Equity Method Investments

9 Months Ended

Sep. 30, 2020

Equity Method Investment, Summarized Financial Information [Abstract]

Equity Method Investments

Equity Method Investments

The Company had total equity method investments of $54.7 million and $56.9 million reflected in “Investments and other assets” in the condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019, respectively, related to Middlemount Coal Pty Ltd (Middlemount). Included in “Loss from equity affiliates” in the unaudited condensed consolidated statements of operations were losses related to Middlemount of $10.6 million and $18.8 million during the three months ended September 30, 2020 and 2019, respectively, and $25.7 million and $5.3 million during the nine months ended September 30, 2020 and 2019, respectively.

The Company received cash payments from Middlemount of $14.7 million during the nine months ended September 30, 2019, related to financing receivables. No payments were received from Middlemount during the nine months ended September 30, 2020.

One of the Company’s Australian subsidiaries and the other shareholder of Middlemount are parties to an agreement, as amended from time to time, to provide a revolving loan (Revolving Loans) to Middlemount. The Company’s participation in the Revolving Loans will not, at any time, exceed its 50% equity interest of the revolving loan limit. At September 30, 2020, the revolving loan limit was $120 million Australian dollars and the Revolving Loans were fully drawn upon by Middlemount. The Revolving Loans bear interest at 10% per annum and expire on December 31, 2020. The carrying value of the portion of the Revolving Loans due to the Company’s Australian subsidiary, which is included in the total investment balance, was $42.6 million and $17.5 million as of September 30, 2020 and December 31, 2019, respectively, with the increase during the nine months ended September 30, 2020 attributable to the Company’s share of additional funding. Subsequent to September 30, 2020, the revolving loan limit was increased to $160 million Australian dollars and the maturity was extended to December 31, 2021.As of both September 30, 2020 and December 31, 2019, the financing receivables and Revolving Loans are accounted for as in-substance common stock due to the limited fair value attributed to Middlemount’s equity.