XML 79 R32.htm IDEA: XBRL DOCUMENT v3.22.4
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
The Company reports its results of operations primarily through the following reportable segments: Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, Other U.S. Thermal Mining and Corporate and Other.
The business of the Company’s seaborne operating platform is primarily export focused with customers spread across several countries, with a portion of its thermal and metallurgical coal sold within Australia. Generally, revenue from individual countries vary year by year based on electricity and steel demand, the strength of the global economy, governmental policies and several other factors, including those specific to each country. The Company classifies its seaborne mines within the Seaborne Thermal Mining or Seaborne Metallurgical Mining segments based on the primary customer base and coal reserve type of each mining operation. A small portion of the coal mined by the Seaborne Thermal Mining segment is of a metallurgical grade. Similarly, a small portion of the coal mined by the Seaborne Metallurgical Mining segment is of a thermal grade. Additionally, the Company may market some of its metallurgical coal products as a thermal coal product from time to time depending on market conditions.
The Company’s Seaborne Thermal Mining operations consist of mines in New South Wales, Australia. The mines in that segment utilize both surface and underground extraction processes to mine low-sulfur, high Btu thermal coal.
The Company’s Seaborne Metallurgical Mining operations consist of mines in Queensland, Australia, one in New South Wales, Australia and one in Alabama, USA. The mines in that segment utilize both surface and underground extraction processes to mine various qualities of metallurgical coal. The metallurgical coal qualities include hard coking coal, semi-hard coking coal, semi-soft coking coal and pulverized coal injection coal.
The principal business of the Company’s thermal operating segments in the U.S. is the mining, preparation and sale of thermal coal, sold primarily to electric utilities in the U.S. under long-term contracts, with a relatively small portion sold as international exports as conditions warrant. The Company’s Powder River Basin Mining operations consist of its mines in Wyoming. The mines in that segment are characterized by surface mining extraction processes, coal with a lower sulfur content and Btu and higher customer transportation costs (due to longer shipping distances). The Company’s Other U.S. Thermal Mining operations reflect the aggregation of its Illinois, Indiana, New Mexico and Colorado mining operations. The mines in that segment are characterized by a mix of surface and underground mining extraction processes, coal with a higher sulfur content and Btu and lower customer transportation costs (due to shorter shipping distances). Geologically, the Company’s Powder River Basin Mining operations mine sub-bituminous coal deposits and its Other U.S. Thermal Mining operations mine both bituminous and sub-bituminous coal deposits.
The Company’s Corporate and Other segment includes selling and administrative expenses, results from equity affiliates, corporate hedging activities, trading and brokerage activities, minimum charges on certain transportation-related contracts, the closure of inactive mining sites and certain commercial matters.
The Company’s chief operating decision maker, defined as its Chief Executive Officer, uses Adjusted EBITDA as the primary metric to measure the segments’ operating performance and allocate resources. Adjusted EBITDA is a non-GAAP financial measure defined as income (loss) from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments’ operating performance, as displayed in the reconciliation below. Management believes non-GAAP performance measures are used by investors to measure the Company’s operating performance. Adjusted EBITDA is not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.
Segment results for the year ended December 31, 2022 were as follows:
Seaborne Thermal MiningSeaborne Metallurgical MiningPowder River Basin MiningOther U.S. Thermal MiningCorporate
and Other		Consolidated
 (Dollars in millions)
Revenue$1,345.6 $1,616.9 $1,065.5 $952.2 $1.7 $4,981.9 
Adjusted EBITDA647.6 781.7 68.2 242.4 104.8 1,844.7 
Additions to property, plant, equipment and mine development
38.8 84.8 59.1 35.3 3.5 221.5 
Income from equity affiliates— — — — (131.2)(131.2)
Segment results for the year ended December 31, 2021 were as follows:
Seaborne Thermal MiningSeaborne Metallurgical MiningPowder River Basin MiningOther U.S. Thermal MiningCorporate
and Other		Consolidated
 (Dollars in millions)
Revenue$934.0 $727.7 $971.2 $689.1 $(3.7)$3,318.3 
Adjusted EBITDA353.1 178.2 134.9 164.2 86.3 916.7 
Additions to property, plant, equipment and mine development
88.6 25.1 41.4 24.2 3.8 183.1 
Income from equity affiliates— — — — (82.1)(82.1)
Segment results for the year ended December 31, 2020 were as follows:
Seaborne Thermal MiningSeaborne Metallurgical MiningPowder River Basin MiningOther U.S. Thermal MiningCorporate
and Other		Consolidated
 (Dollars in millions)
Revenue$711.8 $486.5 $991.1 $707.3 $(15.6)$2,881.1 
Adjusted EBITDA163.2 (130.2)194.8 168.4 (137.4)258.8 
Additions to property, plant, equipment and mine development
100.7 50.8 13.2 23.3 3.4 191.4 
Loss from equity affiliates— — — — 60.1 60.1 
Asset details are reflected at the division level only for the Company’s operating segments and are not allocated between each individual segment as such information is not regularly reviewed by the Company’s CODM. Further, some assets service more than one segment within the division and an allocation of such assets would not be meaningful or representative on a segment by segment basis. Assets related to closed, suspended or otherwise inactive mines are included within the Corporate and Other category.
