Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Walter Energy, Inc. | ' |
Entity Central Index Key | '0000837173 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 65,824,791 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $404,715 | $260,818 |
Receivables, net | 254,874 | 281,763 |
Inventories | 311,167 | 312,647 |
Deferred income taxes | 33,864 | 37,067 |
Prepaid expenses | 29,261 | 39,022 |
Other current assets | 14,209 | 18,031 |
Total current assets | 1,048,090 | 949,348 |
Mineral interests, net | 2,887,136 | 2,905,002 |
Property, plant and equipment, net | 1,615,419 | 1,637,552 |
Other long-term assets | 98,020 | 98,958 |
Total assets | 5,648,665 | 5,590,860 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Current debt | 15,379 | 9,210 |
Accounts payable | 72,213 | 92,712 |
Accrued expenses | 165,633 | 133,870 |
Accumulated other postretirement benefits obligation | 30,462 | 30,036 |
Other current liabilities | 225,851 | 214,073 |
Total current liabilities | 509,538 | 479,901 |
Long-term debt | 2,918,066 | 2,769,622 |
Accumulated other postretirement benefits obligation | 573,324 | 570,712 |
Deferred income taxes | 790,263 | 822,867 |
Other long-term liabilities | 187,865 | 195,064 |
Total liabilities | 4,979,056 | 4,838,166 |
Stockholders' equity: | ' | ' |
Common stock, $0.01 par value per share: Authorized-200,000,000 shares; issued- 62,623,268 and 62,577,924 shares, respectively | 626 | 626 |
Capital in excess of par value | 1,614,987 | 1,613,256 |
Accumulated deficit | -791,108 | -698,930 |
Accumulated other comprehensive loss | -154,896 | -162,258 |
Total stockholders' equity | 669,609 | 752,694 |
Total liabilities and stockholders' equity | $5,648,665 | $5,590,860 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
CONDENSED 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 | 62,623,268 | 62,577,924 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Sales | $405,229 | $489,609 |
Miscellaneous income | 8,656 | 1,734 |
Total revenues | 413,885 | 491,343 |
Costs and expenses: | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 349,875 | 420,934 |
Depreciation and depletion | 76,424 | 81,190 |
Selling, general and administrative | 20,779 | 30,674 |
Postretirement benefits | 13,869 | 14,725 |
Restructuring charges | ' | 7,440 |
Total costs and expenses | 460,947 | 554,963 |
Operating loss | -47,062 | -63,620 |
Interest expense | -79,396 | -52,618 |
Interest income | 75 | 650 |
Other income (loss) | -1,756 | 105 |
Loss before income tax benefit | -128,139 | -115,483 |
Income tax benefit | -35,961 | -66,039 |
Net loss | ($92,178) | ($49,444) |
Net loss per share: | ' | ' |
Basic (in dollars per share) | ($1.47) | ($0.79) |
Diluted (in dollars per share) | ($1.47) | ($0.79) |
Dividends per share (in dollars per share) | $0.01 | $0.13 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' |
Net loss | ($92,178) | ($49,444) |
Other comprehensive income (loss) | ' | ' |
Change in pension and postretirement benefit plans (net of tax: $2,168 and $2,882, respectively) | 3,519 | 4,659 |
Change in unrealized gain on hedges (net of tax: $1,034 and $343, respectively) | 1,679 | 722 |
Change in foreign currency translation adjustment | 2,164 | -15,625 |
Change in unrealized gain on investments | ' | 44 |
Total other comprehensive income (loss) | 7,362 | -10,200 |
Total comprehensive loss | ($84,816) | ($59,644) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' |
Change in pension and postretirement benefit plans, tax | $2,168 | $2,882 |
Change in unrealized gain on hedges, tax | $1,034 | $343 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive Loss |
In Thousands, unless otherwise specified | |||||
Balance at Dec. 31, 2013 | $752,694 | $626 | $1,613,256 | ($698,930) | ($162,258) |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net loss | -92,178 | ' | ' | -92,178 | ' |
Other comprehensive income, net of tax | 7,362 | ' | ' | ' | 7,362 |
Dividends paid, $0.01 per share | -626 | ' | -626 | ' | ' |
Stock based compensation | 2,523 | ' | 2,523 | ' | ' |
Other | -166 | ' | -166 | ' | ' |
Balance at Mar. 31, 2014 | $669,609 | $626 | $1,614,987 | ($791,108) | ($154,896) |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | ' |
Dividends paid (in dollars per share) | $0.01 |
CONDENSED_CONSOLIDATED_STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
OPERATING ACTIVITIES | ' | ' |
Net loss | ($92,178) | ($49,444) |
Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities: | ' | ' |
Depreciation and depletion | 76,424 | 81,190 |
Deferred income tax benefit | -33,369 | -61,941 |
Amortization of debt issuance costs | 18,491 | 9,982 |
Other | 6,847 | 14,922 |
Decrease (increase) in current assets: | ' | ' |
Receivables | 26,827 | -58,494 |
Inventories | 3,943 | 5,428 |
Prepaid expenses and other current assets | 9,735 | 6,502 |
Increase (decrease) in current liabilities: | ' | ' |
Accounts payable | -25,253 | 22,534 |
Accrued interest | 27,034 | 14,054 |
Accrued expenses and other current liabilities | 16,889 | -4,131 |
Cash flows provided by (used in) operating activities | 35,390 | -19,398 |
INVESTING ACTIVITIES | ' | ' |
Additions to property, plant and equipment | -12,281 | -34,027 |
Other | -151 | 1,021 |
Cash flows used in investing activities | -12,432 | -33,006 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of debt | 553,000 | 450,000 |
Borrowings under revolving credit agreement | 137,921 | 320,778 |
Repayments on revolving credit agreement | -137,921 | -320,778 |
Retirements of debt | -409,924 | -254,687 |
Dividends paid | -626 | -7,816 |
Debt issuance costs | -20,343 | -15,163 |
Other | -166 | -328 |
Cash flows provided by financing activities | 121,941 | 172,006 |
Effect of foreign exchange rates on cash | -1,002 | -412 |
Net increase in cash and cash equivalents | 143,897 | 119,190 |
Cash and cash equivalents at beginning of period | 260,818 | 116,601 |
Cash and cash equivalents at end of period | $404,715 | $235,791 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
Note 1—Basis of Presentation | |
Walter Energy, Inc., 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. | |
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2013 included in the Company's Annual Report filed on Form 10-K with the U.S. Securities and Exchange Commission. The balance sheet at December 31, 2013 has been derived from the audited consolidated financial statements for the year ended December 31, 2013 included in the Company's 2013 Annual Report filed on Form 10-K. | |
Restructuring_and_Asset_Impair
Restructuring and Asset Impairment | 3 Months Ended |
Mar. 31, 2014 | |
Restructuring and Asset Impairment | ' |
Restructuring and Asset Impairment | ' |
Note 2—Restructuring and Asset Impairment | |
In response to the depressed price environment for metallurgical coal, in the first quarter of 2013 the Company decided to curtail production at the Willow Creek mine in the Canadian and U.K. Operations segment. In connection with this curtailment, the Company recognized a restructuring charge of approximately $7.4 million, consisting of severance charges of approximately $4.4 million and contract termination costs of $3.0 million. These charges are presented as restructuring charges in the Condensed Consolidated Statements of Operations. | |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
Note 3—Inventories | ||||||||
Inventories are summarized as follows (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Coal | $ | 247,172 | $ | 238,820 | ||||
Raw materials and supplies | 63,995 | 73,827 | ||||||
| | | | | | | | |
Total inventories | $ | 311,167 | $ | 312,647 | ||||
| | | | | | | | |
| | | | | | | | |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
Note 4—Income Taxes | |
The Company estimates its annual effective tax rate based on projected financial income for the full year at the end of each interim reporting period unless projected financial income for the full year is close to break even, in which case the annual effective tax rate could distort the income tax provision for an interim period. When this happens, the Company calculates the interim income tax provision using actual year to date financial results for certain jurisdictions. This method results in an income tax provision based solely on the year to date financial taxable income or loss for those jurisdictions. In both cases, the tax effect of unusual or infrequently occurring items, including effects of changes in tax laws or rates, are reported in the interim period in which they occur. | |
For the three months ended March 31, 2014, the income tax benefit was determined based on the annual effective tax rate method. The Company recognized an income tax benefit of $36.0 million for the three months ended March 31, 2014 compared to an income tax benefit of $66.0 million for the three months ended March 31, 2013. The decrease in the income tax benefit year over year was primarily due to a full valuation allowance provided against the U.S. net deferred tax assets recorded for U.S. operating losses in the current period. The Company's effective tax rate for the three months ended March 31, 2014 and 2013 reflects the benefits of the Canadian and U.K. Operations which are taxed at statutory rates lower than the U.S. rate and the effects of additional tax losses related to foreign financing activities. | |
The Company utilizes the asset and liability method of accounting for income taxes. The Company records deferred tax assets to the extent it believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. Based upon the Company's review of all positive and negative evidence, including its three year U.S. cumulative pre-tax book loss, it concluded that a full valuation allowance should continue to be recorded against its U.S net deferred tax assets at March 31, 2014. In the future, if the Company determines that it is more likely than not that it will realize its U.S. net deferred tax assets, it will reverse the applicable portion of the valuation allowance and recognize an income tax benefit in the period in which such determination is made. | |
Debt
Debt | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Debt | ' | |||||||||||||||||||
Debt | ' | |||||||||||||||||||
Note 5—Debt | ||||||||||||||||||||
Debt consisted of the following (in thousands): | ||||||||||||||||||||
March 31, | December 31, | Weighted Average | Final | |||||||||||||||||
2014 | 2013 | Stated Interest Rate At | Maturity | |||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
2011 term loan A | $ | — | $ | 406,566 | N/A | N/A | ||||||||||||||
2011 term loan B | 978,178 | 978,178 | 7.05% | 2018 | ||||||||||||||||
Revolving credit facility(1) | — | — | N/A | 2016/2017 | ||||||||||||||||
9.875% senior notes | 500,000 | 500,000 | 9.88% | 2020 | ||||||||||||||||
8.50% senior notes | 450,000 | 450,000 | 8.50% | 2021 | ||||||||||||||||
9.50% senior secured notes | 450,000 | 450,000 | 9.50% | 2019 | ||||||||||||||||
9.50% add-on senior secured notes | 200,000 | — | 9.50% | 2019 | ||||||||||||||||
11.0% / 12.0% senior secured PIK toggle notes | 350,000 | — | 11.00% | 2020 | ||||||||||||||||
Other(2) | 30,064 | 14,876 | Various | Various | ||||||||||||||||
Debt discount, net | (24,797 | ) | (20,788 | ) | N/A | N/A | ||||||||||||||
| | | | | | | | | | | ||||||||||
Total debt | 2,933,445 | 2,778,832 | ||||||||||||||||||
Less: current debt(2) | (15,379 | ) | (9,210 | ) | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total long-term debt | $ | 2,918,066 | $ | 2,769,622 | ||||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
-1 | ||||||||||||||||||||
As of March 31, 2014, the revolving credit facility interest rate was tied to LIBOR or CDOR, plus a credit spread of 550 basis points. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
This balance includes capital lease obligations and an equipment financing agreement. | ||||||||||||||||||||
The Company's minimum debt repayment schedule, excluding interest, as of March 31, 2014 is as follows (in thousands): | ||||||||||||||||||||
Payments Due | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||
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 | ||||||||||||||
9.50% add-on senior secured notes | — | — | — | — | — | 200,000 | ||||||||||||||
11.0% / 12.0% senior secured PIK toggle notes | — | — | — | — | — | 350,000 | ||||||||||||||
Other debt | 11,703 | 12,599 | 5,762 | — | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
$ | 11,703 | $ | 12,599 | $ | 5,762 | $ | — | $ | 978,178 | $ | 1,950,000 | |||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Credit Agreement Amendment | ||||||||||||||||||||
On March 18, 2014, the Company entered into an amendment (the "Sixth Amendment") to the 2011 Credit Agreement (as amended, the "Credit Agreement") which, among other things, (i) permits the Company to repay the term loan A under its Credit Agreement without making a pro-rata repayment to the term loan B, (ii) extends the maturity of 81.6% of its revolving commitments (the "2017 Revolver") to October 2017, with such extending lenders having their revolving commitments reduced by 20%, (iii) provides for amendments to certain incurrence covenants to provide additional flexibility, (iv) eliminates the liquidity and fixed charge coverage maintenance covenants, (v) modifies the secured leverage ratio covenant, including to make it apply only to the commitments of the extending revolving lenders and (vi) provides for a 0.50% increase in the interest rate payable on the term loan B under the Credit Agreement. The Sixth Amendment also suspended the senior secured leverage ratio covenant until the aggregate amount outstanding under the Revolver exceeds 30%, or $94.1 million, of the total revolving commitment of $313.8 million, and became effective upon consummation of the offerings of the Add-on 2019 Notes (as defined below) and the Second Lien Notes (as defined below), the repayment in full of the term loan A and other customary conditions. | ||||||||||||||||||||
