Segment Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company reports its results of operations primarily through the following reportable segments: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal and Corporate and Other. The Company’s chief operating decision maker, defined as its Chief Executive Officer, uses Adjusted EBITDA as the primary metric to measure the segments’ operating performance and allocate resources.

Adjusted EBITDA is a non-GAAP financial measure defined as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments’ operating performance, as displayed in the reconciliation below. Management believes this non-GAAP performance measure is also used by investors to measure the Company’s operating performance. Adjusted EBITDA is not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.

Reportable segment results were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(Dollars in millions)
Revenue:
Seaborne Thermal	$	297.4	$	353.2	$	1,043.4	$	959.3
Seaborne Metallurgical	247.0		310.7		907.9		1,165.8
Powder River Basin	313.0		290.5		878.0		771.4
Other U.S. Thermal	228.2		261.4		677.5		689.4
Corporate and Other	(6.7)		126.7		204.9		(230.1)
Total	$	1,078.9	$	1,342.5	$	3,711.7	$	3,355.8
Adjusted EBITDA:
Seaborne Thermal	$	115.5	$	171.2	$	477.0	$	438.5
Seaborne Metallurgical	78.6		113.2		271.9		593.9
Powder River Basin	54.1		37.9		116.1		43.5
Other U.S. Thermal	49.1		72.7		165.2		184.6
Corporate and Other	(27.3)		43.9		(11.4)		83.7
Total	$	270.0	$	438.9	$	1,018.8	$	1,344.2

A reconciliation of consolidated income from continuing operations, net of income taxes to Adjusted EBITDA follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(Dollars in millions)
Income from continuing operations, net of income taxes	$	128.8	$	384.4	$	617.0	$	675.9
Depreciation, depletion and amortization	82.3		80.7		239.2		227.4
Asset retirement obligation expenses	15.4		13.1		46.3		40.8
Restructuring charges	0.9		1.0		3.0		2.8
Asset impairment	—		1.7		2.0		1.7
Provision for NARM and Shoal Creek loss	3.3		—		37.0		—
Changes in amortization of basis difference related to equity affiliates	(0.5)		(0.5)		(1.2)		(1.7)
Interest expense	13.8		33.8		45.5		110.8
Net loss on early debt extinguishment	—		8.7		8.8		34.5
Interest income	(20.3)		(4.9)		(56.5)		(6.3)
Unrealized (gains) losses on derivative contracts related to forecasted sales	—		(90.4)		(159.0)		235.1
Unrealized losses (gains) on foreign currency option contracts	0.5		1.4		(0.1)		4.4
Take-or-pay contract-based intangible recognition	(0.7)		(0.8)		(1.9)		(2.2)
Income tax provision	46.5		10.7		238.7		21.0
Adjusted EBITDA	$	270.0	$	438.9	$	1,018.8	$	1,344.2