Intangible Contract Assets and Liabilities

As described in Note 3. "Emergence from the Chapter 11 Cases and Fresh Start Reporting," at the Effective Date, the Company recorded intangible assets of $314.9 million and liabilities of $58.7 million to reflect the inherent fair value of certain U.S. coal supply agreements as a result of favorable and unfavorable differences between contract terms and estimated market terms for the same coal products, and also recorded intangible liabilities of $116.2 million related to unutilized capacity under its port and rail take-or-pay contracts. The balances and respective balance sheet classifications of such assets and liabilities at June 30, 2017, net of accumulated amortization, are set forth in the following table:



	Successor
	June 30, 2017
	(Dollars in millions)
	Assets		Liabilities			Net Total
Coal supply agreements	$	279.7	$	(53.2	)	$	226.5
Take-or-pay contracts	—		(106.7		)	(106.7		)
Total	$	279.7	$	(159.9	)	$	119.8

Balance sheet classification:
Investments and other assets	$	279.7	$	—		$	279.7
Accounts payable and accrued expenses	—		(30.6		)	(30.6		)
Other noncurrent liabilities	—		(129.3		)	(129.3		)
Total	$	279.7	$	(159.9	)	$	119.8

Amortization of the intangible assets and liabilities related to coal supply agreements occurs ratably based upon coal volumes shipped per contract and is recorded as a component of "Depreciation, depletion and amortization" in the accompanying condensed consolidated statements of operations. Such amortization amounted to $29.7 million during the Successor period April 2, 2017 through June 30, 2017. The Company anticipates net amortization of sales contracts, based upon expected shipments in the next five years, to be an expense of approximately $67.2 million during the six months ended December 31, 2017, and for the years 2018 through 2021, expense of approximately $76.6 million, $37.9 million, $8.8 million, and $7.3 million, respectively.

Future unutilized capacity and the amortization periods related to the take-or-pay contract intangible liabilities are based upon estimates of forecasted usage and may differ from actual usage. Such amortization amounted to $9.5 million during the Successor period April 2, 2017 through June 30, 2017, which is classified as a reduction to "Operating costs and expenses" in the accompanying condensed consolidated statements of operations. The Company anticipates net amortization of take-or-pay contract intangible liabilities to be approximately $12.8 million during the six months ended December 31, 2017, and for the years 2018 through 2021, approximately $27.1 million, $18.2 million, $9.2 million, and $4.4 million, respectively.