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 Revolving Credit Facility due 2016 (the "2016 Revolver") is 0.50% and on the 2017 Revolver is 0.625%. As of March 31, 2014, there were no borrowings outstanding under the Revolver, with $61.1 million available under the Company's $69.0 million 2016 Revolver, net of outstanding letters of credit of $7.9 million, and $209.8 million available under the Company's $244.8 million 2017 Revolver, net of outstanding letters of credit of $35.0 million, for a total availability of $270.9 million. All borrowings under the Revolver must be pro rata between the 2016 Revolver and 2017 Revolver. | ||||||||||||||||||||
9.50% Add-on Senior Secured Notes due 2019 | ||||||||||||||||||||
On March 27, 2014, the Company issued $200.0 million aggregate principal amount of 9.50% Senior Secured Notes due October 15, 2019 (the "Add-on 2019 Notes"). These notes are an addition to the $450.0 million aggregate principal amount of the Company's 9.50% Senior Secured Notes due 2019 (collectively the "First Lien Notes") which were issued on September 27, 2013 for a total principal amount of $650.0 million. The Add-on 2019 Notes are unconditionally guaranteed, jointly and severally, by each of our current and future wholly-owned domestic restricted subsidiaries that from time to time guarantee any of our indebtedness or any indebtedness of any of our restricted subsidiaries. The Add-on 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 Add-on 2019 Notes is payable semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2014. | ||||||||||||||||||||
11.0%/12.0% Senior Secured Second Lien PIK Toggle Notes due 2020 | ||||||||||||||||||||
On March 27, 2014, the Company also issued $350.0 million aggregate principal amount of 11.0%/12.0% Senior Secured Second Lien Payment-in-Kind ("PIK") Toggle Notes due April 1, 2020 (the "Second Lien Notes"). These notes are unconditionally guaranteed, jointly and severally, by each of our current and future wholly-owned domestic restricted subsidiaries that from time to time guarantee any of our indebtedness or any indebtedness of any of our restricted subsidiaries. The Second Lien Notes and the guarantees are secured on a second priority basis, equally and ratably with all future second lien obligations, on substantially all of the Company's and the guarantors property and assets, which also secure the Company's 2011 Credit Agreement and First Lien Notes on a first priority basis. Interest on these notes is payable on April 1 and October 1 of each year, commencing on October 1, 2014. | ||||||||||||||||||||
The Company may elect to pay interest on the Second Lien Notes (1) entirely in cash, at a rate of 11.0% per annum, or (2) with a combination of (i) 50% cash and 50% by increasing the principal amount of the outstanding Second Lien Notes or issuing additional Second Lien Notes ("PIK Interest") or (ii) 75% cash and 25% PIK Interest. Interest on PIK Interest accrues on the Second Lien Notes at a rate of 12.0% per annum. The Company will pay the first and last interest payments entirely in cash. | ||||||||||||||||||||
At any time prior to April 1, 2017, the Company may redeem up to 35% of the aggregate principal amount of the Second Lien Notes with the net cash proceeds of certain equity offerings, at a redemption price of 111.0% of the aggregate principal amount. The Company may redeem the Second Lien Notes, in whole or in part, prior to April 1, 2017 at a redemption price equal to 100% of the aggregate principal amount of the Second Lien Notes plus a "make-whole" premium of 1.625% and accrued and unpaid interest. The Company may redeem the Second Lien Notes, in whole or in part at redemption prices equal to 105.5% for the year commencing April 1, 2017, 102.75% for the year commencing April 1, 2018 and 100% beginning on April 1, 2019. Upon the occurrence of a change of control, unless the Company has exercised its right to redeem the Second Lien Notes, the Company will be required to offer to repurchase each holder's Second Lien Notes at a price equal to 101% of the aggregate principal amount. | ||||||||||||||||||||
Use of Proceeds | ||||||||||||||||||||
The Company utilized the net proceeds of the Add-on 2019 Notes and Second Lien Notes to repay in full its term loan A debt, increase its liquidity and pay related fees and expenses. As the term loan A debt was extinguished, the unamortized debt issuance costs of $6.7 million and the unamortized debt discount of $7.2 million were expensed and are included in interest expense in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||
Note 6—Pension and Other Postretirement Benefits | ||||||||||||||
The components of net periodic benefit cost are as follows (in thousands): | ||||||||||||||
Pension Benefits | Other Postretirement | |||||||||||||
Benefits | ||||||||||||||
For the three months | For the three months | |||||||||||||
ended March 31, | ended March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 1,701 | $ | 1,766 | $ | 1,944 | $ | 2,486 | ||||||
Interest cost | 3,348 | 3,070 | 7,726 | 7,198 | ||||||||||
Expected return on plan assets | (4,553 | ) | (4,235 | ) | — | — | ||||||||
Amortization of prior service cost | 61 | 66 | 307 | 307 | ||||||||||
Amortization of net actuarial loss | 642 | 2,434 | 3,892 | 4,734 | ||||||||||
Settlement loss | 784 | — | — | — | ||||||||||
| | | | | | | | | | | | | | |
Net periodic benefit cost | $ | 1,983 | $ | 3,101 | $ | 13,869 | $ | 14,725 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Net_Loss_Per_Share
Net Loss Per Share | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Net Loss Per Share | ' | |||||||||||||
Net Loss Per Share | ' | |||||||||||||
Note 7—Net Loss Per Share | ||||||||||||||
A reconciliation of the basic and diluted net loss per share computations for the three months ended March 31, 2014 and 2013 is as follows (in thousands, except per share data): | ||||||||||||||
For the three months ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||
Numerator: | ||||||||||||||
Net loss | $ | (92,178 | ) | $ | (92,178 | ) | $ | (49,444 | ) | $ | (49,444 | ) | ||
Denominator: | ||||||||||||||
Average number of common shares outstanding(1) | 62,601 | 62,601 | 62,599 | 62,599 | ||||||||||
| | | | | | | | | | | | | | |
Net loss per share | $ | (1.47 | ) | $ | (1.47 | ) | $ | (0.79 | ) | $ | (0.79 | ) | ||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | ||||||||||||||
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 for the three months ended March 31, 2014 and 2013 totaling 1,012,919 and 357,333, respectively, were excluded from the calculation above because their effect would have been anti-dilutive. | ||||||||||||||
The table below sets forth stock options exercised and restricted stock units vested for the three months ended March 31, 2014 and 2013: | ||||||||||||||
For the three | ||||||||||||||
months ended | ||||||||||||||
March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Stock options exercised | 9,641 | 24,831 | ||||||||||||
Restricted stock units vested | 35,703 | 16,873 | ||||||||||||
| | | | | | | | |||||||
Total | 45,344 | 41,704 | ||||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
Note 8—Commitments and Contingencies | |
Income Tax Litigation | |
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 Bankruptcy 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 IRS, 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 March 31, 2014, 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 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. Also in 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 March 31, 2014, 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 through 2012. 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 twelve months. The Company anticipates a final order will be issued by the Bankruptcy Court in 2014 settling the issues in the Proof of Claim. A final order by the Bankruptcy Court would permit a resolution of similar issues for the tax years currently in Appeals Division (2000-2008). As of March 31, 2014, the Company had $35.0 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. | |
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 Comprehensive Environmental Response, Compensation and Liability Act ("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, the EPA sent an "Offer to Conduct Work" letter to Walter Coke and four other PRP's notifying them that the 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 is 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 March 31, 2014, 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. As of March 31, 2014, 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 the 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 (the "1934 Act"), 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. On March 18, 2014, the Court stayed this litigation pending a decision by the United States Supreme Court in Halliburton Co., et al. v. Erica P. John Fund, Inc. | |
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. | |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Note 9—Derivative Financial Instruments | ||||||||||||||||||||
Interest Rate Swaps | ||||||||||||||||||||
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 was 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 was subject to change due to fluctuations in the benchmark interest rate of 1-month LIBOR. The structure of the hedge was 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 was settled during the first quarter of 2014. | ||||||||||||||||||||
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 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 in June 2014 and is being accounted for as a cash flow hedge. Upon the prepayment of term loan A, the interest rate swap became fully ineffective, and the Company reclassified $1.7 million from accumulated comprehensive income into other income (loss) in the Condensed Consolidated Statements of Operations. Future changes in the fair value of the interest rate swap will be recognized directly in earnings included in other income (loss). | ||||||||||||||||||||
Interest Rate Cap | ||||||||||||||||||||
On June 27, 2011, the Company entered into an interest rate cap agreement related to interest payments required under 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 in June 2014 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. | ||||||||||||||||||||
The following table presents the fair values of the Company's derivative instruments as well as their classification within the Condensed Consolidated Balance Sheets (in thousands). See Note 11 for additional information related to the fair values of the Company's derivative instruments. | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Asset derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||
Interest rate cap(1) | $ | — | $ | 1 | ||||||||||||||||
Liability derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||
Interest rate swaps(2) | $ | 2,066 | $ | 3,080 | ||||||||||||||||
-1 | ||||||||||||||||||||
$1 thousand was included in other current assets within the Condensed Consolidated Balance Sheets as of December 31, 2013. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
$2.1 million and $3.1 million were included within other current liabilities within the Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
The following tables present the gains and losses from derivative instruments for the three months ended March 31, 2014 and 2013 and their location within the condensed consolidated financial statements (in thousands). | ||||||||||||||||||||
Gain (loss), net of | Gain, net of tax, | Loss, net of | ||||||||||||||||||
tax, recognized in | reclassified from | tax, reclassified | ||||||||||||||||||
accumulated | accumulated | from | ||||||||||||||||||
other | other | accumulated | ||||||||||||||||||
comprehensive | comprehensive | other | ||||||||||||||||||
income (loss) | income (loss) to | comprehensive | ||||||||||||||||||
earnings(1) | income (loss) | |||||||||||||||||||
to earnings | ||||||||||||||||||||
(ineffective | ||||||||||||||||||||
portion)(2) | ||||||||||||||||||||
Three months | Three months | Three months | ||||||||||||||||||
ended March 31, | ended March 31, | ended March 31, | ||||||||||||||||||
Derivatives designated as cash flow hedging instruments | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest rate swaps | $ | 1,303 | $ | 1,340 | $ | (677 | ) | $ | (616 | ) | $ | 1,053 | $ | — | ||||||
Interest rate cap | — | (2 | ) | — | — | — | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 1,303 | $ | 1,338 | $ | (677 | ) | $ | (616 | ) | $ | 1,053 | $ | — | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | ||||||||||||||||||||
The effective portion of the interest rate swap amounts are reported within interest expense in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
The ineffective portion of the interest rate swap is reported within other income (loss) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||
Note 10—Accumulated Other Comprehensive Income (Loss) | ||||||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2014, net of tax (in thousands). | ||||||||||||||
Pension | Unrealized | Foreign | Total | |||||||||||
and other | gain/(loss) | currency | ||||||||||||
postretirement | on hedges | translation | ||||||||||||
plans | adjustment | |||||||||||||
Beginning balance as of December 31, 2013 | $ | (165,150 | ) | $ | (1,679 | ) | $ | 4,571 | $ | (162,258 | ) | |||
Other comprehensive income (loss) before reclassifications | — | 1,303 | 2,164 | 3,467 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 3,519 | 376 | — | -1 | 3,895 | |||||||||
| | | | | | | | | | | | | | |
Net current-period other comprehensive income (loss) | 3,519 | 1,679 | 2,164 | 7,362 | ||||||||||
| | | | | | | | | | | | | | |
Ending balance as of March 31, 2014 | $ | (161,631 | ) | $ | — | $ | 6,735 | $ | (154,896 | ) | ||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-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 three months ended March 31, 2014 (in thousands). | ||||||||||||||
