1.0.0.3 false Business and Basis of Presentation false 1 $ false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 Business and Basis of Presentation [Abstract] 0 us-gaap_GeneralPoliciesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 Business and Basis of Presentation 1 us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0    <div style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in"> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>(1) Business and Basis of Presentation</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><b><i>Business</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Alpha Natural Resources, Inc. and its consolidated subsidiaries (the “Company”) are primarily engaged in the business of extracting, processing and marketing steam and metallurgical coal from surface and deep mines, and mainly sell to electric utilities, steel and coke producers, and industrial customers. The Company, through its subsidiaries, is also involved in marketing coal produced by others to supplement its own production and, through blending, provides its customers with coal qualities beyond those available from its own production. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On July 31, 2009, Alpha Natural Resources, Inc. (“Old Alpha”) and Foundation Coal Holdings, Inc. (“Foundation”) merged (the “Merger”) with Foundation continuing as the surviving legal corporation of the Merger. Subsequent to the Merger, Foundation was renamed Alpha Natural Resources, Inc. (the “Company” or “Alpha”). For financial accounting purposes, the Merger was treated as a reverse acquisition and Old Alpha was treated as the accounting acquirer. Accordingly, Old Alpha’s financial position as of December 31, 2008 and its results of operations for the years ended December 31, 2008 and 2007 do not include financial results for Foundation. For the year ended December 31, 2009, Foundation’s financial results are included for the five month period August 1, 2009 through December 31, 2009 (Note 20). </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At December 31, 2009, the Company’s operations consisted of 36 deep and 25 surface mines, which are located in Virginia, West Virginia, Pennsylvania, Kentucky and Wyoming. At December 31, 2009, the Company had approximately 6,400 employees, of which 21% are affiliated with union representation with the United Mine Workers of America (“UMWA”). The Company’s union represented employees are primarily located in Virginia, West Virginia and Pennsylvania. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On April 7, 2008, the Company completed concurrent public offerings of 4,181,817 shares of common stock at $41.25 per share and $287,500 aggregate principal amount of 2.375% convertible senior notes due 2015 (the “Convertible Notes”). The aggregate net proceeds from the common stock offerings and the notes offerings were $443,262 after commissions and expenses. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><b><i>Basis of Presentation</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The consolidated financial statements include Alpha and its majority owned and controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">During 2008, Old Alpha announced the permanent closure of the Whitetail Kittanning Mine, an adjacent coal preparation plant and other ancillary facilities (“Kingwood”) and sold its interest in Gallatin Materials LLC (“Gallatin”) (See Note 24). The results of Kingwood and Gallatin have been reported as discontinued operations for all periods presented. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On January 1, 2009, Old Alpha adopted Accounting Standards Codification (“ASC”) 470-20, <i>Debt with Conversion and other Options </i>(“ASC 470-20”). ASC 470-20 has been retrospectively applied as of the issuance date of April 7, 2008 for the Company’s outstanding 2.375% convertible senior notes due 2015 (“the Convertible Notes”). ASC 470-20 requires issuers of convertible debt instruments that may be settled wholly or partially in cash upon conversion to separately account for the liability and equity components in a manner reflective of the issuers’ nonconvertible debt borrowing rate. Adoption of the standard resulted in the following balance sheet impacts at December 31, 2008: (1) a reduction of debt by $87,830 and an increase in paid in capital of $69,851, (2) an increase to deferred loan costs of $5,309, (3) a net reduction to deferred tax assets of $23,124 ($36,262 reduction in deferred tax assets, offset by a $13,138 change in the valuation allowance), and (4) a net increase in retained earnings of $164. The deferred loan fees and debt discount are being amortized and accreted, respectively, over the term of the convertible notes. Interest expense of $11,704 and $8,318 was recorded for the years ended December 31, 2009 and 2008, respectively, related to amortization of the deferred loan fees and accretion of the debt discount. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The presentation and disclosure requirements of ASC 810, <i>Consolidation, </i>were adopted January 1, 2009, which require a non-controlling interest to be included in the Consolidated Balance Sheets as a separate component within shareholders’ equity separate from the parent’s equity; and consolidated net income to be reported in the Consolidated Statements of Operations as a consolidated amount and as amounts separately attributable to the parent and non-controlling interest. The presentation requirements have been applied retrospectively to all periods presented. The presentation and disclosure requirements did not have any effect on our financial condition, results of operations or cash flows. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><b><i>Reclassifications</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Prior period <i>Coal revenues</i>, <i>Other revenues </i>and <i>Other expenses </i>have been adjusted due to the reclassification of mark-to-market gains and losses on derivative swap and option agreements; forward coal sale and purchase contracts that are accounted for as derivatives; and financial settlements (“book-outs”) of coal contracts. Mark-to-market gains and losses for all derivative instruments were previously reported in <i>(Increase) Decrease in fair value of derivative instruments, net </i>in the Consolidated Statements of Operations for the years ended December 31, 2008 and 2007. Mark-to-market gains and losses on commodity swap and diesel fuel option agreements are reported in <i>Other expenses </i>and mark-to-market gains and losses on forward coal sale and purchase contracts and coal option agreements are reported in <i>Other revenues</i>. Contract settlements, which previously were reported in <i>Coal revenues</i>, are reported in <i>Other revenues</i>. As a result of the change in presentation, the following reclassifications have been made in the Consolidated Statements of Operations for the years ending December 31, 2008 and 2007: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Year ended December 31, 2008</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Year ended December 31, 2007</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Previously</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b> </b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Previously</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b> </b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>reported</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>As reported</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>reported</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>As reported</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Coal revenues </div></td> <td> </td> <td align="left">$</td> <td align="right">2,130,581</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,140,367</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,558,892</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,558,665</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other revenues </div></td> <td> </td> <td align="left">$</td> <td align="right">54,980</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">48,533</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">33,241</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">42,403</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other expenses </div></td> <td> </td> <td align="left">$</td> <td align="right">40,857</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">91,461</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">22,715</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">22,725</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">(Increase) decrease in fair value of derivative instruments, net </div></td> <td> </td> <td align="left">$</td> <td align="right">47,265</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">(8,925</td> <td align="left">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr>  </table> </div> </div>  <!-- Begin Block Tagged Note false false No definition available. 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