Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases of Lesses Disclosure [Text Block]

Leases

The Company has operating and finance leases for mining and non-mining equipment, office space and certain other facilities under various non-cancellable agreements. Historically, the majority of the Company’s leases have been accounted for as operating leases.

The Company and certain of its subsidiaries have guaranteed other subsidiaries’ performance under various lease obligations. Certain lease agreements are subject to the restrictive covenants of the Company’s credit facilities and include cross-acceleration provisions, under which the lessor could require remedies including, but not limited to, immediate recovery of the present value of any remaining lease payments. The Company typically agrees to indemnify lessors for the value of the property or equipment leased, should the property be damaged or lost during the course of the Company’s operations. The Company expects that losses with respect to leased property, if any, may be covered by insurance (subject to deductibles). Aside from indemnification of the lessor for the value of the property leased, the Company’s maximum potential obligations under its leases are equal to the respective future minimum lease payments, and the Company assumes that no amounts could be recovered from third parties. In this regard, the Company has recorded provisions amounting to $50.7 million related to the loss of leased equipment at its North Goonyella Mine as described in Note 22. “Other Events.”

One of the Company’s operating lease agreements for underground mining equipment in Australia entered into in 2013 requires contingent rent to be paid only if and when certain coal is mined at a specified margin as defined in the agreements. There was no contingent expense related to that arrangement for the periods listed below.

The components of lease expense during the year ended December 31, 2019 were as follows:

	Year Ended December 31, 2019
	(Dollars in millions)
Operating lease cost:
Operating leases	$	43.3
Short-term leases	49.7
Variable leases	19.1
Sublease income	(2.6		)
Total operating lease cost	$	109.5
Finance lease cost:
Amortization of right-of-use assets	$	15.3
Interest on lease liabilities	1.5
Total finance lease cost	$	16.8

Supplemental balance sheet information related to leases at December 31, 2019 was as follows:

	December 31, 2019
	(Dollars in millions)
Operating leases:
Operating lease right-of-use assets	$	82.4
Accounts payable and accrued expenses	$	29.6
Operating lease liabilities, less current portion	52.8
Total operating lease liabilities	$	82.4
Finance leases:
Property, plant, equipment and mine development	$	89.6
Accumulated depreciation	(45.9		)
Property, plant, equipment and mine development, net	$	43.7
Current portion of long-term debt	$	14.3
Long-term debt, less current portion	0.9
Total finance lease liabilities	$	15.2
Weighted average remaining lease term (years)
Operating leases	3.8
Finance leases	0.6
Weighted average discount rate
Operating leases	7.3		%
Finance leases	6.0		%

Supplemental cash flow information related to leases during the year ended December 31, 2019 was as follows:

	Year Ended December 31, 2019
	(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	51.0
Operating cash flows for finance leases	1.5
Financing cash flows for finance leases	29.6
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	16.6
Finance leases	1.6

The Company's leases have remaining lease terms of 1 year to 11.3 years, some of which include options to extend the terms deemed reasonably certain of exercise. Maturities of lease liabilities were as follows:

Period Ending December 31,	Operating Leases			Finance Leases
	(Dollars in millions)
2020	$	33.7		$	14.5
2021	23.1			0.6
2022	14.1			0.2
2023	12.2			0.1
2024	4.8			—
2025 and thereafter	7.2			—
Total lease payments	95.1			15.4
Less imputed interest	(12.7		)	(0.2		)
Total lease liabilities	$	82.4		$	15.2

Disclosures Related to Periods Prior to Adoption of ASU 2016-02 “Leases (Topic 842)”

Rental expense under operating leases, including expense related to short-term operating leases, was $158.0 million, $144.2 million and $57.0 million during the year ended December 31, 2018, the period April 2 through December 31, 2017 and the period January 1 through April 1, 2017, respectively.

Future minimum lease and royalty payments as of December 31, 2018 were as follows:

	Capital Leases		Operating Leases		Coal Lease and Royalty Obligations
Year Ending December 31,
	(Dollars in millions)
2019	$	28.2	$	47.6	$	5.4
2020	8.0		27.6		5.5
2021	0.4		15.9		5.6
2022	0.4		11.8		5.4
2023	0.5		12.1		5.5
2024 and thereafter	8.8		12.1		36.2
Total minimum lease payments	46.3		$	127.1	$	63.6
Less interest	6.3
Present value of minimum capital lease payments	$	40.0