Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Walter Energy, Inc. | ' |
Entity Central Index Key | '0000837173 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-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 | ' | 68,078,128 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
ASSETS | ' | ' |
Cash and cash equivalents | $614,623,000 | $260,818,000 |
Receivables, net | 217,083,000 | 281,763,000 |
Inventories | 226,074,000 | 312,647,000 |
Deferred income taxes | 30,246,000 | 37,067,000 |
Prepaid expenses | 43,320,000 | 39,022,000 |
Other current assets | 12,999,000 | 18,031,000 |
Total current assets | 1,144,345,000 | 949,348,000 |
Mineral interests, net | 2,867,569,000 | 2,905,002,000 |
Property, plant and equipment, net | 1,513,165,000 | 1,637,552,000 |
Other long-term assets | 115,433,000 | 98,958,000 |
Total assets | 5,640,512,000 | 5,590,860,000 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Current debt | 14,178,000 | 9,210,000 |
Accounts payable | 51,894,000 | 92,712,000 |
Accrued expenses | 179,673,000 | 133,870,000 |
Accumulated other postretirement benefits obligation | 31,311,000 | 30,036,000 |
Other current liabilities | 221,409,000 | 214,073,000 |
Total current liabilities | 498,465,000 | 479,901,000 |
Long-term debt | 3,176,219,000 | 2,769,622,000 |
Accumulated other postretirement benefits obligation | 576,878,000 | 570,712,000 |
Deferred income taxes | 751,565,000 | 822,867,000 |
Other long-term liabilities | 182,467,000 | 195,064,000 |
Total liabilities | 5,185,594,000 | 4,838,166,000 |
Stockholders' equity: | ' | ' |
Common stock, $0.01 par value per share: Authorized—200,000,000 shares; issued—68,078,113 and 62,577,924 shares, respectively | 681,000 | 626,000 |
Capital in excess of par value | 1,654,467,000 | 1,613,256,000 |
Accumulated deficit | -1,041,401,000 | -698,930,000 |
Accumulated deficit | -158,829,000 | -162,258,000 |
Total stockholders' equity | 454,918,000 | 752,694,000 |
Total liabilities and stockholders' equity | $5,640,512,000 | $5,590,860,000 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
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 | 68,078,113 | 62,577,924 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Sales | $319,542 | $445,937 | $1,102,753 | $1,373,344 |
Miscellaneous income | 10,004 | 9,859 | 19,029 | 15,291 |
Total revenues | 329,546 | 455,796 | 1,121,782 | 1,388,635 |
Costs and expenses: | ' | ' | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 297,925 | 395,311 | 991,561 | 1,183,861 |
Depreciation and depletion | 58,413 | 82,986 | 204,653 | 232,496 |
Selling, general and administrative | 16,598 | 21,873 | 56,379 | 79,676 |
Postretirement benefits | 13,869 | 14,707 | 41,607 | 44,157 |
Restructuring and asset impairments | -2,426 | 0 | 28,916 | 1,699 |
Total costs and expenses | 384,379 | 514,877 | 1,323,116 | 1,541,889 |
Operating loss | -54,833 | -59,081 | -201,334 | -153,254 |
Interest expense, net | -79,231 | -58,362 | -218,065 | -157,314 |
Gain (loss) on extinguishment of debt | 3,394 | -874 | 902 | -6,875 |
Other income (loss), net | 1,424 | 593 | 646 | -16 |
Loss before income tax benefit | -129,246 | -117,724 | -417,851 | -317,459 |
Income tax benefit | -30,344 | -17,000 | -75,380 | -132,799 |
Net income (loss) | ($98,902) | ($100,724) | ($342,471) | ($184,660) |
Net loss per share: | ' | ' | ' | ' |
Basic | ($1.48) | ($1.61) | ($5.27) | ($2.95) |
Diluted | ($1.48) | ($1.61) | ($5.27) | ($2.95) |
Dividends per share | $0.01 | $0.01 | $0.03 | $0.26 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | ($98,902) | ($100,724) | ($342,471) | ($184,660) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Change in pension and postretirement benefit plans (net of tax: $1,833 and $6,155 and $2,882 and $8,647 for the three and nine months ended September 30, 2014 and 2013, respectively) | 2,977 | 4,659 | 9,994 | 13,976 |
Change in unrealized gain on hedges (net of tax: $1,034 for the nine months ended September 30, 2014 and $409 and $1,076 for the three and nine months ended September 30, 2013, respectively) | 0 | 653 | 1,679 | 1,901 |
Change in foreign currency translation adjustment | -21,672 | 14,847 | -8,244 | -2,239 |
Change in unrealized loss on investments, net of tax | 0 | -940 | 0 | -897 |
Total other comprehensive income (loss) | -18,695 | 19,219 | 3,429 | 12,741 |
Total comprehensive loss | ($117,597) | ($81,505) | ($339,042) | ($171,919) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Change in pension and postretirement benefit plans, tax | $2,977 | $4,659 | $9,994 | $13,976 |
Change in unrealized gain on hedges, tax | ' | $653 | $1,679 | $1,901 |
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 income (loss) | -342,471 | 0 | 0 | -342,471 | 0 |
Other comprehensive income, net of tax | 3,429 | 0 | 0 | 0 | 3,429 |
Dividends paid, $0.03 per share | -1,944 | 0 | -1,944 | 0 | 0 |
Stock based compensation | 6,263 | 0 | 6,263 | 0 | 0 |
Issuance of common stock in connection with the extinguishment of debt | 37,142 | 55 | 37,087 | 0 | 0 |
Other | -195 | 0 | -195 | 0 | 0 |
Balance at Sep. 30, 2014 | $454,918 | $681 | $1,654,467 | ($1,041,401) | ($158,829) |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Dividends paid (in dollars per share) | $0.01 | $0.01 | $0.03 | $0.26 |
CONDENSED_CONSOLIDATED_STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Net income (loss) | ($342,471) | ($184,660) |
Adjustments to reconcile net loss to net cash flows used in operating activities: | ' | ' |
Depreciation and depletion | 204,653 | 232,496 |
Deferred income tax benefit | -70,772 | -68,426 |
Amortization of debt issuance costs | 11,920 | 14,224 |
(Gain) loss on extinguishment of debt | -902 | 6,875 |
Restructuring and asset impairments | 23,081 | 0 |
Other | 16,969 | -129 |
Decrease (increase) in current assets: | ' | ' |
Receivables | 48,578 | -48,631 |
Inventories | 74,243 | -7,274 |
Prepaid expenses and other current assets | -4,426 | 4,801 |
Increase (decrease) in current liabilities: | ' | ' |
Accounts payable | -39,588 | -1,397 |
Accrued interest | 61,126 | 30,676 |
Accrued expenses and other current liabilities | -3,197 | -22,581 |
Cash flows used in operating activities | -20,786 | -44,026 |
INVESTING ACTIVITIES | ' | ' |
Additions to property, plant and equipment | -69,733 | -108,735 |
Proceeds from sale of property, plant and equipment | 24,112 | 0 |
Proceeds from sale of investments | 0 | 1,559 |
Other | 134 | 663 |
Cash flows used in investing activities | -45,487 | -106,513 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of debt | 869,800 | 897,412 |
Retirements of debt | -418,321 | -510,255 |
Dividends paid | -1,944 | -16,264 |
Debt issuance costs | -27,748 | -42,128 |
Other | -195 | -732 |
Cash flows provided by financing activities | 421,592 | 328,033 |
Effect of foreign exchange rates on cash | -1,514 | -961 |
Net increase in cash and cash equivalents | 353,805 | 176,533 |
Cash and cash equivalents at beginning of period | 260,818 | 116,601 |
Cash and cash equivalents at beginning of period | $614,623 | $293,134 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||
Basis of Presentation | ' | |||||||||
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 of 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 and nine months ended September 30, 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. | ||||||||||
New Accounting Pronouncements | ||||||||||
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. ASU 2014-15 requires management of the Company to evaluate whether there is substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued. ASU 2014-15 is effective for public entities within annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. The implementation of the guidance is not expected to have a material impact on the Company's financial condition, results of operations, and cash flows. | ||||||||||
Revision for Gain (Loss) on Extinguishment of Debt | ||||||||||
During the quarter ended June 30, 2014, we corrected our classification of accelerated amortization of debt issuance costs that we recognized upon the extinguishment or partial extinguishment of debt to present these amounts as a component of the gain (loss) recognized upon the extinguishment of debt as one line item in the accompanying Condensed Consolidated Statements of Operations in accordance with FASB Accounting Standards Codification ("ASC") Section 470-50. Components of the gain (loss) on the extinguishment of debt were previously recognized within interest expense and other income (loss) in the accompanying Condensed Consolidated Statements of Operations. We have concluded that this revision is not material to our previously issued financial statements, as the net effect of these revisions did not impact our operating loss, net loss, stockholders' equity or cash flows. Previously reported interest expense and other income (loss) have decreased by the same amount to correct the classification and we also have elected to net interest income and interest expense. The following reflects the revisions for the relevant interim periods during 2013 (in thousands): | ||||||||||
For the three | For the nine | |||||||||
months | months | |||||||||
ended | ended | |||||||||
September 30, 2013 | September 30, 2013 | |||||||||
Interest expense, prior to revision | $ | 63,544 | $ | 169,291 | ||||||
Interest income | (15 | ) | (809 | ) | ||||||
Revision of loss on extinguishment of debt | (5,167 | ) | (11,168 | ) | ||||||
Interest expense, net, revised | $ | 58,362 | $ | 157,314 | ||||||
For the three | For the nine | |||||||||
months | months | |||||||||
ended | ended | |||||||||
September 30, 2013 | September 30, 2013 | |||||||||
Other income (loss), net | $ | 4,886 | $ | 4,277 | ||||||
Revision of loss on extinguishment of debt | (4,293 | ) | (4,293 | ) | ||||||
Other income (loss), net, revised | $ | 593 | $ | (16 | ) | |||||
Restructuring_and_Asset_Impair
Restructuring and Asset Impairments | 9 Months Ended |
Sep. 30, 2014 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | ' |
Restructuring and Asset Impairments | ' |
Restructuring and Asset Impairments | |
In the second quarter of 2014, the Company idled the Canadian Operations, which included the Wolverine, Brule and Willow Creek mines in the Canadian and U.K. Operations segment. The Wolverine Mine was placed on idle status in April 2014 and the Brazion operations (which include the operations of Brule and Willow Creek) on idle status in June 2014. For the three months ended September 30, 2014, the Company recognized a benefit of approximately $2.4 million primarily in the Canadian and U.K. Operations segment due to a revision in the estimate of severance as severance notices for some employees were rescinded during the quarter due to a change in circumstances surrounding the transportation and sale of coal. For the nine months ended September 30, 2014, the Company has recognized restructuring charges of approximately $4.7 million in the Canadian and U.K. Operations segment, $0.7 million in the U.S. Operations segment and $0.5 million in Other. For the nine months ended September 30, 2013, the Company recognized a gain of $17.0 million due to the release of a below market contract liability that was obtained through the acquisition of North River which was partially offset by asset impairment charges of approximately $8.0 million related to the accelerated closure of the North River Mine. The Company also incurred $10.7 million of costs related to the curtailment of the Willow Creek Mine for the nine months ended September 30, 2013. All of these charges are presented as restructuring and asset impairments in the Condensed Consolidated Statements of Operations. | |
Blue Creek Coal Terminal | |
On August 25, 2014, the Company completed the sale of the Blue Creek Coal Terminal and associated properties (collectively "BCCT"), located in Mobile, Alabama, to the Alabama State Port Authority for $25.0 million. Additionally, the parties amended and extended the existing coal handling agreement. The BCCT assets were part of the U.S. Operations segment. The Company recognized an impairment charge of approximately $23.1 million in the second quarter of 2014 in anticipation of the sale of the BCCT. This charge is included in restructuring and asset impairments in the Condensed Consolidated Statements of Operations. The carrying value of the BCCT assets as of December 31, 2013 was $47.5 million and was included in property, plant and equipment, net, within the Condensed Consolidated Balance Sheets. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories are summarized as follows (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Coal | $ | 168,048 | $ | 238,820 | ||||
Raw materials and supplies | 58,026 | 73,827 | ||||||
Total inventories | $ | 226,074 | $ | 312,647 | ||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
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 nine months ended September 30, 2014, the income tax benefit was determined based on the annual effective tax rate method. The Company recognized an income tax benefit of $75.4 million for the nine months ended September 30, 2014 compared with an income tax benefit of $132.8 million for the nine months ended September 30, 2013. The decrease in the income tax benefit 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 nine months ended September 30, 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 and 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 September 30, 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 | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Debt | ' | |||||||||||||||||||||||
Debt | ||||||||||||||||||||||||
Debt consisted of the following (dollars in thousands): | ||||||||||||||||||||||||
September 30, | December 31, | Weighted Average Stated Interest Rate at September 30, 2014 | Final | |||||||||||||||||||||
2014 | 2013 | Maturity | ||||||||||||||||||||||
2011 term loan A(1) | $ | — | $ | 406,566 | — | — | ||||||||||||||||||
2011 term loan B(2) | 978,178 | 978,178 | 7.25% | 2018 | ||||||||||||||||||||
Revolving credit facility(2) | — | — | — | 2016/2017 | ||||||||||||||||||||
9.875% senior notes(3) | 440,000 | 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 | ||||||||||||||||||||
9.50% add-on senior secured notes | 320,000 | — | 9.50% | 2019 | ||||||||||||||||||||
11.00% / 12.00% senior secured PIK toggle notes | 350,000 | — | 11.00% | 2020 | ||||||||||||||||||||
Other(4) | 21,877 | 14,876 | Various | Various | ||||||||||||||||||||
Debt discount, net | (19,658 | ) | (20,788 | ) | — | — | ||||||||||||||||||
Total debt | 3,190,397 | 2,778,832 | ||||||||||||||||||||||
Less: current debt(4) | (14,178 | ) | (9,210 | ) | ||||||||||||||||||||
Total long-term debt | $ | 3,176,219 | $ | 2,769,622 | ||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
-1 | On March 27, 2014, the Company issued $200.0 million 9.50% Senior Notes due 2019 and $350.0 million 11.00%/12.00% Senior Secured PIK toggle notes due 2020 and utilized the proceeds to repay in full term loan A debt, increase liquidity and pay related fees and expenses. | |||||||||||||||||||||||
-2 | As of September 30, 2014, the revolving credit facility and term loan B interest rates were tied to LIBOR or CDOR, plus a credit spread of 550 basis points for the revolving credit facility ("revolver") and 675 basis points with a minimum LIBOR floor of 100 basis points for the term loan B. | |||||||||||||||||||||||
-3 | On April 23, 2014 and August 7, 2014, the Company issued an aggregate of 3.15 million shares and 2.25 million shares of its common stock, respectively, in exchange for $35.0 million and $25.0 million of its 9.875% Senior Notes due 2020, respectively. The Company recognized a net gain of $9.9 million and $21.3 million for the three and nine months ended September 30, 2014, respectively, in gain (loss) on extinguishment of debt in the Condensed Consolidated Statements of Operations. | |||||||||||||||||||||||
-4 | Includes capital lease obligations and an equipment financing agreement. | |||||||||||||||||||||||
Credit Agreement Amendments | ||||||||||||||||||||||||
In July 2014, the Company entered into two amendments (the “Seventh Amendment” and the "Eighth Amendment") to the 2011 Credit Agreement dated as of April 1, 2011 (as amended, the “Credit Agreement”), which, among other things, modified the financial maintenance ratio to be unlimited for the quarter ended June 30, 2014 and reduced the revolver to $76.9 million, both predicated on the issuance of additional first lien notes. On July 14, 2014, the Company issued $320.0 million of 9.50% Senior Secured Notes (the “New First Lien Notes”). | ||||||||||||||||||||||||
The Company recognized expense of $6.5 million of accelerated amortization of previously capitalized debt issuance costs related to the credit agreement amendment, which is included in gain (loss) on extinguishment of debt in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||
New First Lien Notes | ||||||||||||||||||||||||
On July 14, 2014, the Company issued the New First Lien Notes. The New First Lien Notes are an addition to the $450.0 million of the Company’s 9.50% Senior Secured Notes due 2019 that were issued in September 2013 and the $200.0 million of 9.50% Senior Secured Notes due 2019 (the “Add-On 2019 Notes”) that were issued in March 2014 (collectively, the “First Lien Notes”). The First Lien Notes will mature on October 15, 2019, and interest is payable on April 15 and October 15 of each year. The next interest payment date for the First Lien Notes is April 15, 2015. | ||||||||||||||||||||||||
The First Lien Notes are unconditionally guaranteed, jointly and severally, by certain 100% owned U.S. domestic restricted subsidiaries of the Company (the "Guarantors") and are secured on a first priority basis, equally and ratably with the Company’s Credit Agreement and any future pari passu secured obligations (subject to permitted liens) on substantially all of the Company’s and the Guarantor’s property and assets, which also secure the Company’s 11.0%/12.0% Senior Secured PIK Toggle Notes due 2020 (the “Second Lien Notes”) on a second priority basis. | ||||||||||||||||||||||||
