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Leases
 6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Leases of Lessee 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. 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 “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.
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 three and six months ended June 30, 2020 and 2019 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
(Dollars in millions)
Operating lease cost:
Operating lease cost$8.4  $11.8  $17.0  $27.2  
Short-term lease cost11.6  7.4  21.5  15.7  
Variable lease cost1.6  8.5  2.6  14.5  
Sublease income—  (0.4) —  (0.8) 
Total operating lease cost$21.6  $27.3  $41.1  $56.6  
Finance lease cost:
Amortization of right-of-use assets$1.0  $1.9  $4.4  $8.6  
Interest on lease liabilities0.1  0.4  0.3  0.9  
Total finance lease cost$1.1  $2.3  $4.7  $9.5  
Supplemental balance sheet information related to leases at June 30, 2020 and December 31, 2019 was as follows:
June 30, 2020December 31, 2019
(Dollars in millions)
Operating leases:
Operating lease right-of-use assets$50.7  $82.4  
Accounts payable and accrued expenses$24.9  $29.6  
Operating lease liabilities, less current portion42.0  52.8  
Total operating lease liabilities$66.9  $82.4  
Finance leases:
Property, plant, equipment and mine development$44.2  $89.6  
Accumulated depreciation(27.6) (45.9) 
Property, plant, equipment and mine development, net$16.6  $43.7  
Current portion of long-term debt$6.9  $14.3  
Long-term debt, less current portion1.0  0.9  
Total finance lease liabilities$7.9  $15.2  
Weighted average remaining lease term (years)
Operating leases3.6
Finance leases17.3
Weighted average discount rate
Operating leases7.4 %
Finance leases6.2 %
Supplemental cash flow information related to leases during the three and six months ended June 30, 2020 and 2019 was as follows:
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$6.8  $9.3  $19.6  $33.3  
Operating cash flows for finance leases0.1  0.4  0.3  1.2  
Financing cash flows for finance leases2.1  8.2  7.9  18.4  
Right-of-use assets obtained in exchange for lease obligations:
Operating leases0.8  5.8  2.1  6.3  
Finance leases0.8  0.1  0.9  0.1  
The Company's leases have remaining lease terms of 1 year to 21.5 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 LeasesFinance Leases
 (Dollars in millions)
2020$15.9  $0.6  
202123.6  1.2  
202214.0  0.9  
202311.9  0.7  
20244.8  0.6  
2025 and thereafter7.2  8.2  
Total lease payments77.4  12.2  
Less imputed interest(10.5) (4.3) 
Total lease liabilities$66.9  $7.9