Arch Coal (ACI)

 

Acquisition costs allocated to coal supply agreements (sales contracts) are capitalized and amortized over the tons of coal shipped during the term of the contract. Value is allocated to coal supply agreements based on discounted cash flows attributable to the difference between the contract price and the prevailing market price at the date of acquisition. The net book value of the Company’s above-market coal supply agreements was $3.2 million and $3.5 million at December 31, 2008 and 2007, respectively. These amounts are recorded in other current assets and other assets in the accompanying consolidated balance sheets. The net book value of the below-market coal supply agreements was $0.3 million and $1.3 million at December 31, 2008 and 2007, respectively. These amounts are recorded in accrued expenses and other noncurrent liabilities in the accompanying consolidated balance sheets. Amortization expense on all above-market coal supply agreements was $0.3 million, $0.3 million and $1.0 million in 2008, 2007 and 2006, respectively. Amortization income on all below-market coal supply agreements was $1.0 million, $1.9 million and $11.8 million in 2008, 2007 and 2006, respectively.

 

 

Acquisition costs allocated to coal supply agreements (sales
contracts) are capitalized and amortized over the tons of coal
shipped during the term of the contract. Value is allocated to
coal supply agreements based on discounted cash flows
attributable to the difference between the contract price and
the prevailing market price at the date of acquisition. The net
book value of the Company’s above-market coal supply
agreements was $3.2 million and $3.5 million at
December 31, 2008 and 2007, respectively. These amounts are
recorded in other current assets and other assets in the
accompanying consolidated balance sheets. The net book value of
the below-market coal supply agreements was $0.3 million
and $1.3 million at December 31, 2008 and 2007,
respectively. These amounts are recorded in accrued expenses and
other noncurrent liabilities in the accompanying consolidated
balance sheets. Amortization expense on all above-market coal
supply agreements was $0.3 million, $0.3 million and
$1.0 million in 2008, 2007 and 2006, respectively.
Amortization income on all below-market coal supply agreements
was $1.0 million, $1.9 million and $11.8 million
in 2008, 2007 and 2006, respectively.

 

 

Acquisition costs allocated to coal supply agreements (sales contracts) are capitalized and amortized over the tons of coal shipped during the term of the contract. Value is allocated to coal supply agreements based on discounted cash flows attributable to the difference between the contract price and the prevailing market price at the date of acquisition. The net book value of the Company’s above-market coal supply agreements was $3.5 million and $3.8 million at December 31, 2007 and 2006, respectively. These amounts are recorded in other current assets and other assets in the accompanying Consolidated Balance Sheets. The net book value of the below-market coal supply agreements was $1.3 million and $3.2 million at December 31, 2007 and 2006, respectively. These amounts are recorded in accrued expenses and other noncurrent liabilities in the accompanying Consolidated Balance Sheets. Amortization expense on all above-market coal supply agreements was $0.3 million, $1.0 million and $8.0 million in 2007, 2006 and 2005, respectively. Amortization income on all below-market coal supply agreements was $1.9 million, $11.8 million and $16.0 million in 2007, 2006 and 2005, respectively.

 

 

Acquisition costs allocated to coal supply agreements (sales
contracts) are capitalized and amortized over the tons of coal
shipped during the term of the contract. Value is allocated to
coal supply agreements based on discounted cash flows
attributable to the difference between the contract price and
the prevailing market price at the date of acquisition. The net
book value of the Company’s above-market coal supply
agreements was $3.5 million and $3.8 million at
December 31, 2007 and 2006, respectively. These amounts are
recorded in other current assets and other assets in the
accompanying Consolidated Balance Sheets. The net book value of
the below-market coal supply agreements was $1.3 million
and $3.2 million at December 31, 2007 and 2006,
respectively. These amounts are recorded in accrued expenses and
other noncurrent liabilities in the accompanying Consolidated
Balance Sheets. Amortization expense on all above-market coal
supply agreements was $0.3 million, $1.0 million and
$8.0 million in 2007, 2006 and 2005, respectively.
Amortization income on all below-market coal supply agreements
was $1.9 million, $11.8 million and $16.0 million
in 2007, 2006 and 2005, respectively.