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Document and Entity Information - USD ($) $ in Billions	3 Months Ended
Document and Entity Information - USD ($) $ in Billions	Mar. 31, 2011	May 02, 2011	Jun. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	ARCH COAL INC
Entity Central Index Key	0001037676
Document Type	10-Q
Document Period End Date	Mar. 31, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q1
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 3.2
Entity Common Stock, Shares Outstanding		164,346,773

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
REVENUES
Coal sales	$ 872,938	$ 711,874
COSTS, EXPENSES AND OTHER
Cost of coal sales	653,684	550,750
Depreciation, depletion and amortization	83,537	88,519
Amortization of acquired sales contracts, net	5,944	10,753
Selling, general and administrative expenses	30,435	27,166
Change in fair value of coal derivatives and coal trading activities, net	(1,784)	5,877
Other operating income, net	(1,116)	(3,391)
Total operating expenses	770,700	679,674
Income from operations	102,238	32,200
Interest expense, net:
Interest expense	(34,580)	(35,083)
Interest income	746	338
Interest expense, net	(33,834)	(34,745)
Income (loss) before income taxes	68,404	(2,545)
Provision for (benefit from) income taxes	12,530	(775)
Net income (loss)	55,874	(1,770)
Less: Net income attributable to noncontrolling interest	(273)	(26)
Net income (loss) attributable to Arch Coal, Inc.	$ 55,601	$ (1,796)
EARNINGS (LOSS) PER COMMON SHARE
Basic earnings (loss) per common share	$ 0.34	$ (0.01)
Diluted earnings (loss) per common share	$ 0.34	$ (0.01)
Basic weighted average shares outstanding	162,576	162,372
Diluted weighted average shares outstanding	163,773	162,372
Dividends declared per common share	$ 0.10	$ 0.09

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 69,220	$ 93,593
Trade accounts receivable	258,499	208,060
Other receivables	44,818	44,260
Inventories	247,908	235,616
Prepaid royalties	42,719	33,932
Deferred income taxes	18,673	0
Coal derivative assets	15,952	15,191
Other	101,153	104,262
Total current assets	798,942	734,914
Property, plant and equipment, net	3,263,555	3,308,892
Other assets:
Prepaid royalties	69,737	66,525
Goodwill	114,963	114,963
Deferred income taxes	331,242	361,556
Equity investments	204,424	177,451
Other	117,115	116,468
Total other assets	837,481	836,963
Total assets	4,899,978	4,880,769
Current liabilities:
Accounts payable	183,866	198,216
Coal derivative liabilities	4,178	4,947
Deferred income taxes	0	7,775
Accrued expenses and other current liabilities	228,165	245,411
Current maturities of debt and short-term borrowings	69,518	70,997
Total current liabilities	485,727	527,346
Long-term debt	1,539,028	1,538,744
Asset retirement obligations	336,975	334,257
Accrued pension benefits	38,808	49,154
Accrued postretirement benefits other than pension	36,920	37,793
Accrued workers' compensation	35,964	35,290
Other noncurrent liabilities	124,243	110,234
Total liabilities	2,597,665	2,632,818
Redeemable noncontrolling interest	10,718	10,444
Stockholders' equity:
Common stock, $0.01 par value, authorized 260,000 shares, issued 164,310 shares and 164,117 shares, respectively	1,647	1,645
Paid-in capital	1,740,765	1,734,709
Treasury stock, 1,512 shares at March 31, 2011 and December 31, 2010, at cost	(53,848)	(53,848)
Retained earnings	600,751	561,418
Accumulated other comprehensive income (loss)	2,280	(6,417)
Total stockholders' equity	2,291,595	2,237,507
Total liabilities and stockholders' equity	$ 4,899,978	$ 4,880,769

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2011	Dec. 31, 2010
Stockholders' equity:
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	260,000	260,000
Common stock, shares issued	164,310	164,117
Treasury stock, shares	1,512	1,512

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
OPERATING ACTIVITIES
Net income (loss)	$ 55,874	$ (1,770)
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	83,537	88,519
Amortization of acquired sales contracts, net	5,944	10,753
Prepaid royalties expensed	8,916	6,599
Employee stock-based compensation	5,290	3,684
Amortization of debt financing costs	2,442	2,461
Changes in:
Receivables	(53,586)	(37,013)
Inventories	(12,292)	(2,382)
Coal derivative assets and liabilities	(1,087)	5,547
Accounts payable, accrued expenses and other current liabilities	(31,596)	(6,844)
Deferred income taxes	(1,026)	150
Other	23,729	23,627
Cash provided by operating activities	86,145	93,331
INVESTING ACTIVITIES
Capital expenditures	(38,711)	(31,975)
Proceeds from dispositions of property, plant and equipment	516	95
Purchases of investments and advances to affiliates	(34,419)	(10,071)
Additions to prepaid royalties	(20,915)	(23,340)
Cash used in investing activities	(93,529)	(65,291)
FINANCING ACTIVITIES
Net increase (decrease) in borrowings under lines of credit and commercial paper program	3,681	(19,324)
Net payments on other debt	(5,161)	(4,742)
Debt financing costs	(8)	(200)
Dividends paid	(16,269)	(14,623)
Issuance of common stock under incentive plans	768	85
Cash used in financing activities	(16,989)	(38,804)
Decrease in cash and cash equivalents	(24,373)	(10,764)
Cash and cash equivalents, beginning of period	93,593	61,138
Cash and cash equivalents, end of period	$ 69,220	$ 50,374

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2011
Basis of Presentation [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Arch Coal, Inc. and its subsidiaries and controlled entities (the “Company”). The Company’s primary business is the production of steam and metallurgical coal from surface and underground mines located throughout the United States, for sale to utility, industrial and export markets. The Company’s mines are located in southern West Virginia, eastern Kentucky, Virginia, Wyoming, Colorado and Utah. All subsidiaries (except as noted below) are wholly-owned. Intercompany transactions and accounts have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and U.S. Securities and Exchange Commission regulations. In the opinion of management, all adjustments, consisting of normal, recurring accruals considered necessary for a fair presentation, have been included. Results of operations for the three months ended March 31, 2011 are not necessarily indicative of results to be expected for the year ending December 31, 2011. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2010 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. The Company owns a 99% membership interest in a joint venture named Arch Western Resources, LLC (“Arch Western”) which operates coal mines in Wyoming, Colorado and Utah. The Company also acts as the managing member of Arch Western.