At any time prior to October 15, 2016, the Company may redeem up to 35% of the First Lien Notes with the net cash proceeds from certain equity offerings, at a redemption price of 109.50% of the principal amount. The Company may redeem the First Lien Notes, in whole or in part, prior to October 15, 2016, at a redemption price equal to 100% of the principal amount plus a “make-whole” premium. The Company may redeem the First Lien Notes, in whole or in part, at redemption prices equal to 107.125% of principal amount for the year commencing October 15, 2016, 102.375% of principal amount for the year commencing October 15, 2017 and 100% of principal amount beginning on October 15, 2018. Upon the occurrence of a change of control, unless the Company has exercised its right to redeem the First Lien Notes, the Company will be required to offer to repurchase each holder’s First Lien Notes at a price equal to 101% of the principal amount. | ||||||||||||||||||||||||
The Company's minimum debt repayment schedule, excluding interest, as of September 30, 2014 is as follows (in thousands): | ||||||||||||||||||||||||
Payments Due | ||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||||
2011 term loan B | $ | — | $ | — | $ | — | $ | — | $ | 978,178 | $ | — | ||||||||||||
9.875% senior notes | — | — | — | — | — | 440,000 | ||||||||||||||||||
8.50% senior notes | — | — | — | — | — | 450,000 | ||||||||||||||||||
9.50% senior secured notes | — | — | — | — | — | 450,000 | ||||||||||||||||||
9.50% add-on senior secured notes | — | — | — | — | — | 200,000 | ||||||||||||||||||
9.50% add-on senior secured notes | — | — | — | — | — | 320,000 | ||||||||||||||||||
11.0% / 12.0% senior secured PIK toggle notes | — | — | — | — | — | 350,000 | ||||||||||||||||||
Other | 3,580 | 12,535 | 5,762 | — | — | — | ||||||||||||||||||
$ | 3,580 | $ | 12,535 | $ | 5,762 | $ | — | $ | 978,178 | $ | 2,210,000 | |||||||||||||
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||||
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 ended | For the three months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||
Service cost | $ | 1,701 | $ | 1,766 | $ | 1,944 | $ | 2,486 | ||||||||
Interest cost | 3,316 | 3,070 | 7,726 | 7,200 | ||||||||||||
Expected return on plan assets | (4,553 | ) | (4,235 | ) | — | — | ||||||||||
Amortization of prior service cost | 61 | 66 | 307 | 307 | ||||||||||||
Amortization of net actuarial loss | 550 | 2,434 | 3,892 | 4,714 | ||||||||||||
Net periodic benefit cost | $ | 1,075 | $ | 3,101 | $ | 13,869 | $ | 14,707 | ||||||||
Pension Benefits | Other Postretirement | |||||||||||||||
Benefits | ||||||||||||||||
For the nine months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||
Service cost | $ | 5,103 | $ | 5,298 | $ | 5,832 | $ | 7,458 | ||||||||
Interest cost | 9,980 | 9,210 | 23,178 | 21,596 | ||||||||||||
Expected return on plan assets | (13,659 | ) | (12,705 | ) | — | — | ||||||||||
Amortization of prior service cost | 183 | 198 | 921 | 921 | ||||||||||||
Amortization of net actuarial loss | 1,742 | 7,302 | 11,676 | 14,182 | ||||||||||||
Settlement loss | 1,627 | — | — | — | ||||||||||||
Net periodic benefit cost | $ | 4,976 | $ | 9,303 | $ | 41,607 | $ | 44,157 | ||||||||
Net_Loss_Per_Share
Net Loss Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Loss Per Share | ' | |||||||||||||||
Net Loss Per Share | ||||||||||||||||
A reconciliation of the basic and diluted net loss per share computations for the three and nine months ended September 30, 2014 and 2013 is as follows (in thousands, except per share data): | ||||||||||||||||
For the three months ended | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (98,902 | ) | $ | (98,902 | ) | $ | (100,724 | ) | $ | (100,724 | ) | ||||
Denominator: | ||||||||||||||||
Average number of common shares outstanding(1) | 66,952 | 66,952 | 62,573 | 62,573 | ||||||||||||
Net loss per share | $ | (1.48 | ) | $ | (1.48 | ) | $ | (1.61 | ) | $ | (1.61 | ) | ||||
For the nine months ended September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (342,471 | ) | $ | (342,471 | ) | $ | (184,660 | ) | $ | (184,660 | ) | ||||
Denominator: | ||||||||||||||||
Average number of common shares outstanding(1) | 64,986 | 64,986 | 62,555 | 62,555 | ||||||||||||
Net loss per share | $ | (5.27 | ) | $ | (5.27 | ) | $ | (2.95 | ) | $ | (2.95 | ) | ||||
_______________________________________________________________________________ | ||||||||||||||||
-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 September 30, 2014 and 2013 totaling 1,727 and 675, respectively, were excluded from the calculation above because their effect would have been anti-dilutive. Additionally, the weighted average number of stock options and restricted stock units outstanding for the nine months ended September 30, 2014 and 2013 totaling 1,437 and 525, respectively, were excluded from the calculation above because their effect would have been anti-dilutive. | |||||||||||||||
The tables below sets forth stock options exercised and restricted stock units vested for the three and nine months ended September 30, 2014 and 2013: | ||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options exercised | — | — | 18,300 | 24,831 | ||||||||||||
Restricted stock units vested | 3,337 | 4,558 | 81,889 | 30,234 | ||||||||||||
Total | 3,337 | 4,558 | 100,189 | 55,065 | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
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. As of September 30, 2014, both parties are still reviewing the litigation issues in order 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 audits of the Company's federal income tax returns for the years ended May 31, 2000 through December 31, 2005 and December 31, 2006 through December 31, 2008. The IRS issued 30-Day Letters to the Company in June 2010 and July 2012, 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 2008 audit periods. As of September 30, 2014, the IRS Appeals Office has returned these tax periods to IRS Examination Division to be placed into suspense pending the resolution of the tax periods that are in the U.S. Bankruptcy Court. The disputed issues in these audit periods 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 the 2009 through 2012 tax years. 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 the near future 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 under IRS Exam (2000-2012). As of September 30, 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 ("35th Avenue Superfund Site") be classified and managed as a Superfund site under Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), allowing other Potentially Responsible Parties (PRPs) 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 PRPs 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 PRPs an opportunity to cleanup 50 Phase I properties. The Company has notified the EPA that it has declined the Offer to Conduct Work. In July 2014, the Jefferson County Department of Health ("JCDH") said there are no apparent health risks to individuals living in North Birmingham. In August 2014, the EPA sent an “Offer to Conduct Work” letter to Walter Coke and five other PRPs and offered the PRPs an opportunity to cleanup 30 Phase II properties. The Company has notified the EPA that it has declined the Offer to Conduct Work. In September 2014, the EPA proposed to add the 35th Avenue Superfund Site to the National Priorities List ("NPL"). Proposed NPL sites are subject to a 60-day public comment period. The EPA will accept written comments on the NPL proposal through November 21, 2014. | |
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 September 30, 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 September 30, 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-1391) 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. On September 30, 2014, the case was dismissed without prejudice. However, the Order provides that either party may move for reinstatement before the earlier of (i) 6 months of the EPA’s issuance of a Record of Decision for the 35th Avenue Superfund Site, or (ii) 5 years after the date of the Order. Reinstatement also causes the reinstated claims to relate back to the original date of filing. | |
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. The parties are now in the process of discovery. Plaintiffs filed a motion for class certification on August 15, 2013. On March 18, 2014, the Court denied Plaintiffs' motion for class certification without prejudice to refiling and rebriefing and stayed this litigation pending a decision by the United States Supreme Court in Halliburton Co., et al. v. Erica P. John Fund, Inc. ("Halliburton II"). Following the U.S. Supreme Court's decision in Halliburton II on June 23, 2014, Plaintiffs filed a renewed motion for class certification on August 29, 2014. Defendants' opposition to Plaintiffs' renewed class certification was due October 28, 2014, and Plaintiffs' Reply is due December 19, 2014. All other deadlines have been stayed by the Court. | |
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 | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||||||
Interest Rate Swaps | ||||||||||||||||||||||||
On June 27, 2011, the Company entered into an interest rate swap agreement with a notional value of $450.0 million. The objective of the swap was 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 was 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 was settled upon maturity in July 2014 and was accounted for as a cash flow hedge. Changes in the fair value of the effective portion of the hedge were reported in accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods in which the hedged transactions affected earnings. The Company recognized income of $1.1 million related to the effective portion of the hedge for the nine months ended September 30, 2014 in interest expense, net in the Condensed Consolidated Statements of Operations. Upon the prepayment of term loan A in the first quarter of 2014, the interest rate swap became fully ineffective. The ineffective portion of the change in the fair value of the hedge is recognized directly in earnings. The Company recognized income of approximately $1.0 million and $0.3 million for the three and nine months ended September 30, 2014, respectively, related to the ineffective portion of the hedge and the mark-to-market gain from the settlement in other income (loss) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||
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 was 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 was 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 was settled upon maturity in July 2014 and was accounted for as a cash flow hedge. Changes in the fair value of the hedge were reported in accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affected 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 as of December 31, 2013 (in thousands, except amounts in footnotes to the table). There were no outstanding derivative instruments as of September 30, 2014. See Note 11 for additional information related to the fair values of the Company's derivative instruments. | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
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) | $ | 3,080 | ||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
-1 | $1 thousand was included in other current assets within the Condensed Consolidated Balance Sheet as of December 31, 2013. | |||||||||||||||||||||||
-2 | $3.1 million was included within other current liabilities within the Condensed Consolidated Balance Sheet as of December 31, 2013. | |||||||||||||||||||||||
The following tables present the gains and losses from derivative instruments for the three and nine months ended September 30, 2014 and 2013 and their location within the condensed consolidated financial statements (in thousands). | ||||||||||||||||||||||||
Gain (loss), | Gain, net of | Loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings (ineffective portion) (2) | ||||||||||||||||||||||
net of tax, | tax, reclassified | |||||||||||||||||||||||
recognized in | from | |||||||||||||||||||||||
accumulated | accumulated | |||||||||||||||||||||||
other | other | |||||||||||||||||||||||
comprehensive | comprehensive | |||||||||||||||||||||||
income (loss) | income (loss) | |||||||||||||||||||||||
to earnings(1) | ||||||||||||||||||||||||
Three months | Three months | Three months | ||||||||||||||||||||||
ended | ended | ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Interest rate swaps | $ | — | $ | 1,057 | $ | — | $ | (636 | ) | $ | — | $ | 235 | |||||||||||
Interest rate cap | — | (3 | ) | — | — | — | — | |||||||||||||||||
Total | $ | — | $ | 1,054 | $ | — | $ | (636 | ) | $ | — | $ | 235 | |||||||||||
Gain (loss), net of | Gain, net of tax, | Loss, net of tax, | ||||||||||||||||||||||
tax, recognized in | reclassified from | reclassified from | ||||||||||||||||||||||
accumulated other | accumulated other | accumulated | ||||||||||||||||||||||
comprehensive | comprehensive | other | ||||||||||||||||||||||
income (loss) | income (loss) to | comprehensive | ||||||||||||||||||||||
earnings(1) | income (loss) | |||||||||||||||||||||||
to earnings | ||||||||||||||||||||||||
(ineffective | ||||||||||||||||||||||||
portion)(2) | ||||||||||||||||||||||||
Nine months ended | Nine months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Interest rate swaps | $ | 1,303 | $ | 3,538 | $ | (677 | ) | $ | (1,866 | ) | $ | 1,053 | $ | 235 | ||||||||||
Interest rate cap | — | (6 | ) | — | — | — | — | |||||||||||||||||
Total | $ | 1,303 | $ | 3,532 | $ | (677 | ) | $ | (1,866 | ) | $ | 1,053 | $ | 235 | ||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
-1 | The effective portion of the interest rate swap amounts are reported within interest expense, net 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) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2014, net of tax (in thousands). | ||||||||||||||||
Pension and | Unrealized | Foreign | Total | |||||||||||||
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 | (8,244 | ) | (6,941 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 9,994 | 376 | —(1) | 10,370 | ||||||||||||
Net current-period other comprehensive income (loss) | 9,994 | 1,679 | (8,244 | ) | 3,429 | |||||||||||
Ending balance as of September 30, 2014 | $ | (155,156 | ) | $ | — | $ | (3,673 | ) | $ | (158,829 | ) | |||||
_______________________________________________________________________________ | ||||||||||||||||
-1 | Foreign currency translation adjustments are reclassified from accumulated other comprehensive income (loss) to earnings 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 nine months ended September 30, 2014 (in thousands). | ||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified | Affected Line Item in the | ||||||||||||||
from Accumulated | Condensed Consolidated | |||||||||||||||
Other Comprehensive | Statements of Operations | |||||||||||||||
Income (Loss) | ||||||||||||||||
Gains and losses on cash flow hedges: | ||||||||||||||||
Interest rate swaps (effective portion) | $ | (1,095 | ) | Interest expense, net | ||||||||||||
Interest rate swaps (ineffective portion) | 1,701 | Other income (loss), net | ||||||||||||||
606 | Total before tax | |||||||||||||||
(230 | ) | Income tax benefit | ||||||||||||||
$ | 376 | Net of tax | ||||||||||||||
Amortization of pension and postretirement benefit plans: | ||||||||||||||||
Prior service cost | $ | 1,104 | (a) | |||||||||||||
Net actuarial loss | 13,418 | (a) | ||||||||||||||
Settlement loss | 1,627 | (a) | ||||||||||||||
16,149 | Total before tax | |||||||||||||||
(6,155 | ) | Income tax benefit | ||||||||||||||
$ | 9,994 | Net of tax | ||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||
(a) | Amortization of pension benefit items are included in cost of sales (exclusive of depreciation and depletion) and selling, general and administrative expense while amortization of postretirement benefit items are included in postretirement benefits within the Condensed Consolidated Statements of Operations. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
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 December 31, 2013 and indicates the fair value hierarchy of the valuation techniques utilized to determine such values. The Company had no assets or liabilities measured at fair value on a recurring basis as of September 30, 2014. For some assets, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When this is the case, the asset is categorized based on the level of the most significant input to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and considers factors specific to the assets being valued. | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Fair Value | ||||||||||||||||
Measurements Using | Total | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair 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 September 30, 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 lease obligations, equipment financing agreements and a discount on the revolver of $1,683 as of September 30, 2014) are presented below (in thousands): | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
2011 term loan A(1) | $ | — | $ | — | $ | 401,052 | $ | 403,517 | ||||||||
2011 term loan B(2) | $ | 965,476 | $ | 868,867 | $ | 968,581 | $ | 959,838 | ||||||||
9.875% senior notes(3) | $ | 437,425 | $ | 140,800 | $ | 496,831 | $ | 431,250 | ||||||||
8.50% senior notes | $ | 450,000 | $ | 130,500 | $ | 450,000 | $ | 374,625 | ||||||||
9.50% senior secured notes(4) | $ | 447,741 | $ | 405,000 | $ | 447,492 | $ | 474,750 | ||||||||
9.50% add-on senior secured notes(5) | $ | 202,660 | $ | 180,000 | $ | — | $ | — | ||||||||
9.50% add-on senior secured notes(6) | $ | 316,901 | $ | 288,000 | $ | — | $ | — | ||||||||
