Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s reportable business segments are based on two distinct lines of business, metallurgical and thermal, and may include a number of mine complexes. The Company manages its coal sales by market, not by individual mining complex. Geology, coal transportation routes to customers, and regulatory environments also have a significant impact on the Company’s marketing and operations management. Mining operations are evaluated based on Adjusted EBITDAR, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirements obligations, and pass-through transportation expenses), and on other non-financial measures, such as safety and environmental performance. Adjusted EBITDAR is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDAR are significant in understanding and assessing our financial condition. Therefore, Adjusted EBITDAR should not be considered in isolation, nor as an alternative to net income, income from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under generally accepted accounting principles. The Company used Adjusted EBITDAR to measure the operating performance of its segments and allocate resources to the segments. Furthermore, analogous measures are used by industry analysts to evaluate the Company’s operating performance. Investors should be aware that the Company’s presentation of Adjusted EBITDAR may not be comparable to similarly titled measures used by other companies. Upon emergence from bankruptcy, the Company updated its reportable segments to reflect the manner in which its Chief Operating Decision Maker (CODM) views the reorganized Company’s business for purposes of reviewing performance and allocating resources. The Company now reports is results of operations primarily through the following reportable segments: Powder River Basin (PRB) segment containing the Company’s primary thermal operations in Wyoming; the Metallurgical (MET) segment, containing the Company’s metallurgical operations in West Virginia, Kentucky, and Virginia, and the Other Thermal segment containing the Company’s supplementary thermal operations in Colorado, Illinois, and the Coal Mac thermal operation in West Virginia. Periods presented in this note have been recast for comparability.

Operating segment results for the Successor period October 2 through December 31, 2016 and the Predecessor periods January 1 through October 1, 2016 and the years ended December 31, 2015 and 2014 are presented below. The Company measures its segments based on “adjusted earnings before interest, taxes, depreciation, depletion, amortization, accretion on asset retirements obligations, and reorganization items, net (Adjusted EBITDAR).” Adjusted EBITDAR 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 sales contracts and other unassigned assets.

(In thousands)		PRB		MET		Other Thermal		Corporate, Other and Eliminations			Consolidated
Successor Period	October 2 through December 31, 2016
Revenues		$	275,703	$	200,377	$	97,382	$	2,226		$575,688
Adjusted EBITDAR		55,765		30,819		31,159		(23,246		)	94,497
Depreciation, depletion and amortization		9,949		18,287		3,911		457			32,604
Accretion on asset retirement obligation		5,049		528		540		1,517			7,634
Total assets		446,775		576,793		129,602		983,427			2,136,597
Capital expenditures		934		13,329		684		267			15,214
Predecessor Period	January 1 through October 1, 2016
Revenues		$	726,747	$	437,069	$	213,052	$	21,841		$1,398,709
Adjusted EBITDAR		113,185		11,851		31,448		(69,181		)	87,303
Depreciation, depletion and amortization		100,151		55,311		32,310		3,809			191,581
Accretion on asset retirement obligation		16,940		1,765		1,988		3,628			24,321
Total assets		456,711		619,154		131,173		916,791			2,123,829
Capital expenditures		612		17,296		3,895		60,631			82,434
Predecessor Year Ended	December 31, 2015
Revenues		$	1,448,440	$	637,941	$	428,809	$	58,070		$	2,573,260
Adjusted EBITDAR		281,039		70,450		42,734		(110,426		)	283,797
Depreciation, depletion and amortization		176,257		133,463		47,786		21,839			379,345
Accretion on asset retirement obligation		22,156		2,267		2,658		6,599			33,680
Total assets		1,648,916		772,439		366,610		2,253,916			5,041,881
Capital expenditures		21,228		24,787		11,277		61,732			119,024
Predecessor Year Ended	December 31, 2014
Revenues		$	1,490,377	$	743,973	$	535,783	$	166,986		$	2,937,119
Adjusted EBITDAR		218,731		112,719		78,238		(96,636		)	313,052
Depreciation, depletion and amortization		168,522		163,644		52,991		33,591			418,748
Accretion on asset retirement obligation		20,748		2,089		2,412		7,660			32,909
Total assets		1,762,326		2,339,739		406,296		3,838,001			8,346,362
Capital expenditures		21,399		46,771		14,843		64,273			147,286

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

	Successor			Predecessor
(In thousands)	October 2 through December 31, 2016			January 1 through October 1, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014
Adjusted EBITDAR	$	94,497		$	87,303		$	283,797		$	313,052
Depreciation, depletion and amortization	(32,604		)	(191,581		)	(379,345		)	(418,748		)
Accretion on asset retirement obligations	(7,634		)	(24,321		)	(33,680		)	(32,909		)
Amortization of sales contracts, net	(796		)	728			8,811			13,187
Asset impairment and mine closure costs	—			(129,267		)	(2,628,303		)	(24,113		)
Losses from disposed operations resulting from Patriot Coal bankruptcy	—			—			(116,343		)	—
Interest expense, net	(10,754		)	(133,235		)	(393,549		)	(383,188		)
Net loss resulting from early retirement of debt and debt restructuring	—			(2,213		)	(27,910		)	—
Reorganization items, net	(759		)	1,630,041			—			—
Fresh start coal inventory fair value adjustment	(7,345		)	—			—			—
Income (loss) before income taxes	$	34,605		$	1,237,455		$	(3,286,522	)	$	(532,719	)