Accounting Policies	3 Months Ended
Accounting Policies	Mar. 31, 2011
Accounting Policies [Abstract]
Accounting Policies	2. Accounting Policies In January 2011, new fair value disclosure guidance regarding activity in Level 3 fair value measurements became effective. The new disclosure guidance requires entities to provide a gross basis rollforward of the Level 3 activity. The required disclosure is provided in Note 7, “Fair Value Measurements”. The new guidance did not have an impact on the Company’s condensed consolidated financial statements.

Investments

3 Months Ended

Mar. 31, 2011

Investments [Abstract]

Investments

3. Investments


	Knight Hawk			DKRW			DTA			Tenaska		Millennium			Total
	(In thousands)
Balance at December 31, 2010	$	131,250		$	21,961		$	14,472		$	9,768	$	—		$	177,451
Investments in affiliates		—			—			—			5,500		25,000			30,500
Advances to (distributions from) affiliates, net		(7,533	)		—			1,312			—		—			(6,221	)
Equity in comprehensive income (loss)		4,661			(511	)		(1,130	)		—		(326	)		2,694

Balance at March 31, 2011	$	128,378		$	21,450		$	14,654		$	15,268	$	24,674		$	204,424

The Company holds a 49% ownership interest in Knight Hawk Holdings, LLC (“Knight Hawk”), a coal producer in the Illinois Basin. Of the distribution declared in the first quarter of 2011, the Company received $1.5 million in the first quarter and the remaining balance will be paid in the second quarter of 2011.

The Company holds a 24% ownership interest in DKRW Advanced Fuels LLC (“DKRW”), a company engaged in developing coal-to-liquids facilities. Under a coal reserve purchase option, DKRW could purchase reserves from the Company, which the Company would then mine on a contract basis for DKRW. Under a convertible secured promissory note, the Company had advanced to DKRW $22.5 million and $18.1 million at March 31, 2011 and December 31, 2010, respectively, including unpaid interest. Amounts borrowed are due and payable in cash or in additional equity interests on the earlier of December 31, 2011 or upon the closing of DKRW’s next financing, bear interest at the rate of 1.25% per month, and are secured by DKRW’s equity interests in Medicine Bow Fuel & Power LLC. The note balances are reflected in other receivables on the condensed consolidated balance sheets. As of March 31, 2011, DKRW may borrow up to an additional $1.25 million in principal from the Company under the note.

The Company holds a general partnership interest in Dominion Terminal Associates (“DTA”), of 21.875%. DTA operates a ground storage-to-vessel coal transloading facility in Newport News, Virginia for use by the partners. Under the terms of a throughput and handling agreement with DTA, each partner is charged its share of cash operating and debt- service costs in exchange for the right to use the facility’s loading capacity and is required to make periodic cash advances to DTA to fund such costs.

The Company holds a 35% ownership interest in Tenaska Trailblazer Partners, LLC (“Tenaska”), the developer of the Trailblazer Energy Center, a fossil-fuel-based electric power plant near Sweetwater, Texas. The plant, fueled by low sulfur coal, will capture and store carbon dioxide for enhanced oil recovery applications. Additional payments will be due under the investment agreement when certain project milestones are met The Company will also pay 35% of the future development costs of the project, not to exceed $12.5 million without prior approval from the Company. As of March 31, 2011 and December 31, 2010, the Company had advanced a total of $4.3 million and $4.1 million, respectively, for development costs. A receivable for these development costs is reflected in the condensed consolidated balance sheets in other noncurrent assets, as the development costs will either be reimbursed when the project receives construction financing, or they will be considered an additional capital contribution, with ownership percentages adjusted accordingly.

In January 2011, the Company purchased a 38% ownership interest in Millennium Bulk Terminals-Longview, LLC (“Millennium”), the owner of a brownfield bulk commodity terminal on the Columbia River near Longview, Washington, for $25.0 million, plus additional future consideration upon the completion of certain project milestones. Millennium continues to work on obtaining the required approvals and necessary permits to complete dredging and other upgrades to enable coal, alumina and cementitious material shipments through the terminal. The Company will control 38% of the terminal’s throughput and storage capacity, in order to facilitate export shipments of coal off the west coast of the United States.

Future contingent payments of up to $72.4 million related to development financing for certain of our equity investees. as noted above. Our obligation to make these payments, as well as the timing of any payments required, is contingent upon a number of factors, including project development progress, receipt of permits and the obtaining of construction financing.

Derivatives

3 Months Ended

Mar. 31, 2011

Derivatives [Abstract]

Derivatives

4. Derivatives

The Company generally utilizes derivative financial instruments to manage exposures to commodity prices. Additionally, the Company may hold certain coal derivative financial instruments for trading purposes.

All derivative financial instruments are recognized in the balance sheet at fair value. In a fair value hedge, the Company hedges the risk of changes in the fair value of a firm commitment, typically a fixed-price coal sales contract. Changes in both the hedged firm commitment and the fair value of a derivative used as a hedge instrument in a fair value hedge are recorded in earnings. In a cash flow hedge, the Company hedges the risk of changes in future cash flows related to a forecasted purchase or sale. Changes in the fair value of the derivative instrument used as a hedge instrument in a cash flow hedge are recorded in other comprehensive income. Amounts in other comprehensive income are reclassified to earnings when the hedged transaction affects earnings and are classified in a manner consistent with the transaction being hedged. The Company formally documents the relationships between hedging instruments and the respective hedged items, as well as its risk management objectives for hedge transactions.

