Cover Page
Cover Page - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 $0.01 per share | |
Trading Symbol | BTU | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding | 143.9 | |
Entity Central Index Key | 0001064728 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,342.5 | $ 679 | $ 3,355.8 | $ 2,053.7 |
Costs and expenses | ||||
Operating costs and expenses (exclusive of items shown separately below) | 838.4 | 649.4 | 2,363 | 1,843.4 |
Depreciation, depletion and amortization | 80.7 | 77.9 | 227.4 | 223.3 |
Asset retirement obligation expenses | 13.1 | 14.3 | 40.8 | 45.3 |
Selling and administrative expenses | 19.6 | 21.1 | 64.5 | 64.2 |
Restructuring charges | 1 | 1.7 | 2.8 | 5.9 |
Other operating (income) loss: | ||||
Net gain on disposals | (5) | (25.8) | (22.7) | (28.2) |
Income from equity affiliates | (27.5) | (15.8) | (120.9) | (11.4) |
Operating profit (loss) | 420.5 | (43.8) | 799.2 | (88.8) |
Interest expense | 33.8 | 45.5 | 110.8 | 143.3 |
Net loss (gain) on early debt extinguishment | 8.7 | (16) | 34.5 | (31.3) |
Interest income | (4.9) | (1.4) | (6.3) | (4.2) |
Net periodic benefit credit, excluding service cost | (12.2) | (8.6) | (36.7) | (26) |
Income (loss) from continuing operations before income taxes | 395.1 | (63.3) | 696.9 | (170.6) |
Income tax provision (benefit) | 10.7 | (3.7) | 21 | (10.3) |
Income (loss) from continuing operations, net of income taxes | 384.4 | (59.6) | 675.9 | (160.3) |
(Loss) income from discontinued operations, net of income taxes | (0.8) | 24.3 | (2.3) | 20 |
Net income (loss) | 383.6 | (35.3) | 673.6 | (140.3) |
Less: Net income attributable to noncontrolling interests | 8.5 | 8.9 | 8.5 | 12.6 |
Net income (loss) attributable to common stockholders | $ 375.1 | $ (44.2) | $ 665.1 | $ (152.9) |
Income (loss) from continuing operations: | ||||
Basic income (loss) per share | $ 2.61 | $ (0.60) | $ 4.72 | $ (1.65) |
Diluted income (loss) per share | 2.34 | (0.60) | 4.33 | (1.65) |
Net income (loss) attributable to common stockholders: | ||||
Basic income (loss) per share | 2.60 | (0.38) | 4.70 | (1.46) |
Diluted income (loss) per share | $ 2.33 | $ (0.38) | $ 4.31 | $ (1.46) |
Asset impairment | $ 1.7 | $ 0 | $ 1.7 | $ 0 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 383.6 | $ (35.3) | $ 673.6 | $ (140.3) |
Postretirement plans (net of $0.0 tax provisions in each period) | (13.4) | (11) | (40.3) | (33) |
Foreign currency translation adjustment | 0.1 | (0.8) | (1.4) | (1.2) |
Other comprehensive loss, net of income taxes | (13.3) | (11.8) | (41.7) | (34.2) |
Comprehensive income (loss) | 370.3 | (47.1) | 631.9 | (174.5) |
Less: Net income attributable to noncontrolling interests | 8.5 | 8.9 | 8.5 | 12.6 |
Comprehensive income (loss) attributable to common stockholders | $ 361.8 | $ (56) | $ 623.4 | $ (187.1) |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 1,354.5 | $ 954.3 |
Accounts receivable, net of allowance for credit losses of $0.0 at September 30, 2022 and December 31, 2021 | 426.4 | 350.5 |
Inventories, net | 277.4 | 226.7 |
Other current assets | 305.8 | 270.2 |
Total current assets | 2,364.1 | 1,801.7 |
Property, plant, equipment and mine development, net | 2,817.6 | 2,950.6 |
Operating lease right-of-use assets | 29 | 35.5 |
Investments and other assets | 220.3 | 162 |
Total assets | 5,431 | 4,949.8 |
Current liabilities | ||
Current portion of long-term debt | 546.9 | 59.6 |
Accounts payable and accrued expenses | 771.2 | 872.1 |
Total current liabilities | 1,318.1 | 931.7 |
Long-term debt, less current portion | 322.3 | 1,078.2 |
Deferred income taxes | 24.5 | 27.3 |
Asset retirement obligations | 660.8 | 654.8 |
Accrued postretirement benefit costs | 203.9 | 212.1 |
Operating lease liabilities, less current portion | 13.3 | 27.2 |
Other noncurrent liabilities | 226.9 | 197.7 |
Total liabilities | 2,769.8 | 3,129 |
Stockholders’ equity | ||
Additional paid-in capital | 3,974.1 | 3,745.6 |
Treasury stock, at cost — 43.2 and 43.0 common shares as of September 30, 2022 and December 31, 2021 | (1,372.9) | (1,370.3) |
Accumulated deficit | (248.1) | (913.2) |
Accumulated other comprehensive income | 256.2 | 297.9 |
Peabody Energy Corporation stockholders’ equity | 2,611.2 | 1,761.8 |
Noncontrolling interests | 50 | 59 |
Total stockholders’ equity | 2,661.2 | 1,820.8 |
Total liabilities and stockholders’ equity | $ 5,431 | $ 4,949.8 |
Treasury stock, shares (in shares) | 43,200,000 | 43,000,000 |
Preferred Stock | ||
Stockholders’ equity | ||
Preferred Stock — $0.01 per share par value; 100.0 shares authorized, no shares issued or outstanding as of September 30, 2022 and December 31, 2021 | $ 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 | ||
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 — $0.01 per share par value; 450.0 shares authorized, 187.1 shares issued and 143.9 shares outstanding as of September 30, 2022 and 176.3 shares issued and 133.3 shares outstanding as of December 31, 2021 | $ 1.9 | $ 1.8 |
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) | 187,100,000 | 176,300,000 |
Common stock, shares outstanding (in shares) | 143,900,000 | 133,300,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Allowance for credit losses | $ 0 | $ 0 |
Stockholders' equity | ||
Treasury stock, shares (in shares) | 43,200,000 | 43,000,000 |
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) | 187,100,000 | 176,300,000 |
Common stock, shares outstanding (in shares) | 143,900,000 | 133,300,000 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Cash Flows From Operating Activities | |||||
Asset impairment | $ 1.7 | $ 0 | $ 1.7 | $ 0 | |
Net income (loss) | 383.6 | (35.3) | 673.6 | (140.3) | |
Loss (income) from discontinued operations, net of income taxes | 0.8 | (24.3) | 2.3 | (20) | |
Income (loss) from continuing operations, net of income taxes | 384.4 | (59.6) | 675.9 | (160.3) | |
Adjustments to reconcile income (loss) from continuing operations, net of income taxes to net cash provided by (used in) operating activities: | |||||
Depreciation, depletion and amortization | 80.7 | 77.9 | 227.4 | 223.3 | |
Noncash interest expense, net | 4.6 | 4.9 | 13.6 | 15.2 | |
Deferred income taxes | (2.8) | (22) | |||
Noncash share-based compensation | 6.6 | 5.6 | |||
Net gain on disposals | (5) | (25.8) | (22.7) | (28.2) | |
Net loss (gain) on early debt extinguishment | 8.7 | (16) | 34.5 | (31.3) | |
Income from equity affiliates | (27.5) | (15.8) | (120.9) | (11.4) | |
Foreign currency option contracts | 4.4 | 5.3 | |||
Changes in current assets and liabilities: | |||||
Accounts receivable | (75.9) | (31.1) | |||
Inventories | (50.7) | 37.1 | |||
Other current assets | (40.6) | (11.1) | |||
Accounts payable and accrued expenses | (61.6) | 42.5 | |||
Collateral arrangements | (36.8) | (5) | |||
Asset retirement obligations | 6 | 17.4 | |||
Workers’ compensation obligations | (2.5) | 0 | |||
Postretirement benefit obligations | (48.5) | (43.9) | |||
Pension obligations | (1.7) | (1.8) | |||
Other, net | 3.5 | 0.2 | |||
Net cash provided by continuing operations | 508.9 | 0.5 | |||
Net cash used in discontinued operations | (4.8) | (18.9) | |||
Net cash provided by (used in) operating activities | 504.1 | (18.4) | |||
Cash Flows From Investing Activities | |||||
Additions to property, plant, equipment and mine development | (104.5) | (123.6) | |||
Changes in accrued expenses related to capital expenditures | (8.3) | (3.3) | |||
Proceeds from disposal of assets, net of receivables | 30.6 | 12.7 | |||
Contributions to joint ventures | (475.1) | (363.8) | |||
Distributions from joint ventures | 465.2 | 350.3 | |||
Advances to related parties | (1.3) | (0.4) | |||
Cash receipts from Middlemount Coal Pty Ltd and other related parties | 154.9 | 8.4 | |||
Other, net | (0.4) | 0 | |||
Net cash provided by (used in) investing activities | 61.1 | (119.7) | |||
Cash Flows From Financing Activities | |||||
Proceeds from long-term debt | 545 | 0 | |||
Repayments of long-term debt | (846.3) | (133.6) | |||
Payment of debt issuance and other deferred financing costs | (21.1) | (22.5) | |||
Proceeds from common stock issuances, net of costs | 222 | 177.2 | |||
Repurchase of employee common stock relinquished for tax withholding | (2.6) | (1.3) | |||
Distributions to noncontrolling interests | (17.5) | (3.9) | |||
Net cash (used in) provided by financing activities | (120.5) | 15.9 | |||
Net change in cash, cash equivalents and restricted cash | 444.7 | (122.2) | |||
Cash, cash equivalents and restricted cash at beginning of period | 954.3 | 709.2 | $ 709.2 | ||
Cash, cash equivalents and restricted cash at end of period (1) | 1,399 | $ 587 | 1,399 | $ 587 | 954.3 |
Cash and cash equivalents | 1,354.5 | 1,354.5 | $ 954.3 | ||
Restricted Cash | $ 44.5 | $ 44.5 |
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 | Accumulated other comprehensive income | Noncontrolling interests |
Balance, beginning of period at Dec. 31, 2020 | $ 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 | 5.6 | ||||||
Common stock issuances, net of costs | 176.7 | ||||||
Net income (loss) | $ (140.3) | (152.9) | 12.6 | ||||
Repurchase of employee common stock relinquished for tax withholding | 1.3 | (1.3) | |||||
Postretirement plans (net of $0.0 tax provisions in each period) | (33) | (33) | |||||
Foreign currency translation adjustment | (1.2) | (1.2) | |||||
Distributions to noncontrolling interests | (3.9) | ||||||
Common stock issuances, net of costs | 0.2 | ||||||
Balance, end of period at Sep. 30, 2021 | 1,042.3 | 1.6 | 3,605.1 | (1,370.2) | (1,426.2) | 171.6 | 60.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued in exchange for debt retirement | 58.2 | ||||||
Balance, beginning of period at Jun. 30, 2021 | 1.5 | 3,463.8 | (1,370.2) | (1,382) | 183.4 | 55.3 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation for equity-classified awards | 1.7 | ||||||
Common stock issuances, net of costs | 111.9 | ||||||
Net income (loss) | (35.3) | (44.2) | 8.9 | ||||
Repurchase of employee common stock relinquished for tax withholding | 0 | ||||||
Postretirement plans (net of $0.0 tax provisions in each period) | (11) | (11) | |||||
Foreign currency translation adjustment | (0.8) | (0.8) | |||||
Distributions to noncontrolling interests | (3.8) | ||||||
Common stock issuances, net of costs | 0.1 | ||||||
Balance, end of period at Sep. 30, 2021 | 1,042.3 | 1.6 | 3,605.1 | (1,370.2) | (1,426.2) | 171.6 | 60.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued in exchange for debt retirement | 27.7 | ||||||
Balance, beginning of period at Dec. 31, 2021 | 1,820.8 | 1.8 | 3,745.6 | (1,370.3) | (913.2) | 297.9 | 59 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation for equity-classified awards | 6.6 | ||||||
Common stock issuances, net of costs | 221.9 | ||||||
Net income (loss) | 673.6 | 665.1 | 8.5 | ||||
Repurchase of employee common stock relinquished for tax withholding | 2.6 | (2.6) | |||||
Postretirement plans (net of $0.0 tax provisions in each period) | (40.3) | (40.3) | |||||
Foreign currency translation adjustment | (1.4) | (1.4) | |||||
Distributions to noncontrolling interests | (17.5) | ||||||
Common stock issuances, net of costs | 0.1 | ||||||
Balance, end of period at Sep. 30, 2022 | 2,661.2 | 1.9 | 3,974.1 | (1,372.9) | (248.1) | 256.2 | 50 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued in exchange for debt retirement | 0 | ||||||
Balance, beginning of period at Jun. 30, 2022 | 1.9 | 3,972.9 | (1,372.9) | (623.2) | 269.5 | 45.2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation for equity-classified awards | 1.2 | ||||||
Common stock issuances, net of costs | 0 | ||||||
Net income (loss) | 383.6 | 375.1 | 8.5 | ||||
Repurchase of employee common stock relinquished for tax withholding | 0 | ||||||
Postretirement plans (net of $0.0 tax provisions in each period) | (13.4) | (13.4) | |||||
Foreign currency translation adjustment | 0.1 | 0.1 | |||||
Distributions to noncontrolling interests | (3.7) | ||||||
Common stock issuances, net of costs | 0 | ||||||
Balance, end of period at Sep. 30, 2022 | $ 2,661.2 | $ 1.9 | 3,974.1 | $ (1,372.9) | $ (248.1) | $ 256.2 | $ 50 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued in exchange for debt retirement | $ 0 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated other comprehensive income | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
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, revenue 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, 2021. 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, 2021 has been derived from the Company’s audited consolidated balance sheet at that date. The Company’s results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2022. |
Newly Adopted Accounting Standa
Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented | 9 Months Ended |
Sep. 30, 2022 | |
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 Convertible Debt. In August 2020, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2020-06, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. Among other changes, ASU 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as a derivative under Accounting Standards Codification Topic 815, Derivatives and Hedging or (2) a convertible debt instrument was issued at a substantial premium. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, and can be adopted on either a fully retrospective or modified retrospective basis. The Company adopted ASU 2020-06, effective January 1, 2022. In the Company’s accompanying condensed consolidated balance sheets, the adoption of the new standard impacted the accounting for the Company’s $320.0 million of convertible debt issued in March 2022, as further described in Note 9. “Long-term Debt.” In particular, because the related senior notes have cash conversion features, bifurcation of the principal balance between debt and equity is no longer applicable. Additionally, this guidance requires the application of the “if-converted” method to calculate the impact of convertible instruments on diluted earnings per share, as reflected in the Company’s calculations within Note 11. “Earnings per Share (EPS).” Accounting Standards Not Yet Implemented Reference Rate Reform. In March 2020, ASU 2020-04 was issued, which provides temporary optional expedients to applying the reference rate reform guidance to contracts that reference London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued. Under this update, contract modifications resulting in a new reference rate may be accounted for as a continuation of the existing contract. This guidance is effective upon issuance of the update and applies to contract modifications made through December 31, 2022. The Company has certain debt which utilizes a U.S. Dollar one-month LIBOR rate, which is expected to be published until June 2023. The LIBOR rate is likely to be replaced by a similar secured or unsecured overnight financing rate. The Company cannot estimate the impact of such variable rates on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021, for the Company’s policies regarding “Revenue” and “Accounts receivable, net.” Disaggregation of Revenue 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 September 30, 2022 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 $ 44.8 $ — $ 290.2 $ 259.8 $ — $ 594.8 Export 308.3 — — — — 308.3 Total thermal 353.1 — 290.2 259.8 — 903.1 Metallurgical coal Export — 309.9 — — — 309.9 Total metallurgical — 309.9 — — — 309.9 Other (2) 0.1 0.8 0.3 1.6 126.7 129.5 Revenue $ 353.2 $ 310.7 $ 290.5 $ 261.4 $ 126.7 $ 1,342.5 Three Months Ended September 30, 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 $ 41.1 $ — $ 247.3 $ 181.0 $ — $ 469.4 Export 219.4 — — 2.2 — 221.6 Total thermal 260.5 — 247.3 183.2 — 691.0 Metallurgical coal Export — 176.8 — — — 176.8 Total metallurgical — 176.8 — — — 176.8 Other (2) 0.2 2.7 (0.2) 1.4 (192.9) (188.8) Revenue $ 260.7 $ 179.5 $ 247.1 $ 184.6 $ (192.9) $ 679.0 Nine Months Ended September 30, 2022 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 $ 125.0 $ — $ 771.6 $ 682.5 $ — $ 1,579.1 Export 833.7 — — 1.0 — 834.7 Total thermal 958.7 — 771.6 683.5 — 2,413.8 Metallurgical coal Export — 1,161.2 — — — 1,161.2 Total metallurgical — 1,161.2 — — — 1,161.2 Other (2) 0.6 4.6 (0.2) 5.9 (230.1) (219.2) Revenue $ 959.3 $ 1,165.8 $ 771.4 $ 689.4 $ (230.1) $ 3,355.8 Nine Months Ended September 30, 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 $ 132.7 $ — $ 724.5 $ 487.8 $ — $ 1,345.0 Export 497.7 — — 3.4 — 501.1 Total thermal 630.4 — 724.5 491.2 — 1,846.1 Metallurgical coal Export — 383.8 — — — 383.8 Total metallurgical — 383.8 — — — 383.8 Other (2) 0.8 4.2 (0.4) 4.8 (185.6) (176.2) Revenue $ 631.2 $ 388.0 $ 724.1 $ 496.0 $ (185.6) $ 2,053.7 (1) Corporate and Other includes the following: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (Dollars in millions) Unrealized gains (losses) on derivative contracts related to forecasted sales $ 90.4 $ (238.4) $ (235.1) $ (264.0) Realized losses on derivative contracts related to forecasted sales (117.4) (13.1) (308.0) (28.1) Revenue from physical sale of coal (3) 150.7 56.9 294.0 98.0 Trading revenue 0.3 0.7 10.7 1.4 Other (2) 2.7 1.0 8.3 7.1 Total Corporate and Other $ 126.7 $ (192.9) $ (230.1) $ (185.6) (2) Includes revenue 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. (3) Includes revenue recognized upon the physical sale of coal purchased from the Company’s operating segments and sold to customers through the Company’s coal trading business as part of settling certain derivative contracts. Primarily represents the difference between the price contracted with the customer and the price allocated to the operating segment. Accounts Receivable “Accounts receivable, net” at September 30, 2022 and December 31, 2021 consisted of the following: September 30, 2022 December 31, 2021 (Dollars in millions) Trade receivables, net $ 387.1 $ 307.0 Miscellaneous receivables, net 39.3 43.5 Accounts receivable, net $ 426.4 $ 350.5 None of the above receivables included allowances for credit losses at September 30, 2022 or December 31, 2021. No charges for credit losses were recognized during the three and nine months ended September 30, 2022 or 2021. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories “Inventories, net” as of September 30, 2022 and December 31, 2021 consisted of the following: September 30, 2022 December 31, 2021 (Dollars in millions) Materials and supplies, net $ 121.7 $ 102.1 Raw coal 58.5 54.6 Saleable coal 97.2 70.0 Inventories, net $ 277.4 $ 226.7 |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Method Investments | Equity Method Investments The Company had total equity method investments and financing receivables of $32.8 million and $62.2 million reflected in “Investments and other assets” in the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021, respectively, related to Middlemount Coal Pty Ltd (Middlemount). Included in “Income from equity affiliates” in the unaudited condensed consolidated statements of operations was income related to Middlemount of $28.4 million and $15.8 million during the three months ended September 30, 2022 and 2021, respectively, and $123.6 million and $11.4 million during the nine months ended September 30, 2022 and 2021, respectively. The Company received cash payments from Middlemount of $151.5 million and $7.6 million during the nine months ended September 30, 2022 and 2021, respectively. One of the Company’s Australian subsidiaries is party to an agreement to provide a revolving loan to Middlemount. The Compa ny’s participation in the revolving loan will not, at any time, exceed its 50% equity interest of the revolving loan limit, which was $50 million Australian dollars at September 30, 2022. The revolving loan bears interest at 10% per annum and expires on December 31, 2023. There was no outstanding revolving loan at September 30, 2022 or December 31, 2021. |
Derivatives and Fair Value Meas
Derivatives and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Derivatives and Fair Value Measurements | Derivatives and Fair Value Measurements Derivatives 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. On a limited basis, the Company engages in the direct and brokered trading of coal and freight-related contracts. 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. The Company had no diesel fuel or interest rate derivatives in place as of September 30, 2022. Foreign Currency Option Contracts As of September 30, 2022, the Company had currency options outstanding with an aggregate notional amount of $855.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar expenditures over the nine-month period ending June 30, 2023. 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 $0.70 to $0.80 over the nine-month period ending June 30, 2023. Derivative Contracts Related to Forecasted Sales As of September 30, 2022, the Company held coal derivative contracts related to a portion of its forecasted sales with an aggregate notional volume of 1.0 million tonnes. Such financial contracts may include futures, forwards and options. Included in this total are 0.9 million tonnes related to financial derivatives entered to support the profitability of the Wambo Underground Mine as part of a strategy to extend the mine life through mid-2023. Of this total, 0.3 million tonnes will settle in 2022 and 0.6 million tonnes will settle in 2023. The remaining 0.1 million tonnes aggregate notional volume related to other coal financial contracts will settle in 2022. Additionally, the Company classifies certain physical forward sales contracts as derivatives for which the normal purchase, normal sales exception does not apply. During the three months ended September 30, 2022, the Company recorded a net unrealized mark-to-market gain of $90.4 million on these coal derivative contracts, which includes approximately $49 million of unrealized mark-to-market gains on financial derivatives and approximately $41 million of unrealized mark-to-market gains on physical forward sales contracts. During the nine months ended September 30, 2022, the Company recorded a net unrealized mark-to-market loss of $235.1 million on these coal derivative contracts, which includes approximately $257 million of unrealized mark-to-market losses on financial derivatives and approximately $22 million of unrealized mark-to-market gains on physical forward sales contracts. Financial Trading Contracts On a limited basis, the Company may enter coal or freight derivative contracts for trading purposes. Such financial contracts may include futures, forwards and options. The Company held nominal financial trading contracts as of September 30, 2022. 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. September 30, 2022 December 31, 2021 Asset Derivative Liability Derivative Asset Derivative Liability Derivative (Dollars in millions) Foreign currency option contracts $ 1.4 $ — $ 1.4 $ — Derivative contracts related to forecasted sales 236.0 (633.7) 59.5 (184.2) Financial trading contracts 12.2 — 3.4 — Total derivatives 249.6 (633.7) 64.3 (184.2) Effect of counterparty netting (236.0) 236.0 (59.5) 59.5 Variation margin (received) posted (12.2) 390.0 (3.4) 95.2 Net derivatives and variation margin as classified in the balance sheets $ 1.4 $ (7.7) $ 1.4 $ (29.5) The Company generally posts or receives variation margin cash with its clearing broker on the majority of its financial derivatives as market values of the financial derivatives fluctuate. As of September 30, 2022, the Company had posted $465.9 million aggregate margin cash, consisting of $377.8 million variation margin cash and $88.1 million initial margin. As of December 31, 2021, the Company had posted $130.1 million aggregate margin cash, consisting of $91.8 million variation margin cash and $38.3 million initial margin. The net amount of asset derivatives, net of variation margin, is included in “Other current assets” and the net amount of liability derivatives, net of variation margin, is included in “Accounts payable and accrued expenses” in the accompanying condensed consolidated balance sheets. The amounts of initial margin are not included with the derivatives presented in the tabular disclosures 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 derivative financial instruments and thus changes in fair value are reflected in current earnings. The tables below show the amounts of pretax gains and losses related to the Company’s derivatives and their classification within the accompanying unaudited condensed consolidated statements of operations. Three Months Ended September 30, 2022 Total (loss) gain recognized in income (Loss) gain realized in income on derivatives Unrealized (loss) gain recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ (3.0) $ (1.6) $ (1.4) Derivative contracts related to forecasted sales Revenue (27.0) (117.4) 90.4 Financial trading contracts Revenue 0.3 0.5 (0.2) Total $ (29.7) $ (118.5) $ 88.8 Three Months Ended September 30, 2021 Total (loss) gain recognized in income (Loss) gain realized in income on derivatives Unrealized gain (loss) recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ (1.0) $ (1.6) $ 0.6 Derivative contracts related to forecasted sales Revenue (251.5) (13.1) (238.4) Financial trading contracts Revenue 0.7 0.7 — Total $ (251.8) $ (14.0) $ (237.8) Nine Months Ended September 30, 2022 Total (loss) gain recognized in income (Loss) gain realized in income on derivatives Unrealized (loss) gain recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ (8.2) $ (3.8) $ (4.4) Derivative contracts related to forecasted sales Revenue (543.1) (308.0) (235.1) Financial trading contracts Revenue 10.7 0.6 10.1 Total $ (540.6) $ (311.2) $ (229.4) Nine Months Ended September 30, 2021 Total (loss) gain recognized in income Gain (loss) realized in income on derivatives Unrealized (loss) gain recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ (5.3) $ 3.0 $ (8.3) Derivative contracts related to forecasted sales Revenue (292.1) (28.1) (264.0) Financial trading contracts Revenue 1.4 0.6 0.8 Total $ (296.0) $ (24.5) $ (271.5) 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 (liability) asset positions for which fair value is measured on a recurring basis. Variation margin cash associated with the derivative balances is excluded from this table. September 30, 2022 Level 1 Level 2 Level 3 Total (Dollars in millions) Foreign currency option contracts $ — $ 1.4 $ — $ 1.4 Derivative contracts related to forecasted sales — (397.7) — (397.7) Financial trading contracts — 12.2 — 12.2 Equity securities — — 2.3 2.3 Total net (liabilities) assets $ — $ (384.1) $ 2.3 $ (381.8) December 31, 2021 Level 1 Level 2 Level 3 Total (Dollars in millions) Foreign currency option contracts $ — $ 1.4 $ — $ 1.4 Derivative contracts related to forecasted sales — (124.7) — (124.7) Financial trading contracts — 3.4 — 3.4 Equity securities — — 4.0 4.0 Total net (liabilities) assets $ — $ (119.9) $ 4.0 $ (115.9) 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. • Derivative contracts related to forecasted sales and financial 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 September 30, 2022 and December 31, 2021: • Cash and cash equivalents, restricted cash, accounts receivable, including those within the Company’s accounts receivable securitization program, margining cash, 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. September 30, 2022 December 31, 2021 (Dollars in millions) Total debt at par value $ 891.0 $ 1,173.2 Less: Unamortized debt issuance costs and original issue discount (21.8) (35.4) Net carrying amount $ 869.2 $ 1,137.8 Estimated fair value $ 1,034.0 $ 1,136.5 Generally, the Company’s Level 3 instruments or contracts are valued using bid/ask price quotations and other market assessments obtained from multiple, independent third-party brokers or other transactional data incorporated into internally-generated discounted cash flow models. Decreases in the number of third-party brokers or market liquidity could erode the quality of market information and therefore the valuation of the Company’s market positions. The Company’s valuation techniques include basis adjustments to the foregoing price inputs for quality, such as sulfur and ash content, location differentials, expressed as port and freight costs, and credit risk. The Company’s risk management function independently validates the Company’s valuation inputs, including unobservable inputs, with third-party information and settlement prices from other sources where available. A daily process is performed to analyze market price changes and changes to the portfolio. Further periodic validation occurs at the time contracts are settled with the counterparty. These valuation techniques have been consistently applied in all periods presented, and the Company believes it has obtained the most accurate information available for the types of derivative contracts held. Significant increases or decreases in the inputs in isolation could result in a significantly higher or lower fair value measurement. The unobservable inputs do not have a direct interrelationship; therefore, a change in one unobservable input would not necessarily correspond with a change in another unobservable input. The Company had no transfers between Levels 1, 2 and 3 during the three and nine months ended September 30, 2022 and 2021. The Company’s policy is to value all transfers between levels using the beginning of period valuation. The Company recorded an impairment loss of $1.7 million related to its Level 3 investment in equity securities during the three months ended September 30, 2022. |
Property, Plant, Equipment and