11.0%/12.0% senior secured PIK toggle notes | $ | 350,000 | $ | 162,750 | $ | — | $ | — | ||||||||
_______________________________________________________________________________ | ||||||||||||||||
-1 | Net of debt discount of $5,514 as of December 31, 2013. | |||||||||||||||
-2 | Net of debt discount of $12,702 and $9,597 as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||
-3 | Net of debt discount of $2,575 and $3,169 as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||
-4 | Net of debt discount of $2,259 and $2,508 as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||
-5 | Includes a premium of $2,660 as of September 30, 2014. | |||||||||||||||
-6 | Net of debt discount of $3,099 as of September 30, 2014. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
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 | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
U.S. Operations | $ | 282,356 | $ | 337,269 | $ | 911,705 | $ | 997,503 | ||||||||
Canadian and U.K. Operations | 46,355 | 119,367 | 206,976 | 390,684 | ||||||||||||
Other | 835 | (840 | ) | 3,101 | 448 | |||||||||||
Total revenues | $ | 329,546 | $ | 455,796 | $ | 1,121,782 | $ | 1,388,635 | ||||||||
Segment operating income (loss): | ||||||||||||||||
U.S. Operations | $ | (26,837 | ) | $ | (8,008 | ) | $ | (51,376 | ) | $ | 22,368 | |||||
Canadian and U.K. Operations | (26,598 | ) | (48,022 | ) | (145,642 | ) | (163,135 | ) | ||||||||
Other | (1,398 | ) | (3,051 | ) | (4,316 | ) | (12,487 | ) | ||||||||
Total operating loss | (54,833 | ) | (59,081 | ) | (201,334 | ) | (153,254 | ) | ||||||||
Interest expense, net | (79,231 | ) | (58,362 | ) | (218,065 | ) | (157,314 | ) | ||||||||
Gain (loss) on extinguishment of debt | 3,394 | (874 | ) | 902 | (6,875 | ) | ||||||||||
Other income (loss), net | 1,424 | 593 | 646 | (16 | ) | |||||||||||
Loss before income tax benefit | (129,246 | ) | (117,724 | ) | (417,851 | ) | (317,459 | ) | ||||||||
Income tax benefit | (30,344 | ) | (17,000 | ) | (75,380 | ) | (132,799 | ) | ||||||||
Net loss | $ | (98,902 | ) | $ | (100,724 | ) | $ | (342,471 | ) | $ | (184,660 | ) | ||||
Depreciation and depletion: | ||||||||||||||||
U.S. Operations | $ | 36,649 | $ | 53,060 | $ | 113,409 | $ | 131,722 | ||||||||
Canadian and U.K. Operations | 21,152 | 29,383 | 89,371 | 99,235 | ||||||||||||
Other | 612 | 543 | 1,873 | 1,539 | ||||||||||||
Total | $ | 58,413 | $ | 82,986 | $ | 204,653 | $ | 232,496 | ||||||||
Capital expenditures: | ||||||||||||||||
U.S. Operations | $ | 23,503 | $ | 24,741 | $ | 63,244 | $ | 90,945 | ||||||||
Canadian and U.K. Operations | 1,687 | 2,867 | 3,731 | 16,412 | ||||||||||||
Other | 1,067 | 876 | 2,758 | 1,378 | ||||||||||||
Total | $ | 26,257 | $ | 28,484 | $ | 69,733 | $ | 108,735 | ||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Segment assets: | ||||||||||||||||
U.S. Operations | $ | 1,194,515 | $ | 1,265,255 | ||||||||||||
Canadian and U.K. Operations | 3,594,573 | 3,687,925 | ||||||||||||||
Other | 851,424 | 637,680 | ||||||||||||||
Total | $ | 5,640,512 | $ | 5,590,860 | ||||||||||||
Supplemental_Guarantor_and_Non
Supplemental Guarantor and Non-Guarantor Financial Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 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 September 30, 2014 certain 100% 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 subsidiaries which are guarantors under the senior notes, and (iv) the subsidiaries which are not guarantors of the senior notes: | ||||||||||||||||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 566,639 | $ | 70 | $ | 47,914 | $ | — | $ | 614,623 | ||||||||||
Receivables, net | 101,931 | 96,058 | 19,094 | — | 217,083 | |||||||||||||||
Intercompany receivables | — | 218,633 | 55,096 | (273,729 | ) | — | ||||||||||||||
Intercompany loans receivable | 820 | — | — | (820 | ) | — | ||||||||||||||
Inventories | — | 112,507 | 113,567 | — | 226,074 | |||||||||||||||
Deferred income taxes | 26,794 | 2,495 | 957 | — | 30,246 | |||||||||||||||
Prepaid expenses | 2,364 | 36,829 | 4,127 | — | 43,320 | |||||||||||||||
Other current assets | 10,252 | 510 | 2,237 | — | 12,999 | |||||||||||||||
Total current assets | 708,800 | 467,102 | 242,992 | (274,549 | ) | 1,144,345 | ||||||||||||||
Mineral interests, net | — | 6,496 | 2,861,073 | — | 2,867,569 | |||||||||||||||
Property, plant and equipment, net | 7,621 | 702,635 | 802,909 | — | 1,513,165 | |||||||||||||||
Deferred income taxes | 3,046 | 8,377 | — | (11,423 | ) | — | ||||||||||||||
Investment in subsidiaries | 3,390,858 | 79,885 | — | (3,470,743 | ) | — | ||||||||||||||
Other long-term assets | 87,972 | 17,995 | 9,466 | — | 115,433 | |||||||||||||||
$ | 4,198,297 | $ | 1,282,490 | $ | 3,916,440 | $ | (3,756,715 | ) | $ | 5,640,512 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current debt | $ | — | $ | 7,071 | $ | 7,107 | $ | — | $ | 14,178 | ||||||||||
Accounts payable | 3,262 | 39,786 | 8,846 | — | 51,894 | |||||||||||||||
Accrued expenses | 95,150 | 57,269 | 27,254 | — | 179,673 | |||||||||||||||
Intercompany payables | 273,729 | — | — | (273,729 | ) | — | ||||||||||||||
Intercompany loans payable | — | — | 820 | (820 | ) | — | ||||||||||||||
Accumulated other postretirement benefits obligation | 1,370 | 29,941 | — | — | 31,311 | |||||||||||||||
Other current liabilities | 175,137 | 21,371 | 24,901 | — | 221,409 | |||||||||||||||
Total current liabilities | 548,648 | 155,438 | 68,928 | (274,549 | ) | 498,465 | ||||||||||||||
Long-term debt | 3,168,520 | 7,544 | 155 | — | 3,176,219 | |||||||||||||||
Accumulated other postretirement benefits obligation | (849 | ) | 577,727 | — | — | 576,878 | ||||||||||||||
Deferred income taxes | — | — | 762,988 | (11,423 | ) | 751,565 | ||||||||||||||
Other long-term liabilities | 27,060 | 81,657 | 73,750 | — | 182,467 | |||||||||||||||
Total liabilities | 3,743,379 | 822,366 | 905,821 | (285,972 | ) | 5,185,594 | ||||||||||||||
Stockholders' equity: | 454,918 | 460,124 | 3,010,619 | (3,470,743 | ) | 454,918 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 4,198,297 | $ | 1,282,490 | $ | 3,916,440 | $ | (3,756,715 | ) | $ | 5,640,512 | |||||||||
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 SEPTEMBER 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Sales | $ | — | $ | 270,176 | $ | 49,366 | $ | — | $ | 319,542 | ||||||||||
Miscellaneous income (loss) | (40 | ) | 1,818 | 8,226 | — | 10,004 | ||||||||||||||
(40 | ) | 271,994 | 57,592 | — | 329,546 | |||||||||||||||
Cost and expenses: | ||||||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 238,470 | 59,455 | — | 297,925 | |||||||||||||||
Depreciation and depletion | 612 | 32,295 | 25,506 | — | 58,413 | |||||||||||||||
Selling, general and administrative | 1,387 | 10,868 | 4,343 | — | 16,598 | |||||||||||||||
Postretirement benefits | (45 | ) | 13,914 | — | — | 13,869 | ||||||||||||||
Restructuring and asset impairments | 50 | 37 | (2,513 | ) | — | (2,426 | ) | |||||||||||||
2,004 | 295,584 | 86,791 | — | 384,379 | ||||||||||||||||
Operating loss | (2,044 | ) | (23,590 | ) | (29,199 | ) | — | (54,833 | ) | |||||||||||
Interest expense, net | (77,856 | ) | (257 | ) | (1,118 | ) | — | (79,231 | ) | |||||||||||
Gain on extinguishment of debt | 3,394 | — | — | — | 3,394 | |||||||||||||||
Other income, net | 1,424 | — | — | — | 1,424 | |||||||||||||||
Loss before income tax expense (benefit) | (75,082 | ) | (23,847 | ) | (30,317 | ) | — | (129,246 | ) | |||||||||||
Income tax expense (benefit) | (404 | ) | 17 | (29,957 | ) | — | (30,344 | ) | ||||||||||||
Equity in net losses of subsidiaries | (24,224 | ) | — | — | 24,224 | — | ||||||||||||||
Net loss | $ | (98,902 | ) | $ | (23,864 | ) | $ | (360 | ) | $ | 24,224 | $ | (98,902 | ) | ||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
THREE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Sales | $ | — | $ | 302,328 | $ | 143,609 | $ | — | $ | 445,937 | ||||||||||
Miscellaneous income (loss) | (932 | ) | 5,669 | 5,122 | — | 9,859 | ||||||||||||||
(932 | ) | 307,997 | 148,731 | — | 455,796 | |||||||||||||||
Cost and expenses: | ||||||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 234,913 | 160,398 | — | 395,311 | |||||||||||||||
Depreciation and depletion | 543 | 43,600 | 38,843 | — | 82,986 | |||||||||||||||
Selling, general and administrative | (3,730 | ) | 13,854 | 11,749 | — | 21,873 | ||||||||||||||
Postretirement benefits | (54 | ) | 14,761 | — | — | 14,707 | ||||||||||||||
(3,241 | ) | 307,128 | 210,990 | — | 514,877 | |||||||||||||||
Operating income (loss) | 2,309 | 869 | (62,259 | ) | — | (59,081 | ) | |||||||||||||
Interest income (expense), net | (65,013 | ) | 8,465 | (1,814 | ) | — | (58,362 | ) | ||||||||||||
Loss on extinguishment of debt | (874 | ) | — | — | — | (874 | ) | |||||||||||||
Other income (loss), net | (234 | ) | 218 | 609 | — | 593 | ||||||||||||||
Income (loss) before income tax expense (benefit) | (63,812 | ) | 9,552 | (63,464 | ) | — | (117,724 | ) | ||||||||||||
Income tax expense (benefit) | (715 | ) | 1,368 | (17,653 | ) | — | (17,000 | ) | ||||||||||||
Equity in net losses of subsidiaries | (37,627 | ) | — | — | 37,627 | — | ||||||||||||||
Net income (loss) | $ | (100,724 | ) | $ | 8,184 | $ | (45,811 | ) | $ | 37,627 | $ | (100,724 | ) | |||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Sales | $ | — | $ | 854,074 | $ | 248,679 | $ | — | $ | 1,102,753 | ||||||||||
Miscellaneous income | 939 | 5,512 | 12,578 | — | 19,029 | |||||||||||||||
939 | 859,586 | 261,257 | — | 1,121,782 | ||||||||||||||||
Cost and expenses: | ||||||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 700,424 | 291,137 | — | 991,561 | |||||||||||||||
Depreciation and depletion | 1,873 | 99,343 | 103,437 | — | 204,653 | |||||||||||||||
Selling, general and administrative | 4,501 | 34,739 | 17,139 | — | 56,379 | |||||||||||||||
Postretirement benefits | (133 | ) | 41,740 | — | — | 41,607 | ||||||||||||||
Restructuring and asset impairments | 564 | 23,723 | 4,629 | — | 28,916 | |||||||||||||||
6,805 | 899,969 | 416,342 | — | 1,323,116 | ||||||||||||||||
Operating loss | (5,866 | ) | (40,383 | ) | (155,085 | ) | — | (201,334 | ) | |||||||||||
Interest income (expense), net | (222,598 | ) | 6,705 | (2,172 | ) | — | (218,065 | ) | ||||||||||||
Gain on extinguishment of debt | 902 | — | — | — | 902 | |||||||||||||||
Other income (loss), net | 705 | — | (59 | ) | — | 646 | ||||||||||||||
Loss before income tax benefit | (226,857 | ) | (33,678 | ) | (157,316 | ) | — | (417,851 | ) | |||||||||||
Income tax benefit | (2,837 | ) | (4,342 | ) | (68,201 | ) | — | (75,380 | ) | |||||||||||
Equity in net losses of subsidiaries | (118,451 | ) | — | — | 118,451 | — | ||||||||||||||
Net loss | $ | (342,471 | ) | $ | (29,336 | ) | $ | (89,115 | ) | $ | 118,451 | $ | (342,471 | ) | ||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Sales | $ | — | $ | 916,338 | $ | 457,006 | $ | — | $ | 1,373,344 | ||||||||||
Miscellaneous income (loss) | (159 | ) | 8,638 | 6,812 | — | 15,291 | ||||||||||||||
(159 | ) | 924,976 | 463,818 | — | 1,388,635 | |||||||||||||||
Cost and expenses: | ||||||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 693,904 | 489,957 | — | 1,183,861 | |||||||||||||||
Depreciation and depletion | 1,539 | 117,683 | 113,274 | — | 232,496 | |||||||||||||||
Selling, general and administrative | 6,420 | 41,108 | 32,148 | — | 79,676 | |||||||||||||||
Postretirement benefits | (164 | ) | 44,321 | — | — | 44,157 | ||||||||||||||
Restructuring and asset impairments | — | (8,947 | ) | 10,646 | — | 1,699 | ||||||||||||||
7,795 | 888,069 | 646,025 | — | 1,541,889 | ||||||||||||||||
Operating income (loss) | (7,954 | ) | 36,907 | (182,207 | ) | — | (153,254 | ) | ||||||||||||
Interest income (expense), net | (173,640 | ) | 21,748 | (5,422 | ) | — | (157,314 | ) | ||||||||||||
Loss on extinguishment of debt | (6,875 | ) | — | — | — | (6,875 | ) | |||||||||||||
Other income (loss), net | (234 | ) | 218 | — | — | (16 | ) | |||||||||||||
Income (loss) before income tax expense (benefit) | (188,703 | ) | 58,873 | (187,629 | ) | — | (317,459 | ) | ||||||||||||
Income tax expense (benefit) | (49,490 | ) | 6,505 | (89,814 | ) | — | (132,799 | ) | ||||||||||||
Equity in net losses of subsidiaries | (45,447 | ) | — | — | 45,447 | — | ||||||||||||||
Net income (loss) | $ | (184,660 | ) | $ | 52,368 | $ | (97,815 | ) | $ | 45,447 | $ | (184,660 | ) | |||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE | ||||||||||||||||||||
INCOME (LOSS) (UNAUDITED) | ||||||||||||||||||||
THREE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Net loss | $ | (98,902 | ) | $ | (23,864 | ) | $ | (360 | ) | $ | 24,224 | $ | (98,902 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Change in pension and postretirement benefit plans, net of tax | 2,977 | 2,963 | — | (2,963 | ) | 2,977 | ||||||||||||||
Change in foreign currency translation adjustment | (21,672 | ) | — | (21,672 | ) | 21,672 | (21,672 | ) | ||||||||||||
Total other comprehensive income (loss) | (18,695 | ) | 2,963 | (21,672 | ) | 18,709 | (18,695 | ) | ||||||||||||
Total comprehensive loss | $ | (117,597 | ) | $ | (20,901 | ) | $ | (22,032 | ) | $ | 42,933 | $ | (117,597 | ) | ||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE | ||||||||||||||||||||
INCOME (LOSS) (UNAUDITED) | ||||||||||||||||||||
THREE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Net income (loss) | $ | (100,724 | ) | $ | 8,184 | $ | (45,811 | ) | $ | 37,627 | $ | (100,724 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Change in pension and postretirement benefit plans, net of tax | 4,659 | 13,338 | — | (13,338 | ) | 4,659 | ||||||||||||||
Change in unrealized gain on hedges, net of tax | 653 | 12 | — | (12 | ) | 653 | ||||||||||||||
Change in foreign currency translation adjustment | 14,847 | — | 14,847 | (14,847 | ) | 14,847 | ||||||||||||||
Change in unrealized gain on investments, net of tax | (940 | ) | — | (940 | ) | 940 | (940 | ) | ||||||||||||
Total other comprehensive income | 19,219 | 13,350 | 13,907 | (27,257 | ) | 19,219 | ||||||||||||||
Total comprehensive income (loss) | $ | (81,505 | ) | $ | 21,534 | $ | (31,904 | ) | $ | 10,370 | $ | (81,505 | ) | |||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE | ||||||||||||||||||||
INCOME (LOSS) (UNAUDITED) | ||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Net loss | $ | (342,471 | ) | $ | (29,336 | ) | $ | (89,115 | ) | $ | 118,451 | $ | (342,471 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Change in pension and postretirement benefit plans, net of tax | 9,994 | 9,954 | — | (9,954 | ) | 9,994 | ||||||||||||||
Change in unrealized gain on hedges, net of tax | 1,679 | 3 | — | (3 | ) | 1,679 | ||||||||||||||
Change in foreign currency translation adjustment | (8,244 | ) | — | (8,244 | ) | 8,244 | (8,244 | ) | ||||||||||||
Total other comprehensive income (loss) | 3,429 | 9,957 | (8,244 | ) | (1,713 | ) | 3,429 | |||||||||||||
Total comprehensive loss | $ | (339,042 | ) | $ | (19,379 | ) | $ | (97,359 | ) | $ | 116,738 | $ | (339,042 | ) | ||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE | ||||||||||||||||||||
INCOME (LOSS) (UNAUDITED) | ||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Net income (loss) | $ | (184,660 | ) | $ | 52,368 | $ | (97,815 | ) | $ | 45,447 | $ | (184,660 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Change in pension and postretirement benefit plans, net of tax | 13,976 | 13,338 | — | (13,338 | ) | 13,976 | ||||||||||||||
Change in unrealized gain on hedges, net of tax | 1,901 | 49 | — | (49 | ) | 1,901 | ||||||||||||||
Change in foreign currency translation adjustment | (2,239 | ) | — | (2,239 | ) | 2,239 | (2,239 | ) | ||||||||||||
Change in unrealized gain on investments, net of tax | (897 | ) | — | (897 | ) | 897 | (897 | ) | ||||||||||||
Total other comprehensive income (loss) | 12,741 | 13,387 | (3,136 | ) | (10,251 | ) | 12,741 | |||||||||||||
Total comprehensive income (loss) | $ | (171,919 | ) | $ | 65,755 | $ | (100,951 | ) | $ | 35,196 | $ | (171,919 | ) | |||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Cash flows provided by (used in) operating activities | $ | (124,771 | ) | $ | 115,279 | $ | (11,294 | ) | $ | — | $ | (20,786 | ) | |||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Additions to property, plant and equipment | (2,758 | ) | (60,059 | ) | (6,916 | ) | — | (69,733 | ) | |||||||||||
Proceeds from sale of property, plant and equipment | — | 24,112 | — | — | 24,112 | |||||||||||||||
Intercompany loans made | (5,200 | ) | — | — | 5,200 | — | ||||||||||||||
Intercompany loans received | 1,828 | — | — | (1,828 | ) | — | ||||||||||||||
Other | — | — | 134 | — | 134 | |||||||||||||||
Cash flows used in investing activities | (6,130 | ) | (35,947 | ) | (6,782 | ) | 3,372 | (45,487 | ) | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Proceeds from issuance of debt | 869,800 | — | — | — | 869,800 | |||||||||||||||
Retirements of debt | (406,566 | ) | (5,790 | ) | (5,965 | ) | — | (418,321 | ) | |||||||||||
Dividends paid | (1,944 | ) | — | — | — | (1,944 | ) | |||||||||||||
Debt issuance costs | (27,748 | ) | — | — | — | (27,748 | ) | |||||||||||||
Advances from (to) consolidated entities | 30,043 | (73,573 | ) | 43,530 | — | — | ||||||||||||||
Intercompany notes borrowings | — | — | 5,200 | (5,200 | ) | — | ||||||||||||||
Intercompany notes payments | — | — | (1,828 | ) | 1,828 | — | ||||||||||||||
Other | (195 | ) | — | — | — | (195 | ) | |||||||||||||
Cash flows provided by (used in) financing activities | 463,390 | (79,363 | ) | 40,937 | (3,372 | ) | 421,592 | |||||||||||||
Effect of foreign exchange rates on cash | — | — | (1,514 | ) | — | (1,514 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 332,489 | (31 | ) | 21,347 | — | 353,805 | ||||||||||||||
Cash and cash equivalents at beginning of period | 234,150 | 101 | 26,567 | — | 260,818 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 566,639 | $ | 70 | $ | 47,914 | $ | — | $ | 614,623 | ||||||||||