The Company evaluates the effectiveness of its hedging relationships both at the hedge’s inception and on an ongoing basis. Any ineffective portion of the change in fair value of a derivative instrument used as a hedge instrument in a fair value or cash flow hedge is recognized immediately in earnings. The ineffective portion is based on the extent to which exact offset is not achieved between the change in fair value of the hedge instrument and the cumulative change in expected future cash flows on the hedged transaction from inception of the hedge in a cash flow hedge or the change in the fair value of the firm commitment in a fair value hedge.

Diesel fuel price risk management

The Company is exposed to price risk with respect to diesel fuel purchased for use in its operations. The Company purchases approximately 55 million to 65 million gallons of diesel fuel annually in its operations. To reduce the volatility in the price of diesel fuel for its operations, the Company uses forward physical diesel purchase contracts, as well as heating oil swaps and purchased call options. At March 31, 2011, the Company had protected the price of approximately 63% of its remaining expected purchases for fiscal year 2011 and 5% for fiscal year 2012.

At March 31, 2011, the Company held heating oil swaps and purchased call options for approximately 31.7 million gallons for the purpose of managing the price risk associated with future diesel purchases. Since the changes in the price of heating oil highly correlate to changes in the price of the hedged diesel fuel purchases, the heating oil swaps and purchased call options qualify for cash flow hedge accounting.

Coal risk management positions

The Company may sell or purchase forward contracts, swaps and options in the over-the-counter coal market in order to manage its exposure to coal prices. The Company has exposure to the risk of fluctuating coal prices related to forecasted sales or purchases of coal or to the risk of changes in the fair value of a fixed price physical sales contract. Certain derivative contracts may be designated as hedges of these risks.

At March 31, 2011, the Company held derivatives for risk management purposes totaling 1.3 million tons of coal sales and 0.3 million tons of coal purchases that are expected to settle during the remainder of 2011 and 2.6 million tons of coal sales and 0.1 million tons of coal purchases that are expected to settle in 2012 through 2014.

Coal trading positions

The Company may sell or purchase forward contracts, swaps and options in the over-the-counter coal market for trading purposes. The Company is exposed to the risk of changes in coal prices on the value of its coal trading portfolio. The timing of the estimated future realization of the value of the trading portfolio is 47% for the remainder of 2011, 49% in 2012 and 4% in 2013.

Tabular derivatives disclosures

The Company’s contracts with certain of its counterparties allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. Such netting arrangements reduce the Company’s credit exposure related to these counterparties. For classification purposes, the Company records the net fair value of all the positions with a given counterparty as a net asset or liability in the condensed consolidated balance sheets. The amounts shown in the table below represent the fair value position of individual contracts, regardless of the net position presented in the accompanying condensed consolidated balance sheets. The fair value and location of derivatives reflected in the accompanying condensed consolidated balance sheets are as follows:

Fair Value of Derivatives
(in thousands)


	March 31, 2011								December 31, 2010
	Asset			Liability					Asset			Liability
	Derivatives			Derivatives					Derivatives			Derivatives
Derivatives Designated as Hedging Instruments
Heating oil	$	23,926		$	—				$	13,475		$	—
Coal		2,193			(2,100	)				2,009			(2,350	)

Total		26,119			(2,100	)				15,484			(2,350	)
Derivatives Not Designated as Hedging Instruments
Coal — held for trading purposes		27,083			(14,584	)				34,445			(24,087	)
Coal		354			(1,172	)				1,139			(912	)

Total		27,437			(15,756	)				35,584			(24,999	)

Total derivatives		53,556			(17,856	)				51,068			(27,349	)
Effect of counterparty netting		(13,678	)		13,678					(22,402	)		22,402

Net derivatives as classified in the balance sheets	$	39,878		$	(4,178	)	$	35,700	$	28,666		$	(4,947	)	$	23,719

Net derivatives as reflected on the balance sheets


		March 31,			December 31,
		2011			2010
Heating oil	Other current assets	$	23,926		$	13,475
Coal	Coal derivative assets		15,952			15,191
	Coal derivative liabilities		(4,178	)		(4,947	)

		$	35,700		$	23,719

The Company had a current asset for the right to reclaim cash collateral of $9.2 million and $10.3 million at March 31, 2011 and December 31, 2010, respectively. These amounts are not included with the derivatives presented in the table above and are included in “other current assets” in the accompanying condensed consolidated balance sheets.

The effects of derivatives on measures of financial performance are as follows:

Three Months Ended March 31
(in thousands)


													Gain (Loss)
													Recognized in
							Gains (Losses)						Income (Ineffective
	Gain (Loss)						Reclassified from						Portion and Amount
Derivatives used in	Recognized in OCI						OCI into Income						Excluded from
Cash Flow Hedging Relationships	(Effective Portion)						(Effective Portion)						Effectiveness Testing)
	2011			2010			2011			2010			2011		2010
Heating oil	$	14,258		$	12		$	3,170	2	$	(2,229	) 2	$	—	$	—
Coal sales		1,406			(401	)		87	1		(129	) 1		—		—
Coal purchases		(876	)		902			—	2		(336	) 2		—		—

Totals	$	14,788		$	513		$	3,257		$	(2,694	)	$	—	$	—


Derivatives Not Designated as
Hedging Instruments	Gain (Loss)
	2011			2010
Coal — unrealized	$	(1,045	) 3	$	(4,922	) 3

Coal — realized	$	—	4	$	1,600	4

Location in Statement of Income:


1-		Coal sales

2-		Cost of coal sales

3-		Change in fair value of coal derivatives and coal trading activities, net

4-		Other operating income, net

The Company recognized net unrealized and realized gains of $2.8 million during the three months ended March 31, 2011 and net unrealized and realized losses of $1.0 million during the three months ended March 31, 2010, related to its trading portfolio (including derivative and non-derivative contracts). These balances are included in the caption “Change in fair value of coal derivatives and coal trading activities, net” in the accompanying condensed consolidated statements of income and are not included in the previous table.

During the next twelve months, based on fair values at March 31, 2011, gains on derivative contracts designated as hedge instruments in cash flow hedges of approximately $23.5 million are expected to be reclassified from other comprehensive income into earnings.

