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Segment Information | 6 Months Ended
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Jun. 30, 2017
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company reports its results of operations through the following reportable segments: "Powder River Basin Mining," “Midwestern U.S. Mining," “Western U.S. Mining,” “Australian Metallurgical Mining," "Australian Thermal Mining," “Trading and Brokerage” and “Corporate and Other.” The Company’s chief operating decision maker (CODM) uses Adjusted EBITDA as the primary metric to measure each of the segment's operating performance. Adjusted EBITDA is a non-U.S. GAAP measure defined as income (loss) from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses, depreciation, depletion and amortization and reorganization items, net. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing each of the segment's operating performance, as displayed in the reconciliation below. Management believes non-U.S. GAAP performance measures are used by investors to measure the Company's operating performance and lenders to measure the Company's ability to incur and service debt. Adjusted EBITDA is not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies. Reportable segment results were as follows:
|  | 2017 |  |  | 2016 |  | 2017 |  | 2016
|  | Successor |  |  | Predecessor |  | Successor |  |  | Predecessor
|  | April 2 through June 30 |  |  | Three Months Ended June 30 |  | April 2 through June 30 |  |  | January 1 through April 1 |  | Six Months Ended June 30
|  | (Dollars in millions)
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Powder River Basin Mining |  | $ | 365.4 |  |  |  | $ | 306.6 |  |  | $ | 365.4 |  |  |  | $ | 394.3 |  |  | $ | 642.6 |
Midwestern U.S. Mining |  | 194.9 |  |  |  | 189.0 |  |  | 194.9 |  |  |  | 193.2 |  |  | 388.6 |
Western U.S. Mining |  | 125.4 |  |  |  | 112.1 |  |  | 125.4 |  |  |  | 149.7 |  |  | 224.6 |
Australian Metallurgical Mining |  | 287.8 |  |  |  | 245.2 |  |  | 287.8 |  |  |  | 328.9 |  |  | 450.3 |
Australian Thermal Mining |  | 239.2 |  |  |  | 186.8 |  |  | 239.2 |  |  |  | 224.8 |  |  | 363.5 |
Trading and Brokerage |  | 5.2 |  |  |  | 17.5 |  |  | 5.2 |  |  |  | 15.0 |  |  | 13.8 |
Corporate and Other |  | 40.4 |  |  |  | (17.0 | ) |  | 40.4 |  |  |  | 20.3 |  |  | (16.0 | )
Total |  | $ | 1,258.3 |  |  |  | $ | 1,040.2 |  |  | $ | 1,258.3 |  |  |  | $ | 1,326.2 |  |  | $ | 2,067.4 |
Adjusted EBITDA: |  |  |  |  |  |  |  |  |  |  |  |
Powder River Basin Mining |  | $ | 84.8 |  |  |  | $ | 80.6 |  |  | $ | 84.8 |  |  |  | $ | 91.7 |  |  | $ | 154.4 |
Midwestern U.S. Mining |  | 46.5 |  |  |  | 52.7 |  |  | 46.5 |  |  |  | 50.0 |  |  | 113.3 |
Western U.S. Mining |  | 44.9 |  |  |  | 28.8 |  |  | 44.9 |  |  |  | 50.0 |  |  | 48.9 |
Australian Metallurgical Mining |  | 71.9 |  |  |  | (49.2 | ) |  | 71.9 |  |  |  | 109.6 |  |  | (86.5 | )
Australian Thermal Mining |  | 105.9 |  |  |  | 45.4 |  |  | 105.9 |  |  |  | 75.6 |  |  | 88.3 |
Trading and Brokerage |  | (5.1 | ) |  |  | (18.2 | ) |  | (5.1 | ) |  |  | 8.8 |  |  | (31.9 | )
Corporate and Other (1) |  | (31.1 | ) |  |  | (67.5 | ) |  | (31.1 | ) |  |  | (44.4 | ) |  | (178.7 | )
Total |  | $ | 317.8 |  |  |  | $ | 72.6 |  |  | $ | 317.8 |  |  |  | $ | 341.3 |  |  | $ | 107.8 |
(1) | Includes a gain of $68.1 million related to the 2016 Settlement Agreement described in Note 5. "Discontinued Operations" during the six months ended June 30, 2016 and a gain of $19.7 million related to the sale of Dominion Terminal Associates during the predecessor period January 1 through April 1, 2017.