Details about Accumulated Other | Amount Reclassified | Affected Line Item in the Condensed | ||||||||||||
Comprehensive Income (Loss) Components | from Accumulated | Consolidated Statements of Operations | ||||||||||||
Other Comprehensive | ||||||||||||||
Income (Loss) | ||||||||||||||
Gains and losses on cash flow hedges: | ||||||||||||||
Interest rate swaps | $ | (1,095 | ) | Interest expense | ||||||||||
Interest rate swaps (ineffective portion) | 1,701 | Other loss | ||||||||||||
| | | | | | |||||||||
606 | Total before tax | |||||||||||||
(230 | ) | Income tax benefit | ||||||||||||
| | | | | | |||||||||
$ | 376 | Net of tax | ||||||||||||
| | | | | | |||||||||
| | | | | | |||||||||
Amortization of pension and postretirement benefit plans: | ||||||||||||||
Prior service cost | $ | 368 | (a) | |||||||||||
Net actuarial loss | 4,534 | (a) | ||||||||||||
Settlement loss | 784 | (a) | ||||||||||||
| | | | | | |||||||||
5,686 | Total before tax | |||||||||||||
(2,167 | ) | Income tax benefit | ||||||||||||
| | | | | | |||||||||
$ | 3,519 | 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 postretirement benefit items is included in postretirement benefits within the Condensed Consolidated Statements of Operations. | ||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Note 11—Fair Value of Financial Instruments | ||||||||||||||
Fair value is defined as the price that would be received from the sale of 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 March 31, 2014 and December 31, 2013 and indicates 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. | ||||||||||||||
March 31, 2014 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Using | Total Fair | |||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Value | ||||||||||
Liabilities: | ||||||||||||||
Interest rate swaps | $ | — | $ | 2,066 | $ | — | $ | 2,066 | ||||||
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 | ||||||
The Company uses quoted dealer prices for similar contracts in active over-the-counter markets for determining fair value of Level 2 financial assets and liabilities. | ||||||||||||||
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 March 31, 2014 or December 31, 2013. The estimated fair value of the Company's debt is based on observable market data (Level 2). The carrying amounts and fair values of the Company's long-term debt (excluding capital obligations, equipment financing agreements and a discount on the Revolver of $8,010 as of March 31, 2014) are presented below (in thousands): | ||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
Amount | Value | Amount | Value | |||||||||||
2011 term loan A(1) | $ | — | $ | — | $ | 401,052 | $ | 403,517 | ||||||
2011 term loan B(2) | $ | 963,908 | $ | 943,942 | $ | 968,581 | $ | 959,838 | ||||||
9.875% senior notes(3) | $ | 496,910 | $ | 322,500 | $ | 496,831 | $ | 431,250 | ||||||
8.50% senior notes | $ | 450,000 | $ | 279,000 | $ | 450,000 | $ | 374,625 | ||||||
9.50% senior secured notes(4) | $ | 447,573 | $ | 457,875 | $ | 447,492 | $ | 474,750 | ||||||
9.50% add-on senior secured notes(5) | $ | 203,000 | $ | 203,500 | $ | — | $ | — | ||||||
11.0%/12.0% senior secured PIK toggle notes | $ | 350,000 | $ | 315,000 | $ | — | $ | — | ||||||
-1 | ||||||||||||||
Net of debt discount of $5,514 as of December 31, 2013. | ||||||||||||||
-2 | ||||||||||||||
Net of debt discount of $14,270 and $9,597 as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||
-3 | ||||||||||||||
Net of debt discount of $3,090 and $3,169 as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||
-4 | ||||||||||||||
Net of debt discount of $2,427 and $2,508 as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||
-5 | ||||||||||||||
Includes a premium of $3,000 as of March 31, 2014. | ||||||||||||||
Segment_Information
Segment Information | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Information | ' | |||||||
Segment Information | ' | |||||||
Note 12—Segment Information | ||||||||
The Company's reportable segments are strategic business units arranged geographically which have separate management teams. 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, processing and exporting metallurgical coal for the steel industry. The Other segment primarily includes unallocated corporate expenses. | ||||||||
The accounting policies of the segments are the same as those described in Note 2 of the Notes to Consolidated Financial Statements included in the Company's Annual Report filed with the Securities and Exchange Commission on Form 10-K for the fiscal year ended December 31, 2013. The Company evaluates performance primarily based on operating income of the respective business segments. | ||||||||
Summarized financial information of the Company's reportable segments is shown in the following tables (in thousands): | ||||||||
For the three months | ||||||||
ended March 31, | ||||||||
2014 | 2013 | |||||||
Revenues: | ||||||||
U.S. Operations | $ | 330,664 | $ | 339,225 | ||||
Canadian and U.K. Operations | 81,577 | 151,444 | ||||||
Other | 1,644 | 674 | ||||||
| | | | | | | | |
Total revenues | $ | 413,885 | $ | 491,343 | ||||
| | | | | | | | |
| | | | | | | | |
Segment operating income (loss): | ||||||||
U.S. Operations | $ | 5,870 | $ | (6,957 | ) | |||
Canadian and U.K. Operations | (52,618 | ) | (48,766 | ) | ||||
Other | (314 | ) | (7,897 | ) | ||||
| | | | | | | | |
Total operating loss | (47,062 | ) | (63,620 | ) | ||||
Less interest expense, net | (79,321 | ) | (51,968 | ) | ||||
Other income (loss) | (1,756 | ) | 105 | |||||
| | | | | | | | |
Loss before income tax benefit | (128,139 | ) | (115,483 | ) | ||||
Income tax benefit | (35,961 | ) | (66,039 | ) | ||||
| | | | | | | | |
Net loss | $ | (92,178 | ) | $ | (49,444 | ) | ||
| | | | | | | | |
| | | | | | | | |
Depreciation and depletion: | ||||||||
U.S. Operations | $ | 39,066 | $ | 47,473 | ||||
Canadian and U.K. Operations | 36,710 | 33,232 | ||||||
Other | 648 | 485 | ||||||
| | | | | | | | |
Total | $ | 76,424 | $ | 81,190 | ||||
| | | | | | | | |
| | | | | | | | |
Capital expenditures: | ||||||||
U.S. Operations | $ | 10,251 | $ | 27,401 | ||||
Canadian and U.K. Operations | 609 | 6,314 | ||||||
Other | 1,421 | 312 | ||||||
| | | | | | | | |
Total | $ | 12,281 | $ | 34,027 | ||||
| | | | | | | | |
| | | | | | | | |
Segment assets: | ||||||||
U.S. Operations | $ | 1,256,363 | $ | 1,265,255 | ||||
Canadian and U.K. Operations | 3,659,940 | 3,687,925 | ||||||
Other | 732,362 | 637,680 | ||||||
| | | | | | | | |
Total | $ | 5,648,665 | $ | 5,590,860 | ||||
| | | | | | | | |
| | | | | | | | |
Supplemental_Guarantor_and_Non
Supplemental Guarantor and Non-Guarantor Financial Information | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Supplemental Guarantor and Non-Guarantor Financial Information | ' | ||||||||||||||||
Supplemental Guarantor and Non-Guarantor Financial Information | ' | ||||||||||||||||
Note 13—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"), as of March 31, 2014 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 condensed 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 (UNAUDITED) | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 379,521 | $ | 48 | $ | 25,146 | $ | — | $ | 404,715 | |||||||
Receivables, net | 113,539 | 102,792 | 38,543 | — | 254,874 | ||||||||||||
Intercompany receivables | — | 188,183 | 31,526 | (219,709 | ) | — | |||||||||||
Intercompany loans receivable | 13,870 | 1,111,632 | — | (1,125,502 | ) | — | |||||||||||
Inventories | — | 137,803 | 173,364 | — | 311,167 | ||||||||||||
Deferred income taxes | 42,519 | — | 760 | (9,415 | ) | 33,864 | |||||||||||
Prepaid expenses | 1,924 | 25,073 | 2,264 | — | 29,261 | ||||||||||||
Other current assets | 11,451 | 459 | 2,299 | — | 14,209 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 562,824 | 1,565,990 | 273,902 | (1,354,626 | ) | 1,048,090 | |||||||||||
Mineral interests, net | — | 7,073 | 2,880,063 | — | 2,887,136 | ||||||||||||
Property, plant and equipment, net | 8,127 | 766,133 | 841,159 | — | 1,615,419 | ||||||||||||
Deferred income taxes | 3,046 | 17,816 | — | (20,862 | ) | — | |||||||||||
Investment in subsidiaries | 4,540,783 | 83,770 | — | (4,624,553 | ) | — | |||||||||||
Other long-term assets | 72,432 | 16,410 | 9,178 | — | 98,020 | ||||||||||||
| | | | | | | | | | | | | | | | | |
$ | 5,187,212 | $ | 2,457,192 | $ | 4,004,302 | $ | (6,000,041 | ) | $ | 5,648,665 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Current debt | $ | — | $ | 7,844 | $ | 7,535 | $ | — | $ | 15,379 | |||||||
Accounts payable | 7,505 | 40,388 | 24,320 | — | 72,213 | ||||||||||||
Accrued expenses | 64,566 | 65,103 | 35,964 | — | 165,633 | ||||||||||||
Intercompany payables | 219,709 | — | — | (219,709 | ) | — | |||||||||||
Intercompany loans payable | 1,111,632 | — | 13,870 | (1,125,502 | ) | — | |||||||||||
Accumulated other postretirement benefits obligation | 520 | 29,942 | — | — | 30,462 | ||||||||||||
Other current liabilities | 176,892 | 34,265 | 24,109 | (9,415 | ) | 225,851 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 1,580,824 | 177,542 | 105,798 | (1,354,626 | ) | 509,538 | |||||||||||
Long-term debt | 2,903,382 | 11,137 | 3,547 | — | 2,918,066 | ||||||||||||
Accumulated other postretirement benefits obligation | (138 | ) | 573,462 | — | — | 573,324 | |||||||||||
Deferred income taxes | — | — | 811,125 | (20,862 | ) | 790,263 | |||||||||||
Other long-term liabilities | 33,535 | 74,282 | 80,048 | — | 187,865 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities | 4,517,603 | 836,423 | 1,000,518 | (1,375,488 | ) | 4,979,056 | |||||||||||
Stockholders' equity | 669,609 | 1,620,769 | 3,003,784 | (4,624,553 | ) | 669,609 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and stockholders' equity | $ | 5,187,212 | $ | 2,457,192 | $ | 4,004,302 | $ | (6,000,041 | ) | $ | 5,648,665 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS (Unaudited) | |||||||||||||||||
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 STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | — | $ | 306,042 | $ | 99,187 | $ | — | $ | 405,229 | |||||||
Miscellaneous income | 655 | 1,872 | 6,129 | — | 8,656 | ||||||||||||
| | | | | | | | | | | | | | | | | |
655 | 307,914 | 105,316 | — | 413,885 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Cost and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 235,366 | 114,509 | — | 349,875 | ||||||||||||
Depreciation and depletion | 648 | 35,208 | 40,568 | — | 76,424 | ||||||||||||
Selling, general and administrative | 1,153 | 12,936 | 6,690 | — | 20,779 | ||||||||||||
Postretirement benefits | (44 | ) | 13,913 | — | — | 13,869 | |||||||||||
| | | | | | | | | | | | | | | | | |
1,757 | 297,423 | 161,767 | — | 460,947 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (1,102 | ) | 10,491 | (56,451 | ) | — | (47,062 | ) | |||||||||
Interest expense | (86,307 | ) | — | (343 | ) | 7,254 | (79,396 | ) | |||||||||
Interest income | 14 | 7,254 | 61 | (7,254 | ) | 75 | |||||||||||
Other loss | (1,700 | ) | — | (56 | ) | — | (1,756 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income tax expense (benefit) | (89,095 | ) | 17,745 | (56,789 | ) | — | (128,139 | ) | |||||||||
Income tax expense (benefit) | (18,561 | ) | 3,394 | (20,794 | ) | — | (35,961 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Equity in net losses of subsidiaries | (21,644 | ) | 21,644 | — | |||||||||||||
| | | | | | | | | | | | | | | | | |
Net income (loss) | $ | (92,178 | ) | $ | 14,351 | $ | (35,995 | ) | $ | 21,644 | $ | (92,178 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | — | $ | 314,812 | $ | 174,797 | $ | — | $ | 489,609 | |||||||
Miscellaneous income (loss) | 553 | 2,190 | (1,009 | ) | — | 1,734 | |||||||||||
| | | | | | | | | | | | | | | | | |
553 | 317,002 | 173,788 | — | 491,343 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Cost and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 247,677 | 173,257 | — | 420,934 | ||||||||||||
Depreciation and depletion | 485 | 40,410 | 40,295 | — | 81,190 | ||||||||||||
Selling, general and administrative | 6,211 | 13,333 | 11,130 | — | 30,674 | ||||||||||||
Postretirement benefits | (55 | ) | 14,780 | — | — | 14,725 | |||||||||||
Restructuring charges | — | 116 | 7,324 | — | 7,440 | ||||||||||||
| | | | | | | | | | | | | | | | | |
6,641 | 316,316 | 232,006 | — | 554,963 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (6,088 | ) | 686 | (58,218 | ) | — | (63,620 | ) | |||||||||
Interest expense | (59,167 | ) | — | (3,052 | ) | 9,601 | (52,618 | ) | |||||||||
Interest income | 1,670 | 6,980 | 1,601 | (9,601 | ) | 650 | |||||||||||
Other income | — | — | 105 | — | 105 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income tax benefit | (63,585 | ) | 7,666 | (59,564 | ) | — | (115,483 | ) | |||||||||
Income tax benefit | (26,667 | ) | (3,396 | ) | (35,976 | ) | — | (66,039 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Equity in net losses of subsidiaries | (12,526 | ) | — | — | 12,526 | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Net income (loss) | $ | (49,444 | ) | $ | 11,062 | $ | (23,588 | ) | $ | 12,526 | $ | (49,444 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE | |||||||||||||||||
INCOME (LOSS) (UNAUDITED) | |||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Net income (loss) | $ | (92,178 | ) | $ | 14,351 | $ | (35,995 | ) | $ | 21,644 | $ | (92,178 | ) | ||||
Other comprehensive income (loss): | |||||||||||||||||
Change in pension and postretirement benefit plans, net of tax | 3,519 | 3,804 | — | (3,804 | ) | 3,519 | |||||||||||
Change in unrealized gain on hedges, net of tax | 1,679 | 3 | — | (3 | ) | 1,679 | |||||||||||
Change in foreign currency translation adjustment | 2,164 | — | 2,164 | (2,164 | ) | 2,164 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total other comprehensive income | 7,362 | 3,807 | 2,164 | (5,971 | ) | 7,362 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total comprehensive income (loss) | $ | (84,816 | ) | $ | 18,158 | $ | (33,831 | ) | $ | 15,673 | $ | (84,816 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE | |||||||||||||||||