Inventories

3 Months Ended

Mar. 31, 2011

Inventories [Abstract]

Inventories

5. Inventories

Inventories consist of the following:


	March 31,		December 31,
	2011		2010
	(In thousands)
Coal	$	121,363	$	115,647
Repair parts and supplies, net of allowance		126,545		119,969

	$	247,908	$	235,616

The repair parts and supplies are stated net of an allowance for slow-moving and obsolete inventories of $13.0 million at March 31, 2011, and $12.7 million at December 31, 2010.

Debt

3 Months Ended

Mar. 31, 2011

Debt [Abstract]

Debt

6. Debt


	March 31,		December 31,
	2011		2010
	(In thousands)
Commercial paper	$	60,585	$	56,904
6.75% senior notes ($450.0 million face value) due July 1, 2013		451,456		451,618
8.75% senior notes ($600.0 million face value) due August 1, 2016		587,572		587,126
7.25% senior notes ($500.0 million face value) due October 1, 2020		500,000		500,000
Other		8,933		14,093

		1,608,546		1,609,741
Less current maturities of debt and short-term borrowings		69,518		70,997

Long-term debt	$	1,539,028	$	1,538,744

Availability

The Company had no borrowings outstanding under the revolving credit facility or under the accounts receivable securitization program as of March 31, 2011 and December 31, 2010. At March 31, 2011 the Company had availability of $860.0 million under the revolving credit facility and $71.4 million under the accounts receivable securitization program. The Company also had outstanding letters of credit under the accounts receivable securitization program of $76.2 million as of March 31, 2011.

Fair Value Measurements

3 Months Ended

Mar. 31, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

7. Fair Value Measurements

The hierarchy of fair value measurements prioritizes the inputs to valuation techniques used to measure fair value. The levels of the hierarchy, as defined below, give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.

	•		Level 1 is defined as observable inputs such as quoted prices in active markets for identical assets. Level 1 assets include available-for-sale equity securities and coal futures that are submitted for clearing on the New York Mercantile Exchange.

	•		Level 2 is defined as observable inputs other than Level 1 prices. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company’s level 2 assets and liabilities include commodity contracts (coal and heating oil) with fair values derived from quoted prices in over-the-counter markets or from prices received from direct broker quotes.

	•		Level 3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. These include the Company’s commodity option contracts (primarily coal and heating oil) valued using modeling techniques, such as Black-Scholes, that require the use of inputs, particularly volatility, that are rarely observable.

The table below sets forth, by level, the Company’s financial assets and liabilities that are recorded at fair value in the accompanying condensed consolidated balance sheet:


	Fair Value at March 31, 2011
	Total		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Investments in equity securities	$	8,572	$	8,482	$	—	$	90
Derivatives		39,878		6,203		17,265		16,410

Total assets	$	48,450	$	14,685	$	17,265	$	16,500


Liabilities:
Derivatives	$	4,178	$	—	$	3,459	$	719

The Company’s contracts with certain of its counterparties allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. For classification purposes, the Company records the net fair value of all the positions with these counterparties as a net asset or liability. Each level in the table above displays the underlying contracts according to their classification in the accompanying condensed consolidated balance sheet, based on this counterparty netting.

The following table summarizes the change in the fair values of financial instruments categorized as level 3.


	Three Months Ended
	March 31, 2011
	(In thousands)
Balance, beginning of period	$	9,183
Realized and unrealized losses recognized in earnings		(2,579	)
Realized and unrealized gains recognized in other comprehensive income		8,928
Purchases		1,466
Settlements		(1,217	)

Balance, end of period	$	15,781

Net unrealized gains during the three month period ended March 31, 2011 related to level 3 financial instruments held on March 31, 2011 were $7.2 million.

Fair Value of Long-Term Debt

At March 31, 2011 and December 31, 2010, the fair value of the Company’s senior notes and other long-term debt, including amounts classified as current, was $1,734.6 million and $1,708.6 million, respectively. Fair values are based upon observed prices in an active market when available or from valuation models using market information.

Stock-Based Compensation and Other Incentive Plans	3 Months Ended
Stock-Based Compensation and Other Incentive Plans	Mar. 31, 2011
Stock-Based Compensation and Other Incentive Plans [Abstract]
Stock-Based Compensation and Other Incentive Plans	8. Stock-Based Compensation and Other Incentive Plans During the three months ended March 31, 2011, the Company granted options to purchase approximately 0.7 million shares of common stock with a weighted average exercise price of $32.49 per share and a weighted average grant-date fair value of $14.37 per share. The options’ fair value was determined using the Black-Scholes option pricing model, using a weighted average risk-free rate of 1.95%, a weighted average dividend yield of 1.23% and a weighted average volatility of 57.61%. The options’ expected life is 4.5 years and the options vest ratably over three years. The options provide for the continuation of vesting after retirement for recipients that meet certain criteria. The expense for these options will be recognized through the date that the employee first becomes eligible to retire and is no longer required to provide service to earn all or part of the award. The Company also granted 107,700 shares of restricted stock during the three months ended March 31, 2011 at a weighted average grant-date fair value of $32.49 per share. The restricted stock vests after three years. During the three months ended March 31, 2011, the Company awarded 3.4 million performance units as part of its long-term incentive (“LTI”) plan. The total number of units earned by a participant is based on financial and operational performance measures, and may be paid out in cash or in shares of the Company’s common stock. The Company recognizes compensation expense over the three- year term of the grant. Amounts unpaid for all grants under the LTI plan totaled $7.9 million and $6.4 million as of March 31, 2011 and December 31, 2010, respectively. The Company recognized compensation expense from all stock-based and LTI plans of $6.8 million and $3.8 million for the three months ended March 31, 2011 and 2010, respectively. This expense is primarily included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income.