Property, Plant, Equipment and Mine Development | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 and December 31, 2021 is set forth in the table below: September 30, 2022 December 31, 2021 (Dollars in millions) Land and coal interests $ 2,487.3 $ 2,494.1 Buildings and improvements 596.1 550.8 Machinery and equipment 1,440.0 1,386.2 Less: Accumulated depreciation, depletion and amortization (1,705.8) (1,480.5) Property, plant, equipment and mine development, net $ 2,817.6 $ 2,950.6 Asset Impairment and Other At-Risk Assets The Company has identified certain assets with an aggregate carrying value of $209.2 million at September 30, 2022 in its Other U.S. Thermal Mining segment whose recoverability is most sensitive to customer demand, customer concentration risk and future economic viability. The Company conducted a review of those assets as of September 30, 2022 and determined that no impairment charges were necessary as of that date. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income TaxesThe Company's effective tax rate before remeasurement for the nine months ended September 30, 2022 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 is expecting to utilize substantial net operating losses in Australia and the U.S. in 2022 based on estimated pretax income. The Company’s income tax provision of $10.7 million and income tax benefit of $3.7 million for the three months ended September 30, 2022 and 2021, respectively, included tax benefits of $1.6 million and $1.1 million, respectively, related to the remeasurement of foreign income tax accounts. The Company’s income tax provision of $21.0 million and income tax benefit of $10.3 million for the nine months ended September 30, 2022 and 2021, respectively, included tax benefits of $3.5 million and $1.6 million, respectively, related to the remeasurement of foreign income tax accounts. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt The Company’s total indebtedness as of September 30, 2022 and December 31, 2021 consisted of the following: Debt Instrument (defined below, as applicable) September 30, 2022 December 31, 2021 (Dollars in millions) 6.000% Senior Secured Notes due March 2022 (2022 Notes) $ — $ 23.1 8.500% Senior Secured Notes due December 2024 (2024 Peabody Notes) — 62.6 10.000% Senior Secured Notes due December 2024 (2024 Co-Issuer Notes) 81.6 193.9 Senior Secured Term Loan due 2024 (Co-Issuer Term Loans) 114.6 206.0 6.375% Senior Secured Notes due March 2025 (2025 Notes) 66.2 334.9 Senior Secured Term Loan due 2025, net of original issue discount (Senior Secured Term Loan) 282.6 322.8 3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) 320.0 — Finance lease obligations 25.7 29.3 Less: Debt issuance costs (21.5) (34.8) 869.2 1,137.8 Less: Current portion of long-term debt (1) 546.9 59.6 Long-term debt $ 322.3 $ 1,078.2 (1) The Company has the positive intent and ability to retire additional debt in the next twelve months using working capital. As such, all debt with the exception of the 2028 Convertible Notes and finance lease obligations was classified within “Current portion of long-term debt” in the accompanying condensed consolidated balance sheets at September 30, 2022. 2021 Financing Activity and Subsequent Debt Repurchases During the first quarter of 2021, the Company completed a series of financing transactions to provide the Company with maturity extensions and covenant relief, while allowing it to maintain near-term operating liquidity. These transactions included a senior notes exchange, a revolving credit facility exchange, various amendments to the Company’s existing debt agreements, and a support agreement with the Company’s surety bond providers. Subsequent to these transactions, the Company completed additional financing transactions during 2021 which included the implementation of an at-the-market equity offering program pursuant to which the Company sold approximately 24.8 million shares of common stock for net cash proceeds of $269.8 million, the retirement of $270.9 million principal amount of existing debt through various open market purchases at an aggregate cost of $232.4 million, and the issuance of an aggregate 10.0 million shares of common stock in exchange for an additional $106.1 million principal amount of existing debt through multiple bilateral transactions with debt holders. In the event of open market purchases of its debt, the terms of the 2024 Peabody Notes - now redeemed as described below - required, and the letter of credit facility entered into by the Company in connection with the 2021 financing activity (Company LC Agreement) requires the Company to make repurchase offers to those debt and lien holders. In general, the repurchase offers equate to 25% of the principal amount of priority lien debt repurchased in the preceding quarter at a price equal to the weighted average repurchase price paid over that quarter. The open market debt repurchases completed during the three months ended December 31, 2021 necessitated a mandatory repurchase offer of up to $38.6 million of 2024 Peabody Notes, at 94.94% of their aggregate accreted value, plus accrued and unpaid interest, and a concurrent repurchase offer of priority lien obligations under the Company LC Agreement. The offer resulted in the valid tender and purchase of $0.1 million aggregate accreted value of 2024 Peabody Notes and $30.0 million aggregate principal and commitment amounts under the Company LC Agreement during the three months ended March 31, 2022. The Company’s purchase of the principal and commitment amounts under the Company LC Agreement was effected by the posting of $28.5 million of collateral with the administrative agent and did not reduce the availability under the facility. During the three months ended September 30, 2022, the Company repurchased $48.8 million aggregate principal amount of its Senior Secured Term Loan and 2025 Notes for $46.6 million in various open market transactions. As a result of these repurchases, the Company made a mandatory offer to repurchase $12.2 million of priority lien obligations under the Company LC Agreement at 95.57% on October 17, 2022. The offer will expire on November 16, 2022. The 2024 Co-Issuer Notes and the Co-Issuer Term Loans are also subject to mandatory prepayment offers at the end of each six-month period, beginning with June 30, 2021, whereby the Excess Cash Flow (as defined in the 2024 Co-Issuer Notes indenture) generated by the Wilpinjong Mine during each such period may be applied to the principal of such notes and loans on a pro rata basis, provided that the liquidity attributable to the Wilpinjong Mine would not fall below $60.0 million. Such prepayments may be accepted or declined at the option of the debt holders. Based upon the Wilpinjong Mine’s results for the six-month period ended December 31, 2021, a required offer to prepay $105.6 million of total principal resulted in the prepayment of $17.2 million of Co-Issuer Term Loans principal and $0.3 million of 2024 Co-Issuer Notes principal during the three months ended March 31, 2022. Based upon the Wilpinjong Mine’s results for the six-month period ended June 30, 2022, the Company offered to prepay $65.1 million of total principal at 103.91% during the three months ended September 30, 2022. The holders of the Co-Issuer Term Loans unanimously declined their $37.9 million pro rata portion of the offer and the holders of the 2024 Co-Issuer Notes tendered for prepayment $18.2 million principal amount of their $27.2 million pro rata portion of the offer. The Company completed the prepayment during the three months ended September 30, 2022. Voluntary repurchases of Co-Issuer Term Loans are permissible through various methods, including a modified Dutch auction process in which the Company may solicit acceptable prices from holders. During the three months ended June 30, 2022, the Company solicited bids from all holders of Co-Issuer Term Loans for the repurchase of up to $50.0 million principal amount, resulting in that full amount of principal being repurchased at a weighted average price of 103.91%, or $52.0 million in total. During the three months ended September 30, 2022, the Company solicited bids from all holders of Co-Issuer Term Loans for the repurchase of up to $75.0 million principal amount, resulting in $20.4 million of principal being repurchased at a weighted average price of 105.91%, or $21.6 million in total. The indenture which governs the 2024 Co-Issuer Notes requires that, within 30 business days following a repurchase of the Co-Issuer Term Loans such as that undertaken through the auction processes described above, the Company must also offer to repurchase an equivalent principal amount of the 2024 Co-Issuer Notes at the equivalent purchase price. Further, the credit agreement which governs the Co-Issuer Term Loans requires parity between the holders of Co-Issuer Term Loans and holders of the 2024 Co-Issuer Notes with respect to repurchase offers. As a result of the modified Dutch auction process completed during the three months ended June 30, 2022, the required equivalent offer to purchase $50.0 million aggregate principal amount of 2024 Co-Issuer Notes was made by the Company on May 26, 2022 and was subsequently increased to $93.9 million, at the Company’s discretion. The offer was fully tendered and the Company completed the repurchase on July 25, 2022 for $97.5 million. The discretionary increase to the 2024 Co-Issuer Notes repurchase offer compelled the Company to offer to repurchase an additional $43.9 million principal amount of Co-Issuer Term Loans at 103.91% which resulted in the valid tender and purchase of $3.8 million principal for $4.0 million during the three months ended September 30, 2022. As a result of the modified Dutch auction process completed during the three months ended September 30, 2022, the Company offered to repurchase the outstanding $81.6 million principal amount of 2024 Co-Issuer Notes at 105.91% on September 19, 2022, which exceeded the required offer amount. To maintain parity with respect to the holders of the Co-Issuer Term Loans, the Company simultaneously offered to repurchase $61.2 million principal amount of Co-Issuer Term Loans at 105.91%. Both offers will expire on November 18, 2022. The Company’s various debt repurchases during 2022 resulted in the realization of net losses from early debt extinguishment of $8.7 million and $11.5 million during the three months and nine months ended September 30, 2022, respectively. 3.250% Convertible Senior Notes due 2028 On March 1, 2022, through a private offering, the Company issued $320.0 million in aggregate principal amount of 3.250% Convertible Senior Notes due 2028 (the 2028 Convertible Notes). The 2028 Convertible Notes are senior unsecured obligations of the Company and are governed under an indenture. The Company used the proceeds of the offering of the 2028 Convertible Notes to redeem the remaining $62.6 million of its outstanding 2024 Peabody Notes and, together with available cash, approximately $257.4 million of its outstanding 2025 Notes, and to pay related premiums, fees and expenses relating to the offering of the 2028 Convertible Notes and the redemptions. The Company capitalized $11.2 million of debt issuance costs related to the offering and recognized a loss on early debt extinguishment of $23.0 million during the three months ended March 31, 2022. The 2028 Convertible Notes will mature on March 1, 2028, unless earlier converted, redeemed or repurchased in accordance with their terms. The 2028 Convertible Notes will bear interest from March 1, 2022 at a rate of 3.250% per year payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2022. The 2028 Convertible Notes are convertible at the option of the holders only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ended June 30, 2022, if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the Measurement Period) in which the trading price per $1,000 principal amount of 2028 Convertible Notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price per share of the Company’s common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on the Company’s common stock; (4) if the Company calls any 2028 Convertible Notes for redemption; and (5) at any time from, and including, September 1, 2027 until the close of business on the second scheduled trading day immediately before the maturity date. Upon conversion, the Company may satisfy its conversion obligation by paying or delivering, as applicable, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the indenture. The initial conversion rate for the 2028 Convertible Notes will be 50.3816 shares of the Company’s common stock per $1,000 principal amount of 2028 Convertible Notes, which represents an initial conversion price of approximately $19.85 per share of the Company’s common stock. The initial conversion price represents a premium of approximately 32.5% to the $14.98 per share closing price of the Company’s common stock on February 24, 2022. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the indenture. If certain corporate events described in the indenture occur prior to the maturity date, or the Company delivers a notice of redemption (as described below), the conversion rate will be increased for a holder who elects to convert its 2028 Convertible Notes in connection with such corporate event or notice of redemption, as the case may be, in certain circumstances. The Company may not redeem the 2028 Convertible Notes prior to March 1, 2025. The Company may redeem for cash all or any portion of the 2028 Convertible Notes, at its option, on or after March 1, 2025 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to 100% of the principal amount of the 2028 Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (2) the trading day immediately before the date the Company sends such notice. However, the Company may not redeem less than all of the outstanding 2028 Convertible Notes unless at least $75 million aggregate principal amount of 2028 Convertible Notes are outstanding and not called for redemption as of the time the Company sends the related redemption notice. No sinking fund is provided for the 2028 Convertible Notes. If the Company undergoes a fundamental change (as defined in the indenture), noteholders may require the Company to repurchase their 2028 Convertible Notes at a cash repurchase price equal to 100% of the principal amount of the 2028 Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. Margin Financing Arrangement On March 7, 2022, the Company entered into a credit agreement, by and among the Company, as borrower, Goldman Sachs Lending Partners LLC, as administrative agent, and the lenders party thereto (the Credit Agreement). The Credit Agreement provided for a $150 million unsecured revolving credit facility (the Revolving Facility), was scheduled to mature on April 1, 2025 and bore interest at a rate of 10.0% per annum on drawn amounts. The Revolving Facility was intended to support the Company’s near-term liquidity requirements, particularly with respect to the cash margin requirements associated with the Company’s coal derivative contracts, which fluctuate depending upon underlying market coal prices. Concurrently with the Credit Agreement, the Company entered into an agreement with Goldman Sachs & Company LLC to act as sales agent for at-the-market equity offerings of up to $225.0 million of the Company’s common stock. During the three months ended March 31, 2022, the Company borrowed and repaid $225.0 million under the Revolving Facility using net proceeds of $222.0 million from at-the-market issuances of 10.1 million shares of common stock and available cash. The Company made no additional borrowings and terminated the facility on August 4, 2022. Retirement of 2022 Notes On March 31, 2022, the Company retired the remaining principal balance of 2022 Notes upon maturity for $23.1 million. Interest Charges The following table presents the components of the Company’s interest expense related to its indebtedness and financial assurance instruments such as surety bonds and letters of credit. Additionally, the table sets forth the amount of cash paid for interest and the amount of non-cash interest expense primarily related to the amortization of debt issuance costs. Three Months Ended Nine Months Ended 2022 2021 2022 2021 (Dollars in millions) Indebtedness $ 20.8 $ 31.9 $ 70.7 $ 105.0 Financial assurance instruments 13.0 13.6 40.1 38.3 Interest expense $ 33.8 $ 45.5 $ 110.8 $ 143.3 Cash paid for interest $ 26.4 $ 40.0 $ 104.2 $ 144.3 Non-cash interest expense $ 4.6 $ 4.9 $ 13.6 $ 15.2 The Senior Secured Term Loan is the Company’s only outstanding variable rate debt, which bore interest at LIBOR plus 2.75% per annum (5.83%) at September 30, 2022. The rate increased to 6.33% on October 26, 2022. Covenant Compliance The Company was compliant with all relevant covenants under its debt agreements at September 30, 2022, including the minimum aggregate liquidity requirement under the Company LC Agreement which requires the Company’s restricted subsidiaries to maintain minimum aggregate liquidity of $125.0 million at the end of each quarter through December 31, 2024. |
Pension and Postretirement Bene
Pension and Postretirement Benefit Costs | 9 Months Ended |
Sep. 30, 2022 | |
