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This excerpt taken from the ACI 10-K filed Mar 1, 2010. Credit
Risk and Major Customers
The Company has a formal written credit policy that establishes
procedures to determine creditworthiness and credit limits for
trade customers and counterparties in the
over-the-counter
coal market. Generally, credit is extended based on an
evaluation of the customer’s financial condition.
Collateral is not generally required, unless credit cannot be
established. Credit losses are provided for in the financial
statements and historically have been minimal.
The Company markets its coal principally to electric utilities
in the United States. Sales to customers in foreign countries
were $194.4 million, $486.1 million and
$196.7 million for the years ended December 31, 2009,
2008 and 2007, respectively. As of December 31, 2009 and
2008, accounts receivable from electric utilities located in the
United States totaled $119.0 million and
$160.0 million, respectively, or 62% and 74% of total trade
receivables, respectively.
The Company is committed under long-term contracts to supply
coal that meets certain quality requirements at specified
prices. These prices are generally adjusted based on indices.
Quantities sold under some of these contracts may vary from year
to year within certain limits at the option of the customer. The
Company sold approximately 126.1 million tons of coal in
2009. Approximately 72% of this tonnage (representing
approximately 66% of the Company’s revenue) was sold under
long-term contracts (contracts having a term of greater than one
year). Prices for coal sold under long-term contracts ranged
from $6.35 to $119.00 per ton.
Table of Contents
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
Long-term contracts ranged in remaining life from one to eight
years. Sales (including spot sales) to our largest customer,
Tennessee Valley Authority, were $278.8 million,
$416.5 million and $336.4 million for the years ended
December 31, 2009, 2008 and 2007, respectively.
These excerpts taken from the ACI 10-K filed Feb 27, 2009. Credit
Risk and Major Customers
The Company has a formal written credit policy that establishes
procedures to determine creditworthiness and credit limits for
trade customers and counterparties in the over-the-counter coal
market. Generally, credit is extended based on an evaluation of
the customer’s financial condition. Collateral is not
generally required, unless credit cannot be established. Credit
losses are provided for in the financial statements and
historically have been minimal.
The Company markets its coal principally to electric utilities
in the United States. Sales to customers in foreign countries
were $486.1 million, $196.7 million and
$162.5 million for the years ended December 31, 2008,
2007 and 2006, respectively. As of December 31, 2008 and
2007, accounts receivable from electric utilities located in the
United States totaled $160.0 million and
$171.8 million, respectively, or 74% and 75% of total trade
receivables, respectively.
The Company is committed under long-term contracts to supply
coal that meets certain quality requirements at specified
prices. These prices are generally adjusted based on indices.
Quantities sold under some of these contracts may vary from year
to year within certain limits at the option of the customer. The
Company and its operating subsidiaries sold approximately
139.6 million tons of coal in 2008. Approximately 76% of
this tonnage (representing approximately 66% of the
Company’s revenue) was sold under long-term contracts
(contracts having a term of greater than one year). Prices for
coal sold under long-term contracts ranged from $7.07 to $180.00
per ton. Long-term contracts ranged in remaining life from one
to nine years. Sales (including spot sales) to our largest
customer, Tennessee Valley Authority, were $416.5 million,
$336.4 million and $317.8 million for the years ended
December 31, 2008, 2007 and 2006, respectively.
Credit Risk and Major Customers The Company has a formal written credit policy that establishes procedures to determine creditworthiness and credit limits for trade customers and counterparties in the over-the-counter coal market. Generally, credit is extended based on an evaluation of the customer’s financial condition. Collateral is not generally required, unless credit cannot be established. Credit losses are provided for in the financial statements and historically have been minimal. The Company markets its coal principally to electric utilities in the United States. Sales to customers in foreign countries were $486.1 million, $196.7 million and $162.5 million for the years ended December 31, 2008, 2007 and 2006, respectively. As of December 31, 2008 and 2007, accounts receivable from electric utilities located in the United States totaled $160.0 million and $171.8 million, respectively, or 74% and 75% of total trade receivables, respectively. The Company is committed under long-term contracts to supply coal that meets certain quality requirements at specified prices. These prices are generally adjusted based on indices. Quantities sold under some of these contracts may vary from year to year within certain limits at the option of the customer. The Company and its operating subsidiaries sold approximately 139.6 million tons of coal in 2008. Approximately 76% of this tonnage (representing approximately 66% of the Company’s revenue) was sold under long-term contracts (contracts having a term of greater than one year). Prices for coal sold under long-term contracts ranged from $7.07 to $180.00 per ton. Long-term contracts ranged in remaining life from one to nine years. Sales (including spot sales) to our largest customer, Tennessee Valley Authority, were $416.5 million, $336.4 million and $317.8 million for the years ended December 31, 2008, 2007 and 2006, respectively. These excerpts taken from the ACI 10-K filed Feb 29, 2008. Credit
Risk and Major Customers
The Company has a formal written credit policy that establishes
procedures to determine creditworthiness and credit limits for
trade customers and counterparties in the over-the-counter coal
market. Generally, credit is
Table of Contents
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
extended based on an evaluation of the customer’s financial
condition. Collateral is not generally required, unless credit
cannot be established. Credit losses are provided for in the
financial statements and historically have been minimal.
