan A and B debt on a pro-rata basis. The Company expensed $6.0 million of previously capitalized debt issuance costs as a result of the early extinguishment of a portion of the Term Loan A and B debt. The write-off of debt issuance costs is included in interest expense in the Consolidated Statements of Operations. | ||||||||||||||||||||
At any time prior to April 15, 2016, the Company may redeem up to 35% of the aggregate principal amount of the 2021 Notes with the net cash proceeds of certain equity offerings, at a redemption price of 108.50% of the aggregate principal amount. The Company may redeem the 2021 Notes, in whole or in part, prior to April 15, 2017, at a redemption price equal to 100% of the aggregate principal amount of the 2021 Notes plus a "make-whole" premium. The Company may redeem the 2021 Notes, in whole or in part at redemption prices equal to 104.25% for the year commencing April 15, 2017, 102.125% for the year commencing April 15, 2018 and 100% beginning on April 15, 2019. Upon the occurrence of a change of control, unless the Company has exercised its right to redeem the 2021 Notes, the Company will be required to offer to repurchase each holder's 2021 Notes at a price equal to 101% of the aggregate principal amount. | ||||||||||||||||||||
9.50% Senior Secured Notes due 2019 | ||||||||||||||||||||
On September 27, 2013, the Company issued $450.0 million aggregate principal amount of 9.50% senior secured notes due October 15, 2019 (the "2019 Notes"). The 2019 Notes are guaranteed, jointly and severally, by each of our current and future wholly-owned domestic restricted subsidiaries that from time to time guarantees any of our indebtedness or any indebtedness of any of our restricted subsidiaries. The 2019 Notes and related guarantees are secured on a first priority basis by substantially all of the property and assets of the Company and the guarantors. Interest on the 2019 Notes is payable semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2014. | ||||||||||||||||||||
The Company used $245.7 million of the proceeds from the 2019 Notes to extinguish $250.0 million of Term Loan A debt through a Dutch Auction process. The gain on partial extinguishment of Term Loan A debt of $4.3 million is included in other income (loss) in the Consolidated Statements of Operations. Additionally, the Company expensed $5.2 million of previously capitalized debt issuance costs as a result of the early extinguishment of the Term Loan A debt. The write-off of debt issuance costs is included in interest expense in the Consolidated Statements of Operations. | ||||||||||||||||||||
The terms of the 2019 Notes provide that at any time prior to October 15, 2016, the Company may redeem up to 35% of the aggregate principal amount of the 2019 Notes with the net cash proceeds of certain equity offerings, at a redemption price of 109.5% of the aggregate principal amount. The Company may redeem the 2019 Notes, in whole or in part, prior to October 15, 2016, at a redemption price equal to 100% of the aggregate principal amount of the 2019 Notes plus a "make-whole" premium. The Company may redeem the 2019 Notes, in whole or in part at redemption prices equal to 107.125% for the year commencing October 15, 2016, 102.375% for the year commencing October 15, 2017 and 100% beginning on October 15, 2018. Upon the occurrence of a change of control, unless the Company has exercised its right to redeem the 2019 Notes, the Company will be required to offer to repurchase each holder's 2019 Notes at a price equal to 101% of the aggregate principal amount. The unamortized balance of the debt issuance discount of $2.5 million at December 31, 2013, will be accreted to interest expense over the life of the 2019 Notes using the effective interest method. | ||||||||||||||||||||
2011 Credit Agreement | ||||||||||||||||||||
On April 1, 2011, we entered into a $2.725 billion credit agreement (the "2011 Credit Agreement") to partially fund the acquisition of Western Coal and to pay off all outstanding loans under the 2005 Credit Agreement. The 2011 Credit Agreement consists of (1) a $950.0 million principal amortizing term loan A facility maturing in April 2016, at which time the remaining outstanding principal is due, (2) a $1.4 billion principal amortizing term loan B facility maturing in April 2018, at which time the remaining outstanding principal is due and (3) a $375.0 million multi-currency revolving credit facility ("Revolver") maturing in April 2016, at which time any remaining balance is due. The Revolver provides for operational needs and letters of credit. Our obligations under the 2011 Credit Agreement are secured by our domestic and foreign real, personal and intellectual property. The 2011 Credit Agreement contains customary events of default and covenants, including among other things, covenants that do not prevent but restrict us and our subsidiaries' ability to incur certain additional indebtedness, create or permit liens on assets, pay dividends and repurchase stock, engage in mergers or acquisitions, and make investments and loans. The 2011 Credit Agreement also includes certain financial covenants that must be maintained. As of December 31, 2013, the Company is in compliance with all required covenants. | ||||||||||||||||||||
Credit Agreement Amendments | ||||||||||||||||||||
During 2012, the Company completed the first three amendments to the 2011 Credit Agreement and in 2013 completed the Fourth and Fifth Amendments to the 2011 Credit Agreement (collectively the "Amendments"). These Amendments provided for, among other things : (1) increased the revolver sublimit in Canada from $150 million to $275 million, (2) increased interest margins of 2.5%-3.0% from their original levels and the leverage ratios at which the interest rate margins step down were increased, (3) the Company may subtract from total indebtedness unrestricted cash and cash equivalents in an aggregate amount not to exceed $240.0 million plus the current portion of any indebtedness outstanding on such date in calculating its leverage ratio; (4) the Company may incur secured notes in lieu of secured credit facilities under the Company's incremental facility; (5) increased the general investment basket to $325 million; (6) permitted acquisitions and unlimited unsecured debt are subject to compliance with a 4.50:1.0 total leverage ratio; (7) additional flexibility for the Company to issue additional $1 billion of senior unsecured debt, subject to 100% of the net proceeds of any such incurrence of debt in excess of $250 million be used to repay term loans then outstanding under the 2011 Credit Agreement; (8) a less restrictive interest expense coverage ratio and suspension of compliance requirements until March 31, 2015; (9) a less restrictive senior secured leverage ratio and suspension of compliance requirements until June 30, 2014; (10) an additional minimum liquidity covenant of $225 million that applies at the end of each fiscal quarter through June 30, 2014 and at any time thereafter when the senior secured leverage ratio is greater than 5.50:1.00; (11) an additional capital expenditures covenant limiting capital expenditures to $175 million in 2013 and $200 million in 2014 with a potential that up to $20 million in unused 2013 capital spending may be carried forward and utilized to increase the 2014 capital spending limit up to $220 million; and (12) a restriction on cash dividends allowed in any fiscal quarter when the secured leverage ratio exceeds 4.50:1.00. | ||||||||||||||||||||
As of December 31, 2013, the Revolver, term loan A and term loan B interest rates were tied to LIBOR or CDOR, plus a credit spread of 550 basis points for the Revolver and term loan A debt and 575 basis points on the term loan B debt, adjusted quarterly based on the Company's total leverage ratio as defined by the amended 2011 Credit Agreement. The term loan B has a minimum LIBOR floor of 1.0%. The Revolver loans can be denominated in either U.S. dollars or Canadian dollars at our option. The commitment fee on the unused portion of the Revolver is 0.5% per year for all pricing levels. | ||||||||||||||||||||
As of December 31, 2013, there were no borrowings outstanding under the Revolver, with $326.5 million available under the Company's $375 million revolving credit facility, net of outstanding letters of credit of $48.5 million. | ||||||||||||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||||||||||
NOTE 15—Employee Benefit Plans | |||||||||||||||||||||||||
The Company has various defined benefit pension plans covering certain U.S. salaried employees and eligible hourly employees. In addition to its own pension plans, the Company contributes to a multi-employer defined benefit pension plan covering eligible employees who are represented by the United Mine Workers of America ("UMWA"). 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. | |||||||||||||||||||||||||
Defined Benefits Pension and Other Postretirement Benefit Plans | |||||||||||||||||||||||||
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 January 1, 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. As of December 31, 2013 all of our pension plans, with the exception of the Salaried Pension Plan, have obligations that exceed plan assets and as of December 31, 2012 all of our pension plans were underfunded. The amounts recognized for all of the Company's pension and postretirement benefit plans are as follows (in thousands): | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Accumulated benefit obligation | $ | 247,874 | $ | 278,357 | $ | 600,748 | $ | 662,464 | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 295,944 | $ | 258,780 | $ | 662,464 | $ | 577,918 | |||||||||||||||||
Service cost | 7,062 | 5,991 | 9,943 | 8,072 | |||||||||||||||||||||
Interest cost | 12,280 | 12,517 | 28,791 | 29,010 | |||||||||||||||||||||
Actuarial (gain) loss | (37,873 | ) | 29,933 | (74,146 | ) | 71,451 | |||||||||||||||||||
Benefits paid | (11,763 | ) | (11,501 | ) | (26,304 | ) | (23,987 | ) | |||||||||||||||||
Plan amendments | — | 224 | — | — | |||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Benefit obligation at end of year | $ | 265,650 | $ | 295,944 | $ | 600,748 | $ | 662,464 | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 232,960 | $ | 202,537 | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets | 35,788 | 28,499 | — | — | |||||||||||||||||||||
Employer contributions | 780 | 13,425 | 26,304 | 23,987 | |||||||||||||||||||||
Benefits paid | (11,763 | ) | (11,501 | ) | (26,304 | ) | (23,987 | ) | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Fair value of plan assets at end of year | $ | 257,765 | $ | 232,960 | $ | — | $ | — | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Unfunded status of the plan | $ | (7,885 | ) | $ | (62,984 | ) | $ | (600,748 | ) | $ | (662,464 | ) | |||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Amounts recognized in the balance sheet, pre-tax: | |||||||||||||||||||||||||
Other long-term assets | $ | 1,260 | $ | — | $ | — | $ | — | |||||||||||||||||
Other current liabilities | (7,089 | ) | (5,744 | ) | — | — | |||||||||||||||||||
Accumulated postretirement benefits obligation | |||||||||||||||||||||||||
Current | — | — | (30,036 | ) | (29,200 | ) | |||||||||||||||||||
Long-term | — | — | (570,712 | ) | (633,264 | ) | |||||||||||||||||||
Other long-term liabilities | (2,056 | ) | (57,240 | ) | — | ||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Net amount recognized | $ | (7,885 | ) | $ | (62,984 | ) | $ | (600,748 | ) | $ | (662,464 | ) | |||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Amounts recognized in accumulated other comprehensive income, pre-tax | |||||||||||||||||||||||||
Prior service cost | $ | 994 | $ | 1,257 | $ | 7,641 | $ | 8,871 | |||||||||||||||||
Net actuarial loss | 48,331 | 114,787 | 238,693 | 331,775 | |||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Net amount recognized | $ | 49,325 | $ | 116,044 | $ | 246,334 | $ | 340,646 | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
The components of net periodic benefit cost are as follows (in thousands): | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||
For the years ended December 31, | For the years ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||
Service cost | $ | 7,062 | $ | 5,991 | $ | 5,163 | $ | 9,943 | $ | 8,072 | $ | 6,160 | |||||||||||||
Interest cost | 12,280 | 12,517 | 12,576 | 28,791 | 29,010 | 25,140 | |||||||||||||||||||
Expected return on plan assets | (16,941 | ) | (16,125 | ) | (15,717 | ) | — | — | — | ||||||||||||||||
Amortization of prior service cost (credit) | 263 | 256 | 272 | 1,230 | 1,045 | (961 | ) | ||||||||||||||||||
Amortization of net actuarial loss | 9,609 | 9,377 | 8,252 | 18,936 | 14,725 | 10,046 | |||||||||||||||||||
Settlement loss | — | — | 1,807 | — | — | — | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||
Net periodic benefit cost for continuing operations | $ | 12,273 | $ | 12,016 | $ | 12,353 | $ | 58,900 | $ | 52,852 | $ | 40,385 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | | | | | | | ||||||
The estimated portions of net prior service cost and net actuarial loss remaining in accumulated other comprehensive income that is expected to be recognized as components of net periodic benefit costs in 2014 are as follows (in thousands): | |||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
Prior service cost | $ | 246 | $ | 1,227 | |||||||||||||||||||||
Net actuarial loss | 2,566 | 15,570 | |||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||
Net amount to be recognized | $ | 2,812 | $ | 16,797 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||||
| | | | | | | | ||||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss) in 2013 are as follows (in thousands): | |||||||||||||||||||||||||
Pension Benefits | Other | Total | |||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
Current year net actuarial gain | $ | 56,721 | $ | 74,146 | $ | 130,867 | |||||||||||||||||||
Current year prior service cost | — | — | — | ||||||||||||||||||||||
Amortization of actuarial loss | 9,609 | 18,936 | 28,545 | ||||||||||||||||||||||
Amortization of prior service cost | 263 | 1,230 | 1,493 | ||||||||||||||||||||||
| | | | | | | | | | | |||||||||||||||
Total | 66,593 | 94,312 | 160,905 | ||||||||||||||||||||||
Deferred income taxes | (24,986 | ) | (35,027 | ) | (60,013 | ) | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||||
Total recognized in other comprehensive income (loss), net of taxes | $ | 41,607 | $ | 59,285 | $ | 100,892 | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||||
| | | | | | | | | | | |||||||||||||||
A summary of key assumptions used is as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations: | |||||||||||||||||||||||||
Discount rate | 5.24 | % | 4.29 | % | 5.02 | % | 5.28 | % | 4.44 | % | 5.14 | % | |||||||||||||
Rate of compensation increase | 3.7 | % | 3.7 | % | 3.7 | % | — | — | — | ||||||||||||||||
Weighted average assumptions used to determine net periodic cost: | |||||||||||||||||||||||||
Discount rate | 4.29 | % | 5.02 | % | 5.3 | % | 4.44 | % | 5.14 | % | 5.35 | % | |||||||||||||
Expected return on plan assets | 7.5 | % | 7.75 | % | 7.75 | % | — | — | — | ||||||||||||||||
Rate of compensation increase | 3.7 | % | 3.7 | % | 3.7 | % | — | — | — | ||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Pre-65 | Post-65 | Pre-65 | Post-65 | Pre-65 | Post-65 | ||||||||||||||||||||
Assumed health care cost trend rates at December 31: | |||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7 | % | 7 | % | 7.5 | % | 7.5 | % | 8 | % | 8 | % | |||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.5 | % | 4.5 | % | 5 | % | 5 | % | 5 | % | 5 | % | |||||||||||||
Year that the rate reaches the ultimate trend rate | 2027 | 2027 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||||||
The discount rate is based on a yield-curve approach which matches the expected cash flows to high quality corporate bonds available at the measurement date. The model constructs a hypothetical bond portfolio whose cash flows match the year-by-year, projected benefit cash flow from the benefit plan. The yield on this hypothetical portfolio is the maximum discount rate used. The yield curve is based on a universe of bonds available from the Bloomberg Finance bond database at the measurement date, with a quality rating of AA or better by Moody's or S&P. | |||||||||||||||||||||||||
The plan assets of the pension plans are held and invested by the Walter Energy, Inc. Subsidiaries Master Pension Trust ("Pension Trust"). The Pension Trust employs a total return investment approach whereby a mix of equity and fixed income investments are used to meet the long-term funding and near-term cash flow requirements of the pension plan. The asset mix strives to generate rates of return sufficient to fund plan liabilities and exceed the long-term rate of inflation, while maintaining an appropriate level of portfolio risk. Risk tolerance is established through consideration of plan liabilities, plan funded status and corporate financial condition. The investment portfolio is diversified across domestic and foreign equity holdings, and by investment styles and market capitalizations. Domestic equity holdings primarily consist of investments in funds invested in large-cap and mid-cap companies located in the United States managed to replicate the investment performance of industry standard investment indexes. Foreign equity holdings primarily consist of investments in domestically managed mutual funds located in the United States. Fixed income holdings are diversified by issuer, security type and principal and interest payment characteristics. Derivatives may be used to gain market exposure in an efficient and timely manner; however, derivatives may not be used to leverage the portfolio beyond the market value of the underlying investments. Fixed income and derivatives holdings primarily consist of investments in domestically managed mutual funds located in the United States. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual benefits liability measurements, and periodic asset/liability studies. Management believes the only significant concentration of investment risk lies in exposure to the U.S. domestic markets as compared with total global investment opportunities. | |||||||||||||||||||||||||
The Pension Trust's strategic asset allocation targets for 2013 and the asset allocations as of December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
Actual | |||||||||||||||||||||||||
Strategic | Tactical | Allocation | |||||||||||||||||||||||
Allocation | Range | 2013 | 2012 | ||||||||||||||||||||||
Equity investments: | |||||||||||||||||||||||||
U.S. large-cap funds | 38.5 | % | 30-47 | % | 39 | % | 37.3 | % | |||||||||||||||||
International fund | 13 | % | 16-Oct | % | 14.3 | % | 13.3 | % | |||||||||||||||||
U.S. mid-cap fund | 8.5 | % | 11-Jun | % | 9.7 | % | 9.6 | % | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Total equity investments | 60 | % | 50-70 | % | 63 | % | 60.2 | % | |||||||||||||||||
Fixed income investments | 40 | % | 30-50 | % | 36.5 | % | 39.2 | % | |||||||||||||||||
Cash | 0 | % | 0-5 | % | 0.5 | % | 0.6 | % | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
These ranges are targets and deviations may occur from time-to-time due to market fluctuations. Portfolio assets are typically rebalanced to the allocation targets at least annually. | |||||||||||||||||||||||||
The fair values of the Pension Trust's assets, all of which are valued based on quoted market prices in active markets for identified assets (Level 1), were as follows (in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
Asset Class: | 2013 | 2012 | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,224 | $ | 1,397 | |||||||||||||||||||||
Equity investments(a): | |||||||||||||||||||||||||
U.S. large cap funds | 100,384 | 86,892 | |||||||||||||||||||||||
International fund | 36,812 | 31,038 | |||||||||||||||||||||||
U.S. mid-cap fund | 25,143 | 22,368 | |||||||||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||||
Intermediate-term bond(b) | 34,091 | 85,814 | |||||||||||||||||||||||
Long-term bond(c) | 60,111 | 5,451 | |||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||
Total | $ | 257,765 | $ | 232,960 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||||
| | | | | | | | ||||||||||||||||||
(a) | |||||||||||||||||||||||||
Equity investments include investments in domestic and international mutual funds investing in large- and mid-capitalization companies. Investments in mutual funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date and are traded on listed exchanges. | |||||||||||||||||||||||||
(b) | |||||||||||||||||||||||||
This fund seeks maximum total return through a diversified portfolio of fixed income instruments of varying maturities, which may be represented by forward or derivatives such as options, futures, contracts, or swap agreements. Fixed income instruments include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public or private-sector entities. This fund also invests in high yield securities, mortgage-related securities and securities denominated in foreign currencies. This fund is valued at the net asset value per share multiplied by the number of shares held as of the measurement date and is traded on a listed exchange. | |||||||||||||||||||||||||
(c) | |||||||||||||||||||||||||
This fund invests in diversified portfolio consisting primarily of high-quality bonds and other fixed income securities, including U.S. government obligations, mortgage-and asset-backed securities, corporate and municipal bonds, and collateralized mortgage obligations of varying maturities. This fund is valued at the net asset value per share multiplied by the number of shares held as of the measurement date and is traded on a listed exchange. | |||||||||||||||||||||||||
The expected long-term return on assets of the Pension Trust is established at the beginning of each year by the Company's Benefits Committee in consultation with the plans' actuaries and outside investment advisor. A building block approach is used in determining the long-term rate of return for plan assets. Historical market returns are studied and long-term risk/return relationships between equity and fixed income asset classes are analyzed. This analysis supports the widely accepted fundamental investment principle that assets with greater risk generate higher returns over long periods of time. The historical impact of returns in one asset class on returns of another asset class is reviewed to evaluate portfolio diversification benefits. Current market factors including inflation rates and interest rate levels are considered before assumptions are developed. The long-term portfolio return is established via the building block approach by adding interest rate risk and equity risk premiums to the anticipated long-term rate of inflation. Proper consideration is given to the importance of portfolio diversification and periodic rebalancing. Peer data and historical return assumptions are reviewed to check for reasonableness. For the determination of net periodic benefit cost in 2014, the Company will utilize an expected long-term return on plan assets of 7.25%. | |||||||||||||||||||||||||
Assumed healthcare cost trend rates, discount rates, expected return on plan assets and salary increases have a significant effect on the amounts reported for the pension and healthcare plans. A one-percentage-point change in the rate for each of these assumptions would have had the following effects as of and for the year ended December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Increase (Decrease) | |||||||||||||||||||||||||
1-Percentage | 1-Percentage | ||||||||||||||||||||||||
Point Increase | Point Decrease | ||||||||||||||||||||||||
Healthcare cost trend: | |||||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 7,468 | $ | (5,790 | ) | ||||||||||||||||||||
Effect on postretirement benefit obligation | $ | 78,720 | $ | (65,091 | ) | ||||||||||||||||||||
Discount rate: | |||||||||||||||||||||||||
Effect on postretirement service and interest cost components | $ | (297 | ) | $ | 293 | ||||||||||||||||||||
Effect on postretirement benefit obligation | $ | (67,637 | ) | $ | 83,447 | ||||||||||||||||||||
Effect on current year postretirement expense | $ | (6,140 | ) | $ | 7,638 | ||||||||||||||||||||
Effect on pension service and interest cost components | $ | 159 | $ | (272 | ) | ||||||||||||||||||||
Effect on pension benefit obligation | $ | (27,881 | ) | $ | 33,879 | ||||||||||||||||||||
Effect on current year pension expense | $ | (2,978 | ) | $ | 3,547 | ||||||||||||||||||||
Expected return on plan assets: | |||||||||||||||||||||||||
Effect on current year pension expense | $ | (2,259 | ) | $ | 2,259 | ||||||||||||||||||||
Rate of compensation increase: | |||||||||||||||||||||||||
Effect on pension service and interest cost components | $ | 631 | $ | (557 | ) | ||||||||||||||||||||
Effect on pension benefit obligation | $ | 4,929 | $ | (4,463 | ) | ||||||||||||||||||||
Effect on current year pension expense | $ | 1,058 | $ | (948 | ) | ||||||||||||||||||||
The Company's minimum pension plan funding requirement for 2014 is approximately $1.1 million, which the Company expects to fully fund. The Company also expects to pay $30.0 million in 2014 for benefits related to its other postretirement benefit plans. The following estimated benefit payments from the plans, which reflect expected future service as appropriate, are expected to be paid as follows (in thousands): | |||||||||||||||||||||||||
Pension | Other | Medicare | |||||||||||||||||||||||
Benefits | Postretirement | Part D | |||||||||||||||||||||||
Benefits Before | Subsidy | ||||||||||||||||||||||||
Medicare | |||||||||||||||||||||||||
Subsidy | |||||||||||||||||||||||||
2014 | $ | 20,326 | $ | 32,158 | $ | 2,121 | |||||||||||||||||||
2015 | $ | 14,820 | $ | 34,127 | $ | 2,391 | |||||||||||||||||||
2016 | $ | 14,772 | $ | 36,056 | $ | 2,650 | |||||||||||||||||||
2017 | $ | 15,814 | $ | 37,921 | $ | 2,921 | |||||||||||||||||||
2018 | $ | 16,516 | $ | 39,824 | $ | 3,222 | |||||||||||||||||||
Years 2019-2023 | $ | 92,643 | $ | 217,871 | $ | 20,982 | |||||||||||||||||||
UMWA Pension and Benefit Trusts | |||||||||||||||||||||||||
The Company is required under its agreement with the UMWA to contribute to multi-employer plans providing pension, healthcare and other postretirement benefits. The risks of participating in these multi-employer plans are different from single-employer plans in the following aspects: | |||||||||||||||||||||||||
• | |||||||||||||||||||||||||
Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. | |||||||||||||||||||||||||
• | |||||||||||||||||||||||||
If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. | |||||||||||||||||||||||||
• | |||||||||||||||||||||||||
The Employee Retirement Income Security Act of 1974 ("ERISA"), as amended in 1980, imposes certain liabilities on contributors to multi-employer pension plans in the event of a contributor's withdrawal from the plan. | |||||||||||||||||||||||||
At December 31, 2013, approximately 41% of Walter Energy's workforce was represented by the UMWA and covered under our collective bargaining agreement which began July 11, 2012 and expires December 31, 2016. | |||||||||||||||||||||||||
UMWA 1974 Pension Plan | |||||||||||||||||||||||||
The Company is required under the agreement with the UMWA to pay amounts to the 1974 UMWA Pension Plan ("the 1974 Pension Plan") based principally on hours worked by UMWA represented employees. The required contribution called for by our current collective bargaining agreement is $5.50 per hour worked. This cost is recognized as an expense in the year the payments are assessed. The benefits provided by the 1974 Pension Plan to the participating employees are determined based on age and years of service at retirement. The Company was listed in the 1974 Pension Plan's Form 5500, filed April 15, 2013, as providing more than 5 percent of the total contributions for the 2012 plan year. | |||||||||||||||||||||||||
As of June 30, 2013, the most recent date for which information is available, the 1974 Pension Plan was underfunded. This determination was made in accordance with ERISA calculations. In October 2013, the Company received notice from the trustees of the 1974 Pension Plan stating that the plan is considered to be "seriously endangered" for the plan year beginning July 1, 2013. The Pension Protection Act ("Pensions Act") requires a funded percentage of 80% be maintained for this multi-employer pension plan. If the plan is determined to have a funded percentage of less than 80% it will be deemed to be "endangered." The plan will be considered "seriously endangered", if the number of years to reach a projected funding deficiency equals 7 or less in addition to having a funded percentage of less than 80%, and if less than 65%, it will be deemed to be in "critical" status. The funded percentage certified by the actuary for the 1974 Pension Plan was determined to be 71.2% under the Pension Act. | |||||||||||||||||||||||||
The Company faces risks and uncertainties by participating in the 1974 Pension Plan. All assets contributed to the plan are pooled and available to provide benefits for all participants and beneficiaries. As a result, contributions made by the Company benefit the employees of other employers. If the 1974 Pension Plan fails to meet ERISA's minimum funding requirements or fails to develop and adopt a rehabilitation plan, a nondeductible excise tax of five percent of the accumulated funding deficiency may be imposed on an employer's contribution to this multi-employer pension plan. As a result of the 1974 Pension Plan's "seriously endangered" status, steps must be taken to improve the funded status of the plan. In an effort to improve the plan's funding situation, the plan adopted a Funding Improvement Plan as of May 25, 2012. The Funding Improvement Plan states that the plan must avoid a funding deficiency for any plan year during the funding improvement period and improve the plan's funded status by at least 20% over a 15-year period. The Funding Improvement Period begins July 1, 2014 and ends June 30, 2029. The Funding Improvement Plan calls for increased contributions beginning January 1, 2017 and lasting throughout the improvement period so that the plan can meet the applicable benchmarks and emerge from seriously endangered status by the end of the Funding Improvement Period. The Funding Improvement Plan and the corresponding contribution schedules were updated on April 26, 2013, to reflect the experience of the plan. | |||||||||||||||||||||||||
Under current law governing multi-employer defined benefit plans, if the Company voluntarily withdrew from the 1974 Pension Plan, the Company would be required to make payments to the plan which would approximate the proportionate share of the multiemployer plan's unfunded vested benefit liabilities at the time of the withdrawal. The 1974 Pension Plan uses a modified "rolling five" year allocation method for calculating an employer's withdrawal liability share of the unfunded vested benefits. An employer would be obligated to pay its pro-rata share of the unfunded vested benefits based on the ratio of hours worked by the employer's employees during the previous five plan years for which contributions were due compared to the number of hours worked by all the employees of the employers from which contributions were due. The 1974 Pension Plan's unfunded vested benefits at June 30, 2013 was $5.4 billion. The Company's percentage of hours worked during the previous five plan years to the total hours worked by all plan participants during the same period was estimated to be approximately 14%. The Company does not have any intention to withdraw from the plan; however, if we were to withdraw from the plan before July 1, 2014, the Company's estimated withdrawal liability would be approximately $760.0 million. | |||||||||||||||||||||||||
The following table provides additional information regarding the 1974 Pension Plan as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Pension | Contributions of Walter | ||||||||||||||||||||||||
Protection Act | Energy | ||||||||||||||||||||||||
EIN/Pension | Zone Status | FIP/RP Status | Surcharge | Expiration Date of | |||||||||||||||||||||
Plan Number | Pending/Implemented | Imposed | Collective-Bargaining | ||||||||||||||||||||||
Pension Fund | 2013 | 2012 | 2013 | 2012 | 2011 | Agreement | |||||||||||||||||||
United Mine Workers of America 1974 Pension Plan(1) | 52-1050282/002 | Yellow | Yellow | Yes | $ | 19,670 | $ | 20,948 | $ | 19,520 | No | 12/31/16 | |||||||||||||
-1 | |||||||||||||||||||||||||
The enrolled actuary for the 1974 Pension Plan certified to the U.S. Department of the Treasury and the plan sponsor that the plan is in "Seriously Endangered Status" for the plan year beginning July 1, 2013 and ending June 30, 2014. The plan adopted a funding improvement plan on May 25, 2012. | |||||||||||||||||||||||||
UMWA Benefit Trusts | |||||||||||||||||||||||||
The Coal Industry Retiree Health Benefit Act of 1992 ("Coal Act") created two multiemployer benefit plans: (1) the United Mine Workers of America Combined Benefit Fund ("Combined Fund") into which the former UMWA Benefit Trusts were merged, and (2) the 1992 Benefit Fund. The Combined Fund provides medical and death benefits for all beneficiaries of the former UMWA Benefit Trusts who were actually receiving benefits as of July 20, 1992. The 1992 Benefit Fund provides medical and death benefits to orphan UMWA-represented members eligible for retirement on February 1, 1993, and who actually retired between July 20, 1992 and September 30, 1994. The Coal Act provides for the assignment of beneficiaries to former employers and the allocation of unassigned beneficiaries (referred to as orphans) to companies using a formula set forth in the Coal Act. The Coal Act requires that responsibility for funding the benefits to be paid to beneficiaries, be assigned to their former signatory employers or related companies. This cost is recognized as an expense in the year the payments are assessed. The Company's contributions to these funds for the years ended December 31, 2013, 2012 and 2011 were insignificant. | |||||||||||||||||||||||||
The UMWA 1993 Benefit Plan is a defined contribution plan that was created as the result of negotiations for the National Bituminous Coal Wage Agreement (NBCWA) of 1993. This plan provides healthcare benefits to orphan UMWA retirees who are not eligible to participate in the Combined Fund, the 1992 Benefit Fund or whose last employer signed the 1993, or a later, NBCWA and subsequently goes out of business. Contributions to the trust under the 2011 labor agreement were $1.10 per hour worked by UMWA represented employees for the years ended December 31, 2013, 2012 and 2011. Total contributions to the UMWA 1993 Benefit Plan in 2013, 2012 and 2011 were $3.9 million, $4.2 million and $1.8 million, respectively. | |||||||||||||||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity | ' |
Stockholders' Equity | ' |
NOTE 16—Stockholders' Equity | |
In 2009, shareholders voted to grant the Company the authority to issue 20,000,000 shares of preferred stock, at a par value of $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. | |
On April 1, 2011, the Company issued 8,951,558 common shares valued at $1.2 billion in connection with the acquisition of Western Coal as described in Note 3. | |
In connection with the acquisition of Western Coal, the Company assumed all the outstanding warrants of Western Coal (see Note 3). Upon exercise, the outstanding Western Coal warrants entitle the holder to receive cash and shares of Walter Energy common stock that would have been issued if the warrants had been exercised immediately before closing of the acquisition. All the warrants were exercised (or expired) during the year ended December 31, 2012, resulting in a cash payment of $11.5 million and the issuance of 18,938 shares of common stock. | |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Net Income (Loss) Per Share | ' | |||||||||||||||||||
Net Income (Loss) Per Share | ' | |||||||||||||||||||
NOTE 17—Net Income (Loss) Per Share | ||||||||||||||||||||
A reconciliation of the basic and diluted net income (loss) per share computations for the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands, except per share data): | ||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||
Numerator: | ||||||||||||||||||||
Income (loss) from continuing operations | $ | (359,003 | ) | $ | (359,003 | ) | $ | (1,065,555 | ) | $ | (1,065,555 | ) | $ | 363,598 | $ | 363,598 | ||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Income from discontinued operations | $ | — | $ | — | $ | 5,180 | $ | 5,180 | $ | — | $ | — | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Denominator: | ||||||||||||||||||||
Average number of common shares outstanding | 62,564 | 62,564 | 62,536 | 62,536 | 60,257 | 60,257 | ||||||||||||||
Effect of dilutive securities | ||||||||||||||||||||
Stock awards and warrants(a) | — | — | — | — | — | 354 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
