Cover Page
Cover Page - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-16463 | |
Entity Registrant Name | PEABODY ENERGY CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-4004153 | |
Entity Address, Address Line One | 701 Market Street, | |
Entity Address, City or Town | St. Louis, | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63101-1826 | |
City Area Code | 314 | |
Local Phone Number | 342-3400 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | BTU | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding | 98.3 | |
Entity Central Index Key | 0001064728 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 651.3 | $ 846.2 |
Costs and expenses | ||
Operating costs and expenses (exclusive of items shown separately below) | 582.6 | 779.5 |
Depreciation, depletion and amortization | 68.3 | 106 |
Asset retirement obligation expenses | 15.9 | 17.6 |
Selling and administrative expenses | 21.7 | 24.9 |
Restructuring charges | 2.1 | 6.5 |
Transaction costs related to joint ventures | 0 | 4.2 |
Other operating (income) loss: | ||
Net loss (gain) on disposals | 0.6 | (8.1) |
Loss from equity affiliates | 0.9 | 9.1 |
Operating loss | (40.8) | (93.5) |
Interest expense | 52.4 | 33.1 |
Gain on early debt extinguishment | (3.5) | 0 |
Interest income | (1.5) | (3.1) |
Net periodic benefit (credit) costs, excluding service cost | (8.7) | 2.8 |
Loss from continuing operations before income taxes | (79.5) | (126.3) |
Income tax (benefit) provision | (1.8) | 3 |
Loss from continuing operations, net of income taxes | (77.7) | (129.3) |
Loss from discontinued operations, net of income taxes | (2) | (2.2) |
Net loss | (79.7) | (131.5) |
Less: Net income (loss) attributable to noncontrolling interests | 0.4 | (1.8) |
Net loss attributable to common stockholders | $ (80.1) | $ (129.7) |
Loss from continuing operations: | ||
Basic loss per share | $ (0.79) | $ (1.31) |
Diluted loss per share | (0.79) | (1.31) |
Net loss attributable to common stockholders: | ||
Basic loss per share | (0.81) | (1.33) |
Diluted loss per share | $ (0.81) | $ (1.33) |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (79.7) | $ (131.5) |
Postretirement plans (net of $0.0 tax provisions in each period) | (11) | (2.2) |
Foreign currency translation adjustment | (0.2) | (6.8) |
Other comprehensive loss, net of income taxes | (11.2) | (9) |
Comprehensive loss | (90.9) | (140.5) |
Less: Net income (loss) attributable to noncontrolling interests | 0.4 | (1.8) |
Comprehensive loss attributable to common stockholders | $ (91.3) | $ (138.7) |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 580.2 | $ 709.2 |
Restricted cash | 43.5 | 0 |
Accounts receivable, net of allowance for credit losses of $0.0 at March 31, 2021 and December 31, 2020 | 167.8 | 244.8 |
Inventories | 241.4 | 261.6 |
Other current assets | 239.2 | 204.7 |
Total current assets | 1,272.1 | 1,420.3 |
Property, plant, equipment and mine development, net | 3,025.4 | 3,051.1 |
Operating lease right-of-use assets | 46.8 | 49.9 |
Investments and other assets | 142 | 140.9 |
Deferred income taxes | 0 | 4.9 |
Total assets | 4,486.3 | 4,667.1 |
Current liabilities | ||
Current portion of long-term debt | 69.4 | 44.9 |
Accounts payable and accrued expenses | 721.6 | 745.7 |
Total current liabilities | 791 | 790.6 |
Long-term debt, less current portion | 1,411.3 | 1,502.9 |
Deferred income taxes | 34.6 | 35 |
Asset retirement obligations | 658.6 | 650.5 |
Accrued postretirement benefit costs | 410.8 | 413.2 |
Operating lease liabilities, less current portion | 37.5 | 42.1 |
Other noncurrent liabilities | 251 | 251.5 |
Total liabilities | 3,594.8 | 3,685.8 |
Stockholders’ equity | ||
Additional paid-in capital | 3,366.4 | 3,364.6 |
Treasury stock, at cost — 42.9 and 42.7 common shares as of March 31, 2021 and December 31, 2020 | (1,369.5) | (1,368.9) |
Accumulated deficit | (1,353.4) | (1,273.3) |
Accumulated other comprehensive income | 194.6 | 205.8 |
Peabody Energy Corporation stockholders’ equity | 839.5 | 929.6 |
Noncontrolling interests | 52 | 51.7 |
Total stockholders’ equity | 891.5 | 981.3 |
Total liabilities and stockholders’ equity | $ 4,486.3 | $ 4,667.1 |
Treasury stock, shares (in shares) | 42,900,000 | 42,700,000 |
Preferred Stock | ||
Stockholders’ equity | ||
Preferred Stock — $0.01 per share par value; 100.0 shares authorized, no shares issued or outstanding as of March 31, 2021 and December 31, 2020 | $ 0 | $ 0 |
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Series Common Stock | ||
Stockholders’ equity | ||
Series Common Stock — $0.01 per share par value; 50.0 shares authorized, no shares issued or outstanding as of March 31, 2021 and December 31, 2020 | $ 0 | $ 0 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Common Stock | ||
Stockholders’ equity | ||
Series Common Stock — $0.01 per share par value; 50.0 shares authorized, no shares issued or outstanding as of March 31, 2021 and December 31, 2020 | $ 1.4 | $ 1.4 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 141,200,000 | 140,500,000 |
Common stock, shares outstanding (in shares) | 98,300,000 | 97,800,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Allowance for credit losses | $ 0 | $ 0 |
Stockholders' equity | ||
Treasury stock, shares (in shares) | 42,900,000 | 42,700,000 |
Preferred Stock | ||
Stockholders' equity | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Series Common Stock | ||
Stockholders' equity | ||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Common Stock | ||
Stockholders' equity | ||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 141,200,000 | 140,500,000 |
Common stock, shares outstanding (in shares) | 98,300,000 | 97,800,000 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows From Operating Activities | ||
Net loss | $ (79.7) | $ (131.5) |
Loss from discontinued operations, net of income taxes | 2 | 2.2 |
Loss from continuing operations, net of income taxes | (77.7) | (129.3) |
Adjustments to reconcile loss from continuing operations, net of income taxes to net cash provided by (used in) operating activities: | ||
Depreciation, depletion and amortization | 68.3 | 106 |
Noncash interest expense, net | 4.9 | 4 |
Noncash coal inventory revaluation | 5.5 | 0 |
Deferred income taxes | (0.4) | (3.4) |
Noncash share-based compensation | 1.8 | 2.2 |
Net loss (gain) on disposals | 0.6 | (8.1) |
Gain on early debt extinguishment | (3.5) | 0 |
Loss from equity affiliates | 0.9 | 9.1 |
Foreign currency option contracts | 2.9 | 0.9 |
Changes in current assets and liabilities: | ||
Accounts receivable | 77 | 64.2 |
Inventories | 14.8 | 62.4 |
Other current assets | 1.6 | 17.5 |
Accounts payable and accrued expenses | (15.4) | (125.1) |
Collateral arrangements | (5.3) | 0 |
Collateral arrangements | (5.3) | 0 |
Asset retirement obligations | 8.1 | 6.4 |
Workers’ compensation obligations | 0.6 | (0.8) |
Postretirement benefit obligations | (13.4) | (7.9) |
Pension obligations | 2.8 | 0.1 |
Other, net | 0 | 0.2 |
Net cash provided by (used in) continuing operations | 74.1 | (1.6) |
Net cash used in discontinued operations | (3.1) | (3.1) |
Net cash provided by (used in) operating activities | 71 | (4.7) |
Cash Flows From Investing Activities | ||
Additions to property, plant, equipment and mine development | (50.3) | (31.3) |
Changes in accrued expenses related to capital expenditures | (11.4) | (11.4) |
Proceeds from disposal of assets, net of receivables | 0.9 | 10.5 |
Contributions to joint ventures | (136.1) | (96.3) |
Distributions from joint ventures | 102.4 | 98.4 |
Advances to related parties | 0 | (6.9) |
Cash receipts from Middlemount Coal Pty Ltd | 2.3 | 0 |
Other, net | (1) | (0.1) |
Net cash used in investing activities | (93.2) | (37.1) |
Cash Flows From Financing Activities | ||
Repayments of long-term debt | (40.2) | (7.2) |
Payment of debt issuance and other deferred financing costs | (22.5) | 0 |
Repurchase of employee common stock relinquished for tax withholding | (0.6) | (0.8) |
Distributions to noncontrolling interests | (0.1) | (0.1) |
Proceeds from (Payments for) Other Financing Activities | 0.1 | 0.2 |
Net cash used in financing activities | (63.3) | (7.9) |
Net change in cash, cash equivalents and restricted cash | (85.5) | (49.7) |
Cash, cash equivalents and restricted cash at beginning of period | 709.2 | 732.2 |
Cash, cash equivalents and restricted cash at end of period | $ 623.7 | $ 682.5 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional paid-in capital | Treasury stock | (Accumulated deficit) retained earnings | Accumulated other comprehensive income | Noncontrolling interests |
Balance, beginning of period at Dec. 31, 2019 | $ 1.4 | $ 3,351.1 | $ (1,367.3) | $ 597 | $ 31.6 | $ 58.7 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation for equity-classified awards | 2.2 | ||||||
Net loss | $ (131.5) | (129.7) | (1.8) | ||||
Repurchase of employee common stock relinquished for tax withholding | 0.8 | (0.8) | |||||
Postretirement plans (net of $0.0 tax provisions in each period) | (2.2) | (2.2) | |||||
Foreign currency translation adjustment | (6.8) | (6.8) | |||||
Distributions to noncontrolling interests | (0.1) | ||||||
Balance, end of period at Mar. 31, 2020 | 2,533.3 | 1.4 | 3,353.3 | (1,368.1) | 467.3 | 22.6 | 56.8 |
Balance, beginning of period at Dec. 31, 2020 | 981.3 | 1.4 | 3,364.6 | (1,368.9) | (1,273.3) | 205.8 | 51.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation for equity-classified awards | 1.8 | ||||||
Net loss | (79.7) | (80.1) | 0.4 | ||||
Repurchase of employee common stock relinquished for tax withholding | 0.6 | (0.6) | |||||
Postretirement plans (net of $0.0 tax provisions in each period) | (11) | (11) | |||||
Foreign currency translation adjustment | (0.2) | (0.2) | |||||
Distributions to noncontrolling interests | (0.1) | ||||||
Balance, end of period at Mar. 31, 2021 | $ 891.5 | $ 1.4 | $ 3,366.4 | $ (1,369.5) | $ (1,353.4) | $ 194.6 | $ 52 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0 | $ 0 |
Accumulated other comprehensive income | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of Peabody Energy Corporation (PEC) and its consolidated subsidiaries and affiliates (along with PEC, the Company or Peabody). Interests in subsidiaries controlled by the Company are consolidated with any outside stockholder interests reflected as noncontrolling interests, except when the Company has an undivided interest in a joint venture. In those cases, the Company includes its proportionate share in the assets, liabilities, revenues and expenses of the jointly controlled entities within each applicable line item of the unaudited condensed consolidated financial statements. All intercompany transactions, profits and balances have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, these financial statements reflect all normal, recurring adjustments necessary for a fair presentation. Balance sheet information presented herein as of December 31, 2020 has been derived from the Company’s audited consolidated balance sheet at that date. The Company’s results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2021. |
Newly Adopted Accounting Standa
Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented | 3 Months Ended |
Mar. 31, 2021 | |
Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented [Abstract] | |
Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented | Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented Newly Adopted Accounting Standards Equity Method Investments. In January 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-01, which clarifies the interactions between Accounting Standards Codification (ASC) 321, ASC 323 and ASC 815. The new guidance addresses accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. ASU 2020-01 is effective on January 1, 2021 for calendar year-end public companies. The Company adopted the requirements effective January 1, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements or disclosures. Accounting Standards Not Yet Implemented Effects of Reference Rate Reform. In March 2020, ASU 2020-04 was issued, which provides optional guidance for a limited period of time to ease the potential burden on accounting for contract modifications caused by reference rate reform. This guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The guidance may be adopted over time as reference rate reform activities occur and should be applied on a prospective basis. In January 2021, the FASB issued ASU 2021-01 to permit entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements, and for calculation price alignment interest in connection with reference rate reform activities. The Company is still completing its evaluation of the impact of ASU 2020-04 and ASU 2021-01 and plans to elect optional expedients as reference rate reform activities occur. While the Company is still evaluating, it does not expect the guidance to have a material impact on its consolidated financial statements or disclosures. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition Refer to Note 1. “Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, for the Company’s policies regarding “Revenues” and “Accounts receivable, net.” Disaggregation of Revenues Revenue by product type and market is set forth in the following tables. With respect to its seaborne mining segments, the Company classifies as “Export” certain revenue from domestically-delivered coal under contracts in which the price is derived on a basis similar to export contracts. Three Months Ended March 31, 2021 Seaborne Thermal Mining Seaborne Metallurgical Mining Powder River Basin Mining Other U.S. Thermal Mining Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 44.1 $ — $ 228.4 $ 146.8 $ — $ 419.3 Export 131.9 — — — — 131.9 Total thermal 176.0 — 228.4 146.8 — 551.2 Metallurgical coal Domestic — 2.7 — — — 2.7 Export — 83.9 — — — 83.9 Total metallurgical — 86.6 — — — 86.6 Other (2) 0.4 0.9 — 2.5 9.7 13.5 Revenues $ 176.4 $ 87.5 $ 228.4 $ 149.3 $ 9.7 $ 651.3 Three Months Ended March 31, 2020 Seaborne Thermal Mining Seaborne Metallurgical Mining Powder River Basin Mining Other U.S. Thermal Mining Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 36.5 $ — $ 266.6 $ 184.6 $ — $ 487.7 Export 163.7 — — — — 163.7 Total thermal 200.2 — 266.6 184.6 — 651.4 Metallurgical coal Export — 192.5 — — — 192.5 Total metallurgical — 192.5 — — — 192.5 Other (2) 0.9 0.7 — 7.7 (7.0) 2.3 Revenues $ 201.1 $ 193.2 $ 266.6 $ 192.3 $ (7.0) $ 846.2 (1) Corporate and Other revenue includes gains and losses related to mark-to-market adjustments from economic hedge activities intended to hedge future coal sales. Refer to Note 7. “Derivatives and Fair Value Measurements” for additional information regarding the economic hedge activities. (2) Other includes revenues from arrangements such as customer contract-related payments associated with volume shortfalls, royalties related to coal lease agreements, sales agency commissions, farm income and property and facility rentals. Committed Revenue from Contracts with Customers The Company expects to recognize revenue subsequent to March 31, 2021 of approximately $3.6 billion related to contracts with customers in which volumes and prices per ton were fixed or reasonably estimable at March 31, 2021. Approximately 45% of such amount is expected to be recognized over the next twelve months and the remainder thereafter. Actual revenue related to such contracts may differ materially for various reasons, including price adjustment features for coal quality and cost escalations, volume optionality provisions and potential force majeure events. This estimate of future revenue does not include any revenue related to contracts with variable prices per ton that cannot be reasonably estimated, such as the majority of seaborne metallurgical and seaborne thermal coal contracts where pricing is negotiated or settled quarterly or annually. Accounts Receivable “Accounts receivable, net” at March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 (Dollars in millions) Trade receivables, net $ 131.2 $ 180.9 Miscellaneous receivables, net 36.6 63.9 Accounts receivable, net $ 167.8 $ 244.8 |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Discontinued operations include certain former Seaborne Thermal Mining and Other U.S. Thermal Mining segment assets that have ceased production and other previously divested legacy operations, including Patriot Coal Corporation and certain of its wholly-owned