Segment Information

The Company reports its results of operations through the following reportable segments: Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, Midwestern U.S. Mining, Western U.S. Mining 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 financial measure defined as income 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:



	Three Months Ended March 31,
	2019			2018
	(Dollars in millions)
Revenues:
Seaborne Thermal Mining	$	251.0		$	201.4
Seaborne Metallurgical Mining	324.5			466.2
Powder River Basin Mining	287.3			389.3
Midwestern U.S. Mining	179.1			201.7
Western U.S. Mining	155.7			143.7
Corporate and Other	53.0			60.4
Total	$	1,250.6		$	1,462.7

Adjusted EBITDA:
Seaborne Thermal Mining	$	94.7		$	61.6
Seaborne Metallurgical Mining	85.8			166.4
Powder River Basin Mining	36.4			74.5
Midwestern U.S. Mining	33.3			31.2
Western U.S. Mining	42.6			32.0
Corporate and Other ⁽¹⁾	(38.9		)	(1.8		)
Total	$	253.9		$	363.9


⁽¹⁾	As described in Note 16. “Other Events,” included in the three months ended March 31, 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.

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



	Three Months Ended March 31,
	2019			2018
	(Dollars in millions)
Income from continuing operations, net of income taxes	$	133.3		$	208.3
Depreciation, depletion and amortization	172.5			169.6
Asset retirement obligation expenses	13.8			12.3
Provision for North Goonyella equipment loss	24.7			—
North Goonyella insurance recoveries - equipment ⁽¹⁾	(91.1		)	—
Changes in deferred tax asset valuation allowance and reserves and amortization of basis difference related to equity affiliates	—			(7.6		)
Interest expense	35.8			36.3
Interest income	(8.3		)	(7.2		)
Reorganization items, net	—			(12.8		)
Unrealized gains on economic hedges	(39.8		)	(38.6		)
Unrealized (gains) losses on non-coal trading derivative contracts	(0.2		)	1.8
Fresh start take-or-pay contract-based intangible recognition	(5.6		)	(8.3		)
Income tax provision	18.8			10.1
Total Adjusted EBITDA	$	253.9		$	363.9

⁽¹⁾

As described in Note 16. “Other Events,” the Company recorded a $125.0 million insurance recovery during the three months ended March 31, 2019 related to losses incurred at its North Goonyella Mine. Of this amount, Adjusted EBITDA excludes an allocated amount applicable to total equipment losses recognized at the time of the insurance recovery settlement, which consisted of $24.7 million and $66.4 million recognized during the three months ended March 31, 2019 and the year ended December 31, 2018, respectively. The remaining $33.9 million, applicable to incremental costs and business interruption losses, is included in Adjusted EBITDA for the three months ended March 31, 2019.