WALTER ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Cash flows provided by (used in) operating activities | $ | (165,441 | ) | $ | 163,367 | $ | (41,952 | ) | $ | — | $ | (44,026 | ) | |||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Additions to property, plant and equipment | (863 | ) | (84,623 | ) | (23,249 | ) | — | (108,735 | ) | |||||||||||
Intercompany loans made | (33,100 | ) | — | — | 33,100 | — | ||||||||||||||
Intercompany loans received | 30,500 | — | — | (30,500 | ) | — | ||||||||||||||
Investments in subsidiaries | — | — | — | — | — | |||||||||||||||
Proceeds from sales of investments | — | — | 1,559 | — | 1,559 | |||||||||||||||
Other | — | — | 663 | — | 663 | |||||||||||||||
Cash flows used in investing activities | (3,463 | ) | (84,623 | ) | (21,027 | ) | 2,600 | (106,513 | ) | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Proceeds from issuance of debt | 897,412 | — | — | — | 897,412 | |||||||||||||||
Retirements of debt | (496,062 | ) | (14,193 | ) | — | — | (510,255 | ) | ||||||||||||
Dividends paid | (16,264 | ) | — | — | — | (16,264 | ) | |||||||||||||
Debt issuance costs | (42,128 | ) | — | — | — | (42,128 | ) | |||||||||||||
Advances from (to) consolidated entities | 4,729 | (64,763 | ) | 60,034 | — | — | ||||||||||||||
Intercompany notes borrowings | — | — | 33,100 | (33,100 | ) | — | ||||||||||||||
Intercompany notes payments | — | — | (30,500 | ) | 30,500 | — | ||||||||||||||
Other | (883 | ) | 151 | — | — | (732 | ) | |||||||||||||
Cash flows provided by (used in) financing activities | 346,804 | (78,805 | ) | 62,634 | (2,600 | ) | 328,033 | |||||||||||||
Effect of foreign exchange rates on cash | — | — | (961 | ) | — | (961 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 177,900 | (61 | ) | (1,306 | ) | — | 176,533 | |||||||||||||
Cash and cash equivalents at beginning of period | 83,833 | 61 | 32,707 | — | 116,601 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 261,733 | $ | — | $ | 31,401 | $ | — | $ | 293,134 | ||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. ASU 2014-15 requires management of the Company to evaluate whether there is substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued. ASU 2014-15 is effective for public entities within annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. The implementation of the guidance is not expected to have a material impact on the Company's financial condition, results of operations, and cash flows. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||
Schedule of revision for loss on extinguishment of debt | ' | |||||||||
The following reflects the revisions for the relevant interim periods during 2013 (in thousands): | ||||||||||
For the three | For the nine | |||||||||
months | months | |||||||||
ended | ended | |||||||||
September 30, 2013 | September 30, 2013 | |||||||||
Interest expense, prior to revision | $ | 63,544 | $ | 169,291 | ||||||
Interest income | (15 | ) | (809 | ) | ||||||
Revision of loss on extinguishment of debt | (5,167 | ) | (11,168 | ) | ||||||
Interest expense, net, revised | $ | 58,362 | $ | 157,314 | ||||||
For the three | For the nine | |||||||||
months | months | |||||||||
ended | ended | |||||||||
September 30, 2013 | September 30, 2013 | |||||||||
Other income (loss), net | $ | 4,886 | $ | 4,277 | ||||||
Revision of loss on extinguishment of debt | (4,293 | ) | (4,293 | ) | ||||||
Other income (loss), net, revised | $ | 593 | $ | (16 | ) | |||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of inventories | ' | |||||||
Inventories are summarized as follows (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Coal | $ | 168,048 | $ | 238,820 | ||||
Raw materials and supplies | 58,026 | 73,827 | ||||||
Total inventories | $ | 226,074 | $ | 312,647 | ||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of debt instruments | ' | |||||||||||||||||||||||
Debt consisted of the following (dollars in thousands): | ||||||||||||||||||||||||
September 30, | December 31, | Weighted Average Stated Interest Rate at September 30, 2014 | Final | |||||||||||||||||||||
2014 | 2013 | Maturity | ||||||||||||||||||||||
2011 term loan A(1) | $ | — | $ | 406,566 | — | — | ||||||||||||||||||
2011 term loan B(2) | 978,178 | 978,178 | 7.25% | 2018 | ||||||||||||||||||||
Revolving credit facility(2) | — | — | — | 2016/2017 | ||||||||||||||||||||
9.875% senior notes(3) | 440,000 | 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 | ||||||||||||||||||||
9.50% add-on senior secured notes | 320,000 | — | 9.50% | 2019 | ||||||||||||||||||||
11.00% / 12.00% senior secured PIK toggle notes | 350,000 | — | 11.00% | 2020 | ||||||||||||||||||||
Other(4) | 21,877 | 14,876 | Various | Various | ||||||||||||||||||||
Debt discount, net | (19,658 | ) | (20,788 | ) | — | — | ||||||||||||||||||
Total debt | 3,190,397 | 2,778,832 | ||||||||||||||||||||||
Less: current debt(4) | (14,178 | ) | (9,210 | ) | ||||||||||||||||||||
Total long-term debt | $ | 3,176,219 | $ | 2,769,622 | ||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
-1 | On March 27, 2014, the Company issued $200.0 million 9.50% Senior Notes due 2019 and $350.0 million 11.00%/12.00% Senior Secured PIK toggle notes due 2020 and utilized the proceeds to repay in full term loan A debt, increase liquidity and pay related fees and expenses. | |||||||||||||||||||||||
-2 | As of September 30, 2014, the revolving credit facility and term loan B interest rates were tied to LIBOR or CDOR, plus a credit spread of 550 basis points for the revolving credit facility ("revolver") and 675 basis points with a minimum LIBOR floor of 100 basis points for the term loan B. | |||||||||||||||||||||||
-3 | On April 23, 2014 and August 7, 2014, the Company issued an aggregate of 3.15 million shares and 2.25 million shares of its common stock, respectively, in exchange for $35.0 million and $25.0 million of its 9.875% Senior Notes due 2020, respectively. The Company recognized a net gain of $9.9 million and $21.3 million for the three and nine months ended September 30, 2014, respectively, in gain (loss) on extinguishment of debt in the Condensed Consolidated Statements of Operations. | |||||||||||||||||||||||
-4 | 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 September 30, 2014 is as follows (in thousands): | ||||||||||||||||||||||||
Payments Due | ||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||||
2011 term loan B | $ | — | $ | — | $ | — | $ | — | $ | 978,178 | $ | — | ||||||||||||
9.875% senior notes | — | — | — | — | — | 440,000 | ||||||||||||||||||
8.50% senior notes | — | — | — | — | — | 450,000 | ||||||||||||||||||
9.50% senior secured notes | — | — | — | — | — | 450,000 | ||||||||||||||||||
9.50% add-on senior secured notes | — | — | — | — | — | 200,000 | ||||||||||||||||||
9.50% add-on senior secured notes | — | — | — | — | — | 320,000 | ||||||||||||||||||
11.0% / 12.0% senior secured PIK toggle notes | — | — | — | — | — | 350,000 | ||||||||||||||||||
Other | 3,580 | 12,535 | 5,762 | — | — | — | ||||||||||||||||||
$ | 3,580 | $ | 12,535 | $ | 5,762 | $ | — | $ | 978,178 | $ | 2,210,000 | |||||||||||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
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 ended | For the three months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||
Service cost | $ | 1,701 | $ | 1,766 | $ | 1,944 | $ | 2,486 | ||||||||
Interest cost | 3,316 | 3,070 | 7,726 | 7,200 | ||||||||||||
Expected return on plan assets | (4,553 | ) | (4,235 | ) | — | — | ||||||||||
Amortization of prior service cost | 61 | 66 | 307 | 307 | ||||||||||||
Amortization of net actuarial loss | 550 | 2,434 | 3,892 | 4,714 | ||||||||||||
Net periodic benefit cost | $ | 1,075 | $ | 3,101 | $ | 13,869 | $ | 14,707 | ||||||||
Pension Benefits | Other Postretirement | |||||||||||||||
Benefits | ||||||||||||||||
For the nine months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||
Service cost | $ | 5,103 | $ | 5,298 | $ | 5,832 | $ | 7,458 | ||||||||
Interest cost | 9,980 | 9,210 | 23,178 | 21,596 | ||||||||||||
Expected return on plan assets | (13,659 | ) | (12,705 | ) | — | — | ||||||||||
Amortization of prior service cost | 183 | 198 | 921 | 921 | ||||||||||||
Amortization of net actuarial loss | 1,742 | 7,302 | 11,676 | 14,182 | ||||||||||||
Settlement loss | 1,627 | — | — | — | ||||||||||||
Net periodic benefit cost | $ | 4,976 | $ | 9,303 | $ | 41,607 | $ | 44,157 | ||||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
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 and nine months ended September 30, 2014 and 2013 is as follows (in thousands, except per share data): | ||||||||||||||||
For the three months ended | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (98,902 | ) | $ | (98,902 | ) | $ | (100,724 | ) | $ | (100,724 | ) | ||||
Denominator: | ||||||||||||||||
Average number of common shares outstanding(1) | 66,952 | 66,952 | 62,573 | 62,573 | ||||||||||||
Net loss per share | $ | (1.48 | ) | $ | (1.48 | ) | $ | (1.61 | ) | $ | (1.61 | ) | ||||
For the nine months ended September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (342,471 | ) | $ | (342,471 | ) | $ | (184,660 | ) | $ | (184,660 | ) | ||||
Denominator: | ||||||||||||||||
Average number of common shares outstanding(1) | 64,986 | 64,986 | 62,555 | 62,555 | ||||||||||||
Net loss per share | $ | (5.27 | ) | $ | (5.27 | ) | $ | (2.95 | ) | $ | (2.95 | ) | ||||
_______________________________________________________________________________ | ||||||||||||||||
-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 September 30, 2014 and 2013 totaling 1,727 and 675, respectively, were excluded from the calculation above because their effect would have been anti-dilutive. Additionally, the weighted average number of stock options and restricted stock units outstanding for the nine months ended September 30, 2014 and 2013 totaling 1,437 and 525, 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 | ' | |||||||||||||||
The tables below sets forth stock options exercised and restricted stock units vested for the three and nine months ended September 30, 2014 and 2013: | ||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options exercised | — | — | 18,300 | 24,831 | ||||||||||||
Restricted stock units vested | 3,337 | 4,558 | 81,889 | 30,234 | ||||||||||||
Total | 3,337 | 4,558 | 100,189 | 55,065 | ||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
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 as of December 31, 2013 (in thousands, except amounts in footnotes to the table). There were no outstanding derivative instruments as of September 30, 2014. See Note 11 for additional information related to the fair values of the Company's derivative instruments. | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
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) | $ | 3,080 | ||||||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
-1 | $1 thousand was included in other current assets within the Condensed Consolidated Balance Sheet as of December 31, 2013. | |||||||||||||||||||||||
-2 | $3.1 million was included within other current liabilities within the Condensed Consolidated Balance Sheet as of December 31, 2013. | |||||||||||||||||||||||
Schedule of gains and losses from derivative instruments | ' | |||||||||||||||||||||||
The following tables present the gains and losses from derivative instruments for the three and nine months ended September 30, 2014 and 2013 and their location within the condensed consolidated financial statements (in thousands). | ||||||||||||||||||||||||
Gain (loss), | Gain, net of | Loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings (ineffective portion) (2) | ||||||||||||||||||||||
net of tax, | tax, reclassified | |||||||||||||||||||||||
recognized in | from | |||||||||||||||||||||||
accumulated | accumulated | |||||||||||||||||||||||
other | other | |||||||||||||||||||||||
comprehensive | comprehensive | |||||||||||||||||||||||
income (loss) | income (loss) | |||||||||||||||||||||||
to earnings(1) | ||||||||||||||||||||||||
Three months | Three months | Three months | ||||||||||||||||||||||
ended | ended | ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Interest rate swaps | $ | — | $ | 1,057 | $ | — | $ | (636 | ) | $ | — | $ | 235 | |||||||||||
Interest rate cap | — | (3 | ) | — | — | — | — | |||||||||||||||||
Total | $ | — | $ | 1,054 | $ | — | $ | (636 | ) | $ | — | $ | 235 | |||||||||||
Gain (loss), net of | Gain, net of tax, | Loss, net of tax, | ||||||||||||||||||||||
tax, recognized in | reclassified from | reclassified from | ||||||||||||||||||||||
accumulated other | accumulated other | accumulated | ||||||||||||||||||||||
comprehensive | comprehensive | other | ||||||||||||||||||||||
income (loss) | income (loss) to | comprehensive | ||||||||||||||||||||||
earnings(1) | income (loss) | |||||||||||||||||||||||
to earnings | ||||||||||||||||||||||||
(ineffective | ||||||||||||||||||||||||
portion)(2) | ||||||||||||||||||||||||
Nine months ended | Nine months ended | Nine months ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Interest rate swaps | $ | 1,303 | $ | 3,538 | $ | (677 | ) | $ | (1,866 | ) | $ | 1,053 | $ | 235 | ||||||||||
Interest rate cap | — | (6 | ) | — | — | — | — | |||||||||||||||||
Total | $ | 1,303 | $ | 3,532 | $ | (677 | ) | $ | (1,866 | ) | $ | 1,053 | $ | 235 | ||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
-1 | The effective portion of the interest rate swap amounts are reported within interest expense, net 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) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | |||||||||||||||
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 nine months ended September 30, 2014, net of tax (in thousands). | ||||||||||||||||
Pension and | Unrealized | Foreign | Total | |||||||||||||
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 | (8,244 | ) | (6,941 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 9,994 | 376 | —(1) | 10,370 | ||||||||||||
Net current-period other comprehensive income (loss) | 9,994 | 1,679 | (8,244 | ) | 3,429 | |||||||||||
Ending balance as of September 30, 2014 | $ | (155,156 | ) | $ | — | $ | (3,673 | ) | $ | (158,829 | ) | |||||
_______________________________________________________________________________ | ||||||||||||||||
-1 | Foreign currency translation adjustments are reclassified from accumulated other comprehensive income (loss) to earnings 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 nine months ended September 30, 2014 (in thousands). | ||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified | Affected Line Item in the | ||||||||||||||
from Accumulated | Condensed Consolidated | |||||||||||||||
Other Comprehensive | Statements of Operations | |||||||||||||||
Income (Loss) | ||||||||||||||||
Gains and losses on cash flow hedges: | ||||||||||||||||
Interest rate swaps (effective portion) | $ | (1,095 | ) | Interest expense, net | ||||||||||||
Interest rate swaps (ineffective portion) | 1,701 | Other income (loss), net | ||||||||||||||
606 | Total before tax | |||||||||||||||
(230 | ) | Income tax benefit | ||||||||||||||
$ | 376 | Net of tax | ||||||||||||||
Amortization of pension and postretirement benefit plans: | ||||||||||||||||
Prior service cost | $ | 1,104 | (a) | |||||||||||||
Net actuarial loss | 13,418 | (a) | ||||||||||||||
Settlement loss | 1,627 | (a) | ||||||||||||||
16,149 | Total before tax | |||||||||||||||
(6,155 | ) | Income tax benefit | ||||||||||||||
$ | 9,994 | Net of tax | ||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||
(a) | Amortization of pension benefit items are included in cost of sales (exclusive of depreciation and depletion) and selling, general and administrative expense while amortization of postretirement benefit items are included in postretirement benefits within the Condensed Consolidated Statements of Operations. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||
December 31, 2013 | ||||||||||||||||
Fair Value | ||||||||||||||||
Measurements Using | Total | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Fair 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 lease obligations, equipment financing agreements and a discount on the revolver of $1,683 as of September 30, 2014) are presented below (in thousands): | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
2011 term loan A(1) | $ | — | $ | — | $ | 401,052 | $ | 403,517 | ||||||||
2011 term loan B(2) | $ | 965,476 | $ | 868,867 | $ | 968,581 | $ | 959,838 | ||||||||
9.875% senior notes(3) | $ | 437,425 | $ | 140,800 | $ | 496,831 | $ | 431,250 | ||||||||
8.50% senior notes | $ | 450,000 | $ | 130,500 | $ | 450,000 | $ | 374,625 | ||||||||
9.50% senior secured notes(4) | $ | 447,741 | $ | 405,000 | $ | 447,492 | $ | 474,750 | ||||||||
9.50% add-on senior secured notes(5) | $ | 202,660 | $ | 180,000 | $ | — | $ | — | ||||||||
9.50% add-on senior secured notes(6) | $ | 316,901 | $ | 288,000 | $ | — | $ | — | ||||||||
11.0%/12.0% senior secured PIK toggle notes | $ | 350,000 | $ | 162,750 | $ | — | $ | — | ||||||||
_______________________________________________________________________________ | ||||||||||||||||
-1 | Net of debt discount of $5,514 as of December 31, 2013. | |||||||||||||||
-2 | Net of debt discount of $12,702 and $9,597 as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||
-3 | Net of debt discount of $2,575 and $3,169 as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||
-4 | Net of debt discount of $2,259 and $2,508 as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||
-5 | Includes a premium of $2,660 as of September 30, 2014. | |||||||||||||||
-6 | Net of debt discount of $3,099 as of September 30, 2014. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
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 | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
U.S. Operations | $ | 282,356 | $ | 337,269 | $ | 911,705 | $ | 997,503 | ||||||||
Canadian and U.K. Operations | 46,355 | 119,367 | 206,976 | 390,684 | ||||||||||||
Other | 835 | (840 | ) | 3,101 | 448 | |||||||||||