Workers' Compensation Expense

3 Months Ended

Mar. 31, 2011

Workers' Compensation Expense [Abstract]

Workers' Compensation Expense

9. Workers’ Compensation Expense

The following table details the components of workers’ compensation expense:


	Three Months Ended March 31
	2011			2010
	(In thousands)
Self-insured occupational disease benefits:
Service cost	$	193		$	155
Interest cost		254			144
Net amortization		(101	)		(548	)

Total occupational disease		346			(249	)
Traumatic injury claims and assessments		2,325			1,676

Total workers’ compensation expense	$	2,671		$	1,427

Employee Benefit Plans

3 Months Ended

Mar. 31, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans

10. Employee Benefit Plans

The following table details the components of pension benefit costs:


	Three Months Ended March 31
	2011			2010
	(In thousands)
Service cost	$	4,319		$	3,873
Interest cost		4,131			4,121
Expected return on plan assets		(5,468	)		(4,166	)
Amortization of prior service cost		47			43
Amortization of other actuarial losses		2,139			2,405

Net benefit cost	$	5,168		$	6,276

The following table details the components of other postretirement benefit costs (credits):


	Three Months Ended March 31
	2011			2010
	(In thousands)
Service cost	$	405		$	446
Interest cost		498			648
Amortization of prior service credits		(591	)		(503	)
Amortization of other actuarial gains		(598	)		(470	)

Net benefit cost (credit)	$	(286	)	$	121

Comprehensive Income

3 Months Ended

Mar. 31, 2011

Comprehensive Income [Abstract]

Comprehensive Income

11. Comprehensive Income

Comprehensive income consists of net income and other comprehensive income. Other comprehensive income items are transactions recorded in stockholders’ equity during the year, excluding net income and transactions with stockholders.

The following table presents the components of comprehensive income:


	Three Months Ended March 31
	2011			2010
	(In thousands)
Net income (loss) attributable to Arch Coal, Inc.	$	55,601		$	(1,796	)
Other comprehensive income, net of income taxes:
Pension, postretirement and other post-employment benefits, reclassifications into net income		573			592
Unrealized gains on available-for-sale securities		747			9
Unrealized gains and losses on derivatives, net of reclassifications into net income:
Unrealized gains on derivatives		9,501			362
Reclassifications of (gains) losses into net income		(2,124	)		1,723


Total comprehensive income	$	64,298		$	890

Earnings (loss) per Common Share

3 Months Ended

Mar. 31, 2011

Earnings (loss) per Common Share [Abstract]

Earnings (Loss) per Common Share

12. Earnings (Loss) per Common Share

The following table provides the basis for earnings (loss) per share calculations by reconciling basic and diluted weighted average shares outstanding:


	Three Months Ended March 31
	2011		2010
	(In thousands)
Weighted average shares outstanding:
Basic weighted average shares outstanding		162,576		162,372
Effect of common stock equivalents under incentive plans		1,197		—


Diluted weighted average shares outstanding		163,773		162,372

The effect of options to purchase 1.1 million and 2.4 million shares of common stock were excluded from the calculation of diluted weighted average shares outstanding for the three month period ended March 31, 2011 and 2010, respectively, because the exercise price of these options exceeded the average market price of the Company’s common stock for these periods. The additional dilutive effect of options, restricted stock and restricted stock units totaling 0.7 million shares of common stock were excluded from the calculation of diluted weighted average shares outstanding for the three months ended March 31, 2010 because of the net loss for the quarter.

Guarantees	3 Months Ended
Guarantees	Mar. 31, 2011
Guarantees [Abstract]
Guarantees	13. Guarantees The Company has agreed to continue to provide surety bonds and letters of credit for the reclamation and retiree healthcare obligations of Magnum Coal Company (“Magnum”) related to the properties the Company sold to Magnum on December 31, 2005. The purchase agreement requires Magnum to reimburse the Company for costs related to the surety bonds and letters of credit and to use commercially reasonable efforts to replace the obligations. If the surety bonds and letters of credit related to the reclamation obligations are not replaced by Magnum within a specified period of time, Magnum must post a letter of credit in favor of the Company in the amounts of the reclamation obligations. At March 31, 2011, the Company had $86.6 million of surety bonds related to properties sold to Magnum. The surety bonding amounts are mandated by the state and are not directly related to the estimated cost to reclaim the properties. Patriot Coal Corporation (“Patriot”) acquired Magnum in July 2008, and has posted letters of credit in the Company’s favor for $32.7 million. In April, 2011, Patriot replaced $22.1 million of the surety bonds. Magnum also acquired certain coal supply contracts with customers who have not consented to the contracts’ assignment from the Company to Magnum. The Company has committed to purchase coal from Magnum to sell to those customers at the same price it is charging the customers for the sale. In addition, certain contracts were assigned to Magnum, but the Company has guaranteed Magnum’s performance under the contracts. The longest of the coal supply contracts extends to the year 2017. If Magnum is unable to supply the coal for these coal sales contracts then the Company would be required to purchase coal on the open market or supply contracts from its existing operations. At market prices effective at March 31, 2011, the cost of purchasing 11.1 million tons of coal to supply the contracts that have not been assigned over their duration would exceed the sales price under the contracts by approximately $429.3 million, and the cost of purchasing 1.3 million tons of coal to supply the assigned and guaranteed contracts over their duration would exceed the sales price under the contracts by approximately $28.1 million. As the Company does not believe that it is probable that it would have to purchase replacement coal, no losses have been recorded in the consolidated financial statements as of March 31, 2011. However, if the Company would have to perform under these guarantees, it could potentially have a material adverse effect on the business, results of operations and financial condition of the Company. In connection with the Company’s acquisition of the coal operations of Atlantic Richfield Company (ARCO) and the simultaneous combination of the acquired ARCO operations and the Company’s Wyoming operations into the Arch Western joint venture, the Company agreed to indemnify the other member of Arch Western against certain tax liabilities in the event that such liabilities arise prior to June 1, 2013 as a result of certain actions taken, including the sale or other disposition of certain properties of Arch Western, the repurchase of certain equity interests in Arch Western by Arch Western or the reduction under certain circumstances of indebtedness incurred by Arch Western in connection with the acquisition. If the Company were to become liable, the maximum amount of potential future tax payments is $28.2 million at March 31, 2011, which is not recorded as a liability in the Company’s condensed consolidated financial statements. Since the indemnification is dependent upon the initiation of activities within the Company’s control and the Company does not intend to initiate such activities, it is remote that the Company will become liable for any obligation related to this indemnification. However, if such indemnification obligation were to arise, it could potentially have a material adverse effect on the business, results of operations and financial condition of the Company.

