Segment Information

12 Months Ended

Dec. 31, 2020

Segment Information

Segment Information

27. Segment Information

The Company’s reportable business segments are based on two distinct lines of business, metallurgical coal and thermal coal, and may include a number of mine complexes. The Company manages its coal sales by market, not by individual mining complex. Geology, coal transportation routes to customers, and regulatory environments also have a significant impact on the Company’s marketing and operations management. Mining operations are evaluated based on Adjusted EBITDA, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirement obligations, and pass-through transportation expenses divided by segment tons sold), and on other non-financial measures, such as safety and environmental performance. Adjusted EBITDA is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDA are significant in understanding and assessing our financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income (loss), income (loss) from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under generally accepted accounting principles. The Company uses Adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. Furthermore, analogous measures are used by industry analysts and investors to evaluate the Company’s operating performance. Investors should be aware that the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The Company reports its results of operations primarily through the following reportable segments: Powder River Basin (PRB) segment containing the Company’s primary thermal operations in Wyoming; the Metallurgical (MET) segment, containing the Company’s metallurgical operations in West Virginia and the Other Thermal segment containing the Company’s supplementary thermal operations in Colorado and Illinois. Periods presented in this note have been recast for comparability.

On December 31, 2020, the Company sold its Viper operation, which had been part of its Other Thermal segment. Viper’s results for the full year of 2020 are included in the Company’s full year 2020 results, and in all preceding periods’ results presented herein. For further information on the sale of Viper to Knight Hawk Holdings, LLC, please see Note 4, “Divestitures” to the Consolidated Financial Statements.

On December 13, 2019, the Company closed on its definitive agreement to sell Coal-Mac LLC, an operating mine complex within the Company’s other thermal coal segment. Coal-Mac is included in the Other Thermal segment results below up to the date of divestiture. For further information on the divestiture, please see Note 4, “Divestitures” to the Consolidated Financial Statements.

Operating segment results for the year ended December 31, 2020, the year ended December 31, 2019, and the year ended December 31, 2018 are presented below. The Company measures its segments based on “adjusted earnings before interest, taxes, depreciation, depletion, amortization, and accretion on asset retirements obligations (Adjusted EBITDA).” Adjusted EBITDA does not reflect mine closure or impairment costs, since those are not reflected in the operating income reviewed by management. The Corporate, Other and Eliminations grouping includes these charges, as well as the change in fair value of coal derivatives and coal trading activities, net; corporate overhead; land management activities; other support functions; and the elimination of intercompany transactions.

							Corporate,
					Other		Other and
(In thousands)	PRB		MET		Thermal		Eliminations		Consolidated
Year Ended December 31, 2020
Revenues	$	662,135	$	641,536	$	139,497	$	24,424	$	1,467,592
Adjusted EBITDA		50,246		91,322		(16,211)		(101,614)		23,743
Depreciation, depletion and amortization		21,375		91,202		6,976		1,999		121,552
Accretion on asset retirement obligation		13,979		1,943		1,389		2,576		19,887
Total assets		179,401		811,605		16,935		714,531		1,722,472
Capital expenditures		4,688		269,273		6,031		5,829		285,821
Year Ended December 31, 2019
Revenues	$	915,750	$	990,550	$	377,202	$	10,850	$	2,294,352
Adjusted EBITDA		110,528		305,363		41,495		(94,219)		363,167
Depreciation, depletion and amortization		20,810		74,211		14,414		2,186		111,621
Accretion on asset retirement obligation		12,542		2,123		2,413		3,470		20,548
Total assets		256,460		625,134		105,411		880,751		1,867,756
Capital expenditures		29,420		211,718		20,088		5,130		266,356
Year Ended December 31, 2018
Revenues	$	973,248	$	1,036,621	$	428,884	$	13,034	$	2,451,787
Adjusted EBITDA		126,525		349,524		68,620		(106,891)		437,778
Depreciation, depletion and amortization		33,120		69,560		14,699		13,291		130,670
Accretion on asset retirement obligation		19,541		1,874		2,261		4,294		27,970
Total assets		278,314		545,061		125,333		938,352		1,887,060
Capital expenditures		12,140		64,307		11,999		6,826		95,272

A reconciliation of segment Adjusted EBITDA to consolidated income (loss) from continuing operations before income taxes follows:

	Year Ended		Year Ended		Year Ended
	December 31,		December 31,		December 31,
(In thousands)	2020		2019		2018
Net income (loss)	$	(344,615)	$	233,799	$	312,577
Provision for (benefit from) income taxes		(7)		248		(52,476)
Interest expense, net		10,624		6,794		13,689
Depreciation, depletion and amortization		121,552		111,621		130,670
Accretion on asset retirement obligations		19,887		20,548		27,970
Costs related to proposed joint venture with Peabody Energy		16,087		13,816		—
Asset impairment and restructuring		221,380		—		—
Gain on property insurance recovery related to Mountain Laurel longwall		(23,518)		—		—
(Gain) loss on divestitures		(1,505)		13,312		—
Preference Rights Lease Application settlement income		—		(39,000)		—
Net loss resulting from early retirement of debt and debt restructuring		—		—		485
Non-service related pension and postretirement benefit costs		3,884		2,053		3,202
Reorganization items, net		(26)		(24)		1,661
Adjusted EBITDA	$	23,743	$	363,167	$	437,778
EBITDA from idled or otherwise disposed operations		15,858		12,926		2,492
Selling, general and administrative expenses		82,397		95,781		100,300
Other		3,359		(14,488)		4,099
Segment Adjusted EBITDA from coal operations	$	125,357	$	457,386	$	544,669