Total revenues | $ | 329,546 | $ | 455,796 | $ | 1,121,782 | $ | 1,388,635 | ||||||||
Segment operating income (loss): | ||||||||||||||||
U.S. Operations | $ | (26,837 | ) | $ | (8,008 | ) | $ | (51,376 | ) | $ | 22,368 | |||||
Canadian and U.K. Operations | (26,598 | ) | (48,022 | ) | (145,642 | ) | (163,135 | ) | ||||||||
Other | (1,398 | ) | (3,051 | ) | (4,316 | ) | (12,487 | ) | ||||||||
Total operating loss | (54,833 | ) | (59,081 | ) | (201,334 | ) | (153,254 | ) | ||||||||
Interest expense, net | (79,231 | ) | (58,362 | ) | (218,065 | ) | (157,314 | ) | ||||||||
Gain (loss) on extinguishment of debt | 3,394 | (874 | ) | 902 | (6,875 | ) | ||||||||||
Other income (loss), net | 1,424 | 593 | 646 | (16 | ) | |||||||||||
Loss before income tax benefit | (129,246 | ) | (117,724 | ) | (417,851 | ) | (317,459 | ) | ||||||||
Income tax benefit | (30,344 | ) | (17,000 | ) | (75,380 | ) | (132,799 | ) | ||||||||
Net loss | $ | (98,902 | ) | $ | (100,724 | ) | $ | (342,471 | ) | $ | (184,660 | ) | ||||
Depreciation and depletion: | ||||||||||||||||
U.S. Operations | $ | 36,649 | $ | 53,060 | $ | 113,409 | $ | 131,722 | ||||||||
Canadian and U.K. Operations | 21,152 | 29,383 | 89,371 | 99,235 | ||||||||||||
Other | 612 | 543 | 1,873 | 1,539 | ||||||||||||
Total | $ | 58,413 | $ | 82,986 | $ | 204,653 | $ | 232,496 | ||||||||
Capital expenditures: | ||||||||||||||||
U.S. Operations | $ | 23,503 | $ | 24,741 | $ | 63,244 | $ | 90,945 | ||||||||
Canadian and U.K. Operations | 1,687 | 2,867 | 3,731 | 16,412 | ||||||||||||
Other | 1,067 | 876 | 2,758 | 1,378 | ||||||||||||
Total | $ | 26,257 | $ | 28,484 | $ | 69,733 | $ | 108,735 | ||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Segment assets: | ||||||||||||||||
U.S. Operations | $ | 1,194,515 | $ | 1,265,255 | ||||||||||||
Canadian and U.K. Operations | 3,594,573 | 3,687,925 | ||||||||||||||
Other | 851,424 | 637,680 | ||||||||||||||
Total | $ | 5,640,512 | $ | 5,590,860 | ||||||||||||
Supplemental_Guarantor_and_Non1
Supplemental Guarantor and Non-Guarantor Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Supplemental Guarantor and Non-Guarantor Financial Information | ' | |||||||||||||||||||
Schedule of supplemental condensed consolidating balance sheets | ' | |||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 566,639 | $ | 70 | $ | 47,914 | $ | — | $ | 614,623 | ||||||||||
Receivables, net | 101,931 | 96,058 | 19,094 | — | 217,083 | |||||||||||||||
Intercompany receivables | — | 218,633 | 55,096 | (273,729 | ) | — | ||||||||||||||
Intercompany loans receivable | 820 | — | — | (820 | ) | — | ||||||||||||||
Inventories | — | 112,507 | 113,567 | — | 226,074 | |||||||||||||||
Deferred income taxes | 26,794 | 2,495 | 957 | — | 30,246 | |||||||||||||||
Prepaid expenses | 2,364 | 36,829 | 4,127 | — | 43,320 | |||||||||||||||
Other current assets | 10,252 | 510 | 2,237 | — | 12,999 | |||||||||||||||
Total current assets | 708,800 | 467,102 | 242,992 | (274,549 | ) | 1,144,345 | ||||||||||||||
Mineral interests, net | — | 6,496 | 2,861,073 | — | 2,867,569 | |||||||||||||||
Property, plant and equipment, net | 7,621 | 702,635 | 802,909 | — | 1,513,165 | |||||||||||||||
Deferred income taxes | 3,046 | 8,377 | — | (11,423 | ) | — | ||||||||||||||
Investment in subsidiaries | 3,390,858 | 79,885 | — | (3,470,743 | ) | — | ||||||||||||||
Other long-term assets | 87,972 | 17,995 | 9,466 | — | 115,433 | |||||||||||||||
$ | 4,198,297 | $ | 1,282,490 | $ | 3,916,440 | $ | (3,756,715 | ) | $ | 5,640,512 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current debt | $ | — | $ | 7,071 | $ | 7,107 | $ | — | $ | 14,178 | ||||||||||
Accounts payable | 3,262 | 39,786 | 8,846 | — | 51,894 | |||||||||||||||
Accrued expenses | 95,150 | 57,269 | 27,254 | — | 179,673 | |||||||||||||||
Intercompany payables | 273,729 | — | — | (273,729 | ) | — | ||||||||||||||
Intercompany loans payable | — | — | 820 | (820 | ) | — | ||||||||||||||
Accumulated other postretirement benefits obligation | 1,370 | 29,941 | — | — | 31,311 | |||||||||||||||
Other current liabilities | 175,137 | 21,371 | 24,901 | — | 221,409 | |||||||||||||||
Total current liabilities | 548,648 | 155,438 | 68,928 | (274,549 | ) | 498,465 | ||||||||||||||
Long-term debt | 3,168,520 | 7,544 | 155 | — | 3,176,219 | |||||||||||||||
Accumulated other postretirement benefits obligation | (849 | ) | 577,727 | — | — | 576,878 | ||||||||||||||
Deferred income taxes | — | — | 762,988 | (11,423 | ) | 751,565 | ||||||||||||||
Other long-term liabilities | 27,060 | 81,657 | 73,750 | — | 182,467 | |||||||||||||||
Total liabilities | 3,743,379 | 822,366 | 905,821 | (285,972 | ) | 5,185,594 | ||||||||||||||
Stockholders' equity: | 454,918 | 460,124 | 3,010,619 | (3,470,743 | ) | 454,918 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 4,198,297 | $ | 1,282,490 | $ | 3,916,440 | $ | (3,756,715 | ) | $ | 5,640,512 | |||||||||
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 | ' | |||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
THREE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Sales | $ | — | $ | 270,176 | $ | 49,366 | $ | — | $ | 319,542 | ||||||||||
Miscellaneous income (loss) | (40 | ) | 1,818 | 8,226 | — | 10,004 | ||||||||||||||
(40 | ) | 271,994 | 57,592 | — | 329,546 | |||||||||||||||
Cost and expenses: | ||||||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 238,470 | 59,455 | — | 297,925 | |||||||||||||||
Depreciation and depletion | 612 | 32,295 | 25,506 | — | 58,413 | |||||||||||||||
Selling, general and administrative | 1,387 | 10,868 | 4,343 | — | 16,598 | |||||||||||||||
Postretirement benefits | (45 | ) | 13,914 | — | — | 13,869 | ||||||||||||||
Restructuring and asset impairments | 50 | 37 | (2,513 | ) | — | (2,426 | ) | |||||||||||||
2,004 | 295,584 | 86,791 | — | 384,379 | ||||||||||||||||
Operating loss | (2,044 | ) | (23,590 | ) | (29,199 | ) | — | (54,833 | ) | |||||||||||
Interest expense, net | (77,856 | ) | (257 | ) | (1,118 | ) | — | (79,231 | ) | |||||||||||
Gain on extinguishment of debt | 3,394 | — | — | — | 3,394 | |||||||||||||||
Other income, net | 1,424 | — | — | — | 1,424 | |||||||||||||||
Loss before income tax expense (benefit) | (75,082 | ) | (23,847 | ) | (30,317 | ) | — | (129,246 | ) | |||||||||||
Income tax expense (benefit) | (404 | ) | 17 | (29,957 | ) | — | (30,344 | ) | ||||||||||||
Equity in net losses of subsidiaries | (24,224 | ) | — | — | 24,224 | — | ||||||||||||||
Net loss | $ | (98,902 | ) | $ | (23,864 | ) | $ | (360 | ) | $ | 24,224 | $ | (98,902 | ) | ||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
THREE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Sales | $ | — | $ | 302,328 | $ | 143,609 | $ | — | $ | 445,937 | ||||||||||
Miscellaneous income (loss) | (932 | ) | 5,669 | 5,122 | — | 9,859 | ||||||||||||||
(932 | ) | 307,997 | 148,731 | — | 455,796 | |||||||||||||||
Cost and expenses: | ||||||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 234,913 | 160,398 | — | 395,311 | |||||||||||||||
Depreciation and depletion | 543 | 43,600 | 38,843 | — | 82,986 | |||||||||||||||
Selling, general and administrative | (3,730 | ) | 13,854 | 11,749 | — | 21,873 | ||||||||||||||
Postretirement benefits | (54 | ) | 14,761 | — | — | 14,707 | ||||||||||||||
(3,241 | ) | 307,128 | 210,990 | — | 514,877 | |||||||||||||||
Operating income (loss) | 2,309 | 869 | (62,259 | ) | — | (59,081 | ) | |||||||||||||
Interest income (expense), net | (65,013 | ) | 8,465 | (1,814 | ) | — | (58,362 | ) | ||||||||||||
Loss on extinguishment of debt | (874 | ) | — | — | — | (874 | ) | |||||||||||||
Other income (loss), net | (234 | ) | 218 | 609 | — | 593 | ||||||||||||||
Income (loss) before income tax expense (benefit) | (63,812 | ) | 9,552 | (63,464 | ) | — | (117,724 | ) | ||||||||||||
Income tax expense (benefit) | (715 | ) | 1,368 | (17,653 | ) | — | (17,000 | ) | ||||||||||||
Equity in net losses of subsidiaries | (37,627 | ) | — | — | 37,627 | — | ||||||||||||||
Net income (loss) | $ | (100,724 | ) | $ | 8,184 | $ | (45,811 | ) | $ | 37,627 | $ | (100,724 | ) | |||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Sales | $ | — | $ | 854,074 | $ | 248,679 | $ | — | $ | 1,102,753 | ||||||||||
Miscellaneous income | 939 | 5,512 | 12,578 | — | 19,029 | |||||||||||||||
939 | 859,586 | 261,257 | — | 1,121,782 | ||||||||||||||||
Cost and expenses: | ||||||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 700,424 | 291,137 | — | 991,561 | |||||||||||||||
Depreciation and depletion | 1,873 | 99,343 | 103,437 | — | 204,653 | |||||||||||||||
Selling, general and administrative | 4,501 | 34,739 | 17,139 | — | 56,379 | |||||||||||||||
Postretirement benefits | (133 | ) | 41,740 | — | — | 41,607 | ||||||||||||||
Restructuring and asset impairments | 564 | 23,723 | 4,629 | — | 28,916 | |||||||||||||||
6,805 | 899,969 | 416,342 | — | 1,323,116 | ||||||||||||||||
Operating loss | (5,866 | ) | (40,383 | ) | (155,085 | ) | — | (201,334 | ) | |||||||||||
Interest income (expense), net | (222,598 | ) | 6,705 | (2,172 | ) | — | (218,065 | ) | ||||||||||||
Gain on extinguishment of debt | 902 | — | — | — | 902 | |||||||||||||||
Other income (loss), net | 705 | — | (59 | ) | — | 646 | ||||||||||||||
Loss before income tax benefit | (226,857 | ) | (33,678 | ) | (157,316 | ) | — | (417,851 | ) | |||||||||||
Income tax benefit | (2,837 | ) | (4,342 | ) | (68,201 | ) | — | (75,380 | ) | |||||||||||
Equity in net losses of subsidiaries | (118,451 | ) | — | — | 118,451 | — | ||||||||||||||
Net loss | $ | (342,471 | ) | $ | (29,336 | ) | $ | (89,115 | ) | $ | 118,451 | $ | (342,471 | ) | ||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Sales | $ | — | $ | 916,338 | $ | 457,006 | $ | — | $ | 1,373,344 | ||||||||||
Miscellaneous income (loss) | (159 | ) | 8,638 | 6,812 | — | 15,291 | ||||||||||||||
(159 | ) | 924,976 | 463,818 | — | 1,388,635 | |||||||||||||||
Cost and expenses: | ||||||||||||||||||||
Cost of sales (exclusive of depreciation and depletion) | — | 693,904 | 489,957 | — | 1,183,861 | |||||||||||||||
Depreciation and depletion | 1,539 | 117,683 | 113,274 | — | 232,496 | |||||||||||||||
Selling, general and administrative | 6,420 | 41,108 | 32,148 | — | 79,676 | |||||||||||||||
Postretirement benefits | (164 | ) | 44,321 | — | — | 44,157 | ||||||||||||||
Restructuring and asset impairments | — | (8,947 | ) | 10,646 | — | 1,699 | ||||||||||||||
7,795 | 888,069 | 646,025 | — | 1,541,889 | ||||||||||||||||
Operating income (loss) | (7,954 | ) | 36,907 | (182,207 | ) | — | (153,254 | ) | ||||||||||||
Interest income (expense), net | (173,640 | ) | 21,748 | (5,422 | ) | — | (157,314 | ) | ||||||||||||
Loss on extinguishment of debt | (6,875 | ) | — | — | — | (6,875 | ) | |||||||||||||
Other income (loss), net | (234 | ) | 218 | — | — | (16 | ) | |||||||||||||
Income (loss) before income tax expense (benefit) | (188,703 | ) | 58,873 | (187,629 | ) | — | (317,459 | ) | ||||||||||||
Income tax expense (benefit) | (49,490 | ) | 6,505 | (89,814 | ) | — | (132,799 | ) | ||||||||||||
Equity in net losses of subsidiaries | (45,447 | ) | — | — | 45,447 | — | ||||||||||||||
Net income (loss) | $ | (184,660 | ) | $ | 52,368 | $ | (97,815 | ) | $ | 45,447 | $ | (184,660 | ) | |||||||
Schedule of supplemental condensed consolidating statements of comprehensive income (loss) | ' | |||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE | ||||||||||||||||||||
INCOME (LOSS) (UNAUDITED) | ||||||||||||||||||||
THREE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Net income (loss) | $ | (100,724 | ) | $ | 8,184 | $ | (45,811 | ) | $ | 37,627 | $ | (100,724 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Change in pension and postretirement benefit plans, net of tax | 4,659 | 13,338 | — | (13,338 | ) | 4,659 | ||||||||||||||
Change in unrealized gain on hedges, net of tax | 653 | 12 | — | (12 | ) | 653 | ||||||||||||||
Change in foreign currency translation adjustment | 14,847 | — | 14,847 | (14,847 | ) | 14,847 | ||||||||||||||
Change in unrealized gain on investments, net of tax | (940 | ) | — | (940 | ) | 940 | (940 | ) | ||||||||||||
Total other comprehensive income | 19,219 | 13,350 | 13,907 | (27,257 | ) | 19,219 | ||||||||||||||
Total comprehensive income (loss) | $ | (81,505 | ) | $ | 21,534 | $ | (31,904 | ) | $ | 10,370 | $ | (81,505 | ) | |||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE | ||||||||||||||||||||
INCOME (LOSS) (UNAUDITED) | ||||||||||||||||||||
THREE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Net loss | $ | (98,902 | ) | $ | (23,864 | ) | $ | (360 | ) | $ | 24,224 | $ | (98,902 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Change in pension and postretirement benefit plans, net of tax | 2,977 | 2,963 | — | (2,963 | ) | 2,977 | ||||||||||||||
Change in foreign currency translation adjustment | (21,672 | ) | — | (21,672 | ) | 21,672 | (21,672 | ) | ||||||||||||
Total other comprehensive income (loss) | (18,695 | ) | 2,963 | (21,672 | ) | 18,709 | (18,695 | ) | ||||||||||||
Total comprehensive loss | $ | (117,597 | ) | $ | (20,901 | ) | $ | (22,032 | ) | $ | 42,933 | $ | (117,597 | ) | ||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE | ||||||||||||||||||||
INCOME (LOSS) (UNAUDITED) | ||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Net loss | $ | (342,471 | ) | $ | (29,336 | ) | $ | (89,115 | ) | $ | 118,451 | $ | (342,471 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Change in pension and postretirement benefit plans, net of tax | 9,994 | 9,954 | — | (9,954 | ) | 9,994 | ||||||||||||||
Change in unrealized gain on hedges, net of tax | 1,679 | 3 | — | (3 | ) | 1,679 | ||||||||||||||
Change in foreign currency translation adjustment | (8,244 | ) | — | (8,244 | ) | 8,244 | (8,244 | ) | ||||||||||||
Total other comprehensive income (loss) | 3,429 | 9,957 | (8,244 | ) | (1,713 | ) | 3,429 | |||||||||||||
Total comprehensive loss | $ | (339,042 | ) | $ | (19,379 | ) | $ | (97,359 | ) | $ | 116,738 | $ | (339,042 | ) | ||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE | ||||||||||||||||||||
INCOME (LOSS) (UNAUDITED) | ||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Net income (loss) | $ | (184,660 | ) | $ | 52,368 | $ | (97,815 | ) | $ | 45,447 | $ | (184,660 | ) | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Change in pension and postretirement benefit plans, net of tax | 13,976 | 13,338 | — | (13,338 | ) | 13,976 | ||||||||||||||
Change in unrealized gain on hedges, net of tax | 1,901 | 49 | — | (49 | ) | 1,901 | ||||||||||||||
Change in foreign currency translation adjustment | (2,239 | ) | — | (2,239 | ) | 2,239 | (2,239 | ) | ||||||||||||
Change in unrealized gain on investments, net of tax | (897 | ) | — | (897 | ) | 897 | (897 | ) | ||||||||||||
Total other comprehensive income (loss) | 12,741 | 13,387 | (3,136 | ) | (10,251 | ) | 12,741 | |||||||||||||
Total comprehensive income (loss) | $ | (171,919 | ) | $ | 65,755 | $ | (100,951 | ) | $ | 35,196 | $ | (171,919 | ) | |||||||
Schedule of supplemental condensed consolidating statement of cash flows | ' | |||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Cash flows provided by (used in) operating activities | $ | (124,771 | ) | $ | 115,279 | $ | (11,294 | ) | $ | — | $ | (20,786 | ) | |||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Additions to property, plant and equipment | (2,758 | ) | (60,059 | ) | (6,916 | ) | — | (69,733 | ) | |||||||||||
Proceeds from sale of property, plant and equipment | — | 24,112 | — | — | 24,112 | |||||||||||||||
Intercompany loans made | (5,200 | ) | — | — | 5,200 | — | ||||||||||||||
Intercompany loans received | 1,828 | — | — | (1,828 | ) | — | ||||||||||||||
Other | — | — | 134 | — | 134 | |||||||||||||||
Cash flows used in investing activities | (6,130 | ) | (35,947 | ) | (6,782 | ) | 3,372 | (45,487 | ) | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Proceeds from issuance of debt | 869,800 | — | — | — | 869,800 | |||||||||||||||
Retirements of debt | (406,566 | ) | (5,790 | ) | (5,965 | ) | — | (418,321 | ) | |||||||||||
Dividends paid | (1,944 | ) | — | — | — | (1,944 | ) | |||||||||||||
Debt issuance costs | (27,748 | ) | — | — | — | (27,748 | ) | |||||||||||||
Advances from (to) consolidated entities | 30,043 | (73,573 | ) | 43,530 | — | — | ||||||||||||||
Intercompany notes borrowings | — | — | 5,200 | (5,200 | ) | — | ||||||||||||||
Intercompany notes payments | — | — | (1,828 | ) | 1,828 | — | ||||||||||||||
Other | (195 | ) | — | — | — | (195 | ) | |||||||||||||
Cash flows provided by (used in) financing activities | 463,390 | (79,363 | ) | 40,937 | (3,372 | ) | 421,592 | |||||||||||||
Effect of foreign exchange rates on cash | — | — | (1,514 | ) | — | (1,514 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 332,489 | (31 | ) | 21,347 | — | 353,805 | ||||||||||||||
Cash and cash equivalents at beginning of period | 234,150 | 101 | 26,567 | — | 260,818 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 566,639 | $ | 70 | $ | 47,914 | $ | — | $ | 614,623 | ||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Total | ||||||||||||||||
(Issuer) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||||||
Cash flows provided by (used in) operating activities | $ | (165,441 | ) | $ | 163,367 | $ | (41,952 | ) | $ | — | $ | (44,026 | ) | |||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Additions to property, plant and equipment | (863 | ) | (84,623 | ) | (23,249 | ) | — | (108,735 | ) | |||||||||||
Intercompany loans made | (33,100 | ) | — | — | 33,100 | — | ||||||||||||||
Intercompany loans received | 30,500 | — | — | (30,500 | ) | — | ||||||||||||||
Investments in subsidiaries | — | — | — | — | — | |||||||||||||||
Proceeds from sales of investments | — | — | 1,559 | — | 1,559 | |||||||||||||||
Other | — | — | 663 | — | 663 | |||||||||||||||
Cash flows used in investing activities | (3,463 | ) | (84,623 | ) | (21,027 | ) | 2,600 | (106,513 | ) | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Proceeds from issuance of debt | 897,412 | — | — | — | 897,412 | |||||||||||||||
