Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019

	(Dollars in millions)
Sales and other operating revenue:
Domestic Coke	$	287.1	$	378.5	$	975.8	$	1,115.8
Brazil Coke	7.1		9.6		22.8		29.3
Logistics	8.0		16.2		24.3		58.0
Logistics intersegment sales	5.0		6.1		16.8		19.3
Elimination of intersegment sales	(5.0)		(6.1)		(16.8)		(19.3)
Total sales and other operating revenues	$	302.2	$	404.3	$	1,022.9	$	1,203.1

Adjusted EBITDA:
Domestic Coke	$	48.7	$	59.8	$	173.7	$	174.6
Brazil Coke	3.2		3.9		10.5		12.7
Logistics	4.3		9.6		10.6		34.1
Corporate and Other(1)	(8.4)		(6.6)		(25.9)		(24.3)
Total Adjusted EBITDA	$	47.8	$	66.7	$	168.9	$	197.1

Depreciation and amortization expense:
Domestic Coke	$	29.8	$	28.9	$	90.7	$	90.1
Brazil Coke	0.2		0.2		0.4		0.5
Logistics	3.2		6.1		9.6		18.2
Corporate and Other	0.3		0.4		1.0		1.0
Total depreciation and amortization expense	$	33.5	$	35.6	$	101.7	$	109.8

Capital expenditures:
Domestic Coke	$	12.5	$	28.0	$	44.8	$	78.4
Logistics	4.0		0.4		8.6		3.1

Total capital expenditures	$	16.5	$	28.4	$	53.4	$	81.5

(1)Corporate and Other includes activity from our legacy coal mining business, which contributed Adjusted EBITDA losses of $1.3 million and $5.8 million during the three and nine months ended September 30, 2020, respectively, as well as $2.0 million and $5.8 million during the three and nine months ended September 30, 2019, respectively. Additionally, Corporate and Other includes foundry related research and development costs of $0.9 million and $2.3 million during the three and nine months ended September 30, 2020, respectively.

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


	September 30, 2020		December 31, 2019

	(Dollars in millions)
Segment assets
Domestic Coke	$	1,352.8	$	1,434.2
Brazil Coke	14.4		14.6
Logistics	196.4		200.8
Corporate and Other	90.8		102.0
Segment assets, excluding tax assets	1,654.4		1,751.6
Tax assets	7.4		2.2
Total assets	$	1,661.8	$	1,753.8

Reconciliation of Adjusted EBITDA to Net Income

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(Dollars in millions)
Net (loss) income attributable to SunCoke Energy, Inc.	$	(2.7)	$	(163.0)	$	8.7	$	(150.9)
Add: Net income (loss) attributable to noncontrolling interests	1.3		(0.1)		3.6		3.3
Net (loss) income	$	(1.4)	$	(163.1)	$	12.3	$	(147.6)
Add:
Long-lived asset and goodwill impairment	—		247.4		—		247.4
Depreciation and amortization expense	33.5		35.6		101.7		109.8
Interest expense, net	13.7		15.7		43.2		45.6
Gain on extinguishment of debt	(0.5)		(1.5)		(3.4)		(1.5)
Income tax expense (benefit)	0.2		(63.5)		12.8		(57.3)
Contingent consideration adjustments(1)	—		(3.9)		—		(4.2)
Restructuring costs(2)	2.3		—		2.3		—
Simplification Transaction costs(3)	—		—		—		4.9
Adjusted EBITDA	$	47.8	$	66.7	$	168.9	$	197.1
Subtract: Adjusted EBITDA attributable to noncontrolling interests(4)	2.3		1.6		6.6		39.1
Adjusted EBITDA attributable to SunCoke Energy, Inc.	$	45.5	$	65.1	$	162.3	$	158.0

(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 half of 2019 were primarily the result of modifications to the volume forecast. This liability was written to zero during the third quarter of 2019, and the related contract was terminated in 2020.

(2)Charges related to a company-wide restructuring and cost-reduction initiative.

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

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