Arch Coal (ACI)

 

The Company maintains a deferred compensation plan that allows eligible employees to defer receipt of compensation until the dates elected by the participant. Participants in the plan may defer up to 85% of their base salaries and up to 100% of their annual incentive awards. The plan also allows participants to defer receipt of up to 100% of the shares under any restricted stock unit or performance-contingent stock awards. The amounts deferred are invested in accounts that mirror the gains and losses of a number of different investment funds, including a hypothetical investment in shares of the Company’s common stock. Participants are always vested in their deferrals to the plan and any related earnings. The Company has established a grantor trust to fund the obligations under the plan. The trust has purchased corporate-owned life insurance to offset these obligations. The policies are recorded at their net cash surrender values of $37.2 million and $21.8 million at December 31, 2009 and 2008, respectively. The participants have an unsecured contractual commitment by the Company to pay the amounts due under the plan. Any assets placed in trust by the Company to fund future obligations of the plan are subject to the claims of creditors in the event of insolvency or bankruptcy, and participants are general creditors of the company as to their deferred compensation in the plans.

 

Under the plan, the Company credits each participant’s account with the number of units equal to the number of shares or units that the participant could purchase or receive with the amount of compensation deferred, based upon the fair market value of the underlying investment on that date. The amount the employee will receive from the plan will be based on the number of units credited to each participant’s account, valued on the basis of the fair market value of an equivalent number of shares or units of the underlying investment on that date. The liability under the plan was $29.6 million at December 31, 2009 and $19.0 million at December 31, 2008.

 

The Company’s net income (expense) related to the deferred compensation plan for the years ended December 31, 2009, 2008 and 2007 was $4.1 million, $(2.3) million and $(5.3) million, respectively.

 

 

 

The Company maintains a deferred compensation plan that allows eligible employees to defer receipt of compensation until the dates elected by the participant. Participants in the plan may defer up to 85% of their base salaries and up to 100% of their annual incentive awards. The plan also allows participants to defer receipt of up to 100% of the shares under any restricted stock unit or performance-contingent stock awards. The amounts deferred are invested in accounts that mirror the gains and losses of a number of different investment funds, including a hypothetical investment in shares of the Company’s common stock. Participants are always vested in their deferrals to the plan and any related earnings. The Company has established a grantor trust to fund the obligations under the plan. The trust has purchased corporate-owned life insurance to offset these obligations. The policies are recorded at their net cash surrender values of $21.8 million and $21.5 million at December 31, 2008 and 2007, respectively. The participants have an unsecured contractual commitment by the Company to pay the amounts due under the plan. Any assets placed in trust by the Company to fund future obligations of the plan are subject to the claims of creditors in the event of insolvency or bankruptcy, and

 

The Company maintains a deferred compensation plan that allows eligible employees to defer receipt of compensation until the dates elected by the participant. Participants in the plan may defer up to 85% of their base salaries and up to 100% of their annual incentive awards. The plan also allows participants to defer receipt of up to 100% of the shares under any restricted stock unit or performance-contingent stock awards. The amounts deferred are invested in cash accounts that mirror the gains and losses of a number of different investment funds, including a hypothetical investment in shares of the Company’s common stock. Participants are always vested in their deferrals to the plan and any related earnings. The Company has established a grantor trust to fund the obligations under the plan. The trust has purchased corporate-owned life insurance to offset these obligations. The policies are recorded at their net cash surrender values and totaled $21.5 million and $17.4 million at December 31, 2007 and 2006, respectively. The net gain recognized on these policies for the years ended December 31, 2007, 2006 and 2005 was $1.2 million, $1.9 million and $0.7 million, respectively. The participants have an unsecured contractual commitment by the Company to pay the amounts due under the plan. Any assets placed in trust by the Company to fund future obligations of the plan are subject to the claims of creditors in the event of insolvency or bankruptcy, and participants are general creditors of the company as to their deferred compensation in the plans.

 

Under the plan, the Company credits each participant’s account with the number of units equal to the number of shares or units that the participant could purchase or receive with the amount of compensation deferred under the plan on the date the participant’s account is credited, based upon the fair market value of the underlying investment on that date. The amount the Company will pay will be based on the number of units credited to each participant’s account, valued on the basis of the fair market value of an equivalent number of shares or units of the underlying investment on the date the payment occurs. The liability under the plan was $30.7 million at December 31, 2007 and $21.5 million at December 31, 2006. The Company’s (income) expense related to changes in the value of the units credited to each participant’s account was $5.7 million, $(1.5) million and $6.5 million in 2007, 2006 and 2005, respectively.

 

 

 

The Company maintains a deferred compensation plan that allows
eligible employees to defer receipt of compensation until the
dates elected by the participant. Participants in the plan may
defer up to 85% of their base salaries and up to 100% of their
annual incentive awards. The plan also allows participants to
defer receipt of up to 100% of the shares under any restricted
stock unit or performance-contingent stock awards. The amounts
deferred are invested in cash accounts that mirror the gains and
losses of a number of different investment funds, including a
hypothetical investment in shares of the Company’s common
stock. Participants are always vested in their deferrals to the
plan and any related earnings. The Company has established a
grantor trust to fund the obligations under the plan. The trust
has purchased corporate-owned life insurance to offset these
obligations. The policies are recorded at their net cash
surrender values and totaled $21.5 million and
$17.4 million at December 31, 2007 and 2006,
respectively. The net gain recognized on these policies for the
years ended December 31, 2007, 2006 and 2005 was
$1.2 million, $1.9 million and $0.7 million,
respectively. The participants have an unsecured contractual
commitment by the Company to pay the amounts due under the plan.
Any assets placed in trust by the Company to fund future
obligations of the plan are subject to the claims of creditors
in the event of insolvency or bankruptcy, and participants are
general creditors of the company as to their deferred
compensation in the plans.

 

Under the plan, the Company credits each participant’s
account with the number of units equal to the number of shares
or units that the participant could purchase or receive with the
amount of compensation deferred under the plan on the date the
participant’s account is credited, based upon the fair
market value of the underlying investment on that date. The
amount the Company will pay will be based on the number of units
credited to each participant’s account, valued on the basis
of the fair market value of an equivalent number of shares or
units of the underlying investment on the date the payment
occurs. The liability under the plan was $30.7 million at
December 31, 2007 and $21.5 million at
December 31, 2006. The Company’s (income) expense
related to changes in the value of the units credited to each
participant’s account was $5.7 million,
$(1.5) million and $6.5 million in 2007, 2006 and
2005, respectively.