v2.4.0.8
Basis of Presentation
 6 Months Ended
Jun. 30, 2013
BASIS OF PRESENTATION: [Abstract]  
Basis of Presentation
NOTE 1—BASIS OF PRESENTATION:

The accompanying Unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for future periods.

The balance sheet at December 31, 2012 has been derived from the Audited Consolidated Financial Statements at that date but does not include all the notes required by generally accepted accounting principles for complete financial statements. For further information, refer to the Consolidated Financial Statements and related notes for the year ended December 31, 2012 included in CONSOL Energy Inc.'s Form 10-K.

Certain amounts in prior periods have been reclassified to conform with the report classifications of the year ended December 31, 2012, with no effect on previously reported net income or stockholders' equity.

Basic earnings per share are computed by dividing net (loss) income attributable to shareholders by the weighted average shares outstanding during the reporting period. Dilutive earnings per share are computed similarly to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options, performance stock options, and CONSOL share units, and the assumed vesting of restricted and performance share units, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options, performance share options, and CONSOL share units were exercised, that outstanding restricted stock units and performance share units were released, and that the proceeds from such activities were used to acquire shares of common stock at the average market price during the reporting period. CONSOL Energy Inc. (CONSOL Energy or the Company) includes the impact of pro forma deferred tax assets in determining potential windfalls and shortfalls for purposes of calculating assumed proceeds under the treasury stock method. The table below sets forth the share-based awards that have been excluded from the computation of the diluted earnings per share because their effect would be anti-dilutive:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
Anti-Dilutive Options
4,845,029
 
 
2,421,923
 
 
4,845,029
 
 
2,418,983
 
Anti-Dilutive Restricted Stock Units
1,383,908
 
 
2,642
 
 
1,383,908
 
 
13,552
 
Anti-Dilutive Performance Share Units
83,356
 
 
91,340
 
 
83,356
 
 
91,340
 
Anti-Dilutive Performance Share Options
602,101
 
 
501,744
 
 
602,101
 
 
501,744
 
 
6,914,394
 
 
3,017,649
 
 
6,914,394
 
 
3,025,619
 


The table below sets forth the share-based awards that have been exercised or released:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
Options
160,119
 
 
39,418
 
 
245,113
 
 
51,134
 
Restricted Stock Units
89,632
 
 
64,589
 
 
568,141
 
 
522,607
 
Performance Share Units
—
 
 
—
 
 
159,228
 
 
229,730
 
 
249,751
 

104,007
 
 
972,482
 
 
803,471
 


The weighted average exercise price per share of the options exercised during the three months ended June 30, 2013 and 2012 was $9.90 and $10.26, respectively. The weighted average exercise price per share of the options exercised during the six months ended June 30, 2013 and 2012 was $10.16 and $11.07, respectively.
The computations for basic and dilutive earnings per share are as follows:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders
$
(12,526
)
 
$
152,739
 
 
$
(14,090
)
 
$
249,935
 
Weighted average shares of common stock outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
228,721,980
 
 
227,548,394
 
 
228,520,886
 
 
227,408,832
 
Effect of stock-based compensation awards
—
 
 
1,703,791
 
 
—
 
 
1,713,762
 
Dilutive
228,721,980
 
 
229,252,185
 
 
228,520,886
 
 
229,122,594
 
Earnings per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
(0.05
)
 
$
0.67
 
 
$
(0.06
)
 
$
1.10
 
Dilutive
$
(0.05
)
 
$
0.67
 
 
$
(0.06
)
 
$
1.09
 


Changes in Accumulated Other Comprehensive Income / (Loss) by component, net of tax, were as follows:
 
Gains and Losses on Cash Flow Hedges
 
Postretirement Benefits
 
Total
Balance at December 31, 2012
$
76,761
 
 
$
(824,103
)
 
$
(747,342
)
Other comprehensive income before reclassifications
27,154
 
 
48,766
 
 
75,920
 
Amounts reclassified from accumulated other comprehensive income
(32,241
)
 
39,895
 
 
7,654
 
New current period other comprehensive income
(5,087
)
 
88,661
 
 
83,574
 
Balance at June 30, 2013
$
71,674
 
 
$
(735,442
)
 
$
(663,768
)


The following table shows the reclassification of adjustments out of Accumulated Other Comprehensive Loss:

 
Three Months Ended June 30,
 
Six Months Ended June 30,

2013
 
2012
 
2013
 
2012
Derivative Instruments (Note 12)
 
 
 
 
 
 
 
Natural gas price swaps
$
(20,070
)
 
$
(94,544
)
 
$
(54,767
)
 
$
(173,865
)
Tax benefit
10,542
 
 
36,697
 
 
22,526
 
 
68,077
 
Net of tax
$
(9,528
)
 
$
(57,847
)
 
$
(32,241
)
 
$
(105,788
)
Actuarially Determined Long-Term Liability Adjustments*(Note 3 and Note 4)
 
 
 
 
 
 
 
Amortization of prior service costs
$
(8,211
)
 
$
(13,915
)
 
$
(16,423
)
 
$
(26,021
)
Recognized net actuarial loss
23,559
 
 
26,072
 
 
48,747
 
 
53,077
 
Settlement loss
5,087
 
 
—
 
 
32,202
 
 
—
 
Total
20,435
 
 
12,157
 
 
64,526
 
 
27,056
 
Tax expense
(7,800
)
 
(4,571
)
 
(24,631
)
 
(10,173
)
Net of tax
$
12,635
 
 
$
7,586
 
 
$
39,895
 
 
$
16,883
 

 
*Excludes amounts related to the remeasurement of the Actuarially Determined Long-Term Liabilities for the three months and six months ended June 30, 2013 and June 30, 2012.