SUPPLEMENTAL CONSOLIDATING FINANCIAL INFORMATION (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2014

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Consolidating Balance Sheet Information

CONSOLIDATING BALANCE SHEETS⁽¹⁾

March 31, 2014

(In thousands)



Assets	Parent/ Issuer			Co-Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Current assets:
Cash and cash equivalents	$	28,759		$	4,043	$	8,794	$	20,304		$	—		$	61,900
Receivables:
Trade	—			12,456		22,857		29,402			—			64,715
Contractual third-party reclamation receivables	—			—		44		8,169			—			8,213
Intercompany receivable/payable	(2,263		)	—		3,499		(33,946		)	32,710			—
Other	273			208		244		681			(31		)	1,375
	(1,990		)	12,664		26,644		4,306			32,679			74,303
Inventories	—			1,845		15,133		18,469			—			35,447
Restricted investments and bond collateral	16,900			—		—		—			—			16,900
Other current assets	7,044			425		3,168		6,005			1			16,643
Total current assets	50,713			18,977		53,739		49,084			32,680			205,193
Property, plant and equipment:
Land and mineral rights	—			1,395		104,640		172,163			—			278,198
Plant and equipment	3,966			220,932		245,368		202,923			—			673,189
	3,966			222,327		350,008		375,086			—			951,387
Less accumulated depreciation, depletion and amortization	2,781			74,177		138,718		246,079			(1		)	461,754
Net property, plant and equipment	1,185			148,150		211,290		129,007			1			489,633
Advanced coal royalties	—			—		3,000		4,263			—			7,263
Reclamation deposits	—			—		—		75,315			—			75,315
Restricted investments and bond collateral	469,385			—		36,615		17,483			—			523,483
Contractual third-party reclamation receivables	—			—		302		87,734			—			88,036
Intangible assets	—			871		—		228			—			1,099
Investment in subsidiaries	237,926			—		—		3,770			(241,696		)	—
Other assets	15,563			—		569		4,493			(3,500		)	17,125
Total assets	$	774,772		$	167,998	$	305,515	$	371,377		$	(212,515	)	$	1,407,147

____________________

(1) This table is presented for historical information and presents WML and its subsidiaries as non-guarantor subsidiaries. WML and its subsidiaries became additional guarantor subsidiaries effective on July 31, 2014.

CONSOLIDATING BALANCE SHEETS⁽¹⁾

March 31, 2014

(In thousands)



Liabilities and Shareholders’ Deficit	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Current liabilities
Current installments of long-term debt	$	22,785		$	—		$	4,596		$	21,205		$	—		$	48,586
Accounts payable and accrued expenses:
Trade	9,000			6,331			14,710			32,557			—			62,598
Production taxes	—			405			22,442			23,947			—			46,794
Workers’ compensation	712			—			—			—			—			712
Postretirement medical benefits	12,042			—			329			1,583			1			13,955
SERP	390			—			—			—			—			390
Deferred revenue	—			9,581			4,813			1,640			—			16,034
Asset retirement obligations	—			—			3,554			18,673			—			22,227
Other current liabilities	19,196			5,053			—			172			(31		)	24,390
Total current liabilities	64,125			21,370			50,444			99,777			(30		)	235,686
Long-term debt, less current installments	677,385			—			12,912			64,848			(3,500		)	751,645
Workers’ compensation, less current portion	6,680			—			—			—			—			6,680
Excess of black lung benefit obligation over trust assets	9,376			—			—			—			—			9,376
Postretirement medical benefits, less current portion	185,447			—			50,472			35,356			—			271,275
Pension and SERP obligations, less current portion	12,921			98			9,494			1,011			—			23,524
Deferred revenue, less current portion	—			38,325			—			4,974			—			43,299
Asset retirement obligations, less current portion	—			909			51,300			206,827			—			259,036
Intangible liabilities	—			5,339			—			—			—			5,339
Other liabilities	6,440			—			—			1,063			—			7,503
Intercompany receivable/payable	18,613			—			(4,326		)	5,633			(19,920		)	—
Total liabilities	980,987			66,041			170,296			419,489			(23,450		)	1,613,363
Shareholders’ deficit
Preferred stock	121			—			—			—			—			121
Common stock	37,155			5			110			132			(247		)	37,155
Other paid-in capital	134,953			52,842			92,896			66,027			(211,766		)	134,952
Accumulated other comprehensive loss	(63,369		)	(162		)	17,372			(13,937		)	(3,273		)	(63,369		)
Accumulated earnings (deficit)	(315,075		)	49,272			24,841			(100,334		)	26,221			(315,075		)
Total equity (deficit)	(206,215		)	101,957			135,219			(48,112		)	(189,065		)	(206,216		)
Total liabilities and shareholders’ deficit	$	774,772		$	167,998		$	305,515		$	371,377		$	(212,515	)	$	1,407,147

____________________

CONSOLIDATING BALANCE SHEETS⁽¹⁾

December 31, 2013

(In thousands)



Assets	Parent/ Issuer			Co-Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Current assets:
Cash and cash equivalents	$	25,326		$	3,341	$	7,942	$	24,501		$	—		$	61,110
Receivables:
Trade	—			12,934		17,389		35,873			—			66,196
Contractual third-party reclamation receivables	—			—		44		8,443			—			8,487
Intercompany receivable/payable	(3,568		)	—		4,384		(33,681		)	32,865			—
Other	95			210		2,974		1,831			(24		)	5,086
	(3,473		)	13,144		24,791		12,466			32,841			79,769
Inventories	—			6,161		16,077		17,735			(1		)	39,972
Deferred income taxes	—			—		870		—			(870		)	—
Restricted investments and bond collateral	—			5,998		—		—			—			5,998
Other current assets	6,115			143		6,883		5,049			—			18,190
Total current assets	27,968			28,787		56,563		59,751			31,970			205,039
Property, plant and equipment:
Land and mineral rights	—			1,395		104,631		172,163			(1		)	278,188
Plant and equipment	3,939			220,872		229,998		202,886			1			657,696
	3,939			222,267		334,629		375,049			—			935,884
Less accumulated depreciation, depletion and amortization	2,705			71,653		132,189		239,302			(1		)	445,848
Net property, plant and equipment	1,234			150,614		202,440		135,747			1			490,036
Advanced coal royalties	—			—		3,000		4,311			—			7,311
Reclamation deposits	—			—		—		74,921			—			74,921
Restricted investments and bond collateral	15,134			—		36,619		17,482			—			69,235
Contractual third-party reclamation receivables	—			—		293		88,010			—			88,303
Intangible assets	—			1,283		—		238			(1		)	1,520
Investment in subsidiaries	266,847			—		—		3,770			(270,617		)	—
Other assets	8,636			—		586		3,098			(2,000		)	10,320
Total assets	$	319,819		$	180,684	$	299,501	$	387,328		$	(240,647	)	$	946,685