subsidiaries (Patriot). Summarized Results of Discontinued Operations Results from discontinued operations were as follows during the periods presented below: Three Months Ended March 31, 2021 2020 (Dollars in millions) Loss from discontinued operations, net of income taxes $ (2.0) $ (2.2) Liabilities of Discontinued Operations Liabilities classified as discontinued operations included in the Company’s condensed consolidated balance sheets were as follows: March 31, 2021 December 31, 2020 (Dollars in millions) Liabilities: Accounts payable and accrued expenses $ 62.8 $ 62.3 Other noncurrent liabilities 85.0 91.4 Total liabilities classified as discontinued operations $ 147.8 $ 153.7 Patriot-Related Matters A significant portion of the liabilities in the table above relate to Patriot. In 2012, Patriot filed voluntary petitions for relief under Chapter 11 of Title 11 of the U.S. Code (the Bankruptcy Code). In 2013, the Company entered into a definitive settlement agreement (2013 Agreement) with Patriot and the United Mine Workers of America (UMWA), on behalf of itself, its represented Patriot employees and its represented Patriot retirees, to resolve all then-disputed issues related to Patriot’s bankruptcy. In May 2015, Patriot again filed voluntary petitions for relief under the Bankruptcy Code in the U.S. District Court for the Eastern District of Virginia and subsequently initiated a process to sell substantially all of its assets to qualified bidders. On October 9, 2015, Patriot’s bankruptcy court entered an order confirming Patriot’s plan of reorganization, which provided, among other things, for the sale of substantially all of Patriot’s assets to two different buyers. Black Lung Occupational Disease Liabilities. Patriot had federal and state black lung occupational disease liabilities related to workers employed in periods prior to Patriot’s spin-off from the Company in 2007. Upon spin-off, Patriot indemnified the Company against any claim relating to these liabilities, which amounted to approximately $150 million at that time. The indemnification included any claim made by the U.S. Department of Labor (DOL) against the Company with respect to these obligations as a potentially liable operator under the Federal Coal Mine Health and Safety Act of 1969. The 2013 Agreement included Patriot’s affirmance of indemnities provided in the spin-off agreements, including the indemnity relating to such black lung liabilities; however, Patriot rejected this indemnity in its May 2015 bankruptcy. By statute, the Company had secondary liability for the black lung liabilities related to Patriot’s workers employed by former subsidiaries of the Company. The Company’s accounting for the black lung liabilities related to Patriot is based on an interpretation of applicable statutes. Management believes that inconsistencies exist among the applicable statutes, regulations promulgated under those statutes and the DOL’s interpretative guidance. The Company has sought clarification from the DOL regarding these inconsistencies. The amount of these liabilities could be reduced in the future. Whether the Company will ultimately be required to fund certain of those obligations in the future as a result of Patriot’s May 2015 bankruptcy remains uncertain. The amount of the liability, which was determined on an actuarial basis based on the best information available to the Company, was $89.8 million and $90.1 million at March 31, 2021 and December 31, 2020, respectively. While the Company has recorded a liability, it intends to review each claim on a case-by-case basis and contest liability estimates as appropriate. The amount of the Company’s recorded liability reflects only Patriot workers employed by former subsidiaries of the Company that are presently retired, disabled or otherwise not actively employed. The Company cannot reliably estimate the potential liabilities for Patriot’s workers employed by former subsidiaries of the Company that are presently active in the workforce because of the potential for such workers to continue to work for another coal operator that is a going concern. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 (Dollars in millions) Materials and supplies $ 104.3 $ 102.6 Raw coal 52.4 70.5 Saleable coal 84.7 88.5 Total $ 241.4 $ 261.6 Materials and supplies inventories presented above have been shown net of reserves of $10.5 million and $10.4 million as of March 31, 2021 and December 31, 2020, respectively. The coal inventory balances above are presented net of net realizable value adjustments of $5.5 million as of March 31, 2021. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Method Investments | Equity Method Investments The Company had total equity method investments of $21.2 million and $24.6 million reflected in “Investments and other assets” in the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020, respectively, related to Middlemount Coal Pty Ltd (Middlemount). Included in “Loss from equity affiliates” in the unaudited condensed consolidated statements of operations were losses related to Middlemount of $0.9 million and $9.1 million during the three months ended March 31, 2021 and 2020, respectively. The Company received cash payments from Middlemount of $2.3 million during the three months ended March 31, 2021. No payments were received from from Middlemount during the three months ended March 31, 2020. One of the Company’s Australian subsidiaries and the other shareholder of Middlemount are parties to an agreement, as amended from time to time, to provide a revolving loan (Revolving Loans) to Middlemount. The Company’s participation in the Revolving Loans will not, at any time, exceed its 50% equity interest of the revolving loan limit. At March 31, 2021, the revolving loan limit was $160 million Australian dolla rs and the Revolving Loans were not fully drawn upon by Middlemount. The Revolving Loans bear interest at 10% per annum and expire on December 31, 2021. T he value of the portion of the Revolving Loans due to the Company’s Australian subsidiary was $43.3 million and $46.2 million as of March 31, 2021 and December 31, 2020, respectively, with the decreas e during the three months ended March 31, 2021 primarily attributable to payments made by Middlemount. As of both March 31, 2021 and December 31, 2020, the financing receivables and Revolving Loans are accounted for as in-substance common stock due to the limited fair value attributed to Middlemount’s equi |
Derivatives and Fair Value Meas
Derivatives and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Derivatives and Fair Value Measurements | Derivatives and Fair Value Measurements Derivatives Corporate Risk Management Activities From time to time, the Company may utilize various types of derivative instruments to manage its exposure to risks in the normal course of business, including (1) foreign currency exchange rate risk and the variability of cash flows associated with forecasted Australian dollar expenditures made in its Australian mining platform, (2) price risk of fluctuating coal prices related to forecasted sales or purchases of coal, or changes in the fair value of a fixed price physical sales contract, (3) price risk and the variability of cash flows related to forecasted diesel fuel purchased for use in its operations and (4) interest rate risk on long-term debt. These risk management activities are actively monitored for compliance with the Company’s risk management policies. As of March 31, 2021, the Company had currency options outstanding with an aggregate notional amount of $575.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar expenditures over the nine-month period ending December 31, 2021. The instruments are quarterly average rate options which entitle the Company to receive payment on the notional amount should the quarterly average Australian dollar-to-U.S. dollar exchange rate exceed amounts ranging from $0.76 to $0.81 over the nine-month period ending December 31, 2021. As of March 31, 2021, the Company held coal-related financial contracts related to a portion of its forecasted sales for an aggregate notional volume of 1.5 million tonnes. Such financial contracts include futures, forwards and options. Of the aggregate notional volume, 0.5 million tonnes will settle in 2021 and the remainder will settle in 2022. The Company had no diesel fuel or interest rate derivatives in place as of March 31, 2021. Coal Trading Activities On a limited basis, the Company engages in the direct and brokered trading of coal and freight-related contracts (coal trading). Except those contracts for which the Company has elected to apply a normal purchases and normal sales exception, all derivative coal trading contracts are accounted for at fair value. Tabular Derivatives Disclosures The Company has master netting agreements with certain of its counterparties which allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. Such netting arrangements reduce the Company’s credit exposure related to these counterparties. For classification purposes, the Company records the net fair value of all the positions with a given counterparty as a net asset or liability in the condensed consolidated balance sheets. The fair value of derivatives reflected in the accompanying condensed consolidated balance sheets are set forth in the table below. March 31, 2021 December 31, 2020 Asset Derivative Liability Derivative Asset Derivative Liability Derivative (Dollars in millions) Foreign currency option contracts $ 2.7 $ — $ 10.3 $ — Coal contracts related to forecasted sales 1.1 (8.6) 0.9 (8.8) Coal trading contracts 30.4 (35.5) 23.4 (23.1) Total derivatives 34.2 (44.1) 34.6 (31.9) Effect of counterparty netting (44.1) 44.1 (30.2) 30.2 Variation margin posted 13.6 — 6.5 — Net derivatives and margin as classified in the balance sheets $ 3.7 $ — $ 10.9 $ (1.7) The net amount of asset derivatives, net of margin, are included in “Other current assets” and the net amount of liability derivatives, net of margin, are included in “Accounts payable and accrued expenses” in the accompanying condensed consolidated balance sheets. The Company had a current asset representing cash collateral held as initial margin for derivative positions primarily related to coal derivatives of $6.5 million and $3.0 million at March 31, 2021 and December 31, 2020, respectively. These amounts are not included with the derivatives presented in the table above and are included in “Other current assets” in the accompanying condensed consolidated balance sheets. Currently, the Company does not seek cash flow hedge accounting treatment for its currency- or coal-related derivative financial instruments and thus changes in fair value are reflected in current earnings. The tables below show the amounts of pre-tax gains and losses related to the Company’s derivatives. Three Months Ended March 31, 2021 Total (loss) gain recognized in income Gain realized in income on derivatives Unrealized loss recognized in income on derivatives Financial Instrument (Dollars in millions) Foreign currency option contracts $ (2.9) $ 4.7 $ (7.6) Coal contracts related to forecasted sales 8.2 10.0 (1.8) Coal trading contracts (0.7) 2.4 (3.1) Total $ 4.6 $ 17.1 $ (12.5) Three Months Ended March 31, 2020 Total loss recognized in income (Loss) gain realized in income on derivatives Unrealized gain (loss) recognized in income on derivatives Financial Instrument (Dollars in millions) Foreign currency option contracts $ (0.9) $ (1.0) $ 0.1 Coal contracts related to forecasted sales (8.6) (6.4) (2.2) Coal trading contracts (0.1) 4.1 (4.2) Total $ (9.6) $ (3.3) $ (6.3) During the three months ended March 31, 2021 and 2020, gains and losses on foreign currency option contracts were included in “Operating costs and expenses,” and gains and losses on coal contracts related to forecasted sales and those related to coal trading contracts were included in “Revenues” in the accompanying unaudited condensed consolidated statements of operations. The Company classifies the cash effects of its derivatives within the “Cash Flows From Operating Activities” section of the unaudited condensed consolidated statements of cash flows. Fair Value Measurements The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the observability of the inputs utilized in the valuation. These levels include: Level 1 - inputs are quoted prices in active markets for the identical assets or liabilities; Level 2 - inputs are other than quoted prices included in Level 1 that are directly or indirectly observable through market-corroborated inputs; and Level 3 - inputs are unobservable, or observable but cannot be market-corroborated, requiring the Company to make assumptions about pricing by market participants. The following tables set forth the hierarchy of the Company’s net financial asset positions for which fair value is measured on a recurring basis: March 31, 2021 Level 1 Level 2 Level 3 Total (Dollars in millions) Foreign currency option contracts $ — $ 2.7 $ — $ 2.7 Coal contracts related to forecasted sales — (7.5) — (7.5) Coal trading contracts — 8.5 — 8.5 Equity securities — — 4.0 4.0 Total net financial assets $ — $ 3.7 $ 4.0 $ 7.7 December 31, 2020 Level 1 Level 2 Level 3 Total (Dollars in millions) Foreign currency option contracts $ — $ 10.3 $ — $ 10.3 Coal contracts related to forecasted sales — (7.9) — (7.9) Coal trading contracts — 6.8 — 6.8 Equity securities — — 4.0 4.0 Total net financial assets $ — $ 9.2 $ 4.0 $ 13.2 For Level 1 and 2 financial assets and liabilities, the Company utilizes both direct and indirect observable price quotes, including interest rate yield curves, exchange indices, broker/dealer quotes, published indices, issuer spreads, benchmark securities and other market quotes. In the case of certain debt securities, fair value is provided by a third-party pricing service. Below is a summary of the Company’s valuation techniques for Level 1 and 2 financial assets and liabilities: • Foreign currency option contracts are valued utilizing inputs obtained in quoted public markets (Level 2) except when credit and non-performance risk is considered to be a significant input, then the Company classifies such contracts as Level 3. • Coal contracts related to forecasted sales and coal trading contracts are generally valued based on unadjusted quoted prices in active markets (Level 1) or a valuation that is corroborated by the use of market-based pricing (Level 2) except when credit and non-performance risk is considered to be a significant input (greater than 10% of fair value), then the Company classifies as Level 3. • Investments in equity securities are based on observed prices in an inactive market (Level 3). Other Financial Instruments . The following methods and assumptions were used by the Company in estimating fair values for other financial instruments as of March 31, 2021 and December 31, 2020: • Cash and cash equivalents, restricted cash, accounts receivable, including those within the Company’s accounts receivable securitization program, notes receivable and accounts payable have carrying values which approximate fair value due to the short maturity or the liquid nature of these instruments. • Long-term debt fair value estimates are based on observed prices for securities when available (Level 2), and otherwise on estimated borrowing rates to discount the cash flows to their present value (Level 3). Market risk associated with the Company’s fixed- and variable-rate long-term debt relates to the potential reduction in the fair value and negative impact to future earnings, respectively, from an increase in interest rates. The fair value of debt, shown below, is principally based on reported market values and estimates based on interest rates, maturities, credit risk, underlying collateral and completed market transactions, which have been limited in recent history. March 31, 2021 December 31, 2020 (Dollars in millions) Total debt at par value $ 1,538.2 $ 1,591.3 Less: Unamortized debt issuance costs and original issue discount (57.5) (43.5) Net carrying amount $ 1,480.7 $ 1,547.8 Estimated fair value $ 862.1 $ 987.6 The Company’s risk management function, which is independent of the Company’s coal trading function, is responsible for valuation policies and procedures, with oversight from executive management. The fair value of the Company’s coal derivative assets and liabilities reflects adjustments for credit risk. The Company’s exposure is substantially with electric utilities, energy marketers, steel producers and nonfinancial trading houses. The Company had no transfers between Levels 1, 2 and 3 during the three months ended March 31, 2021 and 2020. The Company’s policy is to value all transfers between levels using the beginning of period valuation. |