62,564 | 62,564 | 62,536 | 62,536 | 60,257 | 60,611 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | $ | (5.74 | ) | $ | (5.74 | ) | $ | (17.04 | ) | $ | (17.04 | ) | $ | 6.03 | $ | 6 | ||||
Income from discontinued operations | — | — | 0.08 | 0.08 | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) per share | $ | (5.74 | ) | $ | (5.74 | ) | $ | (16.96 | ) | $ | (16.96 | ) | $ | 6.03 | $ | 6 | ||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
(a) | ||||||||||||||||||||
Stock awards represent 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. In periods of net loss, the number of shares used to calculate diluted earnings per share is the same as basic earnings per share; therefore, the effect of dilutive securities is zero for such periods. The weighted average number of stock options and restricted stock units outstanding of 539,682, 238,210, and 31,511 for the years ended December 31, 2013, 2012 and 2011, respectively, were excluded because their effect would have been anti-dilutive. | ||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies | ' | |||||||
Commitments and Contingencies | ' | |||||||
NOTE 18—Commitments and Contingencies | ||||||||
Income Tax Litigation | ||||||||
The Company is currently engaged in litigation with the IRS with regard to certain federal income tax issues. See Note 11 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, Inc. | ||||||||
Walter Coke entered into a decree order in 1989 ("the 1989 Order") relative to a Resource Conservation Recovery Act ("RCRA") compliance program mandated by the Environmental Protection Agency ("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. In 2004, the EPA re-directed Walter Coke's RFI efforts toward completion of the Environmental Indicator ("EI") determinations for the Current Human Exposures, which were approved and finalized for Walter Coke's Birmingham facility in 2005. In 2008, as a follow-up to the EI determination, the EPA requested that Walter Coke perform additional soil sampling and testing in the neighborhoods surrounding its facility. The results of this sampling and testing were submitted to the EPA for review in 2009. In conjunction with the plan, Walter Coke agreed to remediate portions of 23 properties based on the 2009 sampling and that process was completed in 2012. | ||||||||
In 2011, the EPA notified Walter Coke in the form of a General Notice Letter that it proposed that the offsite remediation project be classified and managed as a Superfund site under CERCLA, allowing other Potentially Responsible Parties (PRP's) to potentially be held responsible. Under CERCLA authority, the EPA proceeded directly with the offsite sampling work and deferred any further enforcement actions or decisions. In March 2013, the EPA released the North Birmingham Air Toxics Risk Assessment showing the air quality around Company facilities to be acceptable. In August 2013, the Agency for Toxic Substances and Disease Registry (ATSDR) released a report concerning past, present and future exposures to residential soils in North Birmingham and concluded that there is no public health hazard. In September 2013, EPA sent an "Offer to Conduct Work" letter to Walter Coke and four other PRP's notifying them that EPA had completed sampling at 1,100 residential properties and that 400 properties exceeded Regional Removal Management Levels (RML's) and offered the PRP's an opportunity to cleanup 50 Phase I properties. The Company has notified the EPA that it has declined the Offer to Conduct Work. | ||||||||
A RCRA Section 3008(h) Administrative Order on Consent ("the 2012 Order") with the effective date of September 24, 2012 was signed by Walter Coke and the EPA. The 2012 Order declared that all of the approved investigation tasks of the RFI Work Plans required by the 1989 Order had been completed by Walter Coke and that the 1989 Order was terminated and no longer in effect. The objectives of the 2012 Order are to perform Corrective Measure Studies, implement remedies if necessary, and implement and maintain institutional controls if required at the Walter Coke facility. | ||||||||
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 under the RFI and the residential soil sampling conducted by Walter Coke in the neighborhoods surrounding its facility. At December 31, 2013, the Company had an amount accrued that is probable and can be reasonably estimated for the costs to be incurred to identify and define remediation actions, as well as to perform certain remedial tasks which can be quantified. The amount of this accrual was not material to the Company's consolidated financial statements. While it is probable that the Company will incur additional future costs to remediate environmental liabilities at the Walter Coke facility, the amount of such additional costs cannot be reasonably estimated at this time. Although no assurances can be given that the Company will not be required in the future to make material expenditures relating to the Walter Coke site or other sites, management does not believe at this time that the cleanup costs, if any, associated with these sites will have a material adverse effect on the Company's consolidated financial statements, but such cleanup costs could be material to the Company's results of operations in a future reporting period. | ||||||||
In 2011, the Company and Walter Coke were named in a suit filed by Louise Moore (Louise Moore v. Walter Energy, Inc. and Walter Coke, Inc., Case No. 2:11-CV-01391) in the federal District Court for the Northern District of Alabama. This is a putative civil class action alleging state law tort claims arising from the alleged presence on properties of substances, including arsenic, BaP, and other hazardous substances, allegedly as a result of current and/or historic operations in the area conducted by the defendants and/or their predecessors. Subsequently, the plaintiff filed an amended complaint eliminating Walter Energy as a defendant and amending the claims alleged against Walter Coke to relate to Walter Coke's alleged conduct for the period commencing after March 2, 1995. Thereafter, Walter Coke filed a Motion to Dismiss the amended complaint. On September 28, 2012, the Court issued a memorandum opinion and order granting in part and denying in part the motion. In partially granting Walter Coke's motion, the Court held that the plaintiff's claim for injunctive relief was not valid and that class action-related claims must be dismissed (with leave to re-plead) due to an improperly defined class. In partially ruling for the plaintiff, the Court held that at the pleading stage the plaintiff's claims could not be dismissed on rule of repose grounds or due to insufficient pleading. The plaintiff filed an amended complaint on October 29, 2012. On November 19, 2012, Walter Coke filed an answer and motion for partial dismissal of plaintiff's second amended complaint. The Court held a hearing on Walter Coke's motion for partial dismissal of the second amended complaint on January 10, 2013. On September 30, 2013, the Court issued a memorandum opinion and order denying the motion. On November 1, 2013, a joint motion to stay proceeding was filed with the Court, which the Court granted on November 21, 2013. As a result of the Court's action, the case is currently stayed. The Company believes that there is no merit to the claims alleged in this action and intends to vigorously defend this matter. | ||||||||
Securities Class Actions and Shareholder Derivative Actions | ||||||||
On January 26, 2012 and March 15, 2012, putative class actions were filed against Walter Energy, Inc. and some of its current and former senior executive officers in the U.S. District Court for the Northern District of Alabama (Rush v. Walter Energy, Inc., et al.). The three executive officers named in the complaints are: Keith Calder, Walter's former CEO; Walter Scheller, the Company's current CEO and a director; and Neil Winkelmann, former President of Walter's Canadian and U.K. Operations (collectively the "Individual Defendants"). The complaints were filed by Peter Rush and Michael Carney, purported shareholders of Walter Energy who each seek to represent a class of Walter Energy shareholders who purchased common stock between April 20, 2011 and September 21, 2011. | ||||||||
These complaints allege that Walter Energy and the Individual Defendants made false and misleading statements regarding the Company's operations outlook for the second quarter of 2011. The complaints further allege that the Company and the Individual Defendants knew that these statements were misleading and failed to disclose material facts that were necessary in order to make the statements not misleading. Plaintiffs claimed violations of Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 promulgated thereunder, and Section 20(a) of the 1934 Act. On May 30, 2012, the two actions were consolidated into In re Walter Energy, Inc. Securities Litigation. The court also appointed the Government of Bermuda Contributory and Public Service Superannuation Pension Plans as well as the Stephen C. Beaulieu Revocable Trust to be lead plaintiffs and approved lead plaintiffs' selection of Robbins Geller Rudman & Dowd LLP and Kessler Topaz Meltzer & Check, LLP as lead plaintiffs' counsel for the consolidated action. On August 20, 2012, Lead Plaintiffs filed a consolidated amended class action complaint in this action. The consolidated amended complaint names as an additional defendant Joseph Leonard, a current director and former interim CEO of Walter Energy, in addition to the previously named defendants. Defendants filed a Motion to Dismiss the amended complaint on October 4, 2012. On January 29, 2013, the court denied that motion without prejudice. Defendants answered the complaint on February 15, 2013 and on March 5, 2013. The parties are now in the process of discovery. | ||||||||
Walter Energy and the other named defendants believe that there is no merit to the claims alleged and intend to vigorously defend these actions. | ||||||||
On February 7, 2012, a shareholder derivative lawsuit was filed in the 10th Judicial Circuit of Alabama (Israni v. Clark et al.). On February 10, 2012, a second shareholder derivative suit was filed in the same court (Himmel v. Scheller et al.), and on February 16, 2012 a third derivative suit was filed (Walters v. Scheller et al.). All three complaints named as defendants the Company's then current Board of Directors, Keith Calder and Neil Winkelmann. The Company was named as a nominal defendant in each complaint. The three complaints allege similar claims to those alleged in the Rush complaint. The complaints variously assert state law claims for breaches of fiduciary duties for alleged failures to maintain internal controls and to properly manage the Company, unjust enrichment, waste of corporate assets, gross mismanagement and abuse of control. The three derivative actions seek among other things, recovery for the Company for damages that the Company suffered as a result of alleged wrongful conduct. On April 11, 2012, the Court consolidated these shareholder derivative suits. Walter Energy thereafter entered into a stipulation with the lead plaintiffs in the consolidated derivative suit, pursuant to which all proceedings in the derivative action were stayed pending the filing of the consolidated amended complaint in the class action. On September 19, 2012, lead plaintiffs filed a consolidated shareholder derivative complaint. This action has been stayed pending the resolution of summary judgment motions in the putative securities class action. The derivative plaintiffs will have certain rights to participate in discovery taken in the federal securities action. | ||||||||
On March 1, 2012, a shareholder derivative lawsuit was filed in the U.S. District Court for the Northern District of Alabama (Makohin v. Clark, et al.). On September 27, 2012 a second shareholder derivative lawsuit was filed in the same court (Sinerius v. Beatty, et al.). Both complaints name as defendants the Company's then current Board of Directors and Keith Calder. The Company is named as a nominal defendant in each complaint. These complaints, like the state court derivative claims, allege similar facts to those alleged in the Rush complaint. The Makohin complaint asserts state law claims for breaches of fiduciary duties and unjust enrichment, while the Sinerius complaint asserts these same claims as well as claims for abuse of control and gross mismanagement. Both actions seek, among other things, recovery for the Company for damages that the Company suffered as a result of alleged wrongful conduct and restitution from defendants of all profits, benefits and other compensation that they wrongfully obtained. Like the state court derivative action, both of these cases have been stayed pending resolution of summary judgment motions in the putative securities class action. The federal derivative plaintiffs will also have certain rights to participate in discovery taken in the federal securities action. | ||||||||
Walter Energy and the other named defendants believe that there is no merit to the claims alleged in these shareholder derivative lawsuits and intend to vigorously defend these actions. | ||||||||
Miscellaneous Litigation | ||||||||
The Company and its subsidiaries are parties to a number of other lawsuits arising in the ordinary course of their businesses. The Company records costs relating to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on the Company's future results of operations cannot be predicted with certainty as any such effect depends on future results of operations and the amount and timing of the resolution of such matters. While the results of litigation cannot be predicted with certainty, the Company believes that the final outcome of such other litigation will not have a material adverse effect on the Company's consolidated financial statements. | ||||||||
Commitments and Contingencies—Other | ||||||||
In the opinion of management, accruals associated with contingencies incurred in the normal course of business are sufficient. Resolution of existing known contingencies is not expected to significantly affect the Company's financial position and results of operations. | ||||||||
Ridley Terminal Services Agreement | ||||||||
In connection with the acquisition of Western Coal, the Company assumed a terminal services agreement (the "Agreement") with Ridley Terminals Inc. located in British Columbia. The Agreement contains minimum throughput obligations each calendar year through December 31, 2020. If the Company does not meet its minimum throughput obligation, the Company shall pay Ridley Terminals a contractually specified amount per metric ton for the difference between the actual throughput and the minimum throughput requirement. At December 31, 2013, the Company maintained a liability of $0.8 million as a result of not meeting the required minimum. | ||||||||
Port of Mobile, Alabama | ||||||||
The Company has various transportation and throughput agreements with its transportation providers and the Alabama State Port Authority. These agreements contain minimum tonnage guarantees with respect to coal transported from the mine sites to the Port of Mobile, Alabama, unloading of rail cars or barges, and the loading of vessels. If the Company does not meet its minimum throughput obligations, the Company shall pay the transportation providers and the Alabama State Port Authority a contractually specified amount per metric ton for the difference between the actual throughput and the minimum throughput requirement. At December 31, 2013, the Company maintained a liability of $2.8 million as a result of not meeting the required minimums. | ||||||||
Lease Obligations | ||||||||
The Company's leases are primarily for mining equipment, automobiles and office space. The total cost of assets under capital leases was $45.2 million and $45.4 million at December 31, 2013 and 2012, respectively. Accumulated amortization on assets under capital leases was $18.9 million and $14.5 million at December 31, 2013 and 2012, respectively. Amortization expense for capital leases is included in depreciation and depletion expense. Rent expense was $20.8 million, $18.1 million and $21.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. Future minimum payments under non-cancellable capitalized and operating leases as of December 31, 2013 were as follows (in thousands): | ||||||||
Capitalized | Operating | |||||||
Leases | Leases | |||||||
2014 | $ | 8,289 | $ | 9,917 | ||||
2015 | 5,564 | 3,628 | ||||||
2016 | 39 | 3,468 | ||||||
2017 | — | 3,216 | ||||||
2018 | — | 2,616 | ||||||
Thereafter | — | 2,892 | ||||||
| | | | | | | | |
Total | 13,892 | $ | 25,737 | |||||
| | | | | | | | |
| | | | | | | | |
Less: amount representing interest and other executory costs | (750 | ) | ||||||
| | | | | | | | |
Present value of minimum lease payments | $ | 13,142 | ||||||
| | | | | | | | |
| | | | | | | | |
A substantial amount of the coal we mine is produced from mineral reserves leased from third-party land owners. These leases convey mining rights to the coal producer in exchange for royalties to be paid to the lessor as either a fixed amount per ton or as a percentage of the sales price. Although coal leases have varying renewal terms and conditions, they generally last for the economic life of the reserves. Coal royalty expense was $78.1 million, $116.3 million and $111.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
NOTE 19—Derivative Financial Instruments | ||||||||||||||||||||
Interest Rate Swaps | ||||||||||||||||||||
On June 27, 2011, the Company entered into an interest rate swap agreement with a notional value of $450.0 million. The objective of the swap is to protect against the variability in expected future cash flows attributable to changes in the benchmark interest rate related to interest payments required under term loan A in the 2011 Credit Agreement. The interest rate on the debt is subject to change due to fluctuations in the benchmark interest rate of 3-month LIBOR. The structure of the hedge is a three year amortizing interest rate swap based on a 1.17% fixed rate with quarterly fixed rate and floating rate payment dates beginning on July 18, 2011. The hedge will be settled upon maturity and is being accounted for as a cash flow hedge. Changes in the fair value of the effective portion of the hedge that take place through the date of maturity are reported in accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. The ineffective portion of the change in the fair value of the hedge is recognized directly in earnings included in other income (loss) in the Consolidated Statements of Operations. | ||||||||||||||||||||
On December 30, 2008, the Company entered into an interest rate hedge agreement with a notional value of $31.5 million. The objective of the hedge is to protect against the variability in expected future cash flows attributable to changes in the benchmark interest rate related to 62 of the 64 monthly interest payments required under an equipment financing arrangement for a new longwall shield system entered into on October 21, 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 62 month amortizing interest rate swap based on a 1.84% fixed rate with monthly fixed rate and floating rate payment dates beginning on February 1, 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 are reported in accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. | ||||||||||||||||||||
Interest Rate Cap | ||||||||||||||||||||
On June 27, 2011, the Company entered into an interest rate cap agreement related to interest payments required under term loan B in the 2011 Credit Agreement with a notional value of $255.0 million. The objective of the cap is to protect against the variability in expected future cash flows attributable to changes in the benchmark interest rate above 2.00%. The interest rate on the debt is subject to change due to fluctuations in the benchmark interest rate of 3-month LIBOR. The structure of the hedge is a three year amortizing interest rate cap based on a strike price of 2.00% with quarterly fixed rate and floating rate payment dates beginning on July 7, 2011. 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 are reported in accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. | ||||||||||||||||||||
Natural Gas Hedge | ||||||||||||||||||||
Revenues derived from the sale of natural gas are subject to volatility based on changes in market prices. In order to reduce the risk associated with natural gas price volatility, on June 7, 2011 the Company entered into a one year swap contract to hedge 4.2 million MMBTUs of natural gas sales beginning in July 2011 and ending June 2012, at a price of $5.00 per MMBTU. The swap agreement hedged approximately 30% of anticipated natural gas sales from July 2011 through June 2012. The hedge was settled upon maturity and was accounted for as a cash flow hedge. The Company did not have any commodity hedges outstanding at December 31, 2013 or 2012. | ||||||||||||||||||||
The following table presents the fair values of the Company's derivative instruments as well as their classification within the Consolidated Balance Sheets (in thousands). See Note 21 for additional information related to the fair values of the Company's derivative instruments. | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Asset derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||
Interest rate cap(1) | $ | 1 | $ | 12 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Liability derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||
Interest rate swaps(2) | $ | 3,080 | $ | 6,615 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
-1 | ||||||||||||||||||||
$1 thousand and $8 thousand is included within other current assets in the Consolidated Balance Sheets as of December 31, 2013 and 2012, respectively, while $4 thousand is included within other long-term assets in the Consolidated Balance Sheets as of December 31, 2012. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
$3.1 million and $4.1 million is included within other current liabilities in the Consolidated Balance Sheets as of December 31, 2013 and 2012, respectively, while $2.5 million is included within other long-term liabilities as of December 31, 2012. | ||||||||||||||||||||
The following tables present the gains and losses from derivative instruments for the years ended December 31, 2013 and 2012 and their location within the consolidated financial statements (in thousands). | ||||||||||||||||||||
Derivatives designated as cash flow | Gain (loss), net of tax, | (Gain) loss, net of tax, | Loss, net of tax, | |||||||||||||||||
hedging instruments | recognized in | reclassified from | reclassified from | |||||||||||||||||
accumulated other | accumulated other | accumulated other | ||||||||||||||||||
comprehensive | comprehensive | comprehensive | ||||||||||||||||||
income (loss) | income (loss) | income (loss) | ||||||||||||||||||
to earnings(1)(2) | to earnings | |||||||||||||||||||
(ineffective portion)(3) | ||||||||||||||||||||
For the years ended | For the years ended | For the years ended | ||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Natural gas hedges | $ | — | $ | (5,812 | ) | $ | — | $ | 3,279 | $ | — | $ | — | |||||||
Interest rate swaps | 4,894 | 1,459 | (2,546 | ) | (2,079 | ) | 184 | — | ||||||||||||
Interest rate cap | (8 | ) | (263 | ) | — | — | — | — | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 4,886 | $ | (4,616 | ) | $ | (2,546 | ) | $ | 1,200 | $ | 184 | $ | — | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | ||||||||||||||||||||
Natural gas hedge amounts are recorded within miscellaneous income in the Consolidated Statements of Operations. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
Interest rate swap amounts are recorded within interest expense in the Consolidated Statements of Operations. | ||||||||||||||||||||
-3 | ||||||||||||||||||||
The ineffective portion of the interest rate swap is recorded within other income (loss) in the Consolidated Statements of Operations. | ||||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
Note 20—Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component for the year ended December 31, 2013, net of tax (in thousands). | |||||||||||||||||
Pension | Unrealized | Foreign | Unrealized | Total | |||||||||||||
and other | gain/(loss) | currency | gain on | ||||||||||||||
postretirement | on hedges | translation | investments | ||||||||||||||
plans | adjustment | ||||||||||||||||
Beginning balance as of December 31, 2012 | $ | (266,042 | ) | $ | (4,203 | ) | $ | (1,502 | ) | $ | 897 | $ | (270,850 | ) | |||
Other comprehensive income (loss) before reclassifications | 82,335 | 4,886 | 6,073 | (44 | ) | 93,250 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 18,557 | (2,362 | ) | — | -1 | (853 | ) | 15,342 | |||||||||
| | | | | | | | | | | | | | | | | |
Net current-period other comprehensive income (loss) | 100,892 | 2,524 | 6,073 | (897 | ) | 108,592 | |||||||||||
| | | | | | | | | | | | | | | | | |
Ending balance as of December 31, 2013 | $ | (165,150 | ) | $ | (1,679 | ) | $ | 4,571 | $ | — | $ | (162,258 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||
Foreign currency translation adjustments are reclassified from accumulated other comprehensive income (loss) upon sale or substantially complete liquidation of an investment in a foreign entity. | |||||||||||||||||
The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the year ended December 31, 2013 (in thousands). | |||||||||||||||||
Details about Accumulated Other Comprehensive Income | Amount Reclassified | Affected Line Item in the | |||||||||||||||
(Loss) Components | from Accumulated | Consolidated Statements of Operations | |||||||||||||||
Other Comprehensive | |||||||||||||||||
Income (Loss) | |||||||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||
Interest rate swaps | $ | (4,117 | ) | Interest income | |||||||||||||
Interest rate swaps (ineffective portion) | 297 | Other loss | |||||||||||||||
| | | | | | ||||||||||||
(3,820 | ) | Total before tax | |||||||||||||||
1,458 | Income tax expense | ||||||||||||||||
| | | | | | ||||||||||||
$ | (2,362 | ) | Net of tax | ||||||||||||||
| | | | | | ||||||||||||
| | | | | | ||||||||||||
Amortization of pension and other postretirement benefit plans: | |||||||||||||||||
Prior service cost | $ | 1,493 | (a) | ||||||||||||||
Net actuarial loss | 28,545 | (a) | |||||||||||||||
| | | | | | ||||||||||||
30,038 | Total before tax | ||||||||||||||||
(11,481 | ) | Income tax benefit | |||||||||||||||
| | | | | | ||||||||||||
$ | 18,557 | Net of tax | |||||||||||||||
| | | | | | ||||||||||||
| | | | | | ||||||||||||
Gains and losses on available-for-sale securities | $ | (1,382 | ) | Other income | |||||||||||||
529 | Income tax expense | ||||||||||||||||
| | | | | | ||||||||||||
$ | (853 | ) | Net of tax | ||||||||||||||
| | | | | | ||||||||||||
| | | | | | ||||||||||||
(a) | |||||||||||||||||
Amortization of pension benefit items is included in cost of sales (exclusive of depreciation and depletion) and selling, general and administrative expense while amortization of other postretirement benefit items is included in other postretirement benefits within the Consolidated Statements of Operations. | |||||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
NOTE 21—Fair Value of Financial Instruments | ||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level hierarchy has been established for valuing assets and liabilities based on how transparent (observable) the inputs are that are used to determine fair value, with the inputs considered most observable categorized as Level 1 and those that are the least observable categorized as Level 3. Hierarchy levels are defined as follows: | ||||||||||||||
Level 1: | Quoted prices in active markets for identical assets and liabilities; | |||||||||||||
Level 2: | Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and | |||||||||||||
Level 3: | Unobservable inputs that are supported by little or no market data which require the reporting entity to develop its own assumptions. | |||||||||||||
The following table presents information about the Company's assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2013 and December 31, 2012 and indicate the fair value hierarchy of the valuation techniques utilized to determine such values. For some assets, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When this is the case, the asset is categorized based on the level of the most significant input to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and considers factors specific to the assets being valued. | ||||||||||||||
December 31, 2013 | ||||||||||||||
Fair Value | ||||||||||||||
Measurements Using | Total Fair | |||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Value | ||||||||||
Assets: | ||||||||||||||
Interest rate cap | $ | — | $ | 1 | $ | — | $ | 1 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Liabilities: | ||||||||||||||
Interest rate swaps | $ | — | $ | 3,080 | $ | — | $ | 3,080 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||
Fair Value | ||||||||||||||
Measurements Using | Total Fair | |||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Value | ||||||||||
Assets: | ||||||||||||||
Interest rate cap | $ | — | $ | 12 | $ | — | $ | 12 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Liabilities: | ||||||||||||||
Interest rate swaps | $ | — | $ | 6,615 | $ | — | $ | 6,615 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Below is a summary of the Company's valuation techniques for Level 1 and Level 2 financial assets and liabilities: | ||||||||||||||
Interest rate cap—The fair value of the interest rate cap was determined using quoted dealer prices for similar contracts in active over-the-counter markets. | ||||||||||||||
Interest rate swaps—The fair value of interest rate swaps were determined using quoted dealer prices for similar contracts in active over-the-counter markets. | ||||||||||||||
The following methods and assumptions were used to estimate the fair value for which the fair value option was not elected: | ||||||||||||||
Cash and cash equivalents, receivables and accounts payable—The carrying amounts reported in the balance sheet approximate fair value. | ||||||||||||||
Debt—All of the Company's outstanding debt is carried at cost. There were no borrowings outstanding under the Revolver at December 31, 2013 or December 31, 2012. The estimated fair value of the Company's debt is based upon observed prices in an active market when available or from valuation models using market information, which fall into Level 2 in the fair value hierarchy. The carrying amounts and fair values of the Company's debt are presented below (in thousands): | ||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
(in thousands) | Carrying | Fair Value | Carrying | Fair Value | ||||||||||
Amount | Amount | |||||||||||||
2011 Term Loan A | $ | 401,052 | $ | 403,517 | $ | 756,974 | $ | 758,867 | ||||||
2011 Term Loan B | $ | 968,581 | $ | 959,838 | $ | 1,127,770 | $ | 1,135,293 | ||||||
9.875% Senior Notes | $ | 496,831 | $ | 431,250 | $ | 496,510 | $ | 500,000 | ||||||
8.50% Senior Notes | $ | 450,000 | $ | 374,625 | $ | — | $ | — | ||||||
9.50% Senior Secured Notes | $ | 447,492 | $ | 474,750 | $ | — | $ | — |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Segment Information | ' | ||||||||||
Segment Information | ' | ||||||||||
NOTE 22—Segment Information | |||||||||||
The Company's reportable segments are strategic business units arranged geographically which have separate management teams. The business units have been aggregated into three reportable segments following the Western Coal acquisition as described in Note 1. These reportable segments are U.S. Operations, Canadian and U.K. Operations, and Other. Both the U.S. Operations and Canadian and U.K. Operations reportable segments primary business is that of mining and exporting metallurgical coal for the steel industry. The U.S. Operations segment includes Walter Energy's historical operating units of Underground Mining, Surface Mining and Walter Coke as well as the results of the West Virginia mining operations acquired through the acquisition of Western Coal. The Canadian and U.K. Operations segment includes the results of the mining operations located in Northeast British Columbia (Canada) and South Wales (United Kingdom). The Other segment primarily includes unallocated 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 primarily based on operating income 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 December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Revenues: | |||||||||||
U.S. Operations | $ | 1,331,308 | $ | 1,728,363 | $ | 1,871,182 | |||||
Canadian and U.K. Operations | 527,989 | 668,313 | 698,054 | ||||||||
Other | 1,334 | 3,219 | 2,122 | ||||||||
| | | | | | | | | | | |
Total Revenues(a) | $ | 1,860,631 | $ | 2,399,895 | $ | 2,571,358 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Segment operating income (loss)(b): | |||||||||||
U.S. Operations | $ | 58,371 | $ | 188,696 | $ | 561,370 | |||||
Canadian and U.K. Operations | (209,709 | ) | (1,158,591 | ) | 86,538 | ||||||
Other | (19,627 | ) | (43,231 | ) | (74,477 | ) | |||||
| | | | | | | | | | | |
Operating income (loss) | (170,965 | ) | (1,013,126 | ) | 573,431 | ||||||
Less interest expense, net | (232,751 | ) | (138,552 | ) | (96,214 | ) | |||||
Other income (loss) | 2,875 | (13,081 | ) | 17,606 | |||||||
| | | | | | | | | | | |
Income (loss) from continuing operations before income tax expense (benefit) | (400,841 | ) | (1,164,759 | ) | 494,823 | ||||||
Income tax expense (benefit) | (41,838 | ) | (99,204 | ) | 131,225 | ||||||
| | | | | | | | | | | |
Income (loss) from continuing operations | $ | (359,003 | ) | $ | (1,065,555 | ) | $ | 363,598 | |||
| | | | | | | | | | | |
| | | | | | | | | | | |
Impairment and restructuring charges: | |||||||||||
U.S. Operations | $ | (7,763 | ) | $ | 114,281 | $ | — | ||||
Canadian and U.K. Operations | 10,646 | 999,198 | — | ||||||||
Other | — | — | — | ||||||||
| | | | | | | | | | | |
Total | $ | 2,883 | $ | 1,113,479 | $ | — | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
For the years ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Depreciation and depletion: | |||||||||||
U.S. Operations | $ | 167,668 | $ | 173,140 | $ | 155,702 | |||||
Canadian and U.K. Operations | 141,696 | 141,713 | 74,203 | ||||||||
Other | 2,150 | 1,379 | 776 | ||||||||
| | | | | | | | | | | |
Total | $ | 311,514 | $ | 316,232 | $ | 230,681 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Capital expenditures: | |||||||||||
U.S. Operations | $ | 133,407 | $ | 162,535 | $ | 149,996 | |||||
Canadian and U.K. Operations | 18,331 | 224,583 | 264,476 | ||||||||
Other | 2,158 | 4,394 | 94 | ||||||||
| | | | | | | | | | | |
Total | $ | 153,896 | $ | 391,512 | $ | 414,566 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
As of December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Identifiable assets by segment: | |||||||||||
U.S. Operations | $ | 1,265,255 | $ | 1,603,745 | $ | 1,118,451 | |||||
Canadian and U.K. Operations | 3,687,925 | 3,728,817 | 5,021,521 | ||||||||
Other | 637,680 | 435,858 | 716,536 | ||||||||
| | | | | | | | | | | |
Total | $ | 5,590,860 | $ | 5,768,420 | $ | 6,856,508 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Long-lived assets by country: | |||||||||||
U.S. | $ | 998,763 | $ | 1,034,992 | $ | 1,096,763 | |||||
Canada | 3,092,483 | 3,203,227 | 3,195,377 | ||||||||
U.K. | 451,308 | 459,469 | 395,451 | ||||||||
| | | | | | | | | | | |
Total | $ | 4,542,554 | $ | 4,697,688 | $ | 4,687,591 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(a) | |||||||||||
Export sales were $1.5 billion, $1.9 billion and $2.0 billion for the years ended December 31, 2013, 2012 and 2011, respectively. Export sales to customers in foreign countries in excess of 10% of consolidated revenues for the years ended December 31, 2013, 2012 and 2011 were as follows: | |||||||||||
Percent of Consolidated Revenues | |||||||||||
For the years ended December 31, | |||||||||||
Country | 2013 | 2012 | 2011 | ||||||||
Japan | 13.20% | 11.50% | 9.40% | ||||||||
Brazil | 13.30% | 10.70% | 10.50% | ||||||||
Germany | 10.50% | 9.70% | 9.80% | ||||||||
(b) | |||||||||||
Segment operating income (loss) amounts include expenses for other postretirement benefits. A breakdown by segment of other postretirement benefits (income) expense is as follows (in thousands): | |||||||||||
For the years ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. Operations | $ | 59,118 | $ | 53,301 | $ | 41,745 | |||||
Canadian and U.K. Operations | — | — | — | ||||||||
Other | (218 | ) | (449 | ) | (1,360 | ) | |||||
| | | | | | | | | | | |
$ | 58,900 | $ | 52,852 | $ | 40,385 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
NOTE 23—Related 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 2013, 2012 and 2011 were $1.9 million, $2.4 million and $2.9 million, respectively. | |
