Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Loss from continuing operations before income taxes

oss) from continuing operations before income taxes for the periods presented below consisted of the following:



	Successor		Predecessor
	April 2 through December 31, 2017		January 1 through April 1, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015
	(Dollars in millions)
U.S.	$	10.4	$	2,408.7		$	(49.7	)	$	(515.9	)
Non-U.S.	541.7		(2,868.0		)	(708.6		)	(1,474.4		)
Total	$	552.1	$	(459.3	)	$	(758.3	)	$	(1,990.3	)

Components of income tax provision (benefit)

Total income tax benefit for the periods presented below consisted of the following:



	Successor			Predecessor
	April 2 through December 31, 2017			January 1 through April 1, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015
	(Dollars in millions)
Current:
U.S. federal	$	(101.4	)	$	(3.1	)	$	(12.4	)	$	(71.9	)
Non-U.S.	40.4			8.3			14.4			3.7
State	(0.4		)	(6.7		)	0.5			(0.6		)
Total current	(61.4		)	(1.5		)	2.5			(68.8		)
Deferred:
U.S. federal	(85.1		)	(101.0		)	(82.1		)	(117.4		)
Non-U.S.	(14.5		)	(160.4		)	(12.8		)	(15.0		)
State	—			(0.9		)	(2.1		)	(5.9		)
Total deferred	(99.6		)	(262.3		)	(97.0		)	(138.3		)
Total income tax benefit	$	(161.0	)	$	(263.8	)	$	(94.5	)	$	(207.1	)

Reconciliation of the expected statutory federal income tax provision (benefit) to the Company's actual income tax provision

The following is a reconciliation of the expected statutory federal income tax expense (benefit) to the Company’s income tax benefit for the periods presented below:



	Successor			Predecessor
	April 2 through December 31, 2017			January 1 through April 1, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015
	(Dollars in millions)
Expected income tax expense (benefit) at U.S. federal statutory rate	$	193.2		$	(160.8	)	$	(265.4	)	$	(696.6	)
Changes in valuation allowance, income tax	(744.9		)	(777.2		)	2,453.9			452.9
Remeasurement due to the Tax Cuts and Jobs Act	473.5			—			—			—
Reorganization costs	—			2,130.0			29.6			—
Bad debt deduction	—			(1,639.6		)	—			—
Worthless partnership	—			—			(2,204.4		)	—
Changes in tax reserves	7.2			(9.2		)	2.3			(21.4		)
Excess depletion	(40.4		)	(11.2		)	(37.2		)	(53.7		)
Foreign earnings provision differential	(26.3		)	158.2			27.5			146.5
General business tax credits	(0.2		)	(0.1		)	(14.2		)	(15.7		)
Remeasurement of foreign income tax accounts	(0.3		)	9.4			(2.0		)	(22.1		)
State income taxes, net of federal tax benefit	(3.1		)	40.6			(90.2		)	(20.1		)
Other, net	(19.7		)	(3.9		)	5.6			23.1
Total income tax benefit	$	(161.0	)	$	(263.8	)	$	(94.5	)	$	(207.1	)

Tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of December 31, 2017 and 2016 consisted of the following:



	Successor			Predecessor
	December 31, 2017			December 31, 2016
	(Dollars in millions)
Deferred tax assets:
Tax loss carryforwards and credits	$	2,068.0		$	4,284.4
Property, plant, equipment and mine development, principally due to differences in depreciation, depletion and asset impairments	463.8			424.4
Accrued postretirement benefit obligations	194.2			364.5
Asset retirement obligations	30.6			163.6
Financial guarantees	2.0			77.9
Employee benefits	25.3			57.0
Take or pay obligations	27.2			—
Hedge activities	10.5			21.0
Investments and other assets	137.2			—
Workers’ compensation obligations	6.4			7.5
Other	16.1			2.1
Total gross deferred tax assets	2,981.3			5,402.4
Valuation allowance, income tax	(2,432.5		)	(4,037.5		)
Total deferred tax assets	548.8			1,364.9
Deferred tax liabilities:
Property, plant, equipment and mine development, principally due to differences in depreciation, depletion and asset impairments	353.3			1,324.8
Unamortized discount on Convertible Junior Subordinated Debentures	—			127.7
Coal supply agreements	29.6			—
Investments and other assets	85.7			86.3
Total deferred tax liabilities	468.6			1,538.8
Net deferred tax asset (liability)	$	80.2		$	(173.9	)
Deferred taxes are classified as follows:
Noncurrent deferred income tax asset	$	85.6		$	—
Noncurrent deferred income tax liability	(5.4		)	(173.9		)
Net deferred tax asset (liability)	$	80.2		$	(173.9	)

Summary of Income Tax Contingencies [Table Text Block]

Net unrecognized tax benefits (excluding interest and penalties) were recorded as follows in the consolidated balance sheets as of December 31, 2017 and 2016:



	Successor		Predecessor
	December 31, 2017		December 31, 2016
	(Dollars in millions)
Deferred income taxes	$	10.9	$	8.9
Other noncurrent liabilities	1.8		11.2
Net unrecognized tax benefits	$	12.7	$	20.1
Gross unrecognized tax benefits	$	12.7	$	20.1

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for the periods presented below is as follows:



	Successor			Predecessor
	April 2 through December 31, 2017			January 1 through April 1, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015
	(Dollars in millions)
Balance at beginning of period	$	12.5		$	20.1		$	22.9		$	44.5
Additions for current year tax positions	0.8			—			1.5			2.3
Reductions for prior year tax positions	(0.5		)	(7.6		)	(2.8		)	(23.5		)
Reductions for settlements with tax authorities	(0.1		)	—			(1.5		)	(0.4		)
Balance at end of period	$	12.7		$	12.5		$	20.1		$	22.9

Summary of Companys tax (refunds) payments

The following table summarizes the Company’s income tax (refunds) payments, net for the periods presented below:



	Successor			Predecessor
	April 2 through December 31, 2017			January 1 through April 1, 2017		Year Ended December 31, 2016			Year Ended December 31, 2015
	(Dollars in millions)
U.S. — federal	$	(11.2	)	$	—	$	(56.5	)	$	(38.1	)
U.S. — state and local	—			—		1.4			0.4
Non-U.S.	10.4			5.5		15.0			11.9
Total income tax (refunds) payments, net	$	(0.8	)	$	5.5	$	(40.1	)	$	(25.8	)