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&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&lt;b&gt;NOTE 1&amp;#151;Organization&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;On April&amp;nbsp;23, 2009, Walter Industries,&amp;nbsp;Inc. changed its name to Walter Energy,&amp;nbsp;Inc. ("Walter"). Walter, together with its consolidated subsidiaries ("the Company"), is a leading U.S. producer and exporter of premium hard coking coal for the global steel industry (Underground Mining), operates surface mines for the steam coal and industrial coal markets (Surface Mining) and produces metallurgical coke (Walter Coke). In December 2008, the Company announced the closure of its Homebuilding segment and on April&amp;nbsp;17, 2009, the Company spun off its Financing segment. As a result of the closure and spin-off, amounts previously reported in those segments are presented as discontinued operations for all periods presented. See Note&amp;nbsp;3. These actions have completed the transformation of Walter Industries,&amp;nbsp;Inc. from a diversified corporation to a pure play natural resources and energy company, now renamed Walter Energy,&amp;nbsp;Inc. &lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;Prior to the first quarter of 2009, the Company's underground and surface coal mining operations were reported together as the Natural Resources segment. Beginning with the first quarter of 2009, the Company revised its reportable segments to separate the Natural Resources segment into Underground Mining and Surface Mining. Underground Mining includes the Company's underground hard coking coal operations from the No.&amp;nbsp;4 and No.&amp;nbsp;7 mines and its natural gas operations. Surface Mining includes the Company's surface coal mining operations for Tuscaloosa Resources,&amp;nbsp;Inc. ("TRI") and Taft Coal Sales&amp;nbsp;&amp;amp; Associates,&amp;nbsp;Inc. ("Taft") as well as Walter Minerals,&amp;nbsp;Inc. (formerly known as United Land Corporation) results. In addition, during the second quarter of 2009 the Company changed the name of its metallurgical coke manufacturer from Sloss Industries Corporation to Walter Coke,&amp;nbsp;Inc. See Note&amp;nbsp;16 for segment information. &lt;/font&gt;&lt;/p&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;
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          <NonNumericTextHeader>NOTE 1&amp;#151;Organization
&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;On April&amp;nbsp;23, 2009, Walter Industries,&amp;nbsp;Inc. changed its name to Walter</NonNumericTextHeader>
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