Segment Information | 3. Segment Information The Company has a portfolio of operating mines and development projects in Queensland, Australia, and in the states of Pennsylvania, Virginia and West Virginia in the U.S. The operations in Australia, or Australian Operations, comprise the 100%-owned Curragh producing mine complex. The operations in the United States, or U.S. Operations, comprise two 100%-owned producing mine complexes (Buchanan and Logan), one 100%-owned idled mine complex (Greenbrier) and two development properties (Mon Valley and Russell County). The Company operates its business along two reportable segments: Australia and the United States. The organization of the two reportable segments reflects how the Company’s chief operating decision maker, or CODM, manages and allocates resources to the various components of the Company’s business. The CODM uses Adjusted EBITDA as the primary metric to measure each segment’s operating performance. Adjusted EBITDA is not a measure of financial performance in accordance with U.S. GAAP. Investors should be aware that the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled financial measures used by other companies. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion and amortization and other foreign exchange losses. Adjusted EBITDA is also adjusted for certain discrete items that management exclude in analyzing each of the Company’s segments’ operating performance. “Other and corporate” relates to additional financial information for the corporate function such as accounting, treasury, legal, human resources, compliance, and tax. As such, the corporate function is not determined to be a reportable segment but is discretely disclosed for purposes of reconciliation to the Company’s condensed consolidated financial statements. Reportable segment results as of and for the three and six months ended June 30, 2022 and 2021 are presented below: Australia United States Other and Corporate Total (in US$ thousands) Three months ended June 30, 2022 Total revenues $ 578,388 $ 454,316 $ — $ 1,032,704 Adjusted EBITDA 196,315 252,394 ( 10,349) 438,360 Net income (loss) 127,905 181,146 ( 17,056) 291,995 Total assets 1,473,795 1,044,753 240,943 2,759,491 Capital expenditures 30,755 20,673 236 51,664 Three months ended June 30, 2021 Total revenues $ 251,432 $ 172,824 $ — $ 424,256 Adjusted EBITDA ( 13,880) 39,434 ( 7,493) 18,061 Net (loss) income ( 63,507) 18,323 ( 9,901) ( 55,085) Total assets 1,115,815 872,345 168,427 2,156,587 Capital expenditures 13,180 16,087 435 29,702 Six months ended June 30, 2022 Total revenues $ 1,183,686 $ 796,143 $ — $ 1,979,829 Adjusted EBITDA 435,284 432,294 ( 18,231) 849,347 Net income (loss) 278,052 304,113 ( 20,272) 561,893 Total assets 1,473,795 1,044,753 240,943 2,759,491 Capital expenditures 46,716 44,422 329 91,467 Six months ended June 30, 2021 Total revenues $ 489,726 $ 310,641 $ — $ 800,367 Adjusted EBITDA ( 36,937) 75,963 ( 13,324) 25,702 Net (loss) income ( 105,838) 28,713 ( 18,932) ( 96,057) Total assets 1,115,815 872,345 168,427 2,156,587 Capital expenditures 20,214 30,625 1,468 52,307 The reconciliations of Adjusted EBITDA to net income attributable to the Company for the three and six months ended June 30, 2022 and 2021 are as follows: Three months ended Six months ended June 30, June 30, 2022 2021 2022 2021 (in US$ thousands) (in US$ thousands) Net income (loss) $ 291,995 $ ( 55,085) $ 561,893 $ ( 96,057) Depreciation, depletion and amortization 51,384 41,212 89,393 94,293 Interest expense (net of income) 17,482 16,596 34,814 31,731 Other foreign exchange (gains) losses ( 25,138) 140 ( 23,147) 1,889 Loss on extinguishment of debt — 5,744 — 5,744 Income tax expense (benefit) 102,025 8,184 183,968 ( 10,884) Restructuring costs — 2,300 — 2,300 Losses on idled assets held for sale (1) 456 836 1,842 2,330 Increase (decrease) in provision for discounting and credit losses 156 ( 1,866) 584 ( 5,644) Consolidated Adjusted EBITDA $ 438,360 $ 18,061 $ 849,347 $ 25,702 (1) The reconciliations of capital expenditures per the Company’s segment information to capital expenditures disclosed on the unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 are as follows: Six months ended June 30, 2022 2021 (in US$ thousands) Capital expenditures per Condensed Consolidated Statements of Cash Flows $ 87,875 $ 58,307 Accruals for capital expenditures 11,067 — Payment for capital acquired in prior periods ( 7,475) ( 6,000) Capital expenditures per segment detail $ 91,467 $ 52,307 Disaggregation of Revenue The Company disaggregates the revenue from contracts with customers by major product group for each of the Company’s reportable segments, as the Company believes it best depicts the nature, amount, timing and uncertainty of revenues and cash flows. All revenue is recognized at a point in time. Three months ended June 30, 2022 Australia United States Total (in US$ thousands) Product Groups: Metallurgical coal $ 543,345 $ 450,858 $ 994,203 Thermal coal 25,001 1,793 26,794 Total coal revenue 568,346 452,651 1,020,997 Other (1) 10,042 1,665 11,707 Total $ 578,388 $ 454,316 $ 1,032,704 Three months ended June 30, 2021 Australia United States Total (in US$ thousands) Product Groups: Metallurgical coal $ 221,659 $ 168,472 $ 390,131 Thermal coal 21,090 2,543 23,633 Total coal revenue 242,749 171,015 413,764 Other (1) 8,683 1,809 10,492 Total $ 251,432 $ 172,824 $ 424,256 Six months ended June 30, 2022 Australia United States Total (in US$ thousands) Product Groups Metallurgical coal $ 1,097,353 $ 788,579 $ 1,885,932 Thermal coal 67,291 4,402 71,693 Total coal revenue 1,164,644 792,981 1,957,625 Other (1) 19,042 3,162 22,204 Total $ 1,183,686 $ 796,143 $ 1,979,829 Six months ended June 30, 2021 Australia United States Total (in US$ thousands) Product Groups Metallurgical coal $ 428,110 $ 305,456 $ 733,566 Thermal coal 44,089 3,311 47,400 Total coal revenue 472,199 308,767 780,966 Other (1) 17,527 1,874 19,401 Total $ 489,726 $ 310,641 $ 800,367 (1) Other revenue for the Australian segment includes the amortization of the Stanwell non-market coal supply contract obligation liability. |