Retirements of debt | (496,062 | ) | (14,193 | ) | — | — | (510,255 | ) | ||||||||||||
Dividends paid | (16,264 | ) | — | — | — | (16,264 | ) | |||||||||||||
Debt issuance costs | (42,128 | ) | — | — | — | (42,128 | ) | |||||||||||||
Advances from (to) consolidated entities | 4,729 | (64,763 | ) | 60,034 | — | — | ||||||||||||||
Intercompany notes borrowings | — | — | 33,100 | (33,100 | ) | — | ||||||||||||||
Intercompany notes payments | — | — | (30,500 | ) | 30,500 | — | ||||||||||||||
Other | (883 | ) | 151 | — | — | (732 | ) | |||||||||||||
Cash flows provided by (used in) financing activities | 346,804 | (78,805 | ) | 62,634 | (2,600 | ) | 328,033 | |||||||||||||
Effect of foreign exchange rates on cash | — | — | (961 | ) | — | (961 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 177,900 | (61 | ) | (1,306 | ) | — | 176,533 | |||||||||||||
Cash and cash equivalents at beginning of period | 83,833 | 61 | 32,707 | — | 116,601 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 261,733 | $ | — | $ | 31,401 | $ | — | $ | 293,134 | ||||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revision of Loss on Extinguishment of Debt | ' | ' | ' | ' |
Revision of loss on extinguishment of debt | ($3,394,000) | $874,000 | ($902,000) | $6,875,000 |
Interest expense, net | 79,231,000 | 58,362,000 | 218,065,000 | 157,314,000 |
Other income (loss), net | 1,424,000 | 593,000 | 646,000 | -16,000 |
Effect of Correction of Debt Issuance Costs | ' | ' | ' | ' |
Revision of Loss on Extinguishment of Debt | ' | ' | ' | ' |
Interest income | ' | -15,000 | ' | -809,000 |
Revision of loss on extinguishment of debt | ' | -5,167,000 | ' | -11,168,000 |
Interest expense, net | ' | 58,362,000 | ' | 157,314,000 |
Incorrect classification of accelerated amortization of debt issuance cost | ' | ' | ' | ' |
Revision of Loss on Extinguishment of Debt | ' | ' | ' | ' |
Revision of loss on extinguishment of debt | ' | 4,293,000 | ' | 4,293,000 |
Other income (loss), net | ' | 593,000 | ' | -16,000 |
Prior to revision | Effect of Correction of Debt Issuance Costs | ' | ' | ' | ' |
Revision of Loss on Extinguishment of Debt | ' | ' | ' | ' |
Interest expense, net | ' | 63,544,000 | ' | 169,291,000 |
Prior to revision | Incorrect classification of accelerated amortization of debt issuance cost | ' | ' | ' | ' |
Revision of Loss on Extinguishment of Debt | ' | ' | ' | ' |
Other income (loss), net | ' | $4,886,000 | ' | $4,277,000 |
Restructuring_and_Asset_Impair1
Restructuring and Asset Impairments (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Aug. 25, 2014 | Sep. 30, 2014 | 2-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | |
BCCT | BCCT | BCCT | Wolverine, Brule and Willow Creek mines | Wolverine, Brule and Willow Creek mines | Wolverine, Brule and Willow Creek mines | Wolverine, Brule and Willow Creek mines | Willow Creek Mine | North River Mine | ||||
Other | Canadian and U.K. Operations | Canadian and U.K. Operations | U.S. Operations | Closure | ||||||||
Asset impairments and restructuring | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Charges | ' | ' | ' | ' | ' | ' | $500,000 | ($2,400,000) | $4,700,000 | $700,000 | $10,700,000 | ' |
Proceeds from sale of property, plant and equipment | 24,112,000 | 0 | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on release of a below market contract liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000,000 |
Asset impairment charges | 23,081,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 |
Impairment charge recognized | ' | ' | ' | ' | 23,100,000 | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | $1,513,165,000 | ' | $1,637,552,000 | ' | ' | $47,500,000 | ' | ' | ' | ' | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Coal | $168,048 | $238,820 |
Raw materials and supplies | 58,026 | 73,827 |
Total inventories | $226,074 | $312,647 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income tax benefit | $30,344 | $17,000 | $75,380 | $132,799 |
Period of cumulative pre-tax loss | ' | ' | '3 years | ' |
Debt_Schedule_of_Debt_Details
Debt (Schedule of Debt) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Share data in Millions, unless otherwise specified | Aug. 07, 2014 | Apr. 23, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 07, 2014 | Apr. 23, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jul. 31, 2014 | Mar. 27, 2014 | Dec. 31, 2013 | Sep. 27, 2013 | Sep. 30, 2014 | Mar. 27, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jul. 14, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Mar. 27, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |||||||||||
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 | 9.875% senior notes | 9.875% senior notes | 9.875% senior notes | 8.50% senior notes | 8.50% senior notes | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | 9.50% senior secured notes due 2019 | 9.50% add-on senior secured notes due 2019 | 9.50% add-on senior secured notes due 2019 | 9.50% add-on senior secured notes due 2019 | First Lien Notes | First Lien Notes | First Lien 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 | Revolving credit facility and term loan B | |||||||||||||||||||
Minimum | Minimum | Maximum | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Total debt | ' | ' | $3,190,397,000 | ' | $3,190,397,000 | ' | $2,778,832,000 | $0 | [1] | $406,566,000 | [1] | $978,178,000 | [2] | $978,178,000 | [2] | ' | $0 | [2] | $0 | [2] | ' | ' | $440,000,000 | [3] | $440,000,000 | [3] | $500,000,000 | [3] | $450,000,000 | $450,000,000 | $450,000,000 | ' | ' | $450,000,000 | ' | $200,000,000 | ' | $0 | $320,000,000 | ' | $0 | $350,000,000 | ' | $0 | ' | ' | $21,877,000 | [4] | $14,876,000 | [4] | ' |
Debt discount, net | ' | ' | -19,658,000 | ' | -19,658,000 | ' | -20,788,000 | ' | -5,514,000 | -12,702,000 | -9,597,000 | ' | -1,683,000 | ' | ' | ' | -2,575,000 | -2,575,000 | -3,169,000 | ' | ' | -2,259,000 | ' | ' | -2,508,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Current debt | ' | ' | 14,178,000 | ' | 14,178,000 | ' | 9,210,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Long-term debt | ' | ' | 3,176,219,000 | ' | 3,176,219,000 | ' | 2,769,622,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Weighted average stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.00% | [1] | ' | 7.25% | [2] | ' | ' | 0.00% | [2] | ' | ' | ' | 9.88% | [3] | 9.88% | [3] | ' | 8.50% | ' | 9.50% | ' | ' | ' | ' | 9.50% | ' | ' | 9.50% | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ||||||
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | 450,000,000 | ' | 200,000,000 | ' | ' | 320,000,000 | ' | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | |||||||||||
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.88% | 9.88% | ' | 8.50% | ' | ' | 9.50% | ' | ' | 9.50% | ' | 9.50% | ' | ' | ' | ' | ' | ' | ' | 11.00% | 12.00% | ' | ' | ' | |||||||||||
Debt instrument, description of variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR or CDOR | |||||||||||
Common stock issued in exchange of debt instrument | 2.25 | 3.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Aggregate principal amount of debt exchanged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Gain (loss) on extinguishment of debt | ' | ' | $3,394,000 | ($874,000) | $902,000 | ($6,875,000) | ' | ' | ' | ' | ' | ' | $6,500,000 | ' | ' | ' | $9,900,000 | $21,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Basis spread on variable rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 675.00% | ' | ' | 550.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Rate of LIBOR floor (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
[1] | On March 27, 2014, the Company issued $200.0 million 9.50% Senior Notes due 2019 and $350.0 million 11.00%/12.00% Senior Secured PIK toggle notes due 2020 and utilized the proceeds to repay in full term loan A debt, increase liquidity and pay related fees and expenses. | ||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | As of SeptemberB 30, 2014, the revolving credit facility and term loan B interest rates were tied to LIBOR or CDOR, plus a credit spread of 550 basis points for the revolving credit facility ("revolver") and 675 basis points with a minimum LIBOR floor of 100 basis points for the term loan B. | ||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | On AprilB 23, 2014 and August 7, 2014, the Company issued an aggregate of 3.15 million shares and 2.25 million shares of its common stock, respectively, in exchange for $35.0 million and $25.0 million of its 9.875% Senior Notes due 2020, respectively. The Company recognized a net gain of $9.9 million and $21.3 million for the three and nine months ended SeptemberB 30, 2014, respectively, in gain (loss) on extinguishment of debt in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Includes capital lease obligations and an equipment financing agreement. |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | |||||||||||||||||
Share data in Millions, unless otherwise specified | Aug. 07, 2014 | Apr. 23, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 08, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Mar. 27, 2014 | Sep. 27, 2013 | Mar. 27, 2014 | Mar. 27, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 |
First Lien Notes | First Lien Notes | First Lien Notes | First Lien Notes | First Lien Notes | First Lien Notes | First Lien Notes | Revolving Credit Facility | 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 | 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 | ||||||||
Prior to December 15, 2015 | Prior to December 15, 2016 | During the twelve months commencing December 15, 2016 | During the twelve months commencing December 15, 2017 | Maximum | Minimum | Maximum | |||||||||||||||||
Prior to December 15, 2015 | |||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.50% | ' | 9.50% | 9.50% | ' | 11.00% | 12.00% | ' |
Debt agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 550.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in exchange of debt instrument | 2.25 | 3.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on extinguishment of debt | ' | ' | $3,394,000 | ($874,000) | $902,000 | ($6,875,000) | ' | ' | ' | ' | ' | ' | ' | ' | $6,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt repayment schedule, excluding interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | ' | ' | 3,580,000 | ' | 3,580,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,580,000 |
2015 | ' | ' | 12,535,000 | ' | 12,535,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,535,000 |
2016 | ' | ' | 5,762,000 | ' | 5,762,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,762,000 |
2018 | ' | ' | 978,178,000 | ' | 978,178,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | ' | ' | 2,210,000,000 | ' | 2,210,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | 76,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | $320,000,000 | ' | ' | ' | ' | ' | ' | ' | $200,000,000 | $450,000,000 | $200,000,000 | $350,000,000 | ' | ' | ' |
Debt Instrument Redemption Price Percentage Of Principal Amount Redeemed With Proceeds Of Certain Equity Offerings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Redemption Price Percentage Redeemed With Proceeds Of Certain Equity Offerings | ' | ' | ' | ' | ' | ' | ' | ' | ' | 109.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Redemption Price, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 107.13% | 102.38% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Redemption Price Percentage Due To Change In Control | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Minimum_Debt_Repayment_Sc
Debt (Minimum Debt Repayment Schedule) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ||
Total debt | $3,190,397 | $2,778,832 | ||
2014 | 3,580 | ' | ||
2015 | 12,535 | ' | ||
2016 | 5,762 | ' | ||
2018 | 978,178 | ' | ||
Thereafter | 2,210,000 | ' | ||
2011 term loan B | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total debt | 978,178 | [1] | 978,178 | [1] |
9.875% senior notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total debt | 440,000 | [2] | 500,000 | [2] |
8.50% senior notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total debt | 450,000 | 450,000 | ||
9.50% senior secured notes due 2019 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total debt | 450,000 | 450,000 | ||
9.50% add-on senior secured notes due 2019 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total debt | 200,000 | 0 | ||
First Lien Notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total debt | 320,000 | 0 | ||
11.0% / 12.0% senior secured PIK toggle notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total debt | 350,000 | 0 | ||
Other | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Total debt | 21,877 | [3] | 14,876 | [3] |
2014 | 3,580 | ' | ||
2015 | 12,535 | ' | ||
2016 | $5,762 | ' | ||
[1] | As of SeptemberB 30, 2014, the revolving credit facility and term loan B interest rates were tied to LIBOR or CDOR, plus a credit spread of 550 basis points for the revolving credit facility ("revolver") and 675 basis points with a minimum LIBOR floor of 100 basis points for the term loan B. | |||
[2] | On AprilB 23, 2014 and August 7, 2014, the Company issued an aggregate of 3.15 million shares and 2.25 million shares of its common stock, respectively, in exchange for $35.0 million and $25.0 million of its 9.875% Senior Notes due 2020, respectively. The Company recognized a net gain of $9.9 million and $21.3 million for the three and nine months ended SeptemberB 30, 2014, respectively, in gain (loss) on extinguishment of debt in the Condensed Consolidated Statements of Operations. | |||
[3] | Includes capital lease obligations and an equipment financing agreement. |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension Benefits | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | $1,701 | $1,766 | $5,103 | $5,298 |
Interest cost | 3,316 | 3,070 | 9,980 | 9,210 |
Expected return on plan assets | -4,553 | -4,235 | -13,659 | -12,705 |
Amortization of prior service cost | 61 | 66 | 183 | 198 |
Amortization of net actuarial loss | 550 | 2,434 | 1,742 | 7,302 |
Settlement loss | ' | ' | 1,627 | 0 |
Net periodic benefit cost | 1,075 | 3,101 | 4,976 | 9,303 |
Other Postretirement Benefits | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | 1,944 | 2,486 | 5,832 | 7,458 |
Interest cost | 7,726 | 7,200 | 23,178 | 21,596 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 307 | 307 | 921 | 921 |
Amortization of net actuarial loss | 3,892 | 4,714 | 11,676 | 14,182 |
Settlement loss | ' | ' | 0 | 0 |
Net periodic benefit cost | $13,869 | $14,707 | $41,607 | $44,157 |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ||||
Net income (loss) | ($98,902) | ($100,724) | ($342,471) | ($184,660) | ||||
Denominator: | ' | ' | ' | ' | ||||
Average number of common shares outstanding, Basic | 66,952,000 | [1] | 62,573,000 | [1] | 64,986,000 | [1] | 62,555,000 | [1] |
Average number of common shares outstanding, Diluted | 66,952,000 | [1] | 62,573,000 | [1] | 64,986,000 | [1] | 62,555,000 | [1] |
Net loss per share, Basic (in dollars per share) | ($1.48) | ($1.61) | ($5.27) | ($2.95) | ||||
Net loss per share, Diluted (in dollars per share) | ($1.48) | ($1.61) | ($5.27) | ($2.95) | ||||
Anti-dilutive securities excluded from earnings per share calculation | 1,727 | 675 | 1,437 | 525 | ||||
Share-based awards exercised or released | ' | ' | ' | ' | ||||
Stock options exercised | 0 | 0 | 18,300 | 24,831 | ||||
Restricted stock units vested | 3,337 | 4,558 | 81,889 | 30,234 | ||||
Total | 3,337 | 4,558 | 100,189 | 55,065 | ||||
[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 SeptemberB 30, 2014 and 2013 totaling 1,727 and 675, respectively, were excluded from the calculation above because their effect would have been anti-dilutive. Additionally, the weighted average number of stock options and restricted stock units outstanding for the nine months ended SeptemberB 30, 2014 and 2013 totaling 1,437 and 525, respectively, were excluded from the calculation above because their effect would have been anti-dilutive. |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2010 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 31, 2014 | 30-May-12 | Mar. 15, 2012 | Jan. 26, 2012 | Sep. 30, 2014 |
Environmental Matters | 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. | Walter Coke, Inc. | item | item | item | item | |||
item | item | item | |||||||
Commitments and contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extension period to submit proposed final order | '90 days | ' | ' | ' | ' | ' | ' | ' | ' |
Comment letter period | '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 | 5 | ' | ' | ' | ' |
Number of Phase II Properties Offered to Other Potentially Responsible Parties for Clean Up | ' | ' | ' | 30 | ' | ' | ' | ' | ' |
Time Limit To File Public Comment | ' | '60 days | ' | ' | ' | ' | ' | ' | ' |
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 actions | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
Number of executive directors as defendants | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Number of complaints | ' | ' | ' | ' | ' | ' | ' | 3 | 3 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Jun. 27, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 27, 2011 |
Fair Value of Financial Instruments | ' | ' | ' | ' |
Fixed rate (as a percent) | 2.00% | ' | ' | 2.00% |
Interest rate swaps | Cash flow hedging | ' | ' | ' | ' |
Fair Value of Financial Instruments | ' | ' | ' | ' |
Notional value | ' | ' | ' | $450 |
Debt instrument, description of variable rate basis | '3-month LIBOR | ' | ' | ' |
Agreement period | '3 years | ' | ' | ' |
Fixed rate (as a percent) | ' | ' | ' | 1.17% |
Amount recognized in interest expense, net effective portion | ' | ' | 1.1 | ' |
Amount recognized in other income (loss), ineffective portion | ' | 1 | 0.3 | ' |
Interest rate cap | Cash flow hedging | ' | ' | ' | ' |
Fair Value of Financial Instruments | ' | ' | ' | ' |
Notional value | ' | ' | ' | $255 |
Debt instrument, description of variable rate basis | '3-month LIBOR | ' | ' | ' |
Agreement period | '3 years | ' | ' | ' |
Fixed rate (as a percent) | ' | ' | ' | 2.00% |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (Designated as cash flow hedging instruments, USD $) | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | ||
Interest rate cap | ' | |
Entity's derivative instruments within the consolidated balance sheets | ' | |
Asset derivatives | $1 | [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 | 3,080 | [2] |
Interest rate swaps | Other current liabilities | ' | |
Entity's derivative instruments within the consolidated balance sheets | ' | |
Liability derivatives | $3,100 | |
[1] | $1 thousand was included in other current assets within the Condensed Consolidated Balance Sheet as of DecemberB 31, 2013. | |
[2] | $3.1 million was included within other current liabilities within the Condensed Consolidated Balance Sheet as of DecemberB 31, 2013. |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (Derivatives designated as cash flow hedging instruments, USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Derivatives designated as cash flow hedging instruments | ' | ' | ' | ' | ||||
Gain (loss), net of tax recognized in accumulated other comprehensive income (loss) | $0 | $1,054 | $1,303 | $3,532 | ||||
Gain, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings | 0 | [1] | -636 | [1] | -677 | [1] | -1,866 | [1] |
Loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings (ineffective portion) | 0 | [2] | 235 | [2] | 1,053 | [2] | 235 | [2] |
Interest rate cap | ' | ' | ' | ' | ||||
Derivatives designated as cash flow hedging instruments | ' | ' | ' | ' | ||||
Gain (loss), net of tax recognized in accumulated other comprehensive income (loss) | 0 | -3 | 0 | -6 | ||||
Gain, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings (ineffective portion) | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Interest rate swaps | ' | ' | ' | ' | ||||
Derivatives designated as cash flow hedging instruments | ' | ' | ' | ' | ||||
Gain (loss), net of tax recognized in accumulated other comprehensive income (loss) | 0 | 1,057 | 1,303 | 3,538 | ||||
Gain, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings | 0 | [1] | -636 | [1] | -677 | [1] | -1,866 | [1] |
Loss, net of tax, reclassified from accumulated other comprehensive income (loss) to earnings (ineffective portion) | $0 | [2] | $235 | [2] | $1,053 | [2] | $235 | [2] |
[1] | The effective portion of the interest rate swap amounts are reported within interest expense, net 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_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 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 | ' | ' | -6,941 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | ' | ' | 10,370 | ' |
Total other comprehensive income (loss) | -18,695 | 19,219 | 3,429 | 12,741 |
Balance at the end of the period | -158,829 | ' | -158,829 | ' |
Pension and other postretirement plans | ' | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | -165,150 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | 0 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | ' | ' | 9,994 | ' |
Total other comprehensive income (loss) | ' | ' | 9,994 | ' |
Balance at the end of the period | -155,156 | ' | -155,156 | ' |
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 | ' |
Balance at the end of the period | 0 | ' | 0 | ' |
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 | ' | ' | -8,244 | ' |
Total other comprehensive income (loss) | ' | ' | -8,244 | ' |
Balance at the end of the period | ($3,673) | ' | ($3,673) | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Amounts reclassified out of each component of accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Interest rate swaps (effective portion) | ($79,231,000) | ($58,362,000) | ($218,065,000) | ($157,314,000) |
Interest rate swaps (ineffective portion) | 1,424,000 | 593,000 | 646,000 | -16,000 |
Loss before income tax benefit | -129,246,000 | -117,724,000 | -417,851,000 | -317,459,000 |
Income tax benefit | 30,344,000 | 17,000,000 | 75,380,000 | 132,799,000 |
Net income (loss) | -98,902,000 | -100,724,000 | -342,471,000 | -184,660,000 |
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 | ' | ' | 1,104,000 | ' |
Net actuarial loss | ' | ' | 13,418,000 | ' |
Settlement loss | ' | ' | 1,627,000 | ' |
Loss before income tax benefit | ' | ' | 16,149,000 | ' |
Income tax benefit | ' | ' | -6,155,000 | ' |
Net income (loss) | ' | ' | 9,994,000 | ' |
Gains and losses on cash flow hedges | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Amounts reclassified out of each component of accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Loss before income tax benefit | ' | ' | 606,000 | ' |
Income tax benefit | ' | ' | -230,000 | ' |
Net income (loss) | ' | ' | 376,000 | ' |
Interest rate swaps | 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) | ' | ' | ' | ' |
Interest rate swaps (effective portion) | ' | ' | -1,095,000 | ' |
Interest rate swaps (ineffective portion) | ' | ' | $1,701,000 | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (Recurring, USD $) | 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 | 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 | $3,080 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Debt | ' | ' | ||
Debt discount | $19,658 | $20,788 | ||
2011 term loan A | ' | ' | ||
Debt | ' | ' | ||
Debt discount | ' | 5,514 | ||
2011 term loan B | ' | ' | ||
Debt | ' | ' | ||
Debt discount | 12,702 | 9,597 | ||
9.875% senior notes | ' | ' | ||
Debt | ' | ' | ||
Debt discount | 2,575 | 3,169 | ||
9.50% senior secured notes | ' | ' | ||
Debt | ' | ' | ||
Debt discount | 2,259 | 2,508 | ||
9.50% add-on senior secured notes | ' | ' | ||
Debt | ' | ' | ||
Debt premium | 2,660 | ' | ||
9.50% add-on senior secured notes | ' | ' | ||
Debt | ' | ' | ||
Debt discount | 3,099 | ' | ||
Carrying Amount | 2011 term loan A | ' | ' | ||
Debt | ' | ' | ||
Debt | 0 | [1] | 401,052 | [1] |
Carrying Amount | 2011 term loan B | ' | ' | ||
Debt | ' | ' | ||
Debt | 965,476 | [2] | 968,581 | [2] |
Carrying Amount | 9.875% senior notes | ' | ' | ||
Debt | ' | ' | ||
Debt | 437,425 | [3] | 496,831 | [3] |
Carrying Amount | 8.50% senior notes | ' | ' | ||
Debt | ' | ' | ||
Debt | 450,000 | 450,000 | ||
Carrying Amount | 9.50% senior secured notes | ' | ' | ||
Debt | ' | ' | ||
Debt | 447,741 | [4] | 447,492 | [4] |
Carrying Amount | 9.50% add-on senior secured notes | ' | ' | ||
Debt | ' | ' | ||
Debt | 202,660 | [5] | 0 | [5] |
Carrying Amount | 9.50% add-on senior secured notes | ' | ' | ||
Debt | ' | ' | ||
Debt | 316,901 | [6] | 0 | [6] |
Carrying Amount | 11.0% / 12.0% senior secured PIK toggle notes | ' | ' | ||
Debt | ' | ' | ||
Debt | 350,000 | 0 | ||
Fair Value | 2011 term loan A | ' | ' | ||
Debt | ' | ' | ||
Debt | 0 | [1] | 403,517 | [1] |
Fair Value | 2011 term loan B | ' | ' | ||
Debt | ' | ' | ||
Debt | 868,867 | [2] | 959,838 | [2] |
Fair Value | 9.875% senior notes | ' | ' | ||
Debt | ' | ' | ||
Debt | 140,800 | [3] | 431,250 | [3] |
Fair Value | 8.50% senior notes | ' | ' | ||
Debt | ' | ' | ||
Debt | 130,500 | 374,625 | ||
Fair Value | 9.50% senior secured notes | ' | ' | ||
Debt | ' | ' | ||
Debt | 405,000 | [4] | 474,750 | [4] |
Fair Value | 9.50% add-on senior secured notes | ' | ' | ||
Debt | ' | ' | ||
Debt | 180,000 | [5] | 0 | [5] |
Fair Value | 9.50% add-on senior secured notes | ' | ' | ||
Debt | ' | ' | ||
Debt | 288,000 | [6] | 0 | [6] |
Fair Value | 11.0% / 12.0% senior secured PIK toggle notes | ' | ' | ||
Debt | ' | ' | ||
Debt | $162,750 | $0 | ||
[1] | Net of debt discount of $5,514 as of DecemberB 31, 2013. | |||
[2] | Net of debt discount of $12,702 and $9,597 as of SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. | |||
[3] | Net of debt discount of $2,575 and $3,169 as of SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. | |||
[4] | Net of debt discount of $2,259 and $2,508 as of SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. | |||
[5] | Includes a premium of $2,660 as of SeptemberB 30, 2014. | |||
[6] | Net of debt discount of $3,099 as of SeptemberB 30, 2014. |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Revenues: | ' | ' | ' | ' | ' |
Total Revenues | $329,546,000 | $455,796,000 | $1,121,782,000 | $1,388,635,000 | ' |
Segment operating income (loss): | ' | ' | ' | ' | ' |
Total operating loss | -54,833,000 | -59,081,000 | -201,334,000 | -153,254,000 | ' |
Interest expense, net | -79,231,000 | -58,362,000 | -218,065,000 | -157,314,000 | ' |
Gain (loss) on extinguishment of debt | 3,394,000 | -874,000 | 902,000 | -6,875,000 | ' |
Other income (loss), net | 1,424,000 | 593,000 | 646,000 | -16,000 | ' |
Loss before income tax benefit | -129,246,000 | -117,724,000 | -417,851,000 | -317,459,000 | ' |
Income tax benefit | -30,344,000 | -17,000,000 | -75,380,000 | -132,799,000 | ' |
Net loss | -98,902,000 | -100,724,000 | -342,471,000 | -184,660,000 | ' |
Depreciation and depletion: | ' | ' | ' | ' | ' |
Total depreciation and depletion | 58,413,000 | 82,986,000 | 204,653,000 | 232,496,000 | ' |
Capital expenditures: | ' | ' | ' | ' | ' |
Total capital expenditures | 26,257,000 | 28,484,000 | 69,733,000 | 108,735,000 | ' |
Segment assets: | ' | ' | ' | ' | ' |
Total Segment assets | 5,640,512,000 | ' | 5,640,512,000 | ' | 5,590,860,000 |
Operating segment | U.S. Operations | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Total Revenues | 282,356,000 | 337,269,000 | 911,705,000 | 997,503,000 | ' |
Segment operating income (loss): | ' | ' | ' | ' | ' |
Total operating loss | -26,837,000 | -8,008,000 | -51,376,000 | 22,368,000 | ' |
Depreciation and depletion: | ' | ' | ' | ' | ' |
Total depreciation and depletion | 36,649,000 | 53,060,000 | 113,409,000 | 131,722,000 | ' |
Capital expenditures: | ' | ' | ' | ' | ' |
Total capital expenditures | 23,503,000 | 24,741,000 | 63,244,000 | 90,945,000 | ' |
Segment assets: | ' | ' | ' | ' | ' |
Total Segment assets | 1,194,515,000 | ' | 1,194,515,000 | ' | 1,265,255,000 |
Operating segment | Canadian and U.K. Operations | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Total Revenues | 46,355,000 | 119,367,000 | 206,976,000 | 390,684,000 | ' |
Segment operating income (loss): | ' | ' | ' | ' | ' |
Total operating loss | -26,598,000 | -48,022,000 | -145,642,000 | -163,135,000 | ' |
Depreciation and depletion: | ' | ' | ' | ' | ' |
Total depreciation and depletion | 21,152,000 | 29,383,000 | 89,371,000 | 99,235,000 | ' |
Capital expenditures: | ' | ' | ' | ' | ' |
Total capital expenditures | 1,687,000 | 2,867,000 | 3,731,000 | 16,412,000 | ' |
Segment assets: | ' | ' | ' | ' | ' |
Total Segment assets | 3,594,573,000 | ' | 3,594,573,000 | ' | 3,687,925,000 |
Other | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Total Revenues | 835,000 | -840,000 | 3,101,000 | 448,000 | ' |
Segment operating income (loss): | ' | ' | ' | ' | ' |
Total operating loss | -1,398,000 | -3,051,000 | -4,316,000 | -12,487,000 | ' |
Depreciation and depletion: | ' | ' | ' | ' | ' |
Total depreciation and depletion | 612,000 | 543,000 | 1,873,000 | 1,539,000 | ' |
Capital expenditures: | ' | ' | ' | ' | ' |
Total capital expenditures | 1,067,000 | 876,000 | 2,758,000 | 1,378,000 | ' |
Segment assets: | ' | ' | ' | ' | ' |
Total Segment assets | $851,424,000 | ' | $851,424,000 | ' | $637,680,000 |
Supplemental_Guarantor_and_Non2
Supplemental Guarantor and Non-Guarantor Financial Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Debt Instrument [Line Items] | ' |
Percentage of ownership interest in subsidiaries | 100.00% |
2020 Notes | ' |
Debt Instrument [Line Items] | ' |
Interest rate (as a percent) | 9.88% |
2021 Notes | ' |
Debt Instrument [Line Items] | ' |
Interest rate (as a percent) | 8.50% |
Supplemental_Guarantor_and_Non3
Supplemental Guarantor and Non-Guarantor Financial Information (Balance Sheet) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | $614,623 | $260,818 | $293,134 | $116,601 |
Receivables, net | 217,083 | 281,763 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Intercompany loans receivable | 0 | 0 | ' | ' |
Inventories | 226,074 | 312,647 | ' | ' |
Deferred income taxes | 30,246 | 37,067 | ' | ' |
Prepaid expenses | 43,320 | 39,022 | ' | ' |
Other current assets | 12,999 | 18,031 | ' | ' |
Total current assets | 1,144,345 | 949,348 | ' | ' |
Mineral interests, net | 2,867,569 | 2,905,002 | ' | ' |
Property, plant and equipment, net | 1,513,165 | 1,637,552 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Other long-term assets | 115,433 | 98,958 | ' | ' |
Total assets | 5,640,512 | 5,590,860 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Current debt | 14,178 | 9,210 | ' | ' |
Accounts payable | 51,894 | 92,712 | ' | ' |
Accrued expenses | 179,673 | 133,870 | ' | ' |
Intercompany payables | 0 | 0 | ' | ' |
Intercompany loans payable | 0 | 0 | ' | ' |
Accumulated other postretirement benefits obligation | 31,311 | 30,036 | ' | ' |
Other current liabilities | 221,409 | 214,073 | ' | ' |
Total current liabilities | 498,465 | 479,901 | ' | ' |
Long-term debt | 3,176,219 | 2,769,622 | ' | ' |
Accumulated other postretirement benefits obligation | 576,878 | 570,712 | ' | ' |
Deferred income taxes | 751,565 | 822,867 | ' | ' |
Other long-term liabilities | 182,467 | 195,064 | ' | ' |
Total liabilities | 5,185,594 | 4,838,166 | ' | ' |
Total stockholders' equity | 454,918 | 752,694 | ' | ' |
Total liabilities and stockholders' equity | 5,640,512 | 5,590,860 | ' | ' |
Reportable legal entities | Parent (Issuer) | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 566,639 | 234,150 | 261,733 | 83,833 |
Receivables, net | 101,931 | 113,936 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Intercompany loans receivable | 820 | 63,549 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Deferred income taxes | 26,794 | 23,957 | ' | ' |
Prepaid expenses | 2,364 | 2,245 | ' | ' |
Other current assets | 10,252 | 15,257 | ' | ' |
Total current assets | 708,800 | 453,094 | ' | ' |
Mineral interests, net | 0 | 0 | ' | ' |
Property, plant and equipment, net | 7,621 | 7,248 | ' | ' |
Deferred income taxes | 3,046 | 3,049 | ' | ' |
Investment in subsidiaries | 3,390,858 | 4,409,683 | ' | ' |
Other long-term assets | 87,972 | 73,564 | ' | ' |
Total assets | 4,198,297 | 4,946,638 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Current debt | 0 | 0 | ' | ' |
Accounts payable | 3,262 | 5,604 | ' | ' |
Accrued expenses | 95,150 | 34,551 | ' | ' |
Intercompany payables | 273,729 | 87,904 | ' | ' |
Intercompany loans payable | 0 | 1,104,282 | ' | ' |
Accumulated other postretirement benefits obligation | 1,370 | 94 | ' | ' |
Other current liabilities | 175,137 | 164,364 | ' | ' |
Total current liabilities | 548,648 | 1,396,799 | ' | ' |
Long-term debt | 3,168,520 | 2,763,957 | ' | ' |
Accumulated other postretirement benefits obligation | -849 | 263 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other long-term liabilities | 27,060 | 32,925 | ' | ' |
Total liabilities | 3,743,379 | 4,193,944 | ' | ' |
Total stockholders' equity | 454,918 | 752,694 | ' | ' |
Total liabilities and stockholders' equity | 4,198,297 | 4,946,638 | ' | ' |
Reportable legal entities | Guarantor Subsidiaries | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 70 | 101 | 0 | 61 |
Receivables, net | 96,058 | 90,460 | ' | ' |
Intercompany receivables | 218,633 | 30,126 | ' | ' |
Intercompany loans receivable | 0 | 1,104,282 | ' | ' |
Inventories | 112,507 | 168,434 | ' | ' |
Deferred income taxes | 2,495 | 12,154 | ' | ' |
Prepaid expenses | 36,829 | 34,011 | ' | ' |
Other current assets | 510 | 440 | ' | ' |
Total current assets | 467,102 | 1,440,008 | ' | ' |
Mineral interests, net | 6,496 | 7,294 | ' | ' |
Property, plant and equipment, net | 702,635 | 764,406 | ' | ' |
Deferred income taxes | 8,377 | 4,458 | ' | ' |
Investment in subsidiaries | 79,885 | 86,357 | ' | ' |
Other long-term assets | 17,995 | 10,323 | ' | ' |
Total assets | 1,282,490 | 2,312,846 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Current debt | 7,071 | 1,313 | ' | ' |
Accounts payable | 39,786 | 64,678 | ' | ' |
Accrued expenses | 57,269 | 53,582 | ' | ' |
Intercompany payables | 0 | 0 | ' | ' |
Intercompany loans payable | 0 | 0 | ' | ' |
Accumulated other postretirement benefits obligation | 29,941 | 29,942 | ' | ' |
Other current liabilities | 21,371 | 27,062 | ' | ' |
Total current liabilities | 155,438 | 176,577 | ' | ' |
Long-term debt | 7,544 | 0 | ' | ' |
Accumulated other postretirement benefits obligation | 577,727 | 570,449 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other long-term liabilities | 81,657 | 73,420 | ' | ' |
Total liabilities | 822,366 | 820,446 | ' | ' |
Total stockholders' equity | 460,124 | 1,492,400 | ' | ' |
Total liabilities and stockholders' equity | 1,282,490 | 2,312,846 | ' | ' |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 47,914 | 26,567 | 31,401 | 32,707 |
Receivables, net | 19,094 | 77,367 | ' | ' |
Intercompany receivables | 55,096 | 57,778 | ' | ' |
Intercompany loans receivable | 0 | 0 | ' | ' |
Inventories | 113,567 | 144,213 | ' | ' |
Deferred income taxes | 957 | 956 | ' | ' |
Prepaid expenses | 4,127 | 2,766 | ' | ' |
Other current assets | 2,237 | 2,334 | ' | ' |
Total current assets | 242,992 | 311,981 | ' | ' |
Mineral interests, net | 2,861,073 | 2,897,708 | ' | ' |
Property, plant and equipment, net | 802,909 | 865,898 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Other long-term assets | 9,466 | 15,071 | ' | ' |
Total assets | 3,916,440 | 4,090,658 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Current debt | 7,107 | 7,897 | ' | ' |
Accounts payable | 8,846 | 22,430 | ' | ' |
Accrued expenses | 27,254 | 45,737 | ' | ' |
Intercompany payables | 0 | 0 | ' | ' |
Intercompany loans payable | 820 | 63,549 | ' | ' |
Accumulated other postretirement benefits obligation | 0 | 0 | ' | ' |