The Company markets its coal principally to electric utilities
in the United States. Sales to customers in foreign countries
were $196.7 million, $162.5 million and
$166.0 million for the years ended December 31, 2007,
2006 and 2005, respectively. As of December 31, 2007 and
2006, accounts receivable from electric utilities located in the
United States totaled $171.8 million and
$159.7 million, respectively, or 75% and 76% of total trade
receivables for 2007 and 2006, respectively.
The Company is committed under long-term contracts to supply
coal that meets certain quality requirements at specified
prices. These prices are generally adjusted based on indices.
Quantities sold under some of these contracts may vary from year
to year within certain limits at the option of the customer. The
Company and its operating subsidiaries sold approximately
135.0 million tons of coal in 2007. Approximately 73.6% of
this tonnage (representing 73.6% of the Company’s revenue)
was sold under long-term contracts (contracts having a term of
greater than one year). Prices for coal sold under long-term
contracts ranged from $6.59 to $91.17 per ton. Long-term
contracts ranged in remaining life from one to 10 years.
Some of these contracts include pricing which is above current
market prices. Sales (including spot sales) to our largest
customer, TVA, were $336.4 million, $317.8 million and
$306.9 million for the years ended December 31, 2007,
2006 and 2005, respectively.
Credit Risk and Major Customers The Company has a formal written credit policy that establishes procedures to determine creditworthiness and credit limits for trade customers and counterparties in the over-the-counter coal market. Generally, credit is
Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) extended based on an evaluation of the customer’s financial condition. Collateral is not generally required, unless credit cannot be established. Credit losses are provided for in the financial statements and historically have been minimal. The Company markets its coal principally to electric utilities in the United States. Sales to customers in foreign countries were $196.7 million, $162.5 million and $166.0 million for the years ended December 31, 2007, 2006 and 2005, respectively. As of December 31, 2007 and 2006, accounts receivable from electric utilities located in the United States totaled $171.8 million and $159.7 million, respectively, or 75% and 76% of total trade receivables for 2007 and 2006, respectively. The Company is committed under long-term contracts to supply coal that meets certain quality requirements at specified prices. These prices are generally adjusted based on indices. Quantities sold under some of these contracts may vary from year to year within certain limits at the option of the customer. The Company and its operating subsidiaries sold approximately 135.0 million tons of coal in 2007. Approximately 73.6% of this tonnage (representing 73.6% of the Company’s revenue) was sold under long-term contracts (contracts having a term of greater than one year). Prices for coal sold under long-term contracts ranged from $6.59 to $91.17 per ton. Long-term contracts ranged in remaining life from one to 10 years. Some of these contracts include pricing which is above current market prices. Sales (including spot sales) to our largest customer, TVA, were $336.4 million, $317.8 million and $306.9 million for the years ended December 31, 2007, 2006 and 2005, respectively. This excerpt taken from the ACI 10-K filed Mar 1, 2007. Credit Risk and Major
Customers |
The Company places its cash equivalents in investment-grade,
short-term investments and limits the amount of credit exposure
to any one commercial issuer.
The Company markets its coal principally to electric utilities
in the United States. Sales to customers in foreign countries
were $162.5 million, $166.0 million and
$134.0 million for the years ended December 31, 2006,
2005 and 2004, respectively. As of December 31, 2006 and
2005, accounts receivable from electric utilities located in the
United States totaled $159.7 million and
$146.6 million, respectively, or 76% and 82% of total trade
receivables for 2006 and 2005, respectively. Generally, credit
is extended based on an evaluation of the customer’s
financial condition, and collateral is not generally required.
Credit losses are provided for in the financial statements and
historically have been minimal.
The Company is committed under long-term contracts to supply
coal that meets certain quality requirements at specified
prices. These prices are generally adjusted based on indices.
Quantities sold under some of these contracts may vary from year
to year within certain limits at the option of the customer. The
Company and its operating subsidiaries sold approximately
135.0 million tons of coal in 2006. Approximately 78% of
this tonnage (representing 77% of the Company’s revenue)
was sold under long-term contracts (contracts having a term of
greater than one year). Prices for coal sold under long-term
contracts ranged from $6.70 to $101.09 per ton. Long-term
contracts ranged in remaining life from one to 11 years.
Some of these contracts include pricing which is above current
market prices. Sales (including spot sales) to major customers
were as follows:
| 2006 | 2005 | 2004 | ||||||||||
| (In thousands) | ||||||||||||
|
TVA
|
$ | 317,837 | $ | 306,896 | $ | 147,338 | ||||||
|
Progress Energy
|
69,143 | 199,514 | 228,203 | |||||||||
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