In connection with the acquisition of Western Coal, the Company acquired a 50% interest in the Belcourt Saxon Coal Limited Partnership ("Belcourt Saxon"). Belcourt Saxon owns two multi-deposit coal properties which are located approximately 40 to 80 miles south of the Wolverine Mine in Northeast British Columbia. The joint venture was formed for the future exploration and development of surface coal mines. Belcourt Saxon is accounted for under the proportionate consolidation method. Costs associated with the joint venture were insignificant for 2013. No field work was conducted on the Belcourt Saxon properties during 2013, other than maintenance of environmental monitoring stations. | |
Supplemental_Guarantor_and_Non
Supplemental Guarantor and Non-Guarantor Financial Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Supplemental Guarantor and Non-Guarantor Financial Information | ' | ||||||||||||||||
Supplemental Guarantor and Non-Guarantor Financial Information | ' | ||||||||||||||||
NOTE 24—Supplemental Guarantor and Non-Guarantor Financial Information | |||||||||||||||||
In accordance with the indentures governing the 9.875% senior notes due December 2020 and the 8.50% senior notes due April 2021 (collectively the "Senior Notes"), certain wholly-owned U.S. domestic restricted subsidiaries of the Company have fully and unconditionally guaranteed the Senior Notes on a joint and several basis. The following tables present unaudited consolidating financial information for (i) the Company, (ii) the issuer of the senior notes, (iii) the guarantors under the senior notes, and (iv) the entities which are not guarantors of the senior notes: | |||||||||||||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 234,150 | $ | 101 | $ | 26,567 | $ | — | $ | 260,818 | |||||||
Receivables, net | 113,936 | 90,460 | 77,367 | — | 281,763 | ||||||||||||
Intercompany receivables | — | 30,126 | 57,778 | (87,904 | ) | — | |||||||||||
Intercompany loans receivable | 63,549 | 1,104,282 | — | (1,167,831 | ) | — | |||||||||||
Inventories | — | 168,434 | 144,213 | — | 312,647 | ||||||||||||
Deferred income taxes | 23,957 | 12,154 | 956 | — | 37,067 | ||||||||||||
Prepaid expenses | 2,245 | 34,011 | 2,766 | — | 39,022 | ||||||||||||
Other current assets | 15,257 | 440 | 2,334 | — | 18,031 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 453,094 | 1,440,008 | 311,981 | (1,255,735 | ) | 949,348 | |||||||||||
Mineral interests, net | — | 7,294 | 2,897,708 | — | 2,905,002 | ||||||||||||
Property, plant and equipment, net | 7,248 | 764,406 | 865,898 | — | 1,637,552 | ||||||||||||
Deferred income taxes | 3,049 | 4,458 | — | (7,507 | ) | — | |||||||||||
Investment in subsidiaries | 4,409,683 | 86,357 | — | (4,496,040 | ) | — | |||||||||||
Other long-term assets | 73,564 | 10,323 | 15,071 | — | 98,958 | ||||||||||||
| | | | | | | | | | | | | | | | | |
$ | 4,946,638 | $ | 2,312,846 | $ | 4,090,658 | $ | (5,759,282 | ) | $ | 5,590,860 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Current debt | $ | — | $ | 1,313 | $ | 7,897 | $ | — | $ | 9,210 | |||||||
Accounts payable | 5,604 | 64,678 | 22,430 | — | 92,712 | ||||||||||||
Accrued expenses | 34,551 | 53,582 | 45,737 | — | 133,870 | ||||||||||||
Intercompany payables | 87,904 | — | — | (87,904 | ) | — | |||||||||||
Intercompany loans payable | 1,104,282 | — | 63,549 | (1,167,831 | ) | — | |||||||||||
Accumulated other postretirement benefits obligation | 94 | 29,942 | — | — | 30,036 | ||||||||||||
Other current liabilities | 164,364 | 27,062 | 22,647 | — | 214,073 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 1,396,799 | 176,577 | 162,260 | (1,255,735 | ) | 479,901 | |||||||||||
Long-term debt | 2,763,957 | — | 5,665 | — | 2,769,622 | ||||||||||||
Accumulated other postretirement benefits obligation | 263 | 570,449 | — | — | 570,712 | ||||||||||||
Deferred income taxes | — | — | 830,374 | (7,507 | ) | 822,867 | |||||||||||
Other long-term liabilities | 32,925 | 73,420 | 88,719 | — | 195,064 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities | 4,193,944 | 820,446 | 1,087,018 | (1,263,242 | ) | 4,838,166 | |||||||||||
Stockholders' equity | 752,694 | 1,492,400 | 3,003,640 | (4,496,040 | ) | 752,694 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and stockholders' equity | $ | 4,946,638 | $ | 2,312,846 | $ | 4,090,658 | $ | (5,759,282 | ) | $ | 5,590,860 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 83,833 | $ | 61 | $ | 32,707 | $ | — | $ | 116,601 | |||||||
Receivables, net | 64,106 | 113,182 | 79,679 | — | 256,967 | ||||||||||||
Intercompany receivables | 721,293 | — | — | (721,293 | ) | — | |||||||||||
Intercompany loans receivable | 118,079 | 1,074,879 | — | (1,192,958 | ) | — | |||||||||||
Inventories | — | 131,893 | 174,125 | — | 306,018 | ||||||||||||
Deferred income taxes | 39,375 | 17,687 | 1,464 | — | 58,526 | ||||||||||||
Prepaid expenses | 1,869 | 45,327 | 6,580 | — | 53,776 | ||||||||||||
Other current assets | 17,559 | 1,109 | 5,260 | — | 23,928 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 1,046,114 | 1,384,138 | 299,815 | (1,914,251 | ) | 815,816 | |||||||||||
Mineral interests, net | — | 18,475 | 2,947,082 | — | 2,965,557 | ||||||||||||
Property, plant and equipment, net | 8,448 | 790,900 | 932,783 | — | 1,732,131 | ||||||||||||
Deferred income taxes | 52,363 | 112,560 | (4,501 | ) | — | 160,422 | |||||||||||
Investment in subsidiaries | 3,530,094 | — | — | (3,530,094 | ) | — | |||||||||||
Other long-term assets | 71,622 | 9,375 | 13,497 | — | 94,494 | ||||||||||||
| | | | | | | | | | | | | | | | | |
$ | 4,708,641 | $ | 2,315,448 | $ | 4,188,676 | $ | (5,444,345 | ) | $ | 5,768,420 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Current debt | $ | — | $ | 10,196 | $ | 8,597 | $ | — | $ | 18,793 | |||||||
Accounts payable | 5,128 | 78,260 | 31,525 | — | 114,913 | ||||||||||||
Accrued expenses | 27,197 | 83,155 | 74,523 | — | 184,875 | ||||||||||||
Intercompany payables | — | 567,360 | 153,933 | (721,293 | ) | — | |||||||||||
Intercompany loans payable | 1,074,879 | — | 118,079 | (1,192,958 | ) | — | |||||||||||
Accumulated other postretirement benefits obligation | 131 | 29,069 | — | — | 29,200 | ||||||||||||
Other current liabilities | 157,044 | 24,389 | 25,040 | — | 206,473 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 1,264,379 | 792,429 | 411,697 | (1,914,251 | ) | 554,254 | |||||||||||
Long-term debt | 2,381,255 | 1,784 | 14,333 | — | 2,397,372 | ||||||||||||
Accumulated other postretirement benefits obligation | 452 | 632,812 | — | — | 633,264 | ||||||||||||
Deferred income taxes | — | — | 921,687 | — | 921,687 | ||||||||||||
Other long-term liabilities | 51,984 | 128,593 | 70,695 | — | 251,272 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities | 3,698,070 | 1,555,618 | 1,418,412 | (1,914,251 | ) | 4,757,849 | |||||||||||
Stockholders' equity | 1,010,571 | 759,830 | 2,770,264 | (3,530,094 | ) | 1,010,571 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and stockholders' equity | $ | 4,708,641 | $ | 2,315,448 | $ | 4,188,676 | $ | (5,444,345 | ) | $ | 5,768,420 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | — | $ | 1,231,883 | $ | 604,460 | $ | — | $ | 1,836,343 | |||||||
Miscellaneous income | 88 | 10,798 | 13,402 | — | 24,288 | ||||||||||||
| | | | | | | | | | | | | | | | | |
88 | 1,242,681 | 617,862 | — | 1,860,631 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Cost and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 911,023 | 647,282 | — | 1,558,305 | ||||||||||||
Depreciation and depletion | 2,150 | 149,096 | 160,268 | — | 311,514 | ||||||||||||
Selling, general and administrative | 4,393 | 50,073 | 45,528 | — | 99,994 | ||||||||||||
Other postretirement benefits | (218 | ) | 59,118 | — | — | 58,900 | |||||||||||
Restructuring and asset impairment | — | (7,763 | ) | 10,646 | — | 2,883 | |||||||||||
| | | | | | | | | | | | | | | | | |
6,325 | 1,161,547 | 863,724 | — | 2,031,596 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (6,237 | ) | 81,134 | (245,862 | ) | — | (170,965 | ) | |||||||||
Interest expense | (269,586 | ) | — | (3,757 | ) | 39,489 | (233,854 | ) | |||||||||
Interest income | 6,274 | 30,983 | 3,335 | (39,489 | ) | 1,103 | |||||||||||
Other income (loss) | 3,993 | — | (1,118 | ) | — | 2,875 | |||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income tax expense (benefit) | (265,556 | ) | 112,117 | (247,402 | ) | — | (400,841 | ) | |||||||||
Income tax expense (benefit) | (51,821 | ) | 109,318 | (99,335 | ) | — | (41,838 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
(213,735 | ) | 2,799 | (148,067 | ) | — | (359,003 | ) | ||||||||||
Equity in losses of subsidiaries | (145,268 | ) | — | — | 145,268 | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Net income (loss) | $ | (359,003 | ) | $ | 2,799 | $ | (148,067 | ) | $ | 145,268 | $ | (359,003 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2012 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | — | $ | 1,592,680 | $ | 789,080 | $ | — | $ | 2,381,760 | |||||||
Miscellaneous income (loss) | 2,233 | 20,518 | (4,616 | ) | — | 18,135 | |||||||||||
| | | | | | | | | | | | | | | | | |
2,233 | 1,613,198 | 784,464 | — | 2,399,895 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Cost and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 1,039,547 | 757,444 | — | 1,796,991 | ||||||||||||
Depreciation and depletion | 1,379 | 141,463 | 173,390 | — | 316,232 | ||||||||||||
Selling, general and administrative | 11,716 | 71,208 | 50,543 | — | 133,467 | ||||||||||||
Other postretirement benefits | (449 | ) | 53,301 | — | — | 52,852 | |||||||||||
Restructuring and asset impairment | — | — | 49,070 | — | 49,070 | ||||||||||||
Goodwill impairment | — | 1,713 | 1,062,696 | — | 1,064,409 | ||||||||||||
| | | | | | | | | | | | | | | | | |
12,646 | 1,307,232 | 2,093,143 | — | 3,413,021 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (10,413 | ) | 305,966 | (1,308,679 | ) | — | (1,013,126 | ) | |||||||||
Interest expense | (162,938 | ) | (1,826 | ) | (12,731 | ) | 38,139 | (139,356 | ) | ||||||||
Interest income | 5,895 | 28,617 | 4,431 | (38,139 | ) | 804 | |||||||||||
Other income | — | — | (13,081 | ) | — | (13,081 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income tax expense (benefit) | (167,456 | ) | 332,757 | (1,330,060 | ) | — | (1,164,759 | ) | |||||||||
Income tax expense (benefit) | (68,615 | ) | 85,935 | (116,524 | ) | — | (99,204 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | (98,841 | ) | 246,822 | (1,213,536 | ) | — | (1,065,555 | ) | |||||||||
Income from discontinued operations | — | 5,180 | — | — | 5,180 | ||||||||||||
Equity in losses of subsidiaries | (961,534 | ) | — | — | 961,534 | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Net income (loss) | $ | (1,060,375 | ) | $ | 252,002 | $ | (1,213,536 | ) | $ | 961,534 | $ | (1,060,375 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2011 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | — | $ | 1,694,235 | $ | 868,090 | $ | — | $ | 2,562,325 | |||||||
Miscellaneous income (loss) | 21,486 | 8,973 | (21,426 | ) | — | 9,033 | |||||||||||
| | | | | | | | | | | | | | | | | |
21,486 | 1,703,208 | 846,664 | — | 2,571,358 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Cost and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 927,465 | 633,647 | — | 1,561,112 | ||||||||||||
Depreciation and depletion | 776 | 120,086 | 109,819 | — | 230,681 | ||||||||||||
Selling, general and administrative | 39,165 | 79,564 | 47,020 | — | 165,749 | ||||||||||||
Other postretirement benefits | (1,360 | ) | 41,745 | — | — | 40,385 | |||||||||||
| | | | | | | | | | | | | | | | | |
38,581 | 1,168,860 | 790,486 | — | 1,997,927 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (17,095 | ) | 534,348 | 56,178 | — | 573,431 | |||||||||||
Interest expense | (131,545 | ) | (1,629 | ) | (4,917 | ) | 41,271 | (96,820 | ) | ||||||||
Interest income | 1,251 | 36,554 | 4,072 | (41,271 | ) | 606 | |||||||||||
Other income | — | — | 17,606 | — | 17,606 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income tax expense (benefit) | (147,389 | ) | 569,273 | 72,939 | — | 494,823 | |||||||||||
Income tax expense (benefit) | (71,566 | ) | 199,886 | 2,905 | — | 131,225 | |||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | (75,823 | ) | 369,387 | 70,034 | — | 363,598 | |||||||||||
Equity in earnings (losses) of subsidiaries | 439,421 | — | — | (439,421 | ) | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Net income | $ | 363,598 | $ | 369,387 | $ | 70,034 | $ | (439,421 | ) | $ | 363,598 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING | |||||||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Guarantor | Consolidated | ||||||||||||||
Subsidiaries | |||||||||||||||||
Net income (loss) | $ | (359,003 | ) | $ | 2,799 | $ | (148,067 | ) | $ | 145,268 | $ | (359,003 | ) | ||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Change in pension and other postretirement benefit plans, net of tax | 100,892 | 91,501 | — | (91,501 | ) | 100,892 | |||||||||||
Change in unrealized loss on hedges, net of tax | 2,524 | 58 | — | (58 | ) | 2,524 | |||||||||||
Change in foreign currency translation adjustment | 6,073 | — | 6,073 | (6,073 | ) | 6,073 | |||||||||||
Change in unrealized gain on investments | (897 | ) | — | (897 | ) | 897 | (897 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Total other comprehensive income (loss), net of tax | 108,592 | 91,559 | 5,176 | (96,735 | ) | 108,592 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total comprehensive income (loss) | $ | (250,411 | ) | $ | 94,358 | $ | (142,891 | ) | $ | 48,533 | $ | (250,411 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING | |||||||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2012 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Net income (loss) | $ | (1,060,375 | ) | $ | 252,002 | $ | (1,213,536 | ) | $ | 961,534 | $ | (1,060,375 | ) | ||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Change in pension and other postretirement benefit plans, net of tax | (40,501 | ) | (90,876 | ) | — | 90,876 | (40,501 | ) | |||||||||
Change in unrealized loss on hedges, net of tax | (3,416 | ) | 95 | (2,533 | ) | 2,438 | (3,416 | ) | |||||||||
Change in foreign currency translation adjustment | 1,774 | — | 1,774 | (1,774 | ) | 1,774 | |||||||||||
Change in unrealized gain on investments | 769 | — | 769 | (769 | ) | 769 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total other comprehensive income (loss), net of tax | (41,374 | ) | (90,781 | ) | 10 | 90,771 | (41,374 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Total comprehensive income (loss) | $ | (1,101,749 | ) | $ | 161,221 | $ | (1,213,526 | ) | $ | 1,052,305 | $ | (1,101,749 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING | |||||||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2011 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Guarantor | Consolidated | ||||||||||||||
Subsidiaries | |||||||||||||||||
Net income | $ | 363,598 | $ | 369,387 | $ | 70,034 | $ | (439,421 | ) | $ | 363,598 | ||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Change in pension and other postretirement benefit plans, net of tax | (53,224 | ) | (9,437 | ) | — | 9,437 | (53,224 | ) | |||||||||
Change in unrealized loss on hedges, net of tax | (716 | ) | 85 | 2,309 | (2,394 | ) | (716 | ) | |||||||||
Change in foreign currency translation adjustment | (3,276 | ) | — | (3,276 | ) | 3,276 | (3,276 | ) | |||||||||
Change in unrealized gain on investments | 128 | — | 128 | (128 | ) | 128 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total other comprehensive loss, net of tax | (57,088 | ) | (9,352 | ) | (839 | ) | 10,191 | (57,088 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Total comprehensive income | $ | 306,510 | $ | 360,035 | $ | 69,195 | $ | (429,230 | ) | $ | 306,510 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities | $ | (204,982 | ) | $ | 236,491 | $ | (58,585 | ) | $ | — | $ | (27,076 | ) | ||||
| | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES | |||||||||||||||||
Additions to property, plant and equipment | (2,294 | ) | (127,873 | ) | (23,729 | ) | — | (153,896 | ) | ||||||||
Proceeds from sales of investments | — | — | 1,559 | — | 1,559 | ||||||||||||
Intercompany loans made | (40,236 | ) | — | — | 40,236 | — | |||||||||||
Intercompany payments received | 30,500 | — | — | (30,500 | ) | — | |||||||||||
Other | — | — | 1,824 | — | 1,824 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows used in investing activities | (12,030 | ) | (127,873 | ) | (20,346 | ) | 9,736 | (150,513 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of debt | 897,412 | — | — | — | 897,412 | ||||||||||||
Borrowings under revolving credit agreement | — | — | 764,332 | — | 764,332 | ||||||||||||
Repayments on revolving credit agreement | — | — | (764,332 | ) | — | (764,332 | ) | ||||||||||
Retirements of debt | (496,062 | ) | (19,133 | ) | — | — | (515,195 | ) | |||||||||
Dividends paid | (16,889 | ) | — | — | — | (16,889 | ) | ||||||||||
Tax effect from stock-based compensation arrangements | (717 | ) | — | — | — | (717 | ) | ||||||||||
Proceeds from stock-options exercised | 279 | — | — | — | 279 | ||||||||||||
Debt issuance costs | (41,588 | ) | — | — | — | (41,588 | ) | ||||||||||
Advances from (to) consolidated entities | 25,072 | (89,330 | ) | 64,258 | — | — | |||||||||||
Intercompany borrowings | — | — | 40,236 | (40,236 | ) | — | |||||||||||
Intercompany payments made | — | — | (30,500 | ) | 30,500 | — | |||||||||||
Other | (178 | ) | (115 | ) | — | — | (293 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by (used in) financing activities | 367,329 | (108,578 | ) | 73,994 | (9,736 | ) | 323,009 | ||||||||||
| | | | | | | | | | | | | | | | | |
Effect of foreign exchange rates on cash | — | — | (1,203 | ) | — | (1,203 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | $ | 150,317 | $ | 40 | $ | (6,140 | ) | $ | — | $ | 144,217 | ||||||
Cash and cash equivalents at beginning of period | 83,833 | 61 | 32,707 | — | 116,601 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | 234,150 | $ | 101 | $ | 26,567 | $ | — | $ | 260,818 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2012 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities | $ | (373,256 | ) | $ | 734,325 | $ | (31,162 | ) | $ | — | $ | 329,907 | |||||
| | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES | |||||||||||||||||
Additions to property, plant and equipment | (4,395 | ) | (143,206 | ) | (243,911 | ) | — | (391,512 | ) | ||||||||
Proceeds from sales of investments | — | — | 13,239 | — | 13,239 | ||||||||||||
Intercompany notes issued | (293,170 | ) | — | — | 293,170 | — | |||||||||||
Intercompany notes proceeds | 16,513 | — | — | (16,513 | ) | — | |||||||||||
Investments in equity affiliates | (238,083 | ) | — | — | 238,083 | — | |||||||||||
Distributions from equity affiliates | 271,847 | — | — | (271,847 | ) | — | |||||||||||
Other | — | 855 | 43 | — | 898 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows used in investing activities | (247,288 | ) | (142,351 | ) | (230,629 | ) | 242,893 | (377,375 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of debt | 496,510 | — | — | — | 496,510 | ||||||||||||
Borrowings under revolving credit agreement | — | — | 510,650 | — | 510,650 | ||||||||||||
Repayments on revolving credit agreement | — | — | (519,453 | ) | — | (519,453 | ) | ||||||||||
Retirements of debt | (343,255 | ) | (8,131 | ) | (41,465 | ) | — | (392,851 | ) | ||||||||
Dividends paid | (31,246 | ) | — | — | — | (31,246 | ) | ||||||||||
Tax effect from stock-based compensation arrangements | 217 | — | — | — | 217 | ||||||||||||
Proceeds from stock-options exercised | 161 | — | — | — | 161 | ||||||||||||
Net consideration paid upon exercise of warrants | (11,535 | ) | — | — | — | (11,535 | ) | ||||||||||
Debt issuance costs | (24,532 | ) | — | — | — | (24,532 | ) | ||||||||||
Advances from (to) consolidated entities | 519,737 | (570,342 | ) | 50,605 | — | — | |||||||||||
Intercompany borrowings | — | — | 293,170 | (293,170 | ) | — | |||||||||||
Intercompany payments made | — | — | (16,513 | ) | 16,513 | — | |||||||||||
Investment from Parent | — | 238,083 | — | (238,083 | ) | — | |||||||||||
Intercompany dividends | — | (261,102 | ) | (10,745 | ) | 271,847 | — | ||||||||||
Other | (766 | ) | — | — | — | (766 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by (used in) financing activities | 605,291 | (601,492 | ) | 266,249 | (242,893 | ) | 27,155 | ||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by (used in) continuing operations | (15,253 | ) | (9,518 | ) | 4,458 | — | (20,313 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM DISCONTINUED OPERATIONS | |||||||||||||||||
Cash flows provided by investing activities | — | 9,500 | — | — | 9,500 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by discontinued operations | — | 9,500 | — | — | 9,500 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Effect of foreign exchange rates on cash | — | — | (1,016 | ) | — | (1,016 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | $ | (15,253 | ) | $ | (18 | ) | $ | 3,442 | $ | — | $ | (11,829 | ) | ||||
Cash and cash equivalents at beginning of period | 99,086 | 79 | 29,265 | — | 128,430 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | 83,833 | $ | 61 | $ | 32,707 | $ | — | $ | 116,601 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2011 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities | $ | (569,306 | ) | $ | 1,047,651 | $ | 228,521 | $ | — | $ | 706,866 | ||||||
| | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES | |||||||||||||||||
Additions to property, plant and equipment | (93 | ) | (143,529 | ) | (293,083 | ) | — | (436,705 | ) | ||||||||
Acquisition of Western Coal Corp., net of cash acquired | (2,466,758 | ) | — | 34,065 | — | (2,432,693 | ) | ||||||||||
Proceeds from sales of investments | — | — | 27,325 | — | 27,325 | ||||||||||||
Intercompany notes issued | (50,738 | ) | — | — | 50,738 | — | |||||||||||
Distributions from equity investments | 516,407 | — | — | (516,407 | ) | — | |||||||||||
Other | 23 | 273 | 1,117 | — | 1,413 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows used in investing activities | (2,001,159 | ) | (143,256 | ) | (230,576 | ) | (465,669 | ) | (2,840,660 | ) | |||||||
| | | | | | | | | | | | | | | | | |
FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of debt | 2,350,000 | — | — | — | 2,350,000 | ||||||||||||
Borrowings under revolving credit agreement | — | — | 71,259 | — | 71,259 | ||||||||||||
Repayments on revolving credit agreement | — | — | (61,259 | ) | — | (61,259 | ) | ||||||||||
Retirements of debt | (258,062 | ) | (12,300 | ) | (20,268 | ) | — | (290,630 | ) | ||||||||
Dividends paid | (30,042 | ) | — | — | — | (30,042 | ) | ||||||||||
Tax effect from stock-based compensation arrangements | 8,929 | — | — | — | 8,929 | ||||||||||||
Proceeds from stock options exercised | 8,920 | — | — | — | 8,920 | ||||||||||||
Debt issuance costs | (80,027 | ) | — | — | — | (80,027 | ) | ||||||||||
Advances from (to) consolidated entities | 380,623 | (374,321 | ) | (6,302 | ) | — | — | ||||||||||
Intercompany borrowings | — | — | 50,738 | (50,738 | ) | — | |||||||||||
Intercompany dividends | — | (516,407 | ) | — | 516,407 | — | |||||||||||
Other | (5,203 | ) | — | — | — | (5,203 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by (used in) financing activities | 2,375,138 | (903,028 | ) | 34,168 | 465,669 | 1,971,947 | |||||||||||
| | | | | | | | | | | | | | | | | |
Effect of foreign exchange rates on cash | — | — | (3,668 | ) | — | (3,668 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | $ | (195,327 | ) | $ | 1,367 | $ | 28,445 | $ | — | $ | (165,515 | ) | |||||
Cash and cash equivalents at beginning of period | 294,413 | (1,823 | ) | 820 | — | 293,410 | |||||||||||
Add: Cash and cash equivalents of discontinued operations at beginning of year | — | 535 | — | — | 535 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | 99,086 | $ | 79 | $ | 29,265 | $ | — | $ | 128,430 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Basis of Presentation | ' | |||||||
Basis of Presentation | ||||||||
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. | ||||||||
During the first quarter of 2013, the Company determined that the $7.8 million cash dividend declared and paid in the fourth quarter of 2012 should have been reported as a reduction to the capital in excess of par value component of stockholders' equity rather than retained earnings as the Company was in an accumulated deficit position. In the first quarter of 2013 this amount was reclassified from accumulated deficit to capital in excess of par value. Management has determined that the effect of this classification change was immaterial to prior reporting periods affected as the change had no effect on total stockholders' equity. | ||||||||
During the first quarter of 2013, the Company began to classify certain administrative costs as cost of sales as opposed to selling, general and administrative costs as it determined that these costs are directly supportive of operations. If this classification of these costs had been retrospectively applied, selling, general and administrative expenses for the year ended December 31, 2012 and 2011 would have been reduced by $24.5 million and $26.3 million, respectively, and cost of sales would have been increased by similar amounts. Prior period balances have not been restated as management has determined that the effect of this classification change was immaterial to prior reporting periods. The change in classification has no effect on net income. | ||||||||
During the second quarter of 2013, the Company identified an immaterial cumulative error related to the mineral interest value of Western Coal Corp. The related correction resulted in an $8.4 million dollar reduction to depreciation and depletion expense in the quarter. Prior period balances have not been restated as management has determined that the effect was not material to the financial statements of the current or prior reporting periods. | ||||||||
New Accounting Pronouncements | ' | |||||||
New Accounting Pronouncements | ||||||||
On January 1, 2013, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The standard requires disclosure of amounts reclassified out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income, either on the face of the Consolidated Statements of Operations or in the notes to the financial statements. The Company has elected disclosure in the Notes to Consolidated Financial Statements as described in Note 20. | ||||||||
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force) ("ASU 2013-05"). The standard applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. ASU 2013-05 is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The Company is currently reviewing the provisions of ASU 2013-05 but does not expect it to have a material effect on the Company's financial condition, results of operations, and cash flows. | ||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of Unrecognized Tax Benefits ("ASU 2013-11"). The standard requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and the entity intends to use the deferred tax asset for that purpose. ASU 2013-11 is effective for public entities with fiscal periods beginning after December 15, 2013. The Company is already in compliance with this standard. | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the applicable reporting period. Due to the inherent uncertainty involved in making estimates, actual results could differ from those estimates. | ||||||||
Concentrations of Credit Risk and Major Customers | ' | |||||||
Concentrations of Credit Risk and Major Customers | ||||||||
The Company's principal line of business is mining and marketing metallurgical coal to foreign steel and coke producers. In 2013 and 2012, approximately 82% and 78%, respectively, of the Company's revenues were derived from coal shipments to these customers, located primarily in Europe, Asia, and South America. At December 31, 2013 and 2012, approximately 44% and 50%, respectively, of the Company's net receivables related to these customers. During the year ended December 31, 2013, ArcelorMittal accounted for $233.5 million or 12.6% of consolidated revenues from sales in our U.S. and Canadian and U.K. Operations. The loss of ArcelorMittal as a customer could have a material adverse effect on our results of operations. During the year ended December 31, 2012, no single customer accounted for 10% or more of consolidated revenues. 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 | ' | |||||||
Revenue Recognition | ||||||||
Revenue 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 coke shipments via rail or truck, revenue is recognized when title and risk of loss transfer to the customer, generally at the point of shipment. For natural gas sales, delivery occurs when the gas has been transferred to the customer's pipeline. | ||||||||
Shipping and Handling | ' | |||||||
Shipping and Handling | ||||||||
Costs to ship products to customers are included in cost of sales and amounts billed to customers, if any, to cover shipping and handling are included in sales. | ||||||||
Cash and Cash Equivalents | ' | |||||||
Cash and Cash Equivalents | ||||||||
Cash and cash equivalents include short-term deposits and highly liquid investments that have original maturities of three months or less when purchased and are stated at cost, which approximates fair value. | ||||||||
Allowances for Losses | ' | |||||||
Allowances for Losses | ||||||||
Allowances for losses on trade and other accounts receivables are based, in large part, upon judgments and estimates of expected losses and specific identification of problem trade accounts and other receivables. Significantly weaker than anticipated industry or economic conditions could impact customers' ability to pay such that actual losses may be greater than the amounts provided for in these allowances. The allowance for losses was $1.3 million and $5.4 million at December 31, 2013 and 2012, respectively. | ||||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories are valued at the lower of cost or market. For the years ended December 31, 2013, 2012 and 2011, the Company recognized lower of cost or market charges of $126.1 million, $218.8 million, and $20.1 million, respectively, which is included within cost of sales exclusive of depreciation and depletion in the accompanying Consolidated Statements of Operations. The Company recognized lower of cost or market charges of $36.5 million and $17.4 million within depreciation and depletion in the accompanying Consolidated Statements of Operations for the years ended December 31, 2013 and 2012, respectively. The Company's coal inventory costs include labor, supplies, equipment costs, operating overhead, freight, royalties and other related costs. As of December 31, 2013, all of the Company's coal inventories are determined using the first-in, first-out ("FIFO") inventory valuation method. The Company's supplies inventories are determined using the average cost method of accounting. The valuation of coal inventories are subject to estimates due to possible gains and losses resulting from inventory movements from the mine site to storage facilities, inherent inaccuracies in belt scales and aerial surveys used to measure quantities and fluctuations in moisture content. Periodic adjustments to coal tonnages on hand are made for an estimate of coal shortages and overages due to these inherent gains and losses, primarily based on historical results from the results of aerial surveys and periodic coal pile clean-ups. Additionally, the Company evaluates its inventory in terms of excess and obsolete exposures. This evaluation includes such factors as anticipated usage, inventory turnover, inventory levels and ultimate market value. | ||||||||
Owned and Leased Mineral Interests | ' | |||||||
Owned and Leased Mineral Interests | ||||||||
Costs to obtain coal reserves and lease mineral rights are capitalized based on the fair value at acquisition and depleted using the unit-of-production method over the life of proven and probable reserves. Lease agreements are generally long-term in nature (original terms range from 10 to 50 years) and substantially all of the leases contain provisions that allow for automatic extension of the lease term providing certain requirements are met. Depletion expense is included in depreciation and depletion in the accompanying Consolidated Statements of Operations and was $61.4 million, $99.8 million and $59.3 million for the years ended December 31, 2013, December 31, 2012, and 2011, respectively. | ||||||||
Property, Plant and Equipment | ' | |||||||
Property, Plant and Equipment | ||||||||
Property, Plant and Equipment | ||||||||
Property, plant and equipment are recorded at cost. Depreciation is recorded principally on the straight-line or units of production methods, whichever is deemed most appropriate over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line method over the lesser of the useful life of the improvement or the remaining lease term. Estimated useful lives used in computing depreciation expense range from three to ten years for machinery and equipment, and from fifteen to thirty years for land improvements and buildings, well life for gas properties and related development, and mine life for mine development costs. Gains and losses upon disposition are reflected in the statement of operations in the period of disposition. Maintenance and repair expenditures are charged to expense as incurred. | ||||||||
Direct internal and external costs to implement computer systems and software are capitalized and are amortized over the estimated useful life of the system or software, generally three to five years, beginning when site installations or module development is complete and ready for its intended use. | ||||||||
Deferred Mine Development | ||||||||
Costs of developing new underground mines and certain underground expansion projects are capitalized. Underground development costs, which are costs incurred to make the coal physically accessible, may include construction permits and licenses, mine design, construction of access roads, main entries, airshafts, roof protection and other facilities. Costs of developing the first pit within a permitted area of a surface mine are capitalized up to the point of coal production attaining a level that would be more than de minimis. A surface mine is defined as the permitted mining area which includes various adjacent pits that share common infrastructure, processing equipment and a common coal reserve. Surface mine development costs include construction costs for entry roads, drilling, blasting and removal of overburden to access the first coal seam. Mine development costs are amortized primarily on a unit-of-production basis over the estimated reserve tons directly benefiting from the capital expenditures. Costs incurred during the production phase of a mine are capitalized into inventory and expensed to cost of sales as the coal is sold. | ||||||||
Capitalized Interest Costs | ||||||||
For the years ended December 31, 2013, 2012 and 2011, the Company capitalized interest costs in the amounts of $1.7 million, $7.7 million and $5.4 million, respectively. | ||||||||
Asset Retirement Obligations | ||||||||
The Company has certain asset retirement obligations, primarily related to reclamation efforts for its mining operations. These obligations are recognized at fair value in the period for which they are to be incurred and the carrying amount of the related long-lived asset is correspondingly increased. Over time, the liability is accreted to its future value. The corresponding asset cost capitalized at inception is amortized over the useful life of the asset. The present values of the Company's asset retirement obligations were $116.4 million and $89.5 million as of December 31, 2013 and 2012, respectively. | ||||||||
Natural Gas Exploration Activities | ||||||||
The Company accounts for its natural gas exploration activities under the successful efforts method of accounting. Costs of exploratory wells are capitalized pending determination of whether the wells found commercially sufficient quantities of proved reserves. If a commercially sufficient quantity of proved reserves is not discovered, any associated previously capitalized exploratory costs associated with the drilling area are expensed. Costs of producing properties and natural gas mineral interests are amortized using the unit-of-production method. Costs incurred to develop proved reserves, including the cost of all development wells and related equipment used in the production of natural gas, are capitalized and amortized using the unit-of-production method. Unit-of-production amortization rates are revised when events and circumstances indicate an adjustment is necessary, but at least once a year, and such revisions are accounted for prospectively as changes in accounting estimates. | ||||||||
Impairment of Long-Lived Assets | ' | |||||||
Impairment of Long-Lived Assets | ||||||||