____________________

CONSOLIDATING BALANCE SHEETS⁽¹⁾

December 31, 2013

(In thousands)



Liabilities and Shareholders’ Deficit	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Current liabilities
Current installments of long-term debt	$	20,392		$	—		$	2,790	$	21,161		$	—		$	44,343
Accounts payable and accrued expenses:
Trade	4,122			10,119			12,522		30,743			1			57,507
Production taxes	—			3			17,429		24,472			1			41,905
Workers’ compensation	717			—			—		—			—			717
Postretirement medical benefits	12,042			—			329		1,583			1			13,955
SERP	390			—			—		—			—			390
Deferred revenue	—			9,024			3,969		1,075			—			14,068
Asset retirement obligations	—			—			3,104		20,250			(1		)	23,353
Other current liabilities	11,302			5,053			317		142			(24		)	16,790
Total current liabilities	48,965			24,199			40,460		99,426			(22		)	213,028
Long-term debt, less current installments	224,582			—			2,664		70,248			(2,000		)	295,494
Workers’ compensation, less current portion	6,744			—			—		—			—			6,744
Excess of black lung benefit obligation over trust assets	8,675			—			—		—			—			8,675
Postretirement medical benefits, less current portion	185,858			—			49,418		35,098			—			270,374
Pension and SERP obligations, less current portion	13,069			99			9,381		1,627			—			24,176
Deferred revenue, less current portion	—			41,297			—		5,271			(1		)	46,567
Asset retirement obligations, less current portion	—			892			50,472		205,147			—			256,511
Intangible liabilities	—			5,606			—		—			—			5,606
Other liabilities	5,939			—			6,220		1,450			(6,220		)	7,389
Intercompany receivable/payable	13,866			—			525		6,434			(20,825		)	—
Total liabilities	507,698			72,093			159,140		424,701			(29,068		)	1,134,564
Shareholders’ deficit
Preferred stock	160			—			—		—			—			160
Common stock	36,479			5			110		132			(247		)	36,479
Other paid-in capital	134,861			52,835			94,370		64,401			(211,606		)	134,861
Accumulated other comprehensive loss	(63,595		)	(164		)	17,492		(14,153		)	(3,175		)	(63,595		)
Accumulated earnings (deficit)	(295,784		)	55,915			28,389		(87,753		)	3,449			(295,784		)
Total equity (deficit)	(187,879		)	108,591			140,361		(37,373		)	(211,579		)	(187,879		)
Total liabilities and shareholders’ deficit	$	319,819		$	180,684		$	299,501	$	387,328		$	(240,647	)	$	946,685



Assets	Parent/ Issuer			Co-Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Current assets:
Cash and cash equivalents	$	25,326		$	3,341	$	7,942	$	24,501		$	—		$	61,110
Receivables:
Trade	—			12,934		17,389		35,873			—			66,196
Contractual third-party reclamation receivables	—			—		44		8,443			—			8,487
Intercompany receivable/payable	(3,568		)	—		4,384		(33,681		)	32,865			—
Other	95			210		2,974		1,831			(24		)	5,086
	(3,473		)	13,144		24,791		12,466			32,841			79,769
Inventories	—			6,161		16,077		17,735			(1		)	39,972
Deferred income taxes	—			—		870		—			(870		)	—
Restricted investments and bond collateral	—			5,998		—		—			—			5,998
Other current assets	6,115			143		6,883		5,049			—			18,190
Total current assets	27,968			28,787		56,563		59,751			31,970			205,039
Property, plant and equipment:
Land and mineral rights	—			1,395		104,631		172,163			(1		)	278,188
Plant and equipment	3,939			220,872		229,998		202,886			1			657,696
	3,939			222,267		334,629		375,049			—			935,884
Less accumulated depreciation, depletion and amortization	2,705			71,653		132,189		239,302			(1		)	445,848
Net property, plant and equipment	1,234			150,614		202,440		135,747			1			490,036
Advanced coal royalties	—			—		3,000		4,311			—			7,311
Reclamation deposits	—			—		—		74,921			—			74,921
Restricted investments and bond collateral	15,134			—		36,619		17,482			—			69,235
Contractual third-party reclamation receivables	—			—		293		88,010			—			88,303
Intangible assets	—			1,283		—		238			(1		)	1,520
Investment in subsidiaries	266,847			—		—		3,770			(270,617		)	—
Other assets	8,636			—		586		3,098			(2,000		)	10,320
Total assets	$	319,819		$	180,684	$	299,501	$	387,328		$	(240,647	)	$	946,685

____________________

CONSOLIDATING BALANCE SHEETS ⁽¹⁾

December 31, 2013

(In thousands)



Liabilities and Shareholders’ Deficit	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Current liabilities
Current installments of long-term debt	$	20,392		$	—		$	2,790	$	21,161		$	—		$	44,343
Accounts payable and accrued expenses:
Trade	4,122			10,119			12,522		30,743			1			57,507
Production taxes	—			3			17,429		24,472			1			41,905
Workers’ compensation	717			—			—		—			—			717
Postretirement medical benefits	12,042			—			329		1,583			1			13,955
SERP	390			—			—		—			—			390
Deferred revenue	—			9,024			3,969		1,075			—			14,068
Asset retirement obligations	—			—			3,104		20,250			(1		)	23,353
Other current liabilities	11,302			5,053			317		142			(24		)	16,790
Total current liabilities	48,965			24,199			40,460		99,426			(22		)	213,028
Long-term debt, less current installments	224,582			—			2,664		70,248			(2,000		)	295,494
Workers’ compensation, less current portion	6,744			—			—		—			—			6,744
Excess of black lung benefit obligation over trust assets	8,675			—			—		—			—			8,675
Postretirement medical benefits, less current portion	185,858			—			49,418		35,098			—			270,374
Pension and SERP obligations, less current portion	13,069			99			9,381		1,627			—			24,176
Deferred revenue, less current portion	—			41,297			—		5,271			(1		)	46,567
Asset retirement obligations, less current portion	—			892			50,472		205,147			—			256,511
Intangible liabilities	—			5,606			—		—			—			5,606
Other liabilities	5,939			—			6,220		1,450			(6,220		)	7,389
Intercompany receivable/payable	13,866			—			525		6,434			(20,825		)	—
Total liabilities	507,698			72,093			159,140		424,701			(29,068		)	1,134,564
Shareholders’ deficit
Preferred stock	160			—			—		—			—			160
Common stock	36,479			5			110		132			(247		)	36,479
Other paid-in capital	134,861			52,835			94,370		64,401			(211,606		)	134,861
Accumulated other comprehensive income (loss)	(63,595		)	(164		)	17,492		(14,153		)	(3,175		)	(63,595		)
Accumulated earnings (deficit)	(295,784		)	55,915			28,389		(87,753		)	3,449			(295,784		)
Total Westmoreland Coal Company shareholders’ deficit	(187,879		)	108,591			140,361		(37,373		)	(211,579		)	(187,879		)
Noncontrolling interest	—			—			—		—			—			—
Total equity (deficit)	(187,879		)	108,591			140,361		(37,373		)	(211,579		)	(187,879		)
Total liabilities and shareholders’ deficit	$	319,819		$	180,684		$	299,501	$	387,328		$	(240,647	)	$	946,685