INCOME (LOSS) (UNAUDITED) | |||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Net income (loss) | $ | (49,444 | ) | $ | 11,062 | $ | (23,588 | ) | $ | 12,526 | $ | (49,444 | ) | ||||
Other comprehensive income (loss): | |||||||||||||||||
Change in pension and postretirement benefit plans, net of tax | 4,659 | — | — | — | 4,659 | ||||||||||||
Change in unrealized gain on hedges, net of tax | 722 | 21 | — | (21 | ) | 722 | |||||||||||
Change in foreign currency translation adjustment | (15,625 | ) | — | (15,625 | ) | 15,625 | (15,625 | ) | |||||||||
Change in unrealized gain on investments | 44 | — | 44 | (44 | ) | 44 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total other comprehensive income (loss) | (10,200 | ) | 21 | (15,581 | ) | 15,560 | (10,200 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Total comprehensive income (loss) | $ | (59,644 | ) | $ | 11,083 | $ | (39,169 | ) | $ | 28,086 | $ | (59,644 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) | |||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities | $ | (100,236 | ) | $ | 145,618 | $ | (9,992 | ) | $ | — | $ | 35,390 | |||||
| | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES | |||||||||||||||||
Additions to property, plant and equipment | (1,421 | ) | (9,117 | ) | (1,743 | ) | — | (12,281 | ) | ||||||||
Intercompany loans made | (2,500 | ) | — | — | 2,500 | — | |||||||||||
Other | — | — | (151 | ) | — | (151 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows used in investing activities | (3,921 | ) | (9,117 | ) | (1,894 | ) | 2,500 | (12,432 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of debt | 553,000 | — | — | — | 553,000 | ||||||||||||
Borrowings under revolving credit agreement | — | — | 137,921 | — | 137,921 | ||||||||||||
Repayments on revolving credit agreement | — | — | (137,921 | ) | — | (137,921 | ) | ||||||||||
Retirements of debt | (406,566 | ) | (1,424 | ) | (1,934 | ) | — | (409,924 | ) | ||||||||
Dividends paid | (626 | ) | — | — | — | (626 | ) | ||||||||||
Debt issuance costs | (20,343 | ) | — | — | — | (20,343 | ) | ||||||||||
Advances from (to) consolidated entities | 124,182 | (135,083 | ) | 10,901 | — | — | |||||||||||
Intercompany borrowings | — | — | 2,500 | (2,500 | ) | — | |||||||||||
Other | (119 | ) | (47 | ) | — | — | (166 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by (used in) financing activities | 249,528 | (136,554 | ) | 11,467 | (2,500 | ) | 121,941 | ||||||||||
| | | | | | | | | | | | | | | | | |
Effect of foreign exchange rates on cash | — | — | (1,002 | ) | — | (1,002 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | $ | 145,371 | $ | (53 | ) | $ | (1,421 | ) | — | $ | 143,897 | ||||||
Cash and cash equivalents at beginning of period | 234,150 | 101 | 26,567 | — | 260,818 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | 379,521 | $ | 48 | $ | 25,146 | $ | — | $ | 404,715 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) | |||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities | $ | (34,482 | ) | $ | 69,690 | $ | (54,606 | ) | $ | — | $ | (19,398 | ) | ||||
| | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES | |||||||||||||||||
Additions to property, plant and equipment | (314 | ) | (24,545 | ) | (9,168 | ) | — | (34,027 | ) | ||||||||
Intercompany notes issued | (45,591 | ) | — | — | 45,591 | — | |||||||||||
Intercompany notes proceeds | 22,000 | — | — | (22,000 | ) | — | |||||||||||
Investments in subsidiaries | (50,103 | ) | — | — | 50,103 | — | |||||||||||
Other | — | — | 1,021 | — | 1,021 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows used in investing activities | (74,008 | ) | (24,545 | ) | (8,147 | ) | 73,694 | (33,006 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of debt | 450,000 | — | — | — | 450,000 | ||||||||||||
Borrowings under revolving credit agreement | — | — | 320,778 | — | 320,778 | ||||||||||||
Repayments on revolving credit agreement | — | — | (320,778 | ) | — | (320,778 | ) | ||||||||||
Retirements of debt | (250,000 | ) | (2,588 | ) | (2,099 | ) | — | (254,687 | ) | ||||||||
Dividends paid | (7,816 | ) | — | — | — | (7,816 | ) | ||||||||||
Debt issuance costs | (15,163 | ) | — | — | — | (15,163 | ) | ||||||||||
Advances from (to) consolidated entities | 47,974 | (42,285 | ) | (5,689 | ) | — | — | ||||||||||
Intercompany notes borrowings | — | — | 45,591 | (45,591 | ) | — | |||||||||||
Intercompany notes payments | — | — | (22,000 | ) | 22,000 | — | |||||||||||
Investment from Parent | — | — | 50,103 | (50,103 | ) | — | |||||||||||
Other | (153 | ) | (175 | ) | — | — | (328 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by (used in) financing activities | 224,842 | (45,048 | ) | 65,906 | (73,694 | ) | 172,006 | ||||||||||
| | | | | | | | | | | | | | | | | |
Effect of foreign exchange rates on cash | — | — | (412 | ) | — | (412 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net increase in cash and cash equivalents | $ | 116,352 | $ | 97 | $ | 2,741 | $ | — | $ | 119,190 | |||||||
Cash and cash equivalents at beginning of period | 83,833 | 61 | 32,707 | — | 116,601 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | 200,185 | $ | 158 | $ | 35,448 | $ | — | $ | 235,791 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
Note 14—Subsequent Events | |
On April 15, 2014, the Company announced the idling of its Canadian operations, which included the Wolverine, Brule and Willow Creek mines in British Columbia, beginning in April 2014. The Company expects to incur severance charges of approximately $7.0 million in the second quarter of 2014 in connection with the idling of these mines. | |
On April 23, 2014, the Company agreed to issue an aggregate of 3,150,000 shares of its common stock, par value $0.01 per share, in exchange for $35.0 million aggregate principal of its 9.875% Senior Notes due 2020 held by a noteholder. The Company did not receive or pay any cash proceeds as a result of the exchange. Upon execution of the transaction, notes will be retired and cancelled. The Company expects to recognize a gain of approximately $12.0 million on the transaction. | |
On May 2, 2014, the Company reached an agreement in principle with the Alabama State Port Authority to sell both the Blue Creek Terminal located in the Port of Mobile and an additional parcel of more than 60 acres of land for a total consideration of $25.0 million. Additionally, the parties have agreed in principle to amend and extend the existing coal handling agreement and make certain improvements to the coal handling facility at the port. The Company anticipates recording a net loss of approximately $20.0 million in connection with the sale. | |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
Inventories are summarized as follows (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Coal | $ | 247,172 | $ | 238,820 | ||||
Raw materials and supplies | 63,995 | 73,827 | ||||||
| | | | | | | | |
Total inventories | $ | 311,167 | $ | 312,647 | ||||
| | | | | | | | |
| | | | | | | | |
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Debt | ' | |||||||||||||||||||
Schedule of debt instruments | ' | |||||||||||||||||||
Debt consisted of the following (in thousands): | ||||||||||||||||||||
March 31, | December 31, | Weighted Average | Final | |||||||||||||||||
2014 | 2013 | Stated Interest Rate At | Maturity | |||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
2011 term loan A | $ | — | $ | 406,566 | N/A | N/A | ||||||||||||||
2011 term loan B | 978,178 | 978,178 | 7.05% | 2018 | ||||||||||||||||
Revolving credit facility(1) | — | — | N/A | 2016/2017 | ||||||||||||||||
9.875% senior notes | 500,000 | 500,000 | 9.88% | 2020 | ||||||||||||||||
8.50% senior notes | 450,000 | 450,000 | 8.50% | 2021 | ||||||||||||||||
9.50% senior secured notes | 450,000 | 450,000 | 9.50% | 2019 | ||||||||||||||||
9.50% add-on senior secured notes | 200,000 | — | 9.50% | 2019 | ||||||||||||||||
11.0% / 12.0% senior secured PIK toggle notes | 350,000 | — | 11.00% | 2020 | ||||||||||||||||
Other(2) | 30,064 | 14,876 | Various | Various | ||||||||||||||||
Debt discount, net | (24,797 | ) | (20,788 | ) | N/A | N/A | ||||||||||||||
| | | | | | | | | | | ||||||||||
Total debt | 2,933,445 | 2,778,832 | ||||||||||||||||||
Less: current debt(2) | (15,379 | ) | (9,210 | ) | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total long-term debt | $ | 2,918,066 | $ | 2,769,622 | ||||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
-1 | ||||||||||||||||||||
As of March 31, 2014, the revolving credit facility interest rate was tied to LIBOR or CDOR, plus a credit spread of 550 basis points. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
This balance includes capital lease obligations and an equipment financing agreement. | ||||||||||||||||||||
Minimum debt repayment schedule, excluding interest | ' | |||||||||||||||||||
The Company's minimum debt repayment schedule, excluding interest, as of March 31, 2014 is as follows (in thousands): | ||||||||||||||||||||
Payments Due | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||
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 | ||||||||||||||
9.50% add-on senior secured notes | — | — | — | — | — | 200,000 | ||||||||||||||
11.0% / 12.0% senior secured PIK toggle notes | — | — | — | — | — | 350,000 | ||||||||||||||
Other debt | 11,703 | 12,599 | 5,762 | — | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
$ | 11,703 | $ | 12,599 | $ | 5,762 | $ | — | $ | 978,178 | $ | 1,950,000 | |||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||
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 three months | For the three months | |||||||||||||
ended March 31, | ended March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 1,701 | $ | 1,766 | $ | 1,944 | $ | 2,486 | ||||||
Interest cost | 3,348 | 3,070 | 7,726 | 7,198 | ||||||||||
Expected return on plan assets | (4,553 | ) | (4,235 | ) | — | — | ||||||||
Amortization of prior service cost | 61 | 66 | 307 | 307 | ||||||||||
Amortization of net actuarial loss | 642 | 2,434 | 3,892 | 4,734 | ||||||||||
Settlement loss | 784 | — | — | — | ||||||||||
| | | | | | | | | | | | | | |
Net periodic benefit cost | $ | 1,983 | $ | 3,101 | $ | 13,869 | $ | 14,725 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Net Loss Per Share | ' | |||||||||||||
Reconciliation of the basic and diluted net loss per share computations | ' | |||||||||||||
A reconciliation of the basic and diluted net loss per share computations for the three months ended March 31, 2014 and 2013 is as follows (in thousands, except per share data): | ||||||||||||||
For the three months ended March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||
Numerator: | ||||||||||||||
Net loss | $ | (92,178 | ) | $ | (92,178 | ) | $ | (49,444 | ) | $ | (49,444 | ) | ||
Denominator: | ||||||||||||||
Average number of common shares outstanding(1) | 62,601 | 62,601 | 62,599 | 62,599 | ||||||||||
| | | | | | | | | | | | | | |
Net loss per share | $ | (1.47 | ) | $ | (1.47 | ) | $ | (0.79 | ) | $ | (0.79 | ) | ||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | ||||||||||||||
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 for the three months ended March 31, 2014 and 2013 totaling 1,012,919 and 357,333, respectively, were excluded from the calculation above because their effect would have been anti-dilutive. | ||||||||||||||
Schedule of stock options exercised and restricted stock units vested | ' | |||||||||||||
For the three | ||||||||||||||
months ended | ||||||||||||||
March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Stock options exercised | 9,641 | 24,831 | ||||||||||||
Restricted stock units vested | 35,703 | 16,873 | ||||||||||||
| | | | | | | | |||||||
Total | 45,344 | 41,704 | ||||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
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 Condensed Consolidated Balance Sheets (in thousands). See Note 11 for additional information related to the fair values of the Company's derivative instruments. | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Asset derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||
Interest rate cap(1) | $ | — | $ | 1 | ||||||||||||||||
Liability derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||
Interest rate swaps(2) | $ | 2,066 | $ | 3,080 | ||||||||||||||||
-1 | ||||||||||||||||||||
$1 thousand was included in other current assets within the Condensed Consolidated Balance Sheets as of December 31, 2013. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
$2.1 million and $3.1 million were included within other current liabilities within the Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
Schedule of gains and losses from derivative instruments | ' | |||||||||||||||||||
The following tables present the gains and losses from derivative instruments for the three months ended March 31, 2014 and 2013 and their location within the condensed consolidated financial statements (in thousands). | ||||||||||||||||||||
Gain (loss), net of | Gain, net of tax, | Loss, net of | ||||||||||||||||||
tax, recognized in | reclassified from | tax, reclassified | ||||||||||||||||||
accumulated | accumulated | from | ||||||||||||||||||
other | other | accumulated | ||||||||||||||||||
comprehensive | comprehensive | other | ||||||||||||||||||
income (loss) | income (loss) to | comprehensive | ||||||||||||||||||
earnings(1) | income (loss) | |||||||||||||||||||
to earnings | ||||||||||||||||||||
(ineffective | ||||||||||||||||||||
portion)(2) | ||||||||||||||||||||
Three months | Three months | Three months | ||||||||||||||||||
ended March 31, | ended March 31, | ended March 31, | ||||||||||||||||||
Derivatives designated as cash flow hedging instruments | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest rate swaps | $ | 1,303 | $ | 1,340 | $ | (677 | ) | $ | (616 | ) | $ | 1,053 | $ | — | ||||||
Interest rate cap | — | (2 | ) | — | — | — | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 1,303 | $ | 1,338 | $ | (677 | ) | $ | (616 | ) | $ | 1,053 | $ | — | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | ||||||||||||||||||||
