Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 23, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35243 | |
Entity Registrant Name | SUNCOKE ENERGY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0640593 | |
Entity Address, Address Line One | 1011 Warrenville Road | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | Lisle | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60532 | |
City Area Code | 630 | |
Local Phone Number | 824-1000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | SXC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 83,035,998 | |
Entity Central Index Key | 0001514705 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Sales and other operating revenue | $ 364.3 | $ 338 | $ 724.2 | $ 720.7 |
Costs and operating expenses | ||||
Cost of products sold and operating expenses | 278.6 | 262.5 | 552.6 | 566.9 |
Selling, general and administrative expenses | 17.7 | 16.5 | 33 | 32.7 |
Depreciation and amortization expense | 34.1 | 34.1 | 66.5 | 68.2 |
Total costs and operating expenses | 330.4 | 313.1 | 652.1 | 667.8 |
Operating income | 33.9 | 24.9 | 72.1 | 52.9 |
Interest expense, net | 14.2 | 14.9 | 26.9 | 29.5 |
Loss (gain) on extinguishment of debt | 31.9 | 0 | 31.9 | (2.9) |
(Loss) income before income tax (benefit) expense | (12.2) | 10 | 13.3 | 26.3 |
Income tax (benefit) expense | (4.7) | 2.2 | 2.6 | 12.6 |
Net (loss) income | (7.5) | 7.8 | 10.7 | 13.7 |
Less: Net income attributable to noncontrolling interests | 1.3 | 1.3 | 3 | 2.3 |
Net (loss) income attributable to SunCoke Energy, Inc. | $ (8.8) | $ 6.5 | $ 7.7 | $ 11.4 |
(Loss) earnings attributable to SunCoke Energy, Inc. per common share: | ||||
Basic (USD per share) | $ (0.11) | $ 0.08 | $ 0.09 | $ 0.14 |
Diluted (USD per share) | $ (0.11) | $ 0.08 | $ 0.09 | $ 0.14 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 83 | 82.8 | 82.9 | 83.2 |
Diluted (in shares) | 83 | 82.9 | 83.5 | 83.4 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (7.5) | $ 7.8 | $ 10.7 | $ 13.7 |
Other comprehensive income (loss): | ||||
Reclassifications of prior service benefit and actuarial benefit amortization to earnings, net of tax | 0.1 | 0 | 0.2 | 0 |
Currency translation adjustment | 0.9 | (0.4) | 0.2 | (1.5) |
Comprehensive (loss) income | (6.5) | 7.4 | 11.1 | 12.2 |
Less: Comprehensive income attributable to noncontrolling interests | 1.3 | 1.3 | 3 | 2.3 |
Comprehensive (loss) income attributable to SunCoke Energy, Inc. | $ (7.8) | $ 6.1 | $ 8.1 | $ 9.9 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 51.7 | $ 48.4 |
Receivables, net | 49.5 | 46.3 |
Inventories | 143.8 | 126.6 |
Income tax receivable | 2.8 | 5.5 |
Other current assets | 5.9 | 2.9 |
Total current assets | 253.7 | 229.7 |
Properties, plants and equipment (net of accumulated depreciation of $1,097.5 million and $1,032.9 million at June 30, 2021 and December 31, 2020, respectively) | 1,289.8 | 1,328 |
Intangible assets, net | 36.2 | 37.2 |
Deferred charges and other assets | 18.3 | 18.5 |
Total assets | 1,598 | 1,613.4 |
Liabilities and Equity | ||
Accounts payable | 111.7 | 104.1 |
Accrued liabilities | 47.1 | 49.8 |
Current portion of financing obligation | 3.1 | 3 |
Interest payable | 0.6 | 2 |
Total current liabilities | 162.5 | 158.9 |
Long-term debt and financing obligation | 650.2 | 673.9 |
Accrual for black lung benefits | 61.8 | 60 |
Retirement benefit liabilities | 23.6 | 24.7 |
Deferred income taxes | 159.9 | 159.3 |
Asset retirement obligations | 11.9 | 11.4 |
Other deferred credits and liabilities | 24.8 | 24.3 |
Total liabilities | 1,094.7 | 1,112.5 |
Equity | ||
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no issued shares at both June 30, 2021 and December 31, 2020 | 0 | 0 |
Common stock, $0.01 par value. Authorized 300,000,000 shares; issued 98,392,059 and 98,177,941 shares at June 30, 2021 and December 31, 2020, respectively | 1 | 1 |
Treasury stock, 15,404,482 shares at both June 30, 2021 and December 31, 2020 | (184) | (184) |
Additional paid-in capital | 717.1 | 715.7 |
Accumulated other comprehensive loss | (16.7) | (17.1) |
Retained deficit | (49) | (46.6) |
Total SunCoke Energy, Inc. stockholders’ equity | 468.4 | 469 |
Noncontrolling interest | 34.9 | 31.9 |
Total equity | 503.3 | 500.9 |
Total liabilities and equity | $ 1,598 | $ 1,613.4 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 1,097.5 | $ 1,032.9 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares, issued (in shares) | 98,392,059 | 98,177,941 |
Treasury stock, shares (in shares) | 15,404,482 | 15,404,482 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net (loss) income | $ 10.7 | $ 13.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 66.5 | 68.2 |
Deferred income tax expense | 0.6 | 15 |
Payments in excess of expense for postretirement plan benefits | (0.9) | (1) |
Share-based compensation expense | 2.3 | 2.3 |
Loss (gain) on extinguishment of debt | 31.9 | (2.9) |
Changes in working capital pertaining to operating activities: | ||
Receivables, net | (3.2) | 10 |
Inventories | (17.7) | 11.8 |
Accounts payable | 14.1 | (56.9) |
Accrued liabilities | (2.8) | (5.5) |
Interest payable | (1.4) | (0.1) |
Income taxes | 2.7 | (3.9) |
Other | 1.8 | (2.1) |
Net cash provided by operating activities | 104.6 | 48.6 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (33.7) | (36.9) |
Net cash used in investing activities | (33.7) | (36.9) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of long-term debt | 500 | 0 |
Repayment of long-term debt | (609.3) | (8.9) |
Proceeds from revolving facility | 470.6 | 247.2 |
Repayment of revolving facility | (405.9) | (247.2) |
Repayment of financing obligation | (1.4) | (1.4) |
Debt issuance costs | (10.5) | 0 |
Dividends paid | (10.1) | (10) |
Shares repurchased | 0 | (7) |
Other financing activities | (1) | (0.4) |
Net cash used in financing activities | (67.6) | (27.7) |
Net increase (decrease) in cash and cash equivalents | 3.3 | (16) |
Cash and cash equivalents at beginning of period | 48.4 | 97.1 |
Cash and cash equivalents at end of period | 51.7 | 81.1 |
Supplemental Disclosure of Cash Flow Information | ||
Interest paid, net of capitalized interest of $0.3 million and zero, respectively | 25.6 | 27.3 |
Income taxes paid, net of refunds of $2.9 million and $0.3 million, respectively | $ (0.6) | $ 1.4 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest | $ 0.3 | $ 0 |
Tax refunds | $ 2.9 | $ 0.3 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Total SunCoke Energy, Inc. Equity | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings (Deficit) | Non-controlling Interests |
Beginning balance, shares at Dec. 31, 2019 | 98,047,389 | 13,783,182 | ||||||
Beginning balance at Dec. 31, 2019 | $ 518.4 | $ 491.6 | $ 1 | $ (177) | $ 712.1 | $ (14.4) | $ (30.1) | $ 26.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 13.7 | 11.4 | 11.4 | 2.3 | ||||
Currency translation adjustment | (1.5) | (1.5) | (1.5) | |||||
Share-based compensation expense | 2.3 | 2.3 | 2.3 | |||||
Share issuances, net of shares withheld for taxes, shares | 125,168 | |||||||
Share issuances, net of shares withheld for taxes | (0.3) | (0.3) | (0.3) | |||||
Share repurchases, shares | 0 | 1,621,300 | ||||||
Share repurchases | (7) | (7) | $ (7) | |||||
Dividends | (10.1) | (10.1) | (10.1) | |||||
Ending balance, shares at Jun. 30, 2020 | 98,172,557 | 15,404,482 | ||||||
Ending balance at Jun. 30, 2020 | 515.5 | 486.4 | $ 1 | $ (184) | 714.1 | (15.9) | (28.8) | 29.1 |
Beginning balance, shares at Mar. 31, 2020 | 98,165,658 | 15,404,482 | ||||||
Beginning balance at Mar. 31, 2020 | 512 | 484.2 | $ 1 | $ (184) | 712.9 | (15.5) | (30.2) | 27.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 7.8 | 6.5 | 6.5 | 1.3 | ||||
Currency translation adjustment | (0.4) | (0.4) | (0.4) | |||||
Share-based compensation expense | 1.2 | 1.2 | 1.2 | |||||
Share issuances, net of shares withheld for taxes, shares | 6,899 | |||||||
Dividends | (5.1) | (5.1) | (5.1) | |||||
Ending balance, shares at Jun. 30, 2020 | 98,172,557 | 15,404,482 | ||||||
Ending balance at Jun. 30, 2020 | 515.5 | 486.4 | $ 1 | $ (184) | 714.1 | (15.9) | (28.8) | 29.1 |
Beginning balance, shares at Dec. 31, 2020 | 98,177,941 | 15,404,482 | ||||||
Beginning balance at Dec. 31, 2020 | 500.9 | 469 | $ 1 | $ (184) | 715.7 | (17.1) | (46.6) | 31.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 10.7 | 7.7 | 7.7 | 3 | ||||
Reclassifications of prior service benefit and actuarial benefit amortization to earnings, net of tax | 0.2 | 0.2 | 0.2 | |||||
Currency translation adjustment | 0.2 | 0.2 | 0.2 | |||||
Share-based compensation expense | 2.3 | 2.3 | 2.3 | |||||
Share issuances, net of shares withheld for taxes, shares | 214,118 | |||||||
Share issuances, net of shares withheld for taxes | (0.9) | (0.9) | (0.9) | |||||
Dividends | (10.1) | (10.1) | (10.1) | |||||
Ending balance, shares at Jun. 30, 2021 | 98,392,059 | 15,404,482 | ||||||
Ending balance at Jun. 30, 2021 | 503.3 | 468.4 | $ 1 | $ (184) | 717.1 | (16.7) | (49) | 34.9 |