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, excluding service cost” in the unaudited condensed consolidated statements of operations. Net periodic pension credit included the following components: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (Dollars in millions) Service cost for benefits earned $ 0.1 $ — $ 0.1 $ 0.1 Interest cost on projected benefit obligation 5.3 5.2 16.0 15.4 Expected return on plan assets (6.0) (5.8) (17.9) (17.2) Net periodic pension credit $ (0.6) $ (0.6) $ (1.8) $ (1.7) 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 September 30, 2022, the Company’s qualified plans were expected to be at or above the Pension Protection Act thresholds. The Company is not required to make any contributions to its qualified pension plans in 2022 based on minimum funding requirements and does not expect to make any discretionary contributions in 2022 at this time. In March 2022, Peabody Investments Corp. (PIC), a wholly-owned subsidiary of PEC, entered into a commitment agreement relating to the Peabody Investments Corp. Retirement Plan (the Peabody Retirement Plan) with The Prudential Insurance Company of America (Prudential) and Fiduciary Counselors Inc., as independent fiduciary to the Peabody Retirement Plan. Under the commitment agreement, the Peabody Retirement Plan purchased a group annuity contract (GAC) from Prudential for approximately $500 million and Prudential will reimburse the Peabody Retirement Plan for benefit payments to be made to the Peabody Retirement Plan’s participants. The Peabody Retirement Plan continues to administer and pay the retirement benefits of Peabody Retirement Plan participants and is reimbursed by Prudential for the payment of all benefits covered by the GAC. The purchase of the GAC was funded directly by the Peabody Retirement Plan’s assets. There will be no impact on the monthly retirement benefits paid to Peabody Retirement Plan participants and no material impact on contributions for the Peabody Retirement Plan in 2022 as a result of this transaction. In May 2022, the Board of Directors of PIC approved the termination of the Peabody Retirement Plan effective July 31, 2022. In June 2022, the Peabody Retirement Plan’s participants were notified of the Peabody Retirement Plan termination and the Peabody Retirement Plan filed an application with the Internal Revenue Service to request a determination as to the qualified status under §401(a) of the Internal Revenue Code of 1986 with respect to the amendment and termination of the Peabody Retirement Plan. Once all regulatory approvals are received, benefits will be distributed to participants or transferred to an insurance company. Anticipated asset distribution, via voluntary lump sum payouts for active and deferred participants, is expected in the first half of 2023, following which participants not electing a lump sum and all participants in payment status will be transferred to a highly qualified insurance company. Net periodic postretirement benefit credit included the following components: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (Dollars in millions) Service cost for benefits earned $ 0.2 $ 0.3 $ 0.6 $ 0.8 Interest cost on accumulated postretirement benefit obligation 1.7 2.9 5.2 8.7 Expected return on plan assets (0.2) (0.3) (0.6) (0.7) Amortization of prior service credit (13.4) (11.0) (40.3) (33.0) Net periodic postretirement benefit credit $ (11.7) $ (8.1) $ (35.1) $ (24.2) In October 2021, the Company announced changes to its postretirement health care benefit plan for certain represented retirees which reduced its accumulated postretirement benefit obligation, as further described in Note 14. “Postretirement Health Care and Life Insurance Benefits” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The reduction in liability was recorded with an offsetting balance in “Accumulated other comprehensive income” and is being amortized to earnings. |
Earnings per Share (EPS)
Earnings per Share (EPS) | 9 Months Ended |
Sep. 30, 2022 | |
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 2028 Convertible Notes and share-based compensation awards in its potentially dilutive securities. Generally, 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 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 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. A conversion of the 2028 Convertible Notes may result in payment in the Company’s common stock. For diluted EPS purposes, the potentially dilutive common stock is assumed to have been converted at the beginning of the period (or at the time of issuance, if later). In periods where the potentially dilutive common stock is included in the computation of diluted EPS, the numerator will be adjusted to add back tax adjusted interest expense related to the convertible debt. The computation of diluted EPS excluded aggregate share-based compensation awards of less than 0.1 million for both the three and nine months ended September 30, 2022, and approximately 0.9 million and 0.8 million for the three and nine months ended September 30, 2021, 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 Nine Months Ended 2022 2021 2022 2021 (In millions, except per share data) Basic EPS numerator: Income (loss) from continuing operations, net of income taxes $ 384.4 $ (59.6) $ 675.9 $ (160.3) Less: Net income attributable to noncontrolling interests 8.5 8.9 8.5 12.6 Income (loss) from continuing operations attributable to common stockholders 375.9 (68.5) 667.4 (172.9) (Loss) income from discontinued operations, net of income taxes (0.8) 24.3 (2.3) 20.0 Net income (loss) attributable to common stockholders $ 375.1 $ (44.2) $ 665.1 $ (152.9) Diluted EPS numerator: Income (loss) from continuing operations, net of income taxes $ 384.4 $ (59.6) $ 675.9 $ (160.3) Add: Tax adjusted interest expense related to 2028 Convertible Notes 2.6 — 6.1 — Less: Net income attributable to noncontrolling interests 8.5 8.9 8.5 12.6 Income (loss) from continuing operations attributable to common stockholders 378.5 (68.5) 673.5 (172.9) (Loss) income from discontinued operations, net of income taxes (0.8) 24.3 (2.3) 20.0 Net income (loss) attributable to common stockholders $ 377.7 $ (44.2) $ 671.2 $ (152.9) EPS denominator: Weighted average shares outstanding — basic 144.1 114.9 141.4 104.9 Dilutive impact of share-based compensation awards 1.7 — 1.6 — Dilutive impact of 2028 Convertible Notes 16.1 — 12.6 — Weighted average shares outstanding — diluted 161.9 114.9 155.6 104.9 Basic EPS attributable to common stockholders: Income (loss) from continuing operations $ 2.61 $ (0.60) $ 4.72 $ (1.65) (Loss) income from discontinued operations (0.01) 0.22 (0.02) 0.19 Net income (loss) attributable to common stockholders $ 2.60 $ (0.38) $ 4.70 $ (1.46) Diluted EPS attributable to common stockholders: Income (loss) from continuing operations $ 2.34 $ (0.60) $ 4.33 $ (1.65) (Loss) income from discontinued operations (0.01) 0.22 (0.02) 0.19 Net income (loss) attributable to common stockholders $ 2.33 $ (0.38) $ 4.31 $ (1.46) |
Financial Instruments and Other
Financial Instruments and Other Guarantees | 9 Months Ended |
Sep. 30, 2022 | |
Financial Instruments And Guarantees [Abstract] | |
Financial Instruments and Other Guarantees | Financial Instruments and Other Guarantees 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 September 30, 2022, such instruments included $1,380.5 million of surety bonds and $505.4 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. Reclamation Bonding 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. In November 2020, the Company entered into an agreement with the providers of its surety bond portfolio to resolve previous collateral demands. In accordance with the agreement, the Company initially provided $75.0 million of collateral, in the form of letters of credit. The Company subsequently granted second liens on $200.0 million of certain mining equipment and is further required to post an additional $25.0 million of collateral per year from 2021 through 2024 for the benefit of the surety providers. The collateral postings further increase to the extent the Company generates more than $100.0 million of free cash flow (as defined in the surety agreement) in any twelve-month period or has cumulative asset sales in excess of $10.0 million, as of the last quarter end during the term of the agreement. Based upon the Company’s free cash flow since entering into the surety agreement, additional collateral of $38.7 million was posted during the nine months ended September 30, 2022 and $57.4 million was posted subsequent to September 30, 2022, primarily in the form of cash-collateralized letters of credit. At September 30, 2022, the Company’s asset retirement obligations of $725.8 million were supported by surety bonds of $1,234.6 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 September 30, 2022 which served as collateral for surety bonds in support of asset retirement obligations amounted to $369.9 million. Accounts Receivable Securitization The Company entered into the Sixth Amended and Restated Receivables Purchase Agreement, as amended, dated as of April 3, 2017 (the Receivables Purchase Agreement) to extend the Company’s receivables securitization facility previously in place and expand that facility to include certain receivables from the Company’s Australian operations. The receivables securitization program (Securitization Program) is subject to customary events of default set forth in the Receivables Purchase Agreement. The Receivables Purchase Agreement was amended in January 2022 to extend the Securitization Program to January 2025, reduce the available funding capacity from $250.0 million to $175.0 million, and amend the relevant borrowing rate from a LIBOR-based rate to one based on Bloomberg’s Short-Term Bank Yield Index (BSBY). Such funding is accounted for as a secured borrowing, 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. Borrowings under the Securitization Program bear interest at BSBY plus 2.1% per annum and remain outstanding throughout the term of the agreement, subject to the Company maintaining sufficient eligible receivables. At September 30, 2022, the Com pany had no outstanding borrowings and $164.1 million o f letters of credit outstanding under the Securitization Program. The letters of credit were primarily in support of reclamation obligations. Availability under the Securitizatio n Program, which is adjusted for certain ineligible receivables, was $10.9 million at September 30, 2022. The Company was not required to post cash collateral under the Securitization Program at September 30, 2022. The Company incurred interest and fees associated with the Securitization Program of $1.2 million and $1.0 million during the three months ended September 30, 2022 and 2021, respectively, and $3.4 million and $3.0 million during the nine months ended September 30, 2022 and 2021, respectively, which have been recorded as “Interest expense” in the accompanying unaudited condensed consolidated statements of operations. Collateralized Letter of Credit Agreement In February 2022, the Company entered into a new agreement, which provides up to $250.0 million of capacity for irrevocable standby letters of credit, expected to primarily support reclamation bonding requirements. The agreement requires the Company to provide cash collateral at a level of 103% of the aggregate amount of letters of credit outstanding under the arrangement (limited to $5.0 million total excess collateralization.) Outstanding letters of credit bear a fixed fee in the amount of 0.75% per annum. The Company receives a deposit rate of 2.24% per annum on the amount of cash collateral posted in support of letters of credit, with the rate subject to variation over time. The agreement has an initial expiration date of December 31, 2025. At September 30, 2022, collateralized letters of credit of $43.2 million were outstanding under the agreement. The underlying collateral balance of $44.5 million at September 30, 2022 is included with “Investments and other assets” in the accompanying condensed consolidated balance sheets. Other As of September 30, 2022, the Company had other collateral balances of $60.9 million posted, including $43.8 million related to reclamation, which are included with “Investments and other assets” in the accompanying condensed consolidated balance sheets. Such collateral balances amounted to $23.8 million at December 31, 2021, including $15.0 million related to reclamation. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Unconditional Purchase Obligations As of September 30, 2022, purchase commitments for capital expenditures were $77.8 million, all of which is obligated within the next three years, with $71.3 million obligated within the next 12 months. There were no other material changes to the Company’s commitments from the information provided in Note 23. “Commitments and Contingencies” to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. 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 and Matters 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 alleged 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. 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, while the Plaintiffs’ response letter was filed on May 6, 2021. The defendants filed their motion to dismiss on June 7, 2021. The Plaintiffs’ opposition brief to the motion to dismiss was filed on July 22, 2021. The defendants filed their reply to Plaintiffs’ opposition on August 23, 2021, which completed briefing. On March 7, 2022, the Court granted in part and denied in part the defendants’ motion to dismiss. As a result of this decision, only Plaintiffs’ allegations relating to the Company’s September 25, 2018 statements remained in the case. On May 13, 2022, the Court entered a Case Management and Scheduling Order. On August 2, 2022, Peabody and Plaintiffs agreed to settle all claims brought on behalf of all persons who purchased or otherwise acquired the Company’s shares between April 3, 2017 and October 28, 2019 in exchange for $4.6 million, to be paid by Peabody’s insurers. The parties further agreed to negotiate in good faith and execute a definitive stipulation of settlement and related documents, which are subject to the Court’s approval. The stipulation of settlement will not contain any admission of liability, wrongdoing or responsibility by any of the parties and will provide that upon final approval of the settlement, the case will be dismissed with prejudice, with mutual releases by all parties. On October 13, 2022, the Court entered an Order of Preliminary Approval of the settlement agreement. A hearing date of February 7, 2023 is set for final approval of the settlement agreement. 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 U.S. District Court for the District of Delaware against certain directors and former officers 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 U.S. District Court for the District of Delaware against the directors and current and former officers 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 Court ruled on the motion to dismiss in the Securities Class Action. In light of the settlement agreement in the Securities Class Action, on September 7, 2022, the Court entered Stipulation and Order of Voluntary Dismissal Without Prejudice Pursuant to Fed. R. Civ. P. 419a)(1)(A)(ii) for the Phelps and Di Fusco matters; effectively closing the shareholder derivative lawsuits. Metropolitan Mine Stormwater Discharge. Over the past two years, there has been significantly high rainfall in New South Wales, including unprecedented rain totals at the Metropolitan Mine site. While stormwater collected at the mine site is managed through two sedimentation dams, at times the heavy rainfall has presented challenges with managing the significant volumes of stormwater as the surface water management infrastructure has not had sufficient capacity. As a result, on multiple occasions throughout 2021 and 2022 stormwater has been discharged from the mine site. During this period of time, Metropolitan Collieries Pty Ltd (MCPL), a wholly-owned subsidiary of PEC, has been actively undertaking works, including the use of long reach excavators and pumping systems, to remove accumulated material from the sedimentation dams to restore full site stormwater capacity. Despite the measures undertaken by MCPL to manage and improve the situation, the Environment Protection Authority is currently undertaking an investigation in relation to the discharges of sediment laden water from the mine site. The Environment Protection Authority is investigating potential offenses against the environmental protection legislation. MCPL is fully cooperating with the Environment Protection Authority in relation to this investigation and has also engaged external consultants to undertake a review of the surface water management infrastructure. MCPL is in ongoing discussions with the Environmental Protection Authority with respect to the timeline for the restoration of stormwater capacity and sediment removal. Other 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. Claims, Litigation and Settlements Relating to Indemnities or Historical Operations Patriot-Related Matters. Included in the Company’s discontinued operations are the previously divested legacy operations of Patriot Coal Corporation and certain of its wholly-owned subsidiaries (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, 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. 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 $85.7 million and $87.2 million at September 30, 2022 and December 31, 2021, respectively. The liability, which is classified as discontinued operations, is included in the Company’s condensed consolidated balance sheet within “Accounts payable and accrued expenses” and “Other noncurrent liabilities.” 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. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
