Revenue Recognition

3 Months Ended

Mar. 31, 2020

Revenue Recognition

The Company accounts for revenue in accordance with ASC Topic 606, “Revenue from Contracts with Customers.” Refer to Note 1. “Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, for the Company’s policies regarding “Revenues” and “Accounts receivable, net.” On January 1, 2020, the Company adopted Topic 326 using the modified retrospective approach. See Note 2. “Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented” for further discussion of the adoption, including the impact on the Company’s opening balance sheet.

Disaggregation of Revenues

Revenue by product type and market is set forth in the following tables. With respect to its seaborne mining segments, the Company classifies as “Export” certain revenue from domestically-delivered coal under contracts in which the price is derived on a basis similar to export contracts.



	Three Months Ended March 31, 2020
	Seaborne Thermal Mining		Seaborne Metallurgical Mining		Powder River Basin Mining		Other U.S. Thermal Mining		Corporate and Other ⁽¹⁾			Consolidated
	(Dollars in millions)
Thermal coal
Domestic	$	36.5	$	—	$	266.6	$	184.6	$	—		$	487.7
Export	163.7		—		—		—		—			163.7
Total thermal	200.2		—		266.6		184.6		—			651.4
Metallurgical coal
Export	—		192.5		—		—		—			192.5
Total metallurgical	—		192.5		—		—		—			192.5
Other	0.9		0.7		—		7.7		(7.0		)	2.3
Revenues	$	201.1	$	193.2	$	266.6	$	192.3	$	(7.0	)	$	846.2



	Three Months Ended March 31, 2019
	Seaborne Thermal Mining		Seaborne Metallurgical Mining		Powder River Basin Mining		Other U.S. Thermal Mining		Corporate and Other ⁽¹⁾		Consolidated
	(Dollars in millions)
Thermal coal
Domestic	$	38.4	$	—	$	287.3	$	321.7	$	—	$	647.4
Export	211.9		—		—		7.0		—		218.9
Total thermal	250.3		—		287.3		328.7		—		866.3
Metallurgical coal
Export	—		323.7		—		—		—		323.7
Total metallurgical	—		323.7		—		—		—		323.7
Other	0.7		0.8		—		6.1		53.0		60.6
Revenues	$	251.0	$	324.5	$	287.3	$	334.8	$	53.0	$	1,250.6

Revenue by initial contract duration was as follows:



	Three Months Ended March 31, 2020
	Seaborne Thermal Mining		Seaborne Metallurgical Mining		Powder River Basin Mining		Other U.S. Thermal Mining		Corporate and Other ⁽¹⁾			Consolidated
	(Dollars in millions)
One year or longer	$	99.3	$	140.1	$	243.4	$	184.6	$	—		$	667.4
Less than one year	100.9		52.4		23.2		—		—			176.5
Other ⁽²⁾	0.9		0.7		—		7.7		(7.0		)	2.3
Revenues	$	201.1	$	193.2	$	266.6	$	192.3	$	(7.0	)	$	846.2



	Three Months Ended March 31, 2019
	Seaborne Thermal Mining		Seaborne Metallurgical Mining		Powder River Basin Mining		Other U.S. Thermal Mining		Corporate and Other ⁽¹⁾		Consolidated
	(Dollars in millions)
One year or longer	$	171.1	$	232.8	$	280.1	$	313.8	$	—	$	997.8
Less than one year	79.2		90.9		7.2		14.9		—		192.2
Other ⁽²⁾	0.7		0.8		—		6.1		53.0		60.6
Revenues	$	251.0	$	324.5	$	287.3	$	334.8	$	53.0	$	1,250.6


⁽¹⁾	Corporate and Other revenue includes gains and losses related to mark-to-market adjustments from economic hedge activities intended to hedge future coal sales. Refer to Note 7. “Derivatives and Fair Value Measurements” for additional information regarding the economic hedge activities.


⁽²⁾	Other includes revenues from arrangements such as customer contract-related payments, royalties related to coal lease agreements, sales agency commissions, farm income and property and facility rentals, for which contract duration is not meaningful.

Committed Revenue from Contracts with Customers

The Company expects to recognize revenue subsequent to March 31, 2020 of approximately $4.0 billion related to contracts with customers in which volumes and prices per ton were fixed or reasonably estimable at March 31, 2020. Approximately 46% of such amount is expected to be recognized over the next twelve months and the remainder thereafter. Actual revenue related to such contracts may differ materially for various reasons, including price adjustment features for coal quality and cost escalations, volume optionality provisions and potential force majeure events. This estimate of future revenue does not include any revenue related to contracts with variable prices per ton that cannot be reasonably estimated, such as the majority of seaborne metallurgical and seaborne thermal coal contracts where pricing is negotiated or settled quarterly or annually.

Accounts Receivable

“Accounts receivable, net” at March 31, 2020 and December 31, 2019 consisted of the following:



	March 31, 2020		December 31, 2019
	(Dollars in millions)
Trade receivables, net	$	230.0	$	283.1
Miscellaneous receivables, net	35.2		46.4
Accounts receivable, net	$	265.2	$	329.5

Trade receivables, net included no allowance for credit losses as of both March 31, 2020 and December 31, 2019. Miscellaneous receivables, net included no allowance for credit losses as of both March 31, 2020 and December 31, 2019. No charges for credit losses were recognized during the three months ended March 31, 2020 or 2019.