Beginning balance, shares at Mar. 31, 2021 | 98,382,357 | 15,404,482 | ||||||
Beginning balance at Mar. 31, 2021 | 513.1 | 479.5 | $ 1 | $ (184) | 715.3 | (17.7) | (35.1) | 33.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (7.5) | (8.8) | (8.8) | 1.3 | ||||
Reclassifications of prior service benefit and actuarial benefit amortization to earnings, net of tax | 0.1 | 0.1 | 0.1 | |||||
Currency translation adjustment | 0.9 | 0.9 | 0.9 | |||||
Share-based compensation expense | 1.8 | 1.8 | 1.8 | |||||
Share issuances, net of shares withheld for taxes, shares | 9,702 | |||||||
Dividends | (5.1) | (5.1) | (5.1) | |||||
Ending balance, shares at Jun. 30, 2021 | 98,392,059 | 15,404,482 | ||||||
Ending balance at Jun. 30, 2021 | $ 503.3 | $ 468.4 | $ 1 | $ (184) | $ 717.1 | $ (16.7) | $ (49) | $ 34.9 |
General
General | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | 1. General Description of Business SunCoke Energy, Inc. (“SunCoke Energy,” “SunCoke,” “Company,” “we,” “our” and “us”) is the largest independent producer of high-quality coke in the Americas, as measured by tons of coke produced each year, and has more than 60 years of coke production experience. Blast furnace coke is a principal raw material in the blast furnace steelmaking process and is produced by heating metallurgical coal in a refractory oven, which releases certain volatile components from the coal, thus transforming the coal into coke. Additionally, we own and operate a logistics business, which primarily provides handling and/or mixing services of coal and other aggregates to third-party customers as well as to our own cokemaking facilities. We have designed, developed, built, own and operate five cokemaking facilities in the United States (“U.S.”), which consist of our Haverhill, Middletown, Granite City, Jewell and Indiana Harbor cokemaking facilities. Our cokemaking facilities have collective nameplate capacity to produce approximately 4.2 million tons of blast furnace coke per year. Our blast furnace coke sales are largely made pursuant to long-term, take-or-pay agreements with Cleveland-Cliffs Steel Holding Corporation and Cleveland-Cliffs Steel LLC, both subsidiaries of Cleveland Cliffs Inc. ("Cliffs") and collectively referred to as "Cliffs Steel," and United States Steel Corporation (“U.S. Steel”). Cliffs Steel and U.S. Steel are two of the largest blast furnace steelmakers in North America. Additionally, we have designed and operate one cokemaking facility in Brazil under licensing and operating agreements on behalf of ArcelorMittal Brasil S.A. (“ArcelorMittal Brazil”), which has approximately 1.7 million tons of annual cokemaking capacity. In order to further diversify our business and customer base, we have entered the foundry coke market. Foundry coke is a high-quality grade of coke that is used at foundries to melt iron and various metals in cupola furnaces, which is further processed via casting or molding into products used in various industries such as construction, transportation and industrial products. We began producing and selling foundry coke on a commercial scale in 2021. We also began selling blast furnace coke into the export coke market in 2021, utilizing capacity in excess of that reserved for our long-term, take-or-pay agreements. Our cokemaking ovens utilize efficient, modern heat recovery technology designed to combust the coal’s volatile components liberated during the cokemaking process and use the resulting heat to create steam or electricity for sale. This differs from by-product cokemaking, which repurposes the coal’s liberated volatile components for other uses. We have constructed the only greenfield cokemaking facilities in the U.S. in approximately 30 years and are the only North American coke producer that utilizes heat recovery technology in the cokemaking process. We provide steam pursuant to steam supply and purchase agreements with our customers. Electricity is sold into the regional power market or pursuant to energy sales agreements. Our logistics business provides handling and/or mixing services to steel, coke (including some of our domestic cokemaking facilities), electric utility, coal producing and other manufacturing based customers. Our logistics business consists of Convent Marine Terminal (“CMT”), Kanawha River Terminal (“KRT”), SunCoke Lake Terminal (“Lake Terminal”) and Dismal River Terminal (“DRT”) and has collective capacity to mix and/or transload more than 40 million tons of coal and other aggregates annually and has total storage capacity of approximately 3 million tons. Incorporated in Delaware in 2010 and headquartered in Lisle, Illinois, we became a publicly-traded company in 2011 and our stock is listed on the New York Stock Exchange under the symbol “SXC.” Basis of Presentation The accompanying unaudited consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim reporting. Certain information and disclosures normally included in financial statements have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In management’s opinion, the financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. The results of operations for the period ended June 30, 2021 are not necessarily indicative of the operating results expected for the entire year. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories The components of inventories were as follows: June 30, 2021 December 31, 2020 (Dollars in millions) Coal $ 80.4 $ 60.6 Coke 16.6 21.1 Materials, supplies and other 46.8 44.9 Total inventories $ 143.8 $ 126.6 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 3. Intangible Assets Intangible assets, net, include Goodwill allocated to our Domestic Coke segment of $3.4 million at both June 30, 2021 and December 31, 2020, and other intangibles detailed in the table below. June 30, 2021 December 31, 2020 Weighted - Average Remaining Amortization Years Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (Dollars in millions) Customer relationships 3 $ 6.7 $ 4.8 $ 1.9 $ 6.7 $ 4.5 $ 2.2 Permits 21 31.7 2.4 29.3 31.7 1.7 30.0 Other 29 1.6 — 1.6 1.6 — 1.6 Total $ 40.0 $ 7.2 $ 32.8 $ 40.0 $ 6.2 $ 33.8 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 4. Income Taxes At the end of each interim period, we make our best estimate of the effective tax rate and the impact of discrete items, if any, and adjust the rate as necessary. The Company recorded an income tax benefit of $4.7 million during the three months ended June 30, 2021 and income tax expense of $2.6 million for the six months ended June 30, 2021, resulting in effective tax rates of 38.5 percent and 19.5 percent, respectively, as compared to the 21.0 percent federal statuto ry rate. The difference between the Company’s effective tax rates and the statutory rate was primarily impacted by changes in state tax laws, resulting in a state tax benefit of $1.3 million recorded during the second quarter of 2021. Additionally, the Company's effective tax rates are impacted by state taxes and disallowed expenses slightly offset by net income attributable to noncontrolling interest in our Indiana Harbor partnership for the three and six months ended June 30, 2021. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 5. Accrued Liabilities Accrued liabilities consisted of the following: June 30, 2021 December 31, 2020 (Dollars in millions) Accrued benefits $ 14.6 $ 18.3 Current portion of postretirement benefit obligation 2.8 2.8 Other taxes payable 11.8 9.8 Current portion of black lung liability 4.6 4.6 Accrued legal 5.8 6.4 Current portion of lease liabilities 2.1 2.2 Other 5.4 5.7 Total accrued liabilities $ 47.1 $ 49.8 |
Debt and Financing Obligation
