Segment Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company identifies a business as an operating segment if: i) it engages in business activities from which it may earn revenues and incur expenses; ii) its operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess its performance; and iii) it has available discrete financial information. The Company has determined that its two underground mining operations are its operating segments. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Operating segments are aggregated into a reportable segment if the operating segments have similar quantitative economic characteristics and if the operating segments are similar in the following qualitative characteristics: i) nature of products and services; ii) nature of production processes; iii) type or class of customer for their products and services; iv) methods used to distribute the products or provide services; and v) if applicable, the nature of the regulatory environment.

The Company has determined that the two operating segments are similar in both quantitative and qualitative characteristics and thus the two operating segments have been aggregated into one reportable segment. The Company has determined that its natural gas and royalty businesses did not meet the criteria in ASC 280 to be considered as operating or reportable segments. Therefore, the Company has included their results in an “all other” category as a reconciling item to consolidated amounts.

The Company does not allocate all of its assets, or its depreciation and depletion expense, selling, general and administrative expenses, other post-retirement benefits, transactions costs, restructuring costs, interest expense, reorganization items, net and income tax expense by segment.

The following tables include reconciliations of segment information to consolidated amounts (in thousands):

	Successor						Predecessor
	For the three months ended June 30,				For the six months ended June 30,		For the three months ended March 31,
	2017		2016		2017		2016
Revenues
Mining	$	351,788	$	85,415	$	592,844	$	65,154
All other	11,582		6,059		24,490		6,229
Total revenues	$	363,370	$	91,474	$	617,334	$	71,383

	Successor					Predecessor
	For the three months ended June 30,			For the six months ended June 30,		For the three months ended March 31,
	2017	2016		2017		2016
Capital Expenditures
Mining	16,093	$	5,343	$	26,586	$	4,588
All other	792	671		1,677		834
Total capital expenditures	16,885	$	6,014	$	28,263	$	5,422

The Company evaluates the performance of its segment based on Segment Adjusted EBITDA, which is defined as net income (loss) adjusted for other revenues, cost of other revenues, depreciation and depletion, selling, general and administrative, other postretirement benefits, and certain transactions or adjustments that the CODM does not consider for the purposes of making decisions to allocate resources among segments or assessing segment performance. Segment Adjusted EBITDA does not represent and should not be considered as an alternative to cost of sales under GAAP and may not be comparable to other similarly titled measures used by other companies. Below is a reconciliation of Segment Adjusted EBITDA to net income (loss), which is its most directly comparable financial measure calculated and presented in accordance with GAAP (in thousands):

	Successor									Predecessor
	For the three months ended June 30,						For the six months ended June 30,			For the three months ended March 31,
	2017			2016			2017			2016
Segment Adjusted EBITDA	$	191,636		$	(18,451	)	$	326,548		$	(7,143	)
Other revenues	11,582			6,059			24,490			6,229
Cost of other revenues	(7,795		)	(5,126		)	(15,974		)	(4,698		)
Depreciation and depletion	(19,650		)	(15,821		)	(34,232		)	(28,958		)
Selling, general and administrative	(8,660		)	(5,815		)	(13,830		)	(9,008		)
Other postretirement benefits	—			—			—			(6,160		)
Restructuring charges	—			—			—			(3,418		)
Transaction and other costs	(3,837		)	(10,475		)	(12,873		)	—
Interest expense, net	(642		)	(434		)	(1,250		)	(16,562		)
Reorganization items, net	—			—			—			7,920
Income tax expense	(32,769		)	—			(34,706		)	(18		)
Net income (loss)	$	129,865		$	(50,063	)	$	238,173		$	(61,816	)