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&lt;p class="MsoNormal" style="margin: 0in; margin-bottom: 12.0pt; font-size: 12.0pt; font-family: 'Times New Roman','serif'; text-align: justify; text-indent: .25in; text-autospace: none;"&gt;&lt;font class="_mt"&gt;&lt;font style="font-size: 10.0pt;" class="_mt"&gt;The condensed consolidated financial statements include the accounts of Peabody Energy Corporation (the Company) &lt;font class="_mt"&gt;&lt;font style="font-size: 10.0pt;" class="_mt"&gt;and its affiliates. All intercompany transactions, profits and balances have been eliminated in consolidation.&lt;/font&gt;&lt;/font&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class="MsoNormal" style="margin: 0in; margin-bottom: 12.0pt; font-size: 12.0pt; font-family: 'Times New Roman','serif'; text-align: justify; text-indent: .25in; text-autospace: none;"&gt;&lt;font class="_mt"&gt;&lt;font style="font-size: 10.0pt;" class="_mt"&gt;The accompanying condensed consolidated financial statements as of September 30, 2009 and for the three and nine months ended September 30, 2009 and 2008, and the notes thereto, are unaudited. However, in the opinion of management, these financial statements reflect all normal, recurring adjustments necessary for a fair presentation of the results of the periods presented. The balance sheet information as of December 31, 2008 has been derived from the Company&amp;#8217;s audited consolidated balance sheet as provided in the Company&amp;#8217;s Current Report on Form 8-K filed with the &lt;font class="_mt"&gt;&lt;font style="font-size: 10.0pt;" class="_mt"&gt;Securities and Exchange Commission (SEC) on August 6, 2009&lt;font class="_mt"&gt;&lt;font style="font-size: 10.0pt;" class="_mt"&gt;. The results &lt;font class="_mt"&gt;&lt;font style="font-size: 10.0pt;" class="_mt"&gt;of operations for the nine months ended September 30, 2009 are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2009.&lt;/font&gt;&lt;/font&gt;&lt;/font&gt;&lt;/font&gt;&lt;/font&gt;&lt;/font&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class="MsoNormal" style="margin: 0in; margin-bottom: 12.0pt; font-size: 12.0pt; font-family: 'Times New Roman','serif'; text-align: justify; text-indent: .25in; text-autospace: none;"&gt;&lt;font class="_mt"&gt;&lt;font style="font-size: 10.0pt;" class="_mt"&gt;The Company classifies items within discontinued operations in the unaudited condensed consolidated statements of operations when the operations and cash flows of a particular component (defined as operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity) of the Company have been (or will be) eliminated from the ongoing operations of the Company as a result of a disposal transaction, and the Company will no longer have any significant continuing involvement in the operations of that component.&lt;font class="_mt"&gt;&amp;#160; See Note 4 for additional details related to discontinued operations.&lt;/font&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
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