Contingencies	3 Months Ended
Contingencies	Mar. 31, 2011
Contingencies [Abstract]
Contingencies	14. Contingencies The Company is a party to numerous claims and lawsuits with respect to various matters. The Company provides for costs related to contingencies when a loss is probable and the amount is reasonably determinable. After conferring with counsel, it is the opinion of management that the ultimate resolution of pending claims will not have a material adverse effect on the consolidated financial condition, results of operations or liquidity of the Company.

Segment Information

3 Months Ended

Mar. 31, 2011

Segment Information [Abstract]

Segment Information

15. Segment Information

The Company has three reportable business segments, which are based on the major low-sulfur coal basins in which the Company operates. Each of these reportable business segments includes a number of mine complexes. The Company manages its coal sales by coal basin, not by individual mine complex. Geology, coal transportation routes to customers, regulatory environments and coal quality are generally consistent within a basin. Accordingly, market and contract pricing have developed by coal basin. Mine operations are evaluated based on their per-ton operating costs (defined as including all mining costs but excluding pass-through transportation expenses), as well as on other non-financial measures, such as safety and environmental performance. The Company’s reportable segments are the Powder River Basin (PRB) segment, with operations in Wyoming; the Western Bituminous (WBIT) segment, with operations in Utah, Colorado and southern Wyoming; and the Central Appalachia (CAPP) segment, with operations in southern West Virginia, eastern Kentucky and Virginia.

Operating segment results for the three months ended March 31, 2011 and 2010 are presented below. Results for the operating segments include all direct costs of mining, including all depreciation, depletion and amortization related to the mining operations, even if the assets are not recorded at the operating segment level. See discussion of segment assets below. Corporate, Other and Eliminations includes the change in fair value of coal derivatives and coal trading activities, net; corporate overhead; land management; other support functions; and the elimination of intercompany transactions.

The asset amounts below represent an allocation of assets used in the segments’ cash-generating activities. The amounts in Corporate, Other and Eliminations represent primarily corporate assets (cash, receivables, investments, plant, property and equipment) as well as goodwill, unassigned coal reserves, above-market acquired sales contracts and other unassigned assets.


							Corporate,
							Other and
	PRB		WBIT		CAPP		Eliminations			Consolidated
	(In thousands)
Three months ended March 31, 2011
Coal sales	$	393,113	$	155,439	$	324,386	$	—		$	872,938
Income from operations		46,874		26,892		54,394		(25,922	)		102,238
Total assets		2,244,173		683,949		710,324		1,261,532			4,899,978
Depreciation, depletion and amortization		41,691		20,529		21,016		301			83,537
Amortization of acquired sales contracts, net		5,944		—		—		—			5,944
Capital expenditures		2,838		11,777		17,302		6,794			38,711

Three months ended March 31, 2010
Coal sales	$	359,415	$	132,713	$	219,746	$	—		$	711,874
Income from operations		16,561		12,430		37,593		(34,384	)		32,200
Total assets		2,358,957		683,124		740,401		1,030,804			4,813,286
Depreciation, depletion and amortization		44,621		20,370		23,174		354			88,519
Amortization of acquired sales contracts, net		10,753		—		—		—			10,753
Capital expenditures		725		13,101		11,637		6,512			31,975

A reconciliation of segment income from operations to consolidated income (loss) before income taxes follows:


	Three Months Ended March 31
	2011			2010
	(In thousands)
Income from operations	$	102,238		$	32,200
Interest expense		(34,580	)		(35,083	)
Interest income		746			338

Income (loss) before income taxes	$	68,404		$	(2,545	)

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2011
Subsequent Events [Abstract]
Subsequent Events	Note 16. Subsequent Events On May 2, 2011, the Company and International Coal Group, Inc. (“ICG”) entered into a definitive Agreement and Plan of Merger (“Merger Agreement”), pursuant to which the Company will commence an offer to acquire all of the outstanding shares of ICG’s common stock for $14.60 per share in cash, for a total transaction price of $3.4 billion. Completion of the offer is subject to several conditions, including: (i) that a majority of the shares of common stock outstanding be validly tendered prior to the expiration of the offer; (ii) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended; (iii) the absence of a material adverse effect on ICG; (iv) the expiration of a 20 business day marketing period beginning 10 business days after delivery of certain required financial information to be provided to the Company by ICG; and (v) certain other customary conditions. The offer is not subject to a financing condition. In connection with the Merger Agreement, Arch entered into a debt commitment letter with Morgan Stanley Senior Funding, Inc., PNC Bank, National Association and PNC Capital Markets LLC (“Initial Lenders”). Pursuant to the commitment letter, the Initial Lenders have committed to provide to Arch unsecured bridge financing of up to $3.8 billion (“Bridge Facility”), the proceeds of which will be used (i) first, to repay or redeem ICG’s indebtedness outstanding on the date of consummation of the merger, other than certain existing indebtedness and (ii) second, to fund, in part, the cash consideration for the offer and pay certain fees and expenses in connection with the transactions. The Bridge Facility will mature on the first anniversary of the closing of the merger; however, Arch may, subject to certain conditions, elect to extend the maturity date of the Bridge Facility to the eighth anniversary of the closing of the merger. The Company expects to raise permanent financing comprised of a mix of debt and equity securities in amounts that enable the Company to maintain its current credit ratings.

