Segment Information | Segment Information The Company extracts, processes and markets met and thermal coal from surface and deep mines for sale to steel and coke producers, industrial customers, and electric utilities. The Company conducts mining operations only in the United States with mines in Central and Northern Appalachia. As of September 30, 2019 , the Company has three reportable segments: CAPP - Met, CAPP - Thermal, and NAPP. CAPP - Met consists of eight active mines and two preparation plants in Virginia, seventeen active mines and six preparation plants in West Virginia, as well as expenses associated with certain idled/closed mines. CAPP - Thermal consists of five active mines and three preparation plants in West Virginia, as well as expenses associated with certain idled/closed mines. NAPP consists of one active mine in Pennsylvania and one preparation plant, as well as expenses associated with one closed mine. Prior to the third quarter of 2019, the Company had four reportable segments: CAPP - Met, CAPP - Thermal, NAPP, and Trading and Logistics. As a result of the changes in key operating personnel during the third quarter of 2019 including changes to the Company’s Chief Operating Decision Maker (“CODM”), the Company was required to re-evaluate its previous conclusions with respect to its segment reporting during the period. To conform to the current period reportable segments presentation, the prior periods have been restated to reflect the change in reportable segments. Prior to the Merger, the Company had three reportable segments: CAPP, NAPP, and Trading and Logistics. In addition to the three reportable segments, the All Other category includes general corporate overhead and corporate assets and liabilities and the elimination of certain intercompany activity. The operating results of these reportable segments are regularly reviewed by the CODM, who is the Chief Executive Officer of the Company. Segment operating results and capital expenditures for the three months ended September 30, 2019 were as follows: Three Months Ended September 30, 2019 CAPP - Met CAPP - Thermal NAPP All Other Consolidated Total revenues $ 373,356 $ 80,432 $ 71,446 $ 630 $ 525,864 Depreciation, depletion, and amortization $ 38,212 $ 13,972 $ 6,241 $ 2,417 $ 60,842 Amortization of acquired intangibles, net $ 4,765 $ (3,359 ) $ 908 $ — $ 2,314 Adjusted EBITDA $ 58,796 $ 1,954 $ (4,152 ) $ (16,575 ) $ 40,023 Capital expenditures $ 47,316 $ 5,706 $ 7,114 $ 165 $ 60,301 Segment operating results and capital expenditures for the three months ended September 30, 2018 were as follows: Three Months Ended September 30, 2018 CAPP - Met CAPP - Thermal NAPP All Other Consolidated Total revenues $ 378,259 $ — $ 68,950 $ 662 $ 447,871 Depreciation, depletion, and amortization $ 5,658 $ — $ 5,298 $ 185 $ 11,141 Amortization of acquired intangibles, net $ — $ — $ 1,158 $ — $ 1,158 Adjusted EBITDA $ 47,897 $ — $ 972 $ (10,063 ) $ 38,806 Capital expenditures $ 7,984 $ — $ 10,270 $ 119 $ 18,373 Segment operating results and capital expenditures for the nine months ended September 30, 2019 were as follows: Nine Months Ended September 30, 2019 CAPP - Met CAPP - Thermal NAPP All Other Consolidated Total revenues $ 1,340,684 $ 225,698 $ 222,750 $ 2,052 $ 1,791,184 Depreciation, depletion, and amortization $ 113,714 $ 44,586 $ 19,390 $ 7,237 $ 184,927 Amortization of acquired intangibles, net $ 5,816 $ (12,142 ) $ 1,614 $ — $ (4,712 ) Adjusted EBITDA $ 283,483 $ 8,704 $ 21,900 $ (49,930 ) $ 264,157 Capital expenditures $ 105,008 $ 13,365 $ 23,317 $ 2,493 $ 144,183 Segment operating results and capital expenditures for the nine months ended September 30, 2018 were as follows: Nine Months Ended September 30, 2018 CAPP - Met CAPP - Thermal NAPP All Other Consolidated Total revenues $ 1,240,516 $ — $ 215,710 $ 2,895 $ 1,459,121 Depreciation, depletion, and amortization $ 17,636 $ — $ 15,761 $ 554 $ 33,951 Amortization of acquired intangibles, net $ — $ — $ 12,468 $ — $ 12,468 Adjusted EBITDA $ 235,151 $ — $ 19,161 $ (30,386 ) $ 223,926 