____________________

CONSOLIDATING BALANCE SHEETS ⁽¹⁾

December 31, 2012

(In thousands)



Assets	Parent/ Issuer			Co-Issuer		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Total
Current assets:
Cash and cash equivalents	$	14,836		$	4,545	$	5,362		$	6,867		$	—		$	31,610
Receivables:
Trade	—			13,018		13,428			33,591			—			60,037
Contractual third-party reclamation receivables	—			—		56			10,151			—			10,207
Intercompany receivable/payable	(8,002		)	—		5,667			(30,641		)	32,976			—
Other	77			—		16,806			1,182			(14,845		)	3,220
	(7,925		)	13,018		35,957			14,283			18,131			73,464
Inventories	—			3,047		16,538			18,149			—			37,734
Other current assets	739			298		5,550			9,917			—			16,504
Total current assets	7,650			20,908		63,407			49,216			18,131			159,312
Property, plant and equipment:
Land and mineral rights	—			1,395		91,741			168,605			—			261,741
Plant and equipment	3,198			219,857		215,751			196,914			—			635,720
	3,198			221,252		307,492			365,519			—			897,461
Less accumulated depreciation, depletion and amortization	2,364			61,474		108,151			212,632			—			384,621
Net property, plant and equipment	834			159,778		199,341			152,887			—			512,840
Advanced coal royalties	—			—		500			3,816			—			4,316
Reclamation deposits	—			—		—			72,718			—			72,718
Restricted investments and bond collateral	15,183			5,990		39,208			26,828			—			87,209
Contractual third-party reclamation receivables	—			—		327			83,831			—			84,158
Intangible assets	—			2,923		—			280			—			3,203
Investment in subsidiaries	248,565			—		(792		)	3,770			(251,543		)	—
Other assets	10,267			—		635			3,457			(2,000		)	12,359
Total assets	$	282,499		$	189,599	$	302,626		$	396,803		$	(235,412	)	$	936,115

____________________

CONSOLIDATING BALANCE SHEETS ⁽¹⁾

December 31, 2012

(In thousands)



Liabilities and Shareholders’ Deficit	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Current liabilities
Current installments of long-term debt	$	(1,548	)	$	—		$	1,939		$	23,400		$	—		$	23,791
Accounts payable and accrued expenses:
Trade	4,707			4,978			15,163			42,085			(14,840		)	52,093
Production taxes	—			3			10,014			23,211			—			33,228
Workers’ compensation	820			—			—			—			—			820
Postretirement medical benefits	12,494			—			87			1,487			—			14,068
SERP	390			—			—			—			—			390
Deferred revenue	—			8,788			2,997			1,037			—			12,822
Asset retirement obligations	—			—			3,519			18,719			—			22,238
Other current liabilities	11,312			—			10			144			(4		)	11,462
Total current liabilities	28,175			13,769			33,729			110,083			(14,844		)	170,912
Long-term debt, less current installments	245,456			—			2,473			91,269			(2,000		)	337,198
Workers’ compensation, less current portion	8,710			—			—			—			—			8,710
Excess of black lung benefit obligation over trust assets	8,356			—			—			—			—			8,356
Postretirement medical benefits, less current portion	224,336			—			55,981			39,458			—			319,775
Pension and SERP obligations, less current portion	29,265			289			19,346			5,350			—			54,250
Deferred revenue, less current portion	—			50,239			—			6,652			—			56,891
Asset retirement obligations, less current portion	—			829			40,063			200,717			—			241,609
Intangible liabilities	—			6,625			—			—			—			6,625
Other liabilities	701			—			15,677			1,642			—			18,020
Intercompany receivable/payable	23,731			—			(7,972		)	35,787			(51,546		)	—
Total liabilities	568,730			71,751			159,297			490,958			(68,390		)	1,222,346
Shareholders’ deficit
Preferred stock	160			—			—			—			—			160
Common stock	35,502			5			110			132			(247		)	35,502
Other paid-in capital	130,852			52,807			93,456			62,539			(208,802		)	130,852
Accumulated other comprehensive loss	(148,345		)	(372		)	(4,987		)	(24,492		)	29,851			(148,345		)
Accumulated earnings (deficit)	(289,727		)	65,408			54,750			(132,334		)	12,176			(289,727		)
Total Westmoreland Coal Company shareholders’ deficit	(271,558		)	117,848			143,329			(94,155		)	(167,022		)	(271,558		)
Noncontrolling interest	(14,673		)	—			—			—			—			(14,673		)
Total equity (deficit)	(286,231		)	117,848			143,329			(94,155		)	(167,022		)	(286,231		)
Total liabilities and shareholders’ deficit	$	282,499		$	189,599		$	302,626		$	396,803		$	(235,412	)	$	936,115

Supplemental Consolidating Statement of Operations Information

CONSOLIDATING STATEMENTS OF OPERATIONS⁽¹⁾

Three Months Ended March 31, 2014

(In thousands)



	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	22,012		$	64,292		$	93,898		$	—		$	180,202
Costs and expenses:
Cost of sales	—			16,454			50,558			71,618			—			138,630
Depreciation, depletion and amortization	76			2,524			6,269			7,190			—			16,059
Selling and administrative	3,746			894			2,994			5,697			—			13,331
Heritage health benefit expenses	3,326			—			—			218			—			3,544
Loss (gain) on sales of assets	—			—			(1		)	39			—			38
Restructuring charges	—			397			—			—			—			397
Other operating income	—			—			150			—			—			150
	7,148			20,269			59,970			84,762			—			172,149
Operating income (loss)	(7,148		)	1,743			4,322			9,136			—			8,053
Other income (expense):
Interest expense	(18,673		)	(44		)	(110		)	(1,978		)	7			(20,798		)
Interest income	123			4			25			157			(7		)	302
Loss on foreign exchange	(6,790		)	—			—			—			—			(6,790		)
Other income	1			—			55			37			—			93
	(25,339		)	(40		)	(30		)	(1,784		)	—			(27,193		)
Income (loss) before income taxes and income of consolidated subsidiaries	(32,487		)	1,703			4,292			7,352			—			(19,140		)
Equity in income of subsidiaries	13,319			—			—			—			(13,319		)	—
Income (loss) before income taxes	(19,168		)	1,703			4,292			7,352			(13,319		)	(19,140		)
Income tax expense (benefit)	(138		)	—			(1,511		)	6,626			(5,087		)	(110		)
Net income (loss)	(19,030		)	1,703			5,803			726			(8,232		)	(19,030		)
Less net loss attributable to noncontrolling interest	—			—			—			—			—			—
Net income (loss) attributable to the Parent company	$	(19,030	)	$	1,703		$	5,803		$	726		$	(8,232	)	$	(19,030	)

