Segment Information

3 Months Ended

Mar. 31, 2022

Segment Information [Abstract]

Segment Information

3.Segment Information

The Company has a portfolio of operating mines and development projects in Queensland, Australia, and in the states of Pennsylvania, Virginia and West Virginia in the U.S. The operations in Australia, or Australian Operations, comprise the 100%-owned Curragh producing mine complex. The operations in the United States, or U.S. Operations, comprise two 100%-owned producing mine complexes (Buchanan and Logan), one 100%-owned idled mine complex (Greenbrier) and two development properties (Mon Valley and Russell County).

The Company operates its business along two reportable segments: Australia and the United States. The organization of the two reportable segments reflects how the Company’s chief operating decision maker, or CODM, manages and allocates resources to the various components of the Company’s business.

The CODM uses Adjusted EBITDA as the primary metric to measure each segment’s operating performance. Adjusted EBITDA is not a measure of financial performance in accordance with U.S. GAAP. Investors should be aware that the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled financial measures used by other companies.

Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion and amortization and other foreign exchange losses. Adjusted EBITDA is also adjusted for certain discrete items that management exclude in analyzing each of the Company’s segments’ operating performance. “Other and corporate” relates to additional financial information for the corporate function such as accounting, treasury, legal, human resources, compliance, and tax. As such, the corporate function is not determined to be a reportable segment but is discretely disclosed for purposes of reconciliation to the Company’s condensed consolidated financial statements.

Reportable segment results as of and for the three months ended March 31, 2022 and 2021 are presented below:

		Australia		United States		Other and Corporate		Total
		(in US$ thousands)
Three months ended March 31, 2022
Total revenues	$	605,298	$	341,827	$	—	$	947,125
Adjusted EBITDA		238,968		179,899		(7,880)		410,987
Net income/(loss)		150,147		122,968		(3,217)		269,898
Total assets		1,371,294		976,326		504,735		2,852,355
Capital expenditures		15,962		23,749		92		39,803
Three months ended March 31, 2021
Total revenues	$	238,293	$	137,818	$	—	$	376,111
Adjusted EBITDA		(23,059)		36,530		(5,830)		7,641
Net (loss) income		(42,331)		10,391		(9,032)		(40,972)
Total assets		1,082,586		855,527		117,616		2,055,729
Capital expenditures		7,032		14,538		1,034		22,604

The reconciliations of Adjusted EBITDA to net income attributable to the Company for the three months ended March 31, 2022 and 2021 are as follows:

	Three months ended
	March 31,
	2022		2021
	(in US$ thousands)
Net income (loss)	$	269,898	$	(40,972)
Depreciation, depletion and amortization		38,009		53,081
Interest expense (net of income)		17,332		15,135
Other foreign exchange losses		1,991		1,749
Income tax expense (benefit)		81,943		(19,068)
Losses on idled assets held for sale(1)		1,386		1,494
Increase (decrease) in provision for discounting and credit losses		428		(3,778)
Consolidated Adjusted EBITDA	$	410,987	$	7,641

⁽¹⁾ These losses relate to idled non-core assets that the Company has classified as held for sale with the view that these will be sold within the next twelve months.

The reconciliations of capital expenditures per the Company’s segment information to capital expenditures disclosed on the unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021 are as follows:

		Three months ended March 31,
		2022		2021
		(in US$ thousands)
Capital expenditures per Condensed Consolidated Statements of Cash Flows	$	37,768	$	28,604
Accruals for capital expenditures		9,510		—
Payment for capital acquired in prior periods		(7,475)		(6,000)
Capital expenditures per segment detail	$	39,803	$	22,604

Disaggregation of Revenue

The Company disaggregates the revenue from contracts with customers by major product group for each of the Company’s reportable segments, as the Company believes it best depicts the nature, amount, timing and uncertainty of revenues and cash flows. All revenue is recognized at a point in time.

		Three months ended March 31, 2022
		Australia		United States		Total
		(in US$ thousands)
Product Groups:
Metallurgical coal	$	554,009	$	337,720	$	891,729
Thermal coal		42,289		2,610		44,899
Total coal revenue		596,298		340,330		936,628
Other(1)		9,000		1,497		10,497
Total	$	605,298	$	341,827	$	947,125

		Three months ended March 31, 2021
		Australia		United States		Total
		(in US$ thousands)
Product Groups:
Metallurgical coal	$	206,452	$	136,984	$	343,436
Thermal coal		22,998		768		23,766
Total coal revenue		229,450		137,752		367,202
Other(1)		8,843		66		8,909
Total	$	238,293	$	137,818	$	376,111

(1) Other revenue for the Australian segment includes the amortization of the Stanwell non-market coal supply contract obligation liability.