Debt and Financing Obligation | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Financing Obligation | 6. Debt and Financing Obligation Total debt and financing obligation, including the current portion of the financing obligation, consisted of the following: June 30, 2021 December 31, 2020 (Dollars in millions) 4.875 percent senior notes, due 2029 ("2029 Senior Notes") $ 500.0 $ — 7.500 percent senior notes, due 2025 ("2025 Senior Notes") — 587.3 $350.0 million revolving credit facility, due 2026 ("Revolving Facility") 153.0 88.3 5.346 percent financing obligation, due 2024 13.5 14.9 Total borrowings 666.5 690.5 Original issue discount — (3.3) Debt issuance costs (13.2) (10.3) Total debt and financing obligation $ 653.3 $ 676.9 Less: current portion of financing obligation 3.1 3.0 Total long-term debt and financing obligation $ 650.2 $ 673.9 Issuance of 2029 Senior Notes On June 22, 2021, the Company issued $500.0 million aggregate principal amount of senior secured notes with an interest rate of 4.875 percent due in June 2029. The Company received proceeds of $500.0 million from the issuance and incurred debt issuance costs related to this transaction of $9.4 million, which are included in long-term debt and financing obligation on the Consolidated Balance Sheets as of June 30, 2021. The 2029 Senior Notes are the senior secured obligations of the Company. Interest on the 2029 Senior Notes is payable semi-annually in cash in arrears on June 30 and December 30 of each year, commencing on December 30, 2021. The Company may redeem some or all of the 2029 Senior Notes at its option, in whole or part, at the dates and amounts set forth in the applicable indenture. The applicable indenture for the 2029 Senior Notes contains covenants that, among other things, limit the Company's ability and, in certain circumstances, the ability of certain of the Company’s subsidiaries to (i) borrow money, (ii) create liens on assets, (iii) pay dividends or make other distributions on or repurchase or redeem the Company's capital stock, (iv) prepay, redeem or repurchase certain debt, (v) make loans and investments, (vi) sell assets, (vii) incur liens, (viii) enter into transactions with affiliates, (ix) enter into agreements restricting the ability of subsidiaries to pay dividends and (x) consolidate, merge or sell all or substantially all of the Company's assets. Purchase and Redemption of 2025 Senior Notes During the second quarter of 2021, pursuant to the applicable indenture with The Bank of New York Mellon Corporation as trustee ("Trustee"), the Trustee delivered redemption notices to holders of the 2025 Senior Notes. The principal amount of the 2025 Senior Notes redeemed was $587.3 million, which represented all of the outstanding principal of the 2025 Senior Notes at 100 percent. On June 22, 2021, the proceeds required for redemption, including the applicable premium and accrued interest totaling $612.1 million, were irrevocably deposited with the Trustee, at which time the 2025 Senior Notes were fully satisfied and discharged, and held by the Trustee until the date of redemption, July 8, 2021. As a result, during the six months ended June 30, 2021, the Company recorded a loss on extinguishment of debt on the Consolidated Statement of Operations of $31.1 million, which consisted of the premium paid of $22.0 million and the write-off of unamortized debt issuance costs of $6.1 million and the remaining original issue discount of $3.0 million. Revolving Facility On June 22, 2021, in conjunction with the issuance of the 2029 Senior Notes, the Company amended and extended the maturity of its Revolving Facility from August 2024 to June 2026 and reduced its capacity by $50.0 million to $350.0 million, resulting in additional debt issuance costs of $1.6 million, which are included in long-term debt and financing obligation on the Consolidated Balance Sheets as of June 30, 2021. Additionally, the Company recorded a loss on extinguishment of debt on the Consolidated Statement of Operations of $0.8 million, representing the write-off of unamortized debt issuance costs, during the six months ended June 30, 2021. As of June 30, 2021, the Revolving Facility had letters of credit outstanding o f $12.1 million and a $153.0 million outstanding balance, leaving $184.9 million available. Additionally, the Company has certain letters of credit totaling $11.5 million, which do not reduce the Revolving Facility's available balance. Covenants Under the terms of the Revolving Facility, the Company is subject to a maximum consolidated net leverage ratio of 4.50:1.00 and a minimum consolidated interest coverage ratio of 2.50:1.00. The Company's debt agreements contain other covenants and events of default that are customary for similar agreements and may limit our ability to take various actions including our ability to pay a dividend or repurchase our stock. If we fail to perform our obligations under these and other covenants, the lenders' credit commitment could be terminated and any outstanding borrowings, together with accrued interest, under the Revolving Facility could be declared immediately due and payable. The Company has a cross default provision that applies to our indebtedness having a principal amount in excess of $35.0 million. As of June 30, 2021, the Company was in compliance with all applicable debt covenants. We do not anticipate a violation of these covenants nor do we anticipate that any of these covenants will restrict our operations or our ability to obtain additional financing. Maturities As of June 30, 2021, the combined aggregate amount of maturities for long-term borrowings for each of the next five years is as follows: (Dollars in millions) 2021 $ 1.6 2022 3.2 2023 3.3 2024 5.4 2025 — 2026-Thereafter 653.0 Total $ 666.5 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 7. Commitments and Contingent Liabilities Legal Matters Between 2005 and 2012, the U.S. Environmental Protection Agency ("EPA") and the Ohio Environmental Protection Agency (“OEPA”) issued Notices of Violations (“NOVs”), alleging violations of air emission operating permits for our Haverhill and Granite City cokemaking facilities. We worked in a cooperative manner with the EPA, the OEPA and the Illinois Environmental Protection Agency to address the allegations and, in November 2014, entered into a consent decree with these parties in federal district court in the Southern District of Illinois. The consent decree included a civil penalty paid in December 2014, and a commitment to undertake capital projects to improve reliability and enhance environmental performance. The Haverhill project was completed in 2016, but completion of the Granite City project was delayed to June 2019, with SunCoke agreeing to pay an immaterial amount associated with the delay. Between 2010 and 2016, SunCoke Energy also received certain NOVs, Findings of Violations (“FOVs”), and information requests from the EPA, alleging violations of air operating permit conditions related to our Indiana Harbor cokemaking facility. To reach a settlement of these NOVs and FOVs, we met regularly with the EPA, the Indiana Department of Environmental Management and Cokenergy, LLC., an independent power producer that processes hot flue gas from our Indiana Harbor facility to reduce the sulfur and particulate content and produce steam and electricity. A consent decree among the parties was entered by the federal district court in the Northern District of Indiana during the fourth quarter of 2018. The settlement included a civil penalty paid in the fourth quarter of 2018, and implementation of certain capital projects, completed during the fourth quarter of 2019, to improve reliability and environmental performance of the coke ovens at the facility. The Company is a party to certain other pending and threatened claims, including matters related to commercial disputes, employment claims, personal injury claims, common law tort claims and environmental claims. Although the ultimate outcome of these claims cannot be ascertained at this time, it is reasonably possible that some portion of these claims could be resolved unfavorably to the Company. Management of the Company believes that any liability which may arise from these claims would not have a material adverse impact on our consolidated financial statements. SunCoke's threshold for disclosing material environmental legal proceedings involving a government authority where potential monetary sanctions are involved is $1.0 million. Black Lung Benefit Liabilities The Company has obligations related to coal workers’ pneumoconiosis, or black lung, benefits to certain of its former coal miners and their dependents. Such benefits are provided for under Title IV of the Federal Coal Mine and Safety Act of 1969 and subsequent amendments, as well as for black lung benefits provided in the states of Virginia, Kentucky and West Virginia pursuant to workers’ compensation legislation. The Patient Protection and Affordable Care Act (“PPACA”), which was implemented in 2010, amended previous legislation related to coal workers’ black lung obligations. PPACA provides for the automatic extension of awarded lifetime benefits to surviving spouses and changes the legal criteria used to assess and award claims. On February 1, 2013, SunCoke obtained commercial insurance for black lung claims in excess of a deductible for employees with a last date of employment after that date. Also during 2013, we were reauthorized to continue to self-insure black lung liabilities incurred prior to February 1, 2013 by the U.S. Department of Labor's Division of Coal Mine Workers' Compensation ("DCMWC") in exchange for $8.4 million of collateral. We adjust our liability each year based upon actuarial calculations of our expected future payments for these benefits. Our independent actuarial consultants calculate the present value of the estimated black lung liability annually based on actuarial models utilizing our population of former coal miners, historical payout patterns of both the Company and the industry, actuarial mortality rates, disability incidence, medical costs, death benefits, dependents, discount rates and the current federally mandated payout rates. The estimated liability may be impacted by future changes in the statutory mechanisms, modifications by court decisions and changes in filing patterns driven by perceptions of success by claimants and their advisors, the impact of which cannot be estimated. The estimated liability was $66.4 million and $64.6 million at June 30, 2021 and December 31, 2020, respectively, of which the current portion of $4.6 million was included in accrued liabilities on the Consolidated Balance Sheets in both periods. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | 8. Share-Based Compensation Equity Classified Awards During the six months ended June 30, 2021, the Company granted share-based compensation to eligible participants under the SunCoke Energy, Inc. Long-Term Performance Enhancement Plan (“SunCoke LTPEP”). All awards vest immediately upon a qualifying termination of employment, as defined by the SunCoke LTPEP, following a change in control. Restricted Stock Units Settled in Shares The Company issued 463,476 stock-settled restricted stock units (“RSUs”) to certain employees to be settled in shares of the Company’s common stock during the six months ended June 30, 2021. The weighted average grant date fair value was $6.77 per unit and was based on the closing price of our common stock on the day of the grant. The RSUs vest in three annual installments beginning one year from the date of grant. Performance Share Units Performance share units (“PSUs”) were granted to certain employees to be settled in shares of the Company's common stock during the six months ended June 30, 2021, for which the service period will end on December 31, 2023 and will vest during the first quarter of 2024. The service period for certain retiree eligible participants is accelerated. The Company granted the following PSUs: Shares Grant Date Fair Value per Unit PSUs (1)(2) 177,176 $ 7.60 (1) The PSU awards are split 50/50 between the Company's three year cumulative Adjusted EBITDA (as defined in Note 12) performance measure and the Company's three-year average pre-tax return on capital performance measure for its coke and logistics businesses and unallocated corporate expenses. (2) The number of PSUs ultimately awarded will be determined by the above performance measures versus targets and the Company's three-year total shareholder return (“TSR”) as compared to the TSR of the companies making up the Nasdaq Iron & Steel Index (“TSR Modifier”). The TSR Modifier can impact the payout between 75 percent and 125 percent of the Company's final performance measure results. The award may vest between zero and 250 percent of the original units granted. The fair value of the PSUs granted during the six months ended June 30, 2021 is based on the closing price of our common stock on the date of grant as well as a Monte Carlo simulation for the valuation of the TSR Modifier. Stock Options The Company did not grant any stock options during the six months ended June 30, 2021. Liability Classified Awards Restricted Stock Units Settled in Cash During the six months ended June 30, 2021, the Company issued 230,056 restricted stock units to certain employees to be settled in cash (“Cash RSUs”), which vest in three annual installments beginning one year from the grant date and are part of the SunCoke LTPEP. The weighted average grant date fair value of the Cash RSUs granted during the six months ended June 30, 2021 was $6.68 per unit and was based on the closing price of our common stock on the day of grant. The Cash RSU liability is adjusted based on the closing price of our common stock at the end of each quarterly period and was $1.3 million at June 30, 2021 and $1.1 million at December 31, 2020. Cash Incentive Awards The Company also granted long-term compensation to eligible participants under the SunCoke Energy, Inc. Long-Term Cash Incentive Plan (“SunCoke LTCIP”), which became effective January 1, 2016. The SunCoke LTCIP is designed to provide for performance-based, cash-settled awards. All awards vest immediately upon a qualifying termination of employment, as defined by the SunCoke LTCIP, following a change in control. The Company issued awards with an aggregate grant date fair value of $2.1 million during the six months ended June 30, 2021, for which the service period will end on December 31, 2023 and will vest during the first quarter of 2024. The service period for certain retiree eligible participants is accelerated. The awards are split 50/50 between the Company's three-year cumulative Adjusted EBITDA performance and the Company's three-year average pre-tax return on capital for its coke and logistics businesses and unallocated corporate expenses. The 2021 awards are not subject to the Company's three-year TSR Modifier performance. The cash incentive award liability at June 30, 2021 was adjusted based on the Company's three-year cumulative Adjusted EBITDA performance and adjusted average pre-tax return on capital for the Company's coke and logistics businesses and unallocated corporate expenses. The cash incentive award liability was $2.1 million at June 30, 2021 and $1.3 million at December 31, 2020. Summary of Share-Based Compensation Expense Below is a summary of the compensation expense, unrecognized compensation costs, and the period for which the unrecognized compensation cost is expected to be recognized over: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 June 30, 2021 Compensation Expense (1) Unrecognized Compensation Cost Recognition Period (Dollars in millions) (Years) Equity Awards: Stock Options $ — $ 0.1 $ — $ 0.3 $ 0.1 0.7 RSUs 0.7 0.5 1.0 0.9 $ 1.6 0.9 PSUs 1.1 0.6 1.2 1.0 $ 3.1 1.5 Total equity awards $ 1.8 $ 1.2 $ 2.2 $ 2.2 Liability Awards: Cash RSUs $ 0.3 $ 0.1 $ 1.1 $ 0.1 $ 1.8 1.8 Cash incentive award 1.1 0.1 1.3 0.3 $ 4.3 1.8 Total liability awards $ 1.4 $ 0.2 $ 2.4 $ 0.4 (1) Compensation expense recognized by the Company is included in selling, general and administrative expenses on the Consolidated Statements of Operations. The Company issued $0.1 million of share-based compensation to the Company's Board of Directors during both the six months ended June 30, 2021 and 2020, respectively. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 9. Earnings per Share Basic earnings per share (“EPS”) has been computed by dividing net income attributable to SunCoke Energy, Inc. by the weighted average number of shares outstanding during the period. Except where the result would be anti-dilutive, diluted earnings per share has been computed to give effect to share-based compensation awards using the treasury stock method. The following table sets forth the reconciliation of the weighted-average number of common shares used to compute basic EPS to those used to compute diluted EPS: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Shares in millions) Weighted-average number of common shares outstanding-basic 83.0 82.8 82.9 83.2 Add: Effect of dilutive share-based compensation awards — 0.1 0.6 0.2 Weighted-average number of shares-diluted 83.0 82.9 83.5 83.4 The following table shows equity awards that are excluded from the computation of diluted earnings per share as the shares would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Shares in millions) Stock options 3.1 3.1 2.9 3.1 Restricted stock units 0.6 0.3 0.1 0.3 Performance stock units 0.7 0.2 — 0.2 Total 4.4 3.6 3.0 3.6 |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 10. Fair Value Measurement The Company measures certain financial and non-financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: • Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. • Level 2 - inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. • Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Certain assets and liabilities are measured at fair value on a recurring basis. The Company's cash and cash equivalents were measured at fair value at June 30, 2021 and December 31, 2020 based on quoted prices in active markets for identical assets. These inputs are classified as Level 1 within the valuation hierarchy. Certain Financial Assets and Liabilities not Measured at Fair Value At June 30, 2021 and December 31, 2020, the fair value of the Company’s total debt was estimated to be $666.3 million and $683.9 million, respectively, compared to a carrying amount of $666.5 million and $690.5 million, respectively. The fair value was estimated by management based upon estimates of debt pricing provided by financial institutions, which are considered Level 2 inputs. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 11. Revenue from Contracts with Customers Cokemaking Our blast furnace coke sales are largely made pursuant to long-term, take-or-pay coke sales agreements with Cliffs Steel and U.S. Steel, who are two of the largest blast furnace steelmakers in North America. The take-or-pay provisions in our agreements require our customers to purchase coke volumes as specified in the agreements or pay the contract price for any tonnage they do not purchase. The take-or-pay provisions of our agreements also require us to deliver minimum annual tonnage. Our coke sales agreements have approximately 15.5 million tons of unsatisfied or partially unsatisfied performance obligations, which are expected to be delivered over a weighted average remaining contract term of approximately seven years . Foundry coke sales are generally made under annual agreements with our customers for an agreed upon price and do not contain take-or-pay volume commitments. Export coke sales are generally made on a spot basis at the current market price. Revenues on all coke sales are recognized when performance obligations to our customers are satisfied in an amount that reflects the consideration that we expect to receive in exchange for the coke. Logistics In our logistics business, handling and/or mixing services are provided to steel, coke (including some of our domestic cokemaking facilities), electric utility, coal producing and other manufacturing based customers. Materials are transported in numerous ways, including rail, truck, barge or ship. We do not take possession of materials handled, but rather act as intermediaries between our customers and end users, deriving our revenues from services provided on a per ton basis. The handling and mixing services consist primarily of two performance obligations, unloading and loading of materials. Revenues are recognized when the customer receives the benefits of the services provided, in an amount that reflects the consideration that we will receive in exchange for those services. Estimated take-or-pay revenue of approximately $35.6 million from all of our multi-year logistics contracts is expected to be recognized over t he next three years fo r unsatisfied or partially unsatisfied performance obligations as of June 30, 2021. Disaggregated Sales and Other Operating Revenue The following table provides disaggregated sales and other operating revenue by product or service, excluding intersegment revenues: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Sales and other operating revenue: Cokemaking $ 324.2 $ 310.0 $ 644.3 $ 661.5 Energy 13.8 12.0 28.6 25.1 Logistics 16.5 7.1 32.4 16.0 Operating and licensing fees 9.0 7.2 17.5 15.7 Other 0.8 1.7 1.4 2.4 Sales and other operating revenue $ 364.3 $ 338.0 $ 724.2 $ 720.7 The following tables provide disaggregated sales and other operating revenue by customer: Three Months Ended June 30, Six Months Ended June 30, 2021 2021 (Dollars in millions) Sales and other operating revenue: Cliffs Steel (1) $ 253.0 $ 508.7 U.S. Steel 52.9 103.9 Other 58.4 111.6 Sales and other operating revenue $ 364.3 $ 724.2 Three Months Ended June 30, Six Months Ended June 30, 2020 2020 (Dollars in millions) Sales and other operating revenue: AM USA (1) $ 180.3 $ 376.1 Cliffs Steel / AK Steel (1) 89.8 197.7 U.S. Steel 51.0 109.9 Other 16.9 37.0 Sales and other operating revenue $ 338.0 $ 720.7 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | 12. Business Segment Information The Company reports its business through three segments: Domestic Coke, Brazil Coke and Logistics. The Domestic Coke segment includes the Jewell, Indiana Harbor, Haverhill, Granite City and Middletown cokemaking facilities. Each of these facilities produces coke, and all facilities except Jewell recover waste heat, which is converted to steam or electricity. The Brazil Coke segment includes the licensing and operating fees payable to us under long-term contracts with ArcelorMittal Brazil, under which we operate a cokemaking facility located in Vitória, Brazil through at least 2023. Logistics operations are comprised of CMT, KRT, Lake Terminal, which provides services to our Indiana Harbor cokemaking facility, and DRT, which provides services to our Jewell cokemaking facility. Handling and mixing results are presented in the Logistics segment. Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other. Corporate and Other also includes activity from our legacy coal mining business. Segment assets are those assets utilized within a specific segment and exclude taxes. The following table includes Adjusted EBITDA, which is the measure of segment profit or loss 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, 2021 2020 2021 2020 (Dollars in millions) Sales and other operating revenue: Domestic Coke $ 338.6 $ 323.5 $ 673.9 $ 688.7 Brazil Coke 9.0 7.2 17.5 15.7 Logistics 16.7 7.3 32.8 16.3 Logistics intersegment sales 7.4 5.2 14.0 11.8 Elimination of intersegment sales (7.4) (5.2) (14.0) (11.8) Total sales and other operating revenues $ 364.3 $ 338.0 $ 724.2 $ 720.7 Adjusted EBITDA: Domestic Coke $ 61.4 $ 61.6 $ 124.9 $ 125.0 Brazil Coke 4.0 3.2 8.5 7.3 Logistics 11.4 3.0 22.3 6.3 Corporate and Other (1) (8.8) (8.8) (17.1) (17.5) Total Adjusted EBITDA $ 68.0 $ 59.0 $ 138.6 $ 121.1 Depreciation and amortization expense: Domestic Coke $ 30.4 $ 30.4 $ 59.1 $ 60.9 Brazil Coke 0.1 0.1 0.2 0.2 Logistics 3.3 3.2 6.6 6.4 Corporate and Other 0.3 0.4 0.6 0.7 Total depreciation and amortization expense $ 34.1 $ 34.1 $ 66.5 $ 68.2 Capital expenditures: Domestic Coke $ 11.0 $ 11.5 $ 27.4 $ 32.2 Brazil Coke — — 0.1 0.1 Logistics 2.6 2.6 6.2 4.6 Total capital expenditures $ 13.6 $ 14.1 $ 33.7 $ 36.9 (1) Corporate and Other includes activity from our legacy coal mining business, which contributed Adjusted EBITDA losses of $1.5 million and $3.4 million during the three and six months ended June 30, 2021, respectively, as well as $2.4 million and $4.5 million during the three and six months ended June 30, 2020, respectively. Additionally, Corporate and Other includes foundry related research and development costs of $0.6 million and $1.4 million during the three and six months ended June 30, 2020, respectively. The following table sets forth the Company's segment assets: June 30, 2021 December 31, 2020 (Dollars in millions) Segment assets Domestic Coke $ 1,352.8 $ 1,358.9 Brazil Coke 14.5 17.7 Logistics 199.6 199.5 Corporate and Other 28.3 31.8 Segment assets, excluding income tax receivable 1,595.2 1,607.9 Tax assets 2.8 5.5 Total assets $ 1,598.0 $ 1,613.4 The Company evaluates the performance of its segments based on segment Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for any impairments, restructuring costs and gains or losses on extinguishment of debt. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or operating income under GAAP and may not be comparable to other similarly titled measures in other businesses. Management believes Adjusted EBITDA is an important measure in assessing operating performance. Adjusted EBITDA provides useful information to investors because it highlights trends in our business that may not otherwise be apparent when relying solely on GAAP measures and because it eliminates items that have less bearing on our operating performance. EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP, and they should not be considered a substitute for net income or any other measure of financial performance presented in accordance with GAAP. Additionally, other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. Below is a reconciliation of Adjusted EBITDA to net income, which is its most directly comparable financial measure calculated and presented in accordance with GAAP: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Net (loss) income attributable to SunCoke Energy, Inc. $ (8.8) $ 6.5 $ 7.7 $ 11.4 Add: Net income attributable to noncontrolling interests 1.3 1.3 3.0 2.3 Net (loss) income $ (7.5) $ 7.8 $ 10.7 $ 13.7 Add: Depreciation and amortization expense 34.1 34.1 66.5 68.2 Interest expense, net 14.2 14.9 26.9 29.5 Loss (gain) on extinguishment of debt 31.9 — 31.9 (2.9) Income tax (benefit) expense (4.7) 2.2 2.6 12.6 Adjusted EBITDA $ 68.0 $ 59.0 $ 138.6 $ 121.1 Subtract: Adjusted EBITDA attributable to noncontrolling interests (1) 2.3 2.3 4.9 4.3 Adjusted EBITDA attributable to SunCoke Energy, Inc. $ 65.7 $ 56.7 $ 133.7 $ 116.8 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories were as follows: June 30, 2021 December 31, 2020 (Dollars in millions) Coal $ 80.4 $ 60.6 Coke 16.6 21.1 Materials, supplies and other 46.8 44.9 Total inventories $ 143.8 $ 126.6 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net, include Goodwill allocated to our Domestic Coke segment of $3.4 million at both June 30, 2021 and December 31, 2020, and other intangibles detailed in the table below. June 30, 2021 December 31, 2020 Weighted - Average Remaining Amortization Years Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (Dollars in millions) Customer relationships 3 $ 6.7 $ 4.8 $ 1.9 $ 6.7 $ 4.5 $ 2.2 Permits 21 31.7 2.4 29.3 31.7 1.7 30.0 Other 29 1.6 — 1.6 1.6 — 1.6 Total $ 40.0 $ 7.2 $ 32.8 $ 40.0 $ 6.2 $ 33.8 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consisted of the following: June 30, 2021 December 31, 2020 (Dollars in millions) Accrued benefits $ 14.6 $ 18.3 Current portion of postretirement benefit obligation 2.8 2.8 Other taxes payable 11.8 9.8 Current portion of black lung liability 4.6 4.6 Accrued legal 5.8 6.4 Current portion of lease liabilities 2.1 2.2 Other 5.4 5.7 Total accrued liabilities $ 47.1 $ 49.8 |
Debt and Financing Obligation (
Debt and Financing Obligation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Total Debt | Total debt and financing obligation, including the current portion of the financing obligation, consisted of the following: June 30, 2021 December 31, 2020 (Dollars in millions) 4.875 percent senior notes, due 2029 ("2029 Senior Notes") $ 500.0 $ — 7.500 percent senior notes, due 2025 ("2025 Senior Notes") — 587.3 $350.0 million revolving credit facility, due 2026 ("Revolving Facility") 153.0 88.3 5.346 percent financing obligation, due 2024 13.5 14.9 Total borrowings 666.5 690.5 Original issue discount — (3.3) Debt issuance costs (13.2) (10.3) Total debt and financing obligation $ 653.3 $ 676.9 Less: current portion of financing obligation 3.1 3.0 Total long-term debt and financing obligation $ 650.2 $ 673.9 |
Schedule of Maturities of Long-term Debt | As of June 30, 2021, the combined aggregate amount of maturities for long-term borrowings for each of the next five years is as follows: (Dollars in millions) 2021 $ 1.6 2022 3.2 2023 3.3 2024 5.4 2025 — 2026-Thereafter 653.0 Total $ 666.5 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, PSUs, Activity | Performance share units (“PSUs”) were granted to certain employees to be settled in shares of the Company's common stock during the six months ended June 30, 2021, for which the service period will end on December 31, 2023 and will vest during the first quarter of 2024. The service period for certain retiree eligible participants is accelerated. The Company granted the following PSUs: Shares Grant Date Fair Value per Unit PSUs (1)(2) 177,176 $ 7.60 (1) The PSU awards are split 50/50 between the Company's three year cumulative Adjusted EBITDA (as defined in Note 12) performance measure and the Company's three-year average pre-tax return on capital performance measure for its coke and logistics businesses and unallocated corporate expenses. |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Below is a summary of the compensation expense, unrecognized compensation costs, and the period for which the unrecognized compensation cost is expected to be recognized over: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 June 30, 2021 Compensation Expense (1) Unrecognized Compensation Cost Recognition Period (Dollars in millions) (Years) Equity Awards: Stock Options $ — $ 0.1 $ — $ 0.3 $ 0.1 0.7 RSUs 0.7 0.5 1.0 0.9 $ 1.6 0.9 PSUs 1.1 0.6 1.2 1.0 $ 3.1 1.5 Total equity awards $ 1.8 $ 1.2 $ 2.2 $ 2.2 Liability Awards: Cash RSUs $ 0.3 $ 0.1 $ 1.1 $ 0.1 $ 1.8 1.8 Cash incentive award 1.1 0.1 1.3 0.3 $ 4.3 1.8 Total liability awards $ 1.4 $ 0.2 $ 2.4 $ 0.4 (1) Compensation expense recognized by the Company is included in selling, general and administrative expenses on the Consolidated Statements of Operations. |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | Below is a summary of the compensation expense, unrecognized compensation costs, and the period for which the unrecognized compensation cost is expected to be recognized over: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 June 30, 2021 Compensation Expense (1) Unrecognized Compensation Cost Recognition Period (Dollars in millions) (Years) Equity Awards: Stock Options $ — $ 0.1 $ — $ 0.3 $ 0.1 0.7 RSUs 0.7 0.5 1.0 0.9 $ 1.6 0.9 PSUs 1.1 0.6 1.2 1.0 $ 3.1 1.5 Total equity awards $ 1.8 $ 1.2 $ 2.2 $ 2.2 Liability Awards: Cash RSUs $ 0.3 $ 0.1 $ 1.1 $ 0.1 $ 1.8 1.8 Cash incentive award 1.1 0.1 1.3 0.3 $ 4.3 1.8 Total liability awards $ 1.4 $ 0.2 $ 2.4 $ 0.4 (1) Compensation expense recognized by the Company is included in selling, general and administrative expenses on the Consolidated Statements of Operations. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted-Average Number of Common Shares Used to Compute Basic EPS to Those Used to Compute Diluted EPS | The following table sets forth the reconciliation of the weighted-average number of common shares used to compute basic EPS to those used to compute diluted EPS: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Shares in millions) Weighted-average number of common shares outstanding-basic 83.0 82.8 82.9 83.2 Add: Effect of dilutive share-based compensation awards — 0.1 0.6 0.2 Weighted-average number of shares-diluted 83.0 82.9 83.5 83.4 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table shows equity awards that are excluded from the computation of diluted earnings per share as the shares would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Shares in millions) Stock options 3.1 3.1 2.9 3.1 Restricted stock units 0.6 0.3 0.1 0.3 Performance stock units 0.7 0.2 — 0.2 Total 4.4 3.6 3.0 3.6 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides disaggregated sales and other operating revenue by product or service, excluding intersegment revenues: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Sales and other operating revenue: Cokemaking $ 324.2 $ 310.0 $ 644.3 $ 661.5 Energy 13.8 12.0 28.6 25.1 Logistics 16.5 7.1 32.4 16.0 Operating and licensing fees 9.0 7.2 17.5 15.7 Other 0.8 1.7 1.4 2.4 Sales and other operating revenue $ 364.3 $ 338.0 $ 724.2 $ 720.7 The following tables provide disaggregated sales and other operating revenue by customer: Three Months Ended June 30, Six Months Ended June 30, 2021 2021 (Dollars in millions) Sales and other operating revenue: Cliffs Steel (1) $ 253.0 $ 508.7 U.S. Steel 52.9 103.9 Other 58.4 111.6 Sales and other operating revenue $ 364.3 $ 724.2 Three Months Ended June 30, Six Months Ended June 30, 2020 2020 (Dollars in millions) Sales and other operating revenue: AM USA (1) $ 180.3 $ 376.1 Cliffs Steel / AK Steel (1) 89.8 197.7 U.S. Steel 51.0 109.9 Other 16.9 37.0 Sales and other operating revenue $ 338.0 $ 720.7 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | The following table includes Adjusted EBITDA, which is the measure of segment profit or loss 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, 2021 2020 2021 2020 (Dollars in millions) Sales and other operating revenue: Domestic Coke $ 338.6 $ 323.5 $ 673.9 $ 688.7 Brazil Coke 9.0 7.2 17.5 15.7 Logistics 16.7 7.3 32.8 16.3 Logistics intersegment sales 7.4 5.2 14.0 11.8 Elimination of intersegment sales (7.4) (5.2) (14.0) (11.8) Total sales and other operating revenues $ 364.3 $ 338.0 $ 724.2 $ 720.7 Adjusted EBITDA: Domestic Coke $ 61.4 $ 61.6 $ 124.9 $ 125.0 Brazil Coke 4.0 3.2 8.5 7.3 Logistics 11.4 3.0 22.3 6.3 Corporate and Other (1) (8.8) (8.8) (17.1) (17.5) Total Adjusted EBITDA $ 68.0 $ 59.0 $ 138.6 $ 121.1 Depreciation and amortization expense: Domestic Coke $ 30.4 $ 30.4 $ 59.1 $ 60.9 Brazil Coke 0.1 0.1 0.2 0.2 Logistics 3.3 3.2 6.6 6.4 Corporate and Other 0.3 0.4 0.6 0.7 Total depreciation and amortization expense $ 34.1 $ 34.1 $ 66.5 $ 68.2 Capital expenditures: Domestic Coke $ 11.0 $ 11.5 $ 27.4 $ 32.2 Brazil Coke — — 0.1 0.1 Logistics 2.6 2.6 6.2 4.6 Total capital expenditures $ 13.6 $ 14.1 $ 33.7 $ 36.9 (1) Corporate and Other includes activity from our legacy coal mining business, which contributed Adjusted EBITDA losses of $1.5 million and $3.4 million during the three and six months ended June 30, 2021, respectively, as well as $2.4 million and $4.5 million during the three and six months ended June 30, 2020, respectively. Additionally, Corporate and Other includes foundry related research and development costs of $0.6 million and $1.4 million during the three and six months ended June 30, 2020, respectively. The following table sets forth the Company's segment assets: June 30, 2021 December 31, 2020 (Dollars in millions) Segment assets Domestic Coke $ 1,352.8 $ 1,358.9 Brazil Coke 14.5 17.7 Logistics 199.6 199.5 Corporate and Other 28.3 31.8 Segment assets, excluding income tax receivable 1,595.2 1,607.9 Tax assets 2.8 5.5 Total assets $ 1,598.0 $ 1,613.4 |
Reconciliation of Adjusted EBITDA (Unaudited) to Net Income | Below is a reconciliation of Adjusted EBITDA to net income, which is its most directly comparable financial measure calculated and presented in accordance with GAAP: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Net (loss) income attributable to SunCoke Energy, Inc. $ (8.8) $ 6.5 $ 7.7 $ 11.4 Add: Net income attributable to noncontrolling interests 1.3 1.3 3.0 2.3 Net (loss) income $ (7.5) $ 7.8 $ 10.7 $ 13.7 Add: Depreciation and amortization expense 34.1 34.1 66.5 68.2 Interest expense, net 14.2 14.9 26.9 29.5 Loss (gain) on extinguishment of debt 31.9 — 31.9 (2.9) Income tax (benefit) expense (4.7) 2.2 2.6 12.6 Adjusted EBITDA $ 68.0 $ 59.0 $ 138.6 $ 121.1 Subtract: Adjusted EBITDA attributable to noncontrolling interests (1) 2.3 2.3 4.9 4.3 Adjusted EBITDA attributable to SunCoke Energy, Inc. $ 65.7 $ 56.7 $ 133.7 $ 116.8 |
General (Details)
General (Details) T in Millions | 6 Months Ended |
Jun. 30, 2021Cokemaking_facilityT | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Coke production experience | 60 years |