The effective portion of the interest rate swap amounts are reported within interest expense in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
The ineffective portion of the interest rate swap is reported within other income (loss) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 three months ended March 31, 2014, net of tax (in thousands). | ||||||||||||||
Pension | Unrealized | Foreign | Total | |||||||||||
and other | gain/(loss) | currency | ||||||||||||
postretirement | on hedges | translation | ||||||||||||
plans | adjustment | |||||||||||||
Beginning balance as of December 31, 2013 | $ | (165,150 | ) | $ | (1,679 | ) | $ | 4,571 | $ | (162,258 | ) | |||
Other comprehensive income (loss) before reclassifications | — | 1,303 | 2,164 | 3,467 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 3,519 | 376 | — | -1 | 3,895 | |||||||||
| | | | | | | | | | | | | | |
Net current-period other comprehensive income (loss) | 3,519 | 1,679 | 2,164 | 7,362 | ||||||||||
| | | | | | | | | | | | | | |
Ending balance as of March 31, 2014 | $ | (161,631 | ) | $ | — | $ | 6,735 | $ | (154,896 | ) | ||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-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 three months ended March 31, 2014 (in thousands). | ||||||||||||||
Details about Accumulated Other | Amount Reclassified | Affected Line Item in the Condensed | ||||||||||||
Comprehensive Income (Loss) Components | from Accumulated | Consolidated Statements of Operations | ||||||||||||
Other Comprehensive | ||||||||||||||
Income (Loss) | ||||||||||||||
Gains and losses on cash flow hedges: | ||||||||||||||
Interest rate swaps | $ | (1,095 | ) | Interest expense | ||||||||||
Interest rate swaps (ineffective portion) | 1,701 | Other loss | ||||||||||||
| | | | | | |||||||||
606 | Total before tax | |||||||||||||
(230 | ) | Income tax benefit | ||||||||||||
| | | | | | |||||||||
$ | 376 | Net of tax | ||||||||||||
| | | | | | |||||||||
| | | | | | |||||||||
Amortization of pension and postretirement benefit plans: | ||||||||||||||
Prior service cost | $ | 368 | (a) | |||||||||||
Net actuarial loss | 4,534 | (a) | ||||||||||||
Settlement loss | 784 | (a) | ||||||||||||
| | | | | | |||||||||
5,686 | Total before tax | |||||||||||||
(2,167 | ) | Income tax benefit | ||||||||||||
| | | | | | |||||||||
$ | 3,519 | 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 postretirement benefit items is included in postretirement benefits within the Condensed Consolidated Statements of Operations. | ||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||
March 31, 2014 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Using | Total Fair | |||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Value | ||||||||||
Liabilities: | ||||||||||||||
Interest rate swaps | $ | — | $ | 2,066 | $ | — | $ | 2,066 | ||||||
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 | ||||||
Schedule of carrying amounts and fair values of long-term debt (excluding capital obligations and equipment financing agreement) | ' | |||||||||||||
The carrying amounts and fair values of the Company's long-term debt (excluding capital obligations, equipment financing agreements and a discount on the Revolver of $8,010 as of March 31, 2014) are presented below (in thousands): | ||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
Amount | Value | Amount | Value | |||||||||||
2011 term loan A(1) | $ | — | $ | — | $ | 401,052 | $ | 403,517 | ||||||
2011 term loan B(2) | $ | 963,908 | $ | 943,942 | $ | 968,581 | $ | 959,838 | ||||||
9.875% senior notes(3) | $ | 496,910 | $ | 322,500 | $ | 496,831 | $ | 431,250 | ||||||
8.50% senior notes | $ | 450,000 | $ | 279,000 | $ | 450,000 | $ | 374,625 | ||||||
9.50% senior secured notes(4) | $ | 447,573 | $ | 457,875 | $ | 447,492 | $ | 474,750 | ||||||
9.50% add-on senior secured notes(5) | $ | 203,000 | $ | 203,500 | $ | — | $ | — | ||||||
11.0%/12.0% senior secured PIK toggle notes | $ | 350,000 | $ | 315,000 | $ | — | $ | — | ||||||
-1 | ||||||||||||||
Net of debt discount of $5,514 as of December 31, 2013. | ||||||||||||||
-2 | ||||||||||||||
Net of debt discount of $14,270 and $9,597 as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||
-3 | ||||||||||||||
Net of debt discount of $3,090 and $3,169 as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||
-4 | ||||||||||||||
Net of debt discount of $2,427 and $2,508 as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||
-5 | ||||||||||||||
Includes a premium of $3,000 as of March 31, 2014. | ||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Information | ' | |||||||
Summarized financial information by reportable segment | ' | |||||||
Summarized financial information of the Company's reportable segments is shown in the following tables (in thousands): | ||||||||
For the three months | ||||||||
ended March 31, | ||||||||
2014 | 2013 | |||||||
Revenues: | ||||||||
U.S. Operations | $ | 330,664 | $ | 339,225 | ||||
Canadian and U.K. Operations | 81,577 | 151,444 | ||||||
Other | 1,644 | 674 | ||||||
| | | | | | | | |
Total revenues | $ | 413,885 | $ | 491,343 | ||||
| | | | | | | | |
| | | | | | | | |
Segment operating income (loss): | ||||||||
U.S. Operations | $ | 5,870 | $ | (6,957 | ) | |||
Canadian and U.K. Operations | (52,618 | ) | (48,766 | ) | ||||
Other | (314 | ) | (7,897 | ) | ||||
| | | | | | | | |
Total operating loss | (47,062 | ) | (63,620 | ) | ||||
Less interest expense, net | (79,321 | ) | (51,968 | ) | ||||
Other income (loss) | (1,756 | ) | 105 | |||||
| | | | | | | | |
Loss before income tax benefit | (128,139 | ) | (115,483 | ) | ||||
Income tax benefit | (35,961 | ) | (66,039 | ) | ||||
| | | | | | | | |
Net loss | $ | (92,178 | ) | $ | (49,444 | ) | ||
| | | | | | | | |
| | | | | | | | |
Depreciation and depletion: | ||||||||
U.S. Operations | $ | 39,066 | $ | 47,473 | ||||
Canadian and U.K. Operations | 36,710 | 33,232 | ||||||
Other | 648 | 485 | ||||||
| | | | | | | | |
Total | $ | 76,424 | $ | 81,190 | ||||
| | | | | | | | |
| | | | | | | | |
Capital expenditures: | ||||||||
U.S. Operations | $ | 10,251 | $ | 27,401 | ||||
Canadian and U.K. Operations | 609 | 6,314 | ||||||
Other | 1,421 | 312 | ||||||
| | | | | | | | |
Total | $ | 12,281 | $ | 34,027 | ||||
| | | | | | | | |
| | | | | | | | |
Segment assets: | ||||||||
U.S. Operations | $ | 1,256,363 | $ | 1,265,255 | ||||
Canadian and U.K. Operations | 3,659,940 | 3,687,925 | ||||||
Other | 732,362 | 637,680 | ||||||
| | | | | | | | |
Total | $ | 5,648,665 | $ | 5,590,860 | ||||
| | | | | | | | |
| | | | | | | | |
Supplemental_Guarantor_and_Non1
Supplemental Guarantor and Non-Guarantor Financial Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Supplemental Guarantor and Non-Guarantor Financial Information | ' | ||||||||||||||||
Schedule of supplemental condensed consolidating balance sheets | ' | ||||||||||||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 379,521 | $ | 48 | $ | 25,146 | $ | — | $ | 404,715 | |||||||
Receivables, net | 113,539 | 102,792 | 38,543 | — | 254,874 | ||||||||||||
Intercompany receivables | — | 188,183 | 31,526 | (219,709 | ) | — | |||||||||||
Intercompany loans receivable | 13,870 | 1,111,632 | — | (1,125,502 | ) | — | |||||||||||
Inventories | — | 137,803 | 173,364 | — | 311,167 | ||||||||||||
Deferred income taxes | 42,519 | — | 760 | (9,415 | ) | 33,864 | |||||||||||
Prepaid expenses | 1,924 | 25,073 | 2,264 | — | 29,261 | ||||||||||||
Other current assets | 11,451 | 459 | 2,299 | — | 14,209 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 562,824 | 1,565,990 | 273,902 | (1,354,626 | ) | 1,048,090 | |||||||||||
Mineral interests, net | — | 7,073 | 2,880,063 | — | 2,887,136 | ||||||||||||
Property, plant and equipment, net | 8,127 | 766,133 | 841,159 | — | 1,615,419 | ||||||||||||
Deferred income taxes | 3,046 | 17,816 | — | (20,862 | ) | — | |||||||||||
Investment in subsidiaries | 4,540,783 | 83,770 | — | (4,624,553 | ) | — | |||||||||||
Other long-term assets | 72,432 | 16,410 | 9,178 | — | 98,020 | ||||||||||||
| | | | | | | | | | | | | | | | | |
$ | 5,187,212 | $ | 2,457,192 | $ | 4,004,302 | $ | (6,000,041 | ) | $ | 5,648,665 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Current debt | $ | — | $ | 7,844 | $ | 7,535 | $ | — | $ | 15,379 | |||||||
Accounts payable | 7,505 | 40,388 | 24,320 | — | 72,213 | ||||||||||||
Accrued expenses | 64,566 | 65,103 | 35,964 | — | 165,633 | ||||||||||||
Intercompany payables | 219,709 | — | — | (219,709 | ) | — | |||||||||||
Intercompany loans payable | 1,111,632 | — | 13,870 | (1,125,502 | ) | — | |||||||||||
Accumulated other postretirement benefits obligation | 520 | 29,942 | — | — | 30,462 | ||||||||||||
Other current liabilities | 176,892 | 34,265 | 24,109 | (9,415 | ) | 225,851 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 1,580,824 | 177,542 | 105,798 | (1,354,626 | ) | 509,538 | |||||||||||
Long-term debt | 2,903,382 | 11,137 | 3,547 | — | 2,918,066 | ||||||||||||
Accumulated other postretirement benefits obligation | (138 | ) | 573,462 | — | — | 573,324 | |||||||||||
Deferred income taxes | — | — | 811,125 | (20,862 | ) | 790,263 | |||||||||||
Other long-term liabilities | 33,535 | 74,282 | 80,048 | — | 187,865 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities | 4,517,603 | 836,423 | 1,000,518 | (1,375,488 | ) | 4,979,056 | |||||||||||
Stockholders' equity | 669,609 | 1,620,769 | 3,003,784 | (4,624,553 | ) | 669,609 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and stockholders' equity | $ | 5,187,212 | $ | 2,457,192 | $ | 4,004,302 | $ | (6,000,041 | ) | $ | 5,648,665 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS (Unaudited) | |||||||||||||||||
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 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Schedule of supplemental condensed consolidating statements of operations | ' | ||||||||||||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | — | $ | 306,042 | $ | 99,187 | $ | — | $ | 405,229 | |||||||
Miscellaneous income | 655 | 1,872 | 6,129 | — | 8,656 | ||||||||||||
| | | | | | | | | | | | | | | | | |
655 | 307,914 | 105,316 | — | 413,885 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Cost and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 235,366 | 114,509 | — | 349,875 | ||||||||||||
Depreciation and depletion | 648 | 35,208 | 40,568 | — | 76,424 | ||||||||||||
Selling, general and administrative | 1,153 | 12,936 | 6,690 | — | 20,779 | ||||||||||||
Postretirement benefits | (44 | ) | 13,913 | — | — | 13,869 | |||||||||||
| | | | | | | | | | | | | | | | | |
1,757 | 297,423 | 161,767 | — | 460,947 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (1,102 | ) | 10,491 | (56,451 | ) | — | (47,062 | ) | |||||||||
Interest expense | (86,307 | ) | — | (343 | ) | 7,254 | (79,396 | ) | |||||||||
Interest income | 14 | 7,254 | 61 | (7,254 | ) | 75 | |||||||||||
Other loss | (1,700 | ) | — | (56 | ) | — | (1,756 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income tax expense (benefit) | (89,095 | ) | 17,745 | (56,789 | ) | — | (128,139 | ) | |||||||||
Income tax expense (benefit) | (18,561 | ) | 3,394 | (20,794 | ) | — | (35,961 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Equity in net losses of subsidiaries | (21,644 | ) | 21,644 | — | |||||||||||||
| | | | | | | | | | | | | | | | | |
Net income (loss) | $ | (92,178 | ) | $ | 14,351 | $ | (35,995 | ) | $ | 21,644 | $ | (92,178 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | — | $ | 314,812 | $ | 174,797 | $ | — | $ | 489,609 | |||||||
Miscellaneous income (loss) | 553 | 2,190 | (1,009 | ) | — | 1,734 | |||||||||||
| | | | | | | | | | | | | | | | | |
553 | 317,002 | 173,788 | — | 491,343 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Cost and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 247,677 | 173,257 | — | 420,934 | ||||||||||||
Depreciation and depletion | 485 | 40,410 | 40,295 | — | 81,190 | ||||||||||||
Selling, general and administrative | 6,211 | 13,333 | 11,130 | — | 30,674 | ||||||||||||
Postretirement benefits | (55 | ) | 14,780 | — | — | 14,725 | |||||||||||
Restructuring charges | — | 116 | 7,324 | — | 7,440 | ||||||||||||
| | | | | | | | | | | | | | | | | |
6,641 | 316,316 | 232,006 | — | 554,963 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | (6,088 | ) | 686 | (58,218 | ) | — | (63,620 | ) | |||||||||
Interest expense | (59,167 | ) | — | (3,052 | ) | 9,601 | (52,618 | ) | |||||||||
Interest income | 1,670 | 6,980 | 1,601 | (9,601 | ) | 650 | |||||||||||
Other income | — | — | 105 | — | 105 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income tax benefit | (63,585 | ) | 7,666 | (59,564 | ) | — | (115,483 | ) | |||||||||
Income tax benefit | (26,667 | ) | (3,396 | ) | (35,976 | ) | — | (66,039 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Equity in net losses of subsidiaries | (12,526 | ) | — | — | 12,526 | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Net income (loss) | $ | (49,444 | ) | $ | 11,062 | $ | (23,588 | ) | $ | 12,526 | $ | (49,444 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Schedule of supplemental condensed consolidating statements of comprehensive income (loss) | ' | ||||||||||||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE | |||||||||||||||||
INCOME (LOSS) (UNAUDITED) | |||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Net income (loss) | $ | (92,178 | ) | $ | 14,351 | $ | (35,995 | ) | $ | 21,644 | $ | (92,178 | ) | ||||
Other comprehensive income (loss): | |||||||||||||||||
Change in pension and postretirement benefit plans, net of tax | 3,519 | 3,804 | — | (3,804 | ) | 3,519 | |||||||||||
Change in unrealized gain on hedges, net of tax | 1,679 | 3 | — | (3 | ) | 1,679 | |||||||||||
Change in foreign currency translation adjustment | 2,164 | — | 2,164 | (2,164 | ) | 2,164 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total other comprehensive income | 7,362 | 3,807 | 2,164 | (5,971 | ) | 7,362 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total comprehensive income (loss) | $ | (84,816 | ) | $ | 18,158 | $ | (33,831 | ) | $ | 15,673 | $ | (84,816 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE | |||||||||||||||||
