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Financial Instruments and Other Guarantees | 6 Months Ended
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Jun. 30, 2020
Financial Instruments And Guarantees [Abstract] |
Financial Instruments and Other Guarantees | Financial Instruments and Other Guarantees In the normal course of business, the Company is a party to various guarantees and financial instruments that carry off-balance-she et risk and are not reflected in the accompanying condensed consolidated balance sheets. At June 30, 2020, such instruments included $1,589.4 million of surety bonds and $283.6 million of letters of credit. These financial instruments provide support for the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees. The Company periodically evaluates the instruments for on-balance-sheet treatment based on the amount of exposure under the instrument and the likelihood of required performance. The Company does not expect any material losses to result from these guarantees or off-balance-sheet instruments in excess of liabilities provided for in the accompanying condensed consolidated balance sheets. The Company is required to provide various forms of financial assurance in support of its mining reclamation obligations in the jurisdictions in which it operates. Such requirements are typically established by statute or under mining permits. At June 30, 2020, the Company’s asset retirement obligations of $757.5 million were supported by surety bonds of $1,398.9 million, as well as letters of credit issued under the Company’s receivables securitization program and Revolver. Letters of credit issued at June 30, 2020 amounted to $185.4 million, some of which were directly in support of asset retirement obligations and some of which were in support of other obligations. Accounts Receivable Securitization The Company entered into the Sixth Amended and Restate d Receivables Purchase Agreement, as amended, dated as of April 3, 2017 (the Receivables Purchase Agreement) to extend the Company’s receivables securitization facility previously in place and expand that facility to include certain receivables from the Company’s Australian operations. The receivables securitization program (Securitization Program) is subject to customary events of default set forth in the Receivables Purchase Agreement. The Securitization Program expires April 1, 2022 and provides for up to $250.0 million in funding accounted for as a secured borrowing, limited to the availability of eligible receivables, and may be secured by a combination of collateral and the trade receivables underlying the program, from time to time. Funding capacity under the Securitization Program may also be utilized for letters of credit in support of other obligations. During 2020, the Receivables Purchase Agreement was amended to reduce certain dilutive constraints on eligible receivables and modify the Company’s reporting requirements under the Securitization Program. Under the terms of the Securitization Program, the Company contributes the trade receivables of its participating subsidiaries on a revolving basis to P&L Receivables, its wholly-owned, bankruptcy-remote subsidiary, which then sells the receivables to unaffiliated banks. P&L Receivables retains the ability to repurchase the receivables in certain circumstances. The assets and liabilities of P&L Receivables are consolidated with Peabody, and the Securitization Program is treated as a secured borrowing for accounting purposes, but the assets of P&L Receivables will be used first to satisfy the creditors of P&L Receivables, not Peabody’s creditors. The borrowings under the Securitization Program remain outstanding throughout the term of the agreement, subject to the Company maintaining sufficient eligible receivables, by continuing to contribute trade receivables to P&L Receivables, unless an event of default occurs. At June 30, 2020, the Com pany had no outstanding borrowings and $84.2 million of letters of credit issued under the Securitization Program. The letters of credit were primarily in support of portions of the Company’s obligations for reclamation, workers’ compensation and postretirement benefits. Availability under the Securitization Program, which is adjusted for certain ineligible receivables, was $10.5 million at June 30, 2020. The Company had no collateral requirement under the Securitization Program at either June 30, 2020 or December 31, 2019. The Company incurred fees associated with the Securitization Program of $0.8 million and $1.0 million during the three months ended June 30, 2020 and 2019, respectively, and $1.5 million and $2.6 million during the six months ended June 30, 2020 and 2019, respectively, which have been recorded as interest expense in the accompanyin g unaudited condensed consolidated statements of operations. Cash Collateral Arrangements and Restricted Cash From time to time, the Company is required to remit cash to certain regulatory authorities and other third parties as collateral for financial assurances associated with a variety of long-term obligations and commitments surrounding employee related matters and the mining, reclamation and shipping of its production. The Company had no such requirements as of either June 30, 2020 or December 31, 2019. Other Substantially all of the Company’s U.S. subsidiaries provide financial guarantees under long-term debt agreements entered into by the Company. The maximum amounts payable under the Company’s debt agreements are equal to the respective principal and interest payments.

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