Supplemental Condensed Consolidating Financial Information

3 Months Ended

Mar. 31, 2011

Supplemental Financial Information [Abstract]

Supplemental Condensed Consolidating Financial Information

17. Supplemental Condensed Consolidating Financial Information

Pursuant to the indenture governing the Arch Coal, Inc. senior notes, certain wholly-owned subsidiaries of the Company have fully and unconditionally guaranteed the senior notes on a joint and several basis. The following tables present unaudited condensed consolidating financial information for (i) the Company, (ii) the issuer of the senior notes, (iii) the guarantors under the Notes, and (iv) the entities which are not guarantors under the Notes (Arch Western Resources, LLC and Arch Receivable Company, LLC):

Condensed Consolidating Statements of Income
Three Months Ended March 31, 2011
(unaudited)


				Guarantor			Non-Guarantor
	Parent/Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
							(In thousands)
Revenue
Coal sales	$	—		$	338,533		$	534,405		$	—		$	872,938

Costs, expenses and other
Cost of coal sales		3,279			251,884			423,323			(24,802	)		653,684
Depreciation, depletion and amortization		672			43,277			39,588			—			83,537
Amortization of acquired sales contracts, net		—			—			5,944			—			5,944
Selling, general and administrative expenses		20,336			1,883			9,913			(1,697	)		30,435
Change in fair value of coal derivatives and coal trading activities, net		—			(1,784	)		—			—			(1,784	)
Other operating (income) expense, net		(4,567	)		(27,456	)		4,408			26,499			(1,116	)

		19,720			267,804			483,176			—			770,700
Income from investment in subsidiaries		125,003			—			—			(125,003	)		—


Income from operations		105,283			70,729			51,229			(125,003	)		102,238

Interest expense, net:
Interest expense		(40,621	)		(714	)		(10,982	)		17,737			(34,580	)
Interest income		3,742			296			14,445			(17,737	)		746

		(36,879	)		(418	)		3,463			—			(33,834	)


Income before income taxes		68,404			70,311			54,692			(125,003	)		68,404
Provision for income taxes		12,530			—			—			—			12,530


Net income		55,874			70,311			54,692			(125,003	)		55,874
Less: Net income attributable to noncontrolling interest		(273	)		—			—			—			(273	)


Net income attributable to Arch Coal	$	55,601		$	70,311		$	54,692		$	(125,003	)	$	55,601

Condensed Consolidating Statements of Income
Three Months Ended March 31, 2010
(unaudited)


				Guarantor			Non-Guarantor
	Parent/Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
							(In thousands)
Revenue
Coal sales	$	—		$	239,027		$	472,847		$	—		$	711,874

Costs, expenses and other
Cost of coal sales		2,829			168,718			397,509			(18,306	)		550,750
Depreciation, depletion and amortization		752			43,717			44,050			—			88,519
Amortization of acquired sales contracts, net		—			—			10,753			—			10,753
Selling, general and administrative expenses		18,643			1,806			8,403			(1,686	)		27,166
Change in fair value of coal derivatives and coal trading activities, net		—			5,877			—			—			5,877
Other operating (income) expense, net		(1,961	)		(22,722	)		1,300			19,992			(3,391	)


		20,263			197,396			462,015			—			679,674

Income from investment in subsidiaries		47,267			—			—			(47,267	)		—


Income from operations		27,004			41,631			10,832			(47,267	)		32,200
Interest expense, net:
Interest expense		(31,432	)		(579	)		(18,115	)		15,043			(35,083	)
Interest income		1,883			89			13,409			(15,043	)		338

		(29,549	)		(490	)		(4,706	)		—			(34,745	)


Income (loss) before income taxes		(2,545	)		41,141			6,126			(47,267	)		(2,545	)
Benefit from income taxes		(775	)		—			—			—			(775	)


Net income (loss)		(1,770	)		41,141			6,126			(47,267	)		(1,770	)
Less: Net income attributable to noncontrolling interest		(26	)		—			—			—			(26	)


Net income (loss) attributable to Arch Coal	$	(1,796	)	$	41,141		$	6,126		$	(47,267	)	$	(1,796	)

Condensed Consolidating Balance Sheets
March 31, 2011
(unaudited)


				Guarantor		Non-Guarantor
	Parent/Issuer			Subsidiaries		Subsidiaries		Eliminations			Consolidated
						(In thousands)
Assets
Cash and cash equivalents	$	3,056		$	49	$	66,115	$	—		$	69,220
Receivables		28,407			14,383		262,102		(1,575	)		303,317
Inventories		—			78,278		169,630		—			247,908
Other		57,279			101,506		19,712		—			178,497

Total current assets		88,742			194,216		517,559		(1,575	)		798,942


Property, plant and equipment, net		10,017			1,780,334		1,473,204		—			3,263,555

Investment in subsidiaries		4,686,231			—		—		(4,686,231	)		—
Intercompany receivables		(1,898,150	)		584,740		1,313,410		—			—
Note receivable from Arch Western		225,000			—		—		(225,000	)		—
Other		454,767			371,944		10,770		—			837,481

Total other assets		3,467,848			956,684		1,324,180		(4,911,231	)		837,481

Total assets	$	3,566,607		$	2,931,234	$	3,314,943	$	(4,912,806	)	$	4,899,978


Liabilities and Stockholders’ Equity
Accounts payable	$	10,915		$	71,790	$	101,161	$	—		$	183,866
Accrued expenses and other current liabilities		61,757			31,951		140,210		(1,575	)		232,343
Current maturities of debt and short-term borrowings		8,933			—		60,585		—			69,518

Total current liabilities		81,605			103,741		301,956		(1,575	)		485,727

Long-term debt		1,087,572			—		451,456		—			1,539,028
Note payable to Arch Coal		—			—		225,000		(225,000	)		—
Asset retirement obligations		652			32,649		303,674		—			336,975
Accrued pension benefits		14,363			4,535		19,910		—			38,808
Accrued postretirement benefits other than pension		14,290			—		22,630		—			36,920
Accrued workers’ compensation		15,359			13,723		6,882		—			35,964
Other noncurrent liabilities		50,453			20,790		53,000		—			124,243

