Question-and-Answer Session
Yes, sir. [Operator Instructions]. We'll take our first question from Luther Lu with Friedman, Billings, Ramsey.
Luther Lu - Friedman, Billings, Ramsey
Hello.
Steven F. Leer - Chairman and Chief Executive Officer
Hey, Luther. How are you?
John W. Eaves - President and Chief Operating Officer
How are you?
Luther Lu - Friedman, Billings, Ramsey
Good, good. First question is for John, could you quantify the impact on the costs with the Midwest flooding?
John W. Eaves - President and Chief Operating Officer
Luther, we really hadn't planned to quantify the impact. I mean, the impact on Arch volume was 1 million tons. We haven't really identified the financial impact for the flooding.
Luther Lu - Friedman, Billings, Ramsey
Okay. And for... this is for the CFO, John. Why is the tax rate still at 11% to 15% given that second quarter was significantly higher than that?
John T. Drexler - Senior Vice President and Chief Financial Officer
Luther, we determine our cash rates, based on our overall annual profitability levels. So the rate actually in the second quarter was slightly stronger, reflecting our outlook for the remainder... our increased guidance. However, similar to prior years, that tax rate can become a little bit lumpy from quarter-to-quarter from the standpoint on how we utilize our deferred tax assets, in the way we're utilizing our NOLs and our AMT credit carryforwards. So we're targeting a rate that will be higher than that.
Luther Lu - Friedman, Billings, Ramsey
Okay.
John W. Eaves - President and Chief Operating Officer
To circle back just real briefly on the PRB impact, I mean certainly what we try to do because of the Midwest large, we went back and try to do any maintenance or anything we could do during the quarter, which would free us out once we get back to normalized shipments, where we could manage the mine more effectively. So, I think we've done that and hopefully you'll see some improvement in that cost number in the third and fourth quarter.
John T. Drexler - Senior Vice President and Chief Financial Officer
And Luther any quarter from... we are back to the tax rate question. For the quarter also, the trading results do not get the benefit of percentage depletion. So there is a higher corporate tax rate there that comes into play, 36%.
Luther Lu - Friedman, Billings, Ramsey
Okay, got you. And if I may ask one more question on the Colorado Western by two minutes coal that you guys signed, any for export and do you have any met coal from that region?
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