Segment Information

The Company extracts, processes and markets met and thermal coal from surface and deep mines for sale to steel and coke producers, industrial customers, and electric utilities. The Company conducts mining operations only in the United States with mines in Central and Northern Appalachia. As of December 31, 2019, the Company has three reportable segments: CAPP - Met, CAPP - Thermal, and NAPP. CAPP - Met consists of seven active mines and two preparation plants in Virginia, sixteen active mines and five preparation plants in West Virginia, as well as expenses associated with certain idled/closed mines. CAPP - Thermal consists of five active mines and two preparation plants in West Virginia, as well as expenses associated with certain idled/closed mines. NAPP consists of one active mine in Pennsylvania and one preparation plant, as well as expenses associated with one closed mine. Prior to the third quarter of 2019, the Company had four reportable segments: CAPP - Met, CAPP - Thermal, NAPP, and Trading and Logistics. As a result of the changes in key operating personnel during the third quarter of 2019 including changes to the Company’s Chief Operating Decision Maker (“CODM”), the Company was required to re-evaluate its previous conclusions with respect to its segment reporting during the period. To conform to the current period reportable segments presentation, the prior periods have been restated to reflect the change in reportable segments. Prior to the Merger, the Company had three reportable segments: CAPP, NAPP, and Trading and Logistics.

In addition to the three reportable segments, the All Other category includes general corporate overhead and corporate assets and liabilities, idled and closed mine costs, and the elimination of certain intercompany activity.

The operating results of these reportable segments are regularly reviewed by the “CODM,” who is the Chief Executive Officer of the Company.

Segment operating results and capital expenditures from continuing operations for the year ended December 31, 2019 were as follows:



	Year Ended December 31, 2019
	CAPP - Met		CAPP - Thermal			NAPP		All Other			Consolidated
Total revenues	$	1,711,252	$	286,486		$	288,988	$	3,534		$	2,290,260
Depreciation, depletion, and amortization	$	153,006	$	57,483		$	12,864	$	5,439		$	228,792
Amortization of acquired intangibles, net	$	10,389	$	(13,578	)	$	3,101	$	—		$	(88	)
Adjusted EBITDA	$	316,324	$	11,981		$	31,185	$	(63,883	)	$	295,607
Capital expenditures	$	140,250	$	17,545		$	31,964	$	2,652		$	192,411

Segment operating results and capital expenditures from continuing operations for the year ended December 31, 2018 were as follows:



	Year Ended December 31, 2018
	CAPP - Met			CAPP - Thermal			NAPP		All Other			Consolidated
Total revenues	$	1,671,219		$	39,650		$	317,039	$	3,297		$	2,031,205
Depreciation, depletion, and amortization	$	40,330		$	10,596		$	23,273	$	3,350		$	77,549
Amortization of acquired intangibles, net	$	(12,334	)	$	(7,516	)	$	14,458	$	—		$	(5,392	)
Adjusted EBITDA	$	335,135		$	(875	)	$	44,368	$	(43,552	)	$	335,076
Capital expenditures	$	39,634		$	1,280		$	40,635	$	332		$	81,881

Segment operating results and capital expenditures from continuing operations for the year ended December 31, 2017 were as follows:



	Year Ended December 31, 2017
	CAPP - Met		CAPP - Thermal		NAPP		All Other			Consolidated
Total revenues	$	1,329,734	$	—	$	319,400	$	835		$	1,649,969
Depreciation, depletion, and amortization	$	18,941	$	—	$	15,087	$	882		$	34,910
Amortization of acquired intangibles, net	$	34,737	$	—	$	24,270	$	—		$	59,007
Adjusted EBITDA	$	264,314	$	—	$	54,433	$	(40,281	)	$	278,466
Capital expenditures	$	20,494	$	—	$	51,007	$	1,200		$	72,701

The following table presents a reconciliation of net income (loss) from continuing operations to Adjusted EBITDA for the year ended December 31, 2019:



	Year Ended December 31, 2019
	CAPP - Met			CAPP - Thermal			NAPP			All Other			Consolidated
Net income (loss) from continuing operations	$	8,224		$	(97,398	)	$	11,926		$	(125,894	)	$	(203,142	)
Interest expense	(1,209		)	23			(723		)	68,707			66,798
Interest income	(100		)	—			(49		)	(7,147		)	(7,296		)
Income tax benefit	—			—			—			(57,557		)	(57,557		)
Depreciation, depletion and amortization	153,006			57,483			12,864			5,439			228,792
Merger-related costs	—			—			—			1,090			1,090
Non-cash stock compensation expense	1,494			71			—			10,783			12,348
Mark-to-market adjustment - acquisition-related obligations	—			—			—			(3,564		)	(3,564		)
Accretion on asset retirement obligations	9,466			10,929			4,066			3,337			27,798
Loss on modification and extinguishment of debt	—			—			—			26,459			26,459
Asset impairment ⁽¹⁾	15,034			50,993			—			297			66,324
Goodwill impairment ⁽²⁾	124,353			—			—			—			124,353
Cost impact of coal inventory fair value adjustment ⁽³⁾	4,751			3,458			—			—			8,209
Gain on assets acquired in an exchange transaction ⁽⁴⁾	(9,083		)	—			—			—			(9,083		)
Management restructuring costs ⁽⁵⁾	—			—			—			7,720			7,720
Loss on partial settlement of benefit obligations	(1		)	—			—			6,447			6,446
Amortization of acquired intangibles, net	10,389			(13,578		)	3,101			—			(88		)
Adjusted EBITDA	$	316,324		$	11,981		$	31,185		$	(63,883	)	$	295,607

⁽¹⁾Asset impairment for the year ended December 31, 2019 includes a long-lived asset impairment of $60,169 related to asset groups recorded within the CAPP - Met and CAPP - Thermal reporting segments and an asset impairment of $6,155 primarily related to the write-off of prepaid purchased coal as a result of Blackjewel’s Chapter 11 bankruptcy filing on July 1, 2019. Refer to Note 2 and Note 4 for further information.

