Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 20, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SunCoke Energy Partners, L.P. | |
Entity Central Index Key | 1,555,538 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Common Unit Outstanding | 46,227,148 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Sales and other operating revenue | $ 228.6 | $ 200.6 | $ 443.4 | $ 396.2 |
Costs and operating expenses | ||||
Cost of products sold and operating expenses | 165 | 149.4 | 322.1 | 284.8 |
Selling, general and administrative expenses | 8.7 | 8.5 | 16.9 | 17 |
Depreciation and amortization expense | 20.2 | 21.5 | 41.7 | 43.1 |
Total costs and operating expenses | 193.9 | 179.4 | 380.7 | 344.9 |
Operating income | 34.7 | 21.2 | 62.7 | 51.3 |
Interest expense, net | 15 | 14 | 30 | 26.6 |
Loss on extinguishment of debt | 0 | 19.9 | 0 | 19.9 |
Income (loss) before income tax expense (benefit) | 19.7 | (12.7) | 32.7 | 4.8 |
Income tax expense (benefit) | 0.3 | (0.2) | 0.6 | 149 |
Net income (loss) | 19.4 | (12.5) | 32.1 | (144.2) |
Less: Net income (loss) attributable to noncontrolling interests | 0.6 | 0.4 | 1.1 | (2) |
Net income (loss) attributable to SunCoke Energy Partners, L.P. | 18.8 | (12.9) | 31 | (142.2) |
General partner's interest in net income (loss) | 0.3 | 1.2 | 0.6 | (0.1) |
Limited partners' interest in net income (loss) | $ 18.5 | $ (14.1) | $ 30.4 | $ (142.1) |
Net income (loss) per common unit (basic and diluted) (in dollars per share) | $ 0.40 | $ (0.30) | $ 0.66 | $ (3.08) |
Weighted average common units outstanding - basic and diluted (in shares) | 46.2 | 46.2 | 46.2 | 46.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 12 | $ 6.6 |
Receivables | 59.3 | 42.2 |
Receivables from affiliate, net | 3.2 | 5.7 |
Inventories | 84.3 | 79.4 |
Other current assets | 4.7 | 1.9 |
Total current assets | 163.5 | 135.8 |
Properties, plants and equipment (net of accumulated depreciation of $459.3 million and $423.1 million at June 30, 2018 and December 31, 2017, respectively) | 1,258.8 | 1,265.6 |
Goodwill | 73.5 | 73.5 |
Other intangible assets, net | 161 | 166.2 |
Deferred charges and other assets | 0.2 | 0.3 |
Total assets | 1,657 | 1,641.4 |
Liabilities and Equity | ||
Accounts payable | 78.2 | 54.9 |
Accrued liabilities | 12.2 | 14.6 |
Deferred revenue | 3.2 | 1.7 |
Current portion of long-term debt and financing obligation | 2.7 | 2.6 |
Interest payable | 3.7 | 4 |
Total current liabilities | 100 | 77.8 |
Long-term debt and financing obligation | 818.3 | 818.4 |
Deferred income taxes | 119.8 | 119.2 |
Other deferred credits and liabilities | 10.6 | 10.1 |
Total liabilities | 1,048.7 | 1,025.5 |
Equity | ||
Equity | 596.3 | 603.6 |
Noncontrolling interest | 12 | 12.3 |
Total equity | 608.3 | 615.9 |
Total liabilities and equity | 1,657 | 1,641.4 |
Common Units - Public | ||
Equity | ||
Equity | 198.3 | 207 |
Common Units - Parent | ||
Equity | ||
Equity | 358.5 | 365.4 |
General Partner | ||
Equity | ||
Equity | $ 39.5 | $ 31.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 459.3 | $ 423.1 |
Common Units - Public | ||
Limited partners' capital account units issued (in units) | 1,727,249 | 17,958,420 |
Common Units - Parent | ||
Limited partners' capital account units issued (in units) | 28,499,899 | 28,268,728 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows from Operating Activities: | ||||
Net income (loss) | $ 19.4 | $ (12.5) | $ 32.1 | $ (144.2) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization expense | 20.2 | 21.5 | 41.7 | 43.1 |
Deferred income tax expense | 0.6 | 148.8 | ||
Loss on extinguishment of debt | 0 | 19.9 | 0 | 19.9 |
Changes in working capital pertaining to operating activities: | ||||
Receivables | (17.1) | (6.2) | ||
Receivables/payables from affiliate, net | 2.5 | (5.4) | ||
Inventories | (4.9) | (15.6) | ||
Accounts payable | 22.6 | 12 | ||
Accrued liabilities | (2.2) | (0.2) | ||
Deferred revenue | 1.5 | 9.5 | ||
Interest payable | (0.3) | (9.5) | ||
Other | (1.1) | (0.6) | ||
Net cash provided by operating activities | 9.3 | 12.2 | 75.4 | 51.6 |
Cash Flows from Investing Activities: | ||||
Capital expenditures | (18.4) | (5.7) | (29) | (9.9) |
Net cash used in investing activities | (29) | (9.9) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from issuance of long-term debt | 0 | 620.6 | ||
Repayment of long-term debt | 0 | (532.2) | ||
Repayment of financing obligation | (1.3) | (1.2) | ||
Proceeds from revolving credit facility | 92.5 | 128 | ||
Repayment of revolving credit facility | (92.5) | (200) | ||
Debt issuance costs | 0 | (13.9) | ||
Distributions to unitholders (public and parent) | (48.3) | (60.3) | ||
Distributions to noncontrolling interest (SunCoke Energy, Inc.) | (1.4) | (1.1) | ||
Capital contributions from SunCoke | 10 | 0 | ||
Net cash used in financing activities | (41) | (60.1) | ||
Net increase (decrease) in cash and cash equivalents and restricted cash | 5.4 | (18.4) | ||
Cash, cash equivalents and restricted cash at beginning of period | 6.6 | 42.3 | ||
Cash, cash equivalents and restricted cash at end of period | 12 | 23.9 | 12 | 23.9 |
Supplemental Disclosure of Cash Flow Information | ||||
Interest paid | 29.9 | 35.5 | ||
Income taxes paid | $ 1.2 | $ 0.3 | $ 2.5 | $ 0.6 |
Consolidated Statement of Equit
Consolidated Statement of Equity (Unaudited) - 6 months ended Jun. 30, 2018 - USD ($) $ in Millions | Total | CommonLimited Partner | CommonLimited PartnerSunCoke Energy Inc | General PartnerGeneral PartnerSunCoke Energy Inc | Noncontrolling Interest |
Balance at beginning of period at Dec. 31, 2017 | $ 615.9 | $ 207 | $ 365.4 | $ 31.2 | $ 12.3 |
Increase (Decrease) in Stockholders' Equity | |||||
Partnership net income | 32.1 | 11.7 | 18.7 | 0.6 | 1.1 |
Distributions to unitholders | (48.3) | (17.7) | (28.3) | (2.3) | |
Distributions to noncontrolling interest | (1.4) | (1.4) | |||
Public units acquired by SunCoke | 0 | (2.7) | 2.7 | ||
SunCoke capital contributions | 10 | 10 | |||
Balance at end of period at Jun. 30, 2018 | $ 608.3 | $ 198.3 | $ 358.5 | $ 39.5 | $ 12 |
General
General | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | 1. General Description of Business SunCoke Energy Partners, L.P., (the "Partnership", "we", "our", and "us") primarily produces coke used in the blast furnace production of steel. 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. We also provide handling and/or mixing services of coal and other aggregates at our logistics terminals. At June 30, 2018 , we owned a 98 percent interest in Haverhill Coke Company LLC ("Haverhill"), Middletown Coke Company, LLC ("Middletown") and Gateway Energy and Coke Company, LLC ("Granite City") and SunCoke Energy, Inc. ("SunCoke") owned the remaining 2 percent ownership interest in each of Haverhill, Middletown, and Granite City. The Partnership also owns a 100 percent interest in all of its logistics terminals, which consist of Convent Marine Terminal ("CMT"), Kanawha River Terminals, LLC ("KRT") and SunCoke Lake Terminal, LLC ("Lake Terminal"). At June 30, 2018 , SunCoke, through a subsidiary, owned a 60.4 percent limited partnership interest in us and indirectly owned and controlled our general partner, which holds a 2.0 percent general partner interest in us and all of our incentive distribution rights ("IDR"). Our cokemaking ovens have collective capacity to produce 2.3 million tons of coke annually and 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 seeks to repurpose the coal’s liberated volatile components for other uses. We have constructed the only greenfield cokemaking facilities in the United States ("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 and SunCoke's domestic cokemaking facilities), electric utility, coal producing and other manufacturing based customers. The logistics business has terminals with the collective capacity to mix and/or transload more than 40 million tons of coal annually and has total storage capacity of approximately 3 million tons. Organized in Delaware in 2012 and headquartered in Lisle, Illinois, we became a publicly-traded partnership in 2013 and our stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “SXCP.” Basis of Presentation The accompanying unaudited consolidated financial statements included herein have been prepared in conformity with accounting principles generally accepted in the United States ("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 periods ended June 30, 2018 are not necessarily indicative of the operating results for the full year. These unaudited interim consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2017 . Recently Adopted Accounting Pronouncements In May 2014, Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Partnership adopted this standard on January 1, 2018, using the modified retrospective method with no material impact on our revenue recognition model on an annual basis. See Note 10 . In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted cash.” The Partnership retrospectively adopted this ASU in the first quarter 2018 and modified the Partnership's cash flow presentation to include restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The restricted cash balance was zero at both June 30, 2018 and December 31, 2017, and was $0.4 million and $0.5 million at June 30, 2017 and December 31, 2016, respectively. Historical restricted cash balances related to cash withheld in the 2015 acquisition of CMT to fund the completion of certain expansion capital improvements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 requires leases to be recognized as assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. It is effective for annual and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. A multi-disciplined implementation team has gained an understanding of the accounting and disclosure provisions of the standard and is in the process of analyzing the impacts to our business, including the development of new accounting processes to account for our leases and support the required disclosures. We have are implementing a technology tool to assist with the accounting and reporting requirements of this standard. While we are still evaluating the impact of adopting this standard, we expect that upon adoption the right-of-use assets and lease liabilities, such as various plant equipment rentals and the lease of our corporate office space, will increase the reported assets and liabilities on our Consolidated Balance Sheets. The Partnership expects to adopt this standard on January 1, 2019. Reclassifications Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current year presentation. |