Property, Plant, Equipment and
Property, Plant, Equipment and Mine Development | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, Equipment and Mine Development | Property, Plant, Equipment and Mine Development The composition of property, plant, equipment and mine development, net, as of March 31, 2021 and December 31, 2020 is set forth in the table below: March 31, 2021 December 31, 2020 (Dollars in millions) Land and coal interests $ 2,484.1 $ 2,482.9 Buildings and improvements 484.7 481.0 Machinery and equipment 1,442.5 1,408.5 Less: Accumulated depreciation, depletion and amortization (1,385.9) (1,321.3) Property, plant, equipment and mine development, net $ 3,025.4 $ 3,051.1 Asset Impairment and Other At-Risk Assets The Company has identified certain assets with an aggregate carrying value of approximately $1.2 billion at March 31, 2021 in its Seaborne Metallurgical Mining, Powder River Basin Mining, Other U.S. Thermal Mining and Corporate and Other segments whose recoverability is most sensitive to coal pricing, cost pressures, customer demand, customer concentration risk and future economic viability. The Company conducted a review of those assets for recoverability as of March 31, 2021 and determined that no impairment charges were necessary as of that date. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company has operating and finance leases for mining and non-mining equipment, office space and certain other facilities under various non-cancellable agreements. Historically, the majority of the Company’s leases have been accounted for as operating leases. Refer to Note 1. “Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, for the Company’s policies regarding “Leases.” The Company and certain of its subsidiaries have guaranteed other subsidiaries’ performance under various lease obligations. Certain lease agreements are subject to the restrictive covenants of the Company’s credit facilities and include cross-acceleration provisions, under which the lessor could require remedies including, but not limited to, immediate recovery of the present value of any remaining lease payments. The Company typically agrees to indemnify lessors for the value of the property or equipment leased, should the property be damaged or lost during the course of the Company’s operations. The Company expects that losses with respect to leased property, if any, may be covered by insurance (subject to deductibles). Aside from indemnification of the lessor for the value of the property leased, the Company’s maximum potential obligations under its leases are equal to the respective future minimum lease payments, and the Company assumes that no amounts could be recovered from third parties. The components of lease expense during the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 (Dollars in millions) Operating lease cost: Operating lease cost $ 6.0 $ 8.6 Short-term lease cost 3.4 9.9 Variable lease cost 0.5 1.0 Sublease income (0.5) — Total operating lease cost $ 9.4 $ 19.5 Finance lease cost: Amortization of right-of-use assets $ 0.6 $ 3.4 Interest on lease liabilities 0.5 0.2 Total finance lease cost $ 1.1 $ 3.6 Supplemental balance sheet information related to leases at March 31, 2021 and December 31, 2020 was as follows: March 31, 2021 December 31, 2020 (Dollars in millions) Operating leases: Operating lease right-of-use assets $ 46.8 $ 49.9 Accounts payable and accrued expenses $ 21.1 $ 24.5 Operating lease liabilities, less current portion 37.5 42.1 Total operating lease liabilities $ 58.6 $ 66.6 Finance leases: Property, plant, equipment and mine development $ 13.8 $ 20.4 Accumulated depreciation (3.1) (2.5) Property, plant, equipment and mine development, net $ 10.7 $ 17.9 Current portion of long-term debt $ 5.9 $ 21.5 Long-term debt, less current portion 11.4 5.8 Total finance lease liabilities $ 17.3 $ 27.3 Weighted average remaining lease term (years) Operating leases 3.4 Finance leases 8.2 Weighted average discount rate Operating leases 6.7 % Finance leases 10.1 % Supplemental cash flow information related to leases during the three months ended March 31, 2021 and 2020 was as follows: Three Months Ended March 31, 2021 2020 (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 8.3 $ 12.8 Operating cash flows for finance leases 0.7 0.2 Financing cash flows for finance leases 1.3 5.8 Right-of-use assets obtained in exchange for lease obligations: Operating leases 3.1 1.3 Finance leases 3.6 0.1 The Company's leases have remaining lease terms ranging from less than 1 year to 21.0 years years, some of which include options to extend the terms deemed reasonably certain of exercise. The contractual maturities of lease liabilities were as follows: Period Ending December 31, Operating Leases Finance Leases (Dollars in millions) 2021 $ 17.5 $ 5.6 2022 18.6 7.1 2023 16.7 1.6 2024 6.0 0.7 2025 3.4 0.5 2026 and thereafter 3.8 7.7 Total lease payments 66.0 23.2 Less imputed interest (7.4) (5.9) Total lease liabilities $ 58.6 $ 17.3 |
Leases | Leases The Company has operating and finance leases for mining and non-mining equipment, office space and certain other facilities under various non-cancellable agreements. Historically, the majority of the Company’s leases have been accounted for as operating leases. Refer to Note 1. “Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, for the Company’s policies regarding “Leases.” The Company and certain of its subsidiaries have guaranteed other subsidiaries’ performance under various lease obligations. Certain lease agreements are subject to the restrictive covenants of the Company’s credit facilities and include cross-acceleration provisions, under which the lessor could require remedies including, but not limited to, immediate recovery of the present value of any remaining lease payments. The Company typically agrees to indemnify lessors for the value of the property or equipment leased, should the property be damaged or lost during the course of the Company’s operations. The Company expects that losses with respect to leased property, if any, may be covered by insurance (subject to deductibles). Aside from indemnification of the lessor for the value of the property leased, the Company’s maximum potential obligations under its leases are equal to the respective future minimum lease payments, and the Company assumes that no amounts could be recovered from third parties. The components of lease expense during the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 (Dollars in millions) Operating lease cost: Operating lease cost $ 6.0 $ 8.6 Short-term lease cost 3.4 9.9 Variable lease cost 0.5 1.0 Sublease income (0.5) — Total operating lease cost $ 9.4 $ 19.5 Finance lease cost: Amortization of right-of-use assets $ 0.6 $ 3.4 Interest on lease liabilities 0.5 0.2 Total finance lease cost $ 1.1 $ 3.6 Supplemental balance sheet information related to leases at March 31, 2021 and December 31, 2020 was as follows: March 31, 2021 December 31, 2020 (Dollars in millions) Operating leases: Operating lease right-of-use assets $ 46.8 $ 49.9 Accounts payable and accrued expenses $ 21.1 $ 24.5 Operating lease liabilities, less current portion 37.5 42.1 Total operating lease liabilities $ 58.6 $ 66.6 Finance leases: Property, plant, equipment and mine development $ 13.8 $ 20.4 Accumulated depreciation (3.1) (2.5) Property, plant, equipment and mine development, net $ 10.7 $ 17.9 Current portion of long-term debt $ 5.9 $ 21.5 Long-term debt, less current portion 11.4 5.8 Total finance lease liabilities $ 17.3 $ 27.3 Weighted average remaining lease term (years) Operating leases 3.4 Finance leases 8.2 Weighted average discount rate Operating leases 6.7 % Finance leases 10.1 % Supplemental cash flow information related to leases during the three months ended March 31, 2021 and 2020 was as follows: Three Months Ended March 31, 2021 2020 (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 8.3 $ 12.8 Operating cash flows for finance leases 0.7 0.2 Financing cash flows for finance leases 1.3 5.8 Right-of-use assets obtained in exchange for lease obligations: Operating leases 3.1 1.3 Finance leases 3.6 0.1 The Company's leases have remaining lease terms ranging from less than 1 year to 21.0 years years, some of which include options to extend the terms deemed reasonably certain of exercise. The contractual maturities of lease liabilities were as follows: Period Ending December 31, Operating Leases Finance Leases (Dollars in millions) 2021 $ 17.5 $ 5.6 2022 18.6 7.1 2023 16.7 1.6 2024 6.0 0.7 2025 3.4 0.5 2026 and thereafter 3.8 7.7 Total lease payments 66.0 23.2 Less imputed interest (7.4) (5.9) Total lease liabilities $ 58.6 $ 17.3 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The Company's effective tax rate before remeasurement for the three months ended March 31, 2021 is based on the Company’s estimated full year effective tax rate, comprised of expected statutory tax provision, offset by foreign rate differential and changes in valuation allowance. The Company’s income tax benefit of $1.8 million and income tax provision of $3.0 million for the three months ended March 31, 2021 and 2020, respectively, included tax benefits of $0.2 million and $3.3 million, respectively, related to the remeasurement of foreign income tax accounts. As described in Note 11. “Long-term Debt,” the Company completed the Refinancing Transactions (as defined below), which included a senior notes exchange and related consent solicitation, a revolving credit facility exchange and various amendments to existing debt agreements. Generally, absent an exception, for U.S. tax purposes a debtor recognizes cancellation of debt income (CODI) upon discharge of its outstanding indebtedness for an amount of consideration less than the adjusted issue price of such indebtedness. The Company will recognize CODI from the Refinancing Transactions of approximately $60 million, and the income will be offset by the Company’s operating losses. |
Long-term Debt
Long-term Debt | 48 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt The Company’s total funded indebtedness (Indebtedness) as of March 31, 2021 and December 31, 2020 consisted of the following: Debt Instrument (defined below, as applicable) March 31, 2021 December 31, 2020 (Dollars in millions) 6.000% Senior Secured Notes due March 2022 (2022 Notes) $ 60.3 $ 459.0 8.500% Senior Secured Notes due December 2024 (Peabody Notes) 172.7 — 10.000% Senior Secured Notes due December 2024 (Co-Issuer Notes) 193.9 — 6.375% Senior Secured Notes due March 2025 (2025 Notes) 500.0 500.0 Senior Secured Term Loan due 2024 (Co-Issuer Term Loan) 206.0 — Senior Secured Term Loan due 2025, net of original issue discount (Senior Secured Term Loan) 387.3 388.2 Revolving credit facility — 216.0 Finance lease obligations 17.3 27.3 Less: Debt issuance costs (56.8) (42.7) 1,480.7 1,547.8 Less: Current portion of long-term debt 69.4 44.9 Long-term debt $ 1,411.3 $ 1,502.9 Refinancing Transactions On January 29, 2021 (the Settlement Date), the Company completed a series of transactions (collectively, the Refinancing Transactions) to, among other things, provide the Company with maturity extensions and covenant relief, while allowing it to maintain near-term operating liquidity and financial flexibility. The Refinancing Transactions included a senior notes exchange and related consent solicitation, a revolving credit facility exchange and various amendments to the Company’s existing debt agreements, as summarized below. As further discussed in Note 16. “Financial Instruments and Other Guarantees,” upon completion of the Refinancing Transactions, the surety transaction support agreement (Surety Agreement) entered into with the Company’s surety bond providers in November 2020 became effective. On the Settlement Date, the Company settled an exchange offer (Exchange Offer) pursuant to which $398.7 million aggregate principal amount of the Company’s 6.000% Senior Secured Notes due March 2022 (the 2022 Notes) were validly tendered, accepted by the Company and exchanged for aggregate consideration consisting of (a) $193.9 million aggregate principal amount of new 10.000% Senior Secured Notes due December 2024 (Co-Issuer Notes) issued by certain wholly-owned subsidiaries of the Company (the Co-Issuers), (b) $195.1 million aggregate principal amount of new 8.500% Senior Secured Notes due December 2024 issued by the Company (Peabody Notes) and (c) a cash payment of approximately $9.4 million. In connection with the settlement of the Exchange Offer, the Company also paid early tender premiums totaling $4.0 million in cash. The Company’s Wilpinjong Mine in Australia is owned and operated by a subsidiary of the Co-Issuers. The Exchange Offer was accounted for as a debt modification based upon the relative similarity of the present value of the future cash flows of the instruments. As such, no gain or loss was recorded in connection with the Exchange Offer. Fees paid to third parties of $10.6 million were included in “Interest expense” in the accompanying unaudited condensed consolidated statements of operations during the three months ended March 31, 2021. Following the settlement of the Exchange Offer, approximately $60.3 million aggregate principal amount of the 2022 Notes remain outstanding and are governed by the existing senior notes’ indenture (the Existing Indenture), as amended by the supplemental indenture described below. Concurrently with the Exchange Offer, the Company solicited consents from holders of the 2022 Notes to certain proposed amendments to its Existing Indenture to (i) eliminate substantially all of the restrictive covenants, certain events of default applicable to the 2022 Notes and certain other provisions contained in the Existing Indenture and (ii) release the collateral securing the 2022 Notes and eliminate certain other related provisions contained in the Existing Indenture. The Company received the requisite consents from holders of the 2022 Notes and entered into a supplemental indenture to the Existing Indenture, which became operative on January 29, 2021. In connection with the Refinancing Transactions, the Company restructured the revolving loans under its existing credit agreement (the Credit Agreement) by (i) making a pay down of revolving loans thereunder in the aggregate amount of $10.0 million, (ii) the Co-Issuers incurring $206.0 million of term loans under a credit agreement, dated as of the Settlement Date (Co-Issuer Term Loans, Co-Issuer Term Loan Agreement), (iii) the Company entering into a letter of credit facility (the Company LC Agreement) and (iv) amending the Credit Agreement (collectively, the Revolver Transactions). Co-Issuer Notes The terms of the Co-Issuer Notes are governed by an indenture, as amended and restated as of February 3, 2021, by and among the Co-Issuers, Wilmington Trust, National Association, as trustee, and, on a limited basis, the Company (Co-Issuer Notes Indenture). The Co-Issuer Notes mature on December 31, 2024 and bear interest at an annual rate of 10.000%. The Company paid aggregate debt issuance costs of $5.6 million, which are being amortized over the terms of the notes. Beginning March 31, 2021, interest is payable on March 31, June 30, September 30 and December 31 of each year. During the three months ended March 31, 2021, the Company recorded interest expense of $3.6 million related to the Co-Issuer Notes. The Co-Issuer Notes are subject to amortization at the end of each six-month period, beginning with June 30, 2021, whereby the Excess Cash Flow (as defined in the Co-Issuer Notes Indenture) generated by the Wilpinjong Mine during each such period will be applied to the principal of the Co-Issuer Notes and the Co-Issuer Term Loans on a pro rata basis, provided that the liquidity attributable to the Co-Issuers would not fall below $60.0 million. The Co-Issuer Notes Indenture contains customary covenants that, among other things, limit the Co-Issuers’ and their subsidiaries’ ability to incur additional Indebtedness, pay dividends on or make distributions