Property, plant and equipment and other long-lived assets are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, the Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable. If the carrying amount of an asset or asset groups exceeds its estimated future cash flows, impairment is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset or asset groups. Fair value is generally determined using market quotes, if available, or a discounted cash flow approach. The Company's estimate of future undiscounted cash flows are based on assumptions including long-term metallurgical coal pricing forecasts, anticipated production volumes and mine operating costs for the life of mine or estimated useful life of the asset. Due to market volatility associated with the global coal supply and demand as well as actual mine operating conditions experienced in the years being forecasted, it is possible that the estimate of undiscounted cash flows may change in the near term resulting in a potential need to write down the related assets to fair value, in particular the assets associated with purchased coal reserves. | ||||||||
With the exception of the Alabama North River Mine, which closed earlier than initially anticipated, no long-lived asset impairments resulted from the 2013 review. However, as mentioned above, global metallurgical coal pricing is volatile. In light of this volatility, the Company performed a sensitivity analysis and noted that a sustained price decrease of 5% over and above the prices used in the analysis through the life of all its mines would result in a potential impairment of coal reserves related to the Gauley Eagle Mine in the U.S. Operations segment and the Brule and Willow Creek mines within the Canadian and U.K. Operations segment and natural gas reserves of Walter Black Warrior Basin. The Company recognized asset impairment charges of approximately $8.0 million for the year ended December 31, 2013 related to the closure of the Alabama North River Mine. | ||||||||
For the year ended December 31, 2012, the Company recognized impairment charges relating to a natural gas exploration project in the U.S. Operations segment and asset impairment charges related to the impairment of property, plant and equipment at the Aberpergwm mine in the Canadian and U.K. Operations segment as carrying values of certain asset groups exceeded their fair value. See Note 5 for additional discussion on asset impairment matters. | ||||||||
Goodwill | ' | |||||||
Goodwill | ||||||||
Goodwill represents the excess of the purchase price over the fair value assigned to the net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not amortized but instead is tested for impairment at a minimum annually unless circumstances indicate a possible impairment may exist. The Company performs its annual goodwill testing as of the beginning of the fourth quarter at the reporting unit level. An impairment loss generally would be recognized when the carrying amount of the reporting unit exceeds the fair value of the reporting unit. The fair value of each reporting unit is determined using a market approach, an income approach or a combination of each. A number of significant assumptions and estimates are involved in determining fair value of the reporting unit including markets, sales volumes and prices, costs to produce, capital spending, working capital changes and the discount rate. Management considers historical experience and all available information at the time the fair values of its reporting units are estimated. During the year ended December 31, 2012, the Company performed an interim goodwill impairment test and, as a result, a goodwill impairment charge of $1.1 billion was recorded. See Note 4 for additional discussion on goodwill impairment matters. | ||||||||
Benefit Plans | ' | |||||||
Benefit Plans | ||||||||
The Company has various defined benefit pension plans covering certain U.S. salaried employees and eligible hourly employees. 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 cost of providing these benefits is determined on an actuarial basis and accrued over the employee's period of active service. | ||||||||
The Company is required to recognize the overfunded or underfunded status of these plans as determined on an actuarial basis as an asset or liability in its Consolidated Balance Sheets and to recognize changes in the funded status in the year in which the changes occur through other comprehensive income (loss). The Company is also required to measure plan assets and benefit obligations as of the date of the Company's fiscal year-end balance sheet and provide the required disclosures as of the end of each fiscal year. See Note 15 for additional discussion of employee benefit plans. | ||||||||
Workers' Compensation and Pneumoconiosis ("Black Lung") Benefits | ' | |||||||
Workers' Compensation and Pneumoconiosis ("Black Lung") Benefits | ||||||||
We are insured for workers' compensation benefits for work related injuries that occur within our U.S. operations. We retain the first $1 million to $2 million per accident for all of our U.S. subsidiaries and are fully insured above the deductible for statutory limits, with the exception of Jim Walter Resources located in Alabama, where we retain any amount in excess of $15 million per accident. Liabilities, including those related to claims incurred but not reported, are recorded principally using annual valuations based on discounted future expected payments and using historical data of the division or combined insurance industry data when historical data is limited. Workers' compensation liabilities were as follows (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Undiscounted aggregated estimated claims to be paid | $ | 46,119 | $ | 47,043 | ||||
Workers' compensation liability recorded on a discounted basis | $ | 40,238 | $ | 40,477 | ||||
The Company applies a discount rate at a risk-free interest rate, generally a U.S. Treasury bill rate, for each policy year. The rate used is one with a duration that corresponds to the weighted average expected payout period for each policy year. Once a discount rate is applied to a policy year, it remains the discount rate for that year until all claims are paid. The weighted average rate used for discounting the 2013 policy year liability at December 31, 2013 was 1.27%. A one-percentage-point increase in the discount rate on the discounted claims liability would decrease the liability by $0.3 million, while a one-percentage-point decrease in the discount rate would increase the liability by $0.3 million. | ||||||||
The Company is responsible for medical and disability benefits for black lung disease under the Federal Coal Mine Health and Safety Act of 1969, as amended, and is self-insured for certain amounts of black lung related claims. The Company performs an annual evaluation of the overall black lung liabilities at the December 31st balance sheet date. The calculation is performed using assumptions regarding rates of successful claims, discount factors, benefit increases and mortality rates, among others. The present value of the obligation recorded by the Company using a discount factor of 5.28% for 2013 and 4.44% for 2012 was $17.2 million and $17.9 million as of December 31, 2013 and 2012, respectively. A one-percentage-point increase in the discount rate on the discounted claims liability would decrease the liability by $2.7 million, while a one-percentage-point decrease in the discount rate would increase the liability by $3.4 million. | ||||||||
Derivative Instruments and Hedging Activities | ' | |||||||
Derivative Instruments and Hedging Activities | ||||||||
The Company enters into interest rate hedge agreements in accordance with the Company's internal debt and interest rate risk management policy, which is designed to mitigate risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Changes in the fair value of interest rate hedge agreements that are designated and effective as hedges are recorded in accumulated other comprehensive income (loss) ("OCI"). Deferred gains or losses are reclassified from OCI to the statement of operations in the same period as the underlying transactions are recorded and are recognized in the caption, interest expense. Changes in the fair value of interest rate hedge agreements that are not effective as hedges would be recorded immediately in the statement of operations as interest expense. | ||||||||
To protect against the reduction in the value of forecasted cash flows resulting from sales of natural gas, the Company periodically engages in a natural gas hedging program. The Company periodically hedges portions of its forecasted revenues from sales of natural gas with natural gas derivative contracts, generally either "swaps" or "collars". The Company enters into natural gas derivatives that effectively convert a portion of its forecasted sales at floating-rate natural gas prices to a fixed-rate basis, thus reducing the impact of natural gas price changes on revenues. When natural gas prices fall, the decline in value of future natural gas sales is offset by gains in the value of swap contracts designated as hedges. Conversely, when natural gas prices rise, the increase in the value of future cash flows from natural gas sales is offset by losses in the value of the swap contracts. Changes in the fair value of natural gas derivative agreements that are designated and effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI and recognized as miscellaneous income in the statement of operations in the same period as the underlying transactions are recognized. Changes in the fair value of natural gas hedge agreements that are not effective as hedges or are not designated as hedges would be recorded immediately in the statement of operations as miscellaneous income. | ||||||||
During the three years ended December 31, 2013, the Company did not hold any non-derivative instruments designated as hedges or any derivatives designated as fair value hedges. In addition, the Company does not enter into derivative financial instruments for speculative or trading purposes. Derivative contracts are entered into only with counterparties that management considers creditworthy. Cash flows from hedging activities are reported in the statement of cash flows in the same classification as the hedged item, generally as a component of cash flows from operations. | ||||||||
Foreign Currency Translation | ' | |||||||
Foreign Currency Translation | ||||||||
The functional currency of the Company's Canadian operations is the U.S. dollar, while the U.K. operation's functional currency is the British Pound. Our Canadian operations' monetary assets and liabilities are remeasured at period end exchange rates while non-monetary items are remeasured at historical rates. Income and expense accounts are remeasured at the average rates in effect during the year, except for those expenses related to balance sheet amounts that are remeasured at historical exchange rates. Our U.K. operations' assets and liabilities are translated using exchange rates in effect at the end of the period, and revenues and costs are translated using average exchange rates for the period. For the Company's Canadian operations, gains and losses from foreign currency remeasurement related to tax balances are included as a component of income tax expense while all other remeasurement gains and losses are included in miscellaneous income (expense). For the Company's U.K. operations, foreign currency translation adjustments are reported in OCI. The foreign currency remeasurement gain recognized in miscellaneous income for the year ended December 31, 2013 was $8.0 million compared to a loss of $3.1 million for the year ended December 31, 2012. | ||||||||
Stock-Based Compensation | ' | |||||||
Stock-Based Compensation | ||||||||
The Company periodically grants stock-based awards to employees and its Board of Directors and records the related compensation expense during the period of vesting. This compensation expense results in a corresponding credit to capital in excess of par value and the expense is generally recognized in selling, general and administrative expenses and cost of sales, as appropriate, utilizing the graded vesting method for stock options and the straight-line method for restricted stock units. The Company uses the Black- Scholes option pricing model to value stock option grants and estimates forfeitures in calculating the expense related to stock-based compensation. The Company uses the Monte Carlo simulation to value its performance share units in calculating the expense related to stock-based compensation. See Note 7 for additional disclosures on stock-based compensation and equity awards. | ||||||||
Environmental Expenditures | ' | |||||||
Environmental Expenditures | ||||||||
The Company capitalizes environmental expenditures that increase the life or efficiency of property or that reduce or prevent environmental contamination. The Company accrues for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and reasonably estimable. See Note 18 for additional disclosures of environmental matters. | ||||||||
Deferred Financing Costs | ' | |||||||
Deferred Financing Costs | ||||||||
The costs to obtain new debt financing or amend existing financing agreements are deferred and amortized to interest expense over the life of the related indebtedness or credit facility using the effective interest method. The unamortized balance of deferred financing costs was $62.7 million and $70.0 million at December 31, 2013 and 2012, respectively. Amounts classified as current were $14.9 million and $17.5 million at December 31, 2013 and 2012, respectively. Current amounts are included in other current assets and non-current amounts are included in other long-term assets in the accompanying consolidated balance sheets. | ||||||||
Income (Loss) per Share | ' | |||||||
Income (Loss) per Share | ||||||||
The Company calculates basic income (loss) per share based on the weighted average common shares outstanding during each period and diluted income (loss) per share based on weighted average common shares and dilutive common equivalent shares outstanding during each period. Dilutive common equivalent shares include the dilutive effect of stock awards. See Note 17 for additional disclosures on income (loss) per share. | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
The Company records a tax provision for the expected tax effects of the reported results of operations. The provision for income taxes is determined using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax impact of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce deferred income tax assets to the amount that is believed more likely than not to be realized. | ||||||||
The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | ||||||||
In the event that the Company determines all or part of the net deferred income tax assets are not realizable in the future, the Company will make an adjustment to the valuation allowance that would be charged to earnings in the period such determination is made. See Note 11 for additional disclosures on the accounting for income taxes. | ||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Schedule of workers' compensation liabilities | ' | |||||||
Workers' compensation liabilities were as follows (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Undiscounted aggregated estimated claims to be paid | $ | 46,119 | $ | 47,043 | ||||
Workers' compensation liability recorded on a discounted basis | $ | 40,238 | $ | 40,477 | ||||
Acquisitions_Tables
Acquisitions (Tables) (Western Coal Corp) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Western Coal Corp | ' | ||||
Acquisitions | ' | ||||
Purchase consideration and fair value of assets acquired and liabilities assumed | ' | ||||
The following tables summarize the purchase consideration and the purchase price allocation to the assets acquired and liabilities assumed (in thousands): | |||||
Purchase consideration: | |||||
Cash | $ | 2,173,080 | |||
Fair value of shares of common stock issued | 1,224,126 | ||||
Fair value of stock options issued and warrants | 34,765 | ||||
| | | | | |
Fair value of consideration transferred | 3,431,971 | ||||
Fair value of equity interest in Western Coal held before the acquisition | 314,231 | ||||
| | | | | |
Total consideration | $ | 3,746,202 | |||
| | | | | |
| | | | | |
Fair value of assets acquired and liabilities assumed: | |||||
Cash and cash equivalents | $ | 34,065 | |||
Receivables | 163,668 | ||||
Inventories | 121,229 | ||||
Other current assets | 86,498 | ||||
Mineral interests | 3,086,000 | ||||
Property, plant and equipment | 554,192 | ||||
Goodwill | 1,065,040 | ||||
Other long-term assets | 54,150 | ||||
| | | | | |
Total assets | 5,164,842 | ||||
| | | | | |
Accounts payable and accrued liabilities | 184,983 | ||||
Other current liabilities | 86,105 | ||||
Deferred tax liability | 1,046,708 | ||||
Other long-term liabilities | 100,844 | ||||
| | | | | |
Total liabilities | 1,418,640 | ||||
| | | | | |
Net assets acquired | $ | 3,746,202 | |||
| | | | | |
| | | | | |
Schedule of unaudited pro forma financial information | ' | ||||
The following unaudited pro forma financial information should not be considered indicative of either future results or results that might have occurred had the acquisition been consummated as of January 1, 2010 (in thousands): | |||||
For the year | |||||
ended | |||||
December 31, | |||||
2011 | |||||
Total revenues | |||||
As reported herein | $ | 2,571,358 | |||
Pro forma | $ | 2,795,566 | |||
Income from continuing operations | |||||
As reported herein | $ | 363,598 | |||
Pro forma | $ | 418,419 | |||
Goodwill_Impairment_Tables
Goodwill Impairment (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Goodwill Impairment | ' | |||||||||||||
Schedule of goodwill by segment | ' | |||||||||||||
Balance as of | Other—Primarily | Impairments | Balance as of | |||||||||||
December 31, | Currency | December 31, | ||||||||||||
2011 | Translation | 2012 | ||||||||||||
Goodwill, net: | ||||||||||||||
U.S. Operations | $ | 74,320 | $ | — | $ | (74,320 | ) | $ | — | |||||
Canadian and U.K. Operations | 992,434 | (2,345 | ) | (990,089 | ) | — | ||||||||
| | | | | | | | | | | | | | |
Total goodwill | $ | 1,066,754 | $ | (2,345 | ) | $ | (1,064,409 | ) | $ | — | ||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Equity_Award_Plans_Tables
Equity Award Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Equity Award Plans | ' | |||||||||||||
Summary of activity related to stock options during the year | ' | |||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic Value | ||||||||||||
Exercise | Remaining | $0 | ||||||||||||
Price | Contractual | |||||||||||||
Term (in years) | ||||||||||||||
Outstanding at December 31, 2012 | 541,369 | $ | 46.58 | |||||||||||
Granted | 267,624 | $ | 28.6 | |||||||||||
Exercised | (26,390 | ) | $ | 10.87 | ||||||||||
Forfeited or expired | (28,134 | ) | $ | 57.47 | ||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 31, 2013 | 754,469 | $ | 41.04 | 6.1 | $ | 363.9 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at December 31, 2013 | 437,282 | $ | 44.3 | 3.9 | $ | 244.4 | ||||||||
Schedule of weighted average assumptions used to determine the grant-date fair value of options granted | ' | |||||||||||||
For the year | ||||||||||||||
ended December 31, | ||||||||||||||
2013 | 2012 | 2011(1) | ||||||||||||
Risk free interest rate | 1.13 | % | 0.85 | % | 0.88 | % | ||||||||
Dividend yield | 1.1 | % | 0.55 | % | 0.52 | % | ||||||||
Expected life (years) | 4.98 | 4.95 | 2.46 | |||||||||||
Volatility | 73.54 | % | 75.79 | % | 57.51 | % | ||||||||
-1 | ||||||||||||||
Includes fully vested replacement stock options issued on April 1, 2011 in connection with the acquisition of Western Coal described in Note 3, which significantly reduced the expected life as compared with prior periods. | ||||||||||||||
Summary of activity related to restricted stock units during the year | ' | |||||||||||||
Shares | Weighted | Aggregate | ||||||||||||
Average | Intrinsic Value | |||||||||||||
Remaining | $0 | |||||||||||||
Contractual Term | ||||||||||||||
in Years | ||||||||||||||
Outstanding at December 31, 2012 | 149,271 | |||||||||||||
Granted | 121,364 | |||||||||||||
Vested | (38,908 | ) | ||||||||||||
Forfeited or expired | (17,719 | ) | ||||||||||||
| | | | | | | | | | | ||||
Outstanding at December 31, 2013 | 214,008 | 8.18 | $ | 3,644.70 | ||||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Summary of activity related to performance-based share units during the year | ' | |||||||||||||
Shares | Weighted | |||||||||||||
Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||
Outstanding at December 31, 2012 | — | |||||||||||||
Granted | 53,874 | $ | 52.38 | |||||||||||
Vested | — | |||||||||||||
Forfeited or expired | — | |||||||||||||
| | | | | | | | |||||||
Outstanding at December 31, 2013 | 53,874 | |||||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables | ' | |||||||
Schedule of receivables | ' | |||||||
Receivables are summarized as follows (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Trade receivables | $ | 150,394 | $ | 154,081 | ||||
Tax receivables | 127,130 | 83,203 | ||||||
Other receivables | 5,517 | 25,050 | ||||||
Less: Allowance for losses | (1,278 | ) | (5,367 | ) | ||||
| | | | | | | | |
Receivables, net | $ | 281,763 | $ | 256,967 | ||||
| | | | | | | | |
| | | | | | | | |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
Inventories are summarized as follows (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Coal | $ | 238,820 | $ | 228,910 | ||||
Raw materials and supplies | 73,827 | 77,108 | ||||||
| | | | | | | | |
Total inventories | $ | 312,647 | $ | 306,018 | ||||
| | | | | | | | |
| | | | | | | | |
Mineral_Interests_and_Property1
Mineral Interests and Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Mineral Interests and Property, Plant and Equipment | ' | |||||||
Schedule of property, plant and equipment | ' | |||||||
Property, plant and equipment are summarized as follows (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Land | $ | 79,733 | $ | 87,088 | ||||
Land improvements | 43,107 | 19,949 | ||||||
Buildings and leasehold improvements | 420,142 | 362,296 | ||||||
Mine development costs | 255,680 | 270,768 | ||||||
Machinery and equipment | 1,569,318 | 1,402,417 | ||||||
Gas properties and related development | 188,527 | 223,200 | ||||||
Construction in progress | 61,933 | 163,096 | ||||||
| | | | | | | | |
Total | 2,618,440 | 2,528,814 | ||||||
Less: Accumulated depreciation | (980,888 | ) | (796,683 | ) | ||||
| | | | | | | | |
Net | $ | 1,637,552 | $ | 1,732,131 | ||||
| | | | | | | | |
| | | | | | | | |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||||||
Schedule of Income tax expense (benefit) applicable to continuing operations | ' | ||||||||||||||||||||||||||||
Income tax expense (benefit) applicable to continuing operations consists of the following (in thousands): | |||||||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Current | Deferred(1) | Total | Current | Deferred | Total | Current | Deferred | Total | |||||||||||||||||||||
Federal | $ | (54,312 | ) | $ | 103,851 | $ | 49,539 | $ | 49,236 | $ | (45,330 | ) | $ | 3,906 | $ | 37,307 | $ | 80,701 | $ | 118,008 | |||||||||
State | (3,906 | ) | 15,040 | 11,134 | 3,860 | (1,747 | ) | 2,113 | 6,226 | 3,108 | 9,334 | ||||||||||||||||||
Foreign | (137 | ) | (102,374 | ) | (102,511 | ) | (20,080 | ) | (85,143 | ) | (105,223 | ) | 20,889 | (17,006 | ) | 3,883 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | (58,355 | ) | $ | 16,517 | $ | (41,838 | ) | $ | 33,016 | $ | (132,220 | ) | $ | (99,204 | ) | $ | 64,422 | $ | 66,803 | $ | 131,225 | |||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Schedule of deferred income tax assets and liabilities | ' | ||||||||||||||||||||||||||||
As of December 31, 2013 and December 31, 2012, the significant components of the Company's deferred income tax assets and liabilities were (in thousands): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Deferred income tax assets: | |||||||||||||||||||||||||||||
Net operating losses and credit carryforwards | $ | 278,016 | $ | 156,387 | |||||||||||||||||||||||||
Accrued expenses | 5,167 | 14,827 | |||||||||||||||||||||||||||
Contingent interest | 42,763 | 39,581 | |||||||||||||||||||||||||||
Other postretirement benefits | 223,346 | 247,578 | |||||||||||||||||||||||||||
Pension obligations | 2,925 | 23,725 | |||||||||||||||||||||||||||
Other | 15,243 | 34,214 | |||||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Total | 567,460 | 516,312 | |||||||||||||||||||||||||||
Less: valuation allowance for deferred income tax assets | (166,265 | ) | (20,919 | ) | |||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Net deferred income tax assets | 401,195 | 495,393 | |||||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||||||||||||||
Prepaid expenses | (13,494 | ) | (12,465 | ) | |||||||||||||||||||||||||
British Columbia mineral tax | (184,680 | ) | (243,229 | ) | |||||||||||||||||||||||||
Property, plant and equipment | (990,580 | ) | (943,523 | ) | |||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Total deferred income tax liabilities | (1,188,754 | ) | (1,199,217 | ) | |||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Net deferred income tax liability | $ | (787,559 | ) | $ | (703,824 | ) | |||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Deferred income taxes are classified as follows: | |||||||||||||||||||||||||||||
Current deferred income tax asset | $ | 37,067 | $ | 58,526 | |||||||||||||||||||||||||
Noncurrent deferred income tax asset | — | 160,422 | |||||||||||||||||||||||||||
Other current liabilities | (1,759 | ) | (1,085 | ) | |||||||||||||||||||||||||
Noncurrent deferred income tax liability | (822,867 | ) | (921,687 | ) | |||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Net deferred tax liability | $ | (787,559 | ) | $ | (703,824 | ) | |||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||
Reconciliation of effective tax rate to statutory rate | ' | ||||||||||||||||||||||||||||
The income tax expense (benefit) at the Company's effective tax rate differed from the U.S. statutory rate of 35% as follows (in thousands): | |||||||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense | $ | (400,841 | ) | $ | (1,164,759 | ) | $ | 494,823 | |||||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
Tax expense (benefit) at statutory tax rate of 35% | (140,294 | ) | $ | (407,665 | ) | $ | 173,188 | ||||||||||||||||||||||
Effect of: | |||||||||||||||||||||||||||||
Excess depletion benefit | (17,524 | ) | (26,107 | ) | (32,370 | ) | |||||||||||||||||||||||
Taxation of foreign operations | (5,663 | ) | (11,945 | ) | (36,545 | ) | |||||||||||||||||||||||
British Columbia mineral tax foreign currency effect | (26,778 | ) | 3,643 | (12,336 | ) | ||||||||||||||||||||||||
British Columbia mineral tax | (14,697 | ) | (22,365 | ) | 24,290 | ||||||||||||||||||||||||
Goodwill impairment | — | 372,543 | — | ||||||||||||||||||||||||||
State and local income tax, net of federal effect | (6,947 | ) | 2,470 | 7,394 | |||||||||||||||||||||||||
U.S. domestic production activities benefit | — | (2,950 | ) | (5,583 | ) | ||||||||||||||||||||||||
Valuation allowance on deferred tax assets | 145,322 | 19,189 | — | ||||||||||||||||||||||||||
Impact of statutory tax rate changes | 14,660 | (3,772 | ) | — | |||||||||||||||||||||||||
Credits and other incentives | (659 | ) | (2,301 | ) | — | ||||||||||||||||||||||||
Impact of West Virginia legal entity restructuring | 10,084 | — | — | ||||||||||||||||||||||||||
Acquisition costs | — | — | 8,078 | ||||||||||||||||||||||||||
Other | 658 | (19,944 | ) | 5,109 | |||||||||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
Tax expense (benefit) recognized | $ | (41,838 | ) | $ | (99,204 | ) | $ | 131,225 | |||||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits excluding penalties and interest | ' | ||||||||||||||||||||||||||||
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits excluding penalties and interest is as follows (in thousands): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Gross unrecognized tax benefits at beginning of year | $ | 89,631 | $ | 92,758 | $ | 39,191 | |||||||||||||||||||||||
Increases for tax positions taken in prior years | 347 | 10,019 | 31,704 | ||||||||||||||||||||||||||
Increases in tax positions for the current year | — | 8,058 | 23,169 | ||||||||||||||||||||||||||
Decreases for tax positions taken in prior years | (13,690 | ) | (18,440 | ) | — | ||||||||||||||||||||||||
Decreases for lapse of statute of limitations | — | (2,764 | ) | — | |||||||||||||||||||||||||
Decreases for changes in temporary differences | — | — | (1,306 | ) | |||||||||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
Gross unrecognized tax benefits at end of year | $ | 76,288 | $ | 89,631 | $ | 92,758 | |||||||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Asset Retirement Obligations | ' | |||||||
Schedule of changes in the asset retirement obligations | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Balance at beginning of year | $ | 89,478 | $ | 74,963 | ||||
Accretion expense | 9,079 | 4,411 | ||||||
Revisions in estimated cash flows | 26,453 | 14,353 | ||||||
Obligations settled | (8,617 | ) | (4,249 | ) | ||||
| | | | | | | | |
Balance at end of year | $ | 116,393 | $ | 89,478 | ||||
| | | | | | | | |
| | | | | | | | |
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accrued Expenses and Other Current Liabilities | ' | |||||||
Schedule of accrued expenses | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Accrued professional fees | $ | 23,855 | $ | 54,205 | ||||
Wage and employee benefits | 41,938 | 37,981 | ||||||
Accrued interest | 34,473 | 23,343 | ||||||
Other | 33,604 | 69,346 | ||||||
| | | | | | | | |
Total accrued expenses | $ | 133,870 | $ | 184,875 | ||||
| | | | | | | | |
| | | | | | | | |
Schedule of other current liabilities | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Accrual for tax interest and penalties | $ | 111,581 | $ | 103,181 | ||||
Accrual for uncertain tax positions | 42,433 | 37,960 | ||||||
Other | 60,059 | 65,332 | ||||||
| | | | | | | | |
Total other current liabilities | $ | 214,073 | $ | 206,473 | ||||
| | | | | | | | |
| | | | | | | | |
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Debt | ' | |||||||||||||||||||
Schedule of debt instruments | ' | |||||||||||||||||||
Debt consisted of the following (in thousands): | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | Weighted Average | Final Maturity | |||||||||||||||||
Stated Interest Rate At | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | ||||||||||||||||||||
2011 term loan A ($406.6 million face value) | $ | 401,052 | $ | 756,974 | 5.74% | 2016 | ||||||||||||||
2011 term loan B ($978.2 million face value) | 968,581 | 1,127,770 | 6.75% | 2018 | ||||||||||||||||
Revolving credit facility(1) | — | — | N/A | 2016 | ||||||||||||||||
9.875% senior notes ($500.0 million face value) | 496,831 | 496,510 | 9.88% | 2020 | ||||||||||||||||
8.50% senior notes | 450,000 | — | 8.50% | 2021 | ||||||||||||||||
9.50% senior secured notes ($450.0 million face value) | 447,492 | — | 9.50% | 2019 | ||||||||||||||||
Other(2) | 14,876 | 34,911 | Various | Various | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total debt | 2,778,832 | 2,416,165 | ||||||||||||||||||
Less: current debt(2) | (9,210 | ) | (18,793 | ) | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total long-term debt | $ | 2,769,622 | $ | 2,397,372 | ||||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
-1 | ||||||||||||||||||||
As of December 31, 2013, the revolving credit facility interest rate was tied to LIBOR or CDOR, plus a credit spread of 550 basis points and includes a commitment fee of 0.5% on the unused facility. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
This balance includes capital lease obligations (see Note 18) and an equipment financing agreement. | ||||||||||||||||||||
Minimum debt repayment schedule, excluding interest | ' | |||||||||||||||||||
The Company's minimum debt repayment schedule, excluding interest, as of December 31, 2013 is as follows (in thousands): | ||||||||||||||||||||
Payments Due | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||
2011 term loan A | $ | — | $ | 305,941 | $ | 100,625 | $ | — | $ | — | $ | — | ||||||||
2011 term loan B | — | — | — | — | 978,178 | — | ||||||||||||||
9.875% senior notes | — | — | — | — | — | 500,000 | ||||||||||||||
8.50% senior notes | — | — | — | — | — | 450,000 | ||||||||||||||
9.50% senior secured notes | — | — | — | — | — | 450,000 | ||||||||||||||
Other debt | 9,210 | 5,609 | 57 | — | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
$ | 9,210 | $ | 311,550 | $ | 100,682 | $ | — | $ | 978,178 | $ | 1,400,000 | |||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||||||||||
Schedule of amounts recognized for all of the entity's pension and postretirement benefit plans | ' | ||||||||||||||||||||||||
The amounts recognized for all of the Company's pension and postretirement benefit plans are as follows (in thousands): | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Accumulated benefit obligation | $ | 247,874 | $ | 278,357 | $ | 600,748 | $ | 662,464 | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 295,944 | $ | 258,780 | $ | 662,464 | $ | 577,918 | |||||||||||||||||
Service cost | 7,062 | 5,991 | 9,943 | 8,072 | |||||||||||||||||||||
Interest cost | 12,280 | 12,517 | 28,791 | 29,010 | |||||||||||||||||||||
Actuarial (gain) loss | (37,873 | ) | 29,933 | (74,146 | ) | 71,451 | |||||||||||||||||||
Benefits paid | (11,763 | ) | (11,501 | ) | (26,304 | ) | (23,987 | ) | |||||||||||||||||
Plan amendments | — | 224 | — | — | |||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Benefit obligation at end of year | $ | 265,650 | $ | 295,944 | $ | 600,748 | $ | 662,464 | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 232,960 | $ | 202,537 | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets | 35,788 | 28,499 | — | — | |||||||||||||||||||||
Employer contributions | 780 | 13,425 | 26,304 | 23,987 | |||||||||||||||||||||
Benefits paid | (11,763 | ) | (11,501 | ) | (26,304 | ) | (23,987 | ) | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Fair value of plan assets at end of year | $ | 257,765 | $ | 232,960 | $ | — | $ | — | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Unfunded status of the plan | $ | (7,885 | ) | $ | (62,984 | ) | $ | (600,748 | ) | $ | (662,464 | ) | |||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Amounts recognized in the balance sheet, pre-tax: | |||||||||||||||||||||||||
Other long-term assets | $ | 1,260 | $ | — | $ | — | $ | — | |||||||||||||||||
Other current liabilities | (7,089 | ) | (5,744 | ) | — | — | |||||||||||||||||||
Accumulated postretirement benefits obligation | |||||||||||||||||||||||||
Current | — | — | (30,036 | ) | (29,200 | ) | |||||||||||||||||||
Long-term | — | — | (570,712 | ) | (633,264 | ) | |||||||||||||||||||
Other long-term liabilities | (2,056 | ) | (57,240 | ) | — | ||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Net amount recognized | $ | (7,885 | ) | $ | (62,984 | ) | $ | (600,748 | ) | $ | (662,464 | ) | |||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Amounts recognized in accumulated other comprehensive income, pre-tax | |||||||||||||||||||||||||
Prior service cost | $ | 994 | $ | 1,257 | $ | 7,641 | $ | 8,871 | |||||||||||||||||
Net actuarial loss | 48,331 | 114,787 | 238,693 | 331,775 | |||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Net amount recognized | $ | 49,325 | $ | 116,044 | $ | 246,334 | $ | 340,646 | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Components of net periodic benefit cost | ' | ||||||||||||||||||||||||
The components of net periodic benefit cost are as follows (in thousands): | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||
For the years ended December 31, | For the years ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||
Service cost | $ | 7,062 | $ | 5,991 | $ | 5,163 | $ | 9,943 | $ | 8,072 | $ | 6,160 | |||||||||||||
Interest cost | 12,280 | 12,517 | 12,576 | 28,791 | 29,010 | 25,140 | |||||||||||||||||||
Expected return on plan assets | (16,941 | ) | (16,125 | ) | (15,717 | ) | — | — | — | ||||||||||||||||
Amortization of prior service cost (credit) | 263 | 256 | 272 | 1,230 | 1,045 | (961 | ) | ||||||||||||||||||
Amortization of net actuarial loss | 9,609 | 9,377 | 8,252 | 18,936 | 14,725 | 10,046 | |||||||||||||||||||
Settlement loss | — | — | 1,807 | — | — | — | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||
Net periodic benefit cost for continuing operations | $ | 12,273 | $ | 12,016 | $ | 12,353 | $ | 58,900 | $ | 52,852 | $ | 40,385 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | | | | | | | ||||||
Schedule of estimated portion of net prior service cost and net actuarial loss remaining in accumulated other comprehensive income that is expected to be recognized as a component of net periodic benefit cost in 2014 | ' | ||||||||||||||||||||||||
The estimated portions of net prior service cost and net actuarial loss remaining in accumulated other comprehensive income that is expected to be recognized as components of net periodic benefit costs in 2014 are as follows (in thousands): | |||||||||||||||||||||||||
Pension Benefits | Other | ||||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