Related Party Transactions and
Related Party Transactions and Agreements | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Agreements | 2. Related Party Transactions and Agreements Transactions with Affiliate Our logistics business provides handling and mixing services to certain SunCoke cokemaking operations. Logistics recorded revenues derived from services provided to SunCoke’s cokemaking operations of $2.5 million and $5.0 million for the three and six months ended June 30, 2018 , respectively, and $2.4 million and $4.6 million for the three and six months ended June 30, 2017 , respectively. Allocated Expenses SunCoke charges us for all direct costs and expenses incurred on our behalf and allocated costs associated with support services provided to our operations. Allocated expenses from SunCoke for general corporate and operations support costs totaled $6.9 million and $13.7 million for the three and six months ended June 30, 2018 , respectively, and $7.0 million and $13.9 million three and six months ended June 30, 2017 , respectively, and were included in selling, general and administrative expenses on the Consolidated Statements of Operations. These costs include legal, accounting, tax, treasury, engineering, information technology, insurance, employee benefit costs, communications, human resources, and procurement. Corporate allocations are recorded in accordance with the terms of our omnibus agreement with SunCoke and our general partner. Omnibus Agreement In connection with the closing of our initial public offering ("IPO"), we entered into an omnibus agreement with SunCoke and our general partner that addresses certain aspects of our relationship with them, including: Business Opportunities. We have preferential rights to invest in, acquire and construct cokemaking facilities in the U.S. and Canada. SunCoke has preferential rights to all other business opportunities. Environmental Indemnity. SunCoke will indemnify us to the full extent of any remediation at the Haverhill, Middletown and Granite City cokemaking facilities arising from any known environmental matter discovered and identified as requiring remediation prior to the closing of the IPO and the dropdown of Granite City, respectively. SunCoke has contributed $129 million in partial satisfaction of this obligation and will reimburse us for additional spending in excess of $129 million as required for such known remediation obligations. Other Indemnification. SunCoke will fully indemnify us with respect to any additional tax liability related to periods prior to or in connection with the closing of the IPO or the Granite City Dropdown to the extent not currently presented on the Consolidated Balance Sheets. Additionally, SunCoke will either cure or fully indemnify us for losses resulting from any material title defects at the properties owned by the entities acquired in connection with the closing of the IPO or the Granite City Dropdown to the extent that those defects interfere with or could reasonably be expected to interfere with the operations of the related cokemaking facilities. We will indemnify SunCoke for events relating to our operations except to the extent that we are entitled to indemnification by SunCoke. License. SunCoke has granted us a royalty-free license to use the name “SunCoke” and related marks. Additionally, SunCoke has granted us a non-exclusive right to use all of SunCoke's current and future cokemaking and related technology. We have not paid and will not pay a separate license fee for the rights we receive under the license. Expenses and Reimbursement. SunCoke will continue to provide us with certain corporate and other services, and we will reimburse SunCoke for all direct costs and expenses incurred on our behalf and a portion of corporate and other costs and expenses attributable to our operations. SunCoke may consider providing additional support to the Partnership in the future by providing a corporate cost reimbursement holiday, whereby the Partnership would not be required to reimburse SunCoke for costs. Additionally, we paid all fees in connection with our senior notes offering and our revolving credit facility and have agreed to pay all additional fees in connection with any future financing arrangement entered into for the purpose of replacing the credit facility or the senior notes. So long as SunCoke controls our general partner, the omnibus agreement will remain in full force and effect unless mutually terminated by the parties. If SunCoke ceases to control our general partner, the omnibus agreement will terminate, but our rights to indemnification and use of SunCoke's existing cokemaking and related technology will survive. The omnibus agreement can be amended by written agreement of all parties to the agreement, but we may not agree to any amendment that would, in the reasonable discretion of our general partner, be adverse in any material respect to the holders of our common units without prior approval of the conflicts committee. |
Cash Distributions and Net Inco
Cash Distributions and Net Income Per Unit | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Cash Distributions and Net Income Per Unit | 3. Cash Distributions and Net Income Per Unit Cash Distributions Our partnership agreement generally provides that we will make cash distributions, if any, each quarter according to the following percentage allocations: Total Quarterly Distribution Per Unit Target Amount Marginal Percentage Interest in Distributions Unitholders General Partner First Target Distribution up to $0.474375 98% 2% Second Target Distribution above $0.474375 up to $0.515625 85% 15% Third Target Distribution above $0.515625 up to $0.618750 75% 25% Thereafter above $0.618750 50% 50% Our distributions are declared subsequent to quarter end. The table below represents total cash distributions applicable to the period in which the distributions were earned: Earned in Quarter Ended Total Quarterly Distribution Per Unit Total Cash Distribution including general partners IDRs Date of Distribution Unitholders Record Date (Dollars in millions) June 30, 2017 $ 0.5940 $ 29.5 September 1, 2017 August 15, 2017 September 30, 2017 $ 0.5940 $ 29.5 December 1, 2017 November 15, 2017 December 31, 2017 $ 0.5940 $ 29.5 March 1, 2018 February 15, 2018 March 31, 2018 $ 0.4000 $ 18.9 June 1, 2018 May 15, 2018 June 30, 2018 (1) $ 0.4000 $ 18.9 September 4, 2018 August 15, 2018 (1) On July 16, 2018 , our Board of Directors declared a cash distribution of $0.40 per unit, which will be paid on September 4, 2018 , to unitholders of record on August 15, 2018 . Allocation of Net Income Our partnership agreement contains provisions for the allocation of net income to the unitholders and the general partner. For purposes of maintaining partner capital accounts, the partnership agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage interest. Normal allocations according to percentage interests are made after giving effect, if any, to priority income allocations in an amount equal to incentive cash distributions allocated 100 percent to the general partner. The calculation of net income allocated to the general and limited partners was as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in millions) Net income (loss) attributable to SunCoke Energy L.P. $ 18.8 $ (12.9 ) $ 31.0 $ (142.2 ) General partner's incentive distribution rights — 1.4 — 2.8 Net income (loss) attributable to partners, excluding incentive distribution rights 18.8 (14.3 ) 31.0 (145.0 ) General partner's ownership interest: 2.0 % 2.0 % 2.0 % 2.0 % General partner's allocated interest in net income (loss) (1) 0.3 (0.2 ) 0.6 (2.9 ) General partner's incentive distribution rights — 1.4 — 2.8 Total general partner's interest in net income (loss) $ 0.3 $ 1.2 $ 0.6 $ (0.1 ) Common - public unitholder's interest in net income (loss) $ 7.1 $ (6.2 ) $ 11.7 $ (63.8 ) Common - SunCoke interest in net income (loss) 11.4 (7.9 ) 18.7 (78.3 ) Total limited partners' interest in net income (loss) $ 18.5 $ (14.1 ) $ 30.4 $ (142.1 ) (1) Our net income is allocated to the general partner and limited partners in accordance with their respective partnership percentages, after giving effect to priority income allocations for incentive distributions, if any, to our general partner, pursuant to our partnership agreement. The table above represents a simplified presentation of the calculation, and therefore, amounts may not recalculate precisely. Earnings Per Unit Our net income is allocated to the general partner and limited partners in accordance with their respective partnership percentages, after giving effect to priority income allocations for incentive distributions, if any, to our general partner, pursuant to our partnership agreement. Distributions less than or greater than earnings are allocated in accordance with our partnership agreement. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit. In addition to the common, we also have identified the general partner interest and IDRs as participating securities and we use the two-class method when calculating the net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the period. Basic and diluted net income per unit applicable to limited partners are the same because we do not have any potentially dilutive units outstanding. The calculation of earnings per unit is as follows: Three Months Ended June 30, Six months ended June 30, 2018 2017 2018 2017 (Dollars and units in millions, except per unit amounts) Net income (loss) attributable to SunCoke Energy L.P. $ 18.8 $ (12.9 ) $ 31.0 $ (142.2 ) General partner's distributions (including zero, $1.4 million, zero, and $2.8 million, of cash incentive distribution rights declared, respectively) 0.4 2.0 0.8 4.0 Limited partners' distributions on common units 18.5 27.5 37.0 55.0 Distributions greater than earnings/loss (0.1 ) (42.4 ) (6.8 ) (201.2 ) General partner's earnings (loss): Distributions (including zero, $1.4 million, zero and $2.8 million, of cash incentive distribution rights declared, respectively) 0.4 2.0 0.8 4.0 Allocation of distributions greater than earnings/loss (0.1 ) (0.8 ) (0.2 ) (4.1 ) Total general partner's earnings (loss) 0.3 1.2 0.6 (0.1 ) Limited partners' earnings (loss) on common units: Distributions 18.5 27.5 37.0 55.0 Allocation of distributions greater than earnings/loss — (41.6 ) (6.6 ) (197.1 ) Total limited partners' earnings (loss) on common units 18.5 (14.1 ) 30.4 (142.1 ) Weighted average limited partner units outstanding: Common - basic and diluted 46.2 46.2 46.2 46.2 Net income (loss) per limited partner unit: Common - basic and diluted $ 0.40 $ (0.30 ) $ 0.66 $ (3.08 ) Unit Activity Unit activity for the six months ended June 30, 2018 : Common - Public Common - SunCoke Total Common At December 31, 2017 17,958,420 28,268,728 46,227,148 Common units acquired by SunCoke (231,171 ) 231,171 — At June 30, 2018 17,727,249 28,499,899 46,227,148 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories The components of inventories were as follows: June 30, 2018 December 31, 2017 (Dollars in millions) Coal $ 49.2 $ 41.0 Coke 5.6 9.5 Materials, supplies, and other 29.5 28.9 Total inventories $ 84.3 $ 79.4 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 5. Goodwill and Other Intangible Assets Goodwill, which represents the excess of the purchase price over the fair value of net assets acquired, is tested for impairment as of October 1 of each year, or when events occur or circumstances change that would, more likely than not, reduce the fair value of a reporting unit to below its carrying value. Goodwill allocated to our Logistics segment was $73.5 million at both June 30, 2018 and December 31, 2017 . The components of other intangible assets, net were as follows: June 30, 2018 December 31, 2017 Weighted - Average Remaining Amortization Years Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (Dollars in millions) Customer contracts 5 $ 24.0 $ 9.3 $ 14.7 $ 24.0 $ 7.8 $ 16.2 Customer relationships 14 28.7 6.6 22.1 28.7 5.7 23.0 Permits 24 139.0 14.9 124.1 139.0 12.2 126.8 Trade name 1 1.2 1.1 0.1 1.2 1.0 0.2 Total $ 192.9 $ 31.9 $ 161.0 $ 192.9 $ 26.7 $ 166.2 The permits above represent the environmental and operational permits required to operate a coal export terminal in accordance with the United States Environmental Protection Agency and other regulatory bodies. Intangible assets are amortized over their useful lives in a manner that reflects the pattern in which the economic benefit of the asset is consumed. The permits’ useful lives were estimated to be 27 years at acquisition based on the expected useful life of the significant operating equipment at the facility. We have historical experience of renewing and extending similar arrangements at our other facilities and intend to continue to renew our permits as they come up for renewal for the foreseeable future. The permits were renewed regularly prior to our acquisition of CMT. These permits have an average remaining renewal term of approximately 2.9 years. In both 2018 and 2017, total amortization expense for intangible assets subject to amortization was $2.6 million and $5.2 million for the three and six months ended June 30, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The Partnership is a limited partnership and generally is not subject to federal or state income taxes. At the end of each interim period, we make our best estimate of the effective tax rate expected to be applicable for the full fiscal year and the impact of discrete items, if any, and adjust the rate as necessary. The Partnership recorded income tax expense of $0.3 million and $0.6 million for the three and six months ended June 30, 2018 , respectively, primarily related to local taxes and activities related to Gateway Cogeneration Company LLC. In January 2017, the IRS announced its decision to exclude cokemaking as a qualifying income generating activity in its final regulations (the "Final Regulations") issued under section 7704(d)(1)(E) of the Internal Revenue Code relating to the qualifying income exception for publicly traded partnerships. Subsequent to the 10-year transition period, certain cokemaking entities in the Partnership will become taxable as corporations. As a result, the Partnership recorded deferred income tax expense of $148.6 million during the first quarter of 2017 related to the future tax obligation expected to be owed for the projected book to tax differences at the end of the 10-year transition period. |
Debt and Financing Obligation
Debt and Financing Obligation | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Financing Obligation | 7. Debt and Financing Obligation Total debt and financing obligation, including the current portion of long-term debt and financing obligation, consisted of the following: June 30, 2018 December 31, 2017 (Dollars in millions) 7.500 percent senior notes, due 2025 ("2025 Partnership Notes") $ 700.0 $ 700.0 Revolving credit facility, due 2022 ("Partnership Revolver") 130.0 130.0 5.82 percent financing obligation, due 2021 ("Financing Obligation") 11.4 12.7 Total borrowings 841.4 842.7 Original issue discount (5.6 ) (5.9 ) Debt issuance cost (14.8 ) (15.8 ) Total debt and financing obligation 821.0 821.0 Less: current portion of long-term debt and financing obligation 2.7 2.6 Total long-term debt and financing obligation $ 818.3 $ 818.4 Partnership Revolver The Partnership Revolver has a capacity of $285.0 million . As of June 30, 2018 , the Partnership had $1.9 million of letters of credit outstanding and an outstanding balance of $130.0 million , leaving $153.1 million available. Covenants Under the terms of the Partnership Revolver, the Partnership is subject to a maximum leverage ratio of 4.50 : 1.00 prior to June 30, 2020 and 4.00 : 1.00 after June 30, 2020, and a minimum consolidated interest coverage ratio of 2.50 : 1.00 . The Partnership Revolver contains 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 Partnership Revolver could be declared immediately due and payable. The Partnership has a cross-default provision that applies to our indebtedness having a principal amount in excess of $35 million . As of June 30, 2018 , the Partnership was in compliance with all applicable debt covenants. We do not anticipate violation of these covenants nor do we anticipate that any of these covenants will restrict our operations or our ability to obtain additional financing. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 8. Commitments and Contingent Liabilities The United States Environmental Protection Agency (the "EPA") issued Notices of Violations (“NOVs”) for the Haverhill and Granite City cokemaking facilities which stemmed from alleged violations of air operating permits for these facilities. We are working in a cooperative manner with the EPA, the Ohio Environmental Protection Agency and the Illinois Environmental Protection Agency to address the allegations, and have entered into a consent degree in federal district court with these parties. The consent decree includes a $2.2 million civil penalty payment that was paid by SunCoke in 2014, as well as capital projects underway to improve the reliability of the energy recovery systems and enhance environmental performance at the Haverhill and Granite City cokemaking facilities. An amendment was lodged in February 2018 and entered by the federal district court in July 2018. The amendment provides the Haverhill and Granite City facilities with additional time to perform necessary maintenance on the flue gas desulfurization systems without exceeding consent decree limits. The emissions associated with this maintenance will be mitigated in accordance with the amendment, and there are no civil penalty payments. We retained an aggregate of $119 million in proceeds from the Partnership's IPO and subsequent dropdowns to fund the environmental remediation projects at the Haverhill and Granite City cokemaking facilities. Pursuant to the omnibus agreement, any amounts that we spend on these projects in excess of the $119 million will be reimbursed by SunCoke. Prior to our formation, SunCoke spent approximately $7 million related to these projects. We have spent approximately $121 million to date and the remaining capital is expected to be spent through the first half of 2019. Pursuant to the omnibus agreement, SunCoke, through the general partner, made a capital contribution of $10 million to us during the first quarter of 2018 for these known environmental remediation projects. SunCoke expects to make an additional capital contribution to us of approximately $15 million for the estimated future spending related to these environmental remediation projects. The Partnership is a party to certain other pending and threatened claims, including matters related to commercial and tax disputes, product liability, employment claims, personal injury claims, premises-liability claims, allegations of exposures to toxic substances and general 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 Partnership. Management of the Partnership believes that any liability which may arise from claims would not have a material adverse impact on our consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 9. Fair Value Measurements The Partnership 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 to sell 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 Partnership’s cash equivalents are measured at fair value based on quoted prices in active markets for identical assets. These inputs are classified as Level 1 within the valuation hierarchy. The Partnership did not have material cash equivalents at June 30, 2018 or December 31, 2017 . Convent Marine Terminal Contingent Consideration In connection with the CMT acquisition, the Partnership entered into a contingent consideration arrangement that requires us to make future payments to The Cline Group based on future volume over a specified threshold, price and contract renewals. The fair value of the contingent consideration was estimated based on a probability-weighted analysis using significant inputs that are not observable in the market, or Level 3 inputs. Key assumptions included probability adjusted levels of handling services provided by CMT, anticipated price per ton on future sales and probability of contract renewal, including length of future contracts, volume commitment, and anticipated price per ton. The fair value of the contingent consideration was $3.1 million at June 30, 2018, with $0.4 million included in accrued liabilities and $2.7 million included in other deferred credit and liabilities on the Consolidated Balance Sheets. The fair value of the contingent consideration was $2.5 million at December 31, 2017 and was included in other deferred credits and liabilities on the Consolidated Balance Sheets. The increase in the fair value of the contingent consideration liability was primarily due to changes in expected throughput volumes related to the long-term, take-or-pay agreements. Certain Financial Assets and Liabilities not Measured at Fair Value At June 30, 2018 and December 31, 2017 , the estimated fair value of the Partnership's total debt was $854.0 million and $875.0 million , respectively, compared to a carrying amount of $841.4 million and $842.7 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, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 10. Revenue from Contracts with Customers Cokemaking Substantially all our coke sales are made pursuant to long-term, take-or-pay agreements with ArcelorMittal USA LLC and/or its affiliates (“AM USA”), AK Steel Holding Corporation ("AK Steel") and United States Steel Corporation ("U.S. Steel"), who are three of the largest blast furnace steelmakers in North America. The take-or-pay provisions of our agreements require us to deliver minimum annual tonnage, which varies by contract, but covers at least 90 percent of each facility's annual capacity. The take-or-pay provisions also require our customers to purchase such volumes of coke or pay the contract price for any tonnage they elect not to take. These coke sales agreements have an average remaining term of approximately seven years , and to date, our coke customers have satisfied their obligations under these agreements. Our coke sales prices include an operating cost component, a coal cost component and a return of capital component. Operating costs under one of our coke sales agreements are contractual, subject to an annual adjustment based on an inflation index. Under our other three coke sales agreements operating costs are passed through to the respective customers subject to an annually negotiated budget, in some cases subject to a cap annually adjusted for inflation, and generally we share any difference in costs from the budgeted amounts with our customers. Our coke sales agreements contain pass-through provisions for coal and coal procurement costs, subject to meeting contractual coal-to-coke yields. To the extent that the actual coal-to-coke yields are less than the contractual standard, we are responsible for the cost of the excess coal used in the cokemaking process. Conversely, to the extent our actual coal-to-coke yields are higher than the contractual standard, we realize gains. The reimbursement of pass-through operating and coal costs from these coke sales agreements are considered to be variable consideration components included in the cokemaking sales price. The return of capital component for each ton of coke sold to the customer is determined at the time the coke sales agreement is signed and is effective for the term of each sales agreement. This component of our coke sales prices is intended to provide an adequate return on invested capital and may differ based on investment levels and other considerations. The actual return on invested capital at any facility is also impacted by favorable or unfavorable performance on pass-through cost items. Revenues 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 and SunCokes's 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. Our logistics business has long-term, take-or-pay agreements requiring us to handle over 15 million tons annually. The take-or-pay provisions in these agreements require our customers to purchase such handling services or pay the contract price for services they elect not to take. Estimated take-or-pay revenue of approximately $410 million from all of our long-term logistics contracts is expected to be recognized over the next six years for unsatisfied or partially unsatisfied performance obligations as of June 30, 2018 . To date, our customers have satisfied their obligations under these agreements. Included with these long-term, take-or-pay arrangements are our contracts with Murray American Coal, Inc. ("Murray") and Foresight Energy LLC ("Foresight"), which cover 10 million tons of CMT's annual transloading capacity of 15 million tons. Revenues in our logistics business 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. Billings to CMT customers for take-or-pay volume shortfalls based on pro-rata volume commitments under take-or-pay contracts that are in excess of billings earned for services provided are recorded as contract liabilities and characterized as deferred revenue on the Consolidated Balance Sheets. Deferred revenue is recognized at the earlier of i) when the performance obligation is satisfied; ii) when the performance obligation has expired, based on the terms of the contract; or iii) as a result of a remote likelihood that the customer would exercise its right to the performance obligation. The following table provides changes in the Partnership's deferred revenue during the six months ended June 30: 2018 2017 (Dollars in millions) Beginning balance at December 31, 2017 and 2016, respectively $ 1.7 $ 2.5 Reclassification of the beginning contract liabilities to revenue, as a result of performance obligation satisfied (0.6 ) (0.5 ) Billings in excess of services performed, not recognized as revenue 2.1 10.0 Ending balance at June 30, 2018 and 2017, respectively $ 3.2 $ 12.0 Energy Our energy sales are made pursuant to either steam or energy supply and purchase agreements or is sold into the regional power market. 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. The energy provided under these arrangements result in transfer of control over time. Revenues are recognized as energy is delivered to our customers, in an amount based on the terms of each arrangement. 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, 2018 2017 2018 2017 (Dollars in millions) Sales and other operating revenue: Cokemaking $ 183.3 $ 170.5 $ 358.1 $ 327.8 Energy 13.1 11.0 26.7 24.6 Logistics 30.6 16.3 55.0 38.2 Other 1.6 2.8 3.6 5.6 Sales and other operating revenue $ 228.6 $ 200.6 $ 443.4 $ 396.2 The following table provides disaggregated sales and other operating revenue by customer: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in millions) Sales and other operating revenue: AM USA $ 43.9 $ 46.2 $ 81.0 $ 86.4 AK Steel 94.8 83.4 187.7 166.9 U.S. Steel 55.4 51.4 107.1 99.1 Foresight and Murray 17.4 8.0 31.5 19.5 Other 17.1 11.6 36.1 24.3 Sales and other operating revenue $ 228.6 $ 200.6 $ 443.4 $ 396.2 Shipping and Handling Costs Shipping and handling costs are included in cost of products sold and operating expenses on the Consolidated Statements of Operations and are generally passed through to our customers. The Partnership has elected to account for shipping and handling activities as a promise to fulfill the transfer of coke. |
