Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Ten of NACoal's wholly owned subsidiaries each meet the definition of a variable interest entity. See Note 1 for a discussion of these entities. The taxes resulting from the earnings of the unconsolidated entities are solely the responsibility of the Company. The pre-tax income from the unconsolidated mines is reported on the line “Earnings of unconsolidated mines” in the Consolidated Statements of Operations, with related taxes included in the provision for income taxes. The Company has included the pre-tax earnings of the unconsolidated mines above operating profit as they are an integral component of the Company's business and operating results. The pre-tax income from NoDak is reported on the line "Income from other unconsolidated affiliates" in the "Other (income) expense" section of the Consolidated Statement of Operations, with the related income taxes included in the provision for income taxes. The net income from NACC India is reported on the line "Income from other unconsolidated affiliates" in the "Other (income) expense" section of the Consolidated Statements of Operations. The investment in the unconsolidated entities and related tax asset was $20.2 million and $22.0 million at December 31, 2012 and 2011, respectively, and is included on the line “Other Non-current Assets” in the Consolidated Balance Sheets. The Company's maximum risk of loss relating to these entities is limited to its invested capital, which was $3.2 million, $6.3 million and $5.0 million at December 31, 2012, 2011 and 2010, respectively.

Summarized financial information for the unconsolidated mines is as follows:

	2012		2011		2010
Statement of Operations
Revenues	$	543.9	$	502.6	$	461.7
Gross profit	$	74.5	$	71.7	$	71.7
Income before income taxes	$	46.8	$	47.0	$	43.4
Income from continuing operations	$	35.6	$	36.5	$	33.1
Net income	$	35.6	$	36.5	$	33.1
Balance Sheet
Current assets	$	148.6	$	144.1
Non-current assets	$	836.3	$	685.2
Current liabilities	$	144.3	$	162.1
Non-current liabilities	$	837.4	$	660.9

NACoal received dividends of $38.8 million and $35.2 million from the unconsolidated mines in 2012 and 2011, respectively.

Legal services rendered by Jones Day approximated $3.0 million, $4.7 million and $13.7 million for the years ended December 31, 2012, 2011 and 2010, respectively. The significant increase in services rendered during 2010 related to the Applica litigation discussed further in Note 3. A director of the Company is also a partner of this law firm.