⁽²⁾ The goodwill impairment testing as of December 31, 2019 resulted in a goodwill impairment of $124,353 to write down the full carrying value of goodwill. Refer to Note 2 for further information.

⁽³⁾ The cost impact of the coal inventory fair value adjustment as a result of the Alpha Merger was completed during the three months ended June 30, 2019.

⁽⁴⁾ During the year ended December 31, 2019, the Company entered into an exchange transaction which primarily included the release of the PRB overriding royalty interest owed to the Company in exchange for met coal reserves which resulted in a gain of $9,083.

⁽⁵⁾ Management restructuring costs are related to severance expense associated with senior management changes in the year ended December 31, 2019.

The following table presents a reconciliation of net income (loss) from continuing operations to Adjusted EBITDA for the year ended December 31, 2018:



	Year Ended December 31, 2018
	CAPP - Met			CAPP - Thermal			NAPP			All Other			Consolidated
Net income (loss) from continuing operations	$	306,898		$	(10,796	)	$	4,193		$	2,559		$	302,854
Interest expense	260			1			(1,286		)	39,835			38,810
Interest income	(40		)	—			(34		)	(1,875		)	(1,949		)
Income tax benefit	—			—			—			(165,363		)	(165,363		)
Depreciation, depletion and amortization	40,330			10,596			23,273			3,350			77,549
Merger-related costs	22			1			—			51,777			51,800
Management restructuring costs⁽¹⁾	—			—			—			2,659			2,659
Non-cash stock compensation expense	408			24			—			11,546			11,978
Mark-to-market adjustment - acquisition-related obligations	—			—			—			24			24
Gain on settlement of acquisition-related obligations	—			—			—			(580		)	(580		)
Gain on sale of disposal group ⁽²⁾	(16,386		)	—			—			—			(16,386		)
Accretion on asset retirement obligations	4,430			1,298			3,764			474			9,966
Loss on modification and extinguishment of debt	—			—			—			12,042			12,042
Cost impact of coal inventory fair value adjustment ⁽³⁾	11,547			5,517			—			—			17,064
Amortization of acquired intangibles, net	(12,334		)	(7,516		)	14,458			—			(5,392		)
Adjusted EBITDA	$	335,135		$	(875	)	$	44,368		$	(43,552	)	$	335,076

⁽¹⁾Management restructuring costs are related to severance expense associated with senior management changes in the year ended December 31, 2018.

⁽²⁾ The Company recorded a gain on disposal of assets of $16,386 within other (income) expense within the Consolidated Statements of Operations.

⁽³⁾ The cost impact of the coal inventory fair value adjustment as a result of the Alpha Merger was completed during the three months ended June 30, 2019.

The following table presents a reconciliation of net income (loss) from continuing operations to Adjusted EBITDA for the year ended December 31, 2017:



	Year Ended December 31, 2017
	CAPP - Met			CAPP - Thermal		NAPP			All Other			Consolidated
Net income (loss) from continuing operations	$	204,213		$	—	$	12,334		$	(42,812	)	$	173,735
Interest expense	(90		)	—		(1,505		)	37,572			35,977
Interest income	(22		)	—		(1		)	(187		)	(210		)
Income tax benefit	—			—		—			(67,979		)	(67,979		)
Depreciation, depletion and amortization	18,941			—		15,087			882			34,910
Non-cash stock compensation expense	650			—		—			19,559			20,209
Mark-to-market adjustment - acquisition-related obligations	—			—		—			3,221			3,221
Gain on settlement of acquisition-related obligations	—			—		—			(38,886		)	(38,886		)
Secondary offering costs	—			—		—			4,491			4,491
Loss on modification and extinguishment of debt	—			—		—			38,701			38,701
Bargain purchase gain	—			—		—			(1,011		)	(1,011		)
Accretion on asset retirement obligations	5,770			—		4,164			—			9,934
Amortization of acquired intangibles, net	34,737			—		24,270			—			59,007
Expenses related to the dividend	115			—		84			6,168			6,367
Adjusted EBITDA	$	264,314		$	—	$	54,433		$	(40,281	)	$	278,466

No asset information has been provided for these reportable segments as the CODM does not regularly review asset information by reportable segment.

The Company markets produced, processed and purchased coal to customers in the United States and in international markets, primarily India, Brazil, Turkey, the Netherlands, and France. Export coal revenues were the following:



	Year Ended December 31,
	2019			2018			2017
Total coal revenues ⁽¹⁾	$	2,282,007		$	2,020,889		$	1,639,883
Export coal revenues ^{(1) (2)}	$	1,247,614		$	1,671,646		$	1,265,320
Export coal revenues as % of total coal revenues ⁽¹⁾	55		%	83		%	77		%

⁽¹⁾Amounts include freight and handling revenues.

⁽²⁾The amounts for the year ended December 31, 2019 include $288,344 of export coal revenues from external customers in India, recorded within the CAPP - Met, CAPP - Thermal, and NAPP segments. The amounts for the year ended December 31, 2018 include $420,919 and $285,120 of export coal revenues from external customers in India and Brazil, respectively, recorded within the CAPP - Met, CAPP - Thermal, and NAPP segments. The amounts for the year ended December 31, 2017 include $356,673 of export coal revenues, including freight and handling revenues, from external customers in India, recorded within the CAPP - Met and NAPP segments. Revenue is tracked within the Company’s accounting records based on the product destination.