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, defined as its Chief Executive Officer, uses Adjusted EBITDA as the primary metric to measure the segments’ operating performance and allocate resources. Adjusted EBITDA is a non-GAAP financial measure defined as income (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 Nine Months Ended 2022 2021 2022 2021 (Dollars in millions) Revenue: Seaborne Thermal Mining $ 353.2 $ 260.7 $ 959.3 $ 631.2 Seaborne Metallurgical Mining 310.7 179.5 1,165.8 388.0 Powder River Basin Mining 290.5 247.1 771.4 724.1 Other U.S. Thermal Mining 261.4 184.6 689.4 496.0 Corporate and Other 126.7 (192.9) (230.1) (185.6) Total $ 1,342.5 $ 679.0 $ 3,355.8 $ 2,053.7 Adjusted EBITDA: Seaborne Thermal Mining $ 171.2 $ 104.4 $ 438.5 $ 204.3 Seaborne Metallurgical Mining 113.2 57.4 593.9 8.6 Powder River Basin Mining 37.9 37.0 43.5 112.6 Other U.S. Thermal Mining 72.7 45.1 184.6 125.6 Corporate and Other 43.9 45.2 83.7 21.2 Total $ 438.9 $ 289.1 $ 1,344.2 $ 472.3 A reconciliation of consolidated income (loss) from continuing operations, net of income taxes to Adjusted EBITDA follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (Dollars in millions) Income (loss) from continuing operations, net of income taxes $ 384.4 $ (59.6) $ 675.9 $ (160.3) Depreciation, depletion and amortization 80.7 77.9 227.4 223.3 Asset retirement obligation expenses 13.1 14.3 40.8 45.3 Restructuring charges 1.0 1.7 2.8 5.9 Asset impairment 1.7 — 1.7 — Changes in deferred tax asset valuation allowance and reserves and amortization of basis difference related to equity affiliates (0.5) (6.4) (1.7) (8.4) Interest expense 33.8 45.5 110.8 143.3 Net loss (gain) on early debt extinguishment 8.7 (16.0) 34.5 (31.3) Interest income (4.9) (1.4) (6.3) (4.2) Unrealized (gains) losses on derivative contracts related to forecasted sales (90.4) 238.4 235.1 264.0 Unrealized losses (gains) on foreign currency option contracts 1.4 (0.6) 4.4 8.2 Take-or-pay contract-based intangible recognition (0.8) (1.0) (2.2) (3.2) Income tax provision (benefit) 10.7 (3.7) 21.0 (10.3) Adjusted EBITDA $ 438.9 $ 289.1 $ 1,344.2 $ 472.3 |
Other Events
Other Events | 9 Months Ended |
Sep. 30, 2022 | |
Other Events [Abstract] | |
Other Events | Other Events During July 2021, the Company executed transactions to sell its closed Millennium and Wilkie Creek Mines, which reduced its closed mine reclamation liabilities and associated costs. The Millennium Mine was sold for minimal cash consideration and the assumption of the majority of the mine’s reclamation liabilities. At September 30, 2022, the Company remains responsible for $6.4 million of reclamation liabilities. The Company recorded a gain of $26.1 million in connection with the sale, which is included within “Net gain on disposals” in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2021. The Wilkie Creek Mine was sold for minimal cash consideration and full assumption of the mine’s reclamation liabilities. The Company recorded a gain of $24.6 million in connection with the sale, which is included within “(Loss) income from discontinued operations, net of income taxes” in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2021. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Corporate Hedging - Coal Trading | Generally, the Company’s Level 3 instruments or contracts are valued using bid/ask price quotations and other market assessments obtained from multiple, independent third-party brokers or other transactional data incorporated into internally-generated discounted cash flow models. Decreases in the number of third-party brokers or market liquidity could erode the quality of market information and therefore the valuation of the Company’s market positions. The Company’s valuation techniques include basis adjustments to the foregoing price inputs for quality, such as sulfur and ash content, location differentials, expressed as port and freight costs, and credit risk. The Company’s risk management function independently validates the Company’s valuation inputs, including unobservable inputs, with third-party information and settlement prices from other sources where available. A daily process is performed to analyze market price changes and changes to the portfolio. Further periodic validation occurs at the time contracts are settled with the counterparty. These valuation techniques have been consistently applied in all periods presented, and the Company believes it has obtained the most accurate information available for the types of derivative contracts held.Significant increases or decreases in the inputs in isolation could result in a significantly higher or lower fair value measurement. The unobservable inputs do not have a direct interrelationship; therefore, a change in one unobservable input would not necessarily correspond with a change in another unobservable input. |
Fair Value, Assets, Transfers Between Levels | The Company’s policy is to value all transfers between levels using the beginning of period valuation. |
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. On a limited basis, the Company engages in the direct and brokered trading of coal and freight-related contracts. 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. The Company had no diesel fuel or interest rate derivatives in place as of September 30, 2022. Foreign Currency Option Contracts |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 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 $ 44.8 $ — $ 290.2 $ 259.8 $ — $ 594.8 Export 308.3 — — — — 308.3 Total thermal 353.1 — 290.2 259.8 — 903.1 Metallurgical coal Export — 309.9 — — — 309.9 Total metallurgical — 309.9 — — — 309.9 Other (2) 0.1 0.8 0.3 1.6 126.7 129.5 Revenue $ 353.2 $ 310.7 $ 290.5 $ 261.4 $ 126.7 $ 1,342.5 Three Months Ended September 30, 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 $ 41.1 $ — $ 247.3 $ 181.0 $ — $ 469.4 Export 219.4 — — 2.2 — 221.6 Total thermal 260.5 — 247.3 183.2 — 691.0 Metallurgical coal Export — 176.8 — — — 176.8 Total metallurgical — 176.8 — — — 176.8 Other (2) 0.2 2.7 (0.2) 1.4 (192.9) (188.8) Revenue $ 260.7 $ 179.5 $ 247.1 $ 184.6 $ (192.9) $ 679.0 Nine Months Ended September 30, 2022 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 $ 125.0 $ — $ 771.6 $ 682.5 $ — $ 1,579.1 Export 833.7 — — 1.0 — 834.7 Total thermal 958.7 — 771.6 683.5 — 2,413.8 Metallurgical coal Export — 1,161.2 — — — 1,161.2 Total metallurgical — 1,161.2 — — — 1,161.2 Other (2) 0.6 4.6 (0.2) 5.9 (230.1) (219.2) Revenue $ 959.3 $ 1,165.8 $ 771.4 $ 689.4 $ (230.1) $ 3,355.8 Nine Months Ended September 30, 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 $ 132.7 $ — $ 724.5 $ 487.8 $ — $ 1,345.0 Export 497.7 — — 3.4 — 501.1 Total thermal 630.4 — 724.5 491.2 — 1,846.1 Metallurgical coal Export — 383.8 — — — 383.8 Total metallurgical — 383.8 — — — 383.8 Other (2) 0.8 4.2 (0.4) 4.8 (185.6) (176.2) Revenue $ 631.2 $ 388.0 $ 724.1 $ 496.0 $ (185.6) $ 2,053.7 (1) Corporate and Other includes the following: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (Dollars in millions) Unrealized gains (losses) on derivative contracts related to forecasted sales $ 90.4 $ (238.4) $ (235.1) $ (264.0) Realized losses on derivative contracts related to forecasted sales (117.4) (13.1) (308.0) (28.1) Revenue from physical sale of coal (3) 150.7 56.9 294.0 98.0 Trading revenue 0.3 0.7 10.7 1.4 Other (2) 2.7 1.0 8.3 7.1 Total Corporate and Other $ 126.7 $ (192.9) $ (230.1) $ (185.6) (2) Includes revenue 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. (3) Includes revenue recognized upon the physical sale of coal purchased from the Company’s operating segments and sold to customers through the Company’s coal trading business as part of settling certain derivative contracts. Primarily represents the difference between the price contracted with the customer and the price allocated to the operating segment. |
Schedule of Accounts Receivable | “Accounts receivable, net” at September 30, 2022 and December 31, 2021 consisted of the following: September 30, 2022 December 31, 2021 (Dollars in millions) Trade receivables, net $ 387.1 $ 307.0 Miscellaneous receivables, net 39.3 43.5 Accounts receivable, net $ 426.4 $ 350.5 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories, net” as of September 30, 2022 and December 31, 2021 consisted of the following: September 30, 2022 December 31, 2021 (Dollars in millions) Materials and supplies, net $ 121.7 $ 102.1 Raw coal 58.5 54.6 Saleable coal 97.2 70.0 Inventories, net $ 277.4 $ 226.7 |
Derivatives and Fair Value Me_2
Derivatives and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The fair value of derivatives reflected in the accompanying condensed consolidated balance sheets are set forth in the table below. September 30, 2022 December 31, 2021 Asset Derivative Liability Derivative Asset Derivative Liability Derivative (Dollars in millions) Foreign currency option contracts $ 1.4 $ — $ 1.4 $ — Derivative contracts related to forecasted sales 236.0 (633.7) 59.5 (184.2) Financial trading contracts 12.2 — 3.4 — Total derivatives 249.6 (633.7) 64.3 (184.2) Effect of counterparty netting (236.0) 236.0 (59.5) 59.5 Variation margin (received) posted (12.2) 390.0 (3.4) 95.2 Net derivatives and variation margin as classified in the balance sheets $ 1.4 $ (7.7) $ 1.4 $ (29.5) |
Derivative Instruments, Gain (Loss) | The tables below show the amounts of pretax gains and losses related to the Company’s derivatives and their classification within the accompanying unaudited condensed consolidated statements of operations. Three Months Ended September 30, 2022 Total (loss) gain recognized in income (Loss) gain realized in income on derivatives Unrealized (loss) gain recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ (3.0) $ (1.6) $ (1.4) Derivative contracts related to forecasted sales Revenue (27.0) (117.4) 90.4 Financial trading contracts Revenue 0.3 0.5 (0.2) Total $ (29.7) $ (118.5) $ 88.8 Three Months Ended September 30, 2021 Total (loss) gain recognized in income (Loss) gain realized in income on derivatives Unrealized gain (loss) recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ (1.0) $ (1.6) $ 0.6 Derivative contracts related to forecasted sales Revenue (251.5) (13.1) (238.4) Financial trading contracts Revenue 0.7 0.7 — Total $ (251.8) $ (14.0) $ (237.8) Nine Months Ended September 30, 2022 Total (loss) gain recognized in income (Loss) gain realized in income on derivatives Unrealized (loss) gain recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ (8.2) $ (3.8) $ (4.4) Derivative contracts related to forecasted sales Revenue (543.1) (308.0) (235.1) Financial trading contracts Revenue 10.7 0.6 10.1 Total $ (540.6) $ (311.2) $ (229.4) Nine Months Ended September 30, 2021 Total (loss) gain recognized in income Gain (loss) realized in income on derivatives Unrealized (loss) gain recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ (5.3) $ 3.0 $ (8.3) Derivative contracts related to forecasted sales Revenue (292.1) (28.1) (264.0) Financial trading contracts Revenue 1.4 0.6 0.8 Total $ (296.0) $ (24.5) $ (271.5) |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables set forth the hierarchy of the Company’s net (liability) asset positions for which fair value is measured on a recurring basis. Variation margin cash associated with the derivative balances is excluded from this table. September 30, 2022 Level 1 Level 2 Level 3 Total (Dollars in millions) Foreign currency option contracts $ — $ 1.4 $ — $ 1.4 Derivative contracts related to forecasted sales — (397.7) — (397.7) Financial trading contracts — 12.2 — 12.2 Equity securities — — 2.3 2.3 Total net (liabilities) assets $ — $ (384.1) $ 2.3 $ (381.8) December 31, 2021 Level 1 Level 2 Level 3 Total (Dollars in millions) Foreign currency option contracts $ — $ 1.4 $ — $ 1.4 Derivative contracts related to forecasted sales — (124.7) — (124.7) Financial trading contracts — 3.4 — 3.4 Equity securities — — 4.0 4.0 Total net (liabilities) assets $ — $ (119.9) $ 4.0 $ (115.9) |
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. September 30, 2022 December 31, 2021 (Dollars in millions) Total debt at par value $ 891.0 $ 1,173.2 Less: Unamortized debt issuance costs and original issue discount (21.8) (35.4) Net carrying amount $ 869.2 $ 1,137.8 Estimated fair value $ 1,034.0 $ 1,136.5 |
Property, Plant, Equipment an_2
Property, Plant, Equipment and Mine Development (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 and December 31, 2021 is set forth in the table below: September 30, 2022 December 31, 2021 (Dollars in millions) Land and coal interests $ 2,487.3 $ 2,494.1 Buildings and improvements 596.1 550.8 Machinery and equipment 1,440.0 1,386.2 Less: Accumulated depreciation, depletion and amortization (1,705.8) (1,480.5) Property, plant, equipment and mine development, net $ 2,817.6 $ 2,950.6 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company’s total indebtedness as of September 30, 2022 and December 31, 2021 consisted of the following: Debt Instrument (defined below, as applicable) September 30, 2022 December 31, 2021 (Dollars in millions) 6.000% Senior Secured Notes due March 2022 (2022 Notes) $ — $ 23.1 8.500% Senior Secured Notes due December 2024 (2024 Peabody Notes) — 62.6 10.000% Senior Secured Notes due December 2024 (2024 Co-Issuer Notes) 81.6 193.9 Senior Secured Term Loan due 2024 (Co-Issuer Term Loans) 114.6 206.0 6.375% Senior Secured Notes due March 2025 (2025 Notes) 66.2 334.9 Senior Secured Term Loan due 2025, net of original issue discount (Senior Secured Term Loan) 282.6 322.8 3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) 320.0 — Finance lease obligations 25.7 29.3 Less: Debt issuance costs (21.5) (34.8) 869.2 1,137.8 Less: Current portion of long-term debt (1) 546.9 59.6 Long-term debt $ 322.3 $ 1,078.2 (1) The Company has the positive intent and ability to retire additional debt in the next twelve months using working capital. As such, all debt with the exception of the 2028 Convertible Notes and finance lease obligations was classified within “Current portion of long-term debt” in the accompanying condensed consolidated balance sheets at September 30, 2022. |