INCOME (LOSS) (UNAUDITED) | |||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Net income (loss) | $ | (49,444 | ) | $ | 11,062 | $ | (23,588 | ) | $ | 12,526 | $ | (49,444 | ) | ||||
Other comprehensive income (loss): | |||||||||||||||||
Change in pension and postretirement benefit plans, net of tax | 4,659 | — | — | — | 4,659 | ||||||||||||
Change in unrealized gain on hedges, net of tax | 722 | 21 | — | (21 | ) | 722 | |||||||||||
Change in foreign currency translation adjustment | (15,625 | ) | — | (15,625 | ) | 15,625 | (15,625 | ) | |||||||||
Change in unrealized gain on investments | 44 | — | 44 | (44 | ) | 44 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total other comprehensive income (loss) | (10,200 | ) | 21 | (15,581 | ) | 15,560 | (10,200 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Total comprehensive income (loss) | $ | (59,644 | ) | $ | 11,083 | $ | (39,169 | ) | $ | 28,086 | $ | (59,644 | ) | ||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Schedule of supplemental condensed consolidating statement of cash flows | ' | ||||||||||||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) | |||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities | $ | (100,236 | ) | $ | 145,618 | $ | (9,992 | ) | $ | — | $ | 35,390 | |||||
| | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES | |||||||||||||||||
Additions to property, plant and equipment | (1,421 | ) | (9,117 | ) | (1,743 | ) | — | (12,281 | ) | ||||||||
Intercompany loans made | (2,500 | ) | — | — | 2,500 | — | |||||||||||
Other | — | — | (151 | ) | — | (151 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows used in investing activities | (3,921 | ) | (9,117 | ) | (1,894 | ) | 2,500 | (12,432 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of debt | 553,000 | — | — | — | 553,000 | ||||||||||||
Borrowings under revolving credit agreement | — | — | 137,921 | — | 137,921 | ||||||||||||
Repayments on revolving credit agreement | — | — | (137,921 | ) | — | (137,921 | ) | ||||||||||
Retirements of debt | (406,566 | ) | (1,424 | ) | (1,934 | ) | — | (409,924 | ) | ||||||||
Dividends paid | (626 | ) | — | — | — | (626 | ) | ||||||||||
Debt issuance costs | (20,343 | ) | — | — | — | (20,343 | ) | ||||||||||
Advances from (to) consolidated entities | 124,182 | (135,083 | ) | 10,901 | — | — | |||||||||||
Intercompany borrowings | — | — | 2,500 | (2,500 | ) | — | |||||||||||
Other | (119 | ) | (47 | ) | — | — | (166 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by (used in) financing activities | 249,528 | (136,554 | ) | 11,467 | (2,500 | ) | 121,941 | ||||||||||
| | | | | | | | | | | | | | | | | |
Effect of foreign exchange rates on cash | — | — | (1,002 | ) | — | (1,002 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | $ | 145,371 | $ | (53 | ) | $ | (1,421 | ) | — | $ | 143,897 | ||||||
Cash and cash equivalents at beginning of period | 234,150 | 101 | 26,567 | — | 260,818 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | 379,521 | $ | 48 | $ | 25,146 | $ | — | $ | 404,715 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) | |||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | ||||||||||||||
Cash flows provided by (used in) operating activities | $ | (34,482 | ) | $ | 69,690 | $ | (54,606 | ) | $ | — | $ | (19,398 | ) | ||||
| | | | | | | | | | | | | | | | | |
INVESTING ACTIVITIES | |||||||||||||||||
Additions to property, plant and equipment | (314 | ) | (24,545 | ) | (9,168 | ) | — | (34,027 | ) | ||||||||
Intercompany notes issued | (45,591 | ) | — | — | 45,591 | — | |||||||||||
Intercompany notes proceeds | 22,000 | — | — | (22,000 | ) | — | |||||||||||
Investments in subsidiaries | (50,103 | ) | — | — | 50,103 | — | |||||||||||
Other | — | — | 1,021 | — | 1,021 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows used in investing activities | (74,008 | ) | (24,545 | ) | (8,147 | ) | 73,694 | (33,006 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of debt | 450,000 | — | — | — | 450,000 | ||||||||||||
Borrowings under revolving credit agreement | — | — | 320,778 | — | 320,778 | ||||||||||||
Repayments on revolving credit agreement | — | — | (320,778 | ) | — | (320,778 | ) | ||||||||||
Retirements of debt | (250,000 | ) | (2,588 | ) | (2,099 | ) | — | (254,687 | ) | ||||||||
Dividends paid | (7,816 | ) | — | — | — | (7,816 | ) | ||||||||||
Debt issuance costs | (15,163 | ) | — | — | — | (15,163 | ) | ||||||||||
Advances from (to) consolidated entities | 47,974 | (42,285 | ) | (5,689 | ) | — | — | ||||||||||
Intercompany notes borrowings | — | — | 45,591 | (45,591 | ) | — | |||||||||||
Intercompany notes payments | — | — | (22,000 | ) | 22,000 | — | |||||||||||
Investment from Parent | — | — | 50,103 | (50,103 | ) | — | |||||||||||
Other | (153 | ) | (175 | ) | — | — | (328 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Cash flows provided by (used in) financing activities | 224,842 | (45,048 | ) | 65,906 | (73,694 | ) | 172,006 | ||||||||||
| | | | | | | | | | | | | | | | | |
Effect of foreign exchange rates on cash | — | — | (412 | ) | — | (412 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net increase in cash and cash equivalents | $ | 116,352 | $ | 97 | $ | 2,741 | $ | — | $ | 119,190 | |||||||
Cash and cash equivalents at beginning of period | 83,833 | 61 | 32,707 | — | 116,601 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | 200,185 | $ | 158 | $ | 35,448 | $ | — | $ | 235,791 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Restructuring_and_Asset_Impair1
Restructuring and Asset Impairment (Details) (Willow Creek Mine, Canadian and U.K. Operations, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2013 |
Asset impairment and restructuring | ' |
Restructuring charges | $7.40 |
Employee severance | ' |
Asset impairment and restructuring | ' |
Restructuring charges | 4.4 |
Contract termination | ' |
Asset impairment and restructuring | ' |
Restructuring charges | $3 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Coal | $247,172 | $238,820 |
Raw materials and supplies | 63,995 | 73,827 |
Total inventories | $311,167 | $312,647 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Taxes | ' | ' |
Income tax benefit | $35,961 | $66,039 |
Period of cumulative pre-tax loss | '3 years | ' |
Debt_Details
Debt (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 18, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 18, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 18, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 27, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Mar. 31, 2014 | Mar. 27, 2014 | Mar. 31, 2014 | Mar. 27, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
2011 Credit Agreement | 2011 term loan A | 2011 term loan A | 2011 term loan B | 2011 term loan B | 2011 term loan B | Revolving Credit Facility | Revolving Credit Facility | 9.875% senior notes | 9.875% senior notes | 8.50% senior notes | 8.50% senior notes | First Lien Notes | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | 9.50% add-on senior secured notes due 2019 | 9.50% add-on senior secured notes due 2019 | 11.0% / 12.0% senior secured PIK toggle notes | 11.0% / 12.0% senior secured PIK toggle notes | 11.0% / 12.0% senior secured PIK toggle notes | 11.0% / 12.0% senior secured PIK toggle notes | 11.0% / 12.0% senior secured PIK toggle notes | 11.0% / 12.0% senior secured PIK toggle notes | 11.0% / 12.0% senior secured PIK toggle notes | 11.0% / 12.0% senior secured PIK toggle notes | 11.0% / 12.0% senior secured PIK toggle notes | Other | Other | 2016 Revolver | 2017 Revolver | |||
Prior to April 1, 2017 | Year commencing April 1, 2017 | Year commencing April 1, 2018 | Beginning on April 1, 2019 | Minimum | Maximum | Maximum | |||||||||||||||||||||||||||
Prior to April 1, 2017 | |||||||||||||||||||||||||||||||||
Debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt discount, net | ($24,797,000) | ($20,788,000) | ' | ($5,514,000) | ' | ($14,270,000) | ' | ($9,597,000) | ($8,010,000) | ' | ($3,090,000) | ($3,169,000) | ' | ' | ' | ($2,427,000) | ($2,508,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | 2,933,445,000 | 2,778,832,000 | ' | ' | 406,566,000 | 978,178,000 | ' | 978,178,000 | ' | ' | 500,000,000 | 500,000,000 | 450,000,000 | 450,000,000 | ' | 450,000,000 | 450,000,000 | ' | 200,000,000 | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 30,064,000 | 14,876,000 | ' | ' |
Less current debt | -15,379,000 | -9,210,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long term debt | 2,918,066,000 | 2,769,622,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average stated interest rate (as a percent) | ' | ' | ' | ' | ' | 7.05% | ' | ' | ' | ' | 9.88% | ' | 8.50% | ' | ' | 9.50% | ' | ' | 9.50% | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.88% | ' | 8.50% | ' | ' | 9.50% | ' | ' | 9.50% | ' | ' | ' | ' | ' | ' | ' | 11.00% | 12.00% | ' | ' | ' | ' | ' |
Debt agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, description of variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR or CDOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 5.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of revolving commitments which have extended maturity | ' | ' | 81.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in percentage of revolving commitments for extending lenders | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in the interest rate payable (as a percent) | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of debt outstanding under the Revolver for the senior secured leverage ratio covenant to be applicable | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum amount of debt outstanding under the Revolver for the senior secured leverage ratio covenant to be applicable | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee on the unused portion (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 0.63% |
Availability for borrowings | ' | ' | ' | ' | ' | ' | ' | ' | 270,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,100,000 | 209,800,000 |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 313,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,000,000 | 244,800,000 |
Outstanding letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,900,000 | 35,000,000 |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 650,000,000 | ' | ' | 450,000,000 | ' | 200,000,000 | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of cash interest payable under option one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of PIK interest payable under option one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of cash interest payable under option two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of PIK interest payable under option two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PIK Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount that may be redeemed with net cash proceeds of certain equity offerings (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' |
Redemption price of debt instrument, with net cash proceeds from certain equity offerings (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 111.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price of debt instrument (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 105.50% | 102.75% | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Premium (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price of debt instrument, upon occurrence of a change in control (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized debt issuance costs expensed | ' | ' | ' | 6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized debt discount expensed | ' | ' | ' | 7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt repayment schedule, excluding interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 11,703,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,703,000 | ' | ' | ' |
2015 | 12,599,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,599,000 | ' | ' | ' |
2016 | 5,762,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,762,000 | ' | ' | ' |
2018 | 978,178,000 | ' | ' | ' | ' | 978,178,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | $1,950,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | $450,000,000 | ' | ' | $450,000,000 | ' | ' | $200,000,000 | ' | $350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Pension Benefits | ' | ' |
Components of net periodic benefit cost: | ' | ' |
Service cost | $1,701 | $1,766 |
Interest cost | 3,348 | 3,070 |
Expected return on plan assets | -4,553 | -4,235 |
Amortization of prior service cost | 61 | 66 |
Amortization of net actuarial loss | 642 | 2,434 |
Settlement loss | 784 | ' |
Net periodic benefit cost | 1,983 | 3,101 |
Other Postretirement Benefits | ' | ' |
Components of net periodic benefit cost: | ' | ' |
Service cost | 1,944 | 2,486 |
Interest cost | 7,726 | 7,198 |
Amortization of prior service cost | 307 | 307 |
Amortization of net actuarial loss | 3,892 | 4,734 |
Net periodic benefit cost | $13,869 | $14,725 |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator: | ' | ' |
Net loss | ($92,178) | ($49,444) |
Denominator: | ' | ' |
Average number of common shares outstanding, Basic | 62,601,000 | 62,599,000 |
Average number of common shares outstanding, diluted | 62,601,000 | 62,599,000 |
Net loss per share (in dollars per share) | ($1.47) | ($0.79) |
Net loss per share (in dollars per share) | ($1.47) | ($0.79) |
Effect of dilutive securities (in shares) | 0 | 0 |
Anti-dilutive securities excluded from earnings per share calculation | 1,012,919 | 357,333 |
Share-based awards exercised or released | ' | ' |
Stock options exercised | 9,641 | 24,831 |
Restricted stock units vested | 35,703 | 16,873 |
Total | 45,344 | 41,704 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2010 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | 30-May-12 | Mar. 15, 2012 | Jan. 26, 2012 | Mar. 31, 2014 |
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 | ||||
Walter Coke, Inc. | Walter Coke, Inc. | item | item | item | item | ||||
item | item | ||||||||
Commitments and contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extension period to submit proposed final order | '90 days | ' | ' | ' | ' | ' | ' | ' | ' |
Comment letter period | '30 days | '30 days | ' | ' | ' | ' | ' | ' | ' |
Accruals for unrecognized tax benefits related to disposition | ' | ' | $35 | ' | ' | ' | ' | ' | ' |
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 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (Cash flow hedging, USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2014 | Dec. 30, 2008 | Jun. 27, 2011 | Mar. 31, 2014 | Jun. 27, 2011 | |
Interest rate swap - December 2008 | Interest rate swap - June 2011 | Interest rate swap - June 2011 | Interest rate cap | ||
Fair Value of Financial Instruments | ' | ' | ' | ' | ' |
Notional value | ' | $31,500,000 | $450,000,000 | ' | $255,000,000 |
Number of monthly interest payments, hedged | ' | '62 months | ' | ' | ' |
Number of monthly interest payments | ' | '64 months | ' | ' | ' |
Debt instrument, description of variable rate basis | ' | '1-month LIBOR | '3-month LIBOR | ' | '3-month LIBOR |
Agreement period | ' | ' | '3 years | ' | '3 years |
Fixed rate (as a percent) | ' | 1.84% | 1.17% | ' | ' |
Amount reclassified from accumulated comprehensive income into other income (loss) | ($1,053,000) | ' | ' | $1,700,000 | ' |
Fixed rate (as a percent) | ' | ' | ' | ' | 2.00% |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (Designated as cash flow hedging instruments, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest rate cap | ' | ' |
Entity's derivative instruments within the consolidated balance sheets | ' | ' |
Asset derivatives | ' | $1 |
Interest rate cap | Other current assets | ' | ' |
Entity's derivative instruments within the consolidated balance sheets | ' | ' |
Asset derivatives | ' | 1 |
Interest rate swaps | ' | ' |
Entity's derivative instruments within the consolidated balance sheets | ' | ' |
Liability derivatives | 2,066 | 3,080 |
Interest rate swaps | Other current liabilities | ' | ' |
Entity's derivative instruments within the consolidated balance sheets | ' | ' |
Liability derivatives | $2,100 | $3,100 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (Derivatives designated as cash flow hedging instruments, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivatives designated as cash flow hedging instruments | ' | ' |
Gain (loss), net of tax recognized in accumulated other comprehensive income (loss) | $1,303 | $1,338 |
Gain, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings | -677 | -616 |
Loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings (ineffective portion) | 1,053 | ' |
Interest rate swaps | ' | ' |
Derivatives designated as cash flow hedging instruments | ' | ' |
Gain (loss), net of tax recognized in accumulated other comprehensive income (loss) | 1,303 | 1,340 |
Gain, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings | -677 | -616 |
Loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings (ineffective portion) | 1,053 | ' |
Interest rate cap | ' | ' |
Derivatives designated as cash flow hedging instruments | ' | ' |
Gain (loss), net of tax recognized in accumulated other comprehensive income (loss) | ' | ($2) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Changes in accumulated other comprehensive income (loss) by component | ' | ' |
Balance at the beginning of the period | ($162,258) | ' |
Other comprehensive income (loss) before reclassifications | 3,467 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,895 | ' |
Total other comprehensive income (loss) | 7,362 | -10,200 |
Balance at the end of the period | -154,896 | ' |
Pension and other postretirement plans | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' |
Balance at the beginning of the period | -165,150 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,519 | ' |
Total other comprehensive income (loss) | 3,519 | ' |
Balance at the end of the period | -161,631 | ' |
Unrealized gain/(loss) on hedges | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' |
Balance at the beginning of the period | -1,679 | ' |
Other comprehensive income (loss) before reclassifications | 1,303 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 376 | ' |
Total other comprehensive income (loss) | 1,679 | ' |
Foreign currency translation adjustment | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' |
Balance at the beginning of the period | 4,571 | ' |
Other comprehensive income (loss) before reclassifications | 2,164 | ' |
Total other comprehensive income (loss) | 2,164 | ' |
Balance at the end of the period | $6,735 | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Amounts reclassified out of each component of accumulated other comprehensive income (loss) | ' | ' |
Interest expense | $79,396 | $52,618 |
Other loss | 1,756 | -105 |
Loss before income tax benefit | 128,139 | 115,483 |
Income tax benefit | -35,961 | -66,039 |
Net loss | 92,178 | 49,444 |
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) | ' | ' |
Loss before income tax benefit | 606 | ' |
Income tax benefit | -230 | ' |
Net loss | 376 | ' |
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 expense | -1,095 | ' |
Other loss | 1,701 | ' |
Amortization of pension and 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 | 368 | ' |
Net actuarial loss | 4,534 | ' |
Settlement loss | 784 | ' |
Loss before income tax benefit | 5,686 | ' |
Income tax benefit | -2,167 | ' |
Net loss | $3,519 | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (Recurring, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level 2 | Interest rate cap | ' | ' |
Fair value information | ' | ' |
Derivative assets | ' | $1 |
Level 2 | Interest rate swaps | ' | ' |
Fair value information | ' | ' |
Derivative liabilities | 2,066 | 3,080 |
Total Fair Value | Interest rate cap | ' | ' |
Fair value information | ' | ' |
Derivative assets | ' | 1 |
Total Fair Value | Interest rate swaps | ' | ' |
Fair value information | ' | ' |
Derivative liabilities | $2,066 | $3,080 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt | ' | ' |
Debt discount | $24,797 | $20,788 |
Revolving Credit Facility | ' | ' |
Debt | ' | ' |
Debt discount | 8,010 | ' |
2011 term loan A | ' | ' |
Debt | ' | ' |
Debt discount | 5,514 | ' |
2011 term loan B | ' | ' |
Debt | ' | ' |
Debt discount | 14,270 | 9,597 |
9.875% senior notes | ' | ' |
Debt | ' | ' |
Debt discount | 3,090 | 3,169 |
9.50% senior secured notes | ' | ' |
Debt | ' | ' |
Debt discount | 2,427 | 2,508 |
9.50% add-on senior secured notes | ' | ' |
Debt | ' | ' |
Debt premium | 3,000 | ' |
Carrying Amount | Revolving Credit Facility | ' | ' |
Debt | ' | ' |
Debt | 0 | 0 |
Carrying Amount | 2011 term loan A | ' | ' |
Debt | ' | ' |
Debt | ' | 401,052 |
Carrying Amount | 2011 term loan B | ' | ' |
Debt | ' | ' |
Debt | 963,908 | 968,581 |
Carrying Amount | 9.875% senior notes | ' | ' |
Debt | ' | ' |
Debt | 496,910 | 496,831 |
Carrying Amount | 8.50% senior notes | ' | ' |
Debt | ' | ' |
Debt | 450,000 | 450,000 |
Carrying Amount | 9.50% senior secured notes | ' | ' |
Debt | ' | ' |
Debt | 447,573 | 447,492 |
Carrying Amount | 9.50% add-on senior secured notes | ' | ' |
Debt | ' | ' |
Debt | 203,000 | ' |
Carrying Amount | 11.0% / 12.0% senior secured PIK toggle notes | ' | ' |
Debt | ' | ' |
Debt | 350,000 | ' |
Fair Value | 2011 term loan A | ' | ' |
Debt | ' | ' |
Debt | ' | 403,517 |
Fair Value | 2011 term loan B | ' | ' |
Debt | ' | ' |
Debt | 943,942 | 959,838 |
Fair Value | 9.875% senior notes | ' | ' |
Debt | ' | ' |
Debt | 322,500 | 431,250 |
Fair Value | 8.50% senior notes | ' | ' |
Debt | ' | ' |
Debt | 279,000 | 374,625 |
Fair Value | 9.50% senior secured notes | ' | ' |
Debt | ' | ' |
Debt | 457,875 | 474,750 |
Fair Value | 9.50% add-on senior secured notes | ' | ' |
Debt | ' | ' |
Debt | 203,500 | ' |
Fair Value | 11.0% / 12.0% senior secured PIK toggle notes | ' | ' |
Debt | ' | ' |
Debt | $315,000 | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Revenues: | ' | ' | ' |
Total Revenues | $413,885 | $491,343 | ' |
Segment operating income (loss): | ' | ' | ' |
Total operating loss | -47,062 | -63,620 | ' |
Less interest expense, net | -79,321 | -51,968 | ' |
Other income (loss) | -1,756 | 105 | ' |
Loss before income tax benefit | -128,139 | -115,483 | ' |
Income tax benefit | -35,961 | -66,039 | ' |
Net loss | -92,178 | -49,444 | ' |
Depreciation and depletion: | ' | ' | ' |
Total depreciation and depletion | 76,424 | 81,190 | ' |
Capital expenditures: | ' | ' | ' |
Total capital expenditures | 12,281 | 34,027 | ' |
Segment assets: | ' | ' | ' |
Total Segment assets | 5,648,665 | 5,590,860 | 5,590,860 |
Operating segment | U.S. Operations | ' | ' | ' |
Revenues: | ' | ' | ' |
Total Revenues | 330,664 | 339,225 | ' |
Segment operating income (loss): | ' | ' | ' |
Total operating loss | 5,870 | -6,957 | ' |
Depreciation and depletion: | ' | ' | ' |
Total depreciation and depletion | 39,066 | 47,473 | ' |
Capital expenditures: | ' | ' | ' |
Total capital expenditures | 10,251 | 27,401 | ' |
Segment assets: | ' | ' | ' |
Total Segment assets | 1,256,363 | 1,265,255 | ' |
Operating segment | Canadian and U.K. operations | ' | ' | ' |
Revenues: | ' | ' | ' |
Total Revenues | 81,577 | 151,444 | ' |
Segment operating income (loss): | ' | ' | ' |
Total operating loss | -52,618 | -48,766 | ' |
Depreciation and depletion: | ' | ' | ' |
Total depreciation and depletion | 36,710 | 33,232 | ' |
Capital expenditures: | ' | ' | ' |
Total capital expenditures | 609 | 6,314 | ' |
Segment assets: | ' | ' | ' |
Total Segment assets | 3,659,940 | 3,687,925 | ' |
Other | ' | ' | ' |
Revenues: | ' | ' | ' |
Total Revenues | 1,644 | 674 | ' |
Segment operating income (loss): | ' | ' | ' |
Total operating loss | -314 | -7,897 | ' |
Depreciation and depletion: | ' | ' | ' |
Total depreciation and depletion | 648 | 485 | ' |
Capital expenditures: | ' | ' | ' |
Total capital expenditures | 1,421 | 312 | ' |
Segment assets: | ' | ' | ' |
Total Segment assets | $732,362 | $637,680 | ' |
Supplemental_Guarantor_and_Non2
Supplemental Guarantor and Non-Guarantor Financial Information (Details) | Mar. 31, 2014 |
2020 Notes | ' |
Debt instrument | ' |
Interest rate (as a percent) | 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 $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | $404,715 | $260,818 | $235,791 | $116,601 |
Receivables, net | 254,874 | 281,763 | ' | ' |
Inventories | 311,167 | 312,647 | ' | ' |
Deferred income taxes | 33,864 | 37,067 | ' | ' |
Prepaid expenses | 29,261 | 39,022 | ' | ' |
Other current assets | 14,209 | 18,031 | ' | ' |
Total current assets | 1,048,090 | 949,348 | ' | ' |
Mineral interests, net | 2,887,136 | 2,905,002 | ' | ' |
Property, plant and equipment, net | 1,615,419 | 1,637,552 | ' | ' |
Other long-term assets | 98,020 | 98,958 | ' | ' |
Total assets | 5,648,665 | 5,590,860 | 5,590,860 | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Current debt | 15,379 | 9,210 | ' | ' |
Accounts payable | 72,213 | 92,712 | ' | ' |
Accrued expenses | 165,633 | 133,870 | ' | ' |
Accumulated other postretirement benefits obligation | 30,462 | 30,036 | ' | ' |
Other current liabilities | 225,851 | 214,073 | ' | ' |
Total current liabilities | 509,538 | 479,901 | ' | ' |
Long-term debt | 2,918,066 | 2,769,622 | ' | ' |
Accumulated other postretirement benefits obligation | 573,324 | 570,712 | ' | ' |
Deferred income taxes | 790,263 | 822,867 | ' | ' |
Other long-term liabilities | 187,865 | 195,064 | ' | ' |
Total liabilities | 4,979,056 | 4,838,166 | ' | ' |
Total stockholders' equity | 669,609 | 752,694 | ' | ' |
Total liabilities and stockholders' equity | 5,648,665 | 5,590,860 | ' | ' |
Reportable legal entities | Parent (Issuer) | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 379,521 | 234,150 | 200,185 | 83,833 |
Receivables, net | 113,539 | 113,936 | ' | ' |
Intercompany loans receivable | 13,870 | 63,549 | ' | ' |
Deferred income taxes | 42,519 | 23,957 | ' | ' |
Prepaid expenses | 1,924 | 2,245 | ' | ' |
Other current assets | 11,451 | 15,257 | ' | ' |
Total current assets | 562,824 | 453,094 | ' | ' |
Property, plant and equipment, net | 8,127 | 7,248 | ' | ' |
Deferred income taxes | 3,046 | 3,049 | ' | ' |
Investment in subsidiaries | 4,540,783 | 4,409,683 | ' | ' |
Other long-term assets | 72,432 | 73,564 | ' | ' |
Total assets | 5,187,212 | 4,946,638 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Accounts payable | 7,505 | 5,604 | ' | ' |
Accrued expenses | 64,566 | 34,551 | ' | ' |
Intercompany payables | 219,709 | 87,904 | ' | ' |
Intercompany loans payable | 1,111,632 | 1,104,282 | ' | ' |
Accumulated other postretirement benefits obligation | 520 | 94 | ' | ' |
Other current liabilities | 176,892 | 164,364 | ' | ' |
Total current liabilities | 1,580,824 | 1,396,799 | ' | ' |
Long-term debt | 2,903,382 | 2,763,957 | ' | ' |
Accumulated other postretirement benefits obligation | -138 | 263 | ' | ' |
Other long-term liabilities | 33,535 | 32,925 | ' | ' |
Total liabilities | 4,517,603 | 4,193,944 | ' | ' |
Total stockholders' equity | 669,609 | 752,694 | ' | ' |
Total liabilities and stockholders' equity | 5,187,212 | 4,946,638 | ' | ' |
Reportable legal entities | Guarantor Subsidiaries | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 48 | 101 | 158 | 61 |
Receivables, net | 102,792 | 90,460 | ' | ' |
Intercompany receivables | 188,183 | 30,126 | ' | ' |
Intercompany loans receivable | 1,111,632 | 1,104,282 | ' | ' |
Inventories | 137,803 | 168,434 | ' | ' |
Deferred income taxes | ' | 12,154 | ' | ' |
Prepaid expenses | 25,073 | 34,011 | ' | ' |
Other current assets | 459 | 440 | ' | ' |
Total current assets | 1,565,990 | 1,440,008 | ' | ' |
Mineral interests, net | 7,073 | 7,294 | ' | ' |
Property, plant and equipment, net | 766,133 | 764,406 | ' | ' |
Deferred income taxes | 17,816 | 4,458 | ' | ' |
Investment in subsidiaries | 83,770 | 86,357 | ' | ' |
