Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s reportable business segments are based on two distinct lines of business, metallurgical and thermal, 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 EBITDAR, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirements obligations, and pass-through transportation expenses), and on other non-financial measures, such as safety and environmental performance. Adjusted EBITDAR is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDAR are significant in understanding and assessing our financial condition. Therefore, Adjusted EBITDAR should not be considered in isolation, nor as an alternative to net income, income 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 EBITDAR 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 EBITDAR 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, Kentucky, and Virginia, and the Other Thermal segment containing the Company’s supplementary thermal operations in Colorado, Illinois, and West Virginia. Periods presented in this note have been recast for comparability.

Operating segment results for the Successor period, the three months endedMarch 31,2017, and the Predecessor period, the three months endedMarch 31,2016, are presented below. The Company measures its segments based on “adjusted earnings before interest, taxes, depreciation, depletion, amortization, accretion on asset retirements obligations, and reorganization items, net (Adjusted EBITDAR).” Adjusted EBITDAR does not reflect mine closure or impairment costs, since those are not reflected in the operating income reviewed by management. See Note 5, “Asset Impairment and Mine Closure Costs” for discussion of these costs. 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.

	PRB		MET		Other Thermal		Corporate, Other and Eliminations			Consolidated
Successor Period	(in thousands)
Three Months Ended March 31, 2017
Revenues	$	273,428	$	225,582	$	101,906	$	59		$	600,975
Adjusted EBITDAR	48,006		68,310		27,242		(23,060		)	120,498
Depreciation, depletion and amortization	9,510		18,764		3,200		447			31,921
Accretion on asset retirement obligation	5,040		528		540		1,515			7,623
Capital expenditures	128		4,610		741		471			5,950
Predecessor Period
Three Months Ended March 31, 2016
Revenues	$	223,122	$	136,583	$	56,132	$	12,269		$	428,106
Adjusted EBITDAR	12,728		6,352		3,151		(23,951		)	(1,720		)
Depreciation, depletion and amortization	32,760		19,345		9,891		1,703			63,699
Accretion on asset retirement obligation	5,647		588		663		1,408			8,306
Capital expenditures	10		3,604		1,945		367			5,926

A reconciliation of adjusted EBITDAR to consolidated loss before income taxes follows:

	Successor			Predecessor
	Three Months Ended March 31,			Three Months Ended March 31,
	2017			2016
(In thousands)
Adjusted EBITDAR	$	120,498		$	(1,720	)
Depreciation, depletion and amortization	(31,921		)	(63,699		)
Accretion on asset retirement obligations	(7,623		)	(8,306		)
Amortization of sales contracts, net	(14,690		)	833
Asset impairment and mine closure costs	—			(85,520		)
Interest expense, net	(8,898		)	(43,313		)
Net loss resulting from early retirement of debt and debt restructuring	(2,030		)	(2,213		)
Reorganization items, net	(2,828		)	(3,875		)
Income (loss) before income taxes	$	52,508		$	(207,813	)