Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

The following table sets forth the income tax benefits which were eliminated from SunCoke Energy’s income tax balances (dollars in millions):



	Years Ended December 31,
	2012		2011
	(Dollars in millions)
Nonconventional fuel credit carryforward	$	39.9	$	54.2
Gasification investment tax credit carryforward	—		40.7
Federal net operating loss carryback	—		26.9
Federal, state and foreign net operating losses and tax credit carryforwards	45.9		22.0
Other	—		(0.4		)
Total	$	85.8	$	143.4

The components of income before income tax expense are as follows:

The components of income tax expense are as follows:



	Years Ended December 31,
	2013			2012			2011
	(Dollars in millions)
Income taxes currently payable (receivable):
U.S. federal	$	2.3		$	(15.7	)	$	(16.8	)
State	0.1			2.1			(3.2		)
Foreign	2.7			2.7			3.2
Total taxes currently payable (receivable)	5.1			(10.9		)	(16.8		)
Deferred tax (benefit):
U.S. federal	(6.3		)	36.9			20.0
State	7.9			(2.6		)	4.0
Total deferred tax	1.6			34.3			24.0
Total	$	6.7		$	23.4		$	7.2

The reconciliation of the income tax expense at the U.S. statutory rate to the income tax expense is as follows:



	Years Ended December 31,
	2013					2012					2011
	(Dollars in millions)
Income tax expense at 35 percent U.S. statutory rate	$	20.7		35.0	%	$	44.1		35.0	%	$	23.1		35.0	%
Increase (reduction) in income taxes resulting from:
Income attributable to noncontrolling interests⁽¹⁾	(8.8		)	(14.9	)%	(1.3		)	(1.0	)%	0.6			0.9	%
Nonconventional fuel credit	(9.5		)	(16.0	)%	(16.0		)	(12.8	)%	(19.8		)	(30.1	)%
State and other income taxes, net of federal income tax effects	3.2			5.4	%	(0.3		)	(0.2	)%	(0.8		)	(1.2	)%
Percentage depletion	—			—	%	(1.3		)	(1.0	)%	(0.2		)	(0.3	)%
Return-to-provision adjustments	(1.7		)	(2.9	)%	(1.7		)	(1.4	)%	(1.2		)	(1.8	)%
Change in valuation allowance	2.0			3.4	%	—			—	%	1.3			2.0	%
Impact of tax sharing agreement	0.7			1.2	%	—			—	%	—			—	%
Domestic production activity deduction	—			—	%	(0.8		)	(0.6	)%	4.2			6.4	%
Other	0.1			0.2	%	0.7			0.6	%	—			—	%
	$	6.7		11.4	%	$	23.4		18.6	%	$	7.2		10.9	%


(1)	No income tax expense is reflected in the Combined and Consolidated Statements of Income for partnership income attributable to noncontrolling interests.

The tax effects of temporary differences that comprise the net deferred income tax liability are as follows:



	December 31,
	2013			2012
	(Dollars in millions)
Deferred tax assets:
Retirement benefit liabilities	$	13.4		$	18.2
Black lung benefit liabilities	12.5			13.4
Share-based compensation	5.0			—
Federal tax credit carryforward	19.3			8.4
State tax credit carryforward, net of federal income tax effects	8.6			7.5
State net operating loss carryforward, net of federal income tax effects	5.3			2.0
Other liabilities not yet deductible	10.9			12.3
Other	—			6.2
Total deferred tax assets	75.0			68.0
Less valuation allowance	(3.3		)	(1.3		)
Deferred tax asset, net	71.7			66.7
Deferred tax liabilities:
Properties, plants and equipment	(141.1		)	(326.7		)
Investment in partnerships	(294.6		)	(98.9		)
Total deferred tax liabilities	(435.7		)	(425.6		)
Net deferred tax liability	$	(364.0	)	$	(358.9	)

The net deferred income tax liability was classified in the consolidated balance sheets as follows: