ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 90-0640593 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars and shares in millions, except per share amounts) | ||||||||
Revenues | ||||||||
Sales and other operating revenue | $ | 310.5 | $ | 323.9 | ||||
Other income | 0.6 | 0.1 | ||||||
Total revenues | 311.1 | 324.0 | ||||||
Costs and operating expenses | ||||||||
Cost of products sold and operating expenses | 239.0 | 262.1 | ||||||
Selling, general and administrative expenses | 23.7 | 12.6 | ||||||
Depreciation and amortization expense | 28.2 | 23.8 | ||||||
Asset impairment | 10.7 | — | ||||||
Total costs and operating expenses | 301.6 | 298.5 | ||||||
Operating income | 9.5 | 25.5 | ||||||
Interest expense, net | 14.0 | 13.9 | ||||||
(Gain) loss on extinguishment of debt | (20.4 | ) | 9.4 | |||||
Income before income tax expense and loss from equity method investment | 15.9 | 2.2 | ||||||
Income tax expense | 3.3 | 1.1 | ||||||
Loss from equity method investment | — | 0.7 | ||||||
Net income | 12.6 | 0.4 | ||||||
Less: Net income attributable to noncontrolling interests | 16.7 | 4.4 | ||||||
Net loss attributable to SunCoke Energy, Inc. | $ | (4.1 | ) | $ | (4.0 | ) | ||
Loss attributable to SunCoke Energy, Inc. per common share: | ||||||||
Basic | $ | (0.06 | ) | $ | (0.06 | ) | ||
Diluted | $ | (0.06 | ) | $ | (0.06 | ) | ||
Weighted average number of common shares outstanding: | ||||||||
Basic | 64.1 | 66.2 | ||||||
Diluted | 64.1 | 66.2 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Net income | $ | 12.6 | $ | 0.4 | ||||
Other comprehensive income (loss): | ||||||||
Reclassifications of prior service benefit, actuarial loss amortization and curtailment gain to earnings (net of related tax expense of $1.6 million for the three months ended March 31, 2015) | — | (2.4 | ) | |||||
Currency translation adjustment | 0.4 | (1.1 | ) | |||||
Comprehensive income (loss) | 13.0 | (3.1 | ) | |||||
Less: Comprehensive income attributable to noncontrolling interests | 16.7 | 4.4 | ||||||
Comprehensive loss attributable to SunCoke Energy, Inc. | $ | (3.7 | ) | $ | (7.5 | ) |
March 31, 2016 | December 31, 2015 | |||||||
(Unaudited) | ||||||||
(Dollars in millions, except par value amounts) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 101.8 | $ | 123.4 | ||||
Receivables | 71.6 | 64.6 | ||||||
Inventories | 107.7 | 121.8 | ||||||
Income tax receivable | 12.2 | 11.6 | ||||||
Other current assets | 8.7 | 3.9 | ||||||
Assets held for sale | 0.8 | 0.9 | ||||||
Total current assets | 302.8 | 326.2 | ||||||
Restricted cash | 10.3 | 18.2 | ||||||
Investment in Brazilian cokemaking operations | 41.0 | 41.0 | ||||||
Properties, plants and equipment (net of accumulated depreciation of $685.9 million and $656.4 million at March 31, 2016 and December 31, 2015, respectively) | 1,567.6 | 1,582.0 | ||||||
Goodwill | 70.5 | 71.1 | ||||||
Other intangible assets, net | 187.5 | 190.2 | ||||||
Deferred charges and other assets | 10.1 | 15.4 | ||||||
Long-term assets held for sale | — | 11.4 | ||||||
Total assets | $ | 2,189.8 | $ | 2,255.5 | ||||
Liabilities and Equity | ||||||||
Accounts payable | $ | 89.6 | $ | 99.8 | ||||
Accrued liabilities | 55.4 | 45.0 | ||||||
Current portion of long-term debt | 1.1 | 1.1 | ||||||
Interest payable | 7.3 | 18.9 | ||||||
Liabilities held for sale | 6.7 | 0.9 | ||||||
Total current liabilities | 160.1 | 165.7 | ||||||
Long-term debt | 944.8 | 997.7 | ||||||
Accrual for black lung benefits | 44.9 | 44.7 | ||||||
Retirement benefit liabilities | 30.7 | 31.3 | ||||||
Deferred income taxes | 352.4 | 349.0 | ||||||
Asset retirement obligations | 13.6 | 16.3 | ||||||
Other deferred credits and liabilities | 18.6 | 22.1 | ||||||
Long-term liabilities held for sale | — | 5.9 | ||||||
Total liabilities | 1,565.1 | 1,632.7 | ||||||
Equity | ||||||||
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no issued shares at March 31, 2016 and December 31, 2015 | — | — | ||||||
Common stock, $0.01 par value. Authorized 300,000,000 shares; issued 71,637,745 and 71,489,448 shares at March 31, 2016 and December 31, 2015, respectively | 0.7 | 0.7 | ||||||
Treasury stock, 7,477,657 shares at March 31, 2016 and December 31, 2015, respectively | (140.7 | ) | (140.7 | ) | ||||
Additional paid-in capital | 487.3 | 486.1 | ||||||
Accumulated other comprehensive loss | (19.4 | ) | (19.8 | ) | ||||
Retained deficit | (40.5 | ) | (36.4 | ) | ||||