Number of facilities (in cokemaking facilities) | Cokemaking_facility | 5 |
Period of existence | 30 years |
United States | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Coke making capacity (in tons) | 4.2 |
Brazil | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Number of facilities (in cokemaking facilities) | Cokemaking_facility | 1 |
Coke making capacity (in tons) | 1.7 |
Convent, Louisiana, East Chicago, Indiana, West Virginia | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Coal handling capacity (in tons) | 40 |
Coal storage capacity (in tons) | 3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Coal | $ 80.4 | $ 60.6 |
Coke | 16.6 | 21.1 |
Materials, supplies and other | 46.8 | 44.9 |
Total inventories | $ 143.8 | $ 126.6 |
Intangible Assets - Goodwill Na
Intangible Assets - Goodwill Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Domestic Coke | Operating Segments | ||
Goodwill [Line Items] | ||
Goodwill | $ 3.4 | $ 3.4 |
Intangible Assets - Gross and N
Intangible Assets - Gross and Net Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 40 | $ 40 |
Accumulated Amortization | 7.2 | 6.2 |
Net | $ 32.8 | 33.8 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted - Average Remaining Amortization Years | 3 years | |
Gross Carrying Amount | $ 6.7 | 6.7 |
Accumulated Amortization | 4.8 | 4.5 |
Net | $ 1.9 | 2.2 |
Permits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted - Average Remaining Amortization Years | 21 years | |
Gross Carrying Amount | $ 31.7 | 31.7 |
Accumulated Amortization | 2.4 | 1.7 |
Net | $ 29.3 | 30 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted - Average Remaining Amortization Years | 29 years | |
Gross Carrying Amount | $ 1.6 | 1.6 |
Accumulated Amortization | 0 | 0 |
Net | $ 1.6 | $ 1.6 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Total amortization expense of intangible assets | $ 0.5 | $ 0.6 | $ 1 | $ 1.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ (4.7) | $ 2.2 | $ 2.6 | $ 12.6 |
Effective income tax rate (as a percent) | 38.50% | 22.00% | (19.50%) | 47.90% |
State tax benefit | $ 1.3 | |||
Deferred income tax expense from merger | $ 6.5 | |||
Tax benefit from COVID-19 impact | $ 1.5 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued benefits | $ 14.6 | $ 18.3 |
Current portion of postretirement benefit obligation | 2.8 | 2.8 |
Other taxes payable | 11.8 | 9.8 |
Current portion of black lung liability | 4.6 | 4.6 |
Accrued legal | 5.8 | 6.4 |
Current operating lease liabilities | 2.1 | 2.2 |
Other | 5.4 | 5.7 |
Total accrued liabilities | $ 47.1 | $ 49.8 |
Debt and Financing Obligation -
Debt and Financing Obligation - Schedule of Debt (Details) - USD ($) | Jun. 30, 2021 | Jun. 22, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Total borrowings | $ 666,500,000 | $ 690,500,000 | |
Original issue discount | 0 | (3,300,000) | |
Debt issuance costs | (13,200,000) | (10,300,000) | |
Total debt and financing obligation | 653,300,000 | 676,900,000 | |
Less: current portion of financing obligation | 3,100,000 | 3,000,000 | |
Long-term debt and financing obligation | 650,200,000 | 673,900,000 | |
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 350,000,000 | ||
4.875 percent senior notes, due 2029 ("2029 Senior Notes") | Senior notes | |||
Debt Instrument [Line Items] | |||
Total borrowings | $ 500,000,000 | 0 | |
Interest rate on senior notes (as a percent) | 4.875% | 487.50% | |
7.500 percent senior notes, due 2025 ("2025 Senior Notes") | Senior notes | |||
Debt Instrument [Line Items] | |||
Total borrowings | $ 0 | 587,300,000 | |
Interest rate on senior notes (as a percent) | 7.50% | ||
$350.0 million revolving credit facility, due 2026 ("Revolving Facility") | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total borrowings | $ 153,000,000 | 88,300,000 | |
Maximum borrowing capacity | 350,000,000 | ||
5.346 percent financing obligation, due 2024 | Financing Obligation | |||
Debt Instrument [Line Items] | |||
Total borrowings | $ 13,500,000 | $ 14,900,000 | |
Interest rate on senior notes (as a percent) | 5.346% |
Debt and Financing Obligation_2
Debt and Financing Obligation - Issuance of 2029 Senior Notes (Details) - Senior notes - Senior Notes, Due 2029 - USD ($) $ in Millions | Jun. 22, 2021 | Jun. 30, 2021 |
Debt Instrument [Line Items] | ||
Face amount of debt | $ 500 | |
Interest rate on senior notes (as a percent) | 487.50% | 4.875% |
Proceeds from issuance of senior debt | $ 500 | |
Debt issuance costs, net | $ 9.4 |
Debt and Financing Obligation_3
Debt and Financing Obligation - Purchase and Redemption of 2025 Senior Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Gain (loss) on extinguishment of debt | $ (31.9) | $ 0 | $ (31.9) | $ 2.9 |
Senior notes | Senior Notes, Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | 587.3 | 587.3 | ||
Redemption premium | 612.1 | |||
Gain (loss) on extinguishment of debt | 31.1 | |||
Unamortized premium | 22 | 22 | ||
Debt issuance costs, gross | 6.1 | |||
Debt issuance discount | $ 3 | $ 3 |
Debt and Financing Obligation_4
Debt and Financing Obligation - Revolving Facility (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Gain (loss) on extinguishment of debt | $ (31.9) | $ 0 | $ (31.9) | $ 2.9 | |
Outstanding balance | 666.5 | 666.5 | $ 690.5 | ||
Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Reduction of debt | 50 | 50 | |||
Maximum borrowing capacity | 350 | 350 | |||
Line of credit debt issuance costs, gross | 1.6 | 1.6 | |||
Gain (loss) on extinguishment of debt | (0.8) | ||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding under revolving facility | 12.1 | 12.1 | |||
Outstanding balance | 153 | 153 | |||
Remaining borrowing capacity | 184.9 | 184.9 | |||
Revolving Credit Facility | Line of Credit | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Outstanding balance | $ 11.5 | $ 11.5 |
Debt and Financing Obligation_5
Debt and Financing Obligation - Covenants Narrative (Details) - Line of Credit - Revolving credit facility - Revolving Credit Facility | Jun. 30, 2021USD ($) |
Line of Credit Facility [Line Items] | |
Maximum consolidated leverage ratio | 4.50 |
Minimum consolidated interest coverage ratio | 2.50 |
Cross default covenant threshold | $ 35,000,000 |
Debt and Financing Obligation_6
Debt and Financing Obligation - Maturities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2021 | $ 1.6 | |
2022 | 3.2 | |
2023 | 3.3 | |
2024 | 5.4 | |
2025 | 0 | |
2026-Thereafter | 653 | |
Total borrowings | $ 666.5 | $ 690.5 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | Feb. 21, 2020 | Jun. 30, 2021 | Dec. 31, 2013 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||||
Legal fees | $ 1 | |||
Uninsured Risk | ||||
Loss Contingencies [Line Items] | ||||
Collateral to secure black lung obligations | $ 40.4 | $ 8.4 | ||
Accrual for black lung liability | 66.4 | $ 64.6 | ||
Accrual for black lung liability, current | $ 4.6 | $ 4.6 |
Share-Based Compensation -Narra
Share-Based Compensation -Narrative (Details) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jun. 30, 2021USD ($)annual_installment$ / sharesshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Director | |||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |||
Compensation expense | $ 0.1 | $ 0.1 | |
RSUs | |||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |||
Restricted stock (in shares) | shares | 463,476 | ||
Fair value grant (in dollars per share) | $ / shares | $ 6.77 | ||
Number of annual installment in which stock option exercisable (in installments) | annual_installment | 3 | ||
Period from grant date for annual installment (in years) | 1 year | ||
PSUs | Minimum | |||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |||
Percent of original award granted | 0.00% | ||
PSUs | Maximum | |||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |||
Percent of original award granted | 250.00% | ||
Stock options | |||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |||
Options granted (in shares) | shares | 0 | ||
Restricted Stock Units Settled in Cash | |||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |||
Restricted stock (in shares) | shares | 230,056 | ||
Fair value grant (in dollars per share) | $ / shares | $ 6.68 | ||
Number of annual installment in which stock option exercisable (in installments) | annual_installment | 3 | ||
Period from grant date for annual installment (in years) | 1 year | ||
Award liability | $ 1.3 | $ 1.1 | |
Cash incentive award | Suncoke LTCIP | |||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |||
Award liability | 2.1 | $ 1.3 | |
Grant date fair value of award | $ 2.1 | ||
Percent of award allocation | 50.00% | ||
Measurement period | 3 years |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Share Units (Details) - PSUs - Suncoke LTPEP | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | shares | 177,176 |
Weighted Average Per Share Grant Date Fair Value (in dollars per share) | $ / shares | $ 7.60 |