Total liabilities		1,264,294			175,438		1,384,508		(226,575	)		2,597,665
Redeemable noncontrolling interest		10,718			—		—		—			10,718
Stockholders’ equity		2,291,595			2,755,796		1,930,435		(4,686,231	)		2,291,595

Total liabilities and stockholders’ equity	$	3,566,607		$	2,931,234	$	3,314,943	$	(4,912,806	)	$	4,899,978

Condensed Consolidating Balance Sheets
December 31, 2010
(unaudited)


				Guarantor		Non-Guarantor
	Parent/Issuer			Subsidiaries		Subsidiaries		Eliminations			Consolidated
						(In thousands)
Assets
Cash and cash equivalents	$	13,713		$	64	$	79,816	$	—		$	93,593
Receivables		31,458			12,740		210,075		(1,953	)		252,320
Inventories		—			85,196		150,420		—			235,616
Other		29,575			102,375		21,435		—			153,385

Total current assets		74,746			200,375		461,746		(1,953	)		734,914


Property, plant and equipment, net		9,817			1,800,578		1,498,497		—			3,308,892

Investment in subsidiaries		4,555,233			—		—		(4,555,233	)		—
Intercompany receivables		(1,807,902	)		508,624		1,299,278		—			—
Note receivable from Arch Western		225,000			—		—		(225,000	)		—
Other		481,345			344,698		10,920		—			836,963

Total other assets		3,453,676			853,322		1,310,198		(4,780,233	)		836,963

Total assets	$	3,538,239		$	2,854,275	$	3,270,441	$	(4,782,186	)	$	4,880,769


Liabilities and Stockholders’ Equity
Accounts payable	$	10,753		$	65,793	$	121,670	$	—		$	198,216
Accrued expenses and other current liabilities		75,746			31,123		153,217		(1,953	)		258,133
Current maturities of debt and short-term borrowings		14,093			—		56,904		—			70,997

Total current liabilities		100,592			96,916		331,791		(1,953	)		527,346

Long-term debt		1,087,126			—		451,618		—			1,538,744
Note payable to Arch Coal		—			—		225,000		(225,000	)		—
Asset retirement obligations		873			32,029		301,355		—			334,257
Accrued pension benefits		20,843			4,407		23,904		—			49,154
Accrued postretirement benefits other than pension		14,284			—		23,509		—			37,793
Accrued workers’ compensation		15,383			13,805		6,102		—			35,290
Other noncurrent liabilities		51,187			22,135		36,912		—			110,234

Total liabilities		1,290,288			169,292		1,400,191		(226,953	)		2,632,818
Redeemable noncontrolling interest		10,444			—		—		—			10,444
Stockholders’ equity		2,237,507			2,684,983		1,870,250		(4,555,233	)		2,237,507

Total liabilities and stockholders’ equity	$	3,538,239		$	2,854,275	$	3,270,441	$	(4,782,186	)	$	4,880,769

Condensed Consolidating Statements of Cash Flows
Three Months Ended March 31, 2011
(unaudited)


				Guarantor			Non-Guarantor
	Parent/Issuer			Subsidiaries			Subsidiaries			Consolidated
	(In thousands)
Cash provided by (used in) operating activities	$	(75,477	)	$	144,796		$	16,826		$	86,145

Investing Activities
Capital expenditures		(900	)		(23,615	)		(14,196	)		(38,711	)
Proceeds from dispositions of property, plant and equipment		—			502			14			516
Purchases of investments and advances to affiliates		(9,529	)		(24,890	)		—			(34,419	)
Additions to prepaid royalties		—			(20,915	)		—			(20,915	)

Cash used in investing activities		(10,429	)		(68,918	)		(14,182	)		(93,529	)

Financing Activities
Net increase in borrowings under lines of credit and commercial paper program		—			—			3,681			3,681
Net proceeds from other debt		(5,161	)		—			—			(5,161	)
Debt financing costs		—			—			(8	)		(8	)
Dividends paid		(16,269	)		—			—			(16,269	)
Issuance of common stock under incentive plans		768			—			—			768
Transactions with affiliates, net		95,911			(75,893	)		(20,018	)		—

Cash provided by (used in) financing activities		75,249			(75,893	)		(16,345	)		(16,989	)

Decrease in cash and cash equivalents		(10,657	)		(15	)		(13,701	)		(24,373	)
Cash and cash equivalents, beginning of period		13,713			64			79,816			93,593

Cash and cash equivalents, end of period	$	3,056		$	49		$	66,115		$	69,220

Condensed Consolidating Statements of Cash Flows
Three Months Ended March 31, 2010
(unaudited)


				Guarantor			Non-Guarantor
	Parent/Issuer			Subsidiaries			Subsidiaries			Consolidated
	(in thousands)
Cash provided by (used in) operating activities	$	(74,952	)	$	112,334		$	55,949		$	93,331

Investing Activities
Capital expenditures		(711	)		(17,438	)		(13,826	)		(31,975	)
Proceeds from dispositions of property, plant and equipment		—			21			74			95
Purchases of investments and advances to affiliates		(8,856	)		(1,215	)		—			(10,071	)
Additions to prepaid royalties		—			(20,831	)		(2,509	)		(23,340	)

Cash used in investing activities		(9,567	)		(39,463	)		(16,261	)		(65,291	)
Financing Activities
Net increase (decrease) in borrowings under lines of credit and commercial paper program		(30,000	)		—			10,676			(19,324	)
Net payments on other debt		(4,742	)		—			—			(4,742	)
Debt financing costs		—			—			(200	)		(200	)
Dividends paid		(14,623	)		—			—			(14,623	)
Issuance of common stock under incentive plans		85			—			—			85
Transactions with affiliates, net		119,514			(72,871	)		(46,643	)		—

Cash provided by (used in) financing activities		70,234			(72,871	)		(36,167	)		(38,804	)

Increase (decrease) in cash and cash equivalents		(14,285	)		—			3,521			(10,764	)
Cash and cash equivalents, beginning of period		54,255			64			6,819			61,138

Cash and cash equivalents, end of period	$	39,970		$	64		$	10,340		$	50,374