Segment Information

6 Months Ended

Jun. 30, 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 and six months endedJune 30,2015 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 June 30, 2015
Revenues	$	342,480		$	224,298		$	77,684	$	—		$	644,462
Adjusted EBITDA	56,654			11,427			7,456		(30,209		)	45,328
Depreciation, depletion and amortization	42,711			42,203			10,834		1,624			97,372
Amortization of acquired sales contracts, net	(761		)	(883		)	—		—			(1,644		)
Capital expenditures	4,425			7,948			1,668		62,440			76,481
Three Months Ended June 30, 2014
Revenues	$	358,265		$	280,961		$	74,550	$	—		$	713,776
Adjusted EBITDA	42,546			27,040			17,463		(22,117		)	64,932
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			11,036			2,358		60,936			81,292
Six Months Ended June 30, 2015
Revenues	$	733,686		$	447,737		$	140,044	$	—		$	1,321,467
Adjusted EBITDA	128,716			51,234			9,147		(61,997		)	127,100
Depreciation, depletion and amortization	87,072			90,930			20,889		3,355			202,246
Amortization of acquired sales contracts, net	(2,046		)	(2,988		)	—		—			(5,034		)
Capital expenditures	21,394			11,333			4,310		62,324			99,361
Six Months Ended June 30, 2014
Revenues	$	716,872		$	560,098		$	170,839	$	1,938		$	1,449,747
Adjusted EBITDA	72,365			55,467			21,595		(56,890		)	92,537
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			3,948		63,549			95,746

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Adjusted EBITDA	$	45,328		$	64,932		$	127,100		$	92,537
Depreciation, depletion and amortization	(97,372		)	(102,464		)	(202,246		)	(206,887		)
Amortization of acquired sales contracts, net	1,644			3,239			5,034			6,935
Asset impairment and mine closure costs	(19,146		)	(1,512		)	(19,146		)	(1,512		)
Interest expense, net	(98,612		)	(95,924		)	(195,491		)	(190,552		)
Nonoperating expense	$	(4,016	)	$	—		(4,016		)	—
Loss before income taxes	$	(172,174	)	$	(131,729	)	$	(288,765	)	$	(299,479	)