SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

14. SEGMENT INFORMATION

Segment information is based on a management approach, which requires segmentation based upon the Company’s internal organization, reporting of revenue, and operating income. The Company’s operations are classified into six reporting segments: Coal - U.S., Coal - Canada, Coal - WMLP, Power, Heritage, and Corporate. On August 1, 2015, the Company contributed 100% of the outstanding equity interests in Westmoreland Kemmerer, LLC (“Kemmerer”) to WMLP (the “Kemmerer Drop”), and, accordingly, to enable comparability, all segment disclosures have been adjusted to remove financial information for Kemmerer from the Coal - U.S. segment and present it in the Coal - WMLP segment for each of the three and nine months ended September 30, 2016 and 2015.

Summarized financial information by segment is as follows:

	Coal - U.S.(1)		Coal - Canada		Coal - WMLP(2)			Power(3)			Heritage			Corporate(2)			Consolidated(4)(5)
	(In thousands)
Three Months Ended September 30, 2016
Revenues	$	168,860	$	96,480	$	90,320		$	21,554		$	—		$	(6,531	)	$	370,683
Restructuring charges	—		—		—			—			—			—			—
Depreciation, depletion, and amortization	14,820		6,786		11,555			—			—			(49		)	33,112
Operating income (loss)	18,346		4,559		5,970			(4,696		)	(3,326		)	(3,641		)	17,212
Total assets	770,300		504,034		382,098			40,760			16,288			6,172			1,719,652
Capital expenditures	4,824		11,313		2,251			—			—			—			18,388
Three Months Ended September 30, 2015
Revenues	$	132,018	$	107,752	$	94,785		$	22,017		$	—		$	(6,776	)	$	349,796
Restructuring charges	—		—		—			—			—			—			—
Depreciation, depletion, and amortization	9,524		7,023		15,471			2,470			—			(29		)	34,459
Operating income (loss)	482		4,009		(4,845		)	(7,976		)	(2,950		)	(4,027		)	(15,307		)
Total assets	539,497		537,465		431,338			172,182			16,152			(9,675		)	1,686,959
Capital expenditures	7,047		7,485		4,691			198			—			(4		)	19,417
Nine Months Ended September 30, 2016
Revenues	$	475,470	$	298,978	$	263,269		$	65,494		$	—		$	(21,560	)	$	1,081,651
Restructuring charges	—		—		—			—			—			—			—
Depreciation, depletion, and amortization	41,393		19,142		41,367			—			—			(114		)	101,788
Operating income (loss)	33,475		21,168		2,497			(3,766		)	(10,325		)	(11,310		)	31,739
Total assets	770,300		504,034		382,098			40,760			16,288			6,172			1,719,652
Capital expenditures	12,038		13,801		4,780			—			—			—			30,619
Nine Months Ended September 30, 2015
Revenues	$	419,505	$	317,157	$	300,908		$	64,001		$	—		$	(31,331	)	$	1,070,240
Restructuring charges	—		—		656			—			—			—			656
Depreciation, depletion, and amortization	28,199		26,899		44,282			7,430			—			(29		)	106,781
Operating income (loss)	8,403		23,397		(6,151		)	(16,594		)	(8,699		)	(14,072		)	(13,716		)
Total assets	539,497		537,465		431,338			172,182			16,152			(9,675		)	1,686,959
Capital expenditures	18,908		21,413		19,918			1,305			—			(3,573		)	57,971

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(1) The San Juan Acquisition was completed on January 31, 2016. For the three and nine months ended September 30, 2016, revenues for the Westmoreland San Juan Entities were $51.7 million and $128.3 million, respectively, and operating income was $14.0 million and $22.2 million, respectively.

(2) The Coal - WMLP segment recorded revenues of $6.2 million and $20.5 million for intersegment revenues to the Coal - U.S. segment for the three and nine months ended September 30, 2016, respectively and $5.9 million and $24.6 million for the three and nine months ended September 30, 2015, respectively. Eliminations for intersegment revenues and cost of sales are presented within the Corporate segment.

(3) Total assets as of September 30, 2016 reflect a $133.1 million asset impairment in the Power segment that was recorded during the fourth quarter of 2015. No such impairment had been recorded as of September 30, 2015.

(4) Deferred tax assets of $14.5 million as of September 30, 2015 were reclassified into liabilities on adoption of ASU 2015-17 - Income Taxes: Balance Sheet Classification of Deferred Taxes.

(5) Unamortized debt issuance costs of $26.8 million as of September 30, 2015 were reclassified from other non-current assets into long-term debt on adoption of ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.