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percent. 2015 capital spending declined 35 percent, and extensive efforts were <br />advanced to streamline the organization leading to a 22 percent reduction in SG&A <br />expenses, the lowest levels in nearly a decade. Given ongoing market challenges, the <br />company continues to drive cost improvements at all levels of the organization. <br />• Preserving liquidity while reducing debt. The company continued to preserve <br />liquidity in 2015 by completing a bond offering, modifying its credit agreement, reducing <br />costs and lowering capital spending. Peabody and its advisors are currently in <br />discussions with debt holders to evaluate financial alternatives, including potential debt <br />exchanges, debt buybacks and new financing, to preserve liquidity and delever the <br />balance sheet. Peabody also has a number of committed obligations that expire or <br />meaningfully decline in the next two years: <br />o The company's final PRB reserve installment of approximately $250 million is <br />scheduled to be paid in the second half of 2016. The payment is related to the <br />company's last lease -by -application process in 2012. As a result of investments <br />in prior years, Peabody's PRB reserves represent more than 25 years of current <br />production, which provides a competitive advantage relative to other producers. <br />o Peabody's existing currency and fuel hedges decline in 2016 and expire by the <br />end of 2017. As these positions expire, the company expects progressively <br />lower cash settlements in 2016 and 2017 relative to realized 2015 hedge losses <br />of $436.8 million. <br />o The company proactively assigned excess Australian port capacity to another <br />producer, which is expected to reduce infrastructure costs by approximately $60 <br />million through 2020. In addition, Peabody recently amended contracts to reduce <br />certain U.S. transportation and logistics costs expected to be due in early 2017. <br />In connection with these amendments, Peabody will realize a net reduction of <br />approximately $45 million in estimated liquidated damage payments that <br />otherwise would have become due in early 2017. <br />o The company recently amended its 2013 agreement with the United Mine <br />Workers of America, improving Peabody's expected 2017 cash flows by $70 <br />million while deferring the 2016 payments over 10 months. <br />• Reshaping the portfolio to unlock value. Peabody announced the planned sale of its <br />New Mexico and Colorado assets for $358 million in November, and the purchaser is <br />currently arranging financing. Peabody also announced plans to divest its interest in the <br />Prairie State Energy Campus for $57 million. In 2015, the company realized cash <br />proceeds of $70 million related to its ongoing resource management activities through <br />the sale of surplus land and coal reserves. Peabody continues to evaluate its portfolio to <br />