Reconciliation of Non-GAAP measures Included in this presentation, we have disclosed certain non-GAAP measures as defined by Regulation G. The following reconciles these items to net income and cash flows as reported under GAAP. Adjusted EBITDA is defined as net income attributable to the Company before the effect of net interest expense, income taxes, depreciation, depletion and amortization, accretion on asset retirement obligations, amortization of sales contracts and non-operating expenses. Adjusted EBITDA may also be adjusted for items that may not reflect the trend of future results by excluding transactions that are not indicative of the Company's core operating perform ance. Adjusted EBITDA is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDA are significant in understanding and assessing our financial condition. Therefore, Adjusted EBITDA 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 EBITDA 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 our operating performance. Investors should be aware that our presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The table below shows how we calculate Adjusted EBITDA. Period from October 2 Year Ended December 31, 2018 Year Ended December 31, 2017 through December 31, 2016 Other Thermal Corporate and Other Consolidated Segment Adjusted EBITDA PRB MET (In thousands) Net income Income tax (benefit) provision Interest expense, net Depreciation, depletion and amortization Accretion on asset retirement obligations Amortization of sales contracts, net Gain on sale of Lone Mountain Processing, Inc. Net loss resulting from early retirement of debt and debt restructuring Non-service related postretirement benefit costs Reorganization items, net Fresh start coal inventory fair value adjustment Adjusted EBITDA EBITDA from idled or otherwise disposed operations Selling, general and administrative expenses Other Reported segment Adjusted EBITDA from coal operations (In Thousands) Year Ended December 31, 2018 Year Ended December 31, 2017 October 2 through December 31, 2016 Since Emergence 312,577 238,450 33,449 126,525 158,882 55,765 349,524 243,616 30,819 68,620 102,006 31,159 (106,891) (84,807) (23,278) 437,778 419,697 94,465 (52,476) 13,689 119,563 27,970 11,107 - 485 3,202 1,661 - (35,255) 24,256 122,464 30,209 53,985 (21,297) 2,547 1,940 2,398 - 1,156 10,754 32,605 7,633 796 - - (32) 759 7,345 341,172 623,959 201,785 (214,976) 951,940 437,778 2,492 100,300 4,099 419,697 3,253 87,952 (6,398) 94,465 1,596 23,193 (1,511) 544,669 504,504 117,743
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