in respect of capital stock or make certain other restricted payments or investments, enter into agreements that restrict distributions from subsidiaries, sell or otherwise dispose of assets, enter into transactions with affiliates, create or incur liens, and merge, consolidate or sell all or substantially all of their assets, and place restrictions on the ability of subsidiaries to pay dividends or make other payments to the Co-Issuers. The Co-Issuer Notes are not guaranteed by any of the Co-Issuers’ subsidiaries and thus are structurally subordinated to any existing or future Indebtedness or other liabilities, including trade payables, of any such subsidiaries. The Co-Issuer Notes initially are secured by liens on substantially all of the assets of the Co-Issuers, including by (i) 100% of the capital stock of PIC Acquisition Corp. owned by PIC AU Holdings LLC and (ii) all other property subject or purported to be subject, from time to time, to a lien under the Co-Issuers’ collateral trust agreement (collectively, the Wilpinjong Collateral). The Co-Issuers may redeem some or all of the Co-Issuer Notes at the redemption prices and on the terms specified in the Co-Issuer Notes Indenture. The Co-Issuer Notes Indenture contains certain events of default, including, in certain circumstances, (i) specified events occurring at the Wilpinjong Mine, (ii) the termination or modification of the Surety Agreement, (iii) the Company’s failure to comply with any obligation under the transaction support agreement entered into prior to, and in contemplation of, the Refinancing Transactions and (iv) the termination of the management services agreements between the Company and the Co-Issuers. If the Co-Issuer Notes are accelerated or otherwise become due and payable as a result of an event of default, certain additional premium amounts may become due and payable in addition to unpaid principal and interest at the time of acceleration. In addition, the holders of the Co-Issuer Notes have the right, under certain circumstances specified in the Co-Issuer Notes Indenture, to exchange their Co-Issuer Notes for Peabody Notes. Peabody Notes The terms of the Peabody Notes are governed by an indenture, as amended and restated as of February 3, 2021, by and among Peabody, the guarantors party thereto, and Wilmington Trust, National Association, as trustee (the Peabody Notes Indenture). The Peabody Notes mature on December 31, 2024. The Company paid aggregate debt issuance costs of $5.7 million, which are being amortized over the terms of the notes. The Peabody Notes bear interest at an annual rate of 8.500%, consisting of 6.000% per annum in cash and an additional 2.500% per annum to be paid-in-kind through an increase of the principal amount of the outstanding Peabody Notes, which is payable on June 30 and December 31 of each year, commencing on June 30, 2021. During the three months ended March 31, 2021, the Company recorded interest expense of $3.1 million related to the Peabody Notes, which included approximately $0.8 million of in-kind interest. As a requirement of the Exchange Offer, during the three months ended March 31, 2021, the Company purchased $22.4 million of the Peabody Notes at 80% of their accreted value, plus accrued and unpaid interest. In connection with the purchases, the Company recognized a net gain of $3.5 million to “Gain on early debt extinguishment.” The notes were subsequently canceled. The Peabody Notes Indenture contains customary covenants that, among other things, limit the Company’s and its restricted subsidiaries’ ability to incur additional Indebtedness, pay dividends on or make distributions in respect of capital stock or make certain other restricted payments or investments, enter into agreements that restrict distributions from restricted subsidiaries, sell or otherwise dispose of assets, enter into transactions with affiliates, create or incur liens, and merge, consolidate or sell all or substantially all of its assets, and place restrictions on the ability of subsidiaries to pay dividends or make other payments to the Company. The Peabody Notes are unconditionally guaranteed, jointly and severally, on a senior secured basis by the Peabody Guarantors (as defined below) on the Peabody Collateral (as defined below). The obligations are secured on a pari passu basis by the same collateral that secures the 6.375% senior secured notes due 2025 (the 2025 Notes), the Credit Agreement and the Company LC Agreement described below. Co-Issuer Term Loans The Co-Issuer Term Loans mature on December 31, 2024 and bear interest at a rate of 10.00% per annum. The Company paid aggregate debt issuance costs of $7.1 million, that are being amortized over its term. During the three months ended March 31, 2021, the Company recorded interest expense of $3.7 million related to the Co-Issuer Term Loans. The Co-Issuer Term Loan Agreement contains customary covenants that, among other things, limit the Co-Issuers’ and their subsidiaries’ ability to incur additional Indebtedness, pay dividends on or make distributions in respect of capital stock or make certain other restricted payments or investments, enter into agreements that restrict distributions from subsidiaries, sell or otherwise dispose of assets, enter into transactions with affiliates, create or incur liens, and merge, consolidate or sell all or substantially all of their assets, and place restrictions on the ability of subsidiaries to pay dividends or make other payments to the Co-Issuers. The Co-Issuer Term Loan Agreement is guaranteed and secured to the same extent as the Co-Issuer Notes as described above. In addition, the Co-Issuer Term Loan Agreement contains events of default substantially similar to those described above for the Co-Issuer Notes Indenture. Company LC Agreement On the Settlement Date, the Company entered into the Company LC Agreement with the revolving lenders party to the Credit Agreement, pursuant to which the Company obtained a $324.0 million letter of credit facility under which its existing letters under the Credit Agreement were deemed to be issued. The Company paid aggregate debt issuance costs of $4.1 million. The commitments under the Company LC Agreement mature on December 31, 2024. Undrawn letters of credit under the Company LC Agreement bear interest at 6.00% per annum and unused commitments are subject to a 0.50% per annum commitment fee. During the three months ended March 31, 2021, the Company recorded interest expense and fees of $4.1 million related to the Company LC Agreement. In connection with the Revolver Transactions, the Company amended its Credit Agreement to make certain changes in consideration of the Company LC Agreement. After giving effect to the Revolver Transactions, there remain no revolving commitments or revolving loans under the Credit Agreement and the first lien net leverage ratio covenant was eliminated. The Company LC Agreement requires that the Company’s restricted subsidiaries maintain minimum aggregate liquidity of $125.0 million at the end of each quarter through December 31, 2024. As such, liquidity attributable to the Co-Issuers, its subsidiaries and other unrestricted subsidiaries will be excluded from the calculation. The Company LC Agreement is guaranteed and secured to the same extent of the Peabody Notes as described above. In addition, the Company LC Agreement contains events of default substantially similar to those described above for the Peabody Notes. Under the Company LC Agreement, the Company is permitted to effectuate open market debt repurchases, subject to certain limitations, including, but not limited to: (i) the Company’s unrestricted subsidiaries’ liquidity must be greater than or equal to $200.0 million after giving effect to such repurchases and (ii) for every $4 of principal repurchased in any fiscal quarter, the Company must make an offer on a pro rata basis to purchase $1 of principal amount of debt from holders of the Peabody Notes and Company LC Agreement within 30 days of the end of such fiscal quarter at a price equal to the weighted average repurchase price paid over that quarter. 6.375% Senior Secured Notes On February 15, 2017, the Company entered into the Existing Indenture with Wilmington Trust, National Association, as trustee, relating to its issuance of $500.0 million aggregate principal amount of the 2025 Notes. The 2025 Notes were issued on February 15, 2017 in a private transaction exempt from the registration requirements of the Securities Act of 1933. The 2025 Notes were issued at par value. The Company paid aggregate debt issuance costs of $25.1 million related to the offering, which are being amortized over the term of the 2025 Notes. Interest payments on the 2025 Notes are scheduled to occur each year on March 31 and September 30 until maturity. During the three months ended March 31, 2021 and 2020, the Company recorded interest expense of $9.2 million and $9.1 million, respectively, related to the 2025 Notes. On August 9, 2018, the Company executed an amendment to the Existing Indenture following the solicitation of consents from the requisite majority of holders of the 2025 Notes. The amendment permits a category of restricted payments at any time not to exceed the sum of $650.0 million, plus an additional $150.0 million per calendar year, commencing with calendar year 2019, with unused amounts in any calendar year carrying forward to and available for restricted payments in any subsequent calendar year. The Company paid consent fees to 2025 Note holders which amounted to $14.9 million. Such consent fees were capitalized as additional debt issuance costs to be amortized over the term of the 2025 Notes. With respect to the 2025 Notes, the Existing Indenture contains customary conditions of default and imposes certain restrictions on the Company’s activities, including its ability to incur debt, incur liens, make investments, engage in fundamental changes such as mergers and dissolutions, dispose of assets, enter into transactions with affiliates and make certain restricted payments, such as cash dividends and share repurchases. The 2025 Notes rank senior in right of payment to any subordinated Indebtedness and equally in right of payment with any senior Indebtedness to the extent of the collateral securing that Indebtedness. The 2025 Notes are jointly and severally and fully and unconditionally guaranteed on a senior secured basis by substantially all of the Company’s domestic restricted subsidiaries (the Peabody Guarantors) and secured by (a) first priority liens over (1) substantially all of the assets of the Company and the Peabody Guarantors, except for certain excluded assets, (2) 100% of the capital stock of each domestic restricted subsidiary of the Company, (3) 100% of the capital stock of each first tier foreign subsidiary of the Company or a foreign subsidiary holding company and (4) all intercompany debt owed to the Company or any Peabody Guarantor, in each case, subject to certain exceptions (the Peabody Collateral), and (b) second priority liens over the Wilpinjong Collateral. The 2025 Notes are secured on a pari passu basis by the same collateral securing the Credit Agreement, and the other priority lien debt of the Company, including the Peabody Notes and the Company LC Agreement described above. Credit Agreement The Company originally entered into the Credit Agreement during 2017, which provided for a $950.0 million senior secured term loan (the Senior Secured Term Loan) due in 2022. Proceeds from the Senior Secured Term Loan were received net of an original issue discount and deferred financing costs of $37.3 million that are being amortized over its term. The Credit Agreement has been amended periodically over its term to add a revolving loan facility, to increase the capacity and extend the maturity date of the revolving loan facility, to extend the maturity date of the Senior Secured Term Loan to 2025 and to make various changes to terms such as those related to interest, fees and payment restrictions. In connection with certain of the amendments, the Company voluntarily prepaid $46.0 million of Senior Secured Term Loan principal and incurred $10.4 million of deferred financing costs related to the revolving loan facility. The Company also voluntarily repaid an additional $500.0 million of Senior Secured Term Loan principal in various installments. At March 31, 2021 the Senior Secured Term Loan had a balance of $387.3 million. The Senior Secured Term Loan requires quarterly principal payments of $1.0 million and periodic interest payments through December 2024 with the remaining balance due in March 2025. During the three months ended March 31, 2021 and 2020, the Company recorded interest expense of $3.3 million and $4.9 million, respectively, related to the Senior Secured Term Loan, which bore interest at LIBOR plus 2.75% per annum as of March 31, 2021. In connection with the Revolver Transactions, the Company amended the Credit Agreement to make certain changes in consideration of the Company LC Agreement. After giving effect to the Revolver Transactions, there remain no revolving commitments or revolving loans under the Credit Agreement. Further, all covenants specific to the former revolving credit facility under the Credit Agreement were eliminated in connection with the Refinancing Transactions and were not applicable at March 31, 2021. During the three months ended March 31, 2021 and 2020, the Company recorded interest expense and fees of $1.4 million and $1.7 million, respectively, related to the revolving loan facility. The Credit Agreement contains customary conditions of default and imposes certain restrictions on the Company’s activities, including its ability to incur liens, incur debt, make investments, engage in fundamental changes such as mergers and dissolutions, dispose of assets, enter into transactions with affiliates and make certain restricted payments, such as cash dividends and share repurchases. Obligations under the Credit Agreement are guaranteed by the Peabody Guarantors and are secured by first priority liens on the Peabody Collateral and second priority liens on the Wilpinjong Collateral. The obligations are secured on a pari passu basis by the same collateral securing the 2025 Notes and the other priority lien debt of the Company, including the Peabody Notes and the Company LC Agreement described above. The Company was compliant with all covenants under its debt agreements at March 31, 2021. Finance Lease Obligations Refer to Note 9. “Leases” for additional information associated with the Company’s finance leases, which pertain to the financing of mining equipment used in operations. |
Pension and Postretirement Bene
