Business Segment Information (Tables)

12 Months Ended

Dec. 31, 2015

The following table includes Adjusted EBITDA, which is the measure of segment profit or loss and liquidity reported to the chief operating decision maker for purposes of allocating resources to the segments and assessing their performance:



	Years Ended December 31,
	2015			2014			2013
	(Dollars in millions)
Sales and other operating revenue:
Domestic Coke	$	1,243.6		$	1,388.3		$	1,528.7
Brazil Coke	34.0			37.0			35.4
Coal Logistics	60.8			36.2			8.1
Coal Logistics intersegment sales	20.4			18.8			5.5
Coal Mining	12.9			29.2			61.3
Coal Mining intersegment sales	101.0			136.0			136.7
Elimination of intersegment sales	(121.4		)	(154.8		)	(142.2		)
Total sales and other operating revenue	$	1,351.3		$	1,490.7		$	1,633.5

Adjusted EBITDA:
Adjusted EBITDA
Domestic Coke	$	210.1		$	247.9		$	243.2
Brazil Coke	22.4			18.9			16.1
India Coke	(1.9		)	(3.1		)	0.9
Coal Logistics	38.4			14.3			4.7
Coal Mining	(18.9		)	(16.0		)	(15.1		)
Corporate and Other, including legacy costs, net⁽¹⁾	(64.3		)	(51.3		)	(34.7		)
Adjusted EBITDA	$	185.8		$	210.7		$	215.1

Depreciation and amortization expense:
Domestic Coke⁽²⁾	$	81.6		$	81.3		$	68.1
Brazil Coke	0.6			0.5			0.4
Coal Logistics	14.0			7.6			1.8
Coal Mining⁽³⁾	10.1			13.9			23.2
Corporate and Other	2.8			3.0			2.5
Total depreciation and amortization expense	$	109.1		$	106.3		$	96.0

Capital expenditures:
Domestic Coke	$	67.6		$	109.2		$	121.2
Brazil Coke	—			0.9			0.8
Coal Logistics	6.0			2.9			0.2
Coal Mining	1.7			8.8			20.1
Corporate and Other	0.5			3.4			3.3
Total capital expenditures	$	75.8		$	125.2		$	145.6

(1) Legacy costs, net include costs associated with former mining employee-related liabilities prior to the implementation of our current contractor mining business, net of certain royalty revenues. See details of these legacy items below.



	Years Ended December 31,
	2015			2014			2013
	(Dollars in millions)
Black lung (expense) benefit	$	(9.8	)	$	(14.3	)	$	0.3
Postretirement benefit plan benefit	3.6			3.7			1.0
Defined benefit plan (expense) benefit	(13.1		)	(0.2		)	0.1
Workers compensation expense	(2.3		)	(4.6		)	(2.0		)
Other	(0.4		)	0.7			0.6
Total legacy costs, net	$	(22.0	)	$	(14.7	)	$	—

(2) We revised the estimated useful lives at our domestic cokemaking facilities, resulting in additional depreciation of $10.2 million, $15.6 million and $9.5 million, or $0.16, $0.23 and $0.14 per common share from operations, during 2015, 2014 and 2013, respectively.

(3) We revised the estimated useful lives of certain coal preparation plant assets in our Coal Mining segment, which resulted in additional depreciation of $4.9 million and $1.0 million, or $0.08 and $0.01 per common share, during 2015 and 2014, respectively.



	Years Ended December 31,
	2015		2014
	(Dollars in millions)
Segment assets
Domestic Coke	$	1,534.2	$	1,577.9
Brazil Coke	58.8		61.6
India Coke	—		22.5
Coal Logistics	532.0		114.4
Coal Mining	20.5		45.9
Corporate and Other	98.4		131.4
Segment assets, excluding tax assets	2,243.9		1,953.7
Tax assets	11.6		6.0
Total Assets	$	2,255.5	$	1,959.7

The following table sets forth the Company’s total sales and other operating revenue by product or service:



	Years Ended December 31,
	2015		2014		2013
	(Dollars in millions)
Sales and other operating revenue:
Coke sales	$	1,182.0	$	1,323.1	$	1,462.9
Steam and electricity sales	61.5		65.7		65.6
Operating and licensing fees	34.0		37.0		35.4
Coal logistics	58.8		33.9		7.2
Metallurgical coal sales	11.0		24.0		61.0
Other	4.0		7.0		1.4
Sales and other operating revenue	$	1,351.3	$	1,490.7	$	1,633.5

Reconciliation of Adjusted EBITDA (unaudited) to net income

Below is a reconciliation of Adjusted EBITDA to net income and net cash provided by operating activities, which are its most directly comparable financial measures calculated and presented in accordance with GAAP:



	Years Ended December 31,
	2015			2014			2013
	(Dollars in millions)
Adjusted EBITDA attributable to SunCoke Energy, Inc.	$	104.6		$	150.0		$	173.9
Add: Adjusted EBITDA attributable to noncontrolling interest⁽¹⁾	81.2			60.7			41.2
Adjusted EBITDA	$	185.8		$	210.7		$	215.1
Subtract:
Adjustment to unconsolidated affiliate earnings⁽²⁾	$	20.8		$	33.5		$	3.2
Coal rationalization costs⁽³⁾	0.6			18.5			—
Depreciation and amortization expense	109.1			106.3			96.0
Interest expense, net	56.7			63.2			52.3
Income tax (benefit) expense	(8.8		)	(58.8		)	6.7
Sales discount provided to customers due to sharing of nonconventional fuels tax credits⁽⁴⁾	—			(0.5		)	6.8
Asset and goodwill impairment	—			150.3			—
Coal Logistics deferred revenue⁽⁵⁾	(2.9		)	—			—
Net income (loss)	$	10.3		$	(101.8	)	$	50.1
Add:
Asset and goodwill impairment	$	—		$	150.3		$	—
Depreciation and amortization expense	109.1			106.3			96.0
Deferred income tax (benefit) expense	(5.6		)	(64.4		)	1.6
Loss on extinguishment of debt	0.5			15.4			—
Changes in working capital and other	26.8			6.5			3.6
Net cash provided by operating activities	$	141.1		$	112.3		$	151.3


(1)	Reflects non-controlling interest in Indiana Harbor and the portion of the Partnership owned by public unitholders.


(2)	Reflects share of interest, taxes, depreciation and amortization related to VISA SunCoke. The years ended December 31, 2015 and 2014 also reflect impairments of our investment in VISA SunCoke of $19.4 million and $30.5 million, respectively.


(3)	Coal rationalization costs include employee severance, contract termination costs and other costs to idle mines incurred during the execution of our coal rationalization plan.


(4)	At December 31, 2013, we had $13.6 million accrued related to sales discounts to be paid to our customer at our Granite City facility. During the first quarter of 2014, we settled this obligation for $13.1 million which resulted in a gain of $0.5 million. The gain was recorded in sales and other operating revenue on our Combined and Consolidated Statement of Operations.


(5)	Coal Logistics deferred revenue adjusts for differences between the timing of recognition of take-or-pay shortfalls into revenue for GAAP purposes versus the timing of payments from our customers. This adjustment aligns Adjusted EBITDA more closely with cash flow.