Supplemental Guarantor/Non-Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2015

Supplemental Guarantor/Non-Guarantor Financial Information

Schedule of Condensed Consolidating Statements of Operations and Comprehensive Income

Supplemental Condensed Consolidating Statement of Operations and Comprehensive Income
		(in thousands)
			Three Months Ended September 30, 2015
			Parent Guarantor (CPE Inc.)		Issuing Company (CPE Resources)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue			$	1,327	$	―	$	301,673	$	―	$	(1,327)		301,673
Costs and expenses
	Cost of product sold (exclusive of
		depreciation, depletion, amortization,
		and accretion, shown separately)		―		(1)		248,500		―		―		248,500
	Depreciation and depletion			―		530		7,366		―		―		7,896
	Amortization of port access contract rights			―		―		928		―		―		928
	Accretion			―		―		3,070		―		―		3,070
	Derivative financial instruments			―		―		10,235		―		―		10,235
	Selling, general and administrative expenses			1,878		247		12,142		―		(1,327)		12,940
	Other operating costs			―		―		646		―		―		646
Total costs and expenses				1,878		776		282,887		―		(1,327)		284,215
Operating income (loss)				(551)		(776)		18,786		―		―		17,458
Other income (expense)
	Interest income			―		37		―		―		―		37
	Interest expense			―		(10,785)		(113)		(87)		―		(10,985)
	Other, net			―		(41)		252		41		―		253
Total other income (expense)				―		(10,789)		139		(46)		―		(10,695)
Income (loss) before income tax provision and
	earnings from unconsolidated affiliates			(551)		(11,565)		18,925		(46)		―		6,763
	Income tax benefit (expense)			111		3,578		(1,495)		11		―		2,205
	Income (loss) from unconsolidated affiliates,
		net of tax		―		8		(103)		―		―		(95)
	Income (loss) from consolidated
		affiliates, net of tax		9,313		17,292		(35)		―		(26,570)		―
Net income (loss)				8,873		9,313		17,292		(35)		(26,570)		8,873
Other comprehensive income (loss)
	Postretirement medical plan amortization
		of prior service cost		313		313		313		―		(626)		313
	Income tax on postretirement medical plan			(116)		(116)		(116)		―		232		(116)
Other comprehensive income (loss)				197		197		197		―		(394)		197
Total comprehensive income (loss)			$	9,070	$	9,510	$	17,489	$	(35)	$	(26,964)	$	9,070

Supplemental Condensed Consolidating Statement of Operations and Comprehensive Income
		(in thousands)
			Three Months Ended September 30, 2014
			Parent Guarantor (CPE Inc.)		Issuing Company (CPE Resources)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue			$	2,256	$	―	$	336,242	$	6,095	$	(2,256)		342,337
Costs and expenses
	Cost of product sold (exclusive of
		depreciation, depletion, amortization,
		and accretion, shown separately)		―		12		282,402		5,932		―		288,345
	Depreciation and depletion			―		765		25,979		(929)		―		25,815
	Accretion			―		―		3,077		771		―		3,848
	Derivative financial instruments			―		―		(515)		―		―		(515)
	Selling, general and administrative expenses			2,257		189		11,973		―		(2,256)		12,163
	Other operating costs			―		―		1,099		―		―		1,099
Total costs and expenses				2,257		966		324,015		5,774		(2,256)		330,755
	Gain on sale of Decker Mine interest			―		―		(74,262)		―		―		(74,262)
Operating income (loss)				(1)		(966)		86,489		321		―		85,844
Other income (expense)
	Interest income			―		37		―		―		―		37
	Interest expense			―		(11,000)		(1,602)		(99)		―		(12,701)
	Tax agreement benefit			58,595		―		―		―		―		58,595
	Other, net			―		(84)		(30)		84		―		(31)
Total other income (expense)				58,595		(11,047)		(1,632)		(15)		―		45,900
Income (loss) before income tax provision and
	earnings from unconsolidated affiliates			58,594		(12,013)		84,857		306		―		131,744
	Income tax benefit (expense)			(21,522)		12,084		(31,499)		249		―		(40,688)
	Income (loss) from unconsolidated affiliates,
		net of tax		―		7		6		―		―		13
	Income (loss) from consolidated
		affiliates, net of tax		53,997		53,919		555		―		(108,471)		―
Net income (loss)				91,069		53,997		53,919		555		(108,471)		91,069
Other comprehensive income (loss)
	Postretirement medical plan amortization
		of prior service cost		247		247		247		―		(494)		247
	Write-off of prior service costs
	of prior service cost	related to Decker Mine pension		3,183		3,183		3,183		3,183		(9,549)		3,183
	Income tax on postretirement medical plan			(1,235)		(1,235)		(1,235)		(1,146)		3,616		(1,235)
Other comprehensive income (loss)				2,195		2,195		2,195		2,037		(6,427)		2,195
Total comprehensive income (loss)			$	93,264	$	56,192	$	56,114	$	2,592	$	(114,898)	$	93,264