Other long-term assets | 16,410 | 10,323 | ' | ' |
Total assets | 2,457,192 | 2,312,846 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Current debt | 7,844 | 1,313 | ' | ' |
Accounts payable | 40,388 | 64,678 | ' | ' |
Accrued expenses | 65,103 | 53,582 | ' | ' |
Accumulated other postretirement benefits obligation | 29,942 | 29,942 | ' | ' |
Other current liabilities | 34,265 | 27,062 | ' | ' |
Total current liabilities | 177,542 | 176,577 | ' | ' |
Long-term debt | 11,137 | ' | ' | ' |
Accumulated other postretirement benefits obligation | 573,462 | 570,449 | ' | ' |
Other long-term liabilities | 74,282 | 73,420 | ' | ' |
Total liabilities | 836,423 | 820,446 | ' | ' |
Total stockholders' equity | 1,620,769 | 1,492,400 | ' | ' |
Total liabilities and stockholders' equity | 2,457,192 | 2,312,846 | ' | ' |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 25,146 | 26,567 | 35,448 | 32,707 |
Receivables, net | 38,543 | 77,367 | ' | ' |
Intercompany receivables | 31,526 | 57,778 | ' | ' |
Inventories | 173,364 | 144,213 | ' | ' |
Deferred income taxes | 760 | 956 | ' | ' |
Prepaid expenses | 2,264 | 2,766 | ' | ' |
Other current assets | 2,299 | 2,334 | ' | ' |
Total current assets | 273,902 | 311,981 | ' | ' |
Mineral interests, net | 2,880,063 | 2,897,708 | ' | ' |
Property, plant and equipment, net | 841,159 | 865,898 | ' | ' |
Other long-term assets | 9,178 | 15,071 | ' | ' |
Total assets | 4,004,302 | 4,090,658 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Current debt | 7,535 | 7,897 | ' | ' |
Accounts payable | 24,320 | 22,430 | ' | ' |
Accrued expenses | 35,964 | 45,737 | ' | ' |
Intercompany loans payable | 13,870 | 63,549 | ' | ' |
Other current liabilities | 24,109 | 22,647 | ' | ' |
Total current liabilities | 105,798 | 162,260 | ' | ' |
Long-term debt | 3,547 | 5,665 | ' | ' |
Deferred income taxes | 811,125 | 830,374 | ' | ' |
Other long-term liabilities | 80,048 | 88,719 | ' | ' |
Total liabilities | 1,000,518 | 1,087,018 | ' | ' |
Total stockholders' equity | 3,003,784 | 3,003,640 | ' | ' |
Total liabilities and stockholders' equity | 4,004,302 | 4,090,658 | ' | ' |
Eliminations | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Intercompany receivables | -219,709 | -87,904 | ' | ' |
Intercompany loans receivable | -1,125,502 | -1,167,831 | ' | ' |
Deferred income taxes | -9,415 | ' | ' | ' |
Total current assets | -1,354,626 | -1,255,735 | ' | ' |
Deferred income taxes | -20,862 | -7,507 | ' | ' |
Investment in subsidiaries | -4,624,553 | -4,496,040 | ' | ' |
Total assets | -6,000,041 | -5,759,282 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Intercompany payables | -219,709 | -87,904 | ' | ' |
Intercompany loans payable | -1,125,502 | -1,167,831 | ' | ' |
Other current liabilities | -9,415 | ' | ' | ' |
Total current liabilities | -1,354,626 | -1,255,735 | ' | ' |
Deferred income taxes | -20,862 | -7,507 | ' | ' |
Total liabilities | -1,375,488 | -1,263,242 | ' | ' |
Total stockholders' equity | -4,624,553 | -4,496,040 | ' | ' |
Total liabilities and stockholders' equity | ($6,000,041) | ($5,759,282) | ' | ' |
Supplemental_Guarantor_and_Non4
Supplemental Guarantor and Non-Guarantor Financial Information (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Sales | $405,229 | $489,609 |
Miscellaneous income | 8,656 | 1,734 |
Total revenues | 413,885 | 491,343 |
Cost and expenses: | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 349,875 | 420,934 |
Depreciation and depletion | 76,424 | 81,190 |
Selling, general and administrative | 20,779 | 30,674 |
Postretirement benefits | 13,869 | 14,725 |
Restructuring charges | ' | 7,440 |
Total costs and expenses | 460,947 | 554,963 |
Operating loss | -47,062 | -63,620 |
Interest expense | -79,396 | -52,618 |
Interest income | 75 | 650 |
Other loss | -1,756 | 105 |
Loss before income tax benefit | -128,139 | -115,483 |
Income tax expense (benefit) | -35,961 | -66,039 |
Net loss | -92,178 | -49,444 |
Reportable legal entities | Parent (Issuer) | ' | ' |
Revenues: | ' | ' |
Miscellaneous income | 655 | 553 |
Total revenues | 655 | 553 |
Cost and expenses: | ' | ' |
Depreciation and depletion | 648 | 485 |
Selling, general and administrative | 1,153 | 6,211 |
Postretirement benefits | -44 | -55 |
Total costs and expenses | 1,757 | 6,641 |
Operating loss | -1,102 | -6,088 |
Interest expense | -86,307 | -59,167 |
Interest income | 14 | 1,670 |
Other loss | -1,700 | ' |
Loss before income tax benefit | -89,095 | -63,585 |
Income tax expense (benefit) | -18,561 | -26,667 |
Equity in net losses of subsidiaries | -21,644 | -12,526 |
Net loss | -92,178 | -49,444 |
Reportable legal entities | Guarantor Subsidiaries | ' | ' |
Revenues: | ' | ' |
Sales | 306,042 | 314,812 |
Miscellaneous income | 1,872 | 2,190 |
Total revenues | 307,914 | 317,002 |
Cost and expenses: | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 235,366 | 247,677 |
Depreciation and depletion | 35,208 | 40,410 |
Selling, general and administrative | 12,936 | 13,333 |
Postretirement benefits | 13,913 | 14,780 |
Restructuring charges | ' | 116 |
Total costs and expenses | 297,423 | 316,316 |
Operating loss | 10,491 | 686 |
Interest income | 7,254 | 6,980 |
Loss before income tax benefit | 17,745 | 7,666 |
Income tax expense (benefit) | 3,394 | -3,396 |
Net loss | 14,351 | 11,062 |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' |
Revenues: | ' | ' |
Sales | 99,187 | 174,797 |
Miscellaneous income | 6,129 | -1,009 |
Total revenues | 105,316 | 173,788 |
Cost and expenses: | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 114,509 | 173,257 |
Depreciation and depletion | 40,568 | 40,295 |
Selling, general and administrative | 6,690 | 11,130 |
Restructuring charges | ' | 7,324 |
Total costs and expenses | 161,767 | 232,006 |
Operating loss | -56,451 | -58,218 |
Interest expense | -343 | -3,052 |
Interest income | 61 | 1,601 |
Other loss | -56 | 105 |
Loss before income tax benefit | -56,789 | -59,564 |
Income tax expense (benefit) | -20,794 | -35,976 |
Net loss | -35,995 | -23,588 |
Eliminations | ' | ' |
Cost and expenses: | ' | ' |
Interest expense | 7,254 | 9,601 |
Interest income | -7,254 | -9,601 |
Equity in net losses of subsidiaries | 21,644 | 12,526 |
Net loss | $21,644 | $12,526 |
Supplemental_Guarantor_and_Non5
Supplemental Guarantor and Non-Guarantor Financial Information (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Net income (loss) | ($92,178) | ($49,444) |
Other comprehensive income (loss) | ' | ' |
Change in pension and postretirement benefit plans, net of tax | 3,519 | 4,659 |
Change in unrealized gain on hedges, net of tax | 1,679 | 722 |
Change in foreign currency translation adjustment | 2,164 | -15,625 |
Change in unrealized gain on investments | ' | 44 |
Total other comprehensive income (loss) | 7,362 | -10,200 |
Total comprehensive loss | -84,816 | -59,644 |
Reportable legal entities | Parent (Issuer) | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Net income (loss) | -92,178 | -49,444 |
Other comprehensive income (loss) | ' | ' |
Change in pension and postretirement benefit plans, net of tax | 3,519 | 4,659 |
Change in unrealized gain on hedges, net of tax | 1,679 | 722 |
Change in foreign currency translation adjustment | 2,164 | -15,625 |
Change in unrealized gain on investments | ' | 44 |
Total other comprehensive income (loss) | 7,362 | -10,200 |
Total comprehensive loss | -84,816 | -59,644 |
Reportable legal entities | Guarantor Subsidiaries | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Net income (loss) | 14,351 | 11,062 |
Other comprehensive income (loss) | ' | ' |
Change in pension and postretirement benefit plans, net of tax | 3,804 | ' |
Change in unrealized gain on hedges, net of tax | 3 | 21 |
Total other comprehensive income (loss) | 3,807 | 21 |
Total comprehensive loss | 18,158 | 11,083 |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Net income (loss) | -35,995 | -23,588 |
Other comprehensive income (loss) | ' | ' |
Change in foreign currency translation adjustment | 2,164 | -15,625 |
Change in unrealized gain on investments | ' | 44 |
Total other comprehensive income (loss) | 2,164 | -15,581 |
Total comprehensive loss | -33,831 | -39,169 |
Eliminations | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Net income (loss) | 21,644 | 12,526 |
Other comprehensive income (loss) | ' | ' |
Change in pension and postretirement benefit plans, net of tax | -3,804 | ' |
Change in unrealized gain on hedges, net of tax | -3 | -21 |
Change in foreign currency translation adjustment | -2,164 | 15,625 |
Change in unrealized gain on investments | ' | -44 |
Total other comprehensive income (loss) | -5,971 | 15,560 |
Total comprehensive loss | $15,673 | $28,086 |
Supplemental_Guarantor_and_Non6
Supplemental Guarantor and Non-Guarantor Financial Information (Details 5) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Cash flows provided by (used in) operating activities | $35,390 | ($19,398) |
INVESTING ACTIVITIES | ' | ' |
Additions to property, plant and equipment | -12,281 | -34,027 |
Other | -151 | 1,021 |
Cash flows used in investing activities | -12,432 | -33,006 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of debt | 553,000 | 450,000 |
Borrowings under revolving credit agreement | 137,921 | 320,778 |
Repayments on revolving credit agreement | -137,921 | -320,778 |
Retirements of debt | -409,924 | -254,687 |
Dividends paid | -626 | -7,816 |
Debt issuance costs | -20,343 | -15,163 |
Other | -166 | -328 |
Cash flows provided by financing activities | 121,941 | 172,006 |
Effect of foreign exchange rates on cash | -1,002 | -412 |
Net increase in cash and cash equivalents | 143,897 | 119,190 |
Cash and cash equivalents at beginning of period | 260,818 | 116,601 |
Cash and cash equivalents at end of period | 404,715 | 235,791 |
Reportable legal entities | Parent (Issuer) | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Cash flows provided by (used in) operating activities | -100,236 | -34,482 |
INVESTING ACTIVITIES | ' | ' |
Additions to property, plant and equipment | -1,421 | -314 |
Intercompany loans made | -2,500 | -45,591 |
Intercompany notes proceeds | ' | 22,000 |
Investments in subsidiaries | ' | -50,103 |
Cash flows used in investing activities | -3,921 | -74,008 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of debt | 553,000 | 450,000 |
Retirements of debt | -406,566 | -250,000 |
Dividends paid | -626 | -7,816 |
Debt issuance costs | -20,343 | -15,163 |
Advances from (to) consolidated entities | 124,182 | 47,974 |
Other | -119 | -153 |
Cash flows provided by financing activities | 249,528 | 224,842 |
Net increase in cash and cash equivalents | 145,371 | 116,352 |
Cash and cash equivalents at beginning of period | 234,150 | 83,833 |
Cash and cash equivalents at end of period | 379,521 | 200,185 |
Reportable legal entities | Guarantor Subsidiaries | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Cash flows provided by (used in) operating activities | 145,618 | 69,690 |
INVESTING ACTIVITIES | ' | ' |
Additions to property, plant and equipment | -9,117 | -24,545 |
Cash flows used in investing activities | -9,117 | -24,545 |
FINANCING ACTIVITIES | ' | ' |
Retirements of debt | -1,424 | -2,588 |
Advances from (to) consolidated entities | -135,083 | -42,285 |
Other | -47 | -175 |
Cash flows provided by financing activities | -136,554 | -45,048 |
Net increase in cash and cash equivalents | -53 | 97 |
Cash and cash equivalents at beginning of period | 101 | 61 |
Cash and cash equivalents at end of period | 48 | 158 |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Cash flows provided by (used in) operating activities | -9,992 | -54,606 |
INVESTING ACTIVITIES | ' | ' |
Additions to property, plant and equipment | -1,743 | -9,168 |
Other | -151 | 1,021 |
Cash flows used in investing activities | -1,894 | -8,147 |
FINANCING ACTIVITIES | ' | ' |
Borrowings under revolving credit agreement | 137,921 | 320,778 |
Repayments on revolving credit agreement | -137,921 | -320,778 |
Retirements of debt | -1,934 | -2,099 |
Advances from (to) consolidated entities | 10,901 | -5,689 |
Intercompany borrowings | 2,500 | 45,591 |
Intercompany notes payments | ' | -22,000 |
Investment from Parent | ' | 50,103 |
Cash flows provided by financing activities | 11,467 | 65,906 |
Effect of foreign exchange rates on cash | -1,002 | -412 |
Net increase in cash and cash equivalents | -1,421 | 2,741 |
Cash and cash equivalents at beginning of period | 26,567 | 32,707 |
Cash and cash equivalents at end of period | 25,146 | 35,448 |
Eliminations | ' | ' |
INVESTING ACTIVITIES | ' | ' |
Intercompany loans made | 2,500 | 45,591 |
Intercompany notes proceeds | ' | -22,000 |
Investments in subsidiaries | ' | 50,103 |
Cash flows used in investing activities | 2,500 | 73,694 |
FINANCING ACTIVITIES | ' | ' |
Intercompany borrowings | -2,500 | -45,591 |
Intercompany notes payments | ' | 22,000 |
Investment from Parent | ' | -50,103 |
Cash flows provided by financing activities | ($2,500) | ($73,694) |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | 2-May-14 | 2-May-14 | Apr. 23, 2014 |
In Millions, except Share data, unless otherwise specified | 9.875% senior notes | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||
Expected | Expected | Expected | Expected | ||||
Alabama State Port Authority | Alabama State Port Authority | 9.875% senior notes | |||||
Minimum | |||||||
acre | |||||||
Subsequent Event | ' | ' | ' | ' | ' | ' | ' |
Severance charges in connection with the idling of the mines | ' | ' | ' | $7 | ' | ' | ' |
Common stock issued in exchange of debt instrument | ' | ' | ' | ' | ' | ' | 3,150,000 |
Common stock, par value per share (in dollars per share) | $0.01 | $0.01 | ' | ' | ' | ' | $0.01 |
Amount of debt exchanged | ' | ' | ' | ' | ' | ' | 35 |
Interest rate (as a percent) | ' | ' | 9.88% | ' | ' | ' | 9.88% |
Gain on exchange of debt | ' | ' | ' | ' | ' | ' | 12 |
Area of land (in acres) | ' | ' | ' | ' | ' | 60 | ' |
Total consideration | ' | ' | ' | ' | 25 | ' | ' |
Net loss | ' | ' | ' | ' | $20 | ' | ' |