Segment Information

12 Months Ended

Dec. 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 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 in West Virginia, Kentucky, Maryland and Virginia.  “All Other” includes the Company’s coal mining operations in Colorado and Illinois and the ADDCAR subsidiary (which was sold during the first quarter of 2014).

Operating segment results for the years ended December 31, 2015, 2014 and 2013 are presented below. The Company measures its segments based on "adjusted earnings before interest, taxes, depreciation, depletion and amortization (Adjusted EBITDA)." 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. Adjusted EBITDA does not reflect mine closure or impairment costs, since those are not reflected in the operating income reviewed by management. See Note 5, "Impairment Charges and Mine Closure Costs" for discussion of these costs. The Corporate, Other and Eliminations grouping includes these charges, as well as the change in fair value of coal derivatives and coal trading activities, net; corporate overhead; land management activities; other support functions; and the elimination of intercompany transactions.

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			All Other		Corporate, Other and Eliminations			Consolidated
Year Ended	December 31, 2015
Revenues		$	1,448,440		$	834,606		$	290,214	$	—		$2,573,260
Adjusted EBITDA		258,300			82,837			17,044		(108,064		)	250,117
Depreciation, depletion and amortization		176,257			156,273			40,768		6,047			379,345
Amortization of acquired sales contracts, net		(4,158		)	(4,653		)	—		—			(8,811		)
Total assets		1,648,916			843,583			310,949		2,303,290			5,106,738
Capital expenditures		22,535			20,599			11,135		64,755			119,024
Year Ended	December 31, 2014
Revenues		$	1,490,377		$	1,108,358		$	338,384	$	—		$	2,937,119
Adjusted EBITDA		198,074			110,693			56,612		(85,236		)	280,143
Depreciation, depletion and amortization		168,522			205,732			40,125		4,369			418,748
Amortization of acquired sales contracts, net		(3,961		)	(9,433		)	207		—			(13,187		)
Total assets		1,772,230			3,379,834			339,809		2,937,850			8,429,723
Capital expenditures		44,305			23,638			12,993		66,350			147,286
Year Ended	December 31, 2013
Revenues		$	1,482,812		$	1,145,801		$	385,744	$	—		$	3,014,357
Adjusted EBITDA		206,910			88,883			94,948		(138,595		)	252,146
Depreciation, depletion and amortization		171,324			202,952			45,741		6,425			426,442
Amortization of acquired sales contracts, net		(3,656		)	(10,364		)	4,563		—			(9,457		)
Total assets		1,841,835			3,971,764			402,922		2,773,672			8,990,193
Capital expenditures		9,784			167,759			23,122		96,319			296,984

A reconciliation of segment losses to consolidated loss from continuing operations before income taxes follows:

	Year Ended December 31,
	2015			2014			2013
Adjusted EBITDA	$	250,117		$	280,143		$	252,146
Depreciation, depletion and amortization	(379,345		)	(418,748		)	(426,442		)
Amortization of acquired sales contracts, net	8,811			13,187			9,457
Asset impairment costs	(2,628,303		)	(24,113		)	(220,879		)
Goodwill impairment	—			—			(265,423		)
Losses from disposed operations resulting from Patriot Coal bankruptcy	(116,343		)	—			—
Settlement of UMWA legal claims	—			—			(12,000		)
Interest expense, net	(393,549		)	(383,188		)	(374,664		)
Nonoperating expense	(27,910		)	—			(42,921		)
Loss from continuing operations before income taxes	$	(3,286,522	)	$	(532,719	)	$	(1,080,726	)