Supplemental Condensed Consolidating Statement of Operations and Comprehensive Income
		(in thousands)
			Nine Months Ended September 30, 2015
			Parent Guarantor (CPE Inc.)		Issuing Company (CPE Resources)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue			$	5,602	$	―	$	863,374	$	―	$	(5,602)		863,374
Costs and expenses
	Cost of product sold (exclusive of
		depreciation, depletion, amortization and
		accretion, shown separately)		―		17		735,242		―		―		735,258
	Depreciation and depletion			―		1,822		49,920		―		―		51,742
	Amortization of port access contract rights			―		―		2,783		―		―		2,783
	Accretion			―		―		9,960		―		―		9,960
	Derivative financial instruments			―		―		17,781		―		―		17,781
	Selling, general and administrative expenses			6,162		702		35,438		―		(5,602)		36,701
	Goodwill impairment			―		―		33,355		―		―		33,355
	Other operating costs			―		―		1,163		―		―		1,163
Total costs and expenses				6,162		2,541		885,642		―		(5,602)		888,743
Operating income (loss)				(560)		(2,541)		(22,268)		―		―		(25,369)
Other income (expense)
	Interest income			―		137		―		―		―		137
	Interest expense			―		(32,855)		(3,162)		(258)		―		(36,274)
	Other, net			―		(172)		159		172		―		158
Total other income (expense)				―		(32,890)		(3,003)		(86)		―		(35,979)
Income (loss) before income tax provision and
	earnings from unconsolidated affiliates			(560)		(35,431)		(25,271)		(86)		―		(61,348)
	Income tax benefit (expense)			112		7,133		5,088		17		―		12,350
	Income (loss) from unconsolidated affiliates,
		net of tax		―		7		287		―		―		294
	Income (loss) from consolidated
		affiliates, net of tax		(48,256)		(19,965)		(69)		―		68,290		―
Net income (loss)				(48,704)		(48,256)		(19,965)		(69)		68,290		(48,704)
Other comprehensive income (loss)
	Postretirement medical plan amortization
		of prior service cost		939		939		939		―		(1,878)		939
	Income tax on postretirement medical plan			(347)		(347)		(347)		―		694		(347)
Other comprehensive income (loss)				592		592		592		―		(1,184)		592
Total comprehensive income (loss)			$	(48,112)	$	(47,664)	$	(19,373)	$	(69)	$	67,106	$	(48,112)

Supplemental Condensed Consolidating Statement of Operations and Comprehensive Income
		(in thousands)
			Nine Months Ended September 30, 2014
			Parent Guarantor (CPE Inc.)		Issuing Company (CPE Resources)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue			$	6,131	$	―	$	966,601	$	15,653	$	(6,132)		982,253
Costs and expenses
	Cost of product sold (exclusive of
		depreciation, depletion, amortization and
		accretion, shown separately)		―		209		812,355		17,841		―		830,405
	Depreciation and depletion			―		2,300		80,812		(1,168)		―		81,944
	Accretion			―		―		9,263		2,803		―		12,066
	Derivative financial instruments			―		―		(16,052)		―		―		(16,052)
	Selling, general and administrative expenses			6,132		548		36,537		―		(6,131)		37,086
	Other operating costs			―		46		1,627		―		―		1,671
Total costs and expenses				6,132		3,103		924,542		19,475		(6,131)		947,120
	Gain on sale of Decker Mine interest			―		―		(74,262)		―		―		(74,262)
Operating income (loss)				(1)		(3,103)		116,321		(3,823)		(1)		109,395
Other income (expense)
	Interest income			―		222		―		―		―		222
	Interest expense			―		(57,053)		(7,156)		(299)		―		(64,508)
	Tax agreement benefit			58,595		―		―		―		―		58,595
	Other, net			―		(865)		315		289		―		(262)
Total other income (expense)				58,595		(57,696)		(6,841)		(10)		―		(5,953)
Income (loss) before income tax provision and
	earnings from unconsolidated affiliates			58,594		(60,799)		109,480		(3,833)		(1)		103,442
	Income tax benefit (expense)			(21,522)		24,866		(35,585)		1,531		―		(30,709)
	Income (loss) from unconsolidated affiliates,
		net of tax		―		(8)		571		―		―		562
	Income (loss) from consolidated
		affiliates, net of tax		36,223		72,164		(2,302)		―		(106,085)		―
Net income (loss)				73,295		36,223		72,164		(2,302)		(106,086)		73,295
Other comprehensive income (loss)
	Postretirement medical plan amortization
		of prior service cost		741		741		741		―		(1,482)		741
	Write-off of prior service costs
	of prior service cost	related to Decker Mine pension		3,183		3,183		3,183		3,183		(9,549)		3,183
	Income tax on postretirement medical plan			(1,413)		(1,413)		(1,413)		(1,146)		3,972		(1,413)
Other comprehensive income (loss)				2,511		2,511		2,511		2,037		(7,059)		2,511
Total comprehensive income (loss)			$	75,806	$	38,734	$	74,675	$	(265)	$	(113,145)	$	75,806