Schedule of Interest Charges | Additionally, the table sets forth the amount of cash paid for interest and the amount of non-cash interest expense primarily related to the amortization of debt issuance costs. Three Months Ended Nine Months Ended 2022 2021 2022 2021 (Dollars in millions) Indebtedness $ 20.8 $ 31.9 $ 70.7 $ 105.0 Financial assurance instruments 13.0 13.6 40.1 38.3 Interest expense $ 33.8 $ 45.5 $ 110.8 $ 143.3 Cash paid for interest $ 26.4 $ 40.0 $ 104.2 $ 144.3 Non-cash interest expense $ 4.6 $ 4.9 $ 13.6 $ 15.2 |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Costs (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Net periodic pension credit included the following components: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (Dollars in millions) Service cost for benefits earned $ 0.1 $ — $ 0.1 $ 0.1 Interest cost on projected benefit obligation 5.3 5.2 16.0 15.4 Expected return on plan assets (6.0) (5.8) (17.9) (17.2) Net periodic pension credit $ (0.6) $ (0.6) $ (1.8) $ (1.7) Net periodic postretirement benefit credit included the following components: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (Dollars in millions) Service cost for benefits earned $ 0.2 $ 0.3 $ 0.6 $ 0.8 Interest cost on accumulated postretirement benefit obligation 1.7 2.9 5.2 8.7 Expected return on plan assets (0.2) (0.3) (0.6) (0.7) Amortization of prior service credit (13.4) (11.0) (40.3) (33.0) Net periodic postretirement benefit credit $ (11.7) $ (8.1) $ (35.1) $ (24.2) |
Earnings per Share (EPS) (Table
Earnings per Share (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 Nine Months Ended 2022 2021 2022 2021 (In millions, except per share data) Basic EPS numerator: Income (loss) from continuing operations, net of income taxes $ 384.4 $ (59.6) $ 675.9 $ (160.3) Less: Net income attributable to noncontrolling interests 8.5 8.9 8.5 12.6 Income (loss) from continuing operations attributable to common stockholders 375.9 (68.5) 667.4 (172.9) (Loss) income from discontinued operations, net of income taxes (0.8) 24.3 (2.3) 20.0 Net income (loss) attributable to common stockholders $ 375.1 $ (44.2) $ 665.1 $ (152.9) Diluted EPS numerator: Income (loss) from continuing operations, net of income taxes $ 384.4 $ (59.6) $ 675.9 $ (160.3) Add: Tax adjusted interest expense related to 2028 Convertible Notes 2.6 — 6.1 — Less: Net income attributable to noncontrolling interests 8.5 8.9 8.5 12.6 Income (loss) from continuing operations attributable to common stockholders 378.5 (68.5) 673.5 (172.9) (Loss) income from discontinued operations, net of income taxes (0.8) 24.3 (2.3) 20.0 Net income (loss) attributable to common stockholders $ 377.7 $ (44.2) $ 671.2 $ (152.9) EPS denominator: Weighted average shares outstanding — basic 144.1 114.9 141.4 104.9 Dilutive impact of share-based compensation awards 1.7 — 1.6 — Dilutive impact of 2028 Convertible Notes 16.1 — 12.6 — Weighted average shares outstanding — diluted 161.9 114.9 155.6 104.9 Basic EPS attributable to common stockholders: Income (loss) from continuing operations $ 2.61 $ (0.60) $ 4.72 $ (1.65) (Loss) income from discontinued operations (0.01) 0.22 (0.02) 0.19 Net income (loss) attributable to common stockholders $ 2.60 $ (0.38) $ 4.70 $ (1.46) Diluted EPS attributable to common stockholders: Income (loss) from continuing operations $ 2.34 $ (0.60) $ 4.33 $ (1.65) (Loss) income from discontinued operations (0.01) 0.22 (0.02) 0.19 Net income (loss) attributable to common stockholders $ 2.33 $ (0.38) $ 4.31 $ (1.46) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Reportable Segment Results | Reportable segment results were as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (Dollars in millions) Revenue: Seaborne Thermal Mining $ 353.2 $ 260.7 $ 959.3 $ 631.2 Seaborne Metallurgical Mining 310.7 179.5 1,165.8 388.0 Powder River Basin Mining 290.5 247.1 771.4 724.1 Other U.S. Thermal Mining 261.4 184.6 689.4 496.0 Corporate and Other 126.7 (192.9) (230.1) (185.6) Total $ 1,342.5 $ 679.0 $ 3,355.8 $ 2,053.7 Adjusted EBITDA: Seaborne Thermal Mining $ 171.2 $ 104.4 $ 438.5 $ 204.3 Seaborne Metallurgical Mining 113.2 57.4 593.9 8.6 Powder River Basin Mining 37.9 37.0 43.5 112.6 Other U.S. Thermal Mining 72.7 45.1 184.6 125.6 Corporate and Other 43.9 45.2 83.7 21.2 Total $ 438.9 $ 289.1 $ 1,344.2 $ 472.3 |
Reconciliation of Consolidated (Loss) Income from Continuing Operations, Net of Income Taxes to Adjusted EBITDA | A reconciliation of consolidated income (loss) from continuing operations, net of income taxes to Adjusted EBITDA follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (Dollars in millions) Income (loss) from continuing operations, net of income taxes $ 384.4 $ (59.6) $ 675.9 $ (160.3) Depreciation, depletion and amortization 80.7 77.9 227.4 223.3 Asset retirement obligation expenses 13.1 14.3 40.8 45.3 Restructuring charges 1.0 1.7 2.8 5.9 Asset impairment 1.7 — 1.7 — Changes in deferred tax asset valuation allowance and reserves and amortization of basis difference related to equity affiliates (0.5) (6.4) (1.7) (8.4) Interest expense 33.8 45.5 110.8 143.3 Net loss (gain) on early debt extinguishment 8.7 (16.0) 34.5 (31.3) Interest income (4.9) (1.4) (6.3) (4.2) Unrealized (gains) losses on derivative contracts related to forecasted sales (90.4) 238.4 235.1 264.0 Unrealized losses (gains) on foreign currency option contracts 1.4 (0.6) 4.4 8.2 Take-or-pay contract-based intangible recognition (0.8) (1.0) (2.2) (3.2) Income tax provision (benefit) 10.7 (3.7) 21.0 (10.3) Adjusted EBITDA $ 438.9 $ 289.1 $ 1,344.2 $ 472.3 |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by Product Type and Market (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,342.5 | $ 679 | $ 3,355.8 | $ 2,053.7 |
Other Income | 2.7 | 1 | 8.3 | 7.1 |
Designated as Hedging Instrument | ||||
Disaggregation of Revenue [Line Items] | ||||
Unrealized (loss) gain recognized in income on derivatives | 88.8 | (237.8) | (229.4) | (271.5) |
(Loss) gain realized in income on derivatives | (118.5) | (14) | (311.2) | (24.5) |
Total (loss) gain recognized in income | (29.7) | (251.8) | (540.6) | (296) |
Derivative contracts related to forecasted sales | Designated as Hedging Instrument | ||||
Disaggregation of Revenue [Line Items] | ||||
Unrealized (loss) gain recognized in income on derivatives | 90.4 | (238.4) | (235.1) | (264) |
(Loss) gain realized in income on derivatives | (117.4) | (13.1) | (308) | (28.1) |
Total (loss) gain recognized in income | (27) | (251.5) | (543.1) | (292.1) |
Financial trading contracts | Designated as Hedging Instrument | ||||
Disaggregation of Revenue [Line Items] | ||||
Unrealized (loss) gain recognized in income on derivatives | (0.2) | 0 | 10.1 | 0.8 |
(Loss) gain realized in income on derivatives | 0.5 | 0.7 | 0.6 | 0.6 |
Total (loss) gain recognized in income | 0.3 | 0.7 | 10.7 | 1.4 |
Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 903.1 | 691 | 2,413.8 | 1,846.1 |
Metallurgical coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 309.9 | 176.8 | 1,161.2 | 383.8 |
Other (2) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 129.5 | (188.8) | (219.2) | (176.2) |
Domestic | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 594.8 | 469.4 | 1,579.1 | 1,345 |
Export | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 308.3 | 221.6 | 834.7 | 501.1 |
Export | Metallurgical coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 309.9 | 176.8 | 1,161.2 | 383.8 |
Seaborne Thermal Mining | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 353.2 | 260.7 | 959.3 | 631.2 |
Seaborne Thermal Mining | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 353.1 | 260.5 | 958.7 | 630.4 |
Seaborne Thermal Mining | Metallurgical coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Seaborne Thermal Mining | Other (2) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0.1 | 0.2 | 0.6 | 0.8 |
Seaborne Thermal Mining | Domestic | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44.8 | 41.1 | 125 | 132.7 |
Seaborne Thermal Mining | Export | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 308.3 | 219.4 | 833.7 | 497.7 |
Seaborne Thermal Mining | Export | Metallurgical coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Seaborne Metallurgical Mining | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 310.7 | 179.5 | 1,165.8 | 388 |
Seaborne Metallurgical Mining | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Seaborne Metallurgical Mining | Metallurgical coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 309.9 | 176.8 | 1,161.2 | 383.8 |
Seaborne Metallurgical Mining | Other (2) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0.8 | 2.7 | 4.6 | 4.2 |
Seaborne Metallurgical Mining | Domestic | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Seaborne Metallurgical Mining | Export | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Seaborne Metallurgical Mining | Export | Metallurgical coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 309.9 | 176.8 | 1,161.2 | 383.8 |
Powder River Basin Mining | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 290.5 | 247.1 | 771.4 | 724.1 |
Powder River Basin Mining | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 290.2 | 247.3 | 771.6 | 724.5 |
Powder River Basin Mining | Metallurgical coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Powder River Basin Mining | Other (2) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0.3 | (0.2) | (0.2) | (0.4) |
Powder River Basin Mining | Domestic | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 290.2 | 247.3 | 771.6 | 724.5 |
Powder River Basin Mining | Export | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Powder River Basin Mining | Export | Metallurgical coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other U.S. Thermal Mining | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 261.4 | 184.6 | 689.4 | 496 |
Other U.S. Thermal Mining | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 259.8 | 183.2 | 683.5 | 491.2 |
Other U.S. Thermal Mining | Metallurgical coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other U.S. Thermal Mining | Other (2) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1.6 | 1.4 | 5.9 | 4.8 |
Other U.S. Thermal Mining | Domestic | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 259.8 | 181 | 682.5 | 487.8 |
Other U.S. Thermal Mining | Export | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 2.2 | 1 | 3.4 |
Other U.S. Thermal Mining | Export | Metallurgical coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Corporate and Other (1) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 126.7 | (192.9) | (230.1) | (185.6) |
Corporate and Other (1) | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Corporate and Other (1) | Trading and Brokerage Coal Deliveries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 150.7 | 56.9 | 294 | 98 |
Corporate and Other (1) | Metallurgical coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Corporate and Other (1) | Other (2) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 126.7 | 192.9 | 230.1 | (185.6) |
Corporate and Other (1) | Domestic | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Corporate and Other (1) | Export | Thermal coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Corporate and Other (1) | Export | Metallurgical coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Accounts
Revenue Recognition - Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Revenue Recognition [Abstract] | ||
Trade receivables, net | $ 387.1 | $ 307 |
Miscellaneous receivables, net | 39.3 | 43.5 |
Accounts receivable, net | $ 426.4 | $ 350.5 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Accounts receivable, credit loss expense (reversal) | $ 0 | $ 0 | |||
Revenue | $ 1,342,500,000 | 679,000,000 | $ 3,355,800,000 | 2,053,700,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue | 1,342,500,000 | 679,000,000 | 3,355,800,000 | 2,053,700,000 | |
Corporate and Other (1) | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 126,700,000 | (192,900,000) | (230,100,000) | (185,600,000) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue | 126,700,000 | (192,900,000) | (230,100,000) | (185,600,000) | |
Designated as Hedging Instrument | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Unrealized (loss) gain recognized in income on derivatives | 88,800,000 | (237,800,000) | (229,400,000) | (271,500,000) | |
Trade receivables | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Accounts receivable, allowance for credit loss | 0 | 0 | $ 0 | ||
Accounts receivable, allowance for credit loss | 0 | 0 | 0 | ||
Miscellaneous Receivables | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Accounts receivable, allowance for credit loss | 0 | 0 | 0 | ||
Accounts receivable, allowance for credit loss | 0 | 0 | $ 0 | ||
Coal Contract and Physical commodity purchase / sale contracts | Designated as Hedging Instrument | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Unrealized (loss) gain recognized in income on derivatives | $ 90,400,000 | $ (238,400,000) | $ (235,100,000) | $ (264,000,000) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Materials and supplies, net | $ 121.7 | $ 102.1 |
Raw coal | 58.5 | 54.6 |
Saleable coal | 97.2 | 70 |
Inventories, net | 277.4 | 226.7 |
Material and supplies | ||
Inventory [Line Items] | ||
inventory reserves | $ 7.6 | $ 9 |
Equity Method Investments (Deta
Equity Method Investments (Details) $ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 AUD ($) | Dec. 31, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investments | $ 32.8 | $ 32.8 | $ 62.2 | |||
Income (Loss) from Equity Method Investments | $ (27.5) | $ (15.8) | (120.9) | $ (11.4) | ||
Cash receipts from Middlemount Coal Pty Ltd and other related parties | 154.9 | 8.4 | ||||
Middlemount Mine | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cash receipts from Middlemount Coal Pty Ltd and other related parties | $ 151.5 | 7.6 | ||||
Equity interest percentage of revolving loans limit | 50% | 50% | 50% | |||
Revolving loan limit | $ 50 | |||||
Financing receivable, stated interest rate (in percent) | 10% | |||||
Middlemount Mine | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Income (Loss) from Equity Method Investments | $ 28.4 | $ 15.8 | $ 123.6 | $ 11.4 |
Derivatives and Fair Value Me_3
Derivatives and Fair Value Measurements - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 t $ / $ | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) t | Sep. 30, 2021 USD ($) | Dec. 31, 2022 t $ / $ | Sep. 30, 2022 AUD ($) | Dec. 31, 2021 USD ($) | |
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, initial margin posted | $ 465.9 | $ 465.9 | $ 130.1 | |||||
Proceeds from common stock issuances, net of costs | 222 | $ 177.2 | ||||||
Net loss (gain) on early debt extinguishment | (8.7) | $ 16 | $ (34.5) | 31.3 | ||||
Unobservable Measurement Input, Uncertainty, Description | 10 | |||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset [Abstract] | ||||||||
Revenue | 1,342.5 | 679 | $ 3,355.8 | 2,053.7 | ||||
Asset impairment | 1.7 | 0 | 1.7 | 0 | ||||
Fair Value, Inputs, Level 1, 2 and 3 | ||||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset [Abstract] | ||||||||
Derivative assets (liabilities), at fair value | 0 | 0 | 0 | 0 | ||||
Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Variation margin (received) posted | 12.2 | 12.2 | 3.4 | |||||
Unrealized (loss) gain recognized in income on derivatives | 88.8 | (237.8) | (229.4) | (271.5) | ||||
Designated as Hedging Instrument | Net Amount | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Variation margin (received) posted | 377.8 | 377.8 | 91.8 | |||||
Foreign currency option contracts | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Notional amount | $ 855,000,000 | |||||||
Foreign currency option contracts | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Unrealized (loss) gain recognized in income on derivatives | (1.4) | 0.6 | $ (4.4) | (8.3) | ||||
Financial trading contracts | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative notional amount (in tonnes) | t | 1,000,000 | |||||||
Financial trading contracts | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Unrealized (loss) gain recognized in income on derivatives | (0.2) | 0 | $ 10.1 | 0.8 | ||||