Pension and Postretirement Benefit Costs | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefit Costs | Pension and Postretirement Benefit Costs The components of net periodic pension and postretirement benefit costs, excluding the service cost for benefits earned, are included in “Net periodic benefit (credit) costs, excluding service cost” in the unaudited condensed consolidated statements of operations. Net periodic pension benefit included the following components: Three Months Ended March 31, 2021 2020 (Dollars in millions) Interest cost on projected benefit obligation $ 5.1 $ 7.0 Expected return on plan assets (5.7) (7.4) Net periodic pension benefit $ (0.6) $ (0.4) Annual contributions to the qualified plans are made in accordance with minimum funding standards and the Company’s agreement with the Pension Benefit Guaranty Corporation. Funding decisions also consider certain funded status thresholds defined by the Pension Protection Act of 2006 (generally 80%). As of March 31, 2021, the Company’s qualified plans were expected to be at or above the Pension Protection Act thresholds. Minimum funding standards are legislated by the Employee Retirement Income Security Act of 1974 and are modified by pension funding stabilization provisions included in the Moving Ahead for Progress in the 21st Century Act of 2012, the Highway and Transportation Funding Act of 2014, the Bipartisan Budget Act of 2015 and the American Rescue Plan Act of 2021. The Company is not required to make any contributions to its qualified pension plans in 2021 based on minimum funding requirements and does not expect to make any discretionary contributions in 2021. Net periodic postretirement benefit (benefit) cost included the following components: Three Months Ended March 31, 2021 2020 (Dollars in millions) Service cost for benefits earned $ 0.2 $ 1.1 Interest cost on accumulated postretirement benefit obligation 2.9 5.5 Expected return on plan assets (0.2) (0.4) Amortization of prior service credit (11.0) (2.2) Net periodic postretirement benefit (benefit) cost $ (8.1) $ 4.0 In September 2020, the Company announced changes to its postretirement health care benefit plans for non-represented employees and retirees which reduced its accumulated postretirement benefit obligation, as further described in Note 15. “Postretirement Health Care and Life Insurance Benefits” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The reduction in liability was recorded with an offsetting balance in “Accumulated other comprehensive income” and is being amortized to earnings. The Company has established two Voluntary Employees Beneficiary Association (VEBA) trusts to pre-fund a portion of benefits for non-represented and represented retirees. The Company does not expect to make any discretionary contributions to either of the VEBA trusts in 2021 and plans to utilize VEBA assets to make benefit payments. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table sets forth the after-tax components of accumulated other comprehensive income and changes thereto recorded during the three months ended March 31, 2021: Foreign Currency Translation Prior Service Total Accumulated Other Comprehensive Income (Dollars in millions) December 31, 2020 $ 1.8 $ 204.0 $ 205.8 Reclassification from other comprehensive income to earnings — (11.0) (11.0) Current period change (0.2) — (0.2) March 31, 2021 $ 1.6 $ 193.0 $ 194.6 Postretirement health care and life insurance benefits reclassified from other comprehensive income to earnings of $11.0 million and $2.2 million du |
Other Events
Other Events | 3 Months Ended |
Mar. 31, 2021 | |
Other Events [Abstract] | |
Other Events | Other Events Cost Repositioning Program From time to time, the Company initiates restructuring activities in connection with its repositioning efforts to appropriately align its cost structure or optimize its coal production relative to prevailing market conditions. Costs associated with restructuring actions can include the impact of early mine closures, voluntary and involuntary workforce reductions, office closures and other related activities. Costs associated with restructuring activities are recognized in the period incurred. Such charges included as “Restructuring charges” in the Company's unaudited condensed consolidated statements of operations amounted to $2.1 million and $6.5 million for the three months ended March 31, 2021 and 2020, respectively, and were associated with both involuntary and voluntary workforce reductions. The Shoal Creek Mine remains idled as the Company continues activities to increase productivity, lower costs and improve yields from the operation in the future. The restart of mine production and coal shipments is contingent upon successful completion of these initiatives and stable customer demand. Included in the initiatives is a preparation plant upgrade project, which is anticipated to be commissioned by the middle of the third quarter of 2021. Additionally, the Shoal Creek labor contract expired on April 1, 2021 and negotiations with the workforce are ongoing. While discussions are ongoing with customers and workforce, the Metropolitan Mine full workforce returned to the mine in early May. Development work at the mine has been ongoing through the idle period and longwall production is anticipated to restart in the second quarter of 2021, with ramp up to full production in the third quarter of 2021. |
Earnings per Share (EPS)
Earnings per Share (EPS) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share (EPS) | Earnings per Share (EPS) Basic EPS is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding. As such, the Company includes the share-based compensation awards in its potentially dilutive securities. Dilutive securities are not included in the computation of loss per share when a company reports a net loss from continuing operations as the impact would be anti-dilutive. For all but the performance units, the potentially dilutive impact of the Company’s share-based compensation awards is determined using the treasury stock method. Under the treasury stock method, awards are treated as if they had been exercised with any proceeds used to repurchase common stock at the average market price during the period. Any incremental difference between the assumed number of shares issued and purchased is included in the diluted share computation. For the performance units, their contingent features result in an assessment for any potentially dilutive common stock by using the end of the reporting period as if it were the end of the contingency period for all units granted. The computation of diluted EPS excluded aggregate share-based compensation awards of approximately 1.3 million and 3.0 million for the three months ended March 31, 2021 and 2020, respectively, because to do so would have been anti-dilutive for those periods. Because the potential dilutive impact of such share-based compensation awards is calculated under the treasury stock method, anti-dilution generally occurs when the exercise prices or unrecognized compensation cost per share of such awards are higher than the Company’s average stock price during the applicable period. Anti-dilution also occurs when a company reports a net loss from continuing operations, and the dilutive impact of all share-based compensation awards are excluded accordingly. The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS. Three Months Ended March 31, 2021 2020 (In millions, except per share data) EPS numerator: Loss from continuing operations, net of income taxes $ (77.7) $ (129.3) Less: Net income (loss) attributable to noncontrolling interests 0.4 (1.8) Loss from continuing operations attributable to common stockholders (78.1) (127.5) Loss from discontinued operations, net of income taxes (2.0) (2.2) Net loss attributable to common stockholders $ (80.1) $ (129.7) EPS denominator: Weighted average shares outstanding — basic and diluted 98.4 97.2 Basic and diluted EPS attributable to common stockholders: Loss from continuing operations $ (0.79) $ (1.31) Loss from discontinued operations (0.02) (0.02) Net loss attributable to common stockholders $ (0.81) $ (1.33) |
Financial Instruments and Other
Financial Instruments and Other Guarantees | 3 Months Ended |
Mar. 31, 2021 | |
Financial Instruments And Guarantees [Abstract] | |
Financial Instruments and Other Guarantees | Financial Instruments and Other Guarantees In the normal course of business, the Company is a party to various guarantees and financial instruments that carry off-balance-she et risk and are not reflected in the accompanying condensed consolidated balance sheets. At March 31, 2021, such instruments included $1,570.8 million of surety bonds and $423.4 million of letters of credit. Such financial instruments provide support for the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees. The Company periodically evaluates the instruments for on-balance sheet treatment based on the amount of exposure under the instrument and the likelihood of required performance. The Company does not expect any material losses to result from these guarantees or off-balance-sheet instruments in excess of liabilities provided for in the accompanying condensed consolidated balance sheets. In connection with the Refinancing Transactions described in Note 11. “Long-term Debt,” at the Settlement Date, all letters of credit issued under the Company’s former revolving credit facility were deemed issued under the Company LC Agreement in support of the same obligations. The Company is required to provide various forms of financial assurance in support of its mining reclamation obligations in the jurisdictions in which it operates. Such requirements are typically established by statute or under mining permits. At March 31, 2021, the Company’s asset retirement obligations of $735.9 million were supported by surety bonds of $1,394.5 million, as well as letters of credit issued under the Company’s receivables securitization program and the Company LC Agreement. Letters of credit issued at March 31, 2021 which served as collateral for surety bonds in support of asset retirement obligations amounted to $297.7 million. Accounts Receivable Securitization The Company is party to an accounts receivable securitization agreement (Securitization Program) which expires in April 2022 and provides up to $250.0 million in funding, limited to the availability of eligible receivables, and may be secured by a combination of collateral and the trade receivables underlying the program, from time to time. Funding capacity under the Securitization Program may also be utilized for letters of credit in support of other obligations. The borrowings under the Securitization Program bear interest at LIBOR plus 1.5% per annum and remain outstanding throughout the term of the agreement, subject to the Company maintaining sufficient eligible receivables, by continuing to contribute trade receivables, unless an event of default occurs. The Securitization Program is subject to customary events of default. Under the terms of the Securitization Program, the Company contributes the trade receivables of its participating subsidiaries on a revolving basis to a wholly-owned, bankruptcy-remote subsidiary, which then sells the receivables to unaffiliated banks. The Securitization Program does not receive off-balance sheet accounting treatment due to the Company’s ability to repurchase the receivables in certain circumstances. At March 31, 2021, the Com pany had no outstanding borrowings and $120.8 million o f letters of credit issued under the Securitization Program. The letters of credit were primarily in support of portions of the Company’s obligations for property and casualty insurance. Availability under the Securitizatio n Program, which is adjusted for certain ineligible receivables, was $0.8 million at March 31, 2021. The Company had $43.5 million of collateral posted under the Securitization Program at March 31, 2021 and none at December 31, 2020 . The Company incurred interest and fees associated with the Securitization Program of $0.7 million during the three months ended March 31, 2021 and 2020, respectively, which have been recorded as “Interest expense” in the accompanying unaudited condensed consolidated statements of operations. Cash Collateral Arrangements and Restricted Cash From time to time, the Company is required to remit cash to certain regulatory authorities and other third parties as collateral for financial assurances associated with a variety of long-term obligations and commitments surrounding employee related matters and the mining, reclamation and shipping of its production. At March 31, 2021, the Company had $43.5 million of cash collateral and restricted cash requirements due to outstanding letters of credit temporarily exceeding the balance of eligible receivables at quarter-end. The Company had no such requirements at December 31, 2020 . Other Substantially all of the Company’s U.S. subsidiaries provide financial guarantees under long-term debt agreements entered into by the Company. The maximum amounts payable under the Company’s debt agreements are equal to the respective principal and interest payments. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Unconditional Purchase Obligations As of March 31, 2021, purchase commitments for capital expenditures were $46.0 million, all of which is obligated within the next four years, with $38.4 million obligated within the next 12 months. There were no other material changes to the Company’s commitments from the information provided in Note 24. “Commitments and Contingencies” to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Contingencies From time to time, the Company or its subsidiaries are involved in legal proceedings arising in the ordinary course of business or related to indemnities or historical operations. The Company believes it has recorded adequate reserves for these liabilities. The Company discusses its significant legal proceedings below, including ongoing proceedings and those that impacted the Company’s results of operations for the periods presented. Litigation Relating to Continuing Operations Securities Class Action. On September 28, 2020, the Oklahoma Firefighters Pension and Retirement System brought a lawsuit, styled In Re Peabody Energy Corporation Securities Litigation No. 1:20-cv-08024 (PKC), against the Company and certain of its officers in the U.S. District Court for the Southern District of New York (the Court) on behalf of a putative class of shareholders (Plaintiffs) who held Company stock between April 3, 2017 and October 28, 2019, for alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder (Securities Class Action). Plaintiffs allege that the defendants made false or misleading statements and/or failed to disclose certain adverse facts pertaining to safety practices at the Company’s North Goonyella Mine and the events leading up to a fire at the mine, and that, after a September 28, 2018 fire at the mine, made false or misleading statements and/or failed to disclose certain adverse facts pertaining to the feasibility of the Company’s plan to restart the mine after the fire. The Company believes the lawsuit lacks merit and intends to vigorously defend against the allegations. On January 12, 2021, the Court appointed the Oregon Public Employees Retirement Fund as lead plaintiff. On January 25, 2021, the Court entered a scheduling order for this matter. Plaintiffs filed their amended complaint on March 19, 2021. The defendants filed a pre-motion letter on April 30, 2021 and the Plaintiffs’ response letter is due May 6, 2021. The defendants must file their motion to dismiss by June 7, 2021. Additional briefings at this phase of litigation should be completed by the end of August 2021. Derivative Actions. On December 22, 2020, a plaintiff (Phelps) , putatively on behalf of the Company, brought a shareholder derivative lawsuit, styled Phelps v. Samantha Algaze, et al. , Case No. 1:20-cv-01747-UNA (D. Del. filed Dec. 22, 2020), in the United States District Court for the District of Delaware against certain directors and a former officer of the Company, as defendants. The Company was also named as a nominal defendant. The plaintiff did not make a demand on the Company’s board before instituting the lawsuit and alleges such demand would have been futile. In the complaint, the plaintiff alleges that the defendants failed to disclose adverse facts relating to the safety practices at the Company’s North Goonyella Mine, thereby leading to a September 28, 2018 fire, and allegedly failed to disclose adverse facts pertaining to the feasibility of reopening the mine. The derivative complaint alleges (i) contribution against certain current and former officers for securities fraud based on the Securities Class Action, and against all defendants, (ii) breach of fiduciary duties, (iii) waste of corporate assets for causing the Company to incur legal liability and (iv) unjust enrichment. On February 10, 2021, a second plaintiff (Di Fusco), putatively on behalf of the Company, filed a similar shareholder derivative lawsuit, styled Di Fusco v. Glenn Kellow, et al. , Case No. 1:21-cv-00183-UNA (D. Del. filed Feb. 10, 2021), in the United States District Court for the District of Delaware against the directors, two current officers and a former officer of the Company, as defendants. The Company was named as a nominal defendant. This suit makes claims similar to those made in the Phelps matter, but asserts a claim for alleged misstatements in a proxy statement under Section 14(a) of the Securities and Exchange Act of 1934. In late March 2021, the parties filed a stipulation agreeing to consolidate and stay both derivative actions for judicial efficiency and cost until the United States District Court for the District of Delaware ruled on the motion to dismiss in the Securities Class Action. The Company also believes that the derivative actions lack merit and intended to vigorously defend against the allegations. Litigation Relating to Continuing Operations At times, the Company becomes a party to other disputes, including those related to contract miner performance, claims, lawsuits, arbitration proceedings, regulatory investigations and administrative procedures in the ordinary course of business in the U.S., Australia and other countries where the Company does business. Based on current information, the Company believes that such other pending or threatened proceedings are likely to be resolved without a material adverse effect on its financial condition, results of operations or cash flows. The Company reassesses the probability and estimability of contingent losses as new information becomes available. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company reports its results of operations primarily through the following reportable segments: Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, Other U.S. Thermal Mining and Corporate and Other. The Company’s chief operating decision maker uses Adjusted EBITDA as the primary metric to measure the segments’ operating performance. Adjusted EBITDA is a non-GAAP financial measure defined as loss 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 non-GAAP performance measures are used by investors to measure the Company’s operating performance and lenders to measure the Company’s ability to incur and service debt. 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 March 31, 2021 2020 (Dollars in millions) Revenues: Seaborne Thermal Mining $ 176.4 $ 201.1 Seaborne Metallurgical Mining 87.5 193.2 Powder River Basin Mining 228.4 266.6 Other U.S. Thermal Mining 149.3 192.3 Corporate and Other 9.7 (7.0) Total $ 651.3 $ 846.2 Adjusted EBITDA: Seaborne Thermal Mining $ 28.5 $ 55.1 Seaborne Metallurgical Mining (22.4) (32.7) Powder River Basin Mining 30.1 25.4 Other U.S. Thermal Mining 36.2 38.5 Corporate and Other (11.3) (49.5) Total $ 61.1 $ 36.8 A reconciliation of consolidated loss from continuing operations, net of income taxes to Adjusted EBITDA follows: Three Months Ended March 31, 2021 2020 (Dollars in millions) Loss from continuing operations, net of income taxes $ (77.7) $ (129.3) Depreciation, depletion and amortization 68.3 106.0 Asset retirement obligation expenses 15.9 17.6 Restructuring charges 2.1 6.5 Transaction costs related to joint ventures — 4.2 Changes in deferred tax asset valuation allowance and reserves and amortization of basis difference related to equity affiliates (1.5) (0.7) Interest expense 52.4 33.1 Gain on early debt extinguishment (3.5) — Interest income (1.5) (3.1) Unrealized losses on economic hedges 1.9 2.2 Unrealized losses (gains) on non-coal trading derivative contracts 7.6 (0.1) Take-or-pay contract-based intangible recognition (1.1) (2.6) Income tax (benefit) provision (1.8) 3.0 Adjusted EBITDA $ 61.1 $ 36.8 |
Newly Adopted Accounting Stan_2
Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented [Abstract] | |
Corporate Hedging | From time to time, the Company may utilize various types of derivative instruments to manage its exposure to risks in the normal course of business, including (1) foreign currency exchange rate risk and the variability of cash flows associated with forecasted Australian dollar expenditures made in its Australian mining platform, (2) price risk of fluctuating coal prices related to forecasted sales or purchases of coal, or changes in the fair value of a fixed price physical sales contract, (3) price risk and the variability of cash flows related to forecasted diesel fuel purchased for use in its operations and (4) interest rate risk on long-term debt. These risk management activities are actively monitored for compliance with the Company’s risk management policies. |
Corporate Hedging - Coal Trading | The Company’s risk management function, which is independent of the Company’s coal trading function, is responsible for valuation policies and procedures, with oversight from executive management. The fair value of the Company’s coal derivative assets and liabilities reflects adjustments for credit risk. The Company’s exposure is substantially with electric utilities, energy marketers, steel producers and nonfinancial trading houses. |
Fair Value, Assets, Transfers Between Levels | The Company’s policy is to value all transfers between levels using the beginning of period valuation. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue by Product Type and Market | With respect to its seaborne mining segments, the Company classifies as “Export” certain revenue from domestically-delivered coal under contracts in which the price is derived on a basis similar to export contracts. Three Months Ended March 31, 2021 Seaborne Thermal Mining Seaborne Metallurgical Mining Powder River Basin Mining Other U.S. Thermal Mining Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 44.1 $ — $ 228.4 $ 146.8 $ — $ 419.3 Export 131.9 — — — — 131.9 Total thermal 176.0 — 228.4 146.8 — 551.2 Metallurgical coal Domestic — 2.7 — — — 2.7 Export — 83.9 — — — 83.9 Total metallurgical — 86.6 — — — 86.6 Other (2) 0.4 0.9 — 2.5 9.7 13.5 Revenues $ 176.4 $ 87.5 $ 228.4 $ 149.3 $ 9.7 $ 651.3 Three Months Ended March 31, 2020 Seaborne Thermal Mining Seaborne Metallurgical Mining Powder River Basin Mining Other U.S. Thermal Mining Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 36.5 $ — $ 266.6 $ 184.6 $ — $ 487.7 Export 163.7 — — — — 163.7 Total thermal 200.2 — 266.6 184.6 — 651.4 Metallurgical coal Export — 192.5 — — — 192.5 Total metallurgical — 192.5 — — — 192.5 Other (2) 0.9 0.7 — 7.7 (7.0) 2.3 Revenues $ 201.1 $ 193.2 $ 266.6 $ 192.3 $ (7.0) $ 846.2 (1) Corporate and Other revenue includes gains and losses related to mark-to-market adjustments from economic hedge activities intended to hedge future coal sales. Refer to Note 7. “Derivatives and Fair Value Measurements” for additional information regarding the economic hedge activities. (2) Other includes revenues from arrangements such as customer contract-related payments associated with volume shortfalls, royalties related to coal lease agreements, sales agency commissions, farm income and property and facility rentals. |
Schedule of Accounts Receivable | “Accounts receivable, net” at March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 (Dollars in millions) Trade receivables, net $ 131.2 $ 180.9 Miscellaneous receivables, net 36.6 63.9 Accounts receivable, net $ 167.8 $ 244.8 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summarized Results Of Discontinued Operations | Results from discontinued operations were as follows during the periods presented below: Three Months Ended March 31, 2021 2020 (Dollars in millions) Loss from discontinued operations, net of income taxes $ (2.0) $ (2.2) Liabilities of Discontinued Operations Liabilities classified as discontinued operations included in the Company’s condensed consolidated balance sheets were as follows: March 31, 2021 December 31, 2020 (Dollars in millions) Liabilities: Accounts payable and accrued expenses $ 62.8 $ 62.3 Other noncurrent liabilities 85.0 91.4 Total liabilities classified as discontinued operations $ 147.8 $ 153.7 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 (Dollars in millions) Materials and supplies $ 104.3 $ 102.6 Raw coal 52.4 70.5 Saleable coal 84.7 88.5 Total $ 241.4 $ 261.6 |
Derivatives and Fair Value Me_2
Derivatives and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The Company has master netting agreements with certain of its counterparties which allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. Such netting arrangements reduce the Company’s credit exposure related to these counterparties. For classification purposes, the Company records the net fair value of all the positions with a given counterparty as a net asset or liability in the condensed consolidated balance sheets. The fair value of derivatives reflected in the accompanying condensed consolidated balance sheets are set forth in the table below. March 31, 2021 December 31, 2020 Asset Derivative Liability Derivative Asset Derivative Liability Derivative (Dollars in millions) Foreign currency option contracts $ 2.7 $ — $ 10.3 $ — Coal contracts related to forecasted sales 1.1 (8.6) 0.9 (8.8) Coal trading contracts 30.4 (35.5) 23.4 (23.1) Total derivatives 34.2 (44.1) 34.6 (31.9) Effect of counterparty netting (44.1) 44.1 (30.2) 30.2 Variation margin posted 13.6 — 6.5 — Net derivatives and margin as classified in the balance sheets $ 3.7 $ — $ 10.9 $ (1.7) |
Derivative Instruments, Gain (Loss) | The tables below show the amounts of pre-tax gains and losses related to the Company’s derivatives. Three Months Ended March 31, 2021 Total (loss) gain recognized in income Gain realized in income on derivatives Unrealized loss recognized in income on derivatives Financial Instrument (Dollars in millions) Foreign currency option contracts $ (2.9) $ 4.7 $ (7.6) Coal contracts related to forecasted sales 8.2 10.0 (1.8) Coal trading contracts (0.7) 2.4 (3.1) Total $ 4.6 $ 17.1 $ (12.5) Three Months Ended March 31, 2020 Total loss recognized in income (Loss) gain realized in income on derivatives Unrealized gain (loss) recognized in income on derivatives Financial Instrument (Dollars in millions) Foreign currency option contracts $ (0.9) $ (1.0) $ 0.1 Coal contracts related to forecasted sales (8.6) (6.4) (2.2) Coal trading contracts (0.1) 4.1 (4.2) Total $ (9.6) $ (3.3) $ (6.3) |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables set forth the hierarchy of the Company’s net financial asset positions for which fair value is measured on a recurring basis: March 31, 2021 Level 1 Level 2 Level 3 Total (Dollars in millions) Foreign currency option contracts $ — $ 2.7 $ — $ 2.7 Coal contracts related to forecasted sales — (7.5) — (7.5) Coal trading contracts — 8.5 — 8.5 Equity securities — — 4.0 4.0 Total net financial assets $ — $ 3.7 $ 4.0 $ 7.7 December 31, 2020 Level 1 Level 2 Level 3 Total (Dollars in millions) Foreign currency option contracts $ — $ 10.3 $ — $ 10.3 Coal contracts related to forecasted sales — (7.9) — (7.9) Coal trading contracts — 6.8 — 6.8 Equity securities — — 4.0 4.0 Total net financial assets $ — $ 9.2 $ 4.0 $ 13.2 |
Carrying Amounts And Estimated Fair Values Of Companys Debt | The fair value of debt, shown below, is principally based on reported market values and estimates based on interest rates, maturities, credit risk, underlying collateral and completed market transactions, which have been limited in recent history. March 31, 2021 December 31, 2020 (Dollars in millions) Total debt at par value $ 1,538.2 $ 1,591.3 Less: Unamortized debt issuance costs and original issue discount (57.5) (43.5) Net carrying amount $ 1,480.7 $ 1,547.8 Estimated fair value $ 862.1 $ 987.6 |
Property, Plant, Equipment an_2
Property, Plant, Equipment and Mine Development (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, Equipment and Mine Development | The composition of property, plant, equipment and mine development, net, as of March 31, 2021 and December 31, 2020 is set forth in the table below: March 31, 2021 December 31, 2020 (Dollars in millions) Land and coal interests $ 2,484.1 $ 2,482.9 Buildings and improvements 484.7 481.0 Machinery and equipment 1,442.5 1,408.5 Less: Accumulated depreciation, depletion and amortization (1,385.9) (1,321.3) Property, plant, equipment and mine development, net $ 3,025.4 $ 3,051.1 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense during the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 (Dollars in millions) Operating lease cost: Operating lease cost $ 6.0 $ 8.6 Short-term lease cost 3.4 9.9 Variable lease cost 0.5 1.0 Sublease income (0.5) — Total operating lease cost $ 9.4 $ 19.5 Finance lease cost: Amortization of right-of-use assets $ 0.6 $ 3.4 Interest on lease liabilities 0.5 0.2 Total finance lease cost $ 1.1 $ 3.6 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases at March 31, 2021 and December 31, 2020 was as follows: March 31, 2021 December 31, 2020 (Dollars in millions) Operating leases: Operating lease right-of-use assets $ 46.8 $ 49.9 Accounts payable and accrued expenses $ 21.1 $ 24.5 Operating lease liabilities, less current portion 37.5 42.1 Total operating lease liabilities $ 58.6 $ 66.6 Finance leases: Property, plant, equipment and mine development $ 13.8 $ 20.4 Accumulated depreciation (3.1) (2.5) Property, plant, equipment and mine development, net $ 10.7 $ 17.9 Current portion of long-term debt $ 5.9 $ 21.5 Long-term debt, less current portion 11.4 5.8 Total finance lease liabilities $ 17.3 $ 27.3 Weighted average remaining lease term (years) Operating leases 3.4 Finance leases 8.2 Weighted average discount rate Operating leases 6.7 % Finance leases 10.1 % |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases during the three months ended March 31, 2021 and 2020 was as follows: Three Months Ended March 31, 2021 2020 (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 8.3 $ 12.8 Operating cash flows for finance leases 0.7 0.2 Financing cash flows for finance leases 1.3 5.8 Right-of-use assets obtained in exchange for lease obligations: Operating leases 3.1 1.3 Finance leases 3.6 0.1 |
Lessee, Operating Lease, Liability, Maturity | he contractual maturities of lease liabilities were as follows: Period Ending December 31, Operating Leases Finance Leases (Dollars in millions) 2021 $ 17.5 $ 5.6 2022 18.6 7.1 2023 16.7 1.6 2024 6.0 0.7 2025 3.4 0.5 2026 and thereafter 3.8 7.7 Total lease payments 66.0 23.2 Less imputed interest (7.4) (5.9) Total lease liabilities $ 58.6 $ 17.3 |
Finance Lease, Liability, Maturity | he contractual maturities of lease liabilities were as follows: Period Ending December 31, Operating Leases Finance Leases (Dollars in millions) 2021 $ 17.5 $ 5.6 2022 18.6 7.1 2023 16.7 1.6 2024 6.0 0.7 2025 3.4 0.5 2026 and thereafter 3.8 7.7 Total lease payments 66.0 23.2 Less imputed interest (7.4) (5.9) Total lease liabilities $ 58.6 $ 17.3 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company’s total funded indebtedness (Indebtedness) as of March 31, 2021 and December 31, 2020 consisted of the following: Debt Instrument (defined below, as applicable) March 31, 2021 December 31, 2020 (Dollars in millions) 6.000% Senior Secured Notes due March 2022 (2022 Notes) $ 60.3 $ 459.0 8.500% Senior Secured Notes due December 2024 (Peabody Notes) 172.7 — 10.000% Senior Secured Notes due December 2024 (Co-Issuer Notes) 193.9 — 6.375% Senior Secured Notes due March 2025 (2025 Notes) 500.0 500.0 Senior Secured Term Loan due 2024 (Co-Issuer Term Loan) 206.0 — Senior Secured Term Loan due 2025, net of original issue discount (Senior Secured Term Loan) 387.3 388.2 Revolving credit facility — 216.0 Finance lease obligations 17.3 27.3 Less: Debt issuance costs (56.8) (42.7) 1,480.7 1,547.8 Less: Current portion of long-term debt 69.4 44.9 Long-term debt $ 1,411.3 $ 1,502.9 |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Costs (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Net periodic pension benefit included the following components: Three Months Ended March 31, 2021 2020 (Dollars in millions) Interest cost on projected benefit obligation $ 5.1 $ 7.0 Expected return on plan assets (5.7) (7.4) Net periodic pension benefit $ (0.6) $ (0.4) Net periodic postretirement benefit (benefit) cost included the following components: Three Months Ended March 31, 2021 2020 (Dollars in millions) Service cost for benefits earned $ 0.2 $ 1.1 Interest cost on accumulated postretirement benefit obligation 2.9 5.5 Expected return on plan assets (0.2) (0.4) Amortization of prior service credit (11.0) (2.2) Net periodic postretirement benefit (benefit) cost $ (8.1) $ 4.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
After-tax components of comprehensive income (loss) | The following table sets forth the after-tax components of accumulated other comprehensive income and changes thereto recorded during the three months ended March 31, 2021: Foreign Currency Translation Prior Service Total Accumulated Other Comprehensive Income (Dollars in millions) December 31, 2020 $ 1.8 $ 204.0 $ 205.8 Reclassification from other comprehensive income to earnings — (11.0) (11.0) Current period change (0.2) — (0.2) March 31, 2021 $ 1.6 $ 193.0 $ 194.6 |
Earnings per Share (EPS) (Table