____________________

CONSOLIDATING STATEMENTS OF OPERATIONS⁽¹⁾

Three Months Ended March 31, 2013

(In thousands)



	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	19,336		$	50,687		$	100,401		$	(8,976	)	$	161,448
Costs and expenses:
Cost of sales	—			16,954			40,421			82,022			(8,976		)	130,421
Depreciation, depletion and amortization	94			2,531			5,189			6,612			—			14,426
Selling and administrative	3,054			855			2,637			5,341			—			11,887
Heritage health benefit expenses	3,689			—			—			262			—			3,951
Gain on sales of assets	—			—			(133		)	(101		)	—			(234		)
Other operating income	—			—			(4,737		)	—			—			(4,737		)
	6,837			20,340			43,377			94,136			(8,976		)	155,714
Operating income (loss)	(6,837		)	(1,004		)	7,310			6,265			—			5,734
Other income (expense):
Interest expense	(7,584		)	(10		)	(74		)	(2,500		)	8			(10,160		)
Interest income	30			10			44			221			(8		)	297
Other income (loss)	—			—			92			(22		)	—			70
	(7,554		)	—			62			(2,301		)	—			(9,793		)
Income (loss) before income taxes and income of consolidated subsidiaries	(14,391		)	(1,004		)	7,372			3,964			—			(4,059		)
Equity in income of subsidiaries	10,304			—			—			—			(10,304		)	—
Income (loss) before income taxes	(4,087		)	(1,004		)	7,372			3,964			(10,304		)	(4,059		)
Income tax expense (benefit)	—			—			496			2,823			(3,291		)	28
Net income (loss)	(4,087		)	(1,004		)	6,876			1,141			(7,013		)	(4,087		)
Less net loss attributable to noncontrolling interest	(1,702		)	—			—			—			—			(1,702		)
Net income (loss) attributable to the Parent company	$	(2,385	)	$	(1,004	)	$	6,876		$	1,141		$	(7,013	)	$	(2,385	)

CONSOLIDATING STATEMENTS OF OPERATIONS ⁽¹⁾

Year Ended December 31, 2013

(In thousands)



	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	87,567		$	214,481		$	414,085		$	(41,447	)	$	674,686
Costs and expenses:
Cost of sales	—			63,794			174,204			338,769			(41,447		)	535,320
Depreciation, depletion and amortization	354			10,178			27,452			29,247			—			67,231
Selling and administrative	12,339			3,609			11,092			23,681			—			50,721
Heritage health benefit expenses	12,361			—			—			1,057			—			13,418
Loss (gain) on sales of assets	—			—			115			(189		)	—			(74		)
Restructuring charges	—			5,078			—			—			—			5,078
Other operating income	—			—			(22,367		)	(3		)	—			(22,370		)
	25,054			82,659			190,496			392,562			(41,447		)	649,324
Operating income (loss)	(25,054		)	4,908			23,985			21,523			—			25,362
Other income (expense):
Interest expense	(30,417		)	(39		)	(295		)	(9,221		)	35			(39,937		)
Loss on extinguishment of debt	(64		)	—			—			—			—			(64		)
Interest income	165			26			522			688			(35		)	1,366
Other income	1			—			328			35			—			364
	(30,315		)	(13		)	555			(8,498		)	—			(38,271		)
Income (loss) before income taxes and income of consolidated subsidiaries	(55,369		)	4,895			24,540			13,025			—			(12,909		)
Equity in income of subsidiaries	42,347			—			—			—			(42,347		)	—
Loss before income taxes	(13,022		)	4,895			24,540			13,025			(42,347		)	(12,909		)
Income tax expense (benefit)	(4,895		)	680			8,461			(47		)	(8,981		)	(4,782		)
Net income (loss)	(8,127		)	4,215			16,079			13,072			(33,366		)	(8,127		)
Less net loss attributable to noncontrolling interest	(3,430		)	—			—			—			—			(3,430		)
Net income (loss) attributable to the Parent company	$	(4,697	)	$	4,215		$	16,079		$	13,072		$	(33,366	)	$	(4,697	)

____________________

CONSOLIDATING STATEMENTS OF OPERATIONS ⁽¹⁾

Year Ended December 31, 2012

(In thousands)



	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	81,285		$	184,506		$	366,105		$	(31,459	)	$	600,437
Costs and expenses:
Cost of sales	—			59,299			134,683			303,998			(31,459		)	466,521
Depreciation, depletion and amortization	421			10,085			19,571			27,068			—			57,145
Selling and administrative	13,748			3,657			9,993			24,037			(1,527		)	49,908
Heritage health benefit expenses	12,406			—			—			982			—			13,388
Loss on sales of assets	13			—			251			264			—			528
Other operating income	—			—			(17,452		)	—			1,527			(15,925		)
	26,588			73,041			147,046			356,349			(31,459		)	571,565
Operating income (loss)	(26,588		)	8,244			37,460			9,756			—			28,872
Other income (expense):
Interest expense	(31,301		)	(39		)	(378		)	(11,039		)	80			(42,677		)
Loss on extinguishment of debt	(1,986		)	—			—			—			—			(1,986		)
Interest income	253			15			294			1,014			(80		)	1,496
Other income	190			—			395			138			—			723
	(32,844		)	(24		)	311			(9,887		)	—			(42,444		)
Income (loss) before income taxes and income of consolidated subsidiaries	(59,432		)	8,220			37,771			(131		)	—			(13,572		)
Equity in income of subsidiaries	45,762			—			—			—			(45,762		)	—
Income (loss) before income taxes	(13,670		)	8,220			37,771			(131		)	(45,762		)	(13,572		)
Income tax expense (benefit)	(8		)	107			—			4,410			(4,419		)	90
Net income (loss)	(13,662		)	8,113			37,771			(4,541		)	(41,343		)	(13,662		)
Less net loss attributable to noncontrolling interest	(6,436		)	—			—			—			—			(6,436		)
Net income (loss) attributable to the Parent company	$	(7,226	)	$	8,113		$	37,771		$	(4,541	)	$	(41,343	)	$	(7,226	)

____________________

CONSOLIDATING STATEMENTS OF OPERATIONS ⁽¹⁾

Year Ended December 31, 2011

(In thousands)