Capital expenditures $ 23,829 $ — $ 32,611 $ 282 $ 56,722 The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for the three months ended September 30, 2019 : Three Months Ended September 30, 2019 CAPP - Met CAPP - Thermal NAPP All Other Consolidated Net income (loss) from continuing operations $ 13,033 $ (11,338 ) $ (12,304 ) $ (32,952 ) $ (43,561 ) Interest expense 84 6 1 18,756 18,847 Interest income (4 ) — (15 ) (1,744 ) (1,763 ) Income tax benefit — — — (3,102 ) (3,102 ) Depreciation, depletion and amortization 38,212 13,972 6,241 2,417 60,842 Merger related costs — — — 68 68 Non-cash stock compensation expense 348 3 — 2,387 2,738 Mark-to-market adjustment - acquisition-related obligations — — — (3,238 ) (3,238 ) Accretion on asset retirement obligations 2,326 2,670 1,017 833 6,846 Asset impairment 32 — — — 32 Amortization of acquired intangibles, net 4,765 (3,359 ) 908 — 2,314 Adjusted EBITDA $ 58,796 $ 1,954 $ (4,152 ) $ (16,575 ) $ 40,023 The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for the three months ended September 30, 2018 : Three Months Ended September 30, 2018 CAPP - Met CAPP - Thermal NAPP All Other Consolidated Net income (loss) from continuing operations $ 41,694 $ — $ (5,923 ) $ (21,760 ) $ 14,011 Interest expense 4 — (490 ) 9,040 8,554 Interest income (7 ) — (12 ) (488 ) (507 ) Income tax expense — — — 12 12 Depreciation, depletion and amortization 5,658 — 5,298 185 11,141 Merger related costs — — — 1,181 1,181 Non-cash stock compensation expense — — — 1,885 1,885 Gain on settlement of acquisition-related obligations — — — (118 ) (118 ) Accretion on asset retirement obligations 548 — 941 — 1,489 Amortization of acquired intangibles, net — — 1,158 — 1,158 Adjusted EBITDA $ 47,897 $ — $ 972 $ (10,063 ) $ 38,806 The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for the nine months ended September 30, 2019 : Nine Months Ended September 30, 2019 CAPP - Met CAPP - Thermal NAPP All Other Consolidated Net income (loss) from continuing operations $ 154,020 $ (34,675 ) $ (2,118 ) $ (128,498 ) $ (11,271 ) Interest expense 306 16 2 49,755 50,079 Interest income (12 ) — (38 ) (5,534 ) (5,584 ) Income tax benefit — — — (8,880 ) (8,880 ) Depreciation, depletion and amortization 113,714 44,586 19,390 7,237 184,927 Merger related costs — — — 1,055 1,055 Non-cash stock compensation expense 1,127 60 — 6,276 7,463 Mark-to-market adjustment - acquisition-related obligations — — — (288 ) (288 ) Accretion on asset retirement obligations 6,986 7,401 3,050 2,488 19,925 Loss on modification and extinguishment of debt — — — 26,459 26,459 Asset impairment (1) 5,858 — — — 5,858 Cost impact of coal inventory fair value adjustment (2) 4,751 3,458 — — 8,209 Gain on assets acquired in an exchange transaction (3) (9,083 ) — — — (9,083 ) Amortization of acquired intangibles, net 5,816 (12,142 ) 1,614 — (4,712 ) Adjusted EBITDA $ 283,483 $ 8,704 $ 21,900 $ (49,930 ) $ 264,157 (1) Asset impairment primarily related to the write-off of prepaid purchased coal from Blackjewel as a result of Blackjewel’s Chapter 11 bankruptcy filing on July 1, 2019. Refer to Note 20 for further developments within subsequent event disclosures. (2) The cost impact of the coal inventory fair value adjustment as a result of the Alpha Merger was completed during the three months ended June 30, 2019. (3) During the nine months ended September 30, 2019 , the Company entered into an exchange transaction which primarily included the release of the PRB overriding royalty interest owed to the Company in exchange for met coal reserves which resulted in a gain of $9,083 . The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for the nine months ended September 30, 2018 : Nine Months Ended September 30, 2018 CAPP - Met CAPP - Thermal NAPP All Other Consolidated Net income (loss) from continuing operations $ 230,898 $ — $ (11,028 ) $ (72,917 ) $ 146,953 Interest expense 316 — (839 ) 27,061 26,538 Interest income (35 ) — (24 ) (770 ) (829 ) Income tax expense — — — 133 133 Depreciation, depletion and amortization 17,636 — 15,761 