Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Business Segment Information

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in millions)
Sales and other operating revenue:
Domestic Coke	$	378.0		$	328.7		$	737.3		$	646.8
Brazil Coke	10.0			10.2			19.7			20.3
Logistics	19.5			28.1			41.8			50.4
Logistics intersegment sales	6.7			5.5			13.2			10.9
Elimination of intersegment sales	(6.7		)	(5.5		)	(13.2		)	(10.9		)
Total sales and other operating revenues	$	407.5		$	367.0		$	798.8		$	717.5
Adjusted EBITDA:
Domestic Coke	$	56.3		$	52.9		$	114.8		$	107.2
Brazil Coke	4.3			4.8			8.8			9.5
Logistics	11.8			19.7			24.5			33.3
Corporate and Other(1)	(9.3		)	(10.1		)	(17.7		)	(18.7		)
Total Adjusted EBITDA	$	63.1		$	67.3		$	130.4		$	131.3
Depreciation and amortization expense:
Domestic Coke	$	30.6		$	25.5		$	61.2		$	50.8
Brazil Coke	0.1			0.1			0.3			0.3
Logistics	6.0			6.0			12.1			13.0
Corporate and Other	0.3			0.4			0.6			0.8
Total depreciation and amortization expense	$	37.0		$	32.0		$	74.2		$	64.9
Capital expenditures:
Domestic Coke	$	31.5		$	26.8		$	50.4		$	41.9
Logistics	0.7			1.3			2.7			1.6
Corporate and Other	—			0.1			—			0.1
Total capital expenditures	$	32.2		$	28.2		$	53.1		$	43.6

(1) Corporate and Other includes the activity from our legacy coal mining business, which contributed Adjusted EBITDA losses of $2.0 million and $3.8 million during the three and six months ended June 30, 2019, respectively, as well as $2.4 million and $4.7 million during the three and six months ended June 30, 2018, respectively.

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

	June 30, 2019		December 31, 2018
	(Dollars in millions)
Segment assets
Domestic Coke	$	1,505.5	$	1,446.5
Brazil Coke	15.4		15.1
Logistics	468.3		463.0
Corporate and Other	90.0		120.0
Segment assets, excluding tax assets	2,079.2		2,044.6
Tax assets	3.2		0.7
Total assets	$	2,082.4	$	2,045.3

Reconciliation of Adjusted EBITDA to Net Income

Below is a reconciliation of Adjusted EBITDA to net income, which is its most directly comparable financial measure calculated and presented in accordance with GAAP:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019			2018
	(Dollars in millions)
Net income	$	3.3	$	11.4	$	15.5		$	24.4
Add:
Depreciation and amortization expense	$	37.0	$	32.0	$	74.2		$	64.9
Interest expense, net	15.1		15.7		29.9			31.5
Loss on extinguishment of debt	—		—		—			0.3
Income tax expense	3.2		2.2		6.2			4.2
Contingent consideration adjustments(1)	0.1		0.6		(0.3		)	0.6
Loss from equity method investment	—		5.4		—			5.4
Simplification Transaction costs(2)	4.4		—		4.9			—
Adjusted EBITDA	$	63.1	$	67.3	$	130.4		$	131.3
Subtract: Adjusted EBITDA attributable to noncontrolling interests(3)	18.6		21.6		37.5			40.6
Adjusted EBITDA attributable to SunCoke Energy, Inc.	$	44.5	$	45.7	$	92.9		$	90.7

(1) See Note 12.

(2) Costs expensed by the Partnership associated with the Simplification Transaction.

(3)

Reflects noncontrolling interest in Indiana Harbor and the portion of the Partnership owned by public unitholders prior to the closing of the Simplification Transaction.