Management’s Discussion and Analysis
MD&A Quicklinks
- Results of Operations
- Retained Liabilities and Assets of Former Natural Resource Operations
- Executive Overview
- Legacy Liabilities and Assets
- Projected Payments and Expenses of Retained Coal Liabilities and Administrative Costs
- Company-Sponsored Retiree Medical Benefits Obligations and VEBA
- Health Benefit Act Obligations
- Black Lung Obligations
- Withdrawal Liabilities
- Discontinued Operations
- Sale of Other Natural Resources Assets
- Liquidity and Capital Resources
Liquidity and Capital Resources
Summary of Cash Flow Information
| Years Ended December 31, |
$ change | |||||||
|---|---|---|---|---|---|---|---|---|
| (In millions) | 2004 | 2003 | 2002 | 2004 | 2003 | |||
| Cash flows from operating activities | ||||||||
| Continuing operations: | ||||||||
| Before changes in operating assets and liabilities | $ | 322.0 | 264.8 | 276.6 | $ | 57.2 | (11.8) | |
| Changes in assets and liabilities, including working capital | (42.1) | 16.8 | 21.1 | (58.9) | (4.3) | |||
| Discontinued operations: | ||||||||
| Natural gas, timber and gold | 0.2 | 19.2 | 10.2 | (19.0) | 9.0 | |||
| Coal | - | - | (66.6) | - | 66.6 | |||
| Operating activities | 280.1 | 300.8 | 241.3 | (20.7) | 59.5 | |||
| Cash flows from investing activities | ||||||||
| Continuing operations: | ||||||||
| Capital and aircraft heavy maintenance expenditures | (245.4) | (226.6) | (224.4) | (18.8) | (2.2) | |||
| Net proceeds from: | ||||||||
| Disposal of former natural resource interests | 28.6 | 119.4 | 42.3 | (90.8) | 77.1 | |||
| Notes receivable and settlement of royalty agreement | - | 26.0 | - | (26.0) | 26.0 | |||
| Subtotal of natural resource cash proceeds | 28.6 | 145.4 | 42.3 | (116.8) | 103.1 | |||
| Contributions to VEBA (a) | - | (82.0) | - | 82.0 | (82.0) | |||
| Acquisitions | (14.8) | (8.1) | (0.1) | (6.7) | (8.0) | |||
| Other | 9.9 | 17.9 | 4.4 | (8.0) | 13.5 | |||
| Discontinued operations: | ||||||||
| Natural gas, timber and gold | (0.8) | (8.8) | (10.9) | 8.0 | 2.1 | |||
| Coal | - | - | (19.7) | - | 19.7 | |||
| Investing activities | (222.5) | (162.2) | (208.4) | (60.3) | 46.2 | |||
| Cash flows before financing activities | $ | 57.6 | 138.6 | 32.9 | $ | (81.0) | 105.7 | |
- (a)
- In 2004, the VEBA was restricted to pay coal related retiree medical benefits, as a result the Company began to account for the VEBA as an offset to the postretirement obligation (see note 4 to the consolidated financial statements). Accordingly, $50 million of net cash contributions in 2004 have been classified within operating activities. In 2003, $82 million of contributions were classified within investing activities.