Revenue Recognition

9 Months Ended

Sep. 30, 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 September 30, 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	$	37.1	$	—	$	264.3	$	172.8	$	—	$	474.2
Export	125.7		—		—		—		—		125.7
Total thermal	162.8		—		264.3		172.8		—		599.9
Metallurgical coal

Export	—		78.4		—		—		—		78.4
Total metallurgical	—		78.4		—		—		—		78.4
Other	0.2		0.4		0.5		7.0		(15.4)		(7.3)
Revenues	$	163.0	$	78.8	$	264.8	$	179.8	$	(15.4)	$	671.0


	Three Months Ended September 30, 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	$	34.8	$	—	$	333.6	$	319.4	$	—	$	687.8
Export	214.6		—		—		—		—		214.6
Total thermal	249.4		—		333.6		319.4		—		902.4
Metallurgical coal

Export	—		215.4		—		—		—		215.4
Total metallurgical	—		215.4		—		—		—		215.4
Other	0.1		0.9		—		7.0		(19.4)		(11.4)
Revenues	$	249.5	$	216.3	$	333.6	$	326.4	$	(19.4)	$	1,106.4


	Nine Months Ended September 30, 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	$	111.9	$	—	$	736.7	$	501.5	$	—	$	1,350.1
Export	412.9		—		—		—		—		412.9
Total thermal	524.8		—		736.7		501.5		—		1,763.0
Metallurgical coal

Export	—		362.3		—		—		—		362.3
Total metallurgical	—		362.3		—		—		—		362.3
Other	1.3		1.3		0.5		22.6		(7.1)		18.6
Revenues	$	526.1	$	363.6	$	737.2	$	524.1	$	(7.1)	$	2,143.9


	Nine Months Ended September 30, 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	$	110.9	$	—	$	903.4	$	939.3	$	—	$	1,953.6
Export	608.7		—		—		11.3		—		620.0
Total thermal	719.6		—		903.4		950.6		—		2,573.6
Metallurgical coal

Export	—		829.4		—		—		—		829.4
Total metallurgical	—		829.4		—		—		—		829.4
Other	1.1		2.3		0.1		20.2		79.3		103.0
Revenues	$	720.7	$	831.7	$	903.5	$	970.8	$	79.3	$	3,506.0

Revenue by initial contract duration was as follows:


	Three Months Ended September 30, 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	$	93.6	$	65.2	$	257.4	$	171.3	$	—	$	587.5
Less than one year	69.2		13.2		6.9		1.5		—		90.8
Other (2)	0.2		0.4		0.5		7.0		(15.4)		(7.3)
Revenues	$	163.0	$	78.8	$	264.8	$	179.8	$	(15.4)	$	671.0


	Three Months Ended September 30, 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	$	158.5	$	193.3	$	287.8	$	315.2	$	—	$	954.8
Less than one year	90.9		22.1		45.8		4.2		—		163.0
Other (2)	0.1		0.9		—		7.0		(19.4)		(11.4)
Revenues	$	249.5	$	216.3	$	333.6	$	326.4	$	(19.4)	$	1,106.4


	Nine Months Ended September 30, 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	$	272.4	$	269.4	$	696.5	$	498.0	$	—	$	1,736.3
Less than one year	252.4		92.9		40.2		3.5		—		389.0
Other (2)	1.3		1.3		0.5		22.6		(7.1)		18.6
Revenues	$	526.1	$	363.6	$	737.2	$	524.1	$	(7.1)	$	2,143.9


	Nine Months Ended September 30, 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	$	480.2	$	668.8	$	837.6	$	919.8	$	—	$	2,906.4
Less than one year	239.4		160.6		65.8		30.8		—		496.6
Other (2)	1.1		2.3		0.1		20.2		79.3		103.0
Revenues	$	720.7	$	831.7	$	903.5	$	970.8	$	79.3	$	3,506.0

(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 associated with volume shortfalls, 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 September 30, 2020 of approximately $3.8 billion related to contracts with customers in which volumes and prices per ton were fixed or reasonably estimable at September 30, 2020. Approximately 43% 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 September 30, 2020 and December 31, 2019 consisted of the following:


	September 30, 2020		December 31, 2019
	(Dollars in millions)
Trade receivables, net	$	143.4	$	283.1
Miscellaneous receivables, net	49.5		46.4
Accounts receivable, net	$	192.9	$	329.5

Trade receivables, net included no allowance for credit losses as of both September 30, 2020 and December 31, 2019. Miscellaneous receivables, net included no allowance for credit losses as of both September 30, 2020 and December 31, 2019. No charges for credit losses were recognized during the three months ended September 30, 2020 and 2019 nor the nine months ended September 30, 2020. A reduction of previously recorded credit losses of $0.1 million for the nine months ended September 30, 2019 was included in “Operating costs and expenses” in the unaudited condensed consolidated statements of operations.