Equity Method Investments

3 Months Ended

Mar. 31, 2023

Equity Method Investment, Summarized Financial Information [Abstract]

The Company’s equity method investments include its joint venture interest in Middlemount Coal Pty Ltd (Middlemount), R3 Renewables LLC (R3) and certain other equity method investments.

The table below summarizes the book value of those investments, which are reported in “Investments and other assets” in the condensed consolidated balance sheets, and the related “Income from equity affiliates”:


					(Income) Loss from Equity Affiliates
	Book Value at				Three Months Ended March 31,
	March 31, 2023		December 31, 2022		2023		2022
	(Dollars in millions)
Equity method investment related to Middlemount	$	29.4	$	27.1	$	(2.6)	$	(45.7)
Equity method investment related to R3	8.2		7.0		0.8		1.0

Total equity method investments	$	37.6	$	34.1	$	(1.8)	$	(44.7)

The Company received no cash payments from Middlemount during the three months ended March 31, 2023. Payments of $47.0 million were received from Middlemount during the three months ended March 31, 2022.

One of the Company’s Australian subsidiaries is party to an agreement to provide a revolving loan to Middlemount. The Company’s participation in the revolving loan will not, at any time, exceed its 50% equity interest of the revolving loan limit, which was $50 million Australian dollars at March 31, 2023. The revolving loan bears interest at 10% per annum and expires on December 31, 2023. There was no outstanding revolving loan at March 31, 2023 or December 31, 2022.

In March 2022, the Company entered into a joint venture with unrelated partners to form R3. R3 was formed with the intent of developing various sites, including certain reclaimed mining land held by the Company in the U.S., for utility-scale photovoltaic solar generation and battery storage. The Company contributed $2.0 million to R3 during both the three months ended March 31, 2023 and 2022.