Prior service cost | $ | 246 | $ | 1,227 | |||||||||||||||||||||
Net actuarial loss | 2,566 | 15,570 | |||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||
Net amount to be recognized | $ | 2,812 | $ | 16,797 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||||
| | | | | | | | ||||||||||||||||||
Schedule of changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | ' | ||||||||||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss) in 2013 are as follows (in thousands): | |||||||||||||||||||||||||
Pension Benefits | Other | Total | |||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
Current year net actuarial gain | $ | 56,721 | $ | 74,146 | $ | 130,867 | |||||||||||||||||||
Current year prior service cost | — | — | — | ||||||||||||||||||||||
Amortization of actuarial loss | 9,609 | 18,936 | 28,545 | ||||||||||||||||||||||
Amortization of prior service cost | 263 | 1,230 | 1,493 | ||||||||||||||||||||||
| | | | | | | | | | | |||||||||||||||
Total | 66,593 | 94,312 | 160,905 | ||||||||||||||||||||||
Deferred income taxes | (24,986 | ) | (35,027 | ) | (60,013 | ) | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||||
Total recognized in other comprehensive income (loss), net of taxes | $ | 41,607 | $ | 59,285 | $ | 100,892 | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||||
| | | | | | | | | | | |||||||||||||||
Summary of key assumptions used | ' | ||||||||||||||||||||||||
Pension Benefits | Other Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations: | |||||||||||||||||||||||||
Discount rate | 5.24 | % | 4.29 | % | 5.02 | % | 5.28 | % | 4.44 | % | 5.14 | % | |||||||||||||
Rate of compensation increase | 3.7 | % | 3.7 | % | 3.7 | % | — | — | — | ||||||||||||||||
Weighted average assumptions used to determine net periodic cost: | |||||||||||||||||||||||||
Discount rate | 4.29 | % | 5.02 | % | 5.3 | % | 4.44 | % | 5.14 | % | 5.35 | % | |||||||||||||
Expected return on plan assets | 7.5 | % | 7.75 | % | 7.75 | % | — | — | — | ||||||||||||||||
Rate of compensation increase | 3.7 | % | 3.7 | % | 3.7 | % | — | — | — | ||||||||||||||||
Summary of assumed health care cost trend rates | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Pre-65 | Post-65 | Pre-65 | Post-65 | Pre-65 | Post-65 | ||||||||||||||||||||
Assumed health care cost trend rates at December 31: | |||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7 | % | 7 | % | 7.5 | % | 7.5 | % | 8 | % | 8 | % | |||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.5 | % | 4.5 | % | 5 | % | 5 | % | 5 | % | 5 | % | |||||||||||||
Year that the rate reaches the ultimate trend rate | 2027 | 2027 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||||||
Schedule of pension trust's strategic asset allocation targets | ' | ||||||||||||||||||||||||
Actual | |||||||||||||||||||||||||
Strategic | Tactical | Allocation | |||||||||||||||||||||||
Allocation | Range | 2013 | 2012 | ||||||||||||||||||||||
Equity investments: | |||||||||||||||||||||||||
U.S. large-cap funds | 38.5 | % | 30-47 | % | 39 | % | 37.3 | % | |||||||||||||||||
International fund | 13 | % | 16-Oct | % | 14.3 | % | 13.3 | % | |||||||||||||||||
U.S. mid-cap fund | 8.5 | % | 11-Jun | % | 9.7 | % | 9.6 | % | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Total equity investments | 60 | % | 50-70 | % | 63 | % | 60.2 | % | |||||||||||||||||
Fixed income investments | 40 | % | 30-50 | % | 36.5 | % | 39.2 | % | |||||||||||||||||
Cash | 0 | % | 0-5 | % | 0.5 | % | 0.6 | % | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||
| | | | | | | | | | | | | | ||||||||||||
Schedule of the fair values of pension trust's assets by asset category | ' | ||||||||||||||||||||||||
The fair values of the Pension Trust's assets, all of which are valued based on quoted market prices in active markets for identified assets (Level 1), were as follows (in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
Asset Class: | 2013 | 2012 | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,224 | $ | 1,397 | |||||||||||||||||||||
Equity investments(a): | |||||||||||||||||||||||||
U.S. large cap funds | 100,384 | 86,892 | |||||||||||||||||||||||
International fund | 36,812 | 31,038 | |||||||||||||||||||||||
U.S. mid-cap fund | 25,143 | 22,368 | |||||||||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||||
Intermediate-term bond(b) | 34,091 | 85,814 | |||||||||||||||||||||||
Long-term bond(c) | 60,111 | 5,451 | |||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||
Total | $ | 257,765 | $ | 232,960 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||||
| | | | | | | | ||||||||||||||||||
(a) | |||||||||||||||||||||||||
Equity investments include investments in domestic and international mutual funds investing in large- and mid-capitalization companies. Investments in mutual funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date and are traded on listed exchanges. | |||||||||||||||||||||||||
(b) | |||||||||||||||||||||||||
This fund seeks maximum total return through a diversified portfolio of fixed income instruments of varying maturities, which may be represented by forward or derivatives such as options, futures, contracts, or swap agreements. Fixed income instruments include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public or private-sector entities. This fund also invests in high yield securities, mortgage-related securities and securities denominated in foreign currencies. This fund is valued at the net asset value per share multiplied by the number of shares held as of the measurement date and is traded on a listed exchange. | |||||||||||||||||||||||||
(c) | |||||||||||||||||||||||||
This fund invests in diversified portfolio consisting primarily of high-quality bonds and other fixed income securities, including U.S. government obligations, mortgage-and asset-backed securities, corporate and municipal bonds, and collateralized mortgage obligations of varying maturities. This fund is valued at the net asset value per share multiplied by the number of shares held as of the measurement date and is traded on a listed exchange. | |||||||||||||||||||||||||
Schedule of one-percentage point change in the trend rate | ' | ||||||||||||||||||||||||
A one-percentage-point change in the rate for each of these assumptions would have had the following effects as of and for the year ended December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Increase (Decrease) | |||||||||||||||||||||||||
1-Percentage | 1-Percentage | ||||||||||||||||||||||||
Point Increase | Point Decrease | ||||||||||||||||||||||||
Healthcare cost trend: | |||||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 7,468 | $ | (5,790 | ) | ||||||||||||||||||||
Effect on postretirement benefit obligation | $ | 78,720 | $ | (65,091 | ) | ||||||||||||||||||||
Discount rate: | |||||||||||||||||||||||||
Effect on postretirement service and interest cost components | $ | (297 | ) | $ | 293 | ||||||||||||||||||||
Effect on postretirement benefit obligation | $ | (67,637 | ) | $ | 83,447 | ||||||||||||||||||||
Effect on current year postretirement expense | $ | (6,140 | ) | $ | 7,638 | ||||||||||||||||||||
Effect on pension service and interest cost components | $ | 159 | $ | (272 | ) | ||||||||||||||||||||
Effect on pension benefit obligation | $ | (27,881 | ) | $ | 33,879 | ||||||||||||||||||||
Effect on current year pension expense | $ | (2,978 | ) | $ | 3,547 | ||||||||||||||||||||
Expected return on plan assets: | |||||||||||||||||||||||||
Effect on current year pension expense | $ | (2,259 | ) | $ | 2,259 | ||||||||||||||||||||
Rate of compensation increase: | |||||||||||||||||||||||||
Effect on pension service and interest cost components | $ | 631 | $ | (557 | ) | ||||||||||||||||||||
Effect on pension benefit obligation | $ | 4,929 | $ | (4,463 | ) | ||||||||||||||||||||
Effect on current year pension expense | $ | 1,058 | $ | (948 | ) | ||||||||||||||||||||
Schedule of estimated benefit payments from the plans that are expected to be paid | ' | ||||||||||||||||||||||||
The following estimated benefit payments from the plans, which reflect expected future service as appropriate, are expected to be paid as follows (in thousands): | |||||||||||||||||||||||||
Pension | Other | Medicare | |||||||||||||||||||||||
Benefits | Postretirement | Part D | |||||||||||||||||||||||
Benefits Before | Subsidy | ||||||||||||||||||||||||
Medicare | |||||||||||||||||||||||||
Subsidy | |||||||||||||||||||||||||
2014 | $ | 20,326 | $ | 32,158 | $ | 2,121 | |||||||||||||||||||
2015 | $ | 14,820 | $ | 34,127 | $ | 2,391 | |||||||||||||||||||
2016 | $ | 14,772 | $ | 36,056 | $ | 2,650 | |||||||||||||||||||
2017 | $ | 15,814 | $ | 37,921 | $ | 2,921 | |||||||||||||||||||
2018 | $ | 16,516 | $ | 39,824 | $ | 3,222 | |||||||||||||||||||
Years 2019-2023 | $ | 92,643 | $ | 217,871 | $ | 20,982 | |||||||||||||||||||
Schedule of additional information regarding the 1974 Pension Plan | ' | ||||||||||||||||||||||||
The following table provides additional information regarding the 1974 Pension Plan as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Pension | Contributions of Walter | ||||||||||||||||||||||||
Protection Act | Energy | ||||||||||||||||||||||||
EIN/Pension | Zone Status | FIP/RP Status | Surcharge | Expiration Date of | |||||||||||||||||||||
Plan Number | Pending/Implemented | Imposed | Collective-Bargaining | ||||||||||||||||||||||
Pension Fund | 2013 | 2012 | 2013 | 2012 | 2011 | Agreement | |||||||||||||||||||
United Mine Workers of America 1974 Pension Plan(1) | 52-1050282/002 | Yellow | Yellow | Yes | $ | 19,670 | $ | 20,948 | $ | 19,520 | No | 12/31/16 | |||||||||||||
-1 | |||||||||||||||||||||||||
The enrolled actuary for the 1974 Pension Plan certified to the U.S. Department of the Treasury and the plan sponsor that the plan is in "Seriously Endangered Status" for the plan year beginning July 1, 2013 and ending June 30, 2014. The plan adopted a funding improvement plan on May 25, 2012. | |||||||||||||||||||||||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Net Income (Loss) Per Share | ' | |||||||||||||||||||
Reconciliation of the basic and diluted net income (loss) per share computations | ' | |||||||||||||||||||
A reconciliation of the basic and diluted net income (loss) per share computations for the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands, except per share data): | ||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||
Numerator: | ||||||||||||||||||||
Income (loss) from continuing operations | $ | (359,003 | ) | $ | (359,003 | ) | $ | (1,065,555 | ) | $ | (1,065,555 | ) | $ | 363,598 | $ | 363,598 | ||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Income from discontinued operations | $ | — | $ | — | $ | 5,180 | $ | 5,180 | $ | — | $ | — | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Denominator: | ||||||||||||||||||||
Average number of common shares outstanding | 62,564 | 62,564 | 62,536 | 62,536 | 60,257 | 60,257 | ||||||||||||||
Effect of dilutive securities | ||||||||||||||||||||
Stock awards and warrants(a) | — | — | — | — | — | 354 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
62,564 | 62,564 | 62,536 | 62,536 | 60,257 | 60,611 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | $ | (5.74 | ) | $ | (5.74 | ) | $ | (17.04 | ) | $ | (17.04 | ) | $ | 6.03 | $ | 6 | ||||
Income from discontinued operations | — | — | 0.08 | 0.08 | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) per share | $ | (5.74 | ) | $ | (5.74 | ) | $ | (16.96 | ) | $ | (16.96 | ) | $ | 6.03 | $ | 6 | ||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
(a) | ||||||||||||||||||||
Stock awards represent 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. In periods of net loss, the number of shares used to calculate diluted earnings per share is the same as basic earnings per share; therefore, the effect of dilutive securities is zero for such periods. The weighted average number of stock options and restricted stock units outstanding of 539,682, 238,210, and 31,511 for the years ended December 31, 2013, 2012 and 2011, respectively, were excluded because their effect would have been anti-dilutive. | ||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies | ' | |||||||
Schedule of future minimum payments under non-cancellable capitalized and operating leases | ' | |||||||
Future minimum payments under non-cancellable capitalized and operating leases as of December 31, 2013 were as follows (in thousands): | ||||||||
Capitalized | Operating | |||||||
Leases | Leases | |||||||
2014 | $ | 8,289 | $ | 9,917 | ||||
2015 | 5,564 | 3,628 | ||||||
2016 | 39 | 3,468 | ||||||
2017 | — | 3,216 | ||||||
2018 | — | 2,616 | ||||||
Thereafter | — | 2,892 | ||||||
| | | | | | | | |
Total | 13,892 | $ | 25,737 | |||||
| | | | | | | | |
| | | | | | | | |
Less: amount representing interest and other executory costs | (750 | ) | ||||||
| | | | | | | | |
Present value of minimum lease payments | $ | 13,142 | ||||||
| | | | | | | | |
| | | | | | | | |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Schedule of fair values of derivative instruments | ' | |||||||||||||||||||
The following table presents the fair values of the Company's derivative instruments as well as their classification within the Consolidated Balance Sheets (in thousands). See Note 21 for additional information related to the fair values of the Company's derivative instruments. | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Asset derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||
Interest rate cap(1) | $ | 1 | $ | 12 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Liability derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||
Interest rate swaps(2) | $ | 3,080 | $ | 6,615 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
-1 | ||||||||||||||||||||
$1 thousand and $8 thousand is included within other current assets in the Consolidated Balance Sheets as of December 31, 2013 and 2012, respectively, while $4 thousand is included within other long-term assets in the Consolidated Balance Sheets as of December 31, 2012. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
$3.1 million and $4.1 million is included within other current liabilities in the Consolidated Balance Sheets as of December 31, 2013 and 2012, respectively, while $2.5 million is included within other long-term liabilities as of December 31, 2012. | ||||||||||||||||||||
Schedule of gains and losses from derivative instruments | ' | |||||||||||||||||||
The following tables present the gains and losses from derivative instruments for the years ended December 31, 2013 and 2012 and their location within the consolidated financial statements (in thousands). | ||||||||||||||||||||
Derivatives designated as cash flow | Gain (loss), net of tax, | (Gain) loss, net of tax, | Loss, net of tax, | |||||||||||||||||
hedging instruments | recognized in | reclassified from | reclassified from | |||||||||||||||||
accumulated other | accumulated other | accumulated other | ||||||||||||||||||
comprehensive | comprehensive | comprehensive | ||||||||||||||||||
income (loss) | income (loss) | income (loss) | ||||||||||||||||||
to earnings(1)(2) | to earnings | |||||||||||||||||||
(ineffective portion)(3) | ||||||||||||||||||||
For the years ended | For the years ended | For the years ended | ||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Natural gas hedges | $ | — | $ | (5,812 | ) | $ | — | $ | 3,279 | $ | — | $ | — | |||||||
Interest rate swaps | 4,894 | 1,459 | (2,546 | ) | (2,079 | ) | 184 | — | ||||||||||||
Interest rate cap | (8 | ) | (263 | ) | — | — | — | — | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 4,886 | $ | (4,616 | ) | $ | (2,546 | ) | $ | 1,200 | $ | 184 | $ | — | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | ||||||||||||||||||||
Natural gas hedge amounts are recorded within miscellaneous income in the Consolidated Statements of Operations. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
Interest rate swap amounts are recorded within interest expense in the Consolidated Statements of Operations. | ||||||||||||||||||||
-3 | ||||||||||||||||||||
The ineffective portion of the interest rate swap is recorded within other income (loss) in the Consolidated Statements of Operations. | ||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
Schedule of changes in accumulated other comprehensive income (loss) by component | ' | ||||||||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component for the year ended December 31, 2013, net of tax (in thousands). | |||||||||||||||||
Pension | Unrealized | Foreign | Unrealized | Total | |||||||||||||
and other | gain/(loss) | currency | gain on | ||||||||||||||
postretirement | on hedges | translation | investments | ||||||||||||||
plans | adjustment | ||||||||||||||||
Beginning balance as of December 31, 2012 | $ | (266,042 | ) | $ | (4,203 | ) | $ | (1,502 | ) | $ | 897 | $ | (270,850 | ) | |||
Other comprehensive income (loss) before reclassifications | 82,335 | 4,886 | 6,073 | (44 | ) | 93,250 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 18,557 | (2,362 | ) | — | -1 | (853 | ) | 15,342 | |||||||||
| | | | | | | | | | | | | | | | | |
Net current-period other comprehensive income (loss) | 100,892 | 2,524 | 6,073 | (897 | ) | 108,592 | |||||||||||
| | | | | | | | | | | | | | | | | |
Ending balance as of December 31, 2013 | $ | (165,150 | ) | $ | (1,679 | ) | $ | 4,571 | $ | — | $ | (162,258 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||
Foreign currency translation adjustments are reclassified from accumulated other comprehensive income (loss) upon sale or substantially complete liquidation of an investment in a foreign entity. | |||||||||||||||||
Schedule of amounts reclassified out of each component of accumulated other comprehensive income (loss) | ' | ||||||||||||||||
The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the year ended December 31, 2013 (in thousands). | |||||||||||||||||
Details about Accumulated Other Comprehensive Income | Amount Reclassified | Affected Line Item in the | |||||||||||||||
(Loss) Components | from Accumulated | Consolidated Statements of Operations | |||||||||||||||
Other Comprehensive | |||||||||||||||||
Income (Loss) | |||||||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||
Interest rate swaps | $ | (4,117 | ) | Interest income | |||||||||||||
Interest rate swaps (ineffective portion) | 297 | Other loss | |||||||||||||||
| | | | | | ||||||||||||
(3,820 | ) | Total before tax | |||||||||||||||
1,458 | Income tax expense | ||||||||||||||||
| | | | | | ||||||||||||
$ | (2,362 | ) | Net of tax | ||||||||||||||
| | | | | | ||||||||||||
| | | | | | ||||||||||||
Amortization of pension and other postretirement benefit plans: | |||||||||||||||||
Prior service cost | $ | 1,493 | (a) | ||||||||||||||
Net actuarial loss | 28,545 | (a) | |||||||||||||||
| | | | | | ||||||||||||
30,038 | Total before tax | ||||||||||||||||
(11,481 | ) | Income tax benefit | |||||||||||||||
| | | | | | ||||||||||||
$ | 18,557 | Net of tax | |||||||||||||||
| | | | | | ||||||||||||
| | | | | | ||||||||||||
Gains and losses on available-for-sale securities | $ | (1,382 | ) | Other income | |||||||||||||
529 | Income tax expense | ||||||||||||||||
| | | | | | ||||||||||||
$ | (853 | ) | Net of tax | ||||||||||||||
| | | | | | ||||||||||||
| | | | | | ||||||||||||
(a) | |||||||||||||||||
Amortization of pension benefit items is included in cost of sales (exclusive of depreciation and depletion) and selling, general and administrative expense while amortization of other postretirement benefit items is included in other postretirement benefits within the Consolidated Statements of Operations. | |||||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||
December 31, 2013 | ||||||||||||||
Fair Value | ||||||||||||||
Measurements Using | Total Fair | |||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Value | ||||||||||
Assets: | ||||||||||||||
Interest rate cap | $ | — | $ | 1 | $ | — | $ | 1 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Liabilities: | ||||||||||||||
Interest rate swaps | $ | — | $ | 3,080 | $ | — | $ | 3,080 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||
Fair Value | ||||||||||||||
Measurements Using | Total Fair | |||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Value | ||||||||||
Assets: | ||||||||||||||
Interest rate cap | $ | — | $ | 12 | $ | — | $ | 12 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Liabilities: | ||||||||||||||
Interest rate swaps | $ | — | $ | 6,615 | $ | — | $ | 6,615 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of carrying amounts and fair values of debt | ' | |||||||||||||
The carrying amounts and fair values of the Company's debt are presented below (in thousands): | ||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
(in thousands) | Carrying | Fair Value | Carrying | Fair Value | ||||||||||
Amount | Amount | |||||||||||||
2011 Term Loan A | $ | 401,052 | $ | 403,517 | $ | 756,974 | $ | 758,867 | ||||||
2011 Term Loan B | $ | 968,581 | $ | 959,838 | $ | 1,127,770 | $ | 1,135,293 | ||||||
9.875% Senior Notes | $ | 496,831 | $ | 431,250 | $ | 496,510 | $ | 500,000 | ||||||
8.50% Senior Notes | $ | 450,000 | $ | 374,625 | $ | — | $ | — | ||||||
9.50% Senior Secured Notes | $ | 447,492 | $ | 474,750 | $ | — | $ | — |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Segment Information | ' | ||||||||||
Summarized financial information by reportable segment | ' | ||||||||||
Summarized financial information concerning the Company's reportable segments is shown in the following tables (in thousands): | |||||||||||
For the years ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Revenues: | |||||||||||
U.S. Operations | $ | 1,331,308 | $ | 1,728,363 | $ | 1,871,182 | |||||
Canadian and U.K. Operations | 527,989 | 668,313 | 698,054 | ||||||||
Other | 1,334 | 3,219 | 2,122 | ||||||||
| | | | | | | | | | | |
Total Revenues(a) | $ | 1,860,631 | $ | 2,399,895 | $ | 2,571,358 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Segment operating income (loss)(b): | |||||||||||
U.S. Operations | $ | 58,371 | $ | 188,696 | $ | 561,370 | |||||
Canadian and U.K. Operations | (209,709 | ) | (1,158,591 | ) | 86,538 | ||||||
Other | (19,627 | ) | (43,231 | ) | (74,477 | ) | |||||
| | | | | | | | | | | |
Operating income (loss) | (170,965 | ) | (1,013,126 | ) | 573,431 | ||||||
Less interest expense, net | (232,751 | ) | (138,552 | ) | (96,214 | ) | |||||
Other income (loss) | 2,875 | (13,081 | ) | 17,606 | |||||||
| | | | | | | | | | | |
Income (loss) from continuing operations before income tax expense (benefit) | (400,841 | ) | (1,164,759 | ) | 494,823 | ||||||
Income tax expense (benefit) | (41,838 | ) | (99,204 | ) | 131,225 | ||||||
| | | | | | | | | | | |
Income (loss) from continuing operations | $ | (359,003 | ) | $ | (1,065,555 | ) | $ | 363,598 | |||
| | | | | | | | | | | |
| | | | | | | | | | | |
Impairment and restructuring charges: | |||||||||||
U.S. Operations | $ | (7,763 | ) | $ | 114,281 | $ | — | ||||
Canadian and U.K. Operations | 10,646 | 999,198 | — | ||||||||
Other | — | — | — | ||||||||
| | | | | | | | | | | |
Total | $ | 2,883 | $ | 1,113,479 | $ | — | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
For the years ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Depreciation and depletion: | |||||||||||
U.S. Operations | $ | 167,668 | $ | 173,140 | $ | 155,702 | |||||
Canadian and U.K. Operations | 141,696 | 141,713 | 74,203 | ||||||||
Other | 2,150 | 1,379 | 776 | ||||||||
| | | | | | | | | | | |
Total | $ | 311,514 | $ | 316,232 | $ | 230,681 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Capital expenditures: | |||||||||||
U.S. Operations | $ | 133,407 | $ | 162,535 | $ | 149,996 | |||||
Canadian and U.K. Operations | 18,331 | 224,583 | 264,476 | ||||||||
Other | 2,158 | 4,394 | 94 | ||||||||
| | | | | | | | | | | |
Total | $ | 153,896 | $ | 391,512 | $ | 414,566 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
As of December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Identifiable assets by segment: | |||||||||||
U.S. Operations | $ | 1,265,255 | $ | 1,603,745 | $ | 1,118,451 | |||||
Canadian and U.K. Operations | 3,687,925 | 3,728,817 | 5,021,521 | ||||||||
Other | 637,680 | 435,858 | 716,536 | ||||||||
| | | | | | | | | | | |
Total | $ | 5,590,860 | $ | 5,768,420 | $ | 6,856,508 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Long-lived assets by country: | |||||||||||
U.S. | $ | 998,763 | $ | 1,034,992 | $ | 1,096,763 | |||||
Canada | 3,092,483 | 3,203,227 | 3,195,377 | ||||||||
U.K. | 451,308 | 459,469 | 395,451 | ||||||||
| | | | | | | | | | | |
Total | $ | 4,542,554 | $ | 4,697,688 | $ | 4,687,591 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(a) | |||||||||||
Export sales were $1.5 billion, $1.9 billion and $2.0 billion for the years ended December 31, 2013, 2012 and 2011, respectively. Export sales to customers in foreign countries in excess of 10% of consolidated revenues for the years ended December 31, 2013, 2012 and 2011 were as follows: | |||||||||||
(b) | |||||||||||
Segment operating income (loss) amounts include expenses for other postretirement benefits. A breakdown by segment of other postretirement benefits (income) expense is as follows (in thousands) | |||||||||||
Schedule of export sales to customers in foreign countries in excess of 10% of consolidated revenues | ' | ||||||||||
Percent of Consolidated Revenues | |||||||||||
For the years ended December 31, | |||||||||||
Country | 2013 | 2012 | 2011 | ||||||||
Japan | 13.20% | 11.50% | 9.40% | ||||||||
Brazil | 13.30% | 10.70% | 10.50% | ||||||||
Germany | 10.50% | 9.70% | 9.80% | ||||||||
Schedule of breakdown by segment of other postretirement benefits (income) expense | ' | ||||||||||
A breakdown by segment of other postretirement benefits (income) expense is as follows (in thousands): | |||||||||||
For the years ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. Operations | $ | 59,118 | $ | 53,301 | $ | 41,745 | |||||
Canadian and U.K. Operations | — | — | — | ||||||||
Other | (218 | ) | (449 | ) | (1,360 | ) | |||||
| | | | | | | | | | | |
$ | 58,900 | $ | 52,852 | $ | 40,385 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Supplemental_Guarantor_and_Non1
Supplemental Guarantor and Non-Guarantor Financial Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Supplemental Guarantor and Non-Guarantor Financial Information | ' | ||||||||||||||||
Schedule of supplemental condensed consolidating balance sheets | ' | ||||||||||||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 234,150 | $ | 101 | $ | 26,567 | $ | — | $ | 260,818 | |||||||
Receivables, net | 113,936 | 90,460 | 77,367 | — | 281,763 | ||||||||||||
Intercompany receivables | — | 30,126 | 57,778 | (87,904 | ) | — | |||||||||||
Intercompany loans receivable | 63,549 | 1,104,282 | — | (1,167,831 | ) | — | |||||||||||
Inventories | — | 168,434 | 144,213 | — | 312,647 | ||||||||||||
Deferred income taxes | 23,957 | 12,154 | 956 | — | 37,067 | ||||||||||||
Prepaid expenses | 2,245 | 34,011 | 2,766 | — | 39,022 | ||||||||||||
Other current assets | 15,257 | 440 | 2,334 | — | 18,031 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 453,094 | 1,440,008 | 311,981 | (1,255,735 | ) | 949,348 | |||||||||||
Mineral interests, net | — | 7,294 | 2,897,708 | — | 2,905,002 | ||||||||||||
Property, plant and equipment, net | 7,248 | 764,406 | 865,898 | — | 1,637,552 | ||||||||||||
Deferred income taxes | 3,049 | 4,458 | — | (7,507 | ) | — | |||||||||||
Investment in subsidiaries | 4,409,683 | 86,357 | — | (4,496,040 | ) | — | |||||||||||
Other long-term assets | 73,564 | 10,323 | 15,071 | — | 98,958 | ||||||||||||
| | | | | | | | | | | | | | | | | |
$ | 4,946,638 | $ | 2,312,846 | $ | 4,090,658 | $ | (5,759,282 | ) | $ | 5,590,860 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Current debt | $ | — | $ | 1,313 | $ | 7,897 | $ | — | $ | 9,210 | |||||||
Accounts payable | 5,604 | 64,678 | 22,430 | — | 92,712 | ||||||||||||
Accrued expenses | 34,551 | 53,582 | 45,737 | — | 133,870 | ||||||||||||
Intercompany payables | 87,904 | — | — | (87,904 | ) | — | |||||||||||
Intercompany loans payable | 1,104,282 | — | 63,549 | (1,167,831 | ) | — | |||||||||||
Accumulated other postretirement benefits obligation | 94 | 29,942 | — | — | 30,036 | ||||||||||||
Other current liabilities | 164,364 | 27,062 | 22,647 | — | 214,073 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 1,396,799 | 176,577 | 162,260 | (1,255,735 | ) | 479,901 | |||||||||||
Long-term debt | 2,763,957 | — | 5,665 | — | 2,769,622 | ||||||||||||
Accumulated other postretirement benefits obligation | 263 | 570,449 | — | — | 570,712 | ||||||||||||
Deferred income taxes | — | — | 830,374 | (7,507 | ) | 822,867 | |||||||||||
Other long-term liabilities | 32,925 | 73,420 | 88,719 | — | 195,064 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities | 4,193,944 | 820,446 | 1,087,018 | (1,263,242 | ) | 4,838,166 | |||||||||||
Stockholders' equity | 752,694 | 1,492,400 | 3,003,640 | (4,496,040 | ) | 752,694 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and stockholders' equity | $ | 4,946,638 | $ | 2,312,846 | $ | 4,090,658 | $ | (5,759,282 | ) | $ | 5,590,860 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 83,833 | $ | 61 | $ | 32,707 | $ | — | $ | 116,601 | |||||||
Receivables, net | 64,106 | 113,182 | 79,679 | — | 256,967 | ||||||||||||
Intercompany receivables | 721,293 | — | — | (721,293 | ) | — | |||||||||||
Intercompany loans receivable | 118,079 | 1,074,879 | — | (1,192,958 | ) | — | |||||||||||
Inventories | — | 131,893 | 174,125 | — | 306,018 | ||||||||||||
Deferred income taxes | 39,375 | 17,687 | 1,464 | — | 58,526 | ||||||||||||
Prepaid expenses | 1,869 | 45,327 | 6,580 | — | 53,776 | ||||||||||||
Other current assets | 17,559 | 1,109 | 5,260 | — | 23,928 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 1,046,114 | 1,384,138 | 299,815 | (1,914,251 | ) | 815,816 | |||||||||||
Mineral interests, net | — | 18,475 | 2,947,082 | — | 2,965,557 | ||||||||||||
Property, plant and equipment, net | 8,448 | 790,900 | 932,783 | — | 1,732,131 | ||||||||||||
Deferred income taxes | 52,363 | 112,560 | (4,501 | ) | — | 160,422 | |||||||||||
Investment in subsidiaries | 3,530,094 | — | — | (3,530,094 | ) | — | |||||||||||
Other long-term assets | 71,622 | 9,375 | 13,497 | — | 94,494 | ||||||||||||
| | | | | | | | | | | | | | | | | |
$ | 4,708,641 | $ | 2,315,448 | $ | 4,188,676 | $ | (5,444,345 | ) | $ | 5,768,420 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Current debt | $ | — | $ | 10,196 | $ | 8,597 | $ | — | $ | 18,793 | |||||||
Accounts payable | 5,128 | 78,260 | 31,525 | — | 114,913 | ||||||||||||
Accrued expenses | 27,197 | 83,155 | 74,523 | — | 184,875 | ||||||||||||
Intercompany payables | — | 567,360 | 153,933 | (721,293 | ) | — | |||||||||||
Intercompany loans payable | 1,074,879 | — | 118,079 | (1,192,958 | ) | — | |||||||||||
Accumulated other postretirement benefits obligation | 131 | 29,069 | — | — | 29,200 | ||||||||||||
Other current liabilities | 157,044 | 24,389 | 25,040 | — | 206,473 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 1,264,379 | 792,429 | 411,697 | (1,914,251 | ) | 554,254 | |||||||||||
Long-term debt | 2,381,255 | 1,784 | 14,333 | — | 2,397,372 | ||||||||||||
Accumulated other postretirement benefits obligation | 452 | 632,812 | — | — | 633,264 | ||||||||||||
Deferred income taxes | — | — | 921,687 | — | 921,687 | ||||||||||||
Other long-term liabilities | 51,984 | 128,593 | 70,695 | — | 251,272 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities | 3,698,070 | 1,555,618 | 1,418,412 | (1,914,251 | ) | 4,757,849 | |||||||||||
Stockholders' equity | 1,010,571 | 759,830 | 2,770,264 | (3,530,094 | ) | 1,010,571 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and stockholders' equity | $ | 4,708,641 | $ | 2,315,448 | $ | 4,188,676 | $ | (5,444,345 | ) | $ | 5,768,420 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Schedule of supplemental condensed consolidating statements of operations | ' | ||||||||||||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | — | $ | 1,231,883 | $ | 604,460 | $ | — | $ | 1,836,343 | |||||||
Miscellaneous income | 88 | 10,798 | 13,402 | — | 24,288 | ||||||||||||
| | | | | | | | | | | | | | | | | |
88 | 1,242,681 | 617,862 | — | 1,860,631 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Cost and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 911,023 | 647,282 | — | 1,558,305 | ||||||||||||
Depreciation and depletion | 2,150 | 149,096 | 160,268 | — | 311,514 | ||||||||||||
Selling, general and administrative | 4,393 | 50,073 | 45,528 | — | 99,994 | ||||||||||||
Other postretirement benefits | (218 | ) | 59,118 | — | — | 58,900 | |||||||||||
Restructuring and asset impairment | — | (7,763 | ) | 10,646 | — | 2,883 | |||||||||||
| | | | | | | | | | | | | | | | | |
6,325 | 1,161,547 | 863,724 | — | 2,031,596 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (6,237 | ) | 81,134 | (245,862 | ) | — | (170,965 | ) | |||||||||
Interest expense | (269,586 | ) | — | (3,757 | ) | 39,489 | (233,854 | ) | |||||||||
Interest income | 6,274 | 30,983 | 3,335 | (39,489 | ) | 1,103 | |||||||||||
Other income (loss) | 3,993 | — | (1,118 | ) | — | 2,875 | |||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income tax expense (benefit) | (265,556 | ) | 112,117 | (247,402 | ) | — | (400,841 | ) | |||||||||
Income tax expense (benefit) | (51,821 | ) | 109,318 | (99,335 | ) | — | (41,838 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
(213,735 | ) | 2,799 | (148,067 | ) | — | (359,003 | ) | ||||||||||
Equity in losses of subsidiaries | (145,268 | ) | — | — | 145,268 | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Net income (loss) | $ | (359,003 | ) | $ | 2,799 | $ | (148,067 | ) | $ | 145,268 | $ | (359,003 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2012 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | — | $ | 1,592,680 | $ | 789,080 | $ | — | $ | 2,381,760 | |||||||
Miscellaneous income (loss) | 2,233 | 20,518 | (4,616 | ) | — | 18,135 | |||||||||||
| | | | | | | | | | | | | | | | | |
2,233 | 1,613,198 | 784,464 | — | 2,399,895 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Cost and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 1,039,547 | 757,444 | — | 1,796,991 | ||||||||||||
Depreciation and depletion | 1,379 | 141,463 | 173,390 | — | 316,232 | ||||||||||||
Selling, general and administrative | 11,716 | 71,208 | 50,543 | — | 133,467 | ||||||||||||
Other postretirement benefits | (449 | ) | 53,301 | — | — | 52,852 | |||||||||||
Restructuring and asset impairment | — | — | 49,070 | — | 49,070 | ||||||||||||
Goodwill impairment | — | 1,713 | 1,062,696 | — | 1,064,409 | ||||||||||||
| | | | | | | | | | | | | | | | | |
12,646 | 1,307,232 | 2,093,143 | — | 3,413,021 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (10,413 | ) | 305,966 | (1,308,679 | ) | — | (1,013,126 | ) | |||||||||
Interest expense | (162,938 | ) | (1,826 | ) | (12,731 | ) | 38,139 | (139,356 | ) | ||||||||
Interest income | 5,895 | 28,617 | 4,431 | (38,139 | ) | 804 | |||||||||||
Other income | — | — | (13,081 | ) | — | (13,081 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income tax expense (benefit) | (167,456 | ) | 332,757 | (1,330,060 | ) | — | (1,164,759 | ) | |||||||||
Income tax expense (benefit) | (68,615 | ) | 85,935 | (116,524 | ) | — | (99,204 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | (98,841 | ) | 246,822 | (1,213,536 | ) | — | (1,065,555 | ) | |||||||||
Income from discontinued operations | — | 5,180 | — | — | 5,180 | ||||||||||||
Equity in losses of subsidiaries | (961,534 | ) | — | — | 961,534 | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Net income (loss) | $ | (1,060,375 | ) | $ | 252,002 | $ | (1,213,536 | ) | $ | 961,534 | $ | (1,060,375 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2011 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | — | $ | 1,694,235 | $ | 868,090 | $ | — | $ | 2,562,325 | |||||||
Miscellaneous income (loss) | 21,486 | 8,973 | (21,426 | ) | — | 9,033 | |||||||||||
| | | | | | | | | | | | | | | | | |
21,486 | 1,703,208 | 846,664 | — | 2,571,358 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Cost and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 927,465 | 633,647 | — | 1,561,112 | ||||||||||||
Depreciation and depletion | 776 | 120,086 | 109,819 | — | 230,681 | ||||||||||||
Selling, general and administrative | 39,165 | 79,564 | 47,020 | — | 165,749 | ||||||||||||
Other postretirement benefits | (1,360 | ) | 41,745 | — | — | 40,385 | |||||||||||
| | | | | | | | | | | | | | | | | |
38,581 | 1,168,860 | 790,486 | — | 1,997,927 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (17,095 | ) | 534,348 | 56,178 | — | 573,431 | |||||||||||
Interest expense | (131,545 | ) | (1,629 | ) | (4,917 | ) | 41,271 | (96,820 | ) | ||||||||
Interest income | 1,251 | 36,554 | 4,072 | (41,271 | ) | 606 | |||||||||||
Other income | — | — | 17,606 | — | 17,606 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income tax expense (benefit) | (147,389 | ) | 569,273 | 72,939 | — | 494,823 | |||||||||||
Income tax expense (benefit) | (71,566 | ) | 199,886 | 2,905 | — | 131,225 | |||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | (75,823 | ) | 369,387 | 70,034 | — | 363,598 | |||||||||||
