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Segment and Geographic Information | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Segment and Geographic Information | Segment and Geographic Information During the fourth quarter of 2018, the Company purchased the Shoal Creek Mine, as further discussed in Note 3. “Acquisition of Shoal Creek Mine.” Due to the acquisition, the Company updated its reportable segments to reflect the manner in which its chief operating decision maker (CODM) views the Company’s businesses for purposes of reviewing performance, allocating resources and assessing future prospects and strategic execution. The Company now reports its results of operations primarily through the following reportable segments: Powder River Basin Mining, Midwestern U.S. Mining, Western U.S. Mining, Seaborne Metallurgical Mining, Seaborne Thermal Mining and Corporate and Other. Periods presented in this note have been recast for comparability. The principal business of the Company’s thermal mining segments in the U.S. is the mining, preparation and sale of thermal coal, sold primarily to electric utilities in the U.S. under long-term contracts, with a relatively small portion sold as international exports as conditions warrant. The Company’s Powder River Basin Mining operations consist of its mines in Wyoming. The mines in that segment are characterized by surface mining extraction processes, coal with a lower sulfur content and Btu and higher customer transportation costs (due to longer shipping distances). The Company’s Midwestern U.S. Mining operations include its Illinois and Indiana mining operations, which are characterized by a mix of surface and underground mining extraction processes, coal with a higher sulfur content and Btu and lower customer transportation costs (due to shorter shipping distances). The Company’s Western U.S. Mining operations reflect the aggregation of its New Mexico, Arizona and Colorado mining operations. The mines in that segment are characterized by a mix of surface and underground mining extraction processes and coal with a mid-range sulfur content and Btu. Geologically, the Company’s Powder River Basin Mining operations mine sub-bituminous coal deposits, its Midwestern U.S. Mining operations mine bituminous coal deposits and its Western U.S. Mining operations mine both bituminous and sub-bituminous coal deposits. The business of the Company’s seaborne operating platform is primarily export focused with customers spread across several countries, with a portion of its metallurgical and thermal coal sold within Australia. Generally, revenues from individual countries vary year by year based on steel and electricity demand, the strength of the global economy, governmental policies and several other factors, including those specific to each country. The Company classifies its seaborne mines within the Seaborne Metallurgical Mining or Seaborne Thermal Mining segments based on the primary customer base and coal reserve type of each mining operation. A small portion of the coal mined by the Seaborne Metallurgical Mining segment is of a thermal grade. Similarly, a small portion of the coal mined by the Seaborne Thermal Mining segment is of a metallurgical grade. Additionally, the Company may market some of its metallurgical coal products as a thermal coal product from time to time depending on market conditions. The Company’s Seaborne Metallurgical Mining operations consist of mines in Queensland, Australia, one in New South Wales, Australia and one in Alabama. The mines in that segment are characterized by both surface and underground extraction processes used to mine various qualities of metallurgical coal (low-sulfur, high Btu coal). The metallurgical coal qualities include hard coking coal, semi-hard coking coal, semi-soft coking coal and pulverized coal injection coal. The Company’s Seaborne Thermal Mining operations consist of mines in New South Wales, Australia. The mines in that segment are characterized by both surface and underground extraction processes used to mine low-sulfur, high Btu thermal coal. The Company’s Corporate and Other segment includes selling and administrative expenses, results from equity affiliates, corporate hedging activities, trading and brokerage activities, certain mining and export/transportation joint ventures, restructuring charges and activities associated with the optimization of its coal reserve and real estate holdings, minimum charges on certain transportation-related contracts, the closure of inactive mining sites and certain commercial matters. The Company’s CODM uses Adjusted EBITDA as the primary metric to measure the segments’ operating performance. Adjusted EBITDA is a non-GAAP financial 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. Segment results for the year ended December 31, 2018 were as follows:
| Successor
| Powder River Basin Mining |  | Midwestern U.S. Mining |  | Western U.S. Mining |  | Seaborne Metallurgical Mining |  | Seaborne Thermal Mining |  | Corporate and Other |  | Consolidated
| (Dollars in millions)
Revenues | $ | 1,424.8 |  |  | $ | 801.0 |  |  | $ | 592.0 |  |  | $ | 1,553.0 |  |  | $ | 1,099.2 |  |  | $ | 111.8 |  |  | $ | 5,581.8 |
Adjusted EBITDA | 284.5 |  |  | 145.2 |  |  | 145.4 |  |  | 441.4 |  |  | 452.0 |  |  | (89.2 | ) |  | 1,379.3 |
Additions to property, plant, equipment and mine development | 81.0 |  |  | 46.6 |  |  | 13.9 |  |  | 88.7 |  |  | 66.6 |  |  | 4.2 |  |  | 301.0 |
Federal coal lease expenditures | — |  |  | — |  |  | 0.5 |  |  | — |  |  | — |  |  | — |  |  | 0.5 |
Income from equity affiliates | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (68.1 | ) |  | (68.1 | )
Segment results for the period April 2 through December 31, 2017 were as follows:
| Successor
| Powder River Basin Mining |  | Midwestern U.S. Mining |  | Western U.S. Mining |  | Seaborne Metallurgical Mining |  | Seaborne Thermal Mining |  | Corporate and Other |  | Consolidated
| (Dollars in millions)
Revenues | $ | 1,178.7 |  |  | $ | 592.3 |  |  | $ | 440.7 |  |  | $ | 1,221.0 |  |  | $ | 772.5 |  |  | $ | 47.4 |  |  | $ | 4,252.6 |
Adjusted EBITDA | 278.8 |  |  | 124.4 |  |  | 131.8 |  |  | 414.9 |  |  | 306.6 |  |  | (111.2 | ) |  | 1,145.3 |
Additions to property, plant, equipment and mine development | 32.6 |  |  | 21.7 |  |  | 13.8 |  |  | 56.0 |  |  | 39.2 |  |  | 3.3 |  |  | 166.6 |
Income from equity affiliates | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (49.0 | ) |  | (49.0 | )
Segment results for the period January 1 through April 1, 2017 were as follows:
| Predecessor
| Powder River Basin Mining |  | Midwestern U.S. Mining |  | Western U.S. Mining |  | Seaborne Metallurgical Mining |  | Seaborne Thermal Mining |  | Corporate and Other |  | Consolidated
| (Dollars in millions)
Revenues | $ | 394.3 |  |  | $ | 193.2 |  |  | $ | 149.7 |  |  | $ | 328.9 |  |  | $ | 224.8 |  |  | $ | 35.3 |  |  | $ | 1,326.2 |
Adjusted EBITDA | 91.7 |  |  | 50.0 |  |  | 50.0 |  |  | 109.6 |  |  | 75.6 |  |  | (35.6 | ) |  | 341.3 |
Additions to property, plant, equipment and mine development | 19.3 |  |  | 2.8 |  |  | 3.1 |  |  | 5.2 |  |  | 2.3 |  |  | 0.1 |  |  | 32.8 |
Federal coal lease expenditures | — |  |  | — |  |  | 0.5 |  |  | — |  |  | — |  |  | — |  |  | 0.5 |
Income from equity affiliates | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (15.0 | ) |  | (15.0 | )
Segment results for the year ended December 31, 2016 were as follows:
| Predecessor
| Powder River Basin Mining |  | Midwestern U.S. Mining |  | Western U.S. Mining |  | Seaborne Metallurgical Mining |  | Seaborne Thermal Mining |  | Corporate and Other |  | Consolidated
| (Dollars in millions)
Revenues | $ | 1,473.3 |  |  | $ | 792.5 |  |  | $ | 526.0 |  |  | $ | 1,090.4 |  |  | $ | 824.9 |  |  | $ | 8.2 |  |  | $ | 4,715.3 |
Adjusted EBITDA | 379.9 |  |  | 217.3 |  |  | 101.6 |  |  | (16.3 | ) |  | 217.6 |  |  | (368.1 | ) |  | 532.0 |
Additions to property, plant, equipment and mine development | 33.0 |  |  | 18.7 |  |  | 20.8 |  |  | 29.9 |  |  | 22.1 |  |  | 2.1 |  |  | 126.6 |
Federal coal lease expenditures | 248.4 |  |  | — |  |  | 0.6 |  |  | — |  |  | — |  |  | — |  |  | 249.0 |
Income from equity affiliates | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (16.2 | ) |  | (16.2 | )
Asset details are reflected at the division level only for the Company’s mining segments and are not allocated between each individual segment as such information is not regularly reviewed by the Company’s CODM. Further, some assets service more than one segment within the division and an allocation of such assets would not be meaningful or representative on a segment by segment basis. Assets as of December 31, 2018 were as follows:
| Successor
| U.S. Thermal Mining |  | Seaborne Mining |  | Corporate and Other |  | Consolidated
| (Dollars in millions)
Total assets | $ | 3,481.7 |  |  | $ | 2,044.6 |  |  | $ | 1,897.4 |  |  | $ | 7,423.7 |
Property, plant, equipment and mine development, net | 3,180.4 |  |  | 1,661.3 |  |  | 365.3 |  |  | 5,207.0 |
Assets as of December 31, 2017 were as follows:
| Successor
| U.S. Thermal Mining |  | Seaborne Mining |  | Corporate and Other |  | Consolidated
| (Dollars in millions)
Total assets | $ | 3,846.5 |  |  | $ | 2,339.6 |  |  | $ | 1,995.1 |  |  | $ | 8,181.2 |
Property, plant, equipment and mine development, net | 3,361.0 |  |  | 1,501.7 |  |  | 249.2 |  |  | 5,111.9 |
Assets as of December 31, 2016 were as follows:
| Predecessor
| U.S. Thermal Mining |  | Seaborne Mining |  | Corporate and Other |  | Consolidated
| (Dollars in millions)
Total assets | $ | 4,255.9 |  |  | $ | 5,402.2 |  |  | $ | 2,119.6 |  |  | $ | 11,777.7 |
Property, plant, equipment and mine development, net | 3,970.6 |  |  | 3,905.8 |  |  | 900.3 |  |  | 8,776.7 |
A reconciliation of consolidated income (loss) from continuing operations, net of income taxes to Adjusted EBITDA follows:
| Successor | Predecessor
| Year Ended December 31, 2018 |  | April 2 through December 31, 2017 | January 1 through April 1, 2017 |  | Year Ended December 31, 2016
| (Dollars in millions)
Income (loss) from continuing operations, net of income taxes | $ | 645.7 |  |  | $ | 713.1 |  | $ | (195.5 | ) |  | $ | (663.8 | )
Depreciation, depletion and amortization | 679.0 |  |  | 521.6 |  | 119.9 |  |  | 465.4 |
Asset retirement obligation expenses | 53.0 |  |  | 41.2 |  | 14.6 |  |  | 41.8 |
Selling and administrative expenses related to debt restructuring | — |  |  | — |  | — |  |  | 21.5 |
Asset impairment | — |  |  | — |  | 30.5 |  |  | 247.9 |
Provision for North Goonyella equipment loss | 66.4 |  |  | — |  | — |  |  | — |
Changes in deferred tax asset valuation allowance and reserves and amortization of basis difference related to equity affiliates | (18.3 | ) |  | (17.3 | ) | (5.2 | ) |  | (7.5 | )
Interest expense | 149.3 |  |  | 119.7 |  | 32.9 |  |  | 298.6 |
Loss on early debt extinguishment | 2.0 |  |  | 20.9 |  | — |  |  | 29.5 |
Interest income | (33.6 | ) |  | (5.6 | ) | (2.7 | ) |  | (5.7 | )
Net mark-to-market adjustment on actuarially determined liabilities | (125.5 | ) |  | (45.2 | ) | — |  |  | — |
Reorganization items, net | (12.8 | ) |  | — |  | 627.2 |  |  | 159.0 |
Gain on disposal of reclamation liability | — |  |  | (31.2 | ) | — |  |  | — |
Gain on disposal of Burton Mine assets | — |  |  | (52.2 | ) | — |  |  | — |
Break fees related to terminated asset sales | — |  |  | (28.0 | ) | — |  |  | — |
Unrealized (gains) losses on economic hedges | (18.3 | ) |  | 23.0 |  | (16.6 | ) |  | 39.8 |
Unrealized losses on non-coal trading derivative contracts | 0.7 |  |  | 1.5 |  | — |  |  | — |
Fresh start coal inventory revaluation | — |  |  | 67.3 |  | — |  |  | — |
Fresh start take-or-pay contract-based intangible recognition | (26.7 | ) |  | (22.5 | ) | — |  |  | — |
Income tax provision (benefit) | 18.4 |  |  | (161.0 | ) | (263.8 | ) |  | (94.5 | )
Total Adjusted EBITDA | $ | 1,379.3 |  |  | $ | 1,145.3 |  | $ | 341.3 |  |  | $ | 532.0 |
The following table presents revenues as a percent of total revenue from external customers by geographic region:
| Successor | Predecessor
| Year Ended December 31, 2018 |  | April 2 through December 31, 2017 | January 1 through April 1, 2017 |  | Year Ended December 31, 2016
U.S. | 47.8 | % |  | 48.9 | % | 55.2 | % |  | 54.7 | %
Japan | 10.1 | % |  | 11.7 | % | 11.4 | % |  | 6.9 | %
Taiwan | 8.1 | % |  | 8.7 | % | 5.7 | % |  | 4.6 | %
Australia | 6.6 | % |  | 5.3 | % | 4.2 | % |  | 4.2 | %
India | 6.2 | % |  | 6.7 | % | 2.7 | % |  | 3.0 | %
China | 5.9 | % |  | 7.5 | % | 5.6 | % |  | 5.4 | %
South Korea | 3.1 | % |  | 1.1 | % | 0.5 | % |  | 1.5 | %
Other | 12.2 | % |  | 10.1 | % | 14.7 | % |  | 19.7 | %
Total | 100.0 | % |  | 100.0 | % | 100.0 | % |  | 100.0 | %
The Company attributes revenue to individual countries based on the location of the physical delivery of the coal.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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