Business Segment Disclosures
Business Segment Disclosures | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Disclosures | 11. Business Segment Disclosures The Partnership derives its revenues from the Domestic Coke and Logistics reportable segments. Domestic Coke operations are comprised of the Haverhill, Middletown and Granite City cokemaking facilities, which use similar production processes to produce coke and to recover waste heat that is converted to steam or electricity. Logistics operations are comprised of CMT, Lake Terminal and KRT. Handling and mixing results are presented in the Logistics segment. Corporate and other expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other. 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, 2018 2017 2018 2017 (Dollars in millions) Sales and other operating revenue: Domestic Coke $ 198.0 $ 182.0 $ 388.0 $ 355.2 Logistics 30.6 18.6 55.4 41.0 Logistics intersegment sales 1.8 1.5 3.5 3.3 Elimination of intersegment sales (1.8 ) (1.5 ) (3.5 ) (3.3 ) Total sales and other operating revenue $ 228.6 $ 200.6 $ 443.4 $ 396.2 Adjusted EBITDA: Domestic Coke $ 41.0 $ 37.5 $ 81.3 $ 80.0 Logistics 19.2 9.6 32.6 22.6 Corporate and Other (4.7 ) (4.1 ) (8.9 ) (7.9 ) Total Adjusted EBITDA $ 55.5 $ 43.0 $ 105.0 $ 94.7 Depreciation and amortization expense: Domestic Coke $ 14.3 $ 15.6 $ 29.0 $ 31.3 Logistics 5.9 5.9 12.7 11.8 Total depreciation and amortization expense $ 20.2 $ 21.5 $ 41.7 $ 43.1 Capital expenditures: Domestic Coke $ 17.4 $ 5.2 $ 27.7 $ 8.8 Logistics 1.0 0.5 1.3 1.1 Total capital expenditures $ 18.4 $ 5.7 $ 29.0 $ 9.9 The following table sets forth the Partnership's segment assets: June 30, 2018 December 31, 2017 (Dollars in millions) Segment assets: Domestic Coke $ 1,171.1 $ 1,151.4 Logistics 480.5 489.8 Corporate and Other 5.4 0.2 Total assets $ 1,657.0 $ 1,641.4 The Partnership evaluates the performance of its segments based on segment Adjusted EBITDA, which represents earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted for any loss (gain) on extinguishment of debt, and/or changes to our contingent consideration liability related to our acquisition of CMT. Adjusted EBITDA does not represent and should not be considered an alternative 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 of the operating performance and liquidity of the Partnership's net assets and its ability to incur and service debt, fund capital expenditures and make distributions. 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 and liquidity. EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP, and they should not be considered an alternative to net income, operating cash flow or any other measure of financial performance presented in accordance with GAAP. Set forth below is additional discussion of the limitations of Adjusted EBITDA as an analytical tool. Limitations. Other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. Adjusted EBITDA also has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP. Some of these limitations include that Adjusted EBITDA: • does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; • does not reflect items such as depreciation and amortization; • does not reflect changes in, or cash requirements for, working capital needs; • does not reflect our interest expense, or the cash requirements necessary to service interest on or principal payments of our debt; • does not reflect certain other non-cash income and expenses; • excludes income taxes that may represent a reduction in available cash; and • includes net income attributable to noncontrolling interests. 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, 2018 2017 2018 2017 (Dollars in millions) Net income (loss) $ 19.4 $ (12.5 ) $ 32.1 $ (144.2 ) Add: Depreciation and amortization expense 20.2 21.5 41.7 43.1 Interest expense, net 15.0 14.0 30.0 26.6 Loss on extinguishment of debt — 19.9 — 19.9 Income tax expense (benefit) 0.3 (0.2 ) 0.6 149.0 Contingent consideration adjustments 0.6 0.3 0.6 0.3 Adjusted EBITDA $ 55.5 $ 43.0 $ 105.0 $ 94.7 Subtract: Adjusted EBITDA attributable to noncontrolling interest (1) 0.8 0.8 1.6 1.6 Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. $ 54.7 $ 42.2 $ 103.4 $ 93.1 Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in millions) Net cash provided by operating activities $ 9.3 $ 12.2 75.4 51.6 Add: Cash interest paid 27.9 14.6 29.9 35.5 Cash income tax paid 1.2 0.3 2.5 0.6 Changes in working capital (2) 17.2 17.2 (2.4 ) 5.9 Contingent consideration adjustments 0.6 0.3 0.6 0.3 Other adjustments to reconcile cash provided by operating activities to Adjusted EBITDA (0.7 ) (1.6 ) (1.0 ) 0.8 Adjusted EBITDA $ 55.5 $ 43.0 $ 105.0 $ 94.7 Subtract: Adjusted EBITDA attributable to noncontrolling (1) 0.8 0.8 1.6 1.6 Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. $ 54.7 $ 42.2 $ 103.4 $ 93.1 (1) Reflects net income attributable to noncontrolling interest adjusted for noncontrolling interest's share of interest, taxes, income, and depreciation and amortization. (2) Changes in working capital exclude those items not impacting Adjusted EBITDA, such as changes in interest payable and income taxes payable. |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | In May 2014, Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Partnership adopted this standard on January 1, 2018, using the modified retrospective method with no material impact on our revenue recognition model on an annual basis. See Note 10 . In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted cash.” The Partnership retrospectively adopted this ASU in the first quarter 2018 and modified the Partnership's cash flow presentation to include restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The restricted cash balance was zero at both June 30, 2018 and December 31, 2017, and was $0.4 million and $0.5 million at June 30, 2017 and December 31, 2016, respectively. Historical restricted cash balances related to cash withheld in the 2015 acquisition of CMT to fund the completion of certain expansion capital improvements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 requires leases to be recognized as assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. It is effective for annual and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. A multi-disciplined implementation team has gained an understanding of the accounting and disclosure provisions of the standard and is in the process of analyzing the impacts to our business, including the development of new accounting processes to account for our leases and support the required disclosures. We have are implementing a technology tool to assist with the accounting and reporting requirements of this standard. While we are still evaluating the impact of adopting this standard, we expect that upon adoption the right-of-use assets and lease liabilities, such as various plant equipment rentals and the lease of our corporate office space, will increase the reported assets and liabilities on our Consolidated Balance Sheets. The Partnership expects to adopt this standard on January 1, 2019. |
Reclassifications | Reclassifications Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current year presentation. |
Cash Distributions and Net In19
Cash Distributions and Net Income Per Unit (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Distributions Made to Limited Partner, by Distribution | Our partnership agreement generally provides that we will make cash distributions, if any, each quarter according to the following percentage allocations: Total Quarterly Distribution Per Unit Target Amount Marginal Percentage Interest in Distributions Unitholders General Partner First Target Distribution up to $0.474375 98% 2% Second Target Distribution above $0.474375 up to $0.515625 85% 15% Third Target Distribution above $0.515625 up to $0.618750 75% 25% Thereafter above $0.618750 50% 50% Our distributions are declared subsequent to quarter end. The table below represents total cash distributions applicable to the period in which the distributions were earned: Earned in Quarter Ended Total Quarterly Distribution Per Unit Total Cash Distribution including general partners IDRs Date of Distribution Unitholders Record Date (Dollars in millions) June 30, 2017 $ 0.5940 $ 29.5 September 1, 2017 August 15, 2017 September 30, 2017 $ 0.5940 $ 29.5 December 1, 2017 November 15, 2017 December 31, 2017 $ 0.5940 $ 29.5 March 1, 2018 February 15, 2018 March 31, 2018 $ 0.4000 $ 18.9 June 1, 2018 May 15, 2018 June 30, 2018 (1) $ 0.4000 $ 18.9 September 4, 2018 August 15, 2018 (1) On July 16, 2018 , our Board of Directors declared a cash distribution of $0.40 per unit, which will be paid on September 4, 2018 , to unitholders of record on August 15, 2018 . |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The calculation of net income allocated to the general and limited partners was as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in millions) Net income (loss) attributable to SunCoke Energy L.P. $ 18.8 $ (12.9 ) $ 31.0 $ (142.2 ) General partner's incentive distribution rights — 1.4 — 2.8 Net income (loss) attributable to partners, excluding incentive distribution rights 18.8 (14.3 ) 31.0 (145.0 ) General partner's ownership interest: 2.0 % 2.0 % 2.0 % 2.0 % General partner's allocated interest in net income (loss) (1) 0.3 (0.2 ) 0.6 (2.9 ) General partner's incentive distribution rights — 1.4 — 2.8 Total general partner's interest in net income (loss) $ 0.3 $ 1.2 $ 0.6 $ (0.1 ) Common - public unitholder's interest in net income (loss) $ 7.1 $ (6.2 ) $ 11.7 $ (63.8 ) Common - SunCoke interest in net income (loss) 11.4 (7.9 ) 18.7 (78.3 ) Total limited partners' interest in net income (loss) $ 18.5 $ (14.1 ) $ 30.4 $ (142.1 ) (1) Our net income is allocated to the general partner and limited partners in accordance with their respective partnership percentages, after giving effect to priority income allocations for incentive distributions, if any, to our general partner, pursuant to our partnership agreement. The table above represents a simplified presentation of the calculation, and therefore, amounts may not recalculate precisely. The calculation of earnings per unit is as follows: Three Months Ended June 30, Six months ended June 30, 2018 2017 2018 2017 (Dollars and units in millions, except per unit amounts) Net income (loss) attributable to SunCoke Energy L.P. $ 18.8 $ (12.9 ) $ 31.0 $ (142.2 ) General partner's distributions (including zero, $1.4 million, zero, and $2.8 million, of cash incentive distribution rights declared, respectively) 0.4 2.0 0.8 4.0 Limited partners' distributions on common units 18.5 27.5 37.0 55.0 Distributions greater than earnings/loss (0.1 ) (42.4 ) (6.8 ) (201.2 ) General partner's earnings (loss): Distributions (including zero, $1.4 million, zero and $2.8 million, of cash incentive distribution rights declared, respectively) 0.4 2.0 0.8 4.0 Allocation of distributions greater than earnings/loss (0.1 ) (0.8 ) (0.2 ) (4.1 ) Total general partner's earnings (loss) 0.3 1.2 0.6 (0.1 ) Limited partners' earnings (loss) on common units: Distributions 18.5 27.5 37.0 55.0 Allocation of distributions greater than earnings/loss — (41.6 ) (6.6 ) (197.1 ) Total limited partners' earnings (loss) on common units 18.5 (14.1 ) 30.4 (142.1 ) Weighted average limited partner units outstanding: Common - basic and diluted 46.2 46.2 46.2 46.2 Net income (loss) per limited partner unit: Common - basic and diluted $ 0.40 $ (0.30 ) $ 0.66 $ (3.08 ) |
Schedule of Limited Partners' Capital Account by Class | Unit activity for the six months ended June 30, 2018 : Common - Public Common - SunCoke Total Common At December 31, 2017 17,958,420 28,268,728 46,227,148 Common units acquired by SunCoke (231,171 ) 231,171 — At June 30, 2018 17,727,249 28,499,899 46,227,148 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | The components of inventories were as follows: June 30, 2018 December 31, 2017 (Dollars in millions) Coal $ 49.2 $ 41.0 Coke 5.6 9.5 Materials, supplies, and other 29.5 28.9 Total inventories $ 84.3 $ 79.4 |
Goodwill and Other Intangible21
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The components of other intangible assets, net were as follows: June 30, 2018 December 31, 2017 Weighted - Average Remaining Amortization Years Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (Dollars in millions) Customer contracts 5 $ 24.0 $ 9.3 $ 14.7 $ 24.0 $ 7.8 $ 16.2 Customer relationships 14 28.7 6.6 22.1 28.7 5.7 23.0 Permits 24 139.0 14.9 124.1 139.0 12.2 126.8 Trade name 1 1.2 1.1 0.1 1.2 1.0 0.2 Total $ 192.9 $ 31.9 $ 161.0 $ 192.9 $ 26.7 $ 166.2 |
Debt and Financing Obligation (
Debt and Financing Obligation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Total debt and financing obligation, including the current portion of long-term debt and financing obligation, consisted of the following: June 30, 2018 December 31, 2017 (Dollars in millions) 7.500 percent senior notes, due 2025 ("2025 Partnership Notes") $ 700.0 $ 700.0 Revolving credit facility, due 2022 ("Partnership Revolver") 130.0 130.0 5.82 percent financing obligation, due 2021 ("Financing Obligation") 11.4 12.7 Total borrowings 841.4 842.7 Original issue discount (5.6 ) (5.9 ) Debt issuance cost (14.8 ) (15.8 ) Total debt and financing obligation 821.0 821.0 Less: current portion of long-term debt and financing obligation 2.7 2.6 Total long-term debt and financing obligation $ 818.3 $ 818.4 |
Revenue from Contracts with C23
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Changed in Deferred Revenue | The following table provides changes in the Partnership's deferred revenue during the six months ended June 30: 2018 2017 (Dollars in millions) Beginning balance at December 31, 2017 and 2016, respectively $ 1.7 $ 2.5 Reclassification of the beginning contract liabilities to revenue, as a result of performance obligation satisfied (0.6 ) (0.5 ) Billings in excess of services performed, not recognized as revenue 2.1 10.0 Ending balance at June 30, 2018 and 2017, respectively $ 3.2 $ 12.0 |
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, 2018 2017 2018 2017 (Dollars in millions) Sales and other operating revenue: Cokemaking $ 183.3 $ 170.5 $ 358.1 $ 327.8 Energy 13.1 11.0 26.7 24.6 Logistics 30.6 16.3 55.0 38.2 Other 1.6 2.8 3.6 5.6 Sales and other operating revenue $ 228.6 $ 200.6 $ 443.4 $ 396.2 The following table provides disaggregated sales and other operating revenue by customer: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in millions) Sales and other operating revenue: AM USA $ 43.9 $ 46.2 $ 81.0 $ 86.4 AK Steel 94.8 83.4 187.7 166.9 U.S. Steel 55.4 51.4 107.1 99.1 Foresight and Murray 17.4 8.0 31.5 19.5 Other 17.1 11.6 36.1 24.3 Sales and other operating revenue $ 228.6 $ 200.6 $ 443.4 $ 396.2 |
Business Segment Disclosures (T
Business Segment Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 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, 2018 2017 2018 2017 (Dollars in millions) Sales and other operating revenue: Domestic Coke $ 198.0 $ 182.0 $ 388.0 $ 355.2 Logistics 30.6 18.6 55.4 41.0 Logistics intersegment sales 1.8 1.5 3.5 3.3 Elimination of intersegment sales (1.8 ) (1.5 ) (3.5 ) (3.3 ) Total sales and other operating revenue $ 228.6 $ 200.6 $ 443.4 $ 396.2 Adjusted EBITDA: Domestic Coke $ 41.0 $ 37.5 $ 81.3 $ 80.0 Logistics 19.2 9.6 32.6 22.6 Corporate and Other (4.7 ) (4.1 ) (8.9 ) (7.9 ) Total Adjusted EBITDA $ 55.5 $ 43.0 $ 105.0 $ 94.7 Depreciation and amortization expense: Domestic Coke $ 14.3 $ 15.6 $ 29.0 $ 31.3 Logistics 5.9 5.9 12.7 11.8 Total depreciation and amortization expense $ 20.2 $ 21.5 $ 41.7 $ 43.1 Capital expenditures: Domestic Coke $ 17.4 $ 5.2 $ 27.7 $ 8.8 Logistics 1.0 0.5 1.3 1.1 Total capital expenditures $ 18.4 $ 5.7 $ 29.0 $ 9.9 The following table sets forth the Partnership's segment assets: June 30, 2018 December 31, 2017 (Dollars in millions) Segment assets: Domestic Coke $ 1,171.1 $ 1,151.4 Logistics 480.5 489.8 Corporate and Other 5.4 0.2 Total assets $ 1,657.0 $ 1,641.4 The Partnership evaluates the performance of its segments based on segment Adjusted EBITDA, which |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | 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, 2018 2017 2018 2017 (Dollars in millions) Net income (loss) $ 19.4 $ (12.5 ) $ 32.1 $ (144.2 ) Add: Depreciation and amortization expense 20.2 21.5 41.7 43.1 Interest expense, net 15.0 14.0 30.0 26.6 Loss on extinguishment of debt — 19.9 — 19.9 Income tax expense (benefit) 0.3 (0.2 ) 0.6 149.0 Contingent consideration adjustments 0.6 0.3 0.6 0.3 Adjusted EBITDA $ 55.5 $ 43.0 $ 105.0 $ 94.7 Subtract: Adjusted EBITDA attributable to noncontrolling interest (1) 0.8 0.8 1.6 1.6 Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. $ 54.7 $ 42.2 $ 103.4 $ 93.1 Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in millions) Net cash provided by operating activities $ 9.3 $ 12.2 75.4 51.6 Add: Cash interest paid 27.9 14.6 29.9 35.5 Cash income tax paid 1.2 0.3 2.5 0.6 Changes in working capital (2) 17.2 17.2 (2.4 ) 5.9 Contingent consideration adjustments 0.6 0.3 0.6 0.3 Other adjustments to reconcile cash provided by operating activities to Adjusted EBITDA (0.7 ) (1.6 ) (1.0 ) 0.8 Adjusted EBITDA $ 55.5 $ 43.0 $ 105.0 $ 94.7 Subtract: Adjusted EBITDA attributable to noncontrolling (1) 0.8 0.8 1.6 1.6 Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. $ 54.7 $ 42.2 $ 103.4 $ 93.1 (1) Reflects net income attributable to noncontrolling interest adjusted for noncontrolling interest's share of interest, taxes, income, and depreciation and amortization. (2) Changes in working capital exclude those items not impacting Adjusted EBITDA, such as changes in interest payable and income taxes payable. |
General (Details)
General (Details) T in Millions | 6 Months Ended | |||
Jun. 30, 2018USD ($)T | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Coke making capacity (in tons) | 2.3 | |||
Period of existence | 30 years | |||
ASU 2016-18 | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Restricted cash | $ | $ 0 | $ 0 | $ 400,000 | $ 500,000 |
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 | |||
SunCoke Energy Inc | SunCoke Energy Partners, L.P. | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Interest in partnership (as a percent) | 60.40% | |||
Limited Partnership (LP) ownership interest (as a percent) | 2.00% | |||