	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues	$	—		$	86,785		$	58,544		$	411,908		$	(55,524	)	$	501,713
Costs and expenses:
Cost of sales	—			60,243			49,439			338,629			(55,524		)	392,787
Depreciation, depletion and amortization	306			10,175			7,936			27,177			—			45,594
Selling and administrative	10,616			4,059			4,566			21,508			(473		)	40,276
Heritage health benefit expenses	17,754			—			—			821			—			18,575
Gain (loss) on sales of assets	3			189			59			389			—			640
Other operating income	—			—			(7,258		)	—			473			(6,785		)
	28,679			74,666			54,742			388,524			(55,524		)	491,087
Operating income (loss)	(28,679		)	12,119			3,802			23,384			—			10,626
Other income (expense):
Interest expense	(16,365		)	(469		)	(657		)	(12,370		)	92			(29,769		)
Loss on extinguishment of debt	(7,873		)	(9,073		)	(84		)	—			—			(17,030		)
Interest income	266			14			206			1,050			(92		)	1,444
Other income (loss)	(3,014		)	—			170			272			—			(2,572		)
	(26,986		)	(9,528		)	(365		)	(11,048		)	—			(47,927		)
Loss before income taxes and income of consolidated subsidiaries	(55,665		)	2,591			3,437			12,336			—			(37,301		)
Equity in income of subsidiaries	18,508			—			—			—			(18,508		)	—
Loss before income taxes	(37,157		)	2,591			3,437			12,336			(18,508		)	(37,301		)
Income tax expense (benefit)	(282		)	(2,498		)	(26		)	7,263			(4,883		)	(426		)
Net income (loss)	(36,875		)	5,089			3,463			5,073			(13,625		)	(36,875		)
Less net loss attributable to noncontrolling interest	(3,775		)	—			—			—			—			(3,775		)
Net loss attributable to the Parent company	$	(33,100	)	$	5,089		$	3,463		$	5,073		$	(13,625	)	$	(33,100	)

Supplemental Consolidating Statements of Comprehensive Income (Loss)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)⁽¹⁾

Three Months Ended March 31, 2014

(In thousands)



	Parent/Issuer			Co-Issuer		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Net income (loss)	$	(19,030	)	$	1,703	$	5,803		$	726	$	(8,232	)	$	(19,030	)
Other comprehensive income (loss)
Amortization of accumulated actuarial gains or losses, pension	359			2		—			128		(130		)	359
Amortization of accumulated actuarial gains or losses, transition obligations, and prior service costs, postretirement medical benefit	5			—		(119		)	88		31			5
Tax effect of other comprehensive income gains	(138		)	—		—			—		—			(138		)
Other comprehensive income (loss)	226			2		(119		)	216		(99		)	226
Comprehensive income (loss) attributable to the Parent company	$	(18,804	)	$	1,705	$	5,684		$	942	$	(8,331	)	$	(18,804	)

____________________

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)⁽¹⁾

Three Months Ended March 31, 2013

(In thousands)



	Parent/Issuer			Co-Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Net income (loss)	$	(4,087	)	$	(1,004	)	$	6,876	$	1,141	$	(7,013	)	$	(4,087	)
Other comprehensive income (loss)
Amortization of accumulated actuarial gains or losses, pension	741			6			—		193		(199		)	741
Amortization of accumulated actuarial gains or losses, transition obligations, and prior service costs, postretirement medical benefit	1,001			—			—		213		(213		)	1,001
Other comprehensive income (loss)	1,742			6			—		406		(412		)	1,742
Comprehensive income (loss) attributable to the Parent company	$	(2,345	)	$	(998	)	$	6,876	$	1,547	$	(7,425	)	$	(2,345	)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ⁽¹⁾

Year Ended December 31, 2013

(In thousands)



	Parent/Issuer			Co-Issuer		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total

Net income (loss)	$	(8,127	)	$	4,215	$	16,079		$	13,072		$	(33,366	)	$	(8,127	)
Other comprehensive income (loss)
Amortization of accumulated actuarial gains or losses, pension	3,490			28		—			863			(891		)	3,490
Adjustments to accumulated actuarial losses and transition obligations, pension	28,974			180		10,554			3,252			(13,986		)	28,974
Amortization of accumulated actuarial gains or losses, transition obligations, and prior service costs, postretirement medical benefit	4,005			—		—			852			(852		)	4,005
Adjustments to accumulated actuarial gains and transition obligations, postretirement medical benefits	53,230			—		11,941			5,411			(17,352		)	53,230
Tax effect of other comprehensive income gains	(4,892		)	—		—			—			—			(4,892		)
Unrealized and realized gains and losses on available-for-sale securities	(57		)	—		(17		)	(38		)	55			(57		)
Other comprehensive income	84,750			208		22,478			10,340			(33,026		)	84,750
Comprehensive income attributable to Westmoreland Coal Company	$	76,623		$	4,423	$	38,557		$	23,412		$	(66,392	)	$	76,623

____________________

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ⁽¹⁾

Year Ended December 31, 2012

(In thousands)



	Parent/Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total

Net income (loss)	$	(13,662	)	$	8,113		$	37,771		$	(4,541	)	$	(41,343	)	$	(13,662	)
Other comprehensive income (loss)
Amortization of accumulated actuarial gains or losses, pension	2,960			23			—			766			(789		)	2,960
Adjustments to accumulated actuarial losses and transition obligations, pension	(9,812		)	(52		)	(3,034		)	(2,132		)	5,218			(9,812		)
Amortization of accumulated actuarial gains or losses, transition obligations, and prior service costs, postretirement medical benefit	2,572			—			—			973			(973		)	2,572
Adjustments to accumulated actuarial gains and transition obligations, postretirement medical benefits	(22,342		)	—			(1,969		)	(865		)	2,834			(22,342		)
Unrealized and realized gains and losses on available-for-sale securities	(268		)	—			1			(65		)	64			(268		)
Other comprehensive income	(26,890		)	(29		)	(5,002		)	(1,323		)	6,354			(26,890		)
Comprehensive income (loss) attributable to Westmoreland Coal Company	$	(40,552	)	$	8,084		$	32,769		$	(5,864	)	$	(34,989	)	$	(40,552	)

____________________

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ⁽¹⁾

Year Ended December 31, 2011

(In thousands)