Diesel Fuel Hedge Contracts | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Notional amount | $ 0 | |||||||
Coal Contract and Physical commodity purchase / sale contracts | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Unrealized (loss) gain recognized in income on derivatives | 90.4 | (238.4) | (235.1) | (264) | ||||
Gain (Loss) on Derivative Instruments | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Unrealized (loss) gain recognized in income on derivatives | 49 | (257) | ||||||
Forward Contracts | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Unrealized (loss) gain recognized in income on derivatives | 41 | 22 | ||||||
Derivative contracts related to forecasted sales | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Unrealized (loss) gain recognized in income on derivatives | 90.4 | $ (238.4) | (235.1) | $ (264) | ||||
Forecast | Foreign currency option contracts | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, exchange rate floor (in dollars per share) | $ / $ | 0.70 | 0.70 | ||||||
Derivative, exchange rate cap (in dollars per share) | $ / $ | 0.80 | 0.80 | ||||||
Forecast | Financial trading contracts | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative notional amount (in tonnes) | t | 100,000 | 900,000 | ||||||
Forecast | Coal Contract to settle in 2022 | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative notional amount (in tonnes) | t | 300,000 | |||||||
Forecast | Coal Contract to settle in 2023 | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative notional amount (in tonnes) | t | 600,000 | |||||||
Coal Trading | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, initial margin posted | $ 88.1 | $ 88.1 | $ 38.3 |
Derivatives and Fair Value Me_4
Derivatives and Fair Value Measurements - Derivatives by Balance Sheet Classification (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Asset Derivative | ||
Derivative Asset, Fair Value, Gross Asset | $ 249.6 | $ 64.3 |
Effect of counterparty netting | (236) | (59.5) |
Variation margin (received) posted | (12.2) | (3.4) |
Net derivatives and variation margin as classified in the balance sheets | 1.4 | 1.4 |
Liability Derivative | ||
Liability Derivative | (633.7) | (184.2) |
Effect of counterparty netting | 236 | 59.5 |
Net derivatives and variation margin as classified in the balance sheets | (7.7) | (29.5) |
Gross Amount | ||
Liability Derivative | ||
Variation margin (received) posted | 390 | 95.2 |
Foreign currency option contracts | ||
Asset Derivative | ||
Derivative Asset, Fair Value, Gross Asset | 1.4 | 1.4 |
Liability Derivative | ||
Liability Derivative | 0 | 0 |
Derivative contracts related to forecasted sales | ||
Asset Derivative | ||
Derivative Asset, Fair Value, Gross Asset | 236 | 59.5 |
Liability Derivative | ||
Liability Derivative | (633.7) | (184.2) |
Financial trading contracts | ||
Asset Derivative | ||
Derivative Asset, Fair Value, Gross Asset | 12.2 | 3.4 |
Liability Derivative | ||
Liability Derivative | $ 0 | $ 0 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (loss) gain recognized in income | $ (29.7) | $ (251.8) | $ (540.6) | $ (296) |
(Loss) gain realized in income on derivatives | (118.5) | (14) | (311.2) | (24.5) |
Unrealized (loss) gain recognized in income on derivatives | 88.8 | (237.8) | (229.4) | (271.5) |
Foreign currency option contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (loss) gain recognized in income | (3) | (1) | (8.2) | (5.3) |
(Loss) gain realized in income on derivatives | (1.6) | (1.6) | (3.8) | 3 |
Unrealized (loss) gain recognized in income on derivatives | (1.4) | 0.6 | (4.4) | (8.3) |
Derivative contracts related to forecasted sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (loss) gain recognized in income | (27) | (251.5) | (543.1) | (292.1) |
(Loss) gain realized in income on derivatives | (117.4) | (13.1) | (308) | (28.1) |
Unrealized (loss) gain recognized in income on derivatives | 90.4 | (238.4) | (235.1) | (264) |
Financial trading contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (loss) gain recognized in income | 0.3 | 0.7 | 10.7 | 1.4 |
(Loss) gain realized in income on derivatives | 0.5 | 0.7 | 0.6 | 0.6 |
Unrealized (loss) gain recognized in income on derivatives | $ (0.2) | $ 0 | $ 10.1 | $ 0.8 |
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | $ (381.8) | $ (115.9) |
Equity securities | 2.3 | 4 |
Level 1 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 0 | 0 |
Equity securities | 0 | 0 |
Level 2 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | (384.1) | (119.9) |
Equity securities | 0 | 0 |
Level 3 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 2.3 | 4 |
Equity securities | 2.3 | 4 |
Foreign currency option contracts | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 1.4 | 1.4 |
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 | 1.4 | 1.4 |
Foreign currency option contracts | Level 3 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 0 | 0 |
Derivative contracts related to forecasted sales | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | (397.7) | (124.7) |
Derivative contracts related to forecasted sales | Level 1 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 0 | 0 |
Derivative contracts related to forecasted sales | Level 2 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | (397.7) | (124.7) |
Derivative contracts related to forecasted sales | Level 3 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 0 | 0 |
Financial trading contracts | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 12.2 | 3.4 |
Financial trading contracts | Level 1 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 0 | 0 |
Financial trading contracts | Level 2 | ||
Derivative [Line Items] | ||
Derivative assets (liabilities), at fair value | 12.2 | 3.4 |
Financial 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 | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net carrying amount | $ 869.2 | $ 1,137.8 |
Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt at par value | 891 | 1,173.2 |
Less: Unamortized debt issuance costs and original issue discount | (21.8) | (35.4) |
Net carrying amount | 869.2 | 1,137.8 |
Estimated fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Estimated fair value | $ 1,034 | $ 1,136.5 |
Property, Plant, Equipment an_3
Property, Plant, Equipment and Mine Development (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation, depletion and amortization | $ (1,705.8) | $ (1,480.5) |
Property, plant, equipment and mine development, net | 2,817.6 | 2,950.6 |
Land and coal interests | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, Equipment, and mine development, gross | 2,487.3 | 2,494.1 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, Equipment, and mine development, gross | 596.1 | 550.8 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, Equipment, and mine development, gross | $ 1,440 | $ 1,386.2 |
Property, Plant, Equipment an_4
Property, Plant, Equipment and Mine Development - Narrative (Details) | Sep. 30, 2022 USD ($) |
Impaired Long-Lived Assets Held and Used [Line Items] | |
At-risk assets | $ 209,200,000 |
Other US Mining Operations | |
Impaired Long-Lived Assets Held and Used [Line Items] | |
At-risk assets | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Taxes | ||||
Income tax provision (benefit) | $ 10.7 | $ (3.7) | $ 21 | $ (10.3) |
Foreign Tax Authority | ||||
Income Taxes | ||||
Remeasurement of income tax | $ (1.6) | $ (1.1) | $ (3.5) | $ (1.6) |
Long-term Debt - Schedule of De
Long-term Debt - Schedule of Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Finance lease obligations | $ 25.7 | $ 25.7 | $ 29.3 | ||
Less: Debt issuance costs | (21.5) | (21.5) | (34.8) | ||
Total debt | 869.2 | 869.2 | 1,137.8 | ||
Less: Current portion of long-term debt (1) | 546.9 | 546.9 | 59.6 | ||
Long-term debt | 322.3 | 322.3 | 1,078.2 | ||
Other Noncash Income (Expense) | 4.6 | $ 4.9 | 13.6 | $ 15.2 | |
Interest expense | 33.8 | 45.5 | 110.8 | 143.3 | |
Interest Paid, Capitalized, Investing Activities | 26.4 | 40 | 104.2 | 144.3 | |
Financial assurance instruments | |||||
Debt Instrument [Line Items] | |||||
Interest expense | 13 | 13.6 | 40.1 | 38.3 | |
Indebtedness | |||||
Debt Instrument [Line Items] | |||||
Interest expense | 20.8 | $ 31.9 | 70.7 | $ 105 | |
Senior Notes | 6.000% Senior Secured Notes due March 2022 (2022 Notes) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | $ 0 | 23.1 | ||
Stated interest rate | 6% | 6% | |||
Senior Notes | 8.500% Senior Secured Notes due December 2024 (2024 Peabody Notes) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | $ 0 | 62.6 | ||
Stated interest rate | 8.50% | 8.50% | |||
Senior Notes | 10.000% Senior Secured Notes due December 2024 (2024 Co-Issuer Notes) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 81.6 | $ 81.6 | 193.9 | ||
Stated interest rate | 10% | 10% | |||
Senior Notes | 6.375% Senior Secured Notes due March 2025 (2025 Notes) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 66.2 | $ 66.2 | 334.9 | ||
Stated interest rate | 6.375% | 6.375% | |||
Senior Notes | 3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 320 | $ 320 | 0 | ||
Stated interest rate | 3.25% | 3.25% | |||
Term Loan | Senior Secured Term Loan due 2024 (Co-Issuer Term Loans) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 114.6 | $ 114.6 | 206 | ||
Term Loan | Senior Secured Term Loan due 2025, net of original issue discount (Senior Secured Term Loan) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 282.6 | $ 282.6 | $ 322.8 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 07, 2022 USD ($) | Sep. 30, 2022 USD ($) d $ / shares shares | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) d $ / shares shares | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) shares | Mar. 01, 2025 USD ($) | Oct. 26, 2022 | Oct. 17, 2022 USD ($) | Sep. 19, 2022 USD ($) | Jul. 25, 2022 USD ($) | Mar. 01, 2022 USD ($) | Feb. 24, 2022 $ / shares | Jan. 14, 2022 USD ($) | Jan. 29, 2021 USD ($) | Nov. 06, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||||
Debt issuance cost | $ 21,500,000 | $ 21,500,000 | $ 34,800,000 | |||||||||||||||
Interest expense | 33,800,000 | $ 45,500,000 | 110,800,000 | $ 143,300,000 | ||||||||||||||
Net loss (gain) on early debt extinguishment | 8,700,000 | (16,000,000) | 34,500,000 | (31,300,000) | ||||||||||||||
Finance lease obligations | 25,700,000 | 25,700,000 | 29,300,000 | |||||||||||||||
Letters of credit outstanding, amount | $ 505,400,000 | 505,400,000 | ||||||||||||||||
Proceeds from common stock issuances, net of costs | 222,000,000 | 177,200,000 | ||||||||||||||||
Debt Instrument, Exchange Offer, Required Purchase, Percentage Of Accreted Value | 25% | |||||||||||||||||
Interest Paid, Capitalized, Investing Activities | $ 26,400,000 | $ 40,000,000 | $ 104,200,000 | $ 144,300,000 | ||||||||||||||
Retirement of Debt | $ 270,900,000 | |||||||||||||||||
Letter of Credit | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Stated interest rate | 0.75% | 0.75% | ||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | $ 250,000,000 | ||||||||||||||||
Common Stock | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Common stock, shares issued (in shares) | shares | 187,100,000 | 187,100,000 | 176,300,000 | |||||||||||||||
Common stock, shares authorized (in shares) | shares | 450,000,000 | 450,000,000 | 450,000,000 | |||||||||||||||
Convertible Debt | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Shares Issued, Price Per Share | $ / shares | $ 14.98 | |||||||||||||||||
At Market Issuance | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 24,800,000 | |||||||||||||||||
At Market Issuance | Common Stock | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Sale of Stock, Consideration Received on Transaction | $ 225,000,000 | |||||||||||||||||
Debt for Equity Exchange | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Proceeds from common stock issuances, net of costs | $ 106,100,000 | |||||||||||||||||
Common stock, shares issued (in shares) | shares | 10,000,000 | |||||||||||||||||
Open Market Purchase | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Payment for debt extinguishment or debt prepayment cost | $ 232,400,000 | |||||||||||||||||
Common Stock | At Market Issuance | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Proceeds from common stock issuances, net of costs | 269,800,000 | |||||||||||||||||
3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 | |||||||||||||||||
Debt Instrument, Convertible, Threshold Trading Days | 20 | |||||||||||||||||
Senior Secured Term Loan due 2024 (Co-Issuer Term Loans) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, repurchase amount | $ 3,800,000 | $ 3,800,000 | ||||||||||||||||
Debt Securities, Available-for-Sale, Weighted Average Yield | 105.91% | 105.91% | ||||||||||||||||
Senior Secured Term Loan due 2024 (Co-Issuer Term Loans) | Increase | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument, Exchange Offer, Required Purchase Amount | $ 43,900,000 | $ 43,900,000 | ||||||||||||||||
Senior Secured Term Loan due 2024 (Co-Issuer Term Loans) | Weighted Average | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, repurchase amount | 4,000,000 | 4,000,000 | ||||||||||||||||
10.00% Revolving Credit Facility maturing 2025 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 225,000,000 | |||||||||||||||||
Proceeds from Issuance or Sale of Equity | $ 222,000,000 | |||||||||||||||||
10.00% Revolving Credit Facility maturing 2025 | At Market Issuance | Common Stock | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 10,100,000 | |||||||||||||||||
Senior Secured Term Loan Due 2025 and 6.375% Senior Secured Notes due March 2025 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Retirement of Debt | 48,800,000 | |||||||||||||||||
Payment for debt extinguishment or debt prepayment cost | 46,600,000 | |||||||||||||||||
8.500% Senior Secured Notes due December 20242 and 6.375% Senior Secured Notes due March 2025 [Domain] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Net loss (gain) on early debt extinguishment | $ 23,000,000 | |||||||||||||||||
10.000% Senior Secured Notes due December 2024, Senior Secured Term Loan due 2024, 6.375% Senior Secured Notes due March 2025, and Senior Secured Term Loan due 2025 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Net loss (gain) on early debt extinguishment | $ 8,700,000 | $ 11,500,000 | ||||||||||||||||
10.000% Senior Secured Notes due December 2024 and Senior Secured Term Loan due 2024 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument, Covenant, Liquidity Attributable To Co-Issuers | $ 60,000,000 | |||||||||||||||||
Debt Instrument, Exchange Offer, Required Purchase, Percentage Of Accreted Value | 103.91% | |||||||||||||||||
Mandatory principal prepayment, if required, period payable, threshold | $ 65,100,000 | 105,600,000 | ||||||||||||||||
Debt Securities, Available-for-Sale, Weighted Average Yield | 103.91% | 103.91% | ||||||||||||||||
LC Agreement | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Cash collateral posted | 28,500,000 | |||||||||||||||||
Debt repurchase, amount | 30,000,000 | |||||||||||||||||
LC Agreement | Subsequent Event | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument, Exchange Offer, Required Purchase Amount | $ 12,200,000 | |||||||||||||||||
Debt Instrument, Exchange Offer, Required Purchase, Percent of Accreted Value | 95.57% | |||||||||||||||||
Senior Notes | 3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Stated interest rate | 3.25% | 3.25% | ||||||||||||||||
Long-term debt | $ 320,000,000 | $ 320,000,000 | 0 | |||||||||||||||
Principal amount | $ 320,000,000 | |||||||||||||||||
Debt Issuance Costs, Gross | 11,200,000 | $ 11,200,000 | ||||||||||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | d | 30 | |||||||||||||||||
