Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31,
	2020			2019
	(Dollars in millions)
Sales and other operating revenue:
Domestic Coke	$	365.2		$	359.3
Brazil Coke	8.5			9.7
Logistics	9.0			22.3
Logistics intersegment sales	6.6			6.5
Elimination of intersegment sales	(6.6		)	(6.5		)
Total sales and other operating revenues	$	382.7		$	391.3
Adjusted EBITDA:
Domestic Coke	$	63.4		$	58.5
Brazil Coke	4.1			4.5
Logistics	3.3			12.7
Corporate and Other(1)	(8.7		)	(8.4		)
Total Adjusted EBITDA	$	62.1		$	67.3
Depreciation and amortization expense:
Domestic Coke	$	30.5		$	30.6
Brazil Coke	0.1			0.2
Logistics	3.2			6.1
Corporate and Other	0.3			0.3
Total depreciation and amortization expense	$	34.1		$	37.2
Capital expenditures:
Domestic Coke	$	20.8		$	18.9
Logistics	2.0			2.0
Total capital expenditures	$	22.8		$	20.9

(1) Corporate and Other includes the activity from our legacy coal mining business, which contributed Adjusted EBITDA losses of $2.1 million and $1.8 million during the three months ended March 31, 2020 and 2019, respectively.

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

	March 31, 2020		December 31, 2019
	(Dollars in millions)
Segment assets
Domestic Coke	$	1,417.1	$	1,434.2
Brazil Coke	14.5		14.6
Logistics	198.5		200.8
Corporate and Other	242.0		102.0
Segment assets, excluding tax assets	1,872.1		1,751.6
Tax assets	3.8		2.2
Total assets	$	1,875.9	$	1,753.8

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 March 31,
	2020			2019
	(Dollars in millions)
Net income attributable to SunCoke Energy, Inc.	$	4.9		$	9.8
Add: Net income attributable to noncontrolling interests	1.0			2.4
Net income	$	5.9		$	12.2
Add:
Depreciation and amortization expense	34.1			37.2
Interest expense, net	14.6			14.8
Gain on extinguishment of debt	(2.9		)	—
Income tax expense	10.4			3.0
Contingent consideration adjustments(1)	—			(0.4		)
Simplification Transaction costs(2)	—			0.5
Adjusted EBITDA	$	62.1		$	67.3
Subtract: Adjusted EBITDA attributable to noncontrolling interests(3)	2.0			18.9
Adjusted EBITDA attributable to SunCoke Energy, Inc.	$	60.1		$	48.4

(1) In connection with the CMT acquisition, the Company entered into a contingent consideration arrangement that required the Company to make future payments to the seller based on future volume over a specified threshold, price and contract renewals. Contingent consideration adjustments in the first quarter of 2019 were primarily the result of modifications to the volume forecast. This liability was written to zero during the third quarter of 2019.

(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 Simplification Transaction.