	Parent/Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total

Net income (loss)	$	(36,875	)	$	5,089		$	3,463		$	5,073		$	(13,625	)	$	(36,875	)
Other comprehensive income (loss)
Amortization of accumulated actuarial gains or losses, pension	1,647			9			—			702			(711		)	1,647
Adjustments to accumulated actuarial losses and transition obligations, pension	(15,798		)	(150		)	—			(444		)	594			(15,798		)
Amortization of accumulated actuarial gains or losses, transition obligations, and prior service costs, postretirement medical benefit	(288		)	—			—			295			(295		)	(288		)
Adjustments to accumulated actuarial gains and transition obligations, postretirement medical benefits	(49,136		)	—			—			(9,269		)	9,269			(49,136		)
Unrealized and realized gains and losses on available-for-sale securities	(200		)	—			(103		)	(100		)	203			(200		)
Other comprehensive income	(63,775		)	(141		)	(103		)	(8,816		)	9,060			(63,775		)
Comprehensive income (loss) attributable to Westmoreland Coal Company	$	(100,650	)	$	4,948		$	3,360		$	(3,743	)	$	(4,565	)	$	(100,650	)

____________________

Supplemental Consolidating Statement of Cash Flow Information

CONSOLIDATING STATEMENTS OF CASH FLOWS⁽¹⁾

Three Months Ended March 31, 2014

(In thousands)



Statements of Cash Flows	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net income (loss)	$	(19,030	)	$	1,703		$	5,803		$	726		$	(8,232	)	$	(19,030	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity in income of subsidiaries	(13,319		)	—			—			—			13,319			—
Depreciation, depletion, and amortization	76			2,524			6,269			7,190			—			16,059
Accretion of asset retirement obligation and receivable	—			18			1,278			2,183			—			3,479
Non-cash tax benefits	(138		)	—			—			—			—			(138		)
Amortization of intangible assets and liabilities, net	—			146			—			7			—			153
Share-based compensation	569			7			37			115			—			728
Loss (gain) on sales of assets	—			—			(1		)	39			—			38
Amortization of deferred financing costs	149			—			—			122			—			271
Loss on foreign exchange	6,790			—			—			—			—			6,790
Changes in operating assets and liabilities:
Receivables, net	(178		)	480			(2,738		)	6,104			1,534			5,202
Inventories	—			4,316			944			(735		)	—			4,525
Excess of black lung benefit obligation over trust assets	701			—			—			—			—			701
Accounts payable and accrued expenses	5,670			(3,386		)	7,356			1,327			(8		)	10,959
Deferred revenue	—			(2,415		)	844			269			—			(1,302		)
Income tax payable	—			—			—			28			—			28
Accrual for workers’ compensation	(69		)	—			—			—			—			(69		)
Asset retirement obligations	—			—			(9		)	(1,343		)	—			(1,352		)
Accrual for postretirement medical benefits	(374		)	—			935			345			—			906
Pension and SERP obligations	83			1			113			(490		)	—			(293		)
Other assets and liabilities	(183		)	(309		)	(1,616		)	(2,880		)	6,981			1,993
Distributions received from subsidiaries	42,500			—			—			—			(42,500		)	—
Net cash provided by (used in) operating activities	23,247			3,085			19,215			13,007			(28,906		)	29,648
Cash flows from investing activities:
Additions to property, plant and equipment	38			(35		)	(2,609		)	(444		)	—			(3,050		)
Change in restricted investments and bond collateral and reclamation deposits	(471,151		)	5,998			4			(395		)	—			(465,544		)



Receivable from customer for property and equipment purchases	—			—			—			(10		)	—			(10		)
Other	—			—			—			(60		)	—			(60		)
Net cash provided by (used in) investing activities	(471,113		)	5,963			(2,605		)	(909		)	—			(468,664		)
Cash flows from financing activities:
Change in book overdrafts	—			—			(317		)	2			—			(315		)
Borrowings from long-term debt	454,219			—			—			—			—			454,219
Repayments of long-term debt	—			—			(875		)	(5,364		)	—			(6,239		)
Debt issuance costs and other refinancing costs	(7,598		)	—			—			—			—			(7,598		)
Dividends/distributions	(261		)	(8,500		)	(18,000		)	(16,000		)	42,500			(261		)
Transactions with Parent/affiliates	4,939			154			3,434			5,067			(13,594		)	—
Net cash provided by (used in) financing activities	451,299			(8,346		)	(15,758		)	(16,295		)	28,906			439,806
Net increase (decrease) in cash and cash equivalents	3,433			702			852			(4,197		)	—			790
Cash and cash equivalents, beginning of period	25,326			3,341			7,942			24,501			—			61,110
Cash and cash equivalents, end of period	$	28,759		$	4,043		$	8,794		$	20,304		$	—		$	61,900

____________________

CONSOLIDATING STATEMENTS OF CASH FLOWS⁽¹⁾

Three Months Ended March 31, 2013

(In thousands)



Statements of Cash Flows	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net income (loss)	$	(4,087	)	$	(1,004	)	$	6,876		$	1,141		$	(7,013	)	$	(4,087	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity in income of subsidiaries	(10,304		)	—			—			—			10,304			—
Depreciation, depletion, and amortization	94			2,531			5,189			6,612			—			14,426
Accretion of asset retirement obligation and receivable	—			16			1,050			2,114			—			3,180
Amortization of intangible assets and liabilities, net	—			156			—			8			—			164
Share-based compensation	682			10			681			1,013			—			2,386
Gain on sales of assets	—			—			(133		)	(101		)	—			(234		)
Amortization of deferred financing costs	771			—			13			149			—			933
Loss on sales of investment securities	—			—			7			—			—			7
Changes in operating assets and liabilities:
Receivables, net	49			2,885			(2,467		)	(3,355		)	3,008			120
Inventories	—			(2,181		)	(753		)	247			—			(2,687		)
Excess of black lung benefit obligation over trust assets	83			—			—			—			—			83
Accounts payable and accrued expenses	(8,202		)	5,960			(10		)	6,979			(1,482		)	3,245
Deferred revenue	—			(1,927		)	1,703			384			—			160
Income tax payable	—			—			(1,679		)	1,706			—			27
Accrual for workers’ compensation	(191		)	—			—			—			—			(191		)
Asset retirement obligations	—			—			(190		)	(3,017		)	—			(3,207		)
Accrual for postretirement medical benefits	(100		)	—			1,478			607			—			1,985
Pension and SERP obligations	320			4			177			241			—			742
Other assets and liabilities	(187		)	465			(195		)	4,081			—			4,164
Distributions received from subsidiaries	19,600			—			—			—			(19,600		)	—
Net cash provided by (used in) operating activities	(1,472		)	6,915			11,747			18,809			(14,783		)	21,216
Cash flows from investing activities:
Additions to property, plant and equipment	(157		)	(134		)	(4,224		)	(786		)	—			(5,301		)
Change in restricted investments and bond collateral and reclamation deposits	(398		)	(3		)	(151		)	(5,883		)	—			(6,435		)
Net proceeds from sales of assets	—			—			309			132			—			441
Proceeds from the sale of investments	—			—			120			5,499			—			5,619