Pre-tax return of capital for Coke and Coal Logistics businesses | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent of award allocation | 50.00% |
Measurement period | 3 years |
TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Measurement period | 3 years |
TSR | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Measurement results payout percentage | 75.00% |
TSR | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Measurement results payout percentage | 125.00% |
Share-Based Compensation - Comp
Share-Based Compensation - Compensation Expense and Unrecognized Compensation Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock options | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Unrecognized Compensation Cost | $ 0.1 | $ 0.1 | ||
Recognition Period | 8 months 12 days | |||
Stock options | Selling, General and Administrative Expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Compensation expense | 0 | $ 0.1 | $ 0 | $ 0.3 |
RSUs | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Unrecognized Compensation Cost | 1.6 | $ 1.6 | ||
Recognition Period | 10 months 24 days | |||
RSUs | Selling, General and Administrative Expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Compensation expense | 0.7 | 0.5 | $ 1 | 0.9 |
PSUs | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Unrecognized Compensation Cost | 3.1 | $ 3.1 | ||
Recognition Period | 1 year 6 months | |||
PSUs | Selling, General and Administrative Expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Compensation expense | 1.1 | 0.6 | $ 1.2 | 1 |
Total equity awards | Selling, General and Administrative Expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Compensation expense | 1.8 | 1.2 | 2.2 | 2.2 |
Cash RSUs | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Unrecognized Compensation Cost | 1.8 | $ 1.8 | ||
Recognition Period | 1 year 9 months 18 days | |||
Cash RSUs | Selling, General and Administrative Expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Compensation expense | 0.3 | 0.1 | $ 1.1 | 0.1 |
Cash incentive award | Suncoke LTCIP | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Unrecognized Compensation Cost | 4.3 | $ 4.3 | ||
Recognition Period | 1 year 9 months 18 days | |||
Cash incentive award | Selling, General and Administrative Expenses | Suncoke LTCIP | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Compensation expense | 1.1 | 0.1 | $ 1.3 | 0.3 |
Total liability awards | Selling, General and Administrative Expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Compensation expense | $ 1.4 | $ 0.2 | $ 2.4 | $ 0.4 |
Earnings per Share - Computatio
Earnings per Share - Computation of EPS (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted-average number of common shares outstanding-basic | 83 | 82.8 | 82.9 | 83.2 |
Add: Effect of dilutive share-based compensation awards | 0 | 0.1 | 0.6 | 0.2 |
Weighted-average number of shares-diluted | 83 | 82.9 | 83.5 | 83.4 |
Earnings per Share - Antidiluti
Earnings per Share - Antidilutive Securities Excluded From EPS Calculation (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential dilutive effect excluded from the computation of diluted weighted-average shares outstanding (in shares) | 4.4 | 3.6 | 3 | 3.6 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential dilutive effect excluded from the computation of diluted weighted-average shares outstanding (in shares) | 3.1 | 3.1 | 2.9 | 3.1 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential dilutive effect excluded from the computation of diluted weighted-average shares outstanding (in shares) | 0.6 | 0.3 | 0.1 | 0.3 |
Performance stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential dilutive effect excluded from the computation of diluted weighted-average shares outstanding (in shares) | 0.7 | 0.2 | 0 | 0.2 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Fair value of Company's debt | $ 666.3 | $ 683.9 |
Total borrowings | $ 666.5 | $ 690.5 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) T in Millions, $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($)T | |
Cokemaking | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations capacity (in tons) | T | 15.5 |
Average remaining term | 7 years |
Logistics | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Average remaining term | 3 years |
Performance obligation amount | $ | $ 35.6 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregated Sales and Other Operating Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | $ 364.3 | $ 338 | $ 724.2 | $ 720.7 |
Cliffs Steel | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 253 | 508.7 | ||
AM USA | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 180.3 | 376.1 | ||
Cliffs Steel / AK Steel | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 89.8 | 197.7 | ||
U.S. Steel | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 52.9 | 51 | 103.9 | 109.9 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 58.4 | 16.9 | 111.6 | 37 |
Cokemaking | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 324.2 | 310 | 644.3 | 661.5 |
Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 13.8 | 12 | 28.6 | 25.1 |
Logistics | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 16.5 | 7.1 | 32.4 | 16 |
Operating and licensing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 9 | 7.2 | 17.5 | 15.7 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | $ 0.8 | $ 1.7 | $ 1.4 | $ 2.4 |
Business Segment Information (D
Business Segment Information (Details Textual) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segment Information -
Business Segment Information - Segment Profit or Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenue | $ 364.3 | $ 338 | $ 724.2 | $ 720.7 |
Adjusted EBITDA | 68 | 59 | 138.6 | 121.1 |
Depreciation and amortization expense | 34.1 | 34.1 | 66.5 | 68.2 |
Capital expenditures | 13.6 | 14.1 | 33.7 | 36.9 |
Domestic Coke | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 61.4 | 61.6 | 124.9 | 125 |
Depreciation and amortization expense | 30.4 | 30.4 | 59.1 | 60.9 |
Capital expenditures | 11 | 11.5 | 27.4 | 32.2 |
Brazil Coke | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 4 | 3.2 | 8.5 | 7.3 |
Depreciation and amortization expense | 0.1 | 0.1 | 0.2 | 0.2 |
Capital expenditures | 0 | 0 | 0.1 | 0.1 |
Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 11.4 | 3 | 22.3 | 6.3 |
Depreciation and amortization expense | 3.3 | 3.2 | 6.6 | 6.4 |
Capital expenditures | 2.6 | 2.6 | 6.2 | 4.6 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (8.8) | (8.8) | (17.1) | (17.5) |
Depreciation and amortization expense | 0.3 | 0.4 | 0.6 | 0.7 |
Research and development costs | 0.6 | 1.4 | ||
Coal Mining | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (1.5) | (2.4) | (3.4) | (4.5) |
Operating Segments | Domestic Coke | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenue | 338.6 | 323.5 | 673.9 | 688.7 |
Operating Segments | Brazil Coke | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenue | 9 | 7.2 | 17.5 | 15.7 |
Operating Segments | Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenue | 16.7 | 7.3 | 32.8 | 16.3 |
Elimination of intersegment sales | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenue | (7.4) | (5.2) | (14) | (11.8) |
Elimination of intersegment sales | Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenue | $ 7.4 | $ 5.2 | $ 14 | $ 11.8 |
Business Segment Information _2
Business Segment Information - Segment Assets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Segment assets, excluding income tax receivable | $ 1,595.2 | $ 1,607.9 |
Income tax receivable | 2.8 | 5.5 |
Total assets | 1,598 | 1,613.4 |
Operating Segments | Domestic Coke | ||
Segment Reporting Information [Line Items] | ||
Segment assets, excluding income tax receivable | 1,352.8 | 1,358.9 |
Operating Segments | Brazil Coke | ||
Segment Reporting Information [Line Items] | ||
Segment assets, excluding income tax receivable | 14.5 | 17.7 |
Operating Segments | Logistics | ||
Segment Reporting Information [Line Items] | ||
Segment assets, excluding income tax receivable | 199.6 | 199.5 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Segment assets, excluding income tax receivable | $ 28.3 | $ 31.8 |
Business Segment Information _3
Business Segment Information - Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | ||||
Net (loss) income attributable to SunCoke Energy, Inc. | $ (8.8) | $ 6.5 | $ 7.7 | $ 11.4 |
Add: Net income attributable to noncontrolling interests | 1.3 | 1.3 | 3 | 2.3 |
Net (loss) income | (7.5) | 7.8 | 10.7 | 13.7 |
Add: | ||||
Depreciation and amortization expense | 34.1 | 34.1 | 66.5 | 68.2 |
Interest expense, net | 14.2 | 14.9 | 26.9 | 29.5 |
Loss (gain) on extinguishment of debt | 31.9 | 0 | 31.9 | (2.9) |
Income tax (benefit) expense | (4.7) | 2.2 | 2.6 | 12.6 |
Adjusted EBITDA | 68 | 59 | 138.6 | 121.1 |
Subtract: Adjusted EBITDA attributable to noncontrolling interests | 2.3 | 2.3 | 4.9 | 4.3 |
Adjusted EBITDA attributable to SunCoke Energy, Inc. | $ 65.7 | $ 56.7 | $ 133.7 | $ 116.8 |