XML 71 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information
 
The Company's reportable business segments are based on the major coal producing basins in which the Company operates and may include a number of mine complexes. The Company manages its coal sales by coal basin, not by individual mining complex. Geology, coal transportation routes to customers, regulatory environments and coal quality or type are characteristic to a basin, and, accordingly, market and contract pricing have developed by coal basin. Mining operations are evaluated based on their per-ton operating costs (defined as including all mining costs but excluding pass-through transportation expenses), as well as on other non-financial measures, such as safety and environmental performance. The Company’s reportable segments are the Powder River Basin (PRB) segment, with operations in Wyoming; and the Appalachia (APP) segment, with operations primarily in West Virginia.  The “Other” category combines other operating segments and includes the Company’s coal mining operations in Colorado and Illinois and its ADDCAR subsidiary, which the Company sold in the first quarter of 2014.
 
Operating segment results for the three and six months ended June 30, 2014 and 2013 are presented below. Results for the reportable segments include all direct costs of mining, including all depreciation, depletion and amortization related to the mining operations, even if the assets are not recorded at the operating segment level. These reportable segments results do not reflect impairment charges, since those are not reflected in the operating income reviewed by management. Corporate, Other and Eliminations includes these charges, as well as the change in fair value of coal derivatives and coal trading activities, net; corporate overhead; land management; other support functions; and the elimination of intercompany transactions. The operating segment results and capital expenditures reflect only those from continuing operations, and exclude the results of Canyon Fuel, since they are classified as discontinued operations in the condensed consolidated statements of operations for the three and six months ended June 30, 2013. Because the condensed consolidated statement of cash flows includes cash flows from discontinued operations, capital expenditures from discontinued operations are included in "Corporate, Other and Eliminations" below.
 
The asset amounts below represent an allocation of assets consistent with the basis used for the Company’s incentive compensation plans. The amounts in Corporate, Other and Eliminations represent primarily corporate assets (cash, receivables, investments, plant, property and equipment) as well as unassigned coal reserves, above-market acquired sales contracts and other unassigned assets.

 
 
PRB
 
APP
 
Other
Operating
Segments
 
Corporate,
Other and
Eliminations
 
Consolidated
 
 
(in thousands)
Three Months Ended June 30, 2014
 
 
 
 

 
 

 
 

 
 

Revenues
 
$
358,265

 
$
280,961

 
$
74,550

 
$
—

 
$
713,776

Income (loss) from operations
 
5,103

 
(18,274
)
 
14,955

 
(37,589
)
 
(35,805
)
Depreciation, depletion and amortization
 
41,036

 
51,232

 
9,583

 
613

 
102,464

Amortization of acquired sales contracts, net
 
(785
)
 
(2,477
)
 
23

 
—

 
(3,239
)
Capital expenditures
 
6,962

 
11,037

 
2,358

 
60,935

 
81,292

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2013
 
 
 
 

 
 

 
 

 
 

Revenues
 
$
353,425

 
$
337,678

 
$
75,229

 
$
—

 
$
766,332

Income (loss) from operations
 
16,755

 
(5,220
)
 
12,924

 
(60,738
)
 
(36,279
)
Depreciation, depletion and amortization
 
42,147

 
56,006

 
11,057

 
1,875

 
111,085

Amortization of acquired sales contracts, net
 
(941
)
 
(2,812
)
 
1,544

 
—

 
(2,209
)
Capital expenditures
 
1,819

 
43,470

 
4,771

 
64,482

 
114,542

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
716,872

 
$
560,098

 
172,777

 
$
—

 
$
1,449,747

Income (loss) from operations
 
204

 
(44,002
)
 
16,728

 
(81,857
)
 
(108,927
)
Depreciation, depletion and amortization
 
80,281

 
106,220

 
19,102

 
1,284

 
206,887

Amortization of acquired sales contracts, net
 
(1,574
)
 
(5,451
)
 
90

 
—

 
(6,935
)
Capital expenditures
 
9,056

 
19,193

 
4,159

 
63,338

 
95,746

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
715,371

 
$
620,296

 
$
168,035

 
$
—

 
$
1,503,702

Income (loss) from operations
 
32,272

 
(32,336
)
 
20,308

 
(107,954
)
 
(87,710
)
Depreciation, depletion and amortization
 
84,374

 
111,337

 
22,361

 
3,206

 
221,278

Amortization of acquired sales contracts, net
 
(2,140
)
 
(5,284
)
 
2,405

 
—

 
(5,019
)
Capital expenditures
 
3,976

 
92,767

 
5,266

 
67,055

 
169,064


A reconciliation of segment income (loss) from operations to consolidated loss before income taxes follows:

 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
 
 
(In thousands)
 
 
 
 
 
Loss from operations
 
$
(35,805
)
 
$
(36,279
)
 
$
(108,927
)
 
$
(87,710
)
 
Interest expense
 
(97,960
)
 
(94,756
)
 
(194,431
)
 
(189,830
)
 
Interest and investment income
 
2,036

 
1,216

 
3,879

 
4,052

 
Loss from continuing operations before income taxes
 
$
(131,729
)
 
$
(129,819
)
 
$
(299,479
)
 
$
(273,488
)