Equity in earnings (losses) of subsidiaries | 439,421 | — | — | (439,421 | ) | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Net income | $ | 363,598 | $ | 369,387 | $ | 70,034 | $ | (439,421 | ) | $ | 363,598 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Schedule of supplemental condensed consolidating statements of comprehensive income | ' | ||||||||||||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING | |||||||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Guarantor | Consolidated | ||||||||||||||
Subsidiaries | |||||||||||||||||
Net income (loss) | $ | (359,003 | ) | $ | 2,799 | $ | (148,067 | ) | $ | 145,268 | $ | (359,003 | ) | ||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Change in pension and other postretirement benefit plans, net of tax | 100,892 | 91,501 | — | (91,501 | ) | 100,892 | |||||||||||
Change in unrealized loss on hedges, net of tax | 2,524 | 58 | — | (58 | ) | 2,524 | |||||||||||
Change in foreign currency translation adjustment | 6,073 | — | 6,073 | (6,073 | ) | 6,073 | |||||||||||
Change in unrealized gain on investments | (897 | ) | — | (897 | ) | 897 | (897 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Total other comprehensive income (loss), net of tax | 108,592 | 91,559 | 5,176 | (96,735 | ) | 108,592 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total comprehensive income (loss) | $ | (250,411 | ) | $ | 94,358 | $ | (142,891 | ) | $ | 48,533 | $ | (250,411 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING | |||||||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2012 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Net income (loss) | $ | (1,060,375 | ) | $ | 252,002 | $ | (1,213,536 | ) | $ | 961,534 | $ | (1,060,375 | ) | ||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Change in pension and other postretirement benefit plans, net of tax | (40,501 | ) | (90,876 | ) | — | 90,876 | (40,501 | ) | |||||||||
Change in unrealized loss on hedges, net of tax | (3,416 | ) | 95 | (2,533 | ) | 2,438 | (3,416 | ) | |||||||||
Change in foreign currency translation adjustment | 1,774 | — | 1,774 | (1,774 | ) | 1,774 | |||||||||||
Change in unrealized gain on investments | 769 | — | 769 | (769 | ) | 769 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total other comprehensive income (loss), net of tax | (41,374 | ) | (90,781 | ) | 10 | 90,771 | (41,374 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Total comprehensive income (loss) | $ | (1,101,749 | ) | $ | 161,221 | $ | (1,213,526 | ) | $ | 1,052,305 | $ | (1,101,749 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING | |||||||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2011 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Guarantor | Consolidated | ||||||||||||||
Subsidiaries | |||||||||||||||||
Net income | $ | 363,598 | $ | 369,387 | $ | 70,034 | $ | (439,421 | ) | $ | 363,598 | ||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Change in pension and other postretirement benefit plans, net of tax | (53,224 | ) | (9,437 | ) | — | 9,437 | (53,224 | ) | |||||||||
Change in unrealized loss on hedges, net of tax | (716 | ) | 85 | 2,309 | (2,394 | ) | (716 | ) | |||||||||
Change in foreign currency translation adjustment | (3,276 | ) | — | (3,276 | ) | 3,276 | (3,276 | ) | |||||||||
Change in unrealized gain on investments | 128 | — | 128 | (128 | ) | 128 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total other comprehensive loss, net of tax | (57,088 | ) | (9,352 | ) | (839 | ) | 10,191 | (57,088 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Total comprehensive income | $ | 306,510 | $ | 360,035 | $ | 69,195 | $ | (429,230 | ) | $ | 306,510 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Schedule of supplemental condensed consolidating statement of cash flows | ' | ||||||||||||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities | $ | (204,982 | ) | $ | 236,491 | $ | (58,585 | ) | $ | — | $ | (27,076 | ) | ||||
| | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES | |||||||||||||||||
Additions to property, plant and equipment | (2,294 | ) | (127,873 | ) | (23,729 | ) | — | (153,896 | ) | ||||||||
Proceeds from sales of investments | — | — | 1,559 | — | 1,559 | ||||||||||||
Intercompany loans made | (40,236 | ) | — | — | 40,236 | — | |||||||||||
Intercompany payments received | 30,500 | — | — | (30,500 | ) | — | |||||||||||
Other | — | — | 1,824 | — | 1,824 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows used in investing activities | (12,030 | ) | (127,873 | ) | (20,346 | ) | 9,736 | (150,513 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of debt | 897,412 | — | — | — | 897,412 | ||||||||||||
Borrowings under revolving credit agreement | — | — | 764,332 | — | 764,332 | ||||||||||||
Repayments on revolving credit agreement | — | — | (764,332 | ) | — | (764,332 | ) | ||||||||||
Retirements of debt | (496,062 | ) | (19,133 | ) | — | — | (515,195 | ) | |||||||||
Dividends paid | (16,889 | ) | — | — | — | (16,889 | ) | ||||||||||
Tax effect from stock-based compensation arrangements | (717 | ) | — | — | — | (717 | ) | ||||||||||
Proceeds from stock-options exercised | 279 | — | — | — | 279 | ||||||||||||
Debt issuance costs | (41,588 | ) | — | — | — | (41,588 | ) | ||||||||||
Advances from (to) consolidated entities | 25,072 | (89,330 | ) | 64,258 | — | — | |||||||||||
Intercompany borrowings | — | — | 40,236 | (40,236 | ) | — | |||||||||||
Intercompany payments made | — | — | (30,500 | ) | 30,500 | — | |||||||||||
Other | (178 | ) | (115 | ) | — | — | (293 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by (used in) financing activities | 367,329 | (108,578 | ) | 73,994 | (9,736 | ) | 323,009 | ||||||||||
| | | | | | | | | | | | | | | | | |
Effect of foreign exchange rates on cash | — | — | (1,203 | ) | — | (1,203 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | $ | 150,317 | $ | 40 | $ | (6,140 | ) | $ | — | $ | 144,217 | ||||||
Cash and cash equivalents at beginning of period | 83,833 | 61 | 32,707 | — | 116,601 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | 234,150 | $ | 101 | $ | 26,567 | $ | — | $ | 260,818 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2012 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities | $ | (373,256 | ) | $ | 734,325 | $ | (31,162 | ) | $ | — | $ | 329,907 | |||||
| | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES | |||||||||||||||||
Additions to property, plant and equipment | (4,395 | ) | (143,206 | ) | (243,911 | ) | — | (391,512 | ) | ||||||||
Proceeds from sales of investments | — | — | 13,239 | — | 13,239 | ||||||||||||
Intercompany notes issued | (293,170 | ) | — | — | 293,170 | — | |||||||||||
Intercompany notes proceeds | 16,513 | — | — | (16,513 | ) | — | |||||||||||
Investments in equity affiliates | (238,083 | ) | — | — | 238,083 | — | |||||||||||
Distributions from equity affiliates | 271,847 | — | — | (271,847 | ) | — | |||||||||||
Other | — | 855 | 43 | — | 898 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows used in investing activities | (247,288 | ) | (142,351 | ) | (230,629 | ) | 242,893 | (377,375 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of debt | 496,510 | — | — | — | 496,510 | ||||||||||||
Borrowings under revolving credit agreement | — | — | 510,650 | — | 510,650 | ||||||||||||
Repayments on revolving credit agreement | — | — | (519,453 | ) | — | (519,453 | ) | ||||||||||
Retirements of debt | (343,255 | ) | (8,131 | ) | (41,465 | ) | — | (392,851 | ) | ||||||||
Dividends paid | (31,246 | ) | — | — | — | (31,246 | ) | ||||||||||
Tax effect from stock-based compensation arrangements | 217 | — | — | — | 217 | ||||||||||||
Proceeds from stock-options exercised | 161 | — | — | — | 161 | ||||||||||||
Net consideration paid upon exercise of warrants | (11,535 | ) | — | — | — | (11,535 | ) | ||||||||||
Debt issuance costs | (24,532 | ) | — | — | — | (24,532 | ) | ||||||||||
Advances from (to) consolidated entities | 519,737 | (570,342 | ) | 50,605 | — | — | |||||||||||
Intercompany borrowings | — | — | 293,170 | (293,170 | ) | — | |||||||||||
Intercompany payments made | — | — | (16,513 | ) | 16,513 | — | |||||||||||
Investment from Parent | — | 238,083 | — | (238,083 | ) | — | |||||||||||
Intercompany dividends | — | (261,102 | ) | (10,745 | ) | 271,847 | — | ||||||||||
Other | (766 | ) | — | — | — | (766 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by (used in) financing activities | 605,291 | (601,492 | ) | 266,249 | (242,893 | ) | 27,155 | ||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by (used in) continuing operations | (15,253 | ) | (9,518 | ) | 4,458 | — | (20,313 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM DISCONTINUED OPERATIONS | |||||||||||||||||
Cash flows provided by investing activities | — | 9,500 | — | — | 9,500 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by discontinued operations | — | 9,500 | — | — | 9,500 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Effect of foreign exchange rates on cash | — | — | (1,016 | ) | — | (1,016 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | $ | (15,253 | ) | $ | (18 | ) | $ | 3,442 | $ | — | $ | (11,829 | ) | ||||
Cash and cash equivalents at beginning of period | 99,086 | 79 | 29,265 | — | 128,430 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | 83,833 | $ | 61 | $ | 32,707 | $ | — | $ | 116,601 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2011 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities | $ | (569,306 | ) | $ | 1,047,651 | $ | 228,521 | $ | — | $ | 706,866 | ||||||
| | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES | |||||||||||||||||
Additions to property, plant and equipment | (93 | ) | (143,529 | ) | (293,083 | ) | — | (436,705 | ) | ||||||||
Acquisition of Western Coal Corp., net of cash acquired | (2,466,758 | ) | — | 34,065 | — | (2,432,693 | ) | ||||||||||
Proceeds from sales of investments | — | — | 27,325 | — | 27,325 | ||||||||||||
Intercompany notes issued | (50,738 | ) | — | — | 50,738 | — | |||||||||||
Distributions from equity investments | 516,407 | — | — | (516,407 | ) | — | |||||||||||
Other | 23 | 273 | 1,117 | — | 1,413 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows used in investing activities | (2,001,159 | ) | (143,256 | ) | (230,576 | ) | (465,669 | ) | (2,840,660 | ) | |||||||
| | | | | | | | | | | | | | | | | |
FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of debt | 2,350,000 | — | — | — | 2,350,000 | ||||||||||||
Borrowings under revolving credit agreement | — | — | 71,259 | — | 71,259 | ||||||||||||
Repayments on revolving credit agreement | — | — | (61,259 | ) | — | (61,259 | ) | ||||||||||
Retirements of debt | (258,062 | ) | (12,300 | ) | (20,268 | ) | — | (290,630 | ) | ||||||||
Dividends paid | (30,042 | ) | — | — | — | (30,042 | ) | ||||||||||
Tax effect from stock-based compensation arrangements | 8,929 | — | — | — | 8,929 | ||||||||||||
Proceeds from stock options exercised | 8,920 | — | — | — | 8,920 | ||||||||||||
Debt issuance costs | (80,027 | ) | — | — | — | (80,027 | ) | ||||||||||
Advances from (to) consolidated entities | 380,623 | (374,321 | ) | (6,302 | ) | — | — | ||||||||||
Intercompany borrowings | — | — | 50,738 | (50,738 | ) | — | |||||||||||
Intercompany dividends | — | (516,407 | ) | — | 516,407 | — | |||||||||||
Other | (5,203 | ) | — | — | — | (5,203 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by (used in) financing activities | 2,375,138 | (903,028 | ) | 34,168 | 465,669 | 1,971,947 | |||||||||||
| | | | | | | | | | | | | | | | | |
Effect of foreign exchange rates on cash | — | — | (3,668 | ) | — | (3,668 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | $ | (195,327 | ) | $ | 1,367 | $ | 28,445 | $ | — | $ | (165,515 | ) | |||||
Cash and cash equivalents at beginning of period | 294,413 | (1,823 | ) | 820 | — | 293,410 | |||||||||||
Add: Cash and cash equivalents of discontinued operations at beginning of year | — | 535 | — | — | 535 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | 99,086 | $ | 79 | $ | 29,265 | $ | — | $ | 128,430 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Organization_Details
Organization (Details) (Kodiak, USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2012 |
Kodiak | ' | ' |
Discontinued operations | ' | ' |
Proceeds received | $9.50 | $9.50 |
Gain from discontinued operations | $5.20 | $5.20 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Jun. 30, 2013 | |
Western Coal Corp | |||||
Purchase price allocation adjustments | |||||
Summary of Significant Accounting Policies | ' | ' | ' | ' | ' |
Amount of the prior year fourth quarter impact of cash dividend declared and paid had reclassification been made from accumulated deficit to capital in excess of par value | ' | ' | ' | $7,800,000 | ' |
Amount of the prior year first quarter impact had reclassification been made from selling, general and administrative costs to cost of sales | ' | -24,500,000 | -26,300,000 | ' | ' |
Business acquisition | ' | ' | ' | ' | ' |
Depreciation and depletion | ($311,514,000) | ($316,232,000) | ($230,681,000) | ' | $8,400,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Concentrations of credit risk and major customers | ' | ' | ' |
Revenue from sales | $1,836,343,000 | $2,381,760,000 | $2,562,325,000 |
Allowance for losses | ' | ' | ' |
Allowance for losses | 1,278,000 | 5,367,000 | ' |
Inventories | ' | ' | ' |
Lower of cost or market charges included in cost of sales, exclusive of depreciation and depletion | 126,100,000 | 218,800,000 | 20,100,000 |
Lower of cost or market charges included in depreciation and depletion | 36,500,000 | 17,400,000 | ' |
Revenues | Customer Concentration Risk | Foreign steel and coke producers | ' | ' | ' |
Concentrations of credit risk and major customers | ' | ' | ' |
Concentration risk percentage | 82.00% | 78.00% | ' |
Revenues | Customer Concentration Risk | ArcelorMittal | ' | ' | ' |
Concentrations of credit risk and major customers | ' | ' | ' |
Concentration risk percentage | 12.60% | ' | ' |
Revenue from sales | $233,500,000 | ' | ' |
Net receivables | Credit Concentration Risk | Foreign steel and coke producers | ' | ' | ' |
Concentrations of credit risk and major customers | ' | ' | ' |
Concentration risk percentage | 44.00% | 50.00% | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Owned and leased mineral rights | ' | ' | ' |
Depletion expense included in depreciation and depletion | $61.40 | $99.80 | $59.30 |
Mineral rights | Low end of range | ' | ' | ' |
Owned and leased mineral rights | ' | ' | ' |
Original lease term | '10 years | ' | ' |
Mineral rights | High end of range | ' | ' | ' |
Owned and leased mineral rights | ' | ' | ' |
Original lease term | '50 years | ' | ' |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, plant and equipment | ' | ' | ' |
Capitalized interest costs | $1,700,000 | $7,700,000 | $5,400,000 |
Present values of the asset retirement obligations | 116,393,000 | 89,478,000 | 74,963,000 |
Sustained price decrease over and above prices used in analysis through life of assets that would result in potential impairment as per sensitivity analysis (as a percent) | 5.00% | ' | ' |
Asset impairment charges | ' | 1,107,512,000 | ' |
Goodwill impairment | ' | 1,064,409,000 | ' |
North River Mine | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Long-lived asset impairments | 0 | ' | ' |
Asset impairment charges | $8,000,000 | ' | ' |
Machinery and equipment | Minimum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Estimated useful lives | '3 years | ' | ' |
Machinery and equipment | Maximum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Estimated useful lives | '10 years | ' | ' |
Land improvements and building | Minimum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Estimated useful lives | '15 years | ' | ' |
Land improvements and building | Maximum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Estimated useful lives | '30 years | ' | ' |
Capitalized computer systems and software implementation costs | Minimum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Estimated useful lives | '3 years | ' | ' |
Capitalized computer systems and software implementation costs | Maximum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Estimated useful lives | '5 years | ' | ' |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Details 5) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of Significant Accounting Policies | ' | ' |
Undiscounted aggregated estimated claims to be paid | $46,119,000 | $47,043,000 |
Workers' compensation liability recorded on a discounted basis | 40,238,000 | 40,477,000 |
Weighted average discount rate used for discounting liability to present value (as a percent) | 1.27% | ' |
Decrease in the discounted claims liability due to one-percentage-point increase in discount rate | 300,000 | ' |
Increase in the discounted claims liability due to one-percentage-point decrease in discount rate | 300,000 | ' |
Discount factor used to calculate present value of the obligation pertaining to medical and disability benefits for black lung disease (as a percent) | 5.28% | 4.44% |
Present value of obligation pertaining to medical and disability benefits | 17,200,000 | 17,900,000 |
Medical and disability benefits for black lung disease, decrease in the discounted claims liability due to one-percentage-point increase in discount rate | 2,700,000 | ' |
Medical and disability benefits for black lung disease, increase in the discounted claims liability due to one-percentage-point decrease in discount rate | 3,400,000 | ' |
Foreign Currency Translation | ' | ' |
Foreign currency remeasurement gain (loss) recognized in miscellaneous income | 8,000,000 | -3,100,000 |
Deferred Financing Costs | ' | ' |
Unamortized deferred financing costs | 62,700,000 | 70,000,000 |
Deferred financing costs, current | 14,900,000 | 17,500,000 |
Other subsidiaries except Jim Walter Resources | U.S. | Minimum | ' | ' |
Significant Accounting Policies | ' | ' |
Amount of claims retained per accident | 1,000,000 | ' |
Other subsidiaries except Jim Walter Resources | U.S. | Maximum | ' | ' |
Significant Accounting Policies | ' | ' |
Amount of claims retained per accident | 2,000,000 | ' |
Jim Walter Resources | Minimum | ' | ' |
Significant Accounting Policies | ' | ' |
Amount of claims retained per accident | $15,000,000 | ' |
Acquisitions_Details
Acquisitions (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||
Dec. 31, 2012 | Dec. 31, 2011 | Apr. 02, 2011 | Apr. 02, 2011 | Dec. 02, 2010 | Nov. 17, 2010 | Dec. 31, 2012 | Apr. 02, 2011 | Apr. 02, 2011 | Apr. 02, 2011 | Apr. 02, 2011 | Jan. 31, 2011 | Apr. 02, 2011 | Apr. 02, 2011 | |
USD ($) | USD ($) | USD ($) | 2011 Credit Agreement | Western Coal Corp | Western Coal Corp | Western Coal Corp | Western Coal Corp | Western Coal Corp | Western Coal Corp | Western Coal Corp | Western Coal Corp | Western Coal Corp | Western Coal Corp | |
USD ($) | CAD | CAD | USD ($) | USD ($) | Common stock of Walter Energy | Walter Energy stock options | First transaction | First transaction | Second transaction and arrangement agreement | Second transaction and arrangement agreement | ||||
item | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Common stock of Walter Energy | ||||||||
USD ($) | ||||||||||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares to be purchased under share purchase agreement | ' | ' | ' | ' | ' | 54,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding shares to be acquired under the share purchase agreement | ' | ' | ' | ' | ' | 19.80% | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition price per share of common stock under the share purchase agreement (in Canadian dollars per share) | ' | ' | ' | ' | ' | 11.5 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of separate transactions | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition price per share of common stock under the share purchase agreement (in Canadian dollars per share) | ' | ' | ' | ' | 11.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of the entity's shares of common stock offered for exchange under the arrangement agreement | ' | ' | ' | ' | 0.114 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares purchased under share purchase agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,274,745 | ' | ' |
Percentage of outstanding shares acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.15% | ' | ' |
Cash paid for common shares purchased | ' | ' | ' | ' | ' | ' | ' | $2,173,080,000 | ' | ' | ' | $293,700,000 | $2,200,000,000 | ' |
Fair value of shares acquired | ' | ' | ' | ' | ' | ' | ' | 314,231,000 | ' | ' | 314,200,000 | ' | ' | ' |
Gain on remeasurement of previously held noncontrolling interest | ' | 20,553,000 | ' | ' | ' | ' | ' | ' | ' | ' | 20,500,000 | ' | ' | ' |
Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | 8,951,558 | 193,498 | ' | ' | ' | 8,951,558 |
Fair value | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000,000 | 15,500,000 | ' | ' | ' | 1,200,000,000 |
Share Price (in dollars per share) | ' | ' | $136.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Walter Credit Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, maximum borrowing capacity | ' | ' | ' | 2,725,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payment on exercise (or expiration) of warrants | $11,535,000 | ' | ' | ' | ' | ' | $11,500,000 | ' | ' | ' | ' | ' | ' | ' |
Shares issued upon exercise of warrants | ' | ' | ' | ' | ' | ' | 18,938 | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_Details_2
Acquisitions (Details 2) (USD $) | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 02, 2011 | Apr. 02, 2011 | Apr. 02, 2011 | Dec. 31, 2013 | 6-May-11 | |
Western Coal Corp | Western Coal Corp | Western Coal Corp | North River Mine | North River Mine | ||||
Common stock of Walter Energy | Stock options issued and warrants assumed | |||||||
Purchase consideration: | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | $2,173,080,000 | ' | ' | ' | $1,100,000 |
Liabilities assumed | ' | ' | ' | ' | ' | ' | ' | 90,900,000 |
Fair value of shares of common stock issued or stock options issued and warrants | ' | ' | ' | ' | 1,224,126,000 | 34,765,000 | ' | ' |
Fair value of consideration transferred | ' | ' | ' | 3,431,971,000 | ' | ' | ' | ' |
Fair value of equity interest in Western Coal held before the acquisition | ' | ' | ' | 314,231,000 | ' | ' | ' | ' |
Total consideration | ' | ' | ' | 3,746,202,000 | ' | ' | ' | ' |
Fair value of assets acquired and liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | 34,065,000 | ' | ' | ' | ' |
Receivables | ' | ' | ' | 163,668,000 | ' | ' | ' | ' |
Inventories | ' | ' | ' | 121,229,000 | ' | ' | ' | ' |
Other current assets | ' | ' | ' | 86,498,000 | ' | ' | ' | ' |
Mineral interests | ' | ' | ' | 3,086,000,000 | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | 554,192,000 | ' | ' | ' | ' |
Goodwill | ' | ' | ' | 1,065,040,000 | ' | ' | 1,700,000 | ' |
Other long-term assets | ' | ' | ' | 54,150,000 | ' | ' | ' | ' |
Total assets | ' | ' | ' | 5,164,842,000 | ' | ' | ' | ' |
Accounts payable and accrued liabilities | ' | ' | ' | 184,983,000 | ' | ' | ' | ' |
Other current liabilities | ' | ' | ' | 86,105,000 | ' | ' | ' | ' |
Deferred tax liability | ' | ' | ' | 1,046,708,000 | ' | ' | ' | ' |
Other long-term liabilities | ' | ' | ' | 100,844,000 | ' | ' | ' | ' |
Total liabilities | ' | ' | ' | 1,418,640,000 | ' | ' | ' | ' |
Net assets acquired | ' | ' | ' | 3,746,202,000 | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' |
As reported herein | ' | ' | 2,571,358,000 | ' | ' | ' | ' | ' |
Pro forma | ' | ' | 2,795,566,000 | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' |
As reported herein | -359,003,000 | -1,065,555,000 | 363,598,000 | ' | ' | ' | ' | ' |
Pro forma | ' | ' | $418,419,000 | ' | ' | ' | ' | ' |
Goodwill_Impairment_Details
Goodwill Impairment (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
item | ||
Goodwill Impairment | ' | ' |
Number of reporting units that utilized the market approach | 3 | ' |
Number of reporting units in which fair value testing was performed | 4 | ' |
Number of reporting units that utilized the income approach | 1 | ' |
Goodwill: | ' | ' |
Goodwill, beginning of period | ' | $1,066,754 |
Other - Primary Currency Translation | ' | -2,345 |
Impairments | ' | -1,064,409 |
U.S. Operations | ' | ' |
Goodwill | ' | ' |
Number of reporting units that recorded impairment charge | 2 | ' |
Goodwill: | ' | ' |
Goodwill, beginning of period | ' | 74,320 |
Impairments | ' | -74,320 |
Canadian and U.K. operations | ' | ' |
Goodwill | ' | ' |
Number of reporting units that recorded impairment charge | 2 | ' |
Goodwill: | ' | ' |
Goodwill, beginning of period | ' | 992,434 |
Other - Primary Currency Translation | ' | -2,345 |
Impairments | ' | ($990,089) |
Restructuring_and_Asset_Impair1
Restructuring and Asset Impairment (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||
Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | |
North River mine | North River mine | Willow Creek mine | Willow Creek mine | North River Mine | Willow Creek Mine | Aberpergwm underground coal mine | ||||
Closure | Closure | Closure | ||||||||
Asset impairment and restructuring | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on release of a below market contract liability | ' | ' | ' | ' | ' | ' | ' | $17,000,000 | ' | ' |
Asset impairment charges | ' | ' | 1,107,512,000 | ' | ' | ' | ' | 9,300,000 | ' | 3,100,000 |
Curtailment costs | ' | ' | ' | ' | ' | ' | ' | ' | 10,700,000 | ' |
Restructuring and impairment charge | ' | 2,883,000 | 1,113,479,000 | -7,763,000 | 114,281,000 | 10,646,000 | 999,198,000 | ' | ' | 9,100,000 |
Severance and other obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 |
Write-off capitalized exploratory costs associated with natural gas exploration project, net of taxes | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write-off capitalized exploratory costs associated with natural gas exploration project, net of taxes | $25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (Kodiak, USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2012 |
Kodiak | ' | ' |
Discontinued operations | ' | ' |
Cash proceeds received | $9.50 | $9.50 |
Gain on sale of discontinued operations | ' | 8.2 |
Summary of operating results included in income (loss) from discontinued operations | ' | ' |
Income from discontinued operations | $5.20 | $5.20 |
Equity_Award_Plans_Details
Equity Award Plans (Details) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
2002 Plan | ' |
Equity Award Plans | ' |
Number of shares authorized | 4.3 |
Stock options | ' |
Equity Award Plans | ' |
Vesting period | '3 years |
Maximum term of options granted | '10 years |
Restricted stock units | ' |
Equity Award Plans | ' |
Vesting period | '3 years |
Requisite continuous employment period | '3 years |
Performance-Based Share Units | Minimum | ' |
Equity Award Plans | ' |
Vesting period | '2 years |
Performance-Based Share Units | Maximum | ' |
Equity Award Plans | ' |
Vesting period | '3 years |
Equity_Award_Plans_Details_2
Equity Award Plans (Details 2) (Western Coal Corp, Walter Energy stock options) | 0 Months Ended |
Apr. 02, 2011 | |
Western Coal Corp | Walter Energy stock options | ' |
Equity Award Plans | ' |
Number of shares | 193,498 |
Equity_Award_Plans_Details_3
Equity Award Plans (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Equity award plans, additional disclosures | ' | ' | ' |
Amount of cash received from exercise of stock options | $279,000 | $161,000 | $8,920,000 |
2002 Plan | ' | ' | ' |
Equity Award Plans | ' | ' | ' |
Number of shares authorized | 4,300,000 | ' | ' |
Stock-based compensation expense | 10,100,000 | 7,300,000 | 9,200,000 |
Income tax benefits in the entity's continuing operations recognized | 3,800,000 | 2,700,000 | 3,200,000 |
Equity award plans, additional disclosures | ' | ' | ' |
Weighted average period over which unrecognized compensation costs will be recognized | '1 year 6 months | ' | ' |
Stock options | ' | ' | ' |
Summary of activity related to stock options during the year including awards applicable to discontinued operations | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 541,369 | ' | ' |
Granted (in shares) | 267,624 | ' | ' |
Exercised (in shares) | -26,390 | ' | ' |
Forfeited or expired (in shares) | -28,134 | ' | ' |
Outstanding at the end of the period (in shares) | 754,469 | 541,369 | ' |
Exercisable | ' | ' | ' |
Exercisable at the end of the period (in shares) | 437,282 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $46.58 | ' | ' |
Granted (in dollars per share) | $28.60 | ' | ' |
Exercised (in dollars per share) | $10.87 | ' | ' |
Forfeited or expired (in dollars per share) | $57.47 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $41.04 | $46.58 | ' |
Exercisable at the end of the period (in dollars per share) | $44.30 | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' |
Outstanding at the end of the period | '6 years 1 month 6 days | ' | ' |
Exercisable at the end of the period | '3 years 10 months 24 days | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Outstanding at the end of the period | 363,900 | ' | ' |
Exercisable at the end of the period | 244,400 | ' | ' |
Weighted average assumptions used to determine the grant-date fair value of options granted | ' | ' | ' |
Risk free interest rate (as a percent) | 1.13% | 0.85% | 0.88% |
Dividend yield (as a percent) | 1.10% | 0.55% | 0.52% |
Expected life | '4 years 11 months 23 days | '4 years 11 months 12 days | '2 years 5 months 16 days |
Volatility (as a percent) | 73.54% | 75.79% | 57.51% |
Equity award plans, additional disclosures | ' | ' | ' |
Weighted average grant-date fair values of stock options granted (in dollars per share) | $15.83 | $36.97 | $81.82 |
Amount of cash received from exercise of stock options | 300,000 | 200,000 | 8,900,000 |
Intrinsic value of stock options exercised | 500,000 | 1,400,000 | 24,200,000 |
Unrecognized compensation costs related to stock options granted | 2,300,000 | ' | ' |
Weighted average period over which unrecognized compensation costs will be recognized | '2 years 1 month 6 days | ' | ' |
Restricted stock units | ' | ' | ' |
Summary of activity related to restricted stock units and performance-based share units, including awards applicable to discontinued operations | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 149,271 | ' | ' |
Granted (in shares) | 121,364 | ' | ' |
Vested (in shares) | -38,908 | ' | ' |
Forfeited or expired (in shares) | -17,719 | ' | ' |
Outstanding at the end of the period (in shares) | 214,008 | 149,271 | ' |
Weighted Average Remaining Contractual Term in Years | ' | ' | ' |
Outstanding at the end of the period | '8 years 2 months 5 days | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Outstanding at the end of the period | 3,644,700 | ' | ' |
Equity award plans, additional disclosures | ' | ' | ' |
Weighted average grant-date fair values of restricted stock units granted (in dollars per share) | $34.03 | $63.17 | $133.15 |
Intrinsic value of restricted stock vested | 600,000 | 1,600,000 | 7,700,000 |
Fair value of restricted stock units vested | 3,400,000 | 2,100,000 | 4,500,000 |
Restricted stock units | 2002 Plan | ' | ' | ' |
Equity award plans, additional disclosures | ' | ' | ' |
Unrecognized compensation costs | 2,400,000 | ' | ' |
Performance-Based Share Units | ' | ' | ' |
Summary of activity related to restricted stock units and performance-based share units, including awards applicable to discontinued operations | ' | ' | ' |
Granted (in shares) | 53,874 | ' | ' |
Outstanding at the end of the period (in shares) | 53,874 | ' | ' |
Weighted average grant date fair value (in dollars per share) | $52.38 | ' | ' |
Equity award plans, additional disclosures | ' | ' | ' |
Unrecognized compensation costs related to performance-based share units compensation arrangements granted | 1,300,000 | ' | ' |
Weighted average period over which unrecognized compensation costs will be recognized | '1 year 8 months 12 days | ' | ' |
Performance-Based Share Units | Minimum | ' | ' | ' |
Weighted average assumptions used to determine the grant-date fair value of options granted | ' | ' | ' |
Percentage of total shareholders return depending on achievement of the goals | 0.00% | ' | ' |
Performance-Based Share Units | Maximum | ' | ' | ' |
Weighted average assumptions used to determine the grant-date fair value of options granted | ' | ' | ' |
Percentage of total shareholders return depending on achievement of the goals | 200.00% | ' | ' |
Employee stock purchase plan | ' | ' | ' |
Equity Award Plans | ' | ' | ' |
Number of shares authorized | 3,500,000 | ' | ' |
Stock-based compensation expense | $300,000 | $500,000 | $400,000 |
Employee Stock Purchase Plan | ' | ' | ' |
Employer contribution, as a percentage of participant's actual payroll deduction | 15.00% | ' | ' |
Employer contribution after five years of continuous participation , as a percentage of participant's actual payroll deduction | 20.00% | ' | ' |
Period of continuous employee participation required to receive employer contribution of 20% of participant's actual payroll deduction | '5 years | ' | ' |
Number of shares purchased under the plan | 217,900 | 86,200 | 29,500 |
Receivables_Details
Receivables (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Receivables | ' | ' |
Trade receivables | $150,394 | $154,081 |
Tax receivables | 127,130 | 83,203 |
Other receivables | 5,517 | 25,050 |
Less: Allowance for losses | -1,278 | -5,367 |
Receivables, net | $281,763 | $256,967 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Coal | $238,820 | $228,910 |
Raw materials and supplies | 73,827 | 77,108 |
Total inventories | $312,647 | $306,018 |
Mineral_Interests_and_Property2
Mineral Interests and Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, plant and equipment | ' | ' |
Total property, plant and equipment | $2,618,440 | $2,528,814 |
Less: Accumulated depreciation | -980,888 | -796,683 |
Net property, plant and equipment | 1,637,552 | 1,732,131 |
Mineral interests | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 3,146,000 | 3,145,200 |
Less: Accumulated depreciation | -241,000 | -179,600 |
Land | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 79,733 | 87,088 |
Land improvements | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 43,107 | 19,949 |
Buildings and leasehold improvements | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 420,142 | 362,296 |
Mine development costs | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 255,680 | 270,768 |
Machinery and equipment | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 1,569,318 | 1,402,417 |
Gas properties and related development | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 188,527 | 223,200 |
Construction in progress | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | $61,933 | $163,096 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Current | ' | ' | ' |
Federal | ($54,312,000) | $49,236,000 | $37,307,000 |
State | -3,906,000 | 3,860,000 | 6,226,000 |
Foreign | -137,000 | -20,080,000 | 20,889,000 |
Total current | -58,355,000 | 33,016,000 | 64,422,000 |
Deferred | ' | ' | ' |
Federal | 103,851,000 | -45,330,000 | 80,701,000 |
State | 15,040,000 | -1,747,000 | 3,108,000 |
Foreign | -102,374,000 | -85,143,000 | -17,006,000 |
Total deferred | 16,518,000 | -132,220,000 | 66,803,000 |
Total | ' | ' | ' |
Federal | 49,539,000 | 3,906,000 | 118,008,000 |
State | 11,134,000 | 2,113,000 | 9,334,000 |
Foreign | -102,511,000 | -105,223,000 | 3,883,000 |
Total | -41,838,000 | -99,204,000 | 131,225,000 |
Foreign pretax earnings (losses) | 222,300,000 | -1,200,000,000 | 84,000,000 |
Deferred income tax assets: | ' | ' | ' |
Net operating losses and credit carryforwards | 278,016,000 | 156,387,000 | ' |
Accrued expenses | 5,167,000 | 14,827,000 | ' |
Contingent interest | 42,763,000 | 39,581,000 | ' |
Other postretirement benefits | 223,346,000 | 247,578,000 | ' |
Pension obligations | 2,925,000 | 23,725,000 | ' |
Other | 15,243,000 | 34,214,000 | ' |
Total | 567,460,000 | 516,312,000 | ' |
Less: valuation allowance for deferred income tax assets | -166,265,000 | -20,919,000 | ' |
Net deferred income tax assets | 401,195,000 | 495,393,000 | ' |
Deferred income tax liabilities: | ' | ' | ' |
Prepaid expenses | -13,494,000 | -12,465,000 | ' |
British Columbia mineral tax | -184,680,000 | -243,229,000 | ' |
Property, plant and equipment | -990,580,000 | -943,523,000 | ' |
Total deferred income tax liabilities | -1,188,754,000 | -1,199,217,000 | ' |
Net deferred tax liability | -787,559,000 | -703,824,000 | ' |
Deferred income taxes are classified as follows: | ' | ' | ' |
Current deferred income tax asset | 37,067,000 | 58,526,000 | ' |
Noncurrent deferred income tax asset | ' | 160,422,000 | ' |
Other current liabilities | -1,759,000 | -1,085,000 | ' |
Noncurrent deferred income tax liability | -822,867,000 | -921,687,000 | ' |
Net deferred tax liability | -787,559,000 | -703,824,000 | ' |
Unrecognized deferred income tax assets excluding interest and penalties | 166,300,000 | ' | ' |
Increase in valuation allowances on unrealizable tax assets | 145,322,000 | 19,189,000 | ' |