Earnings per Share (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Allocation Method Utilized in the Calculation of Basic and Diluted EPS | The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS. Three Months Ended March 31, 2021 2020 (In millions, except per share data) EPS numerator: Loss from continuing operations, net of income taxes $ (77.7) $ (129.3) Less: Net income (loss) attributable to noncontrolling interests 0.4 (1.8) Loss from continuing operations attributable to common stockholders (78.1) (127.5) Loss from discontinued operations, net of income taxes (2.0) (2.2) Net loss attributable to common stockholders $ (80.1) $ (129.7) EPS denominator: Weighted average shares outstanding — basic and diluted 98.4 97.2 Basic and diluted EPS attributable to common stockholders: Loss from continuing operations $ (0.79) $ (1.31) Loss from discontinued operations (0.02) (0.02) Net loss attributable to common stockholders $ (0.81) $ (1.33) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Reportable Segment Results | Reportable segment results were as follows: Three Months Ended March 31, 2021 2020 (Dollars in millions) Revenues: Seaborne Thermal Mining $ 176.4 $ 201.1 Seaborne Metallurgical Mining 87.5 193.2 Powder River Basin Mining 228.4 266.6 Other U.S. Thermal Mining 149.3 192.3 Corporate and Other 9.7 (7.0) Total $ 651.3 $ 846.2 Adjusted EBITDA: Seaborne Thermal Mining $ 28.5 $ 55.1 Seaborne Metallurgical Mining (22.4) (32.7) Powder River Basin Mining 30.1 25.4 Other U.S. Thermal Mining 36.2 38.5 Corporate and Other (11.3) (49.5) Total $ 61.1 $ 36.8 |
Reconciliation of Consolidated (Loss) Income from Continuing Operations, Net of Income Taxes to Adjusted EBITDA | A reconciliation of consolidated loss from continuing operations, net of income taxes to Adjusted EBITDA follows: Three Months Ended March 31, 2021 2020 (Dollars in millions) Loss from continuing operations, net of income taxes $ (77.7) $ (129.3) Depreciation, depletion and amortization 68.3 106.0 Asset retirement obligation expenses 15.9 17.6 Restructuring charges 2.1 6.5 Transaction costs related to joint ventures — 4.2 Changes in deferred tax asset valuation allowance and reserves and amortization of basis difference related to equity affiliates (1.5) (0.7) Interest expense 52.4 33.1 Gain on early debt extinguishment (3.5) — Interest income (1.5) (3.1) Unrealized losses on economic hedges 1.9 2.2 Unrealized losses (gains) on non-coal trading derivative contracts 7.6 (0.1) Take-or-pay contract-based intangible recognition (1.1) (2.6) Income tax (benefit) provision (1.8) 3.0 Adjusted EBITDA $ 61.1 $ 36.8 |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by Product Type and Market (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 651.3 | $ 846.2 |
Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 551.2 | 651.4 |
Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 86.6 | 192.5 |
Other (2) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13.5 | 2.3 |
Domestic | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 419.3 | 487.7 |
Domestic | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2.7 | |
Export | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 131.9 | 163.7 |
Export | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 83.9 | 192.5 |
Seaborne Thermal Mining | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 176.4 | 201.1 |
Seaborne Thermal Mining | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 176 | 200.2 |
Seaborne Thermal Mining | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Seaborne Thermal Mining | Other (2) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0.4 | 0.9 |
Seaborne Thermal Mining | Domestic | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 44.1 | 36.5 |
Seaborne Thermal Mining | Domestic | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | |
Seaborne Thermal Mining | Export | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 131.9 | 163.7 |
Seaborne Thermal Mining | Export | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Seaborne Metallurgical Mining | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 87.5 | 193.2 |
Seaborne Metallurgical Mining | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Seaborne Metallurgical Mining | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 86.6 | 192.5 |
Seaborne Metallurgical Mining | Other (2) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0.9 | 0.7 |
Seaborne Metallurgical Mining | Domestic | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Seaborne Metallurgical Mining | Domestic | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2.7 | |
Seaborne Metallurgical Mining | Export | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Seaborne Metallurgical Mining | Export | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 83.9 | 192.5 |
Powder River Basin Mining | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 228.4 | 266.6 |
Powder River Basin Mining | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 228.4 | 266.6 |
Powder River Basin Mining | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Powder River Basin Mining | Other (2) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Powder River Basin Mining | Domestic | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 228.4 | 266.6 |
Powder River Basin Mining | Domestic | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | |
Powder River Basin Mining | Export | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Powder River Basin Mining | Export | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Other U.S. Thermal Mining | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 149.3 | 192.3 |
Other U.S. Thermal Mining | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 146.8 | 184.6 |
Other U.S. Thermal Mining | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Other U.S. Thermal Mining | Other (2) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2.5 | 7.7 |
Other U.S. Thermal Mining | Domestic | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 146.8 | 184.6 |
Other U.S. Thermal Mining | Domestic | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | |
Other U.S. Thermal Mining | Export | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Other U.S. Thermal Mining | Export | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate and Other (1) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 9.7 | (7) |
Corporate and Other (1) | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate and Other (1) | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate and Other (1) | Other (2) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 9.7 | (7) |
Corporate and Other (1) | Domestic | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate and Other (1) | Domestic | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | |
Corporate and Other (1) | Export | Thermal coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate and Other (1) | Export | Metallurgical coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 0 | $ 0 |
Revenue Recognition - Accounts
Revenue Recognition - Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue Recognition [Abstract] | ||
Trade receivables, net | $ 131.2 | $ 180.9 |
Miscellaneous receivables, net | 36.6 | 63.9 |
Accounts receivable, net | $ 167.8 | $ 244.8 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Contract with customer, liability | $ 3,600,000,000 | ||
Accounts receivable, credit loss expense (reversal) | $ 0 | $ 0 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, remaining performance obligation, percentage | 45.00% | ||
Revenue, remaining performance obligation, period | 12 months | ||
Trade receivables | |||
Disaggregation of Revenue [Line Items] | |||
Accounts receivable, allowance for credit loss | $ 0 | $ 0 | |
Miscellaneous Receivables | |||
Disaggregation of Revenue [Line Items] | |||
Accounts receivable, allowance for credit loss | $ 0 | $ 0 |
Discontinued Operations - Loss,
Discontinued Operations - Loss, Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss from discontinued operations, net of income taxes | $ (2) | $ (2.2) | |
Discontinued Operations, Held-for-sale or Disposed of by Sale | |||
Liabilities: | |||
Accounts payable and accrued expenses | 62.8 | $ 62.3 | |
Other noncurrent liabilities | 85 | 91.4 | |
Total liabilities classified as discontinued operations | $ 147.8 | $ 153.7 |
Discontinued Operations - Patri
Discontinued Operations - Patriot Related Matters (Details) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Oct. 09, 2015buyer | Dec. 31, 2007USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss from discontinued operations, net of income taxes | $ 2 | $ 2.2 | |||
Patriot | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of buyers | buyer | 2 | ||||
Spinoff | Patriot | Black Lung Occupational Disease Liability | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Initially determined potential exposure from patriot bankruptcy | $ 150 | ||||
Potential exposure from patriot bankruptcy | $ 89.8 | $ 90.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Materials and supplies | $ 104.3 | $ 102.6 |
Raw coal | 52.4 | 70.5 |
Saleable coal | 84.7 | 88.5 |
Total | 241.4 | 261.6 |
Material and supplies | ||
Inventory [Line Items] | ||
inventory reserves | 10.5 | $ 10.4 |
Coal | ||
Inventory [Line Items] | ||
inventory reserves | $ 5.5 |
Equity Method Investments (Deta
Equity Method Investments (Details) | 3 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021AUD ($) | Dec. 31, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 21,200,000 | $ 24,600,000 | ||
(Loss) income from equity method investments | (900,000) | $ (9,100,000) | ||
Cash receipts from Middlemount Coal Pty | 2,300,000 | 0 | ||
Middlemount Mine | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Cash receipts from Middlemount Coal Pty | $ (2,300,000) | 0 | ||
Equity interest percentage of revolving loans limit | 50.00% | 50.00% | ||
Revolving loan limit | $ 160,000,000 | |||
Financing receivable, stated interest rate (in percent) | 10.00% | |||
Intercompany loans, carrying value | $ 43,300,000 | $ 46,200,000 | ||
Middlemount Mine | ||||
Schedule of Equity Method Investments [Line Items] | ||||
(Loss) income from equity method investments | $ (900,000) | $ (9,100,000) |
Derivatives and Fair Value Me_3
Derivatives and Fair Value Measurements - Narrative (Details) t in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021AUD ($)t | Jun. 30, 2021t | Dec. 31, 2021$ / $ | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Foreign currency option contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | $ 575,000,000 | ||||
Coal trading contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative notional amount (in tonnes) | t | 1.5 | ||||
Diesel Fuel Hedge Contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | $ 0 | ||||
Forecast | Foreign currency option contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, exchange rate floor (in dollars per share) | $ / $ | 0.76 | ||||
Derivative, exchange rate cap (in dollars per share) | $ / $ | 0.81 | ||||
Forecast | Coal trading contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative notional amount (in tonnes) | t | 0.5 | ||||
Coal Trading | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, initial margin posted | $ 6.5 | $ 3 |
Derivatives and Fair Value Me_4
Derivatives and Fair Value Measurements - Derivatives by Balance Sheet Classification (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Asset Derivative | ||
Derivative Asset, Fair Value, Gross Asset | $ 34.2 | $ 34.6 |
Effect of counterparty netting | (44.1) | (30.2) |
Variation margin posted | 13.6 | 6.5 |
Net derivatives and margin as classified in the balance sheets | 3.7 | 10.9 |
Liability Derivative | ||
Liability Derivative | (44.1) | (31.9) |
Effect of counterparty netting | 44.1 | 30.2 |
Variation margin posted | 0 | 0 |
Net derivatives and margin as classified in the balance sheets | 0 | (1.7) |
Foreign currency option contracts | ||
Asset Derivative | ||
Derivative Asset, Fair Value, Gross Asset | 2.7 | 10.3 |
Liability Derivative | ||
Liability Derivative | 0 | 0 |
Coal contracts related to forecasted sales | ||
Asset Derivative | ||
Derivative Asset, Fair Value, Gross Asset | 1.1 | 0.9 |
Liability Derivative | ||
Liability Derivative | (8.6) | (8.8) |
Coal trading contracts | ||
Asset Derivative | ||
Derivative Asset, Fair Value, Gross Asset | 30.4 | 23.4 |
Liability Derivative | ||
Liability Derivative | $ (35.5) | $ (23.1) |
Derivatives and Fair Value Me_5
Derivatives and Fair Value Measurements - Gains and Losses on Hedging Derivatives (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total (loss) gain recognized in income | $ 4.6 | $ (9.6) |
Gain realized in income on derivatives | 17.1 | (3.3) |
Unrealized loss recognized in income on derivatives | (12.5) | (6.3) |
Foreign currency option contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total (loss) gain recognized in income | (2.9) | (0.9) |
Gain realized in income on derivatives | 4.7 | (1) |
Unrealized loss recognized in income on derivatives | (7.6) | 0.1 |
Coal contracts related to forecasted sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total (loss) gain recognized in income | 8.2 | (8.6) |
Gain realized in income on derivatives | 10 | (6.4) |
Unrealized loss recognized in income on derivatives | (1.8) | (2.2) |
Coal trading contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total (loss) gain recognized in income | (0.7) | (0.1) |
Gain realized in income on derivatives | 2.4 | 4.1 |
Unrealized loss recognized in income on derivatives | $ (3.1) | $ (4.2) |
Derivatives and Fair Value Me_6
Derivatives and Fair Value Measurements - Financial Instruments Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Equity securities | $ 4 | $ 4 |
Total net financial assets | 7.7 | 13.2 |
Level 1 | ||
Derivative [Line Items] | ||
Equity securities | 0 | 0 |
Total net financial assets | 0 | 0 |
Level 2 | ||
Derivative [Line Items] | ||
Equity securities | 0 | 0 |
Total net financial assets | 3.7 | 9.2 |
Level 3 | ||
Derivative [Line Items] | ||
Equity securities | 4 | 4 |
Total net financial assets | 4 | 4 |
Foreign currency option contracts | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 2.7 | 10.3 |
Foreign currency option contracts | Level 1 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 0 | 0 |
Foreign currency option contracts | Level 2 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 2.7 | 10.3 |
Foreign currency option contracts | Level 3 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 0 | 0 |
Coal contracts related to forecasted sales | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | (7.5) | (7.9) |
Coal contracts related to forecasted sales | Level 1 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 0 | 0 |
Coal contracts related to forecasted sales | Level 2 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | (7.5) | (7.9) |
Coal contracts related to forecasted sales | Level 3 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 0 | 0 |
Coal trading contracts | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 8.5 | 6.8 |
Coal trading contracts | Level 1 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 0 | 0 |
Coal trading contracts | Level 2 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 8.5 | 6.8 |
Coal trading contracts | Level 3 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | $ 0 | $ 0 |
Derivatives and Fair Value Me_7
Derivatives and Fair Value Measurements - Long-term debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net carrying amount | $ 1,480.7 | $ 1,547.8 |
Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt at par value | 1,538.2 | 1,591.3 |
Less: Unamortized debt issuance costs and original issue discount | (57.5) | (43.5) |
Net carrying amount | 1,480.7 | 1,547.8 |
Estimated fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated fair value | $ 862.1 | $ 987.6 |
Property, Plant, Equipment an_3
Property, Plant, Equipment and Mine Development (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation, depletion and amortization | $ (1,385.9) | $ (1,321.3) |
Property, plant, equipment and mine development, net | 3,025.4 | 3,051.1 |
Land and coal interests | ||
Property, Plant and Equipment [Line Items] | ||
Land and coal interests | 2,484.1 | 2,482.9 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Land and coal interests | 484.7 | 481 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Land and coal interests | $ 1,442.5 | $ 1,408.5 |
Property, Plant, Equipment an_4
Property, Plant, Equipment and Mine Development - Narrative (Details) | Mar. 31, 2021USD ($) |
