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 September 30, 2018			Three Months Ended September 30, 2017			Nine Months Ended September 30, 2018			April 2 through September 30, 2017			January 1 through April 1, 2017
	(Dollars in millions)
Revenues:
Powder River Basin Mining	$	373.7		$	420.9		$	1,084.5		$	786.3		$	394.3
Midwestern U.S. Mining	208.5			207.7			607.7			402.6			193.2
Western U.S. Mining	156.1			155.7			439.4			281.1			149.7
Australian Metallurgical Mining	370.3			415.9			1,254.0			703.7			328.9
Australian Thermal Mining	305.1			265.8			773.9			505.0			224.8
Trading and Brokerage	22.6			19.4			52.7			24.6			15.0
Corporate and Other	(23.7		)	(8.2		)	(27.5		)	32.2			20.3
Total	$	1,412.6		$	1,477.2		$	4,184.7		$	2,735.5		$	1,326.2

Adjusted EBITDA:
Powder River Basin Mining	$	88.2		$	112.7		$	224.7		$	197.5		$	91.7
Midwestern U.S. Mining	38.7			49.5			111.9			96.0			50.0
Western U.S. Mining	28.5			34.5			94.4			79.4			50.0
Australian Metallurgical Mining	90.7			143.1			415.6			215.0			109.6
Australian Thermal Mining	145.3			97.8			314.5			203.7			75.6
Trading and Brokerage	(2.4		)	2.7			1.9			(2.4		)	8.8
Corporate and Other ⁽¹⁾	(16.9		)	(29.0		)	(57.4		)	(60.1		)	(44.4		)
Total	$	372.1		$	411.3		$	1,105.6		$	729.1		$	341.3

⁽¹⁾

As described in Note 15. “Other Events,” included in the three and nine months ended September 30, 2018 is the gain of $20.5 million recognized on the sale of surplus coal resources associated with the Millennium Mine. Also included in the nine months ended September 30, 2018 is the gain of $20.6 million recognized 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. Included in the period January 1 through April 1, 2017 is the gain of $19.7 million recognized on the sale of Dominion Terminal Associates.

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



	Successor						Successor						Predecessor
	Three Months Ended September 30, 2018			Three Months Ended September 30, 2017			Nine Months Ended September 30, 2018			April 2 through September 30, 2017			January 1 through April 1, 2017
	(Dollars in millions)
Income (loss) from continuing operations, net of income taxes	$	83.9		$	233.7		$	412.2		$	335.1		$	(195.5	)
Depreciation, depletion and amortization	169.6			194.5			503.1			342.8			119.9
Asset retirement obligation expenses	12.4			11.3			37.9			22.3			14.6
Asset impairment	—			—			—			—			30.5
Provision for North Goonyella equipment loss	49.3			—			49.3			—			—
Changes in deferred tax asset valuation allowance and amortization of basis difference related to equity affiliates	(6.1		)	(3.4		)	(22.1		)	(7.7		)	(5.2		)
Interest expense	38.2			42.4			112.8			83.8			32.9
Loss on early debt extinguishment	—			12.9			2.0			12.9			—
Interest income	(10.1		)	(2.0		)	(24.3		)	(3.5		)	(2.7		)
Reorganization items, net	—			—			(12.8		)	—			627.2
Break fees related to terminated asset sales	—			—			—			(28.0		)	—
Unrealized losses (gains) on economic hedges	26.8			10.8			36.3			1.4			(16.6		)
Unrealized (gains) losses on non-coal trading derivative contracts	(0.3		)	1.7			1.4			(1.5		)	—
Coal inventory revaluation	—			—			—			67.3			—
Take-or-pay contract-based intangible recognition	(5.4		)	(6.5		)	(21.5		)	(16.4		)	—
Income tax provision (benefit)	13.8			(84.1		)	31.3			(79.4		)	(263.8		)
Total Adjusted EBITDA	$	372.1		$	411.3		$	1,105.6		$	729.1		$	341.3