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						Successor						Predecessor
	Three Months Ended June 30, 2018			April 2 through June 30, 2017			Six Months Ended June 30, 2018			April 2 through June 30, 2017			January 1 through April 1, 2017
	(Dollars in millions)
Revenues:
Powder River Basin Mining	$	321.5		$	365.4		$	710.8		$	365.4		$	394.3
Midwestern U.S. Mining	197.5			194.9			399.2			194.9			193.2
Western U.S. Mining	139.6			125.4			283.3			125.4			149.7
Australian Metallurgical Mining	417.5			287.8			883.7			287.8			328.9
Australian Thermal Mining	267.4			239.2			468.8			239.2			224.8
Trading and Brokerage	10.0			5.2			30.1			5.2			15.0
Corporate and Other	(44.1		)	40.4			(3.8		)	40.4			20.3
Total	$	1,309.4		$	1,258.3		$	2,772.1		$	1,258.3		$	1,326.2

Adjusted EBITDA:
Powder River Basin Mining	$	62.0		$	84.8		$	136.5		$	84.8		$	91.7
Midwestern U.S. Mining	42.0			46.5			73.2			46.5			50.0
Western U.S. Mining	33.9			44.9			65.9			44.9			50.0
Australian Metallurgical Mining	158.5			71.9			324.9			71.9			109.6
Australian Thermal Mining	107.6			105.9			169.2			105.9			75.6
Trading and Brokerage	3.1			(5.1		)	4.3			(5.1		)	8.8
Corporate and Other ⁽¹⁾	(37.5		)	(31.1		)	(40.5		)	(31.1		)	(44.4		)
Total	$	369.6		$	317.8		$	733.5		$	317.8		$	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 six months ended June 30, 2018 and the gain of $19.7 million recognized on the sale of Dominion Terminal Associates during the period January 1 through April 1, 2017, as described in Note 15. “Other Events”.

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



	Successor						Predecessor			Successor						Predecessor
	Three Months Ended June 30, 2018			April 2 through June 30, 2017			April 1, 2017			Six Months Ended June 30, 2018			April 2 through June 30, 2017			January 1 through April 1, 2017
	(Dollars in millions)
Income (loss) from continuing operations, net of income taxes	$	120.0		$	101.4		$	(319.8	)	$	328.3		$	101.4		$	(195.5	)
Depreciation, depletion and amortization	163.9			148.3			—			333.5			148.3			119.9
Asset retirement obligation expenses	13.2			11.0			—			25.5			11.0			14.6
Asset impairment	—			—			—			—			—			30.5
Changes in deferred tax asset valuation allowance and amortization of basis difference related to equity affiliates	(8.4		)	(4.3		)	—			(16.0		)	(4.3		)	(5.2		)
Interest expense	38.3			41.4			—			74.6			41.4			32.9
Loss on early debt extinguishment	2.0			—			—			2.0			—			—
Interest income	(7.0		)	(1.5		)	—			(14.2		)	(1.5		)	(2.7		)
Reorganization items, net	—			—			585.8			(12.8		)	—			627.2
Break fees related to terminated asset sales	—			(28.0		)	—			—			(28.0		)	—
Unrealized losses (gains) on economic hedges	48.1			(9.4		)	—			9.5			(9.4		)	(16.6		)
Unrealized (gains) losses on non-coal trading derivative contracts	(0.1		)	(3.2		)	—			1.7			(3.2		)	—
Coal inventory revaluation	—			67.3			—			—			67.3			—
Take-or-pay contract-based intangible recognition	(7.8		)	(9.9		)	—			(16.1		)	(9.9		)	—
Income tax provision (benefit)	7.4			4.7			(266.0		)	17.5			4.7			(263.8		)
Total Adjusted EBITDA	$	369.6		$	317.8		$	—		$	733.5		$	317.8		$	341.3