Receivable from customer for property and equipment purchases	—			—			—			(49		)	—		(49		)
Net cash provided by (used in) investing activities	(555		)	(137		)	(3,946		)	(1,087		)	—		(5,725		)
Cash flows from financing activities:
Change in book overdrafts	—			—			(7		)	827			—		820
Repayments of long-term debt	—			—			(713		)	(5,860		)	—		(6,573		)
Borrowings on revolving lines of credit	—			—			—			6,000			—		6,000
Repayments on revolving lines of credit	—			—			—			(6,000		)	—		(6,000		)
Debt issuance costs and other refinancing costs	—			—			—			(156		)	—		(156		)
Dividends/distributions	(340		)	(6,500		)	(8,000		)	(5,100		)	19,600		(340		)
Transactions with Parent/affiliates	(22,106		)	(16		)	2,255			4,076			15,791		—
Net cash provided by (used in) financing activities	(22,446		)	(6,516		)	(6,465		)	(6,213		)	35,391		(6,249		)
Net increase (decrease) in cash and cash equivalents	(24,473		)	262			1,336			11,509			20,608		9,242
Cash and cash equivalents, beginning of period	14,836			4,545			5,362			6,867			—		31,610
Cash and cash equivalents, end of period	$	(9,637	)	$	4,807		$	6,698		$	18,376		$	20,608	$	40,852

CONSOLIDATING STATEMENTS OF CASH FLOWS ⁽¹⁾

Year Ended December 31, 2013

(In thousands)



Statements of Cash Flows	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net income (loss)	$	(8,127	)	$	4,215		$	16,079		$	13,072		$	(33,366	)	$	(8,127	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity in income of subsidiaries	(42,347		)	—			—			—			42,347			—
Depreciation, depletion, and amortization	354			10,178			27,452			29,247			—			67,231
Accretion of asset retirement obligation and receivable	—			63			4,192			8,426			—			12,681
Non-cash tax benefits	(4,892		)	—			—			—			—			(4,892		)
Amortization of intangible assets and liabilities, net	—			622			—			43			—			665
Share-based compensation	2,437			37			914			1,934			—			5,322
Loss on sale of assets	—			—			115			(189		)	—			(74		)
Amortization of deferred financing costs	3,165			—			49			517			—			3,731
Other	—			—			(1,001		)	—			—			(1,001		)
Loss on extinguishment of debt	64			—			—			—			—			64
Gain on sales of investments	—			—			19			(22		)	—			(3		)
Changes in operating assets and liabilities:
Receivables, net	(18		)	(126		)	9,871			(4,069		)	(13,294		)	(7,636		)
Inventories	—			(3,114		)	187			415			—			(2,512		)
Excess of black lung benefit obligation over trust assets	319			—			—			—			—			319
Accounts payable and accrued expenses	(613		)	5,141			4,082			(9,852		)	14,821			13,579
Deferred revenue	—			(8,706		)	972			(1,344		)	—			(9,078		)
Income tax payable	—			—			(1,679		)	1,678			—			(1		)
Accrual for workers’ compensation	(2,069		)	—			—			—			—			(2,069		)
Asset retirement obligations	—			—			(1,971		)	(7,439		)	—			(9,410		)
Accrual for postretirement medical benefits	101			—			5,620			2,000			—			7,721
Pension and SERP obligations	1,391			18			589			390			—			2,388
Other assets and liabilities	(144		)	4,983			8,206			4,124			(5,350		)	11,819
Distributions received from subsidiaries	78,000			—			—			—			(78,000		)	—
Net cash provided by (used in) operating activities	27,621			13,311			73,696			38,931			(72,842		)	80,717
Cash flows from investing activities:
Additions to property, plant and equipment	(737		)	(790		)	(17,156		)	(9,908		)	—			(28,591		)
Change in restricted investments and bond collateral and reclamation deposits	49			(8		)	1,766			(373		)	—			1,434
Net proceeds from sales of assets	—			—			534			368			—			902



Proceeds from the sale of restricted investments	—			—			788			7,499			—			8,287
Receivable from customer for property and equipment purchases	—			—			—			(389		)	—			(389		)
Other	—			—			(2,500		)	(1,040		)	—			(3,540		)
Net cash provided by (used in) investing activities	(688		)	(798		)	(16,568		)	(3,843		)	—			(21,897		)
Cash flows from financing activities:
Change in book overdrafts	—			—			310			—			—			310
Repayments of long-term debt	(500		)	—			(2,322		)	(25,266		)	—			(28,088		)
Borrowings on revolving lines of credit	—			—			—			7,000			—			7,000
Repayments on revolving lines of credit	—			—			—			(7,000		)	—			(7,000		)
Debt issuance costs and other refinancing costs	(26		)	—			—			(156		)	—			(182		)
Dividends/distributions	(1,360		)	(14,500		)	(44,500		)	(19,000		)	78,000			(1,360		)
Transactions with Parent/affiliates	(14,557		)	783			(8,036		)	26,968			(5,158		)	—
Net cash provided by (used in) financing activities	(16,443		)	(13,717		)	(54,548		)	(17,454		)	72,842			(29,320		)
Net increase (decrease) in cash and cash equivalents	10,490			(1,204		)	2,580			17,634			—			29,500
Cash and cash equivalents, beginning of year	14,836			4,545			5,362			6,867			—			31,610
Cash and cash equivalents, end of year	$	25,326		$	3,341		$	7,942		$	24,501		$	—		$	61,110

____________________

CONSOLIDATING STATEMENTS OF CASH FLOWS ⁽¹⁾

Year Ended December 31, 2012

(In thousands)



Statements of Cash Flows	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net income (loss)	$	(13,662	)	$	8,113		$	37,771		$	(4,541	)	$	(41,343	)	$	(13,662	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity in income of subsidiaries	(45,762		)	—			—			—			45,762			—
Depreciation, depletion, and amortization	421			10,085			19,571			27,068			—			57,145
Accretion of asset retirement obligation and receivable	—			59			4,038			8,092			—			12,189
Amortization of intangible assets and liabilities, net	—			622			—			36			—			658
Share-based compensation	2,716			44			559			2,721			—			6,040
Loss (gain) on sale of assets	13			—			251			264			—			528
Amortization of deferred financing costs	2,889			—			847			622			—			4,358
Loss on extinguishment of debt	1,986			—			—			—			—			1,986
Gain on sales of investments	(190		)	—			—			25			—			(165		)
Changes in operating assets and liabilities:
Receivables, net	147			(151		)	(20,910		)	102			7,957			(12,855		)
Inventories	—			709			(2,389		)	(484		)	—			(2,164		)
Excess of black lung benefit obligation over trust assets	1,791			—			—			—			—			1,791
Accounts payable and accrued expenses	4,981			(3,209		)	18,396			5,453			(8,222		)	17,399
Deferred revenue	—			(8,312		)	772			(658		)	—			(8,198		)
Accrual for workers’ compensation	(2,096		)	—			—			—			—			(2,096		)
Asset retirement obligations	—			—			(1,198		)	(5,745		)	—			(6,943		)
Accrual for postretirement medical benefits	(524		)	—			4,858			1,857			—			6,191
Pension and SERP obligations	1,286			15			709			792			—			2,802
Other assets and liabilities	(243		)	(536		)	1,047			(10,128		)	2,000			(7,860		)
Distributions received from subsidiaries	31,971			—			—			—			(31,971		)	—
Net cash provided by (used in) operating activities	(14,276		)	7,439			64,322			25,476			(25,817		)	57,144
Cash flows from investing activities:
Additions to property, plant and equipment	(159		)	(2,067		)	(8,385		)	(10,421		)	—			(21,032		)
Change in restricted investments and bond collateral and reclamation deposits	(3,248		)	(7		)	(27,504		)	(3,133		)	—			(33,892		)
Cash payments related to acquisitions and other	4,000			—			(76,522		)	—			—			(72,522		)
Net proceeds from sales of assets	—			—			240			240			—			480
Proceeds from the sale of restricted investments	1,581			—			1,889			636			—			4,106
Receivable from customer for property and equipment purchases	—			—			—			(674		)	—			(674		)



