Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Business Segment Information

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:    

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(Dollars in millions)
Sales and other operating revenue:
Domestic Coke	$	296.5		$	274.0		$	575.2		$	563.0
Brazil Coke	10.5			7.3			21.3			15.0
Coal Logistics	16.2			11.3			36.4			24.3
Coal Logistics intersegment sales	5.1			5.2			10.2			10.4
Corporate and Other(1)	—			0.1			—			1.5
Corporate and Other intersegment sales(1)	—			0.7			—			22.0
Elimination of intersegment sales	(5.1		)	(5.9		)	(10.2		)	(32.4		)
Total sales and other operating revenues	$	323.2		$	292.7		$	632.9		$	603.8
Adjusted EBITDA:
Domestic Coke	$	44.0		$	51.0		$	93.7		$	105.3
Brazil Coke	4.5			2.4			8.9			4.7
Coal Logistics	10.0			5.4			23.1			11.3
Corporate and Other(2)	(11.0		)	(12.3		)	(22.6		)	(31.0		)
Total Adjusted EBITDA	$	47.5		$	46.5		$	103.1		$	90.3
Depreciation and amortization expense:
Domestic Coke	$	26.8		$	19.7		$	53.4		$	40.0
Brazil Coke	0.1			0.2			0.3			0.4
Coal Logistics	6.1			8.0			12.2			13.4
Corporate and Other	0.3			0.7			0.7			3.0
Total depreciation and amortization expense	$	33.3		$	28.6		$	66.6		$	56.8
Capital expenditures:
Domestic Coke	$	7.9		$	6.9		$	19.9		$	16.9
Coal Logistics	0.7			9.0			1.3			12.4
Corporate and Other	1.1			0.5			1.2			0.9
Total capital expenditures	$	9.7		$	16.4		$	22.4		$	30.2

(1) Corporate and Other revenues related to our legacy coal mining business.

(2) Corporate and Other includes the activity from our legacy coal mining business, which incurred Adjusted EBITDA losses of $2.7 million and $6.2 million during the three and six months ended June 30, 2017, respectively, as well as losses of $3.0 million and $9.3 million during the three and six months ended June 30, 2016, respectively.

The following table sets forth the Company's segment assets:

	June 30, 2017		December 31, 2016
	(Dollars in millions)
Segment assets
Domestic Coke	$	1,470.1	$	1,495.0
Brazil Coke	9.7		32.6
Coal Logistics	504.1		515.6
Corporate and Other	106.4		73.1
Segment assets, excluding tax assets	2,090.3		2,116.3
Tax assets	16.5		4.6
Total assets	$	2,106.8	$	2,120.9

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
	(Dollars in millions)
Sales and other operating revenue:
Coke sales	$	284.7	$	258.4	$	548.8	$	531.8
Steam and electricity sales	10.9		14.4		24.6		28.9
Operating and licensing fees	10.5		7.4		21.3		15.1
Coal logistics	14.3		11.0		32.4		23.6
Other	2.8		1.5		5.8		4.4
Sales and other operating revenue	$	323.2	$	292.7	$	632.9	$	603.8

Reconciliation of Adjusted EBITDA 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:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(Dollars in millions)
Net cash provided by operating activities	$	24.9		$	92.1		$	54.4		$	121.5
Subtract:
Loss on divestiture of business	—			5.1			—			14.7
Depreciation and amortization expense	33.3			28.6			66.6			56.8
Deferred income tax expense	14.0			0.4			79.8			3.6
Loss (gain) on extinguishment of debt	20.2			(3.5		)	20.3			(23.9		)
Changes in working capital and other	(11.1		)	60.5			(23.1		)	56.7
Net (loss) income	$	(31.5	)	$	1.0		$	(89.2	)	$	13.6
Add:
Coal rationalization costs(1)	$	—		$	—		$	—		$	0.2
Depreciation and amortization expense	33.3			28.6			66.6			56.8
Interest expense, net	15.2			13.4			28.9			27.4
Loss (gain) on extinguishment of debt	20.2			(3.5		)	20.3			(23.9		)
Income tax expense	4.7			—			70.9			3.3
Contingent consideration adjustments(2)	0.3			—			0.3			(3.7		)
Loss on divestiture of business	—			5.1			—			14.7
Expiration of land deposits and write-off of costs related to potential new cokemaking facility(3)	5.3			1.9			5.3			1.9
Adjusted EBITDA(4)	$	47.5		$	46.5		$	103.1		$	90.3
Subtract: Adjusted EBITDA attributable to noncontrolling interest(5)	17.5			18.6			39.1			38.9
Adjusted EBITDA attributable to SunCoke Energy, Inc.	$	30.0		$	27.9		$	64.0		$	51.4

(1) Prior to the divestiture of our coal mining business, the Company incurred coal rationalization costs including employee severance, contract termination costs and other costs to idle mines incurred during the execution of our coal rationalization plan.

(2) As a result of the increase in fair value of the contingent consideration liability during the second quarter of 2017, the Partnership recognized expense of $0.3 million during the three and six months ended June 30, 2017. The Partnership amended its contingent consideration terms with The Cline Group during the first quarter of 2016. This amendment resulted in a gain of $3.7 million recorded during the six months ended June 30, 2016.

(3) In 2014, we finalized the required permitting and engineering plan for a potential new cokemaking facility to be constructed in Kentucky. However, in June 2017, due to our focus on renewing our existing customer contracts and the lack of any long-term customer commitment for a majority of the facility's capacity, we decided to terminate the project. As a result, during the second quarter of 2017, the Company wrote-off previously capitalized engineering and land deposit costs of $5.3 million. During the second quarter of 2016, the Company wrote-off expiring land deposits related to the project of $1.9 million.

(4) In accordance with the SEC’s May 2016 update of its guidance on the appropriate use of non-GAAP financial measures, Adjusted EBITDA does not include Coal Logistics deferred revenue until it is recognized as GAAP revenue.

(5) Reflects noncontrolling interest in Indiana Harbor and the portion of the Partnership owned by public unitholders.