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 uses Adjusted EBITDA as the primary metric to measure the segments’ operating performance.

Adjusted EBITDA is a non-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 the segments’ operating performance, as displayed in the reconciliation below. Management believes non-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:



	Successor			Predecessor
	Three Months Ended March 31, 2018			Three Months Ended March 31, 2017
	(Dollars in millions)
Revenues:
Powder River Basin Mining	$	389.3		$	394.3
Midwestern U.S. Mining	201.7			193.2
Western U.S. Mining	143.7			149.7
Australian Metallurgical Mining	466.2			328.9
Australian Thermal Mining	201.4			224.8
Trading and Brokerage	20.1			15.0
Corporate and Other	40.3			20.3
Total	$	1,462.7		$	1,326.2

Adjusted EBITDA:
Powder River Basin Mining	$	74.5		$	91.7
Midwestern U.S. Mining	31.2			50.0
Western U.S. Mining	32.0			50.0
Australian Metallurgical Mining	166.4			109.6
Australian Thermal Mining	61.6			75.6
Trading and Brokerage	1.2			8.8
Corporate and Other ⁽¹⁾	(3.0		)	(44.4		)
Total	$	363.9		$	341.3

⁽¹⁾

Includes the gain of $20.6 million on the sale of certain surplus land assets in Queensland and the gain of $7.1 million recognized on the sale of the Company’s interest in the RMJV during the three months ended March 31, 2018 and the gain of $19.7 million recognized on the sale of Dominion Terminal Associates during the three months ended March 31, 2017, as described in Note 15. “Other Events”.

A reconciliation of consolidated income from continuing operations, net of income taxes to Adjusted EBITDA follows:



	Successor			Predecessor
	Three Months Ended March 31, 2018			Three Months Ended March 31, 2017
	(Dollars in millions)
Income from continuing operations, net of income taxes	$	208.3		$	124.3
Depreciation, depletion and amortization	169.6			119.9
Asset retirement obligation expenses	12.3			14.6
Asset impairment	—			30.5
Changes in deferred tax asset valuation allowance and amortization of basis difference related to equity affiliates	(7.6		)	(5.2		)
Interest expense	36.3			32.9
Interest income	(7.2		)	(2.7		)
Reorganization items, net	(12.8		)	41.4
Unrealized gains on economic hedges	(38.6		)	(16.6		)
Unrealized losses on non-coal trading derivative contracts	1.8			—
Take-or-pay contract-based intangible recognition	(8.3		)	—
Income tax provision	10.1			2.2
Total Adjusted EBITDA	$	363.9		$	341.3