Net cash provided by (used in) investing activities	2,174			(2,074		)	(110,282		)	(13,352		)	—			(123,534		)
Cash flows from financing activities:
Change in book overdrafts	—			(259		)	6			—			—			(253		)
Borrowings from long-term debt	119,364			—			—			—			—			119,364
Repayments of long-term debt	(23,000		)	—			(2,494		)	(19,352		)	—			(44,846		)
Borrowings on revolving lines of credit	—			—			—			16,500			—			16,500
Repayments on revolving lines of credit	—			—			—			(16,500		)	—			(16,500		)
Debt issuance costs and other refinancing costs	(5,666		)	—			—			(22		)	—			(5,688		)
Dividends/distributions	(1,360		)	(1,050		)	(19,173		)	(11,748		)	31,971			(1,360		)
Transactions with Parent/affiliates	(88,541		)	483			72,840			21,372			(6,154		)	—
Net cash provided by (used in) financing activities	797			(826		)	51,179			(9,750		)	25,817			67,217
Net increase (decrease) in cash and cash equivalents	(11,305		)	4,539			5,219			2,374			—			827
Cash and cash equivalents, beginning of year	26,141			6			143			4,493			—			30,783
Cash and cash equivalents, end of year	$	14,836		$	4,545		$	5,362		$	6,867		$	—		$	31,610

____________________

CONSOLIDATING STATEMENTS OF CASH FLOWS ⁽¹⁾

Year Ended December 31, 2011

(In thousands)



Statements of Cash Flows	Parent/ Issuer			Co-Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Cash flows from operating activities:
Net loss	$	(36,875	)	$	5,089		$	3,463		$	5,073		$	(13,625	)	$	(36,875	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity in income of subsidiaries	(18,508		)	—			—			—			18,508			—
Depreciation, depletion, and amortization	306			10,175			7,936			27,177			—			45,594
Accretion of asset retirement obligation and receivable	—			55			3,034			7,789			—			10,878
Amortization of intangible assets and liabilities, net	—			621			—			36			—			657
Share-based compensation	1,671			32			249			2,769			—			4,721
Loss (gain) on sale of assets	3			189			59			389			—			640
Amortization of deferred financing costs	1,485			(21		)	383			668			—			2,515
Loss on extinguishment of debt	7,873			9,073			84			—			—			17,030
Gain on sales of investments	—			—			(75		)	(75		)	—			(150		)
Loss on derivative instruments	3,079			—			—			—			—			3,079
Changes in operating assets and liabilities:
Receivables, net	(158		)	1,479			(4,343		)	2,263			6,250			5,491
Inventories	—			(1,820		)	134			(439		)	—			(2,125		)
Excess of black lung benefit obligation over trust assets	4,319			—			—			—			—			4,319
Accounts payable and accrued expenses	5,849			(1,063		)	378			3,103			(4,139		)	4,128
Deferred revenue	—			(8,774		)	(349		)	(795		)	—			(9,918		)
Accrual for workers’ compensation	1,248			—			—			—			—			1,248
Asset retirement obligations	—			—			(875		)	(5,635		)	—			(6,510		)
Accrual for postretirement medical benefits	(2,878		)	—			—			1,235			—			(1,643		)
Pension and SERP obligations	(4,320		)	(50		)	—			3,092			—			(1,278		)
Other assets and liabilities	444			(529		)	3,839			(392		)	(428		)	2,934
Distributions received from subsidiaries	23,400			—			—			—			(23,400		)	—
Net cash provided by (used in) operating activities	(13,062		)	14,456			13,917			46,258			(16,834		)	44,735
Cash flows from investing activities:
Additions to property, plant and equipment	(797		)	(2,119		)	(2,569		)	(22,109		)	—			(27,594		)
Change in restricted investments and bond collateral and reclamation deposits	(1,714		)	2,581			(3,738		)	(3,115		)	—			(5,986		)
Cash payments related to acquisitions and other	(4,000		)	—			—			—			—			(4,000		)
Net proceeds from sales of assets	—			—			250			437			—			687
Proceeds from the sale of investments	—			—			1,075			2,275			—			3,350



Receivable from customer for property and equipment purchases	—			—			—			(96		)	—			(96		)
Net cash provided by (used in) investing activities	(6,511		)	462			(4,982		)	(22,608		)	—			(33,639		)
Cash flows from financing activities:
Change in book overdrafts	(146		)	259			(694		)	(143		)	—			(724		)
Borrowings from long-term debt	142,500			—			—			—			—			142,500
Repayments of long-term debt	(2,532		)	(46,220		)	(11,982		)	(12,832		)	—			(73,566		)
Borrowings on revolving lines of credit	—			1,500			12,200			73,500			—			87,200
Repayments on revolving lines of credit	—			(1,500		)	(29,100		)	(75,000		)	—			(105,600		)
Debt issuance costs	(6,042		)	(9,077		)	100			—			—			(15,019		)
Exercise of stock options	422			—			—			—			—			422
Dividends/distributions	(21,301		)	(10,700		)	—			(12,700		)	23,400			(21,301		)
Transactions with Parent/affiliates	(67,458		)	49,946			20,684			3,394			(6,566		)	—
Net cash provided by (used in) financing activities	45,443			(15,792		)	(8,792		)	(23,781		)	16,834			13,912
Net increase (decrease) in cash and cash equivalents	25,870			(874		)	143			(131		)	—			25,008
Cash and cash equivalents, beginning of year	271			880			—			4,624			—			5,775
Cash and cash equivalents, end of year	$	26,141		$	6		$	143		$	4,493		$	—		$	30,783