Income tax expense (benefit) at the entity's effective tax rate differed from the statutory rate of 35% | ' | ' | ' |
Income (loss) from continuing operations before income tax expense | -400,841,000 | -1,164,759,000 | 494,823,000 |
Tax expense (benefit) at statutory tax rate of 35% | -140,294,000 | -407,665,000 | 173,188,000 |
Federal statutory income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Excess depletion benefit | -17,524,000 | -26,107,000 | -32,370,000 |
Taxation of foreign operations | -5,663,000 | -11,945,000 | -36,545,000 |
British Columbia mineral tax foreign currency effect | -26,778,000 | 3,643,000 | -12,336,000 |
British Columbia mineral tax | -14,697,000 | -22,365,000 | 24,290,000 |
Goodwill impairment | ' | 372,543,000 | ' |
State and local income tax, net of federal effect | -6,947,000 | 2,470,000 | 7,394,000 |
U.S. domestic production activities benefit | ' | -2,950,000 | -5,583,000 |
Valuation allowance on deferred tax assets | 145,322,000 | 19,189,000 | ' |
Impact of statutory tax rate changes | 14,660,000 | -3,772,000 | ' |
Credits and other incentives | -659,000 | -2,301,000 | ' |
Impact of West Virginia legal entity restructuring | 10,084,000 | ' | ' |
Acquisition costs | ' | ' | 8,078,000 |
Other | 658,000 | -19,944,000 | 5,109,000 |
Total | -41,838,000 | -99,204,000 | 131,225,000 |
Federal | ' | ' | ' |
Income Taxes | ' | ' | ' |
NOLs | 77,100,000 | ' | ' |
State | ' | ' | ' |
Income Taxes | ' | ' | ' |
NOLs | 343,000,000 | ' | ' |
Non-U.S. | ' | ' | ' |
Income Taxes | ' | ' | ' |
NOLs | 707,200,000 | ' | ' |
Canada | ' | ' | ' |
Income Taxes | ' | ' | ' |
Operating loss carryforwards subject to expiration between 2031 and 2032 | 581,900,000 | ' | ' |
Canadian unrealized losses incurred | 13,800,000 | ' | ' |
U.K. | ' | ' | ' |
Income Taxes | ' | ' | ' |
Operating loss carryforwards with indefinite carryforward period | $125,300,000 | ' | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Income taxes | ' |
Period of cumulative pre-tax loss | '3 years |
Alternative minimum tax | ' |
Income taxes | ' |
Tax credit carryforward amount | 52.3 |
General business credits | ' |
Income taxes | ' |
Tax credit carryforward amount | 6.6 |
Capital loss carryforward | Federal and state | ' |
Income taxes | ' |
Capital losses | 10.8 |
Capital loss carryforward | Non-U.S. | ' |
Income taxes | ' |
Capital losses | 8.6 |
Capital loss carryforward | Canada | ' |
Income taxes | ' |
Capital losses | 1.2 |
Capital loss carryforward | U.K. | ' |
Income taxes | ' |
Valuation allowances on capital losses | 7.4 |
Capital loss carryforward | British Columbia | ' |
Income taxes | ' |
Valuation allowances on capital losses | 9.6 |
Income_Taxes_Details_3
Income Taxes (Details 3) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum | ' |
Income tax examination | ' |
Number of years the Company remains subject to income tax in various states for prior periods | '3 years |
Number of years for which the tax years are typically subject to examination in the major non-U.S. jurisdictions | '3 years |
Maximum | ' |
Income tax examination | ' |
Number of years the state impact of any federal changes remains subject to examination | '5 years |
Number of years the Company remains subject to income tax in various states for prior periods | '11 years |
Number of years for which the tax years are typically subject to examination in the major non-U.S. jurisdictions | '6 years |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes | ' | ' | ' | ' |
Net excess tax benefits from employee stock plan awards | ' | ($700,000) | $800,000 | $8,900,000 |
Extension period to submit proposed final order | '90 days | ' | ' | ' |
Comment letter period | '30 days | ' | ' | ' |
Accruals for unrecognized tax benefits related to disposition | ' | 38,000,000 | ' | ' |
Reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | ' | ' | ' | ' |
Gross unrecognized tax benefits at beginning of year | ' | 89,631,000 | 92,758,000 | 39,191,000 |
Increases for tax positions taken in prior years | ' | 347,000 | 10,019,000 | 31,704,000 |
Increases in tax positions for the current year | ' | ' | 8,058,000 | 23,169,000 |
Decreases for tax positions taken in prior years | ' | -13,690,000 | -18,440,000 | ' |
Decreases for lapse of statute of limitations | ' | ' | -2,764,000 | ' |
Decreases for changes in temporary differences | ' | ' | ' | -1,306,000 |
Gross unrecognized tax benefits at end of year | ' | 76,288,000 | 89,631,000 | 92,758,000 |
Amount of net unrecognized tax benefits that, if recognized, would affect the effective tax rate | ' | 69,100,000 | 87,600,000 | 92,100,000 |
Interest accrued on the liability for unrecognized tax benefits and for issues identified in the Proof of Claim | ' | 9,000,000 | 10,400,000 | 7,200,000 |
Income taxes | ' | ' | ' | ' |
Accrued interest and penalties related to unrecognized tax benefits and the Adversary Proceeding | ' | 112,800,000 | ' | ' |
Other current liabilities | ' | ' | ' | ' |
Income taxes | ' | ' | ' | ' |
Accrued interest and penalties related to unrecognized tax benefits and the Adversary Proceeding | ' | 111,600,000 | ' | ' |
Other long-term liabilities | ' | ' | ' | ' |
Income taxes | ' | ' | ' | ' |
Accrued interest and penalties related to unrecognized tax benefits and the Adversary Proceeding | ' | $1,200,000 | ' | ' |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Asset Retirement Obligations | ' | ' |
Asset retirement obligations expected to be paid within a year | $23,900,000 | $12,300,000 |
Asset retirement obligations expected to be incurred beyond one year | 92,500,000 | 77,200,000 |
Assets legally restricted for purposes of settling asset retirement obligations | 0 | 0 |
Changes in the asset retirement obligations | ' | ' |
Balance at beginning of year | 89,478,000 | 74,963,000 |
Accretion expense | 9,079,000 | 4,411,000 |
Revisions in estimated cash flows | 26,453,000 | 14,353,000 |
Obligation settled | -8,617,000 | -4,249,000 |
Balance at end of year | $116,393,000 | $89,478,000 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued expenses | ' | ' |
Accrued professional fees | $23,855 | $54,205 |
Wage and employee benefits | 41,938 | 37,981 |
Accrued interest | 34,473 | 23,343 |
Other | 33,604 | 69,346 |
Total accrued expenses | 133,870 | 184,875 |
Other current liabilities | ' | ' |
Accrual for tax interest and penalties | 111,581 | 103,181 |
Accrual for uncertain tax positions | 42,433 | 37,960 |
Other | 60,059 | 65,332 |
Total other current liabilities | $214,073 | $206,473 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 02, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 27, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 02, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 02, 2011 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Apr. 02, 2011 | Nov. 21, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 21, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 21, 2012 | Mar. 27, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 27, 2013 | Dec. 31, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
2011 Credit Agreement | 2011 Credit Agreement | 2011 Credit Agreement | 2011 Credit Agreement | 2011 Credit Agreement | 2011 term loan A | 2011 term loan A | 2011 term loan A | 2011 term loan A | 2011 term loan B | 2011 term loan B | 2011 term loan B | 2011 term loan B | Term Loan A and Term Loan B | Revolving Credit Facility | Revolving Credit Facility | 9.875% senior notes | 9.875% senior notes | 9.875% senior notes | 9.875% senior notes | 9.875% senior notes | 9.875% senior notes | 9.875% senior notes | 9.875% senior notes | 9.875% senior notes | 8.50% senior notes | 8.50% senior notes | 8.50% senior notes | 8.50% senior notes | 8.50% senior notes | 8.50% senior notes | 8.50% senior notes | 8.50% senior notes | 8.50% senior notes | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | Other | Other | ||||
item | Minimum | Maximum | Minimum | Prior to December 15, 2015 | Prior to December 15, 2016 | During the twelve months commencing December 15, 2016 | During the twelve months commencing December 15, 2017 | After December 15, 2018 | Maximum | Prior to April 15, 2016 | Prior to April 15, 2017 | During the twelve months commencing April 15, 2017 | During the twelve months commencing April 15, 2018 | Period commencing April 15, 2019 | Maximum | Prior to October 15, 2015 | Prior to October 15, 2016 | During the twelve months commencing October 15, 2016 | During the twelve months commencing October 15, 2017 | Period commencing October15, 2018 | Maximum | ||||||||||||||||||||||||||
Prior to December 15, 2015 | Prior to April 15, 2016 | Prior to October 15, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | $2,778,832,000 | $2,416,165,000 | ' | ' | ' | ' | ' | ' | ' | $401,052,000 | $756,974,000 | ' | $968,581,000 | $1,127,770,000 | ' | ' | ' | ' | ' | ' | $496,831,000 | $496,510,000 | ' | ' | ' | ' | ' | ' | ' | ' | $450,000,000 | ' | ' | ' | ' | ' | ' | ' | $447,492,000 | ' | ' | ' | ' | ' | ' | $14,876,000 | $34,911,000 |
Less current debt | -9,210,000 | -18,793,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long term debt | 2,769,622,000 | 2,397,372,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.74% | ' | ' | 6.75% | ' | ' | ' | ' | ' | ' | ' | 9.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.50% | ' | ' | ' | ' | ' | ' | ' | 9.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.88% | 9.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.50% | ' | ' | ' | ' | ' | ' | ' | 9.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 406,600,000 | ' | 950,000,000 | 978,200,000 | ' | 1,400,000,000 | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 450,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of unrestricted cash and cash equivalents which may be subtracted from total indebtness | ' | ' | ' | 240,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, description of variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR or CDOR | ' | ' | 'LIBOR or CDOR | ' | ' | ' | ' | 'LIBOR or CDOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.50% | ' | ' | 5.75% | ' | ' | ' | ' | 5.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee on the unused portion (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt repayment schedule, excluding interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 9,210,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,210,000 | ' |
2015 | 311,550,000 | ' | ' | ' | ' | ' | ' | ' | ' | 305,941,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,609,000 | ' |
2016 | 100,682,000 | ' | ' | ' | ' | ' | ' | ' | ' | 100,625,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,000 | ' |
2018 | 978,178,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 978,178,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 1,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 450,000,000 | ' | ' | ' | ' | ' | ' | ' | 450,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 450,000,000 | ' | ' | ' | ' | ' | ' | ' | 450,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance price as a percentage of face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from debt | 897,412,000 | 496,510,000 | 2,350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 245,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized debt issuance costs expensed | ' | ' | ' | ' | ' | ' | ' | ' | 5,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on partial extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | 4,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal of debt redeemed (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' |
Redemption price of debt instrument (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | 109.88% | 100.00% | 104.94% | 102.47% | 100.00% | ' | ' | ' | 101.00% | 108.50% | 100.00% | 104.25% | 102.13% | 100.00% | ' | ' | 101.00% | 109.50% | 100.00% | 107.13% | 102.38% | 100.00% | ' | ' | ' |
Unamortized debt issuance discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | 2,725,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 375,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General investment basket available amount | ' | ' | ' | 325,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio for permitted acquisitions and unlimited unsecured debt | ' | ' | ' | 4.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in additional borrowings available, provided that specified percentage of the proceeds will be used to repay the term loans under the 2011 credit agreement | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate of LIBOR floor (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of amendments completed | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in interest margin from existing levels (as a percent) | ' | ' | ' | ' | ' | ' | 2.50% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional minimum liquidity covenant amount | ' | ' | ' | 225,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured leverage ratio (as a percent) | ' | ' | ' | ' | ' | ' | 5.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional capital expenditures covenant amount in 2013 | ' | ' | ' | 175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional capital expenditures covenant amount in 2014 | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential unused capital spending that may be carried forward | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increased capital expenditures covenant amount in 2014, if carryforward from prior year is utilized | ' | ' | ' | ' | ' | ' | ' | 220,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of net proceeds of additional debt issuances in excess of specified amount that is required to be used for the repayment of term loans | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of net proceeds from additional debt issuances, that if in excess of, is required to be used for the repayment of term loans | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured leverage ratio requirement for restriction on cash dividends allowed in any fiscal quarter | ' | ' | ' | 4.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum revolver sublimit borrowing capacity in Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 275,000,000 | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Availability for future borrowings under the Revolver | ' | ' | ' | 326,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | ' | ' | $48,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amounts recognized in the balance sheet, pre-tax: | ' | ' | ' |
Accumulated postretirement benefits obligation, current | ($30,036) | ($29,200) | ' |
Accumulated postretirement benefits obligation, long-term | -570,712 | -633,264 | ' |
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | ' | ' | ' |
Current year net actuarial gain | 130,867 | ' | ' |
Amortization of actuarial loss | 28,545 | ' | ' |
Amortization of prior service cost | 1,493 | ' | ' |
Total | 160,905 | ' | ' |
Deferred income taxes | -60,013 | -23,330 | -33,179 |
Total recognized in other comprehensive income (loss), net of taxes | -100,892 | 40,501 | 53,224 |
Pension Benefits | ' | ' | ' |
Pension and Other Employee Benefits | ' | ' | ' |
Accumulated benefit obligation | 247,874 | 278,357 | ' |
Change in projected benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 295,944 | 258,780 | ' |
Service cost | 7,062 | 5,991 | 5,163 |
Interest cost | 12,280 | 12,517 | 12,576 |
Actuarial (gain) loss | -37,873 | 29,933 | ' |
Benefits paid | -11,763 | -11,501 | ' |
Plan amendments | ' | 224 | ' |
Benefit obligation at end of year | 265,650 | 295,944 | 258,780 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of year | 232,960 | 202,537 | ' |
Actual return on plan assets | 35,788 | 28,499 | ' |
Employer contributions | 780 | 13,425 | ' |
Benefits paid | -11,763 | -11,501 | ' |
Fair value of plan assets at end of year | 257,765 | 232,960 | 202,537 |
Unfunded status of the plan | -7,885 | -62,984 | ' |
Amounts recognized in the balance sheet, pre-tax: | ' | ' | ' |
Other long-term assets | 1,260 | ' | ' |
Other current liabilities | -7,089 | -5,744 | ' |
Other long-term liabilities | -2,056 | -57,240 | ' |
Net amount recognized | -7,885 | -62,984 | ' |
Amounts recognized in accumulated other comprehensive income, pre-tax | ' | ' | ' |
Prior service cost | 994 | 1,257 | ' |
Net actuarial loss | 48,331 | 114,787 | ' |
Net amount recognized | 49,325 | 116,044 | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | 7,062 | 5,991 | 5,163 |
Interest cost | 12,280 | 12,517 | 12,576 |
Expected return on plan assets | -16,941 | -16,125 | -15,717 |
Amortization of prior service cost (credit) | 263 | 256 | 272 |
Amortization of net actuarial loss | 9,609 | 9,377 | 8,252 |
Settlement loss | ' | ' | 1,807 |
Net periodic benefit cost | 12,273 | 12,016 | 12,353 |
Estimated portion of net prior service cost and net actuarial loss remaining in accumulated other comprehensive income that is expected to be recognized as a component of net periodic benefit cost in 2014 | ' | ' | ' |
Prior service cost | 246 | ' | ' |
Net actuarial loss | 2,566 | ' | ' |
Net amount to be recognized | 2,812 | ' | ' |
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | ' | ' | ' |
Current year net actuarial gain | 56,721 | ' | ' |
Amortization of actuarial loss | 9,609 | ' | ' |
Amortization of prior service cost | 263 | ' | ' |
Total | 66,593 | ' | ' |
Deferred income taxes | -24,986 | ' | ' |
Total recognized in other comprehensive income (loss), net of taxes | 41,607 | ' | ' |
Weighted average assumptions used to determine benefit obligations: | ' | ' | ' |
Discount rate (as a percent) | 5.24% | 4.29% | 5.02% |
Rate of compensation increase (as a percent) | 3.70% | 3.70% | 3.70% |
Weighted average assumptions used to determine net periodic cost: | ' | ' | ' |
Discount rate (as a percent) | 4.29% | 5.02% | 5.30% |
Expected return on plan assets (as a percent) | 7.50% | 7.75% | 7.75% |
Rate of compensation increase (as a percent) | 3.70% | 3.70% | 3.70% |
Other Postretirement Benefits | ' | ' | ' |
Pension and Other Employee Benefits | ' | ' | ' |
Accumulated benefit obligation | 600,748 | 662,464 | ' |
Change in projected benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 662,464 | 577,918 | ' |
Service cost | 9,943 | 8,072 | 6,160 |
Interest cost | 28,791 | 29,010 | 25,140 |
Actuarial (gain) loss | -74,146 | 71,451 | ' |
Benefits paid | -26,304 | -23,987 | ' |
Benefit obligation at end of year | 600,748 | 662,464 | 577,918 |
Change in plan assets: | ' | ' | ' |
Employer contributions | 26,304 | 23,987 | ' |
Benefits paid | -26,304 | -23,987 | ' |
Unfunded status of the plan | -600,748 | -662,464 | ' |
Amounts recognized in the balance sheet, pre-tax: | ' | ' | ' |
Accumulated postretirement benefits obligation, current | -30,036 | -29,200 | ' |
Accumulated postretirement benefits obligation, long-term | -570,712 | -633,264 | ' |
Net amount recognized | -600,748 | -662,464 | ' |
Amounts recognized in accumulated other comprehensive income, pre-tax | ' | ' | ' |
Prior service cost | 7,641 | 8,871 | ' |
Net actuarial loss | 238,693 | 331,775 | ' |
Net amount recognized | 246,334 | 340,646 | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | 9,943 | 8,072 | 6,160 |
Interest cost | 28,791 | 29,010 | 25,140 |
Amortization of prior service cost (credit) | 1,230 | 1,045 | -961 |
Amortization of net actuarial loss | 18,936 | 14,725 | 10,046 |
Net periodic benefit cost | 58,900 | 52,852 | 40,385 |
Estimated portion of net prior service cost and net actuarial loss remaining in accumulated other comprehensive income that is expected to be recognized as a component of net periodic benefit cost in 2014 | ' | ' | ' |
Prior service cost | 1,227 | ' | ' |
Net actuarial loss | 15,570 | ' | ' |
Net amount to be recognized | 16,797 | ' | ' |
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | ' | ' | ' |
Current year net actuarial gain | 74,146 | ' | ' |
Amortization of actuarial loss | 18,936 | ' | ' |
Amortization of prior service cost | 1,230 | ' | ' |
Total | 94,312 | ' | ' |
Deferred income taxes | -35,027 | ' | ' |
Total recognized in other comprehensive income (loss), net of taxes | $59,285 | ' | ' |
Weighted average assumptions used to determine benefit obligations: | ' | ' | ' |
Discount rate (as a percent) | 5.28% | 4.44% | 5.14% |
Weighted average assumptions used to determine net periodic cost: | ' | ' | ' |
Discount rate (as a percent) | 4.44% | 5.14% | 5.35% |
Expected return on plan assets (as a percent) | 7.25% | ' | ' |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details 2) (Other Postretirement Benefits) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pre-65 | ' | ' | ' |
Assumed health care cost trend rates at December 31: | ' | ' | ' |
Health care cost trend rate assumed for next year (as a percent) | 7.00% | 7.50% | 8.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (as a percent) | 4.50% | 5.00% | 5.00% |
Post-65 | ' | ' | ' |
Assumed health care cost trend rates at December 31: | ' | ' | ' |
Health care cost trend rate assumed for next year (as a percent) | 7.00% | 7.50% | 8.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (as a percent) | 4.50% | 5.00% | 5.00% |
Employee_Benefit_Plans_Details2
Employee Benefit Plans (Details 3) (Pension Benefits, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Strategic allocation | ' | ' | ' |
Strategic allocation (as a percent) | 100.00% | ' | ' |
Actual allocation | ' | ' | ' |
Actual allocation (as a percent) | 100.00% | 100.00% | ' |
Fair value of the plan assets | ' | ' | ' |
Fair value of the pension trust's assets | $257,765 | $232,960 | $202,537 |
Cash and cash equivalents | ' | ' | ' |
Fair value of the plan assets | ' | ' | ' |
Fair value of the pension trust's assets | 1,224 | 1,397 | ' |
Equity investments | ' | ' | ' |
Strategic allocation | ' | ' | ' |
Strategic allocation (as a percent) | 60.00% | ' | ' |
Tactical Range | ' | ' | ' |
Tactical range, minimum (as a percent) | 50.00% | ' | ' |
Tactical range, maximum (as a percent) | 70.00% | ' | ' |
Actual allocation | ' | ' | ' |
Actual allocation (as a percent) | 63.00% | 60.20% | ' |
U.S. large-cap funds | ' | ' | ' |
Strategic allocation | ' | ' | ' |
Strategic allocation (as a percent) | 38.50% | ' | ' |
Tactical Range | ' | ' | ' |
Tactical range, minimum (as a percent) | 30.00% | ' | ' |
Tactical range, maximum (as a percent) | 47.00% | ' | ' |
Actual allocation | ' | ' | ' |
Actual allocation (as a percent) | 39.00% | 37.30% | ' |
Fair value of the plan assets | ' | ' | ' |
Fair value of the pension trust's assets | 100,384 | 86,892 | ' |
International fund | ' | ' | ' |
Strategic allocation | ' | ' | ' |
Strategic allocation (as a percent) | 13.00% | ' | ' |
Tactical Range | ' | ' | ' |
Tactical range, minimum (as a percent) | 10.00% | ' | ' |
Tactical range, maximum (as a percent) | 16.00% | ' | ' |
Actual allocation | ' | ' | ' |
Actual allocation (as a percent) | 14.30% | 13.30% | ' |
Fair value of the plan assets | ' | ' | ' |
Fair value of the pension trust's assets | 36,812 | 31,038 | ' |
U.S. mid-cap fund | ' | ' | ' |
Strategic allocation | ' | ' | ' |
Strategic allocation (as a percent) | 8.50% | ' | ' |
Tactical Range | ' | ' | ' |
Tactical range, minimum (as a percent) | 6.00% | ' | ' |
Tactical range, maximum (as a percent) | 11.00% | ' | ' |
Actual allocation | ' | ' | ' |
Actual allocation (as a percent) | 9.70% | 9.60% | ' |
Fair value of the plan assets | ' | ' | ' |
Fair value of the pension trust's assets | 25,143 | 22,368 | ' |
Fixed income investments | ' | ' | ' |
Strategic allocation | ' | ' | ' |
Strategic allocation (as a percent) | 40.00% | ' | ' |
Tactical Range | ' | ' | ' |
Tactical range, minimum (as a percent) | 30.00% | ' | ' |
Tactical range, maximum (as a percent) | 50.00% | ' | ' |
Actual allocation | ' | ' | ' |
Actual allocation (as a percent) | 36.50% | 39.20% | ' |
Intermediate-term bond | ' | ' | ' |
Fair value of the plan assets | ' | ' | ' |
Fair value of the pension trust's assets | 34,091 | 85,814 | ' |
Long-term bond | ' | ' | ' |
Fair value of the plan assets | ' | ' | ' |
Fair value of the pension trust's assets | $60,111 | $5,451 | ' |
Cash | ' | ' | ' |
Strategic allocation | ' | ' | ' |
Strategic allocation (as a percent) | 0.00% | ' | ' |
Tactical Range | ' | ' | ' |
Tactical range, minimum (as a percent) | 0.00% | ' | ' |
Tactical range, maximum (as a percent) | 5.00% | ' | ' |
Actual allocation | ' | ' | ' |
Actual allocation (as a percent) | 0.50% | 0.60% | ' |
Employee_Benefit_Plans_Details3
Employee Benefit Plans (Details 4) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Health care cost trend: | ' |
Effect on total of service and interest cost components, 1-percentage point increase | $7,468 |
Effect on total of service and interest cost components, 1-percentage point decrease | -5,790 |
Effect on postretirement benefit obligation, 1-percentage point increase | 78,720 |
Effect on postretirement benefit obligation, 1-percentage point decrease | -65,091 |
Discount rate: | ' |
Effect on postretirement service and interest cost components, 1-percentage point increase | -297 |
Effect on postretirement service and interest cost components, 1-percentage point decrease | 293 |
Effect on postretirement benefit obligation, 1-percentage point increase | -67,637 |
Effect on postretirement benefit obligation, 1-percentage point decrease | 83,447 |
Effect on current year postretirement expense, 1-percentage point increase | -6,140 |
Effect on current year postretirement expense, 1-percentage point decrease | 7,638 |
Effect on pension service and interest cost components, 1-percentage point increase | 159 |
Effect on pension service and interest cost components, 1-percentage point decrease | -272 |
Effect on pension benefit obligation, 1-percentage point increase | -27,881 |
Effect on pension benefit obligation, 1-percentage point decrease | 33,879 |
Effect on current year pension expense, 1-percentage point increase | -2,978 |
Effect on current year pension expense, 1-percentage point decrease | 3,547 |
Expected return on plan assets: | ' |
Effect on current year pension expense, 1-percentage point increase | -2,259 |
Effect on current year pension expense, 1-percentage point decrease | 2,259 |
Rate of compensation increase: | ' |
Effect on pension service and interest cost components, 1-percentage point increase | 631 |
Effect on pension service and interest cost components, 1-percentage point decrease | -557 |
Effect on pension benefit obligation, 1-percentage point increase | 4,929 |
Effect on pension benefit obligation, 1-percentage point decrease | -4,463 |
Effect on current year pension expense, 1-percentage point increase | 1,058 |
Effect on current year pension expense, 1-percentage point decrease | ($948) |
Employee_Benefit_Plans_Details4
Employee Benefit Plans (Details 5) (USD $) | Dec. 31, 2013 |
Medicare Part D Subsidy | ' |
2014 | $2,121,000 |
2015 | 2,391,000 |
2016 | 2,650,000 |
2017 | 2,921,000 |
2018 | 3,222,000 |
Years 2019-2023 | 20,982,000 |
Pension Benefits | ' |
Expected benefits to be paid | ' |
2014 | 20,326,000 |
2015 | 14,820,000 |
2016 | 14,772,000 |
2017 | 15,814,000 |
2018 | 16,516,000 |
Years 2019-2023 | 92,643,000 |
Other Postretirement Benefits Before Medicare Subsidy | ' |
Pension and Other Employee Benefits | ' |
Funding requirement for 2014 | 30,000,000 |
Expected benefits to be paid | ' |
2014 | 32,158,000 |
2015 | 34,127,000 |
2016 | 36,056,000 |
2017 | 37,921,000 |
2018 | 39,824,000 |
Years 2019-2023 | 217,871,000 |
Other Postretirement Benefits Before Medicare Subsidy | Minimum | ' |
Pension and Other Employee Benefits | ' |
Funding requirement for 2014 | $1,100,000 |
Employee_Benefit_Plans_Details5
Employee Benefit Plans (Details 6) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | |
Pension and Other Postretirement Benefits | ' | ' | ' | ' |
Percentage workforce of the entity represented by UMWA | 41.00% | ' | ' | ' |
Number of multiemployer benefit plans | 2 | ' | ' | ' |
UMWA 1974 Pension Plan | ' | ' | ' | ' |
Pension and Other Postretirement Benefits | ' | ' | ' | ' |
Required contribution per hour worked by employees under collective bargaining agreement | 5.5 | ' | ' | ' |
Percentage required for getting listed under Form 5500 filed | 5.00% | ' | ' | ' |
Required funded percentage under Pension Protection Act | 80.00% | ' | ' | ' |
Maximum number of years to reach a projected funding deficiency in addition to specified funded percentage to deem plan as endangered or seriously endangered | '7 years | ' | ' | ' |
Maximum funded percentage for specified period to deem plan as endangered or seriously endangered | 80.00% | ' | ' | ' |
Minimum funded percentage for specified period to deem plan as critical | 65.00% | ' | ' | ' |
Funded percentage of multi-employer pension plan as certified by the actuary | 71.20% | ' | ' | ' |
Minimum improvement in funded plan status under the Funding Improvement Plan (as a percent) | 20.00% | ' | ' | ' |
Period for a specified improvement in funded plan status under the Funding Improvement Plan | '15 years | ' | ' | ' |
Nondeductible excise tax rate on accumulated funding deficiency for not meeting the ERISA's minimum funding requirement (as a percent) | 5.00% | ' | ' | ' |
Number of plan years used in calculating employer's share of the unfunded vested benefits | '5 years | ' | ' | ' |
Unfunded vested benefits | ' | ' | ' | $5,400,000,000 |
Percentage of hours worked compared during the previous five plan years to the total hours worked by all plan participants | 14.00% | ' | ' | ' |
Entity's combined withdrawal liability | 760,000,000 | ' | ' | ' |
Contributions to the plans | 19,670,000 | 20,948,000 | 19,520,000 | ' |
1993 Benefit Plan | ' | ' | ' | ' |
Pension and Other Postretirement Benefits | ' | ' | ' | ' |
Contributions to the plans | $3,900,000 | $4,200,000 | $1,800,000 | ' |
Contribution per hour worked by employees under 2011 labor agreement | 1.1 | 1.1 | 1.1 | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2009 |
Stockholders' Equity | ' | ' |
Preferred stock authorized for issuance (in shares) | ' | 20,000,000 |
Preferred stock, par value (in dollars per share) | ' | $0.01 |
Preferred stock, Issued shares | 0 | ' |
Stockholders_Equity_Details_2
Stockholders' Equity (Details 2) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2012 | Apr. 02, 2011 | |
Western Coal Corp | Western Coal Corp | ||
Common Stock | |||
Stock issued in connection with the acquisition | ' | ' | ' |
Shares issued in connection with acquisition | ' | ' | 8,951,558 |
Fair value of shares issued | ' | ' | $1,200,000,000 |
Cash payment on exercise (or expiration) of warrants | $11,535,000 | $11,500,000 | ' |
Shares issued upon exercise of warrants | ' | 18,938 | ' |
Net_Income_Loss_Per_Share_Deta
Net Income (Loss) Per Share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' |
Income (loss) from continuing operations | ($359,003) | ($1,065,555) | $363,598 |
Income from discontinued operations | ' | $5,180 | ' |
Denominator: | ' | ' | ' |
Average number of common shares outstanding, Basic | 62,564,000 | 62,536,000 | 60,257,000 |
Effect of dilutive securities: | ' | ' | ' |
Stock awards and warrants | ' | ' | 354,000 |
Weighted average shares, diluted | 62,564,000 | 62,536,000 | 60,611,000 |
Income (loss) from continuing operations (in dollars per share) | ($5.74) | ($17.04) | $6.03 |
Income from discontinued operations (in dollars per share) | ' | $0.08 | ' |
Net income (loss) (in dollars per share) | ($5.74) | ($16.96) | $6.03 |
Income (loss) from continuing operations (in dollars per share) | ($5.74) | ($17.04) | $6 |
Income from discontinued operations (in dollars per share) | ' | $0.08 | ' |
Net income (loss) (in dollars per share) | ($5.74) | ($16.96) | $6 |
Effect of dilutive securities (in shares) | 0 | 0 | ' |
Anti-dilutive securities excluded from earnings per share calculation | 539,682 | 238,210 | 31,511 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2013 | 30-May-12 | Mar. 15, 2012 | Jan. 26, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Environmental Matters | Environmental Matters | Securities Class Actions and Shareholder Derivative Actions | Securities Class Actions and Shareholder Derivative Actions | Securities Class Actions and Shareholder Derivative Actions | Securities Class Actions and Shareholder Derivative Actions | Other: | Other: | ||||
Walter Coke, Inc. | Walter Coke, Inc. | item | item | item | item | Ridley Terminals Inc. | Alabama State Port Authority | ||||
item | item | Western Coal Corp | Transportation and throughput agreements | ||||||||
Agreement | |||||||||||
Commitments and contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties that the entity has agreed to remediate | ' | ' | ' | ' | 23 | ' | ' | ' | ' | ' | ' |
Number of other PRP's in which "Offer to Conduct Work" letter was sent to | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' |
Number of residential properties whose sampling has been completed by EPA | ' | ' | ' | 1,100 | ' | ' | ' | ' | ' | ' | ' |
Number of properties exceeding Regional Removal Management Levels (RML's) | ' | ' | ' | 400 | ' | ' | ' | ' | ' | ' | ' |
Number of Phase I properties offered to Potentially Responsible Parties PRP's for cleanup | ' | ' | ' | 50 | ' | ' | ' | ' | ' | ' | ' |
Number of executive directors as defendants | ' | ' | ' | ' | ' | ' | 3 | 3 | ' | ' | ' |
Number of actions | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Number of complaints | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Loss contingency, liability maintained | ' | ' | ' | ' | ' | ' | ' | ' | ' | $800,000 | $2,800,000 |
Lease Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total cost of assets under capital leases | 45,200,000 | 45,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization on assets under capital leases | 18,900,000 | 14,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense | 20,800,000 | 18,100,000 | 21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized Leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 8,289,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 5,564,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 39,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 13,892,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: amount representing interest and other executory costs | -750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Present value of minimum lease payments | 13,142,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 9,917,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 3,628,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 3,468,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 3,216,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 2,616,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 2,892,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 25,737,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Coal royalty expense | $78,100,000 | $116,300,000 | $111,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 0 Months Ended | |||
In Millions, unless otherwise specified | Jun. 27, 2011 | Dec. 30, 2008 | Jun. 27, 2011 | Jun. 07, 2011 |
Interest rate swap - June 2011 | Interest rate swap - December 2008 | Interest rate cap | Natural Gas Hedge | |
MMBTU | ||||
Fair Value of Financial Instruments | ' | ' | ' | ' |
Notional value | $450 | $31.50 | $255 | ' |
Debt instrument, description of variable rate basis | '3-month LIBOR | '1-month LIBOR | '3-month LIBOR | ' |
Agreement period | '3 years | ' | '3 years | '1 year |
Fixed rate (as a percent) | 1.17% | 1.84% | ' | ' |
Number of monthly interest payments, hedged | ' | '62 months | ' | ' |
Number of monthly interest payments | ' | '64 months | ' | ' |
Fixed rate (as a percent) | ' | ' | 2.00% | ' |
Amount hedged (in mmbtus) | ' | ' | ' | 4,200,000 |
Price per mmbtu of forecasted natural gas (in dollars per mmbtu) | ' | ' | ' | 5 |
Percentage of forecasted natural gas to be hedged | ' | ' | ' | 30.00% |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (Designated as cash flow hedging instruments, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Interest rate cap | ' | ' |
Entity's derivative instruments within the consolidated balance sheets | ' | ' |
Asset derivatives | $1 | $12 |
Interest rate cap | Other current assets | ' | ' |
Entity's derivative instruments within the consolidated balance sheets | ' | ' |
Asset derivatives | 1 | 8 |
Interest rate cap | Other long-term assets | ' | ' |
Entity's derivative instruments within the consolidated balance sheets | ' | ' |
Asset derivatives | ' | 4 |
Interest rate swaps | ' | ' |
Entity's derivative instruments within the consolidated balance sheets | ' | ' |
Liability derivatives | 3,080 | 6,615 |
Interest rate swaps | Other current liabilities | ' | ' |
Entity's derivative instruments within the consolidated balance sheets | ' | ' |
Liability derivatives | 3,100 | 4,100 |
Interest rate swaps | Other long-term liabilities | ' | ' |
Entity's derivative instruments within the consolidated balance sheets | ' | ' |
Liability derivatives | ' | $2,500 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (Derivatives designated as cash flow hedging instruments, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives designated as cash flow hedging instruments | ' | ' |