Impaired Long-Lived Assets Held and Used [Line Items] | |
At-risk assets | $ 1,200,000,000 |
Other US Mining Operations | |
Impaired Long-Lived Assets Held and Used [Line Items] | |
At-risk assets | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Lessor, Lease, Description [Line Items] | |
Lease obligation, assumed amount recoverable from third parties | $ 0 |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Operating and finance leases remaining lease term | 21 years |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Operating and finance leases remaining lease term | 1 year |
Leases - Supplemental Income St
Leases - Supplemental Income Statement Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating lease cost: | ||
Operating lease cost | $ 6 | $ 8.6 |
Short-term lease cost | 3.4 | 9.9 |
Variable lease cost | 0.5 | 1 |
Sublease income | (0.5) | 0 |
Total operating lease cost | 9.4 | 19.5 |
Finance lease cost: | ||
Amortization of right-of-use assets | 0.6 | 3.4 |
Interest on lease liabilities | 0.5 | 0.2 |
Total finance lease cost | $ 1.1 | $ 3.6 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Operating leases: | ||
Operating lease right-of-use assets | $ 46.8 | $ 49.9 |
Accounts payable and accrued expenses | 21.1 | 24.5 |
Operating lease liabilities, less current portion | 37.5 | 42.1 |
Total operating lease liabilities | 58.6 | 66.6 |
Finance leases: | ||
Property, plant, equipment and mine development | 13.8 | 20.4 |
Accumulated depreciation | (3.1) | (2.5) |
Property, plant, equipment and mine development, net | 10.7 | 17.9 |
Current portion of long-term debt | 5.9 | 21.5 |
Long-term debt, less current portion | 11.4 | 5.8 |
Total finance lease liabilities | $ 17.3 | $ 27.3 |
Weighted average remaining lease term (years) | ||
Operating leases | 3 years 4 months 24 days | |
Finance leases | 8 years 2 months 12 days | |
Weighted average discount rate | ||
Operating leases | 6.70% | |
Finance leases | 10.10% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 8.3 | $ 12.8 |
Operating cash flows for finance leases | 0.7 | 0.2 |
Financing cash flows for finance leases | 1.3 | 5.8 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 3.1 | 1.3 |
Finance leases | $ 3.6 | $ 0.1 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 | $ 17.5 | |
2022 | 18.6 | |
2023 | 16.7 | |
2024 | 6 | |
2025 | 3.4 | |
2026 and thereafter | 3.8 | |
Total lease payments | 66 | |
Less imputed interest | (7.4) | |
Total lease liabilities | 58.6 | $ 66.6 |
Finance Leases | ||
2021 | 5.6 | |
2022 | 7.1 | |
2023 | 1.6 | |
2024 | 0.7 | |
2025 | 0.5 | |
2026 and thereafter | 7.7 | |
Total lease payments | 23.2 | |
Less imputed interest | (5.9) | |
Total finance lease liabilities | $ 17.3 | $ 27.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Taxes | ||
Income tax provision (benefit) | $ (1.8) | $ 3 |
Extinguishment of Debt, Gain (Loss), Income Tax | 60 | |
Foreign Tax Authority | ||
Income Taxes | ||
Income tax provision (benefit) | $ (0.2) | $ (3.3) |
Long-term Debt - Schedule of De
Long-term Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Jan. 29, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Finance lease obligations | $ 17.3 | $ 27.3 | |
Less: Debt issuance costs | (56.8) | (42.7) | |
Total debt | 1,480.7 | 1,547.8 | |
Less: Current portion of long-term debt | 69.4 | 44.9 | |
Long-term debt | 1,411.3 | 1,502.9 | |
Senior Notes | 6.000% Senior Secured Notes due March 2022 (2022 Notes) | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 60.3 | 459 | |
Stated interest rate | 6.00% | ||
Senior Notes | 8.500% Senior Secured Notes due December 2024 (Peabody Notes) | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 172.7 | 0 | |
Stated interest rate | 8.50% | ||
Senior Notes | 10.000% Senior Secured Notes due December 2024 (Co-Issuer Notes) | |||
Debt Instrument [Line Items] | |||
Long-term debt | 193.9 | 0 | |
Stated interest rate | 10.00% | ||
Senior Notes | 6.375% Senior Secured Notes due March 2025 (2025 Notes) | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 500 | 500 | |
Stated interest rate | 6.375% | ||
Term Loan | Senior Secured Term Loan due 2024 (Co-Issuer Term Loan) | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 206 | 0 | |
Stated interest rate | 10.00% | ||
Term Loan | Senior Secured Term Loan due 2025, net of original issue discount (Senior Secured Term Loan) | |||
Debt Instrument [Line Items] | |||
Long-term debt | 387.3 | 388.2 | |
Line of credit | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 216 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) | Jan. 29, 2021 | Apr. 30, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Aug. 09, 2018 | Apr. 03, 2017 | Feb. 15, 2017 |
Debt Instrument [Line Items] | |||||||||
Debt issuance cost | $ 56,800,000 | $ 56,800,000 | $ 42,700,000 | ||||||
Interest expense | 52,400,000 | $ 33,100,000 | |||||||
Gain on early debt extinguishment | 3,500,000 | 0 | |||||||
Letters of credit outstanding, amount | 423,400,000 | $ 423,400,000 | |||||||
Payment For Debt Exchange | $ 9,400,000 | ||||||||
Payment For Debt Exchange Early Tender Premiums | 4,000,000 | ||||||||
Professional Fees | $ 10,600,000 | ||||||||
Senior Notes | 6.000% Senior Secured Notes due March 2022 (2022 Notes) | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 6.00% | 6.00% | |||||||
Gain on early debt extinguishment | $ 0 | ||||||||
Long-term debt | $ 60,300,000 | $ 60,300,000 | 459,000,000 | ||||||
Debt Instrument Exchanged, Aggregate Principal Amount | 398,700,000 | ||||||||
Outstanding borrowings | 60,300,000 | ||||||||
Senior Notes | 6.375% Senior Secured Notes due March 2025 (2025 Notes) | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 6.375% | 6.375% | |||||||
Interest expense | $ 9,200,000 | 9,100,000 | |||||||
Debt instrument, restricted payments basket | $ 650,000,000 | ||||||||
Debt instrument, restricted payments basket | 150,000,000 | ||||||||
Aggregate consent payments | $ 14,900,000 | ||||||||
Long-term debt | $ 500,000,000 | $ 500,000,000 | 500,000,000 | ||||||
Debt Issuance Costs, Gross | $ 25,100,000 | ||||||||
Senior Notes | 6.375% Senior Secured Notes due March 2025 (2025 Notes) | Domestic | |||||||||
Debt Instrument [Line Items] | |||||||||
Collateral, capital stock, percent | 100.00% | 100.00% | |||||||
Senior Notes | 6.375% Senior Secured Notes due March 2025 (2025 Notes) | Export | |||||||||
Debt Instrument [Line Items] | |||||||||
Collateral, non-voting capital stock, percent | 100.00% | 100.00% | |||||||
Senior Notes | 6.375% Senior Secured Notes due March 2025 (2025 Notes) | Effect of Plan | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 500,000,000 | ||||||||
Senior Notes | 8.500% Senior Secured Notes due December 2024 (Peabody Notes) | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 195,100,000 | ||||||||
Stated interest rate | 8.50% | ||||||||
Long-term debt | $ 172,700,000 | $ 172,700,000 | 0 | ||||||
Debt Issuance Costs, Gross | $ 5,700,000 | ||||||||
Interest and Debt Expense | 3,100,000 | ||||||||
Paid-in-Kind Interest | 800,000 | ||||||||
Debt Instrument, Exchange Offer, Required Purchase Amount | $ 22,400,000 | $ 22,400,000 | |||||||
Debt Instrument, Exchange Offer, Required Purchase, Percentage Of Accreted Value | 0.80 | 0.80 | |||||||
Debt Instrument, Interest Rate, Stated Percentage In Cash | 6.00% | ||||||||
Debt Instrument, Interest Rate, Stated Percentage, Paid-In-Kind | 2.50% | ||||||||
Senior Notes | 10.000% Senior Secured Notes due December 2024 (Co-Issuer Notes) | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 193,900,000 | ||||||||
Stated interest rate | 10.00% | ||||||||
Long-term debt | $ 193,900,000 | $ 193,900,000 | 0 | ||||||
Debt Instrument, Secured Liens Term, Percentage Of Capital Stock | 100.00% | ||||||||
Debt Instrument, Covenant, Liquidity Attributable To Co-Issuers | $ 60,000,000 | ||||||||
Debt Issuance Costs, Gross | $ 5,600,000 | ||||||||
Interest and Debt Expense | 3,600,000 | ||||||||
Term Loan | Successor Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense | 3,300,000 | 4,900,000 | |||||||
Original issue discount and deferred finance costs | 10,400,000 | $ 37,300,000 | |||||||
Debt instrument, periodic payment | $ 1,000,000 | ||||||||
Repayments of debt | 500,000,000 | ||||||||
Payment for debt extinguishment or debt prepayment cost | $ 46,000,000 | ||||||||
Term Loan | Successor Credit Agreement | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.75% | ||||||||
Term Loan | Successor Credit Agreement | Effect of Plan | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 950,000,000 | ||||||||
Term Loan | Senior Secured Term Loan due 2024 (Co-Issuer Term Loan) | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 10.00% | ||||||||
Long-term debt | $ 206,000,000 | 206,000,000 | 0 | ||||||
Proceeds from Issuance of Debt | $ 206,000,000 | ||||||||
Debt Issuance Costs, Gross | 7,100,000 | ||||||||
Interest and Debt Expense | 3,700,000 | ||||||||
Line of credit | Revolving credit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 0 | $ 0 | $ 216,000,000 | ||||||
Repayments of lines of credit | 10,000,000 | ||||||||
Line of credit | Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from Issuance of Debt | 324,000,000 | ||||||||
Debt Issuance Costs, Gross | $ 4,100,000 | ||||||||
Interest and Debt Expense | 4,100,000 | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 6.00% | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | ||||||||
Debt Instrument, Covenant, Aggregate Liquidity At End Of Each Quarter | $ 125,000,000 | ||||||||
Debt Instrument, Covenant, Unrestricted Subsidiaries' Liquidity | 200,000,000 | ||||||||
Debt Instrument, Refinancing Transactions, Principal Repurchase Basis | 4 | ||||||||
Debt Instrument, Refinancing Transactions, Principal Amount Basis For Purchase | $ 1 | ||||||||
Debt Instrument, Refinancing Transactions, Debt Repurchases Period | 30 days | ||||||||
Revolving credit facility | 2017 Revolver | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense | $ 1,400,000 | $ 1,700,000 | |||||||
2019 Revolver commitments, matures 2020 | $ 0 |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Costs - Schedule of Net Periodic Benefit (Benefit) Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic pension benefit | $ (8.7) | $ 2.8 |
Defined benefit pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on projected benefit obligation | 5.1 | 7 |
Expected return on plan assets | (5.7) | (7.4) |
Net periodic pension benefit | (0.6) | (0.4) |
Postretirement benefit plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost for benefits earned | 0.2 | 1.1 |
Interest cost on projected benefit obligation | 2.9 | 5.5 |
Expected return on plan assets | (0.2) | (0.4) |
Amortization of prior service credit | (11) | (2.2) |
Net periodic pension benefit | $ (8.1) | $ 4 |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Costs - Narrative (Details) | Mar. 31, 2021 |
Defined benefit pension plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Funding threshold | 80.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | $ 981.3 | |
Balance, end of period | 891.5 | $ 2,533.3 |
Foreign Currency Translation Adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 1.8 | |
Reclassification from other comprehensive income to earnings | 0 | |
Current period change | (0.2) | |
Balance, end of period | 1.6 | |
Prior Service Credit Associated with Postretirement Plans | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 204 | |
Reclassification from other comprehensive income to earnings | (11) | 2.2 |
Current period change | 0 | |
Balance, end of period | 193 | |
Accumulated other comprehensive income | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 205.8 | 31.6 |
Reclassification from other comprehensive income to earnings | (11) | |
Current period change | (0.2) | |
Balance, end of period | $ 194.6 | $ 22.6 |
Other Events - Narrative (Detai
Other Events - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Commercial Events [Line Items] | ||
Restructuring charges | $ 2.1 | $ 6.5 |
Earnings per Share (EPS) - Narr
Earnings per Share (EPS) - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Antidilutive shares excluded from EPS calculation (in shares) | 1.3 | 3 |
Earnings per Share (EPS) - Calc
Earnings per Share (EPS) - Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
EPS numerator: | ||
Loss from continuing operations, net of income taxes | $ (77.7) | $ (129.3) |
Less: Net income (loss) attributable to noncontrolling interests | 0.4 | (1.8) |
Loss from continuing operations attributable to common stockholders | (78.1) | (127.5) |
Loss from discontinued operations, net of income taxes | (2) | (2.2) |
Net loss attributable to common stockholders | $ (80.1) | $ (129.7) |
EPS denominator: | ||
Weighted average shares outstanding — basic and diluted | 98.4 | 97.2 |
Basic EPS attributable to common stockholders: | ||
Basic loss per share | $ (0.81) | $ (1.33) |
Basic and diluted EPS attributable to common stockholders: | ||
(Loss) income from continuing operations (in dollars per share) | (0.79) | (1.31) |
Loss from discontinued operations (in dollars per share) | (0.02) | (0.02) |
Net loss attributable to common stockholders | $ (0.81) | $ (1.33) |
Financial Instruments and Oth_2
Financial Instruments and Other Guarantees (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Guarantee Obligations [Line Items] | |||
Letters of credit outstanding, amount | $ 423,400,000 | ||
Surety bonds amount | 1,570,800,000 | ||
Asset retirement obligations | 735,900,000 | ||
Surety bonds issued to support asset retirement obligations | 1,394,500,000 | ||
Letters of credit issued to support asset retirement obligations | 297,700,000 | ||
Net interest expense | 52,400,000 | $ 33,100,000 | |
Accounts Receivable Securitization Program, April 1, 2022 | Secured debt | |||
Guarantee Obligations [Line Items] | |||
Letters of credit outstanding, amount | 120,800,000 | ||
Line of credit facility, maximum borrowing capacity | 250,000,000 | ||
Outstanding borrowings | 0 | ||
Accounts Receivable from Securitization | 800,000 | ||
Collateral posted | 43,500,000 | $ 0 | |
Net interest expense | $ 700,000 | ||
Secured debt | Accounts Receivable Securitization Program, April 1, 2022 | London Interbank Offered Rate (LIBOR) Swap Rate | |||
Guarantee Obligations [Line Items] | |||
Basis spread on variable rate | 1.50% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Capital Addition Purchase Commitments $ in Millions | Mar. 31, 2021USD ($) |
Long-term Purchase Commitment [Line Items] | |
Unrecorded unconditional purchase obligation (within next five years) | $ 46 |
Unrecorded unconditional purchase obligation (within next 12 months) | $ 38.4 |
Segment Information - Segment R
Segment Information - Segment Results (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reportable segment results | ||
Revenues | $ 651.3 | $ 846.2 |
Adjusted EBITDA | 61.1 | 36.8 |
Seaborne Thermal Mining | ||
Reportable segment results | ||
Revenues | 176.4 | 201.1 |
Adjusted EBITDA | 28.5 | 55.1 |
Seaborne Metallurgical Mining | ||
Reportable segment results | ||
Revenues | 87.5 | 193.2 |
Adjusted EBITDA | (22.4) | (32.7) |
Powder River Basin Mining | ||
Reportable segment results | ||
Revenues | 228.4 | 266.6 |
Adjusted EBITDA | 30.1 | 25.4 |
Other U.S. Thermal Mining | ||
Reportable segment results | ||
Revenues | 149.3 | 192.3 |
Adjusted EBITDA | 36.2 | 38.5 |
Corporate and Other (1) | ||
Reportable segment results | ||
Revenues | 9.7 | (7) |
Adjusted EBITDA | $ (11.3) | $ (49.5) |
Segment Information - Reconcili
Segment Information - Reconciliation to Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Loss from continuing operations, net of income taxes | $ (77.7) | $ (129.3) |
Depreciation, depletion and amortization | 68.3 | 106 |
Asset retirement obligation expenses | 15.9 | 17.6 |
Restructuring charges | 2.1 | 6.5 |
Transaction costs related to joint ventures | 0 | 4.2 |
Changes in deferred tax asset valuation allowance and reserves and amortization of basis difference related to equity affiliates | (1.5) | (0.7) |
Interest expense | 52.4 | 33.1 |
Gain on early debt extinguishment | (3.5) | 0 |
Interest income | (1.5) | (3.1) |
Unrealized losses on economic hedges | 1.9 | 2.2 |
Unrealized losses (gains) on non-coal trading derivative contracts | 7.6 | (0.1) |
Take-or-pay contract-based intangible recognition | (1.1) | (2.6) |
Income tax (benefit) provision | (1.8) | 3 |
Adjusted EBITDA | $ 61.1 | $ 36.8 |