Schedule of Condensed Consolidating Balance Sheet

Supplemental Condensed Consolidating Balance Sheet
(in thousands)
			September 30, 2015
			Parent Guarantor (CPE Inc.)		Issuing Company (CPE Resources)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets
	Cash and cash equivalents		$	—	$	121,055	$	2,465	$	—	$	—	$	123,519
	Accounts receivable			1		—		705		61,323		—		62,029
	Due from related parties			—		—		578,641		—		(574,490)		4,152
	Inventories, net			—		7,184		68,319		—		—		75,503
	Deferred income taxes			—		—		21,715		—		(45)		21,670
	Derivative financial instruments			—		—		7,258		—		—		7,258
	Prepaid taxes			9,388		—		—		—		—		9,388
	Other assets			577		—		16,091		—		—		16,668
		Total current assets		9,966		128,239		695,194		61,323		(574,535)		320,187
Noncurrent assets
Property, plant and equipment, net				—		5,280		1,509,482		—		—		1,514,762
Port access contract rights, net				—		—		50,997		—		—		50,997
Goodwill				—		—		2,280		—		—		2,280
Deferred income taxes				—		48,348		26,193		14		(8,637)		65,918
Other assets				1,060,437		1,890,055		41,015		—		(2,946,967)		44,540
		Total assets	$	1,070,403	$	2,071,922	$	2,325,161	$	61,337	$	(3,530,139)	$	1,998,684
LIABILITIES AND MEMBER'S EQUITY
Current liabilities
	Accounts payable		$	212	$	8,309	$	45,653	$	16	$	—	$	54,189
	Royalties and production taxes			—		—		126,139		—		—		126,139
	Accrued expenses			1,859		8,500		35,630		—		—		45,989
	Due to related parties			15,484		503,887		—		55,118		(574,490)		—
	Other liabilities			—		45		1,803		—		(45)		1,803
		Total current liabilities		17,555		520,741		209,225		55,134		(574,535)		228,120
Noncurrent liabilities
Senior notes				—		490,792		—		—		—		490,792
Asset retirement obligations, net of
	current portion			—		—		167,790		—		—		167,790
Deferred income taxes				8,637		—		—		—		(8,637)		—
Accumulated postretirement medical benefit
	obligation, net of current portion			—		—		55,401		—		—		55,401
Other liabilities				—		—		12,370		—		—		12,370
	Total liabilities			26,192		1,011,533		444,786		55,134		(583,172)		954,473
Commitments and Contingencies (Note 13)				—		—		—		—		—
Total equity				1,044,211		1,060,389		1,880,375		6,203		(2,946,967)		1,044,211
	Total liabilities and equity		$	1,070,403	$	2,071,922	$	2,325,161	$	61,337	$	(3,530,139)	$	1,998,684

Supplemental Condensed Consolidating Balance Sheet
(in thousands)
			December 31, 2014
			Parent Guarantor (CPE Inc.)		Issuing Company (CPE Resources)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets
	Cash and cash equivalents		$	—	$	167,532	$	1,213	$	—	$	—	$	168,745
	Accounts receivable			—		—		14,161		72,676		—		86,838
	Due from related parties			—		—		601,540		—		(601,313)		227
	Inventories, net			—		6,700		73,103		—		—		79,802
	Deferred income taxes			—		—		21,716		—		(46)		21,670
	Derivative financial instruments			—		—		17,111		—		—		17,111
	Prepaid taxes			3		—		—		—		—		3
	Other assets			289		6		9,541		—		—		9,837
		Total current assets		292		174,238		738,385		72,676		(601,359)		384,233
Noncurrent assets
	Property, plant and equipment, net			—		6,167		1,582,971		—		—		1,589,138
	Port access contract rights, net			—		—		53,780		—		—		53,780
	Goodwill			—		—		35,634		—		—		35,634
	Deferred income taxes			—		33,926		22,542		—		—		56,468
	Other assets			1,108,101		1,910,699		26,543		—		(3,013,443)		31,900
		Total assets	$	1,108,393	$	2,125,031	$	2,459,855	$	72,676	$	(3,614,802)	$	2,151,153
LIABILITIES AND MEMBER'S EQUITY
Current liabilities
	Accounts payable		$	—	$	1,287	$	50,679	$	68	$	—	$	52,035
	Royalties and production taxes			—		—		126,212		—		—		126,212
	Accrued expenses			6,194		5,318		40,701		—		—		52,213
	Due to related parties			14,365		520,611		—		66,337		(601,313)		—
	Current portion of federal coal lease
		obligations		—		—		63,970		—		—		63,970
	Other liabilities			—		46		1,632		—		(46)		1,632
		Total current liabilities		20,559		527,262		283,194		66,405		(601,359)		296,062
Noncurrent liabilities
	Senior notes			—		489,715		—		—		—		489,715
	Asset retirement obligations, net of
		current portion		—		—		216,241		—		—		216,241
	Accumulated postretirement medical benefit
		obligation, net of current portion		—		—		50,276		—		—		50,276
	Other liabilities			—		—		11,025		—		—		11,025
		Total liabilities		20,559		1,016,978		560,736		66,405		(601,359)		1,063,319
Commitments and Contingencies (Note 13)				—		—		—		—		—
		Total equity		1,087,834		1,108,053		1,899,119		6,271		(3,013,443)		1,087,834
		Total liabilities and equity	$	1,108,393	$	2,125,031	$	2,459,855	$	72,676	$	(3,614,802)	$	2,151,153