Gain (loss), net of tax recognized in accumulated other comprehensive income (loss) | $4,886 | ($4,616) |
(Gain) loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings | -2,546 | 1,200 |
Loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings (ineffective portion) | 184 | ' |
Natural gas hedges | ' | ' |
Derivatives designated as cash flow hedging instruments | ' | ' |
Gain (loss), net of tax recognized in accumulated other comprehensive income (loss) | ' | -5,812 |
(Gain) loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings | ' | 3,279 |
Interest rate swaps | ' | ' |
Derivatives designated as cash flow hedging instruments | ' | ' |
Gain (loss), net of tax recognized in accumulated other comprehensive income (loss) | 4,894 | 1,459 |
(Gain) loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings | -2,546 | -2,079 |
Loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings (ineffective portion) | 184 | ' |
Interest rate cap | ' | ' |
Derivatives designated as cash flow hedging instruments | ' | ' |
Gain (loss), net of tax recognized in accumulated other comprehensive income (loss) | ($8) | ($263) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Balance at the beginning of the period | ($270,850) | ' | ' |
Other comprehensive income (loss) before reclassifications | 93,250 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 15,342 | ' | ' |
Total other comprehensive income (loss), net of tax | 108,592 | -41,374 | -57,088 |
Balance at the end of the period | -162,258 | -270,850 | ' |
Pension and other postretirement plans | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Balance at the beginning of the period | -266,042 | ' | ' |
Other comprehensive income (loss) before reclassifications | 82,335 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 18,557 | ' | ' |
Total other comprehensive income (loss), net of tax | 100,892 | ' | ' |
Balance at the end of the period | -165,150 | ' | ' |
Unrealized gain/(loss) on hedges | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Balance at the beginning of the period | -4,203 | ' | ' |
Other comprehensive income (loss) before reclassifications | 4,886 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | -2,362 | ' | ' |
Total other comprehensive income (loss), net of tax | 2,524 | ' | ' |
Balance at the end of the period | -1,679 | ' | ' |
Foreign currency translation adjustment | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Balance at the beginning of the period | -1,502 | ' | ' |
Other comprehensive income (loss) before reclassifications | 6,073 | ' | ' |
Total other comprehensive income (loss), net of tax | 6,073 | ' | ' |
Balance at the end of the period | 4,571 | ' | ' |
Unrealized gain on investments | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Balance at the beginning of the period | 897 | ' | ' |
Other comprehensive income (loss) before reclassifications | -44 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | -853 | ' | ' |
Total other comprehensive income (loss), net of tax | ($897) | ' | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Amounts reclassified out of each component of accumulated other comprehensive income (loss) | ' | ' | ' |
Interest income | $1,103,000 | $804,000 | $606,000 |
Other income (loss) | 2,875,000 | -13,081,000 | 17,606,000 |
Income (loss) from continuing operations before income tax expense (benefit) | -400,841,000 | -1,164,759,000 | 494,823,000 |
Income tax expense (benefit) | 41,838,000 | 99,204,000 | -131,225,000 |
Net income (loss) | -359,003,000 | -1,060,375,000 | 363,598,000 |
Gains and losses on cash flow hedges | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ' | ' | ' |
Amounts reclassified out of each component of accumulated other comprehensive income (loss) | ' | ' | ' |
Income (loss) from continuing operations before income tax expense (benefit) | -3,820,000 | ' | ' |
Income tax expense (benefit) | 1,458,000 | ' | ' |
Net income (loss) | -2,362,000 | ' | ' |
Gains and losses on cash flow hedges | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Interest rate swaps | ' | ' | ' |
Amounts reclassified out of each component of accumulated other comprehensive income (loss) | ' | ' | ' |
Interest income | -4,117,000 | ' | ' |
Other income (loss) | 297,000 | ' | ' |
Amortization of pension and other postretirement benefit plans | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ' | ' | ' |
Amounts reclassified out of each component of accumulated other comprehensive income (loss) | ' | ' | ' |
Prior service cost | 1,493,000 | ' | ' |
Net actuarial loss | 28,545,000 | ' | ' |
Income (loss) from continuing operations before income tax expense (benefit) | 30,038,000 | ' | ' |
Income tax expense (benefit) | -11,481,000 | ' | ' |
Net income (loss) | 18,557,000 | ' | ' |
Gains and losses on available-for-sale securities | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ' | ' | ' |
Amounts reclassified out of each component of accumulated other comprehensive income (loss) | ' | ' | ' |
Other income (loss) | -1,382,000 | ' | ' |
Income tax expense (benefit) | 529,000 | ' | ' |
Net income (loss) | ($853,000) | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (Recurring, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Level 2 | Interest rate cap | ' | ' |
Fair value information | ' | ' |
Derivative assets | $1 | $12 |
Level 2 | Interest rate swaps | ' | ' |
Fair value information | ' | ' |
Derivative liabilities | 3,080 | 6,615 |
Total Fair Value | Interest rate cap | ' | ' |
Fair value information | ' | ' |
Derivative assets | 1 | 12 |
Total Fair Value | Interest rate swaps | ' | ' |
Fair value information | ' | ' |
Derivative liabilities | $3,080 | $6,615 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Carrying Amount | Revolving Credit Facility | ' | ' |
Debt | ' | ' |
Debt | $0 | $0 |
Carrying Amount | 2011 Term Loan A | ' | ' |
Debt | ' | ' |
Debt | 401,052 | 756,974 |
Carrying Amount | 2011 Term Loan B | ' | ' |
Debt | ' | ' |
Debt | 968,581 | 1,127,770 |
Carrying Amount | 9.875% Senior Notes | ' | ' |
Debt | ' | ' |
Debt | 496,831 | 496,510 |
Carrying Amount | 8.50% Senior Notes | ' | ' |
Debt | ' | ' |
Debt | 450,000 | ' |
Carrying Amount | 9.50% senior secured notes due 2019 | ' | ' |
Debt | ' | ' |
Debt | 447,492 | ' |
Fair Value | 2011 Term Loan A | ' | ' |
Debt | ' | ' |
Debt | 403,517 | 758,867 |
Fair Value | 2011 Term Loan B | ' | ' |
Debt | ' | ' |
Debt | 959,838 | 1,135,293 |
Fair Value | 9.875% Senior Notes | ' | ' |
Debt | ' | ' |
Debt | 431,250 | 500,000 |
Fair Value | 8.50% Senior Notes | ' | ' |
Debt | ' | ' |
Debt | 374,625 | ' |
Fair Value | 9.50% senior secured notes due 2019 | ' | ' |
Debt | ' | ' |
Debt | $474,750 | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||
Segment Information | ' | ' | ' |
Number of reportable segments | 3 | ' | ' |
Revenues: | ' | ' | ' |
Total Revenues | $1,860,631,000 | $2,399,895,000 | $2,571,358,000 |
Segment operating income (loss): | ' | ' | ' |
Operating income (loss) | -170,965,000 | -1,013,126,000 | 573,431,000 |
Less interest expense, net | -232,751,000 | -138,552,000 | -96,214,000 |
Other income (loss) | 2,875,000 | -13,081,000 | 17,606,000 |
Income (loss) from continuing operations before income tax expense (benefit) | -400,841,000 | -1,164,759,000 | 494,823,000 |
Income tax expense (benefit) | -41,838,000 | -99,204,000 | 131,225,000 |
Income (loss) from continuing operations | -359,003,000 | -1,065,555,000 | 363,598,000 |
Impairment and restructuring charges: | ' | ' | ' |
Impairment and restructuring charges | 2,883,000 | 1,113,479,000 | ' |
Depreciation and depletion: | ' | ' | ' |
Total depreciation and depletion | 311,514,000 | 316,232,000 | 230,681,000 |
Capital expenditures: | ' | ' | ' |
Total capital expenditures | 153,896,000 | 391,512,000 | 414,566,000 |
Identifiable assets by segment: | ' | ' | ' |
Total identifiable assets | 5,590,860,000 | 5,768,420,000 | 6,856,508,000 |
Long-lived assets by country: | ' | ' | ' |
Total long-lived assets | 4,542,554,000 | 4,697,688,000 | 4,687,591,000 |
Export sales | ' | ' | ' |
Export sales | 1,500,000,000 | 1,900,000,000 | 2,000,000,000 |
Other postretirement benefits (income) expense | 58,900,000 | 52,852,000 | 40,385,000 |
U.S. | ' | ' | ' |
Long-lived assets by country: | ' | ' | ' |
Total long-lived assets | 998,763,000 | 1,034,992,000 | 1,096,763,000 |
Canada | ' | ' | ' |
Long-lived assets by country: | ' | ' | ' |
Total long-lived assets | 3,092,483,000 | 3,203,227,000 | 3,195,377,000 |
U.K. | ' | ' | ' |
Long-lived assets by country: | ' | ' | ' |
Total long-lived assets | 451,308,000 | 459,469,000 | 395,451,000 |
Sales | Foreign countries | Greater than | ' | ' | ' |
Export sales | ' | ' | ' |
Threshold for sales to customers in foreign countries as a percentage of consolidated revenues | 10.00% | 10.00% | 10.00% |
Sales | Foreign countries | Japan | ' | ' | ' |
Export sales | ' | ' | ' |
Revenues from external customers as a percentage of consolidated revenues | 13.20% | 11.50% | 9.40% |
Sales | Foreign countries | Brazil | ' | ' | ' |
Export sales | ' | ' | ' |
Revenues from external customers as a percentage of consolidated revenues | 13.30% | 10.70% | 10.50% |
Sales | Foreign countries | Germany | ' | ' | ' |
Export sales | ' | ' | ' |
Revenues from external customers as a percentage of consolidated revenues | 10.50% | 9.70% | 9.80% |
U.S. Operations | ' | ' | ' |
Revenues: | ' | ' | ' |
Total Revenues | 1,331,308,000 | 1,728,363,000 | 1,871,182,000 |
Segment operating income (loss): | ' | ' | ' |
Operating income (loss) | 58,371,000 | 188,696,000 | 561,370,000 |
Impairment and restructuring charges: | ' | ' | ' |
Impairment and restructuring charges | -7,763,000 | 114,281,000 | ' |
Depreciation and depletion: | ' | ' | ' |
Total depreciation and depletion | 167,668,000 | 173,140,000 | 155,702,000 |
Capital expenditures: | ' | ' | ' |
Total capital expenditures | 133,407,000 | 162,535,000 | 149,996,000 |
Identifiable assets by segment: | ' | ' | ' |
Total identifiable assets | 1,265,255,000 | 1,603,745,000 | 1,118,451,000 |
Export sales | ' | ' | ' |
Other postretirement benefits (income) expense | 59,118,000 | 53,301,000 | 41,745,000 |
Canadian and U.K. operations | ' | ' | ' |
Revenues: | ' | ' | ' |
Total Revenues | 527,989,000 | 668,313,000 | 698,054,000 |
Segment operating income (loss): | ' | ' | ' |
Operating income (loss) | -209,709,000 | -1,158,591,000 | 86,538,000 |
Impairment and restructuring charges: | ' | ' | ' |
Impairment and restructuring charges | 10,646,000 | 999,198,000 | ' |
Depreciation and depletion: | ' | ' | ' |
Total depreciation and depletion | 141,696,000 | 141,713,000 | 74,203,000 |
Capital expenditures: | ' | ' | ' |
Total capital expenditures | 18,331,000 | 224,583,000 | 264,476,000 |
Identifiable assets by segment: | ' | ' | ' |
Total identifiable assets | 3,687,925,000 | 3,728,817,000 | 5,021,521,000 |
Other | ' | ' | ' |
Revenues: | ' | ' | ' |
Total Revenues | 1,334,000 | 3,219,000 | 2,122,000 |
Segment operating income (loss): | ' | ' | ' |
Operating income (loss) | -19,627,000 | -43,231,000 | -74,477,000 |
Depreciation and depletion: | ' | ' | ' |
Total depreciation and depletion | 2,150,000 | 1,379,000 | 776,000 |
Capital expenditures: | ' | ' | ' |
Total capital expenditures | 2,158,000 | 4,394,000 | 94,000 |
Identifiable assets by segment: | ' | ' | ' |
Total identifiable assets | 637,680,000 | 435,858,000 | 716,536,000 |
Export sales | ' | ' | ' |
Other postretirement benefits (income) expense | ($218,000) | ($449,000) | ($1,360,000) |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
BWM | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Ownership interest in the joint venture accounted for under the proportionate consolidation method (as a percent) | 50.00% | ' | ' |
Charges to joint venture | $1.90 | $2.40 | $2.90 |
Belcourt Saxon | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Ownership interest in the joint venture accounted for under the proportionate consolidation method (as a percent) | 50.00% | ' | ' |
Number of multi-deposit coal properties owned by the related party | 2 | ' | ' |
Belcourt Saxon | Minimum | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Distance of multi-deposit coal properties from south of Wolverine Mine | 40 | ' | ' |
Belcourt Saxon | Maximum | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Distance of multi-deposit coal properties from south of Wolverine Mine | 80 | ' | ' |
Supplemental_Guarantor_and_Non2
Supplemental Guarantor and Non-Guarantor Financial Information (Details) | Dec. 31, 2013 | Nov. 21, 2012 |
2020 Notes | ' | ' |
Debt instrument | ' | ' |
Interest rate (as a percent) | 9.88% | 9.88% |
2021 Notes | ' | ' |
Debt instrument | ' | ' |
Interest rate (as a percent) | 8.50% | ' |
Supplemental_Guarantor_and_Non3
Supplemental Guarantor and Non-Guarantor Financial Information (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | $260,818 | $116,601 | $128,430 | $293,410 |
Receivables, net | 281,763 | 256,967 | ' | ' |
Inventories | 312,647 | 306,018 | ' | ' |
Deferred income taxes | 37,067 | 58,526 | ' | ' |
Prepaid expenses | 39,022 | 53,776 | ' | ' |
Other current assets | 18,031 | 23,928 | ' | ' |
Total current assets | 949,348 | 815,816 | ' | ' |
Mineral interests, net | 2,905,002 | 2,965,557 | ' | ' |
Property, plant and equipment, net | 1,637,552 | 1,732,131 | ' | ' |
Deferred income taxes | ' | 160,422 | ' | ' |
Other long-term assets | 98,958 | 94,494 | ' | ' |
Total assets | 5,590,860 | 5,768,420 | 6,856,508 | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Current debt | 9,210 | 18,793 | ' | ' |
Accounts payable | 92,712 | 114,913 | ' | ' |
Accrued expenses | 133,870 | 184,875 | ' | ' |
Accumulated other postretirement benefits obligation | 30,036 | 29,200 | ' | ' |
Other current liabilities | 214,073 | 206,473 | ' | ' |
Total current liabilities | 479,901 | 554,254 | ' | ' |
Long-term debt | 2,769,622 | 2,397,372 | ' | ' |
Accumulated other postretirement benefits obligation | 570,712 | 633,264 | ' | ' |
Deferred income taxes | 822,867 | 921,687 | ' | ' |
Other long-term liabilities | 195,064 | 251,272 | ' | ' |
Total liabilities | 4,838,166 | 4,757,849 | ' | ' |
Total stockholders' equity | 752,694 | 1,010,571 | 2,136,517 | 595,066 |
Total liabilities and stockholders' equity | 5,590,860 | 5,768,420 | ' | ' |
Parent (Issuer) | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 234,150 | 83,833 | 99,086 | 294,413 |
Receivables, net | 113,936 | 64,106 | ' | ' |
Intercompany receivables | ' | 721,293 | ' | ' |
Intercompany loans receivable | 63,549 | 118,079 | ' | ' |
Deferred income taxes | 23,957 | 39,375 | ' | ' |
Prepaid expenses | 2,245 | 1,869 | ' | ' |
Other current assets | 15,257 | 17,559 | ' | ' |
Total current assets | 453,094 | 1,046,114 | ' | ' |
Property, plant and equipment, net | 7,248 | 8,448 | ' | ' |
Deferred income taxes | 3,049 | 52,363 | ' | ' |
Investment in subsidiaries | 4,409,683 | 3,530,094 | ' | ' |
Other long-term assets | 73,564 | 71,622 | ' | ' |
Total assets | 4,946,638 | 4,708,641 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Accounts payable | 5,604 | 5,128 | ' | ' |
Accrued expenses | 34,551 | 27,197 | ' | ' |
Intercompany payables | 87,904 | ' | ' | ' |
Intercompany loans payable | 1,104,282 | 1,074,879 | ' | ' |
Accumulated other postretirement benefits obligation | 94 | 131 | ' | ' |
Other current liabilities | 164,364 | 157,044 | ' | ' |
Total current liabilities | 1,396,799 | 1,264,379 | ' | ' |
Long-term debt | 2,763,957 | 2,381,255 | ' | ' |
Accumulated other postretirement benefits obligation | 263 | 452 | ' | ' |
Other long-term liabilities | 32,925 | 51,984 | ' | ' |
Total liabilities | 4,193,944 | 3,698,070 | ' | ' |
Total stockholders' equity | 752,694 | 1,010,571 | ' | ' |
Total liabilities and stockholders' equity | 4,946,638 | 4,708,641 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 101 | 61 | 79 | -1,823 |
Receivables, net | 90,460 | 113,182 | ' | ' |
Intercompany receivables | 30,126 | ' | ' | ' |
Intercompany loans receivable | 1,104,282 | 1,074,879 | ' | ' |
Inventories | 168,434 | 131,893 | ' | ' |
Deferred income taxes | 12,154 | 17,687 | ' | ' |
Prepaid expenses | 34,011 | 45,327 | ' | ' |
Other current assets | 440 | 1,109 | ' | ' |
Total current assets | 1,440,008 | 1,384,138 | ' | ' |
Mineral interests, net | 7,294 | 18,475 | ' | ' |
Property, plant and equipment, net | 764,406 | 790,900 | ' | ' |
Deferred income taxes | 4,458 | 112,560 | ' | ' |
Investment in subsidiaries | 86,357 | ' | ' | ' |
Other long-term assets | 10,323 | 9,375 | ' | ' |
Total assets | 2,312,846 | 2,315,448 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Current debt | 1,313 | 10,196 | ' | ' |
Accounts payable | 64,678 | 78,260 | ' | ' |
Accrued expenses | 53,582 | 83,155 | ' | ' |
Intercompany payables | ' | 567,360 | ' | ' |
Accumulated other postretirement benefits obligation | 29,942 | 29,069 | ' | ' |
Other current liabilities | 27,062 | 24,389 | ' | ' |
Total current liabilities | 176,577 | 792,429 | ' | ' |
Long-term debt | ' | 1,784 | ' | ' |
Accumulated other postretirement benefits obligation | 570,449 | 632,812 | ' | ' |
Other long-term liabilities | 73,420 | 128,593 | ' | ' |
Total liabilities | 820,446 | 1,555,618 | ' | ' |
Total stockholders' equity | 1,492,400 | 759,830 | ' | ' |
Total liabilities and stockholders' equity | 2,312,846 | 2,315,448 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 26,567 | 32,707 | 29,265 | 820 |
Receivables, net | 77,367 | 79,679 | ' | ' |
Intercompany receivables | 57,778 | ' | ' | ' |
Inventories | 144,213 | 174,125 | ' | ' |
Deferred income taxes | 956 | 1,464 | ' | ' |
Prepaid expenses | 2,766 | 6,580 | ' | ' |
Other current assets | 2,334 | 5,260 | ' | ' |
Total current assets | 311,981 | 299,815 | ' | ' |
Mineral interests, net | 2,897,708 | 2,947,082 | ' | ' |
Property, plant and equipment, net | 865,898 | 932,783 | ' | ' |
Deferred income taxes | ' | -4,501 | ' | ' |
Other long-term assets | 15,071 | 13,497 | ' | ' |
Total assets | 4,090,658 | 4,188,676 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Current debt | 7,897 | 8,597 | ' | ' |
Accounts payable | 22,430 | 31,525 | ' | ' |
Accrued expenses | 45,737 | 74,523 | ' | ' |
Intercompany payables | ' | 153,933 | ' | ' |
Intercompany loans payable | 63,549 | 118,079 | ' | ' |
Other current liabilities | 22,647 | 25,040 | ' | ' |
Total current liabilities | 162,260 | 411,697 | ' | ' |
Long-term debt | 5,665 | 14,333 | ' | ' |
Deferred income taxes | 830,374 | 921,687 | ' | ' |
Other long-term liabilities | 88,719 | 70,695 | ' | ' |
Total liabilities | 1,087,018 | 1,418,412 | ' | ' |
Total stockholders' equity | 3,003,640 | 2,770,264 | ' | ' |
Total liabilities and stockholders' equity | 4,090,658 | 4,188,676 | ' | ' |
Eliminations | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Intercompany receivables | -87,904 | -721,293 | ' | ' |
Intercompany loans receivable | -1,167,831 | -1,192,958 | ' | ' |
Total current assets | -1,255,735 | -1,914,251 | ' | ' |
Deferred income taxes | -7,507 | ' | ' | ' |
Investment in subsidiaries | -4,496,040 | -3,530,094 | ' | ' |
Total assets | -5,759,282 | -5,444,345 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Intercompany payables | -87,904 | -721,293 | ' | ' |
Intercompany loans payable | -1,167,831 | -1,192,958 | ' | ' |
Total current liabilities | -1,255,735 | -1,914,251 | ' | ' |
Deferred income taxes | -7,507 | ' | ' | ' |
Total liabilities | -1,263,242 | -1,914,251 | ' | ' |
Total stockholders' equity | -4,496,040 | -3,530,094 | ' | ' |
Total liabilities and stockholders' equity | ($5,759,282) | ($5,444,345) | ' | ' |
Supplemental_Guarantor_and_Non4
Supplemental Guarantor and Non-Guarantor Financial Information (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenues: | ' | ' | ' |
Sales | $1,836,343,000 | $2,381,760,000 | $2,562,325,000 |
Miscellaneous income (loss) | 24,288,000 | 18,135,000 | 9,033,000 |
Total revenues | 1,860,631,000 | 2,399,895,000 | 2,571,358,000 |
Cost and expenses: | ' | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 1,558,305,000 | 1,796,991,000 | 1,561,112,000 |
Depreciation and depletion | 311,514,000 | 316,232,000 | 230,681,000 |
Selling, general and administrative | 99,994,000 | 133,467,000 | 165,749,000 |
Other postretirement benefits | 58,900,000 | 52,852,000 | 40,385,000 |
Restructuring and asset impairment | 2,883,000 | 49,070,000 | ' |
Goodwill impairment | ' | 1,064,409,000 | ' |
Total costs and expenses | 2,031,596,000 | 3,413,021,000 | 1,997,927,000 |
Operating income (loss) | -170,965,000 | -1,013,126,000 | 573,431,000 |
Interest expense | -233,854,000 | -139,356,000 | -96,820,000 |
Interest income | 1,103,000 | 804,000 | 606,000 |
Other income (loss) | 2,875,000 | -13,081,000 | 17,606,000 |
Income (loss) from continuing operations before income tax expense (benefit) | -400,841,000 | -1,164,759,000 | 494,823,000 |
Income tax expense (benefit) | -41,838,000 | -99,204,000 | 131,225,000 |
Income (loss) from continuing operations | -359,003,000 | -1,065,555,000 | 363,598,000 |
Income from discontinued operations | ' | 5,180,000 | ' |
Net income (loss) | -359,003,000 | -1,060,375,000 | 363,598,000 |
Parent (Issuer) | ' | ' | ' |
Revenues: | ' | ' | ' |
Miscellaneous income (loss) | 88,000 | 2,233,000 | 21,486,000 |
Total revenues | 88,000 | 2,233,000 | 21,486,000 |
Cost and expenses: | ' | ' | ' |
Depreciation and depletion | 2,150,000 | 1,379,000 | 776,000 |
Selling, general and administrative | 4,393,000 | 11,716,000 | 39,165,000 |
Other postretirement benefits | -218,000 | -449,000 | -1,360,000 |
Total costs and expenses | 6,325,000 | 12,646,000 | 38,581,000 |
Operating income (loss) | -6,237,000 | -10,413,000 | -17,095,000 |
Interest expense | -269,586,000 | -162,938,000 | -131,545,000 |
Interest income | 6,274,000 | 5,895,000 | 1,251,000 |
Other income (loss) | 3,993,000 | ' | ' |
Income (loss) from continuing operations before income tax expense (benefit) | -265,556,000 | -167,456,000 | -147,389,000 |
Income tax expense (benefit) | -51,821,000 | -68,615,000 | -71,566,000 |
Income (loss) from continuing operations | -213,735,000 | -98,841,000 | -75,823,000 |
Equity in losses of subsidiaries | -145,268,000 | -961,534,000 | 439,421,000 |
Net income (loss) | -359,003,000 | -1,060,375,000 | 363,598,000 |
Guarantor Subsidiaries | ' | ' | ' |
Revenues: | ' | ' | ' |
Sales | 1,231,883,000 | 1,592,680,000 | 1,694,235,000 |
Miscellaneous income (loss) | 10,798,000 | 20,518,000 | 8,973,000 |
Total revenues | 1,242,681,000 | 1,613,198,000 | 1,703,208,000 |
Cost and expenses: | ' | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 911,023,000 | 1,039,547,000 | 927,465,000 |
Depreciation and depletion | 149,096,000 | 141,463,000 | 120,086,000 |
Selling, general and administrative | 50,073,000 | 71,208,000 | 79,564,000 |
Other postretirement benefits | 59,118,000 | 53,301,000 | 41,745,000 |
Restructuring and asset impairment | -7,763,000 | ' | ' |
Goodwill impairment | ' | 1,713,000 | ' |
Total costs and expenses | 1,161,547,000 | 1,307,232,000 | 1,168,860,000 |
Operating income (loss) | 81,134,000 | 305,966,000 | 534,348,000 |
Interest expense | ' | -1,826,000 | -1,629,000 |
Interest income | 30,983,000 | 28,617,000 | 36,554,000 |
Income (loss) from continuing operations before income tax expense (benefit) | 112,117,000 | 332,757,000 | 569,273,000 |
Income tax expense (benefit) | 109,318,000 | 85,935,000 | 199,886,000 |
Income (loss) from continuing operations | 2,799,000 | 246,822,000 | 369,387,000 |
Income from discontinued operations | ' | 5,180,000 | ' |
Net income (loss) | 2,799,000 | 252,002,000 | 369,387,000 |
Non-Guarantor Subsidiaries | ' | ' | ' |
Revenues: | ' | ' | ' |
Sales | 604,460,000 | 789,080,000 | 868,090,000 |
Miscellaneous income (loss) | 13,402,000 | -4,616,000 | -21,426,000 |
Total revenues | 617,862,000 | 784,464,000 | 846,664,000 |
Cost and expenses: | ' | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 647,282,000 | 757,444,000 | 633,647,000 |
Depreciation and depletion | 160,268,000 | 173,390,000 | 109,819,000 |
Selling, general and administrative | 45,528,000 | 50,543,000 | 47,020,000 |
Restructuring and asset impairment | 10,646,000 | 49,070,000 | ' |
Goodwill impairment | ' | 1,062,696,000 | ' |
Total costs and expenses | 863,724,000 | 2,093,143,000 | 790,486,000 |
Operating income (loss) | -245,862,000 | -1,308,679,000 | 56,178,000 |
Interest expense | -3,757,000 | -12,731,000 | -4,917,000 |
Interest income | 3,335,000 | 4,431,000 | 4,072,000 |
Other income (loss) | -1,118,000 | -13,081,000 | 17,606,000 |
Income (loss) from continuing operations before income tax expense (benefit) | -247,402,000 | -1,330,060,000 | 72,939,000 |
Income tax expense (benefit) | -99,335,000 | -116,524,000 | 2,905,000 |
Income (loss) from continuing operations | -148,067,000 | -1,213,536,000 | 70,034,000 |
Net income (loss) | -148,067,000 | -1,213,536,000 | 70,034,000 |
Eliminations | ' | ' | ' |
Cost and expenses: | ' | ' | ' |
Interest expense | 39,489,000 | 38,139,000 | 41,271,000 |
Interest income | -39,489,000 | -38,139,000 | -41,271,000 |
Equity in losses of subsidiaries | 145,268,000 | 961,534,000 | -439,421,000 |
Net income (loss) | $145,268,000 | $961,534,000 | ($439,421,000) |
Supplemental_Guarantor_and_Non5
Supplemental Guarantor and Non-Guarantor Financial Information (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' |
Net income (loss) | ($359,003,000) | ($1,060,375,000) | $363,598,000 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Change in pension and other postretirement benefit plans, net of tax | 100,892,000 | -40,501,000 | -53,224,000 |
Change in unrealized loss on hedges, net of tax | 2,524,000 | -3,416,000 | -716,000 |
Change in foreign currency translation adjustment | 6,073,000 | 1,774,000 | -3,276,000 |
Change in unrealized gain on investments | -897,000 | 769,000 | 128,000 |
Total other comprehensive income (loss), net of tax | 108,592,000 | -41,374,000 | -57,088,000 |
Total comprehensive income (loss) | -250,411,000 | -1,101,749,000 | 306,510,000 |
Parent (Issuer) | ' | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' |
Net income (loss) | -359,003,000 | -1,060,375,000 | 363,598,000 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Change in pension and other postretirement benefit plans, net of tax | 100,892,000 | -40,501,000 | -53,224,000 |
Change in unrealized loss on hedges, net of tax | 2,524,000 | -3,416,000 | -716,000 |
Change in foreign currency translation adjustment | 6,073,000 | 1,774,000 | -3,276,000 |
Change in unrealized gain on investments | -897,000 | 769,000 | 128,000 |
Total other comprehensive income (loss), net of tax | 108,592,000 | -41,374,000 | -57,088,000 |
Total comprehensive income (loss) | -250,411,000 | -1,101,749,000 | 306,510,000 |
Guarantor Subsidiaries | ' | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' |
Net income (loss) | 2,799,000 | 252,002,000 | 369,387,000 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Change in pension and other postretirement benefit plans, net of tax | 91,501,000 | -90,876,000 | -9,437,000 |
Change in unrealized loss on hedges, net of tax | 58,000 | 95,000 | 85,000 |
Total other comprehensive income (loss), net of tax | 91,559,000 | -90,781,000 | -9,352,000 |
Total comprehensive income (loss) | 94,358,000 | 161,221,000 | 360,035,000 |
Non-Guarantor Subsidiaries | ' | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' |
Net income (loss) | -148,067,000 | -1,213,536,000 | 70,034,000 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Change in unrealized loss on hedges, net of tax | ' | -2,533,000 | 2,309,000 |
Change in foreign currency translation adjustment | 6,073,000 | 1,774,000 | -3,276,000 |
Change in unrealized gain on investments | -897,000 | 769,000 | 128,000 |
Total other comprehensive income (loss), net of tax | 5,176,000 | 10,000 | -839,000 |
Total comprehensive income (loss) | -142,891,000 | -1,213,526,000 | 69,195,000 |
Eliminations | ' | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' |
Net income (loss) | 145,268,000 | 961,534,000 | -439,421,000 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Change in pension and other postretirement benefit plans, net of tax | -91,501,000 | 90,876,000 | 9,437,000 |
Change in unrealized loss on hedges, net of tax | -58,000 | 2,438,000 | -2,394,000 |
Change in foreign currency translation adjustment | -6,073,000 | -1,774,000 | 3,276,000 |
Change in unrealized gain on investments | 897,000 | -769,000 | -128,000 |
Total other comprehensive income (loss), net of tax | -96,735,000 | 90,771,000 | 10,191,000 |
Total comprehensive income (loss) | $48,533,000 | $1,052,305,000 | ($429,230,000) |
Supplemental_Guarantor_and_Non6
Supplemental Guarantor and Non-Guarantor Financial Information (Details 5) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' | ' |
Cash flows provided by (used in) operating activities | ($27,076,000) | $329,907,000 | $706,866,000 | ' |
INVESTING ACTIVITIES | ' | ' | ' | ' |
Additions to property, plant and equipment | -153,896,000 | -391,512,000 | -436,705,000 | ' |
Proceeds from sales of investments | 1,559,000 | 13,239,000 | 27,325,000 | ' |
Other | 1,824,000 | 898,000 | 1,413,000 | ' |
Cash flows used in investing activities | -150,513,000 | -377,375,000 | -2,840,660,000 | ' |
FINANCING ACTIVITIES | ' | ' | ' | ' |
Proceeds from issuance of debt | 897,412,000 | 496,510,000 | 2,350,000,000 | ' |
Borrowings under revolving credit agreement | 764,332,000 | 510,650,000 | 71,259,000 | ' |
Repayments on revolving credit agreement | -764,332,000 | -519,453,000 | -61,259,000 | ' |
Retirements of debt | -515,195,000 | -392,851,000 | -290,630,000 | ' |
Dividends paid | -16,889,000 | -31,246,000 | -30,042,000 | ' |
Tax effect from stock-based compensation arrangements | -717,000 | 217,000 | 8,929,000 | ' |
Proceeds from stock-options exercised | 279,000 | 161,000 | 8,920,000 | ' |
Cash paid upon exercise of warrants | ' | -11,535,000 | ' | ' |
Debt issuance costs | -41,588,000 | -24,532,000 | -80,027,000 | ' |
Other | -293,000 | -766,000 | -5,203,000 | ' |
Cash flows provided by financing activities | 323,009,000 | 27,155,000 | 1,971,947,000 | ' |
Cash flows provided by (used in) continuing operations | 145,420,000 | -20,313,000 | -161,847,000 | ' |
CASH FLOWS FROM DISCONTINUED OPERATIONS | ' | ' | ' | ' |
Cash flows provided by investing activities | ' | 9,500,000 | ' | ' |
Cash flows provided by (used in) discontinued operations | ' | 9,500,000 | ' | ' |
Effect of foreign exchange rates on cash | -1,203,000 | -1,016,000 | -3,668,000 | ' |
Net increase (decrease) in cash and cash equivalents | 144,217,000 | -11,829,000 | -165,515,000 | ' |
Cash and cash equivalents at beginning of year | 116,601,000 | 128,430,000 | 293,410,000 | ' |
Add: Cash and cash equivalents of discontinued operations at beginning of year | ' | ' | 535,000 | ' |
Cash and cash equivalents at end of year | 260,818,000 | 116,601,000 | 128,430,000 | ' |
Western Coal Corp | ' | ' | ' | ' |
INVESTING ACTIVITIES | ' | ' | ' | ' |
Acquisition, net of cash acquired | ' | ' | -2,432,693,000 | ' |
FINANCING ACTIVITIES | ' | ' | ' | ' |
Cash paid upon exercise of warrants | ' | -11,500,000 | ' | ' |
Parent (Issuer) | ' | ' | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' | ' |
Cash flows provided by (used in) operating activities | -204,982,000 | -373,256,000 | -569,306,000 | ' |
INVESTING ACTIVITIES | ' | ' | ' | ' |
Additions to property, plant and equipment | -2,294,000 | -4,395,000 | -93,000 | ' |
Intercompany loans made | -40,236,000 | -293,170,000 | -50,738,000 | ' |
Intercompany payments received | 30,500,000 | 16,513,000 | ' | ' |
Investments in equity affiliates | ' | -238,083,000 | ' | ' |
Distributions from equity affiliates | ' | 271,847,000 | 516,407,000 | ' |
Other | ' | ' | 23,000 | ' |
Cash flows used in investing activities | -12,030,000 | -247,288,000 | -2,001,159,000 | ' |
FINANCING ACTIVITIES | ' | ' | ' | ' |
Proceeds from issuance of debt | 897,412,000 | 496,510,000 | 2,350,000,000 | ' |
Retirements of debt | -496,062,000 | -343,255,000 | -258,062,000 | ' |
Dividends paid | -16,889,000 | -31,246,000 | -30,042,000 | ' |
Tax effect from stock-based compensation arrangements | -717,000 | 217,000 | 8,929,000 | ' |
Proceeds from stock-options exercised | 279,000 | 161,000 | 8,920,000 | ' |
Cash paid upon exercise of warrants | ' | -11,535,000 | ' | ' |
Debt issuance costs | -41,588,000 | -24,532,000 | -80,027,000 | ' |
Advances from (to) consolidated entities | 25,072,000 | 519,737,000 | 380,623,000 | ' |
Other | -178,000 | -766,000 | -5,203,000 | ' |
Cash flows provided by financing activities | 367,329,000 | 605,291,000 | 2,375,138,000 | ' |
Cash flows provided by (used in) continuing operations | ' | -15,253,000 | ' | ' |
CASH FLOWS FROM DISCONTINUED OPERATIONS | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | 150,317,000 | -15,253,000 | -195,327,000 | ' |
Cash and cash equivalents at beginning of year | 83,833,000 | 99,086,000 | 294,413,000 | ' |
Cash and cash equivalents at end of year | 234,150,000 | 83,833,000 | 99,086,000 | ' |
Parent (Issuer) | Western Coal Corp | ' | ' | ' | ' |
INVESTING ACTIVITIES | ' | ' | ' | ' |
Acquisition, net of cash acquired | ' | ' | -2,466,758,000 | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' | ' |
Cash flows provided by (used in) operating activities | 236,491,000 | 734,325,000 | 1,047,651,000 | ' |
INVESTING ACTIVITIES | ' | ' | ' | ' |
Additions to property, plant and equipment | -127,873,000 | -143,206,000 | -143,529,000 | ' |
Other | ' | 855,000 | 273,000 | ' |
Cash flows used in investing activities | -127,873,000 | -142,351,000 | -143,256,000 | ' |
FINANCING ACTIVITIES | ' | ' | ' | ' |
Retirements of debt | -19,133,000 | -8,131,000 | -12,300,000 | ' |
Advances from (to) consolidated entities | -89,330,000 | -570,342,000 | -374,321,000 | ' |
Investment from Parent | ' | 238,083,000 | ' | ' |
Intercompany dividends | ' | -261,102,000 | -516,407,000 | ' |
Other | -115,000 | ' | ' | ' |
Cash flows provided by financing activities | -108,578,000 | -601,492,000 | -903,028,000 | ' |
Cash flows provided by (used in) continuing operations | ' | -9,518,000 | ' | ' |
CASH FLOWS FROM DISCONTINUED OPERATIONS | ' | ' | ' | ' |
Cash flows provided by investing activities | ' | 9,500,000 | ' | ' |
Cash flows provided by (used in) discontinued operations | ' | 9,500,000 | ' | ' |
Net increase (decrease) in cash and cash equivalents | 40,000 | -18,000 | 1,367,000 | ' |
Cash and cash equivalents at beginning of year | 61,000 | 79,000 | -1,823,000 | ' |
Add: Cash and cash equivalents of discontinued operations at beginning of year | ' | ' | ' | 535,000 |
Cash and cash equivalents at end of year | 101,000 | 61,000 | 79,000 | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' | ' |
Cash flows provided by (used in) operating activities | -58,585,000 | -31,162,000 | 228,521,000 | ' |
INVESTING ACTIVITIES | ' | ' | ' | ' |
Additions to property, plant and equipment | -23,729,000 | -243,911,000 | -293,083,000 | ' |
Proceeds from sales of investments | 1,559,000 | 13,239,000 | 27,325,000 | ' |
Other | 1,824,000 | 43,000 | 1,117,000 | ' |
Cash flows used in investing activities | -20,346,000 | -230,629,000 | -230,576,000 | ' |
FINANCING ACTIVITIES | ' | ' | ' | ' |
Borrowings under revolving credit agreement | 764,332,000 | 510,650,000 | 71,259,000 | ' |
Repayments on revolving credit agreement | -764,332,000 | -519,453,000 | -61,259,000 | ' |
Retirements of debt | ' | -41,465,000 | -20,268,000 | ' |
Advances from (to) consolidated entities | 64,258,000 | 50,605,000 | -6,302,000 | ' |
Intercompany borrowings | 40,236,000 | 293,170,000 | 50,738,000 | ' |
Intercompany payments made | -30,500,000 | -16,513,000 | ' | ' |
Intercompany dividends | ' | -10,745,000 | ' | ' |
Cash flows provided by financing activities | 73,994,000 | 266,249,000 | 34,168,000 | ' |
Cash flows provided by (used in) continuing operations | ' | 4,458,000 | ' | ' |
CASH FLOWS FROM DISCONTINUED OPERATIONS | ' | ' | ' | ' |
Effect of foreign exchange rates on cash | -1,203,000 | -1,016,000 | -3,668,000 | ' |
Net increase (decrease) in cash and cash equivalents | -6,140,000 | 3,442,000 | 28,445,000 | ' |
Cash and cash equivalents at beginning of year | 32,707,000 | 29,265,000 | 820,000 | ' |
Cash and cash equivalents at end of year | 26,567,000 | 32,707,000 | 29,265,000 | ' |
Non-Guarantor Subsidiaries | Western Coal Corp | ' | ' | ' | ' |
INVESTING ACTIVITIES | ' | ' | ' | ' |
Acquisition, net of cash acquired | ' | ' | 34,065,000 | ' |
Eliminations | ' | ' | ' | ' |
INVESTING ACTIVITIES | ' | ' | ' | ' |
Intercompany loans made | 40,236,000 | 293,170,000 | 50,738,000 | ' |
Intercompany payments received | -30,500,000 | -16,513,000 | ' | ' |
Investments in equity affiliates | ' | 238,083,000 | ' | ' |
Distributions from equity affiliates | ' | -271,847,000 | -516,407,000 | ' |
Cash flows used in investing activities | 9,736,000 | 242,893,000 | -465,669,000 | ' |
FINANCING ACTIVITIES | ' | ' | ' | ' |
Intercompany borrowings | -40,236,000 | -293,170,000 | -50,738,000 | ' |
Intercompany payments made | 30,500,000 | 16,513,000 | ' | ' |
Investment from Parent | ' | -238,083,000 | ' | ' |
Intercompany dividends | ' | 271,847,000 | 516,407,000 | ' |
Cash flows provided by financing activities | ($9,736,000) | ($242,893,000) | $465,669,000 | ' |