Debt Instrument, Principle Amount | $ 1,000 | $ 1,000 | ||||||||||||||||
Common Stock, Excess of the Conversion Price, Percentage | 130% | 130% | ||||||||||||||||
Principle Amount, Percentage | 98% | 98% | ||||||||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 19.85 | $ 19.85 | ||||||||||||||||
Conversion Price Premium, Percent | 32.50% | |||||||||||||||||
Debt instrument, convertible, conversion ratio | 50.3816 | 50.3816 | ||||||||||||||||
Senior Notes | 3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) | Subsequent Event | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Principle Amount, Percentage | 100% | |||||||||||||||||
Aggregate Principle Amount, Notes Outstanding | $ 75,000,000 | |||||||||||||||||
Senior Notes | 3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) | Minimum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 20 | |||||||||||||||||
Senior Notes | 6.000% Senior Secured Notes due March 2022 (2022 Notes) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Stated interest rate | 6% | 6% | ||||||||||||||||
Long-term debt | $ 0 | $ 0 | 23,100,000 | |||||||||||||||
Debt repurchase, amount | $ 23,100,000 | |||||||||||||||||
Senior Notes | 6.375% Senior Secured Notes due March 2025 (2025 Notes) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Stated interest rate | 6.375% | 6.375% | ||||||||||||||||
Long-term debt | $ 66,200,000 | $ 66,200,000 | 334,900,000 | |||||||||||||||
Debt repurchase, amount | $ 257,400,000 | |||||||||||||||||
Senior Notes | 8.500% Senior Secured Notes due December 2024 (2024 Peabody Notes) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Stated interest rate | 8.50% | 8.50% | ||||||||||||||||
Long-term debt | $ 0 | $ 0 | 62,600,000 | |||||||||||||||
Debt Instrument, Exchange Offer, Required Purchase Amount | $ 38,600,000 | |||||||||||||||||
Debt Instrument, Exchange Offer, Required Purchase, Percent of Accreted Value | 94.94% | |||||||||||||||||
Debt repurchase, amount | 100,000 | $ 62,600,000 | ||||||||||||||||
Senior Notes | 10.000% Senior Secured Notes due December 2024 (2024 Co-Issuer Notes) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Stated interest rate | 10% | 10% | ||||||||||||||||
Long-term debt | $ 81,600,000 | $ 81,600,000 | 193,900,000 | |||||||||||||||
Debt Instrument, Exchange Offer, Required Purchase Amount | $ 81,600,000 | |||||||||||||||||
Mandatory principal prepayment, if required, period payable, threshold | $ 27,200,000 | |||||||||||||||||
Debt instrument, repurchase amount | $ 97,500,000 | |||||||||||||||||
Debt Securities, Available-for-Sale, Weighted Average Yield | 105.91% | |||||||||||||||||
30 day repurchase threshold | d | 30 | 30 | ||||||||||||||||
Debt repurchase, amount | $ 18,200,000 | 300,000 | ||||||||||||||||
debt instrument, exchange offer, purchase amount required | $ 50,000,000 | |||||||||||||||||
Senior Notes | 10.000% Senior Secured Notes due December 2024 (2024 Co-Issuer Notes) | Increase | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument, Exchange Offer, Required Purchase Amount | $ 93,900,000 | $ 93,900,000 | ||||||||||||||||
Senior Notes | 10.00% Revolving Credit Facility maturing 2025 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Stated interest rate | 10% | 10% | ||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | |||||||||||||||||
Term Loan | Senior Secured Term Loan due 2024 (Co-Issuer Term Loans) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | $ 114,600,000 | $ 114,600,000 | 206,000,000 | |||||||||||||||
Debt Instrument, Exchange Offer, Required Purchase Amount | $ 50,000,000 | |||||||||||||||||
Mandatory principal prepayment, if required, period payable, threshold | 37,900,000 | |||||||||||||||||
Debt instrument, repurchase amount | 20,400,000 | 20,400,000 | ||||||||||||||||
Debt Securities, Available-for-Sale, Weighted Average Yield | 103.91% | 105.91% | ||||||||||||||||
Solicited bid under debt auction | 75,000,000 | |||||||||||||||||
Debt repurchase, amount | $ 17,200,000 | |||||||||||||||||
Term Loan | Senior Secured Term Loan due 2024 (Co-Issuer Term Loans) | Increase | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument, Exchange Offer, Required Purchase Amount | 61,200,000 | 61,200,000 | ||||||||||||||||
Term Loan | Senior Secured Term Loan due 2024 (Co-Issuer Term Loans) | Weighted Average | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, repurchase amount | 21,600,000 | $ 52,000,000 | 21,600,000 | |||||||||||||||
Term Loan | Senior Secured Term Loan due 2025, net of original issue discount (Senior Secured Term Loan) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | $ 282,600,000 | $ 282,600,000 | $ 322,800,000 | |||||||||||||||
Basis spread on variable rate | 2.75% | |||||||||||||||||
Term Loan | Senior Secured Term Loan due 2025, net of original issue discount (Senior Secured Term Loan) | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 5.83% | 5.83% | ||||||||||||||||
Term Loan | Senior Secured Term Loan due 2025, net of original issue discount (Senior Secured Term Loan) | Subsequent Event | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 6.33% | |||||||||||||||||
Line of credit | Letter of Credit | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument, Covenant, Aggregate Liquidity At End Of Each Quarter | $ 125,000,000 | $ 125,000,000 | ||||||||||||||||
Surety Bond | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Transaction support agreements, additional collateral to be posted | $ 75,000,000 |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Costs - Schedule of Net Periodic Benefit (Benefit) Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic pension credit | $ (12.2) | $ (8.6) | $ (36.7) | $ (26) |
Defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | 0.1 | 0 | 0.1 | 0.1 |
Interest cost on projected benefit obligation | 5.3 | 5.2 | 16 | 15.4 |
Expected return on plan assets | (6) | (5.8) | (17.9) | (17.2) |
Net periodic pension credit | (0.6) | (0.6) | (1.8) | (1.7) |
Postretirement benefit plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | 0.2 | 0.3 | 0.6 | 0.8 |
Interest cost on projected benefit obligation | 1.7 | 2.9 | 5.2 | 8.7 |
Expected return on plan assets | (0.2) | (0.3) | (0.6) | (0.7) |
Amortization of prior service credit | (13.4) | (11) | (40.3) | (33) |
Net periodic pension credit | $ (11.7) | $ (8.1) | $ (35.1) | $ (24.2) |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Costs - Narrative (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Liability for Future Policy Benefits, Individual and Group Annuities and Supplementary Contracts | $ 500 |
Defined benefit pension plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Funding threshold | 80% |
Earnings per Share (EPS) - Narr
Earnings per Share (EPS) - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Antidilutive shares excluded from EPS calculation (in shares) | 100,000 | 900,000 | 100,000 | 800,000 |
Earnings per Share (EPS) - Calc
Earnings per Share (EPS) - Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Basic EPS numerator: | ||||
Weighted average shares outstanding — basic | 144,100,000 | 114,900,000 | 141,400,000 | 104,900,000 |
Dilutive impact of share-based compensation awards | 1,700,000 | 0 | 1,600,000 | 0 |
Dilutive impact of 2028 Convertible Notes | 16,100,000 | 0 | 12,600,000 | 0 |
Basic income (loss) per share | $ 2.61 | $ (0.60) | $ 4.72 | $ (1.65) |
(Loss) income from discontinued operations | (0.01) | 0.22 | (0.02) | 0.19 |
Basic income (loss) per share | $ 2.60 | $ (0.38) | $ 4.70 | $ (1.46) |
Income (loss) from continuing operations, net of income taxes | $ 384.4 | $ (59.6) | $ 675.9 | $ (160.3) |
(Loss) income from discontinued operations, net of income taxes | (0.8) | 24.3 | (2.3) | 20 |
Less: Net income attributable to noncontrolling interests | 8.5 | 8.9 | 8.5 | 12.6 |
Income (loss) from continuing operations attributable to common stockholders | 375.9 | (68.5) | 667.4 | (172.9) |
Income (loss) from continuing operations attributable to common stockholders | 378.5 | (68.5) | 673.5 | (172.9) |
Net income (loss) attributable to common stockholders | $ 377.7 | $ (44.2) | $ 671.2 | $ (152.9) |
Weighted average shares outstanding — diluted | 161,900,000 | 114,900,000 | 155,600,000 | 104,900,000 |
Less: Net income attributable to noncontrolling interests | $ 8.5 | $ 8.9 | $ 8.5 | $ 12.6 |
Income (loss) from continuing operations attributable to common stockholders | 378.5 | (68.5) | 673.5 | (172.9) |
(Loss) income from discontinued operations, net of income taxes | (0.8) | 24.3 | (2.3) | 20 |
Net income (loss) attributable to common stockholders | $ 375.1 | $ (44.2) | $ 665.1 | $ (152.9) |
Diluted EPS attributable to common stockholders: | ||||
Income (loss) from continuing operations | $ 2.34 | $ (0.60) | $ 4.33 | $ (1.65) |
(Loss) income from discontinued operations | (0.01) | 0.22 | (0.02) | 0.19 |
Net income (loss) attributable to common stockholders | $ 2.33 | $ (0.38) | $ 4.31 | $ (1.46) |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Income (loss) from continuing operations, net of income taxes | $ 384.4 | $ (59.6) | $ 675.9 | $ (160.3) |
Dilutive impact of 2028 Convertible Notes | 16,100,000 | 0 | 12,600,000 | 0 |
Impact of dilutive securities (in shares) | 16,100,000 | 0 | 12,600,000 | 0 |
3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) | Senior Notes | ||||
Basic EPS numerator: | ||||
Add: Tax adjusted interest expense related to 2028 Convertible Notes | $ 2.6 | $ 0 | $ 6.1 | $ 0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Add: Tax adjusted interest expense related to 2028 Convertible Notes | $ 2.6 | $ 0 | $ 6.1 | $ 0 |
Financial Instruments and Oth_2
Financial Instruments and Other Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 01, 2022 | Apr. 01, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Nov. 06, 2020 | Apr. 03, 2017 | |
Guarantee Obligations [Line Items] | ||||||||||
Letters of credit outstanding, amount | $ 505.4 | $ 505.4 | ||||||||
Surety bonds amount | 1,380.5 | 1,380.5 | ||||||||
Asset retirement obligations | 725.8 | 725.8 | ||||||||
Net interest expense | 33.8 | $ 45.5 | 110.8 | $ 143.3 | ||||||
Surety Bonds Outstanding For Reclamation | 1,234.6 | 1,234.6 | ||||||||
Letters of Credit Outstanding for Reclamation | 369.9 | 369.9 | ||||||||
Restricted Cash | 44.5 | 44.5 | ||||||||
Accrued Reclamation Costs, Current | 43.8 | 43.8 | $ 15 | |||||||
Collateralized Agreements | 60.9 | 60.9 | $ 23.8 | |||||||
Letter of Credit | ||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Letters of credit outstanding, amount | 43.2 | 43.2 | ||||||||
Surety Bond | ||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Transaction support agreements, additional collateral to be posted | $ 75 | |||||||||
Transaction support agreements, additional collateral to be posted per year through 2025 | $ 57.4 | $ 38.7 | 25 | |||||||
Debt instrument, transaction support agreements, fair value of second liens on mining equipment | 200 | |||||||||
Transaction support agreements, additional collateral term, free cash flow in any twelve-month period | 100 | |||||||||
Transaction support agreements, additional collateral term, sale of assets benchmark (in excess of) | $ 10 | |||||||||
Accounts Receivable Securitization Program, April 1, 2022 | ||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 175 | $ 250 | ||||||||
Accounts Receivable Securitization Program, April 1, 2022 | Secured debt | ||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Outstanding borrowings | 0 | 0 | ||||||||
Net interest expense | 1.2 | $ 1 | 3.4 | $ 3 | ||||||
Accounts Receivable from Securitization | 10.9 | 10.9 | ||||||||
Secured debt | Accounts Receivable Securitization Program, April 1, 2022 | ||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Letters of credit outstanding, amount | 164.1 | $ 164.1 | ||||||||
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 | 2.10% | |||||||||
Letter of Credit | ||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 250 | $ 250 | ||||||||
Cash Collateral, Percentage of the aggregate amount of letters of credit outstanding | 103% | 103% | ||||||||
Stated interest rate | 0.75% | 0.75% | ||||||||
Deposit Rate, Percentage, Cash Collateral Posted | 0.0224 | |||||||||
Letter of Credit | Maximum | ||||||||||
Guarantee Obligations [Line Items] | ||||||||||
Transaction support agreements, additional collateral demands | $ 5 | $ 5 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2022 USD ($) | Jul. 29, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 09, 2015 buyer | Dec. 31, 2007 USD ($) |
Long-term Purchase Commitment [Line Items] | |||||
Securities class action settlement | $ 4.6 | ||||
Patriot | |||||
Long-term Purchase Commitment [Line Items] | |||||
Number of buyers | buyer | 2 | ||||
Black Lung Occupational Disease Liability | Patriot | Spinoff | |||||
Long-term Purchase Commitment [Line Items] | |||||
Initially determined potential exposure from patriot bankruptcy | $ 85.7 | $ 87.2 | $ 150 | ||
Capital Addition Purchase Commitments | |||||
Long-term Purchase Commitment [Line Items] | |||||
Unrecorded unconditional purchase obligation (within next five years) | 77.8 | ||||
Unrecorded unconditional purchase obligation (within next 12 months) | $ 71.3 |
Segment Information - Segment R
Segment Information - Segment Results (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reportable segment results | ||||
Revenue | $ 1,342.5 | $ 679 | $ 3,355.8 | $ 2,053.7 |
Adjusted EBITDA | 438.9 | 289.1 | 1,344.2 | 472.3 |
Seaborne Thermal Mining | ||||
Reportable segment results | ||||
Revenue | 353.2 | 260.7 | 959.3 | 631.2 |
Adjusted EBITDA | 171.2 | 104.4 | 438.5 | 204.3 |
Seaborne Metallurgical Mining | ||||
Reportable segment results | ||||
Revenue | 310.7 | 179.5 | 1,165.8 | 388 |
Adjusted EBITDA | 113.2 | 57.4 | 593.9 | 8.6 |
Powder River Basin Mining | ||||
Reportable segment results | ||||
Revenue | 290.5 | 247.1 | 771.4 | 724.1 |
Adjusted EBITDA | 37.9 | 37 | 43.5 | 112.6 |
Other U.S. Thermal Mining | ||||
Reportable segment results | ||||
Revenue | 261.4 | 184.6 | 689.4 | 496 |
Adjusted EBITDA | 72.7 | 45.1 | 184.6 | 125.6 |
Corporate and Other (1) | ||||
Reportable segment results | ||||
Revenue | 126.7 | (192.9) | (230.1) | (185.6) |
Adjusted EBITDA | $ 43.9 | $ 45.2 | $ 83.7 | $ 21.2 |
Segment Information - Reconcili
Segment Information - Reconciliation to Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Income (loss) from continuing operations, net of income taxes | $ 384.4 | $ (59.6) | $ 675.9 | $ (160.3) |
Depreciation, depletion and amortization | 80.7 | 77.9 | 227.4 | 223.3 |
Asset retirement obligation expenses | 13.1 | 14.3 | 40.8 | 45.3 |
Restructuring charges | 1 | 1.7 | 2.8 | 5.9 |
Changes in deferred tax asset valuation allowance and reserves and amortization of basis difference related to equity affiliates | (0.5) | (6.4) | (1.7) | (8.4) |
Interest expense | 33.8 | 45.5 | 110.8 | 143.3 |
Net loss (gain) on early debt extinguishment | 8.7 | (16) | 34.5 | (31.3) |
Interest income | (4.9) | (1.4) | (6.3) | (4.2) |
Unrealized (gains) losses on derivative contracts related to forecasted sales | (90.4) | 238.4 | 235.1 | 264 |
Unrealized losses (gains) on foreign currency option contracts | 1.4 | (0.6) | 4.4 | 8.2 |
Take-or-pay contract-based intangible recognition | (0.8) | (1) | (2.2) | (3.2) |
Income tax provision (benefit) | 10.7 | (3.7) | 21 | (10.3) |
Adjusted EBITDA | 438.9 | 289.1 | 1,344.2 | 472.3 |
Asset impairment | $ 1.7 | $ 0 | $ 1.7 | $ 0 |
Other Events (Details)
Other Events (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Other Commercial Events [Line Items] | ||
Mine Reclamation and Closing Liability, Noncurrent | $ 6.4 | $ 6.4 |
Millennium Mine | ||
Other Commercial Events [Line Items] | ||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 26.1 | 26.1 |
Wilkie Creek Mine | ||
Other Commercial Events [Line Items] | ||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 24.6 | $ 24.6 |