Assets as of December 31, 2022 were as follows:
Seaborne MiningU.S. Thermal MiningCorporate
and Other		Consolidated
(Dollars in millions)
Total assets$1,632.6 $1,359.4 $2,618.8 $5,610.8 
Property, plant, equipment and mine development, net
1,220.7 1,217.5 426.8 2,865.0 
Operating lease right-of-use assets20.5 0.5 5.9 26.9 
Assets as of December 31, 2021 were as follows:
Seaborne MiningU.S. Thermal MiningCorporate
and Other		Consolidated
(Dollars in millions)
Total assets$1,669.6 $1,318.5 $1,961.7 $4,949.8 
Property, plant, equipment and mine development, net
1,298.8 1,209.5 442.3 2,950.6 
Operating lease right-of-use assets19.2 3.3 13.0 35.5 
Assets as of December 31, 2020 were as follows:
Seaborne MiningU.S. Thermal MiningCorporate
and Other		Consolidated
(Dollars in millions)
Total assets$1,763.0 $1,345.3 $1,558.8 $4,667.1 
Property, plant, equipment and mine development, net
1,347.3 1,258.8 445.0 3,051.1 
Operating lease right-of-use assets30.8 3.5 15.6 49.9 
A reconciliation of consolidated income (loss) from continuing operations, net of income taxes to Adjusted EBITDA follows:
 Year Ended December 31,
 202220212020
 (Dollars in millions)
Income (loss) from continuing operations, net of income taxes$1,317.4 $347.4 $(1,859.8)
Depreciation, depletion and amortization317.6 308.7 346.0 
Asset retirement obligation expenses49.4 44.7 45.7 
Restructuring charges2.9 8.3 37.9 
Transaction costs related to joint ventures— — 23.1 
Asset impairment11.2 — 1,487.4 
Changes in deferred tax asset valuation allowance and reserves and amortization of basis difference related to equity affiliates(2.3)(33.8)30.9 
Interest expense140.3 183.4 139.8 
Net loss (gain) on early debt extinguishment57.9 (33.2)— 
Interest income(18.4)(6.5)(9.4)
Net mark-to-market adjustment on actuarially determined liabilities
(27.8)(43.4)(5.1)
Unrealized losses on derivative contracts related to forecasted sales35.8 115.1 29.6 
Unrealized losses (gains) on foreign currency option contracts2.3 7.5 (7.1)
Take-or-pay contract-based intangible recognition(2.8)(4.3)(8.2)
Income tax (benefit) provision(38.8)22.8 8.0 
Total Adjusted EBITDA$1,844.7 $916.7 $258.8 

The following table presents revenue as a percent of total revenue from external customers by geographic region:
 Year Ended December 31,
 202220212020
U.S.36.6 %45.5 %56.2 %
Japan19.4 %14.2 %13.3 %
Taiwan9.3 %14.4 %7.7 %
Australia8.5 %7.7 %6.9 %
India2.9 %5.4 %2.6 %
Vietnam2.8 %2.0 %2.4 %
Brazil2.8 %0.9 %0.1 %
South Korea2.1 %1.4 %0.8 %
Indonesia1.5 %3.0 %0.2 %
Belgium1.3 %— %0.3 %
Chile1.1 %0.3 %— %
France1.1 %— %— %
China— %— %3.8 %
Other10.6 %5.2 %5.7 %
Total100.0 %100.0 %100.0 %
The Company attributes revenue to individual countries based on the location of the physical delivery of the coal.