Other current liabilities | 24,901 | 22,647 | ' | ' |
Total current liabilities | 68,928 | 162,260 | ' | ' |
Long-term debt | 155 | 5,665 | ' | ' |
Accumulated other postretirement benefits obligation | 0 | 0 | ' | ' |
Deferred income taxes | 762,988 | 830,374 | ' | ' |
Other long-term liabilities | 73,750 | 88,719 | ' | ' |
Total liabilities | 905,821 | 1,087,018 | ' | ' |
Total stockholders' equity | 3,010,619 | 3,003,640 | ' | ' |
Total liabilities and stockholders' equity | 3,916,440 | 4,090,658 | ' | ' |
Eliminations | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | 0 | 0 | ' | ' |
Intercompany receivables | -273,729 | -87,904 | ' | ' |
Intercompany loans receivable | -820 | -1,167,831 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Prepaid expenses | 0 | 0 | ' | ' |
Other current assets | 0 | 0 | ' | ' |
Total current assets | -274,549 | -1,255,735 | ' | ' |
Mineral interests, net | 0 | 0 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Deferred income taxes | -11,423 | -7,507 | ' | ' |
Investment in subsidiaries | -3,470,743 | -4,496,040 | ' | ' |
Other long-term assets | 0 | 0 | ' | ' |
Total assets | -3,756,715 | -5,759,282 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Current debt | 0 | 0 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Accrued expenses | 0 | 0 | ' | ' |
Intercompany payables | -273,729 | -87,904 | ' | ' |
Intercompany loans payable | -820 | -1,167,831 | ' | ' |
Accumulated other postretirement benefits obligation | 0 | 0 | ' | ' |
Other current liabilities | 0 | 0 | ' | ' |
Total current liabilities | -274,549 | -1,255,735 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Accumulated other postretirement benefits obligation | 0 | 0 | ' | ' |
Deferred income taxes | -11,423 | -7,507 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Total liabilities | -285,972 | -1,263,242 | ' | ' |
Total stockholders' equity | -3,470,743 | -4,496,040 | ' | ' |
Total liabilities and stockholders' equity | ($3,756,715) | ($5,759,282) | ' | ' |
Supplemental_Guarantor_and_Non4
Supplemental Guarantor and Non-Guarantor Financial Information (Income Statement) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenues: | ' | ' | ' | ' |
Sales | $319,542,000 | $445,937,000 | $1,102,753,000 | $1,373,344,000 |
Miscellaneous income | 10,004,000 | 9,859,000 | 19,029,000 | 15,291,000 |
Total revenues | 329,546,000 | 455,796,000 | 1,121,782,000 | 1,388,635,000 |
Costs and expenses: | ' | ' | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 297,925,000 | 395,311,000 | 991,561,000 | 1,183,861,000 |
Depreciation and depletion | 58,413,000 | 82,986,000 | 204,653,000 | 232,496,000 |
Selling, general and administrative | 16,598,000 | 21,873,000 | 56,379,000 | 79,676,000 |
Postretirement benefits | 13,869,000 | 14,707,000 | 41,607,000 | 44,157,000 |
Restructuring and asset impairments | -2,426,000 | 0 | 28,916,000 | 1,699,000 |
Total costs and expenses | 384,379,000 | 514,877,000 | 1,323,116,000 | 1,541,889,000 |
Operating loss | -54,833,000 | -59,081,000 | -201,334,000 | -153,254,000 |
Interest expense, net | -79,231,000 | -58,362,000 | -218,065,000 | -157,314,000 |
Gain (loss) on extinguishment of debt | 3,394,000 | -874,000 | 902,000 | -6,875,000 |
Other income (loss), net | 1,424,000 | 593,000 | 646,000 | -16,000 |
Loss before income tax benefit | -129,246,000 | -117,724,000 | -417,851,000 | -317,459,000 |
Income tax benefit | -30,344,000 | -17,000,000 | -75,380,000 | -132,799,000 |
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | -98,902,000 | -100,724,000 | -342,471,000 | -184,660,000 |
Reportable legal entities | Parent (Issuer) | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Sales | 0 | 0 | 0 | 0 |
Miscellaneous income | -40,000 | -932,000 | 939,000 | -159,000 |
Total revenues | -40,000 | -932,000 | 939,000 | -159,000 |
Costs and expenses: | ' | ' | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 0 | 0 | 0 | 0 |
Depreciation and depletion | 612,000 | 543,000 | 1,873,000 | 1,539,000 |
Selling, general and administrative | 1,387,000 | -3,730,000 | 4,501,000 | 6,420,000 |
Postretirement benefits | -45,000 | -54,000 | -133,000 | -164,000 |
Restructuring and asset impairments | 50,000 | ' | 564,000 | 0 |
Total costs and expenses | 2,004,000 | -3,241,000 | 6,805,000 | 7,795,000 |
Operating loss | -2,044,000 | 2,309,000 | -5,866,000 | -7,954,000 |
Interest expense, net | -77,856,000 | -65,013,000 | -222,598,000 | -173,640,000 |
Gain (loss) on extinguishment of debt | 3,394,000 | -874,000 | 902,000 | -6,875,000 |
Other income (loss), net | 1,424,000 | -234,000 | 705,000 | -234,000 |
Loss before income tax benefit | -75,082,000 | -63,812,000 | -226,857,000 | -188,703,000 |
Income tax benefit | -404,000 | -715,000 | -2,837,000 | -49,490,000 |
Equity in net earnings (losses) of subsidiaries | -24,224,000 | -37,627,000 | -118,451,000 | -45,447,000 |
Net income (loss) | -98,902,000 | -100,724,000 | -342,471,000 | -184,660,000 |
Reportable legal entities | Guarantor Subsidiaries | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Sales | 270,176,000 | 302,328,000 | 854,074,000 | 916,338,000 |
Miscellaneous income | 1,818,000 | 5,669,000 | 5,512,000 | 8,638,000 |
Total revenues | 271,994,000 | 307,997,000 | 859,586,000 | 924,976,000 |
Costs and expenses: | ' | ' | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 238,470,000 | 234,913,000 | 700,424,000 | 693,904,000 |
Depreciation and depletion | 32,295,000 | 43,600,000 | 99,343,000 | 117,683,000 |
Selling, general and administrative | 10,868,000 | 13,854,000 | 34,739,000 | 41,108,000 |
Postretirement benefits | 13,914,000 | 14,761,000 | 41,740,000 | 44,321,000 |
Restructuring and asset impairments | 37,000 | ' | 23,723,000 | -8,947,000 |
Total costs and expenses | 295,584,000 | 307,128,000 | 899,969,000 | 888,069,000 |
Operating loss | -23,590,000 | 869,000 | -40,383,000 | 36,907,000 |
Interest expense, net | -257,000 | 8,465,000 | 6,705,000 | 21,748,000 |
Gain (loss) on extinguishment of debt | 0 | 0 | 0 | 0 |
Other income (loss), net | 0 | 218,000 | 0 | 218,000 |
Loss before income tax benefit | -23,847,000 | 9,552,000 | -33,678,000 | 58,873,000 |
Income tax benefit | 17,000 | 1,368,000 | -4,342,000 | 6,505,000 |
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | -23,864,000 | 8,184,000 | -29,336,000 | 52,368,000 |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Sales | 49,366,000 | 143,609,000 | 248,679,000 | 457,006,000 |
Miscellaneous income | 8,226,000 | 5,122,000 | 12,578,000 | 6,812,000 |
Total revenues | 57,592,000 | 148,731,000 | 261,257,000 | 463,818,000 |
Costs and expenses: | ' | ' | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 59,455,000 | 160,398,000 | 291,137,000 | 489,957,000 |
Depreciation and depletion | 25,506,000 | 38,843,000 | 103,437,000 | 113,274,000 |
Selling, general and administrative | 4,343,000 | 11,749,000 | 17,139,000 | 32,148,000 |
Postretirement benefits | 0 | 0 | 0 | 0 |
Restructuring and asset impairments | -2,513,000 | ' | 4,629,000 | 10,646,000 |
Total costs and expenses | 86,791,000 | 210,990,000 | 416,342,000 | 646,025,000 |
Operating loss | -29,199,000 | -62,259,000 | -155,085,000 | -182,207,000 |
Interest expense, net | -1,118,000 | -1,814,000 | -2,172,000 | -5,422,000 |
Gain (loss) on extinguishment of debt | 0 | 0 | 0 | 0 |
Other income (loss), net | 0 | 609,000 | -59,000 | 0 |
Loss before income tax benefit | -30,317,000 | -63,464,000 | -157,316,000 | -187,629,000 |
Income tax benefit | -29,957,000 | -17,653,000 | -68,201,000 | -89,814,000 |
Equity in net earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | -360,000 | -45,811,000 | -89,115,000 | -97,815,000 |
Eliminations | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Sales | 0 | 0 | 0 | 0 |
Miscellaneous income | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Costs and expenses: | ' | ' | ' | ' |
Cost of sales (exclusive of depreciation and depletion) | 0 | 0 | 0 | 0 |
Depreciation and depletion | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Postretirement benefits | 0 | 0 | 0 | 0 |
Restructuring and asset impairments | 0 | ' | 0 | 0 |
Total costs and expenses | 0 | 0 | 0 | 0 |
Operating loss | 0 | 0 | 0 | 0 |
Interest expense, net | 0 | 0 | 0 | 0 |
Gain (loss) on extinguishment of debt | 0 | 0 | 0 | 0 |
Other income (loss), net | 0 | 0 | 0 | 0 |
Loss before income tax benefit | 0 | 0 | 0 | 0 |
Income tax benefit | 0 | 0 | 0 | 0 |
Equity in net earnings (losses) of subsidiaries | 24,224,000 | 37,627,000 | 118,451,000 | 45,447,000 |
Net income (loss) | $24,224,000 | $37,627,000 | $118,451,000 | $45,447,000 |
Supplemental_Guarantor_and_Non5
Supplemental Guarantor and Non-Guarantor Financial Information (Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' | ' |
Net income (loss) | ($98,902) | ($100,724) | ($342,471) | ($184,660) |
Other comprehensive income (loss) | ' | ' | ' | ' |
Change in pension and postretirement benefit plans, net of tax | 2,977 | 4,659 | 9,994 | 13,976 |
Change in unrealized gain on hedges, net of tax | 0 | 653 | 1,679 | 1,901 |
Change in foreign currency translation adjustment | -21,672 | 14,847 | -8,244 | -2,239 |
Change in unrealized loss on investments, net of tax | 0 | -940 | 0 | -897 |
Total other comprehensive income (loss) | -18,695 | 19,219 | 3,429 | 12,741 |
Total comprehensive loss | -117,597 | -81,505 | -339,042 | -171,919 |
Reportable legal entities | Parent (Issuer) | ' | ' | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' | ' |
Net income (loss) | -98,902 | -100,724 | -342,471 | -184,660 |
Other comprehensive income (loss) | ' | ' | ' | ' |
Change in pension and postretirement benefit plans, net of tax | 2,977 | 4,659 | 9,994 | 13,976 |
Change in unrealized gain on hedges, net of tax | ' | 653 | 1,679 | 1,901 |
Change in foreign currency translation adjustment | -21,672 | 14,847 | -8,244 | -2,239 |
Change in unrealized loss on investments, net of tax | ' | -940 | ' | -897 |
Total other comprehensive income (loss) | -18,695 | 19,219 | 3,429 | 12,741 |
Total comprehensive loss | -117,597 | -81,505 | -339,042 | -171,919 |
Reportable legal entities | Guarantor Subsidiaries | ' | ' | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' | ' |
Net income (loss) | -23,864 | 8,184 | -29,336 | 52,368 |
Other comprehensive income (loss) | ' | ' | ' | ' |
Change in pension and postretirement benefit plans, net of tax | 2,963 | 13,338 | 9,954 | 13,338 |
Change in unrealized gain on hedges, net of tax | ' | 12 | 3 | 49 |
Change in foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Change in unrealized loss on investments, net of tax | ' | 0 | ' | 0 |
Total other comprehensive income (loss) | 2,963 | 13,350 | 9,957 | 13,387 |
Total comprehensive loss | -20,901 | 21,534 | -19,379 | 65,755 |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' | ' |
Net income (loss) | -360 | -45,811 | -89,115 | -97,815 |
Other comprehensive income (loss) | ' | ' | ' | ' |
Change in pension and postretirement benefit plans, net of tax | 0 | 0 | 0 | 0 |
Change in unrealized gain on hedges, net of tax | ' | 0 | 0 | 0 |
Change in foreign currency translation adjustment | -21,672 | 14,847 | -8,244 | -2,239 |
Change in unrealized loss on investments, net of tax | ' | -940 | ' | -897 |
Total other comprehensive income (loss) | -21,672 | 13,907 | -8,244 | -3,136 |
Total comprehensive loss | -22,032 | -31,904 | -97,359 | -100,951 |
Eliminations | ' | ' | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' | ' | ' |
Net income (loss) | 24,224 | 37,627 | 118,451 | 45,447 |
Other comprehensive income (loss) | ' | ' | ' | ' |
Change in pension and postretirement benefit plans, net of tax | -2,963 | -13,338 | -9,954 | -13,338 |
Change in unrealized gain on hedges, net of tax | ' | -12 | -3 | -49 |
Change in foreign currency translation adjustment | 21,672 | -14,847 | 8,244 | 2,239 |
Change in unrealized loss on investments, net of tax | ' | 940 | ' | 897 |
Total other comprehensive income (loss) | 18,709 | -27,257 | -1,713 | -10,251 |
Total comprehensive loss | $42,933 | $10,370 | $116,738 | $35,196 |
Supplemental_Guarantor_and_Non6
Supplemental Guarantor and Non-Guarantor Financial Information (Cash Flow) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Cash flows provided by (used in) operating activities | ($20,786) | ($44,026) |
INVESTING ACTIVITIES | ' | ' |
Additions to property, plant and equipment | -69,733 | -108,735 |
Proceeds from sale of property, plant and equipment | 24,112 | 0 |
Intercompany loans made | 0 | 0 |
Intercompany loans received | 0 | 0 |
Investments in subsidiaries | ' | 0 |
Other | 134 | 663 |
Cash flows used in investing activities | -45,487 | -106,513 |
Proceeds from sale of investments | 0 | 1,559 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of debt | 869,800 | 897,412 |
Retirements of debt | -418,321 | -510,255 |
Dividends paid | -1,944 | -16,264 |
Debt issuance costs | -27,748 | -42,128 |
Advances from (to) consolidated entities | 0 | 0 |
Intercompany notes borrowings | 0 | 0 |
Intercompany notes payments | 0 | 0 |
Other | -195 | -732 |
Cash flows provided by financing activities | 421,592 | 328,033 |
Effect of foreign exchange rates on cash | -1,514 | -961 |
Net increase in cash and cash equivalents | 353,805 | 176,533 |
Cash and cash equivalents at beginning of period | 260,818 | 116,601 |
Cash and cash equivalents at beginning of period | 614,623 | 293,134 |
Reportable legal entities | Parent (Issuer) | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Cash flows provided by (used in) operating activities | -124,771 | -165,441 |
INVESTING ACTIVITIES | ' | ' |
Additions to property, plant and equipment | -2,758 | -863 |
Proceeds from sale of property, plant and equipment | 0 | ' |
Intercompany loans made | -5,200 | -33,100 |
Intercompany loans received | 1,828 | 30,500 |
Investments in subsidiaries | ' | 0 |
Other | 0 | 0 |
Cash flows used in investing activities | -6,130 | -3,463 |
Proceeds from sale of investments | ' | 0 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of debt | 869,800 | 897,412 |
Retirements of debt | -406,566 | -496,062 |
Dividends paid | -1,944 | -16,264 |
Debt issuance costs | -27,748 | -42,128 |
Advances from (to) consolidated entities | 30,043 | 4,729 |
Intercompany notes borrowings | 0 | 0 |
Intercompany notes payments | 0 | 0 |
Other | -195 | -883 |
Cash flows provided by financing activities | 463,390 | 346,804 |
Effect of foreign exchange rates on cash | 0 | 0 |
Net increase in cash and cash equivalents | 332,489 | 177,900 |
Cash and cash equivalents at beginning of period | 234,150 | 83,833 |
Cash and cash equivalents at beginning of period | 566,639 | 261,733 |
Reportable legal entities | Guarantor Subsidiaries | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Cash flows provided by (used in) operating activities | 115,279 | 163,367 |
INVESTING ACTIVITIES | ' | ' |
Additions to property, plant and equipment | -60,059 | -84,623 |
Proceeds from sale of property, plant and equipment | 24,112 | ' |
Intercompany loans made | 0 | 0 |
Intercompany loans received | 0 | 0 |
Investments in subsidiaries | ' | 0 |
Other | 0 | 0 |
Cash flows used in investing activities | -35,947 | -84,623 |
Proceeds from sale of investments | ' | 0 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of debt | 0 | 0 |
Retirements of debt | -5,790 | -14,193 |
Dividends paid | 0 | 0 |
Debt issuance costs | 0 | 0 |
Advances from (to) consolidated entities | -73,573 | -64,763 |
Intercompany notes borrowings | 0 | 0 |
Intercompany notes payments | 0 | 0 |
Other | 0 | 151 |
Cash flows provided by financing activities | -79,363 | -78,805 |
Effect of foreign exchange rates on cash | 0 | 0 |
Net increase in cash and cash equivalents | -31 | -61 |
Cash and cash equivalents at beginning of period | 101 | 61 |
Cash and cash equivalents at beginning of period | 70 | 0 |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Cash flows provided by (used in) operating activities | -11,294 | -41,952 |
INVESTING ACTIVITIES | ' | ' |
Additions to property, plant and equipment | -6,916 | -23,249 |
Proceeds from sale of property, plant and equipment | 0 | ' |
Intercompany loans made | 0 | 0 |
Intercompany loans received | 0 | 0 |
Investments in subsidiaries | ' | 0 |
Other | 134 | 663 |
Cash flows used in investing activities | -6,782 | -21,027 |
Proceeds from sale of investments | ' | 1,559 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of debt | 0 | 0 |
Retirements of debt | -5,965 | 0 |
Dividends paid | 0 | 0 |
Debt issuance costs | 0 | 0 |
Advances from (to) consolidated entities | 43,530 | 60,034 |
Intercompany notes borrowings | 5,200 | 33,100 |
Intercompany notes payments | -1,828 | -30,500 |
Other | 0 | 0 |
Cash flows provided by financing activities | 40,937 | 62,634 |
Effect of foreign exchange rates on cash | -1,514 | -961 |
Net increase in cash and cash equivalents | 21,347 | -1,306 |
Cash and cash equivalents at beginning of period | 26,567 | 32,707 |
Cash and cash equivalents at beginning of period | 47,914 | 31,401 |
Eliminations | ' | ' |
Supplemental guarantor and non-guarantor financial information | ' | ' |
Cash flows provided by (used in) operating activities | 0 | 0 |
INVESTING ACTIVITIES | ' | ' |
Additions to property, plant and equipment | 0 | 0 |
Proceeds from sale of property, plant and equipment | 0 | ' |
Intercompany loans made | 5,200 | 33,100 |
Intercompany loans received | -1,828 | -30,500 |
Investments in subsidiaries | ' | 0 |
Other | 0 | 0 |
Cash flows used in investing activities | 3,372 | 2,600 |
Proceeds from sale of investments | ' | 0 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of debt | 0 | 0 |
Retirements of debt | 0 | 0 |
Dividends paid | 0 | 0 |
Debt issuance costs | 0 | 0 |
Advances from (to) consolidated entities | 0 | 0 |
Intercompany notes borrowings | -5,200 | -33,100 |
Intercompany notes payments | 1,828 | 30,500 |
Other | 0 | 0 |
Cash flows provided by financing activities | -3,372 | -2,600 |
Effect of foreign exchange rates on cash | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at beginning of period | $0 | $0 |