Segment Information | Segment Information The Company’s reportable business segments are based on two distinct lines of business, metallurgical and thermal, and may include a number of mine complexes. The Company manages its coal sales by market, not by individual mining complex. Geology, coal transportation routes to customers, and regulatory environments also have a significant impact on the Company’s marketing and operations management. Mining operations are evaluated based on Adjusted EBITDAR, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirement obligations, and pass-through transportation expenses), and on other non-financial measures, such as safety and environmental performance. Adjusted EBITDAR is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDAR are significant in understanding and assessing our financial condition. Therefore, Adjusted EBITDAR 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 EBITDAR 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 the Company’s operating performance. Investors should be aware that the Company’s presentation of Adjusted EBITDAR may not be comparable to similarly titled measures used by other companies. The Company reports its results of operations primarily through the following reportable segments: Powder River Basin (PRB) segment containing the Company’s primary thermal operations in Wyoming; the Metallurgical (MET) segment, containing the Company’s metallurgical operations in West Virginia, Kentucky, and Virginia, and the Other Thermal segment containing the Company’s supplementary thermal operations in Colorado, Illinois, and West Virginia. Periods presented in this note have been recast for comparability. Operating segment results for the Successor period, the three and six months ended June 30, 2017 , and the Predecessor period, the three and six months ended June 30, 2016 , are presented below. The Company measures its segments based on “adjusted earnings before interest, taxes, depreciation, depletion, amortization, accretion on asset retirements obligations, and reorganization items, net (Adjusted EBITDAR).” Adjusted EBITDAR does not reflect mine closure or impairment costs, since those are not reflected in the operating income reviewed by management. See Note 5 , “ Asset Impairment and Mine Closure Costs ” for discussion of these costs. The Corporate, Other and Eliminations grouping includes these charges, as well as the change in fair value of coal derivatives and coal trading activities, net; corporate overhead; land management activities; other support functions; and the elimination of intercompany transactions. PRB MET Other Thermal Corporate, Other and Eliminations Consolidated Successor Periods (in thousands) Three Months Ended June 30, 2017 Revenues $ 230,579 $ 227,649 $ 91,639 $ (1 ) $ 549,866 Adjusted EBITDAR 31,789 62,552 26,910 (25,883 ) 95,368 Depreciation, depletion and amortization 8,574 18,385 3,285 457 30,701 Accretion on asset retirement obligation 5,040 528 540 1,515 7,623 Capital expenditures 822 6,825 1,899 1,426 10,972 Six Months Ended June 30, 2017 Revenues $ 504,007 $ 453,232 $ 193,545 $ 57 $ 1,150,841 Adjusted EBITDAR 79,794 130,862 54,152 (48,942 ) 215,866 Depreciation, depletion and amortization 18,085 37,149 6,485 903 62,622 Accretion on asset retirement obligation 10,080 1,057 1,080 3,029 15,246 Capital expenditures 950 11,436 2,640 1,896 16,922 Predecessor Periods Three Months Ended June 30, 2016 Revenues $ 207,735 $ 147,499 $ 60,032 $ 5,032 $ 420,298 Adjusted EBITDAR 21,578 (3,593 ) (408 ) (17,887 ) (310 ) Depreciation, depletion and amortization 30,145 17,330 9,907 1,077 58,459 Accretion on asset retirement obligation 5,647 588 663 1,152 8,050 Capital expenditures 489 6,726 949 60,047 68,211 Six Months Ended June 30, 2016 Revenues $ 430,857 $ 284,083 $ 116,164 $ 17,300 $ 848,404 Adjusted EBITDAR 34,306 2,759 2,743 (41,838 ) (2,030 ) Depreciation, depletion and amortization 62,905 36,675 19,798 2,780 122,158 Accretion on asset retirement obligation 11,293 1,177 1,325 2,561 16,356 Capital expenditures 499 10,330 2,895 60,413 74,137 A reconciliation of adjusted EBITDAR to consolidated loss before income taxes follows: Successor Predecessor Successor Predecessor Three Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Adjusted EBITDAR $ 95,368 $ (310 ) $ 215,866 $ (2,030 ) Depreciation, depletion and amortization 30,701 58,459 62,622 122,158 Accretion on asset retirement obligations 7,623 8,050 15,246 16,356 Amortization of sales contracts, net 14,352 1 29,042 (832 ) Asset impairment and mine closure costs — 43,701 — 129,221 Interest expense, net (5,161 ) (44,340 ) (14,059 ) (87,653 ) Net loss resulting from early retirement of debt and debt restructuring (31 ) — (2,061 ) (2,213 ) Reorganization items, net (21 ) (21,271 ) (2,849 ) (25,146 ) Income (loss) before income taxes $ 37,479 $ (176,132 ) $ 89,987 $ (383,945 ) |