Haverhill Coke Company LLC, Middletown Coke Company LLC, and Gateway Energy and Coke Company, LLC | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Percent of interest in coal logistics terminals | 100.00% | |||
Haverhill Coke Company LLC, Middletown Coke Company LLC, and Gateway Energy and Coke Company, LLC | Suncoke LP | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Interest in partnership (as a percent) | 98.00% | |||
Haverhill Coke Company LLC, Middletown Coke Company LLC, and Gateway Energy and Coke Company, LLC | Suncoke Inc | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Limited Partnership (LP) ownership interest (as a percent) | 2.00% |
Related Party Transactions an26
Related Party Transactions and Agreements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Haverhill and Granite City | ||||
Related Party Transaction [Line Items] | ||||
Environmental capital expenditures retained | $ 129 | |||
SunCoke Energy Inc | SunCoke Energy Inc | ||||
Related Party Transaction [Line Items] | ||||
Allocated expenses | $ 6.9 | $ 7 | 13.7 | $ 13.9 |
SunCoke Energy Inc | Logistics | SunCoke Energy Inc | ||||
Related Party Transaction [Line Items] | ||||
Revenue | $ 2.5 | $ 2.4 | $ 5 | $ 4.6 |
Cash Distributions and Net In27
Cash Distributions and Net Income Per Unit - Distributions Percentage Allocations (Details) | 6 Months Ended |
Jun. 30, 2018$ / shares | |
First Target Distribution | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Total quarterly distribution target amount (in dollars per share) | $ 0.474375 |
Second Target Distribution | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Total quarterly distribution target amount (in dollars per share) | 0.474375 |
Second Target Distribution | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Total quarterly distribution target amount (in dollars per share) | 0.515625 |
Third Target Distribution | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Total quarterly distribution target amount (in dollars per share) | 0.515625 |
Third Target Distribution | Maximum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Total quarterly distribution target amount (in dollars per share) | 0.618750 |
Thereafter | Minimum | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Total quarterly distribution target amount (in dollars per share) | $ 0.618750 |
Unitholders | First Target Distribution | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions (as a percent) | 98.00% |
Unitholders | Second Target Distribution | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions (as a percent) | 85.00% |
Unitholders | Third Target Distribution | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions (as a percent) | 75.00% |
Unitholders | Thereafter | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions (as a percent) | 50.00% |
General Partner | First Target Distribution | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions (as a percent) | 2.00% |
General Partner | Second Target Distribution | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions (as a percent) | 15.00% |
General Partner | Third Target Distribution | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions (as a percent) | 25.00% |
General Partner | Thereafter | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal percentage interest in distributions (as a percent) | 50.00% |
Cash Distributions and Net In28
Cash Distributions and Net Income Per Unit - Allocation of Total Quarterly cash Distributions to General and Limited Partners (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 16, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 |
Dividends Payable [Line Items] | ||||||
Cash distributions per unit (in dollar per unit) | $ 0.4 | $ 0.5940 | $ 0.5940 | $ 0.5940 | ||
Cash distributions paid | $ 18.9 | $ 29.5 | $ 29.5 | $ 29.5 | ||
Distribution declared per unit (in dollar per unit) | $ 0.400 | |||||
Distributions declared | $ 18.9 | |||||
Subsequent Event | ||||||
Dividends Payable [Line Items] | ||||||
Distribution declared per unit (in dollar per unit) | $ 0.400 |
Cash Distributions and Net In29
Cash Distributions and Net Income Per Unit - Allocation of Net Income (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Allocation to general partner (as a percent) | 100.00% |
Cash Distributions and Net In30
Cash Distributions and Net Income Per Unit - Calculation of Net Income Allocated to the General and Limited Partners (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) attributable to SunCoke Energy L.P. | $ 18.8 | $ (12.9) | $ 31 | $ (142.2) |
Net income (loss) attributable to partners, excluding incentive distribution rights | $ 18.8 | $ (14.3) | $ 31 | $ (145) |
General partner's ownership interest (as a percent) | 2.00% | 2.00% | 2.00% | 2.00% |
General partner's interest in net income (loss) | $ 0.3 | $ 1.2 | $ 0.6 | $ (0.1) |
Limited partners' interest in net income (loss) | 18.5 | (14.1) | 30.4 | (142.1) |
General Partner | Incentive Distribution | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
General partner's incentive distribution rights | 0 | 1.4 | 0 | 2.8 |
General Partner | Allocated Interest | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
General partner's interest in net income (loss) | 0.3 | (0.2) | 0.6 | (2.9) |
General Partner | General Partner | Incentive Distribution | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
General partner's interest in net income (loss) | 0 | 1.4 | 0 | 2.8 |
Limited partners' distributions | Common Units - Public | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Limited partners' interest in net income (loss) | 7.1 | (6.2) | 11.7 | (63.8) |
Limited partners' distributions | Common Units - Parent | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Limited partners' interest in net income (loss) | $ 11.4 | $ (7.9) | $ 18.7 | $ (78.3) |
Cash Distributions and Net In31
Cash Distributions and Net Income Per Unit - Calculation of Earnings per Unit (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) attributable to SunCoke Energy L.P. | $ 18,800,000 | $ (12,900,000) | $ 31,000,000 | $ (142,200,000) |
Distributions | 400,000 | 2,000,000 | 800,000 | 4,000,000 |
Limited partners' distributions on common units | 18,900,000 | |||
Allocation of distributions greater than earnings/loss | $ (100,000) | $ (42,400,000) | $ (6,800,000) | $ (201,200,000) |
Weighted average limited partner units outstanding: | ||||
Common - basic and diluted (in shares) | 46.2 | 46.2 | 46.2 | 46.2 |
Net income (loss) per limited partner unit: | ||||
Common - basic and diluted (in dollars per share) | $ 0.40 | $ (0.30) | $ 0.66 | $ (3.08) |
Distribution to unitholders | $ 48,300,000 | |||
General Partner | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Distributions | $ 400,000 | $ 2,000,000 | 800,000 | $ 4,000,000 |
Allocation of distributions greater than earnings/loss | (100,000) | (800,000) | (200,000) | (4,100,000) |
Total partner (loss) earnings | 300,000 | 1,200,000 | 600,000 | (100,000) |
Limited partners' distributions | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Distributions | 18,500,000 | 27,500,000 | 37,000,000 | 55,000,000 |
Allocation of distributions greater than earnings/loss | 0 | (41,600,000) | (6,600,000) | (197,100,000) |
Total partner (loss) earnings | 18,500,000 | (14,100,000) | 30,400,000 | (142,100,000) |
Common units | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Limited partners' distributions on common units | 18,500,000 | 27,500,000 | 37,000,000 | 55,000,000 |
Incentive Distribution | General Partner | General Partner | ||||
Net income (loss) per limited partner unit: | ||||
Distribution to unitholders | $ 0 | $ 1,400,000 | $ 0 | $ 2,800,000 |
Cash Distributions and Net In32
Cash Distributions and Net Income Per Unit - Unit Activity (Details) | 6 Months Ended |
Jun. 30, 2018shares | |
Common units | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
At December 31, 2017 | 46,227,148 |
Common units acquired by SunCoke | 0 |
At June 30, 2018 | 46,227,148 |
Common units | Public | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
At December 31, 2017 | 17,958,420 |
Common units acquired by SunCoke | (231,171) |
At June 30, 2018 | 17,727,249 |
Common Units - Parent | SunCoke Energy Inc | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
At December 31, 2017 | 28,268,728 |
Common units acquired by SunCoke | 231,171 |
At June 30, 2018 | 28,499,899 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Coal | $ 49.2 | $ 41 |
Coke | 5.6 | 9.5 |
Materials, supplies, and other | 29.5 | 28.9 |
Total inventories | $ 84.3 | $ 79.4 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||||
Goodwill | $ 73.5 | $ 73.5 | $ 73.5 | ||
Total amortization expense | 2.6 | $ 5.2 | $ 2.6 | $ 5.2 | |
Permits | |||||
Goodwill [Line Items] | |||||
Useful lives (in years) | 24 years | ||||
Convent Marine Terminal | Permits | |||||
Goodwill [Line Items] | |||||
Useful lives (in years) | 27 years | ||||
Weighted average period before next renewal or extension | 2 years 10 months 24 days | ||||
Logistics | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 73.5 | $ 73.5 | $ 73.5 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets - Gross and Net Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 192.9 | $ 192.9 |
Accumulated Amortization | 31.9 | 26.7 |
Net | $ 161 | 166.2 |
Customer contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted - Average Remaining Amortization Years | 5 years | |
Gross Carrying Amount | $ 24 | 24 |
Accumulated Amortization | 9.3 | 7.8 |