554 33,951 Merger related costs — — — 5,064 5,064 Management restructuring costs (1) — — — 2,659 2,659 Non-cash stock compensation expense — — — 8,240 8,240 Gain on settlement of acquisition-related obligations — — — (410 ) (410 ) Gain on sale of disposal group (2) (16,386 ) — — — (16,386 ) Accretion on asset retirement obligations 2,722 — 2,823 — 5,545 Amortization of acquired intangibles, net — — 12,468 — 12,468 Adjusted EBITDA $ 235,151 $ — $ 19,161 $ (30,386 ) $ 223,926 (1) Management restructuring costs are related to severance expense associated with senior management changes in the nine months ended September 30, 2018 . (2) During the fourth quarter of 2017, the Company entered into an asset purchase agreement to sell a disposal group (comprised of property, plant and equipment and associated asset retirement obligations) within the CAPP - Met segment. From the date the Company entered into the asset purchase agreement through the transaction close date, the property, plant and equipment and associated asset retirement obligations were classified as held for sale in amounts representing the fair value of the disposal group. Upon permit transfer, the transaction closed on April 2, 2018. The Company paid $10,000 in connection with the transaction, which was paid into escrow on March 27, 2018 and transferred to the buyer at the transaction close date, and expects to pay a series of additional cash payments in the aggregate amount of $1,500 , per the terms stated in the agreement, and recorded a gain on sale of $16,386 within other expenses (income) within the Condensed Consolidated Statements of Operations. No asset information has been provided for these reportable segments as the CODM does not regularly review asset information by reportable segment. The Company markets produced, processed and purchased coal to customers in the United States and in international markets, primarily India, Brazil, Netherlands, Turkey, and France. Export coal revenues were the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total coal revenues $ 523,987 $ 443,005 $ 1,784,775 $ 1,446,538 Export coal revenues (1) $ 261,815 $ 384,597 $ 967,959 $ 1,267,642 Export coal revenues as % of total coal revenues 50 % 87 % 54 % 88 % (1) The amounts for the three months ended September 30, 2018 include $62,929 , $58,402 , and $56,519 of export coal revenues from external customers in India, Turkey, and Brazil, respectively, recorded within the CAPP - Met and NAPP segments. The amounts for the nine months ended September 30, 2019 include $228,754 of export coal revenues from external customers in India, recorded within the CAPP - Met, CAPP - Thermal, and NAPP segments. The amounts for the nine months ended September 30, 2018 include $352,344 and $218,486 of export coal revenues from external customers in India and Brazil, respectively, recorded within the CAPP - Met and NAPP segments. Revenue is tracked within the Company’s accounting records based on the product destination. The Company sold 440 and 1,705 tons of coal purchased from third parties, excluding tons sold related to the Back-to-Back Coal Supply Agreements, for the three months ended September 30, 2019 and 2018, respectively, representing approximately 8% and 44% , respectively, of total coal sales volume during such periods. The Company sold 1,815 and 4,938 tons of coal purchased from third parties, excluding tons sold related to the Back-to-Back Coal Supply Agreements, for the nine months ended September 30, 2019 and 2018, respectively, representing approximately 10% and 41% , respectively, of total coal sales volume during such periods. The Company purchased 1,156 and 3,451 tons of this coal from Alpha during the three and nine months ended September 30, 2018 . Additionally, one of the Company’s customers had an outstanding balance in excess of 10% of the total accounts receivable balance as of September 30, 2019 , and two of the Company’s customers had outstanding balances each in excess of 10% of the total accounts receivable balance as of December 31, 2018. |