Total SunCoke Energy, Inc. stockholders’ equity | 287.4 | 289.9 | ||||||
Noncontrolling interests | 337.3 | 332.9 | ||||||
Total equity | 624.7 | 622.8 | ||||||
Total liabilities and equity | $ | 2,189.8 | $ | 2,255.5 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 12.6 | $ | 0.4 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Asset impairment | 10.7 | — | ||||||
Depreciation and amortization expense | 28.2 | 23.8 | ||||||
Deferred income tax expense | 3.2 | 3.1 | ||||||
Gain on curtailment and payments in excess of expense for postretirement plan benefits | (0.6 | ) | (4.7 | ) | ||||
Share-based compensation expense | 1.7 | 1.5 | ||||||
Loss from equity method investment | — | 0.7 | ||||||
(Gain) loss on extinguishment of debt | (20.4 | ) | 9.4 | |||||
Changes in working capital pertaining to operating activities (net of changes in held for sale working capital): | ||||||||
Receivables | (7.0 | ) | 16.7 | |||||
Inventories | 14.2 | 11.5 | ||||||
Accounts payable | (5.8 | ) | (13.5 | ) | ||||
Accrued liabilities | 9.4 | (16.7 | ) | |||||
Interest payable | (11.6 | ) | (11.2 | ) | ||||
Income taxes | (0.6 | ) | (2.8 | ) | ||||
Other | (4.6 | ) | (7.1 | ) | ||||
Net cash provided by operating activities | 29.4 | 11.1 | ||||||
Cash Flows from Investing Activities: | ||||||||
Capital expenditures | (13.8 | ) | (8.3 | ) | ||||
Decrease in restricted cash | 7.9 | — | ||||||
Other investing activities | 0.6 | — | ||||||
Net cash used in investing activities | (5.3 | ) | (8.3 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from issuance of long-term debt | — | 210.8 | ||||||
Repayment of long-term debt | (32.9 | ) | (149.5 | ) | ||||
Debt issuance costs | — | (4.2 | ) | |||||
Proceeds from revolving facility | 20.0 | — | ||||||
Repayment of revolving facility | (20.0 | ) | — | |||||
Cash distribution to noncontrolling interests | (12.3 | ) | (9.1 | ) | ||||
Shares repurchased | — | (20.0 | ) | |||||
Proceeds from exercise of stock options, net of shares withheld for taxes | (0.5 | ) | (0.5 | ) | ||||
Dividends paid | — | (3.9 | ) | |||||
Net cash (used in) provided by financing activities | (45.7 | ) | 23.6 | |||||
Net (decrease) increase in cash and cash equivalents | (21.6 | ) | 26.4 | |||||
Cash and cash equivalents at beginning of period | 123.4 | 139.0 | ||||||
Cash and cash equivalents at end of period | $ | 101.8 | $ | 165.4 | ||||
Supplemental Disclosure of Cash Flow Information | ||||||||
Interest paid | $ | 26.4 | $ | 25.0 |
Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total SunCoke Energy, Inc. Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||
At December 31, 2015 | 71,489,448 | $ | 0.7 | 7,477,657 | $ | (140.7 | ) | $ | 486.1 | $ | (19.8 | ) | $ | (36.4 | ) | $ | 289.9 | $ | 332.9 | $ | 622.8 | ||||||||||||||||
Net (loss) income | — | — | — | — | — | — | (4.1 | ) | (4.1 | ) | 16.7 | 12.6 | |||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | — | 0.4 | — | 0.4 | — | 0.4 | |||||||||||||||||||||||||||
Cash distribution to noncontrolling interests | — | — | — | — | — | — | — | — | (12.3 | ) | (12.3 | ) | |||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 1.7 | — | — | 1.7 | — | 1.7 | |||||||||||||||||||||||||||
Share issuances, net of shares withheld for taxes | 148,297 | — | — | — | (0.5 | ) | — | — | (0.5 | ) | — | (0.5 | ) | ||||||||||||||||||||||||
At March 31, 2016 | 71,637,745 | $ | 0.7 | 7,477,657 | $ | (140.7 | ) | $ | 487.3 | $ | (19.4 | ) | $ | (40.5 | ) | $ | 287.4 | $ | 337.3 | $ | 624.7 |
March 31, 2016 | December 31, 2015 | ||||||
(Dollars in millions) | |||||||
Assets | |||||||
Receivables | $ | 0.6 | $ | 0.6 | |||
Inventories | 0.2 | 0.3 | |||||
Properties, plants and equipment, net | 10.7 | — | |||||
Valuation allowance | (10.7 | ) | — | ||||
Total current assets held for sale | 0.8 | 0.9 | |||||
Properties, plants and equipment, net | — | 11.4 | |||||
Total assets held for sale | $ | 0.8 | $ | 12.3 | |||
Liabilities | |||||||
Accounts payable | $ | 0.1 | $ | 0.1 | |||
Accrued liabilities | 0.7 | 0.8 | |||||
Asset retirement obligations | 5.9 | — | |||||
Total current liabilities held for sale | 6.7 | 0.9 | |||||
Asset retirement obligations | — | 5.9 | |||||
Total liabilities held for sale | $ | 6.7 | $ | 6.8 |
March 31, 2016 | December 31, 2015 | |||||||
(Dollars in millions) | ||||||||
Coal | $ | 64.5 | $ | 76.5 | ||||
Coke | 6.7 | 8.8 | ||||||
Materials, supplies and other | 36.5 | 36.5 