Net | $ 14.7 | 16.2 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted - Average Remaining Amortization Years | 14 years | |
Gross Carrying Amount | $ 28.7 | 28.7 |
Accumulated Amortization | 6.6 | 5.7 |
Net | $ 22.1 | 23 |
Permits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted - Average Remaining Amortization Years | 24 years | |
Gross Carrying Amount | $ 139 | 139 |
Accumulated Amortization | 14.9 | 12.2 |
Net | $ 124.1 | 126.8 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted - Average Remaining Amortization Years | 1 year | |
Gross Carrying Amount | $ 1.2 | 1.2 |
Accumulated Amortization | 1.1 | 1 |
Net | $ 0.1 | $ 0.2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | $ 0.3 | $ (0.2) | $ 0.6 | $ 149 | |
Deferred income tax expense | $ 0.6 | $ 148.8 | |||
IRS | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred income tax expense | $ 148.6 |
Debt and Financing Obligation -
Debt and Financing Obligation - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total borrowings | $ 841.4 | $ 842.7 |
Original issue discount | (5.6) | (5.9) |
Debt issuance cost | (14.8) | (15.8) |
Total debt and financing obligation | 821 | 821 |
Less: current portion of long-term debt and financing obligation | 2.7 | 2.6 |
Total long-term debt and financing obligation | 818.3 | 818.4 |
7.500 percent senior notes, due 2025 (2025 Partnership Notes) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total borrowings | $ 700 | 700 |
Interest rate on partnership notes (as a percent) | 7.50% | |
Revolving credit facility, due 2022 (Partnership Revolver) | Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total borrowings | $ 130 | 130 |
5.82 percent financing obligation, due 2021 (Financing Obligation) | Financing Obligations | ||
Debt Instrument [Line Items] | ||
Total borrowings | $ 11.4 | $ 12.7 |
Interest rate on partnership notes (as a percent) | 5.82% |
Debt and Financing Obligation
Debt and Financing Obligation - Narrative (Details) | Jun. 30, 2020 | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||
Total borrowings | $ 841,400,000 | $ 842,700,000 | |
Revolving credit facility, due 2022 (Partnership Revolver) | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 285,000,000 | ||
Total borrowings | 130,000,000 | $ 130,000,000 | |
Remaining borrowing capacity | 153,100,000 | ||
Revolving credit facility, due 2019 (Partnership Revolver) | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | $ 1,900,000 | ||
Revolving credit facility, due 2019 (Partnership Revolver) | Line of Credit | Revolving Credit Facility | Forecast | |||
Debt Instrument [Line Items] | |||
Leverage ratio, maximum | 4 | ||
Credit Agreement and Partner Revolver | |||
Debt Instrument [Line Items] | |||
Leverage ratio, maximum | 4.5 | ||
Interest coverage ratio, minimum | 2.5 | ||
Cross default debt threshold | $ 35,000,000 |
Commitments and Contingent Li39
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | ||||
Cost of capital projects | $ 121 | |||
Haverhill Coke Company LLC and Middletown Coke Company LLC | IPO | ||||
Loss Contingencies [Line Items] | ||||
Environmental capital expenditures retained | 119 | |||
Haverhill and Granite City | ||||
Loss Contingencies [Line Items] | ||||
Payments for legal settlements | $ 2.2 | |||
Cost of capital projects | 7 | |||
Haverhill and Granite City | Suncoke Inc | ||||
Loss Contingencies [Line Items] | ||||
Environmental capital expenditures retained | $ 10 | |||
Haverhill and Granite City | ||||
Loss Contingencies [Line Items] | ||||
Environmental capital expenditures retained | $ 129 | |||
Haverhill and Granite City | Forecast | Suncoke Inc | ||||
Loss Contingencies [Line Items] | ||||
Environmental capital expenditures retained | $ 15 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Estimated fair value of the Partnership's long-term debt | $ 854 | $ 875 |
Carrying value of Partnership's long-term debt | 841.4 | 842.7 |
Fair Value, Inputs, Level 3 | Convent Marine Terminal | ||
Business Acquisition [Line Items] | ||
Business combination, contingent consideration | 3.1 | $ 2.5 |
Accrued Liabilities | Fair Value, Inputs, Level 3 | Convent Marine Terminal | ||
Business Acquisition [Line Items] | ||
Business combination, contingent consideration | 0.4 | |
Other Deferred Charges and Liabilities | Fair Value, Inputs, Level 3 | Convent Marine Terminal | ||
Business Acquisition [Line Items] | ||
Business combination, contingent consideration | $ 2.7 |
Revenue from Contracts with C41
Revenue from Contracts with Customers - Narrative (Details) T in Millions, $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)T | |
Cokemaking | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of facility capacity | 90.00% |
Expected term of agreement | 7 years |
Logistics | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected term of agreement | 6 years |
Capacity (in tons) | 15 |
Performance obligation amount | $ | $ 410 |
Logistics | Foresight and Murray | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Capacity (in tons) | 15 |
Logistics | Foresight and Murray | CMT | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Capacity (in tons) | 10 |
Revenue from Contracts with C42
Revenue from Contracts with Customers - Deferred Revenue (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Beginning balance at December 31, 2017 and 2016, respectively | $ 1.7 | $ 2.5 |
Reclassification of the beginning contract liabilities to revenue, as a result of performance obligation satisfied | (0.6) | (0.5) |
Billings in excess of services performed, not recognized as revenue | 2.1 | 10 |
Ending balance at June 30, 2018 and 2017, respectively | $ 3.2 | $ 12 |
Revenue from Contracts with C43
Revenue from Contracts with Customers - Disaggregated Sales and Other Operating Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | $ 228.6 | $ 200.6 | $ 443.4 | $ 396.2 |
AM USA | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 43.9 | 46.2 | 81 | 86.4 |
AK Steel | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 94.8 | 83.4 | 187.7 | 166.9 |
U.S. Steel | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 55.4 | 51.4 | 107.1 | 99.1 |
Foresight and Murray | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 17.4 | 8 | 31.5 | 19.5 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 17.1 | 11.6 | 36.1 | 24.3 |
Cokemaking | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 183.3 | 170.5 | 358.1 | 327.8 |
Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 13.1 | 11 | 26.7 | 24.6 |
Logistics | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | 30.6 | 16.3 | 55 | 38.2 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and other operating revenue | $ 1.6 | $ 2.8 | $ 3.6 | $ 5.6 |
Business Segment Disclosures -
Business Segment Disclosures - Revenues, Expenses and Assets by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenue | $ 228.6 | $ 200.6 | $ 443.4 | $ 396.2 |
Adjusted EBITDA | 55.5 | 43 | 105 | 94.7 |
Depreciation and amortization expense | 20.2 | 21.5 | 41.7 | 43.1 |
Capital expenditures | 18.4 | 5.7 | 29 | 9.9 |
Domestic Coke | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | 14.3 | 15.6 | 29 | 31.3 |
Capital expenditures | 17.4 | 5.2 | 27.7 | 8.8 |
Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | 5.9 | 5.9 | 12.7 | 11.8 |
Capital expenditures | 1 | 0.5 | 1.3 | 1.1 |
Operating Segments | Domestic Coke | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenue | 198 | 182 | 388 | 355.2 |
Adjusted EBITDA | 41 | 37.5 | 81.3 | 80 |
Operating Segments | Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenue | 30.6 | 18.6 | 55.4 | 41 |
Adjusted EBITDA | 19.2 | 9.6 | 32.6 | 22.6 |
Intersegment sales | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenue | (1.8) | (1.5) | (3.5) | (3.3) |
Intersegment sales | Logistics | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenue | 1.8 | 1.5 | 3.5 | 3.3 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ (4.7) | $ (4.1) | $ (8.9) | $ (7.9) |
Business Segment Disclosures 45
Business Segment Disclosures - Segment Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,657 | $ 1,641.4 |
Operating Segments | Domestic Coke | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,171.1 | 1,151.4 |
Operating Segments | Logistics | ||
Segment Reporting Information [Line Items] | ||
Total assets | 480.5 | 489.8 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 5.4 | $ 0.2 |
Business Segment Disclosures 46
Business Segment Disclosures - Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting [Abstract] | ||||
Net income (loss) | $ 19.4 | $ (12.5) | $ 32.1 | $ (144.2) |
Net cash provided by operating activities | 9.3 | 12.2 | 75.4 | 51.6 |
Add: | ||||
Depreciation and amortization expense | 20.2 | 21.5 | 41.7 | 43.1 |
Interest expense, net | 15 | 14 | 30 | 26.6 |
Loss on extinguishment of debt | 0 | 19.9 | 0 | 19.9 |
Income tax expense (benefit) | 0.3 | (0.2) | 0.6 | 149 |
Contingent consideration adjustments | 0.6 | 0.3 | 0.6 | 0.3 |
Cash interest paid | 27.9 | 14.6 | 29.9 | 35.5 |
Cash income tax paid | 1.2 | 0.3 | 2.5 | 0.6 |
Changes in working capital | 17.2 | 17.2 | (2.4) | 5.9 |
Other adjustments to reconcile cash provided by operating activities to Adjusted EBITDA | (0.7) | (1.6) | (1) | 0.8 |
Adjusted EBITDA | 55.5 | 43 | 105 | 94.7 |
Subtract: | ||||
Adjusted EBITDA attributable to noncontrolling interest | 0.8 | 0.8 | 1.6 | 1.6 |
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. | $ 54.7 | $ 42.2 | $ 103.4 | $ 93.1 |