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Leases | 9 Months Ended
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Sep. 30, 2019
Leases [Abstract] |
Leases of Lessee Disclosure [Text Block] | Leases The Company has operating and finance leases for mining and non-mining equipment, office space and certain other facilities under various non-cancellable agreements. Historically, the majority of the Company’s leases have been accounted for as operating leases. The Company determines if an arrangement is a lease at inception. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. For the purpose of calculating such present values, lease payments include components that vary based upon an index or rate, using the prevailing index or rate at the commencement date, and exclude components that vary based upon other factors. As most of its leases do not contain a readily determinable implicit rate, the Company uses its incremental borrowing rate at commencement to determine the present value of lease payments. The Company's leases may include options to extend or terminate the lease, and such options are reflected in the term when their exercise is reasonably certain. Lease expense is recognized on a straight-line basis over the lease term. For certain equipment leases, the Company applies a portfolio approach to effectively account for the operating lease ROU assets and liabilities. The Company and certain of its subsidiaries have guaranteed other subsidiaries’ performance under various lease obligations. Certain lease agreements are subject to the restrictive covenants of the Company’s credit facilities and include cross-acceleration provisions, under which the lessor could require remedies including, but not limited to, immediate recovery of the present value of any remaining lease payments. The Company typically agrees to indemnify lessors for the value of the property or equipment leased, should the property be damaged or lost during the course of the Company’s operations. The Company expects that losses with respect to leased property, if any, may be covered by insurance (subject to deductibles). Aside from indemnification of the lessor for the value of the property leased, the Company’s maximum potential obligations under its leases are equal to the respective future minimum lease payments, and the Company assumes that no amounts could be recovered from third parties. In this regard, the Company has recorded provisions amounting to $50.7 million related to the loss of leased equipment at its North Goonyella Mine as described in Note 16. “Other Events.” One of the Company’s operating lease agreements for underground mining equipment in Australia entered into in 2013 requires contingent rent to be paid only if and when certain coal is mined at a specified margin as defined in the agreements. There was no contingent expense related to that arrangement for the periods listed below. The components of lease expense during the three and nine months ended September 30, 2019 were as follows:
| Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019
| (Dollars in millions)
Operating lease cost: |  |  |
Operating lease cost | $ | 9.9 |  |  | $ | 33.9 |
Short-term lease cost | 15.8 |  |  | 34.7 |
Variable lease cost | 2.0 |  |  | 16.6 |
Sublease income | (1.0 | ) |  | (1.9 | )
Total operating lease cost | $ | 26.7 |  |  | $ | 83.3 |
Finance lease cost: |  |  |
Amortization of right-of-use assets | $ | 3.4 |  |  | $ | 12.0 |
Interest on lease liabilities | 0.3 |  |  | 1.2 |
Total finance lease cost | $ | 3.7 |  |  | $ | 13.2 |
Rental expense under operating leases, including expense related to short-term operating leases, was $36.3 million and $122.6 million during the three and nine months ended September 30, 2018, respectively. Supplemental balance sheet information related to leases at September 30, 2019 was as follows:
| September 30, 2019
| (Dollars in millions)
Operating leases: |
Operating lease right-of-use assets | $ | 85.6 |
Accounts payable and accrued expenses | $ | 27.6 |
Operating lease liabilities, less current portion | 55.1 |
Total operating lease liabilities | $ | 82.7 |
Finance leases: |
Property, plant, equipment and mine development | $ | 95.4 |
Accumulated depreciation | (49.3 | )
Property, plant, equipment and mine development, net | $ | 46.1 |
Current portion of long-term debt | $ | 19.4 |
Long-term debt, less current portion | 0.2 |
Total finance lease liabilities | $ | 19.6 |
Weighted average remaining lease term (years) |
Operating leases | 4.0 |
Finance leases | 0.6 |
Weighted average discount rate |
Operating leases | 7.3 | %
Finance leases | 5.9 | %
Supplemental cash flow information related to leases during the three and nine months ended September 30, 2019 was as follows:
| Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019
| (Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows for operating leases | $ | 8.4 |  |  | $ | 41.8 |
Operating cash flows for finance leases | 0.3 |  |  | 1.2 |
Financing cash flows for finance leases | 5.6 |  |  | 24.0 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases | 3.4 |  |  | 9.7 |
Finance leases | 0.3 |  |  | 0.4 |
The Company's leases have remaining lease terms of 1 year to 11.6 years, some of which include options to extend the terms deemed reasonably certain of exercise. Maturities of lease liabilities were as follows:
Period Ending December 31, |  | Operating Leases |  | Finance Leases
|  | (Dollars in millions)
2019 |  | $ | 8.8 |  |  | $ | 5.9 |
2020 |  | 30.9 |  |  | 13.9 |
2021 |  | 19.7 |  |  | 0.1 |
2022 |  | 13.0 |  |  | 0.1 |
2023 |  | 12.1 |  |  | 0.1 |
2024 and thereafter |  | 12.1 |  |  | — |
Total lease payments |  | 96.6 |  |  | 20.1 |
Less imputed interest |  | (13.9 | ) |  | (0.5 | )
Total lease liabilities |  | $ | 82.7 |  |  | $ | 19.6 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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