Segment Information

3 Months Ended

Mar. 31, 2015

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 adjusted EBITDA, 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.

Operating segment results for the three months endedMarch 31,2015 and 2014 are presented below. The Company uses Adjusted EBITDA to assess the operating segments’ performance and to allocate resources. The Company’s management believes that Adjusted EBITDA presents a useful measure of our ability to service existing debt and incur additional debt based on ongoing operations.  Corporate, Other and Eliminations includes 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 trans-actions. 

	PRB			APP			Other Operating Segments		Corporate, Other and Eliminations			Consolidated
	(in thousands)
Three Months Ended March 31, 2015
Revenues	$	391,206		$	223,439		$	62,360	$	—		$	677,005
Adjusted EBITDA	72,062			39,807			1,691		(31,788		)	81,772
Depreciation, depletion and amortization	44,361			48,727			10,055		1,731			104,874
Amortization of acquired sales contracts, net	(1,285		)	(2,105		)	—		—			(3,390		)
Capital expenditures	16,969			3,385			2,642		(116		)	22,880
Three Months Ended March 31, 2014
Revenues	$	358,607		$	279,137		$	98,227	$	—		$	735,971
Adjusted EBITDA	29,819			28,427			4,132		(34,773		)	27,605
Depreciation, depletion and amortization	39,245			54,988			9,519		671			104,423
Amortization of acquired sales contracts, net	(789		)	(2,974		)	67		—			(3,696		)
Capital expenditures	2,094			8,156			1,801		2,403			14,454

A reconciliation of adjusted EBITDA to consolidated loss before income taxes follows:

	Three Months Ended March 31,
	2015			2014
	(In thousands)
Adjusted EBITDA	$	81,772		$	27,605
Depreciation, depletion and amortization	(104,874		)	(104,423		)
Amortization of acquired sales contracts, net	3,390			3,696
Interest expense, net	(96,879		)	(94,628		)
Loss before income taxes	$	(116,591	)	$	(167,750	)