Schedule of Condensed Consolidating Statements of Cash Flows

Supplemental Condensed Consolidating Statement of Cash Flows
(in thousands)
		Nine Months Ended September 30, 2015
		Parent Guarantor (CPE Inc.)		Issuing Company (CPE Resources)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating
	activities	$	—	$	(43,653)	$	105,717	$	—	$	—	$	62,064
Investing activities
	Purchases of property, plant and equipment		—		(2,827)		(25,298)		—		—		(28,125)
	Cash paid for capitalized interest		—		—		(404)		—		—		(404)
	Investment in development projects		—		—		(1,526)		—		—		(1,526)
	Investment in unconsolidated affiliates		—		—		(5,383)		—		—		(5,383)
	Payment of restricted cash		—		—		(6,500)		—		—		(6,500)
	Other		—		5		180		—		—		185
Net cash provided by (used in) investing
	activities		—		(2,822)		(38,931)		—		—		(41,753)
Financing activities
	Principal payments of federal coal leases		—		—		(63,970)		—		—		(63,970)
	Payment of deferred financing costs		—		(2)		(339)		—		—		(342)
	Other		—		—		(1,225)		—		—		(1,225)
Net cash provided by (used in) financing
	activities		—		(2)		(65,534)		—		—		(65,537)
Net increase (decrease) in cash and cash equivalents			—		(46,477)		1,252		—		—		(45,226)
Cash and cash equivalents at beginning of period			—		167,532		1,213		—		—		168,745
Cash and cash equivalents at the end of period		$	—	$	121,055	$	2,465	$	—	$	—	$	123,519

Supplemental Condensed Consolidating Statement of Cash Flows
(in thousands)
		Nine Months Ended September 30, 2014
		Parent Guarantor (CPE Inc.)		Issuing Company (CPE Resources)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating
	activities	$	(891)	$	(71,744)	$	119,157	$	(4,408)	$	—	$	42,115
Investing activities
	Purchases of property, plant and equipment		—		(3,012)		(11,667)		—		—		(14,680)
	Cash paid for capitalized interest		—		—		(4,066)		—		—		(4,066)
	Investments in marketable securities		—		(8,159)		—		—		—		(8,159)
	Maturity and redemption of investments		—		88,845		—		—		—		88,845
	Investment in port access contract rights		—		—		(37,100)		—		—		(37,100)
	Investment in development projects		—		—		(3,522)		—		—		(3,522)
	Contributions made to subsidiary		—		—		(1,750)		—		1,750		—
	Distribution received from subsidiary		—		—		1,486		—		(1,486)		—
	Other		—		—		(1,830)		—		—		(1,830)
Net cash provided by (used in) investing
	activities		—		77,674		(58,449)		—		264		19,488
Financing activities
	Principal payments of federal coal leases		—		—		(58,958)		—		—		(58,958)
	Issuance of senior notes		—		200,000		—		—		—		200,000
	Repayment of senior notes		—		(300,000)		—		—		—		(300,000)
	Payment of deferred financing costs		—		(14,683)		—		—		—		(14,683)
	Contributions received from parent		—		—		—		1,750		(1,750)		—
	Distributions made to parent		—		—		—		(1,486)		1,486		—
	Other		891		—		(1,196)		—		—		(305)
Net cash provided by (used in) financing
	activities		891		(114,683)		(60,154)		264		(264)		(173,946)
Net increase (decrease) in cash and cash equivalents			—		(108,753)		554		(4,144)		—		(112,343)
Cash and cash equivalents at beginning of period			—		226,993		496		4,144		—		231,633
Cash and cash equivalents at the end of period		$	—	$	118,240	$	1,050	$	—	$	—	$	119,290