A reconciliation of consolidated income (loss) from continuing operations, net of income taxes to Adjusted EBITDA follows:
|  | 2017 |  | 2016 |  | 2017 |  | 2016
|  | Successor | Predecessor |  | Predecessor |  | Successor | Predecessor |  | Predecessor
|  | April 2 through June 30 | April 1 |  | Three Months Ended June 30 |  | April 2 through June 30 | January 1 through April 1 |  | Six Months Ended June 30
|  | (Dollars in millions)
Income (loss) from continuing operations, net of income taxes |  | $ | 101.4 |  | $ | (319.8 | ) |  | $ | (223.2 | ) |  | $ | 101.4 |  | $ | (195.5 | ) |  | $ | (390.9 | )
Depreciation, depletion and amortization |  | 148.3 |  | — |  |  | 115.9 |  |  | 148.3 |  | 119.9 |  |  | 227.7 |
Asset retirement obligation expenses |  | 11.0 |  | — |  |  | 11.5 |  |  | 11.0 |  | 14.6 |  |  | 24.6 |
Selling and administrative expenses related to debt restructuring |  | — |  | — |  |  | 7.2 |  |  | — |  | — |  |  | 21.5 |
Asset impairment |  | — |  | — |  |  | — |  |  | — |  | 30.5 |  |  | 17.2 |
Change in deferred tax asset valuation allowance related to equity affiliates |  | (4.3 | ) | — |  |  | (1.4 | ) |  | (4.3 | ) | (5.2 | ) |  | — |
Interest expense |  | 41.4 |  | — |  |  | 59.0 |  |  | 41.4 |  | 32.9 |  |  | 185.2 |
Interest income |  | (1.5 | ) | — |  |  | (1.3 | ) |  | (1.5 | ) | (2.7 | ) |  | (2.7 | )
Break fees related to terminated asset sales |  | (28.0 | ) | — |  |  | — |  |  | (28.0 | ) | — |  |  | — |
Realized losses on non-coal trading derivative contracts |  | — |  | — |  |  | 25.0 |  |  | — |  | — |  |  | — |
Unrealized gains on non-coal trading derivative contracts |  | (3.2 | ) | — |  |  | — |  |  | (3.2 | ) | — |  |  | — |
Unrealized (gains) losses on economic hedges |  | (9.4 | ) | — |  |  | 22.1 |  |  | (9.4 | ) | (16.6 | ) |  | 27.2 |
Coal inventory revaluation |  | 67.3 |  | — |  |  | — |  |  | 67.3 |  | — |  |  | — |
Take-or-pay contract-based intangible recognition |  | (9.9 | ) | — |  |  | — |  |  | (9.9 | ) | — |  |  | — |
Reorganization items, net |  | — |  | 585.8 |  |  | 95.4 |  |  | — |  | 627.2 |  |  | 95.4 |
Income tax provision (benefit) |  | 4.7 |  | (266.0 | ) |  | (37.6 | ) |  | 4.7 |  | (263.8 | ) |  | (97.4 | )
Total Adjusted EBITDA |  | $ | 317.8 |  | $ | — |  |  | $ | 72.6 |  |  | $ | 317.8 |  | $ | 341.3 |  |  | $ | 107.8 |
Asset details are reflected at the division level only for the Company's mining segments and are not allocated between each individual segment as such information is not regularly reviewed by the Company's CODM. Further, some assets service more than one segment within the division and an allocation of such assets would not be meaningful or representative on a segment by segment basis. Assets as of June 30, 2017 were as follows:
| U.S. Mining |  | Australian Mining |  | Trading and Brokerage |  | Corporate and Other |  | Consolidated
Successor Company | (Dollars in millions)
Total assets | $ | 3,997.5 |  |  | $ | 2,732.4 |  |  | $ | 44.0 |  |  | $ | 1,541.3 |  |  | $ | 8,315.2 |
Property, plant, equipment and mine development, net | 3,339.1 |  |  | 1,422.5 |  |  | — |  |  | 452.6 |  |  | 5,214.2 |
Assets as of December 31, 2016 were as follows:
| U.S. Mining |  | Australian Mining |  | Trading and Brokerage |  | Corporate and Other |  | Consolidated
Predecessor Company | (Dollars in millions)
Total assets | $ | 4,255.9 |  |  | $ | 5,402.2 |  |  | $ | 128.7 |  |  | $ | 1,990.9 |  |  | $ | 11,777.7 |
Property, plant, equipment and mine development, net | 3,970.6 |  |  | 3,905.8 |  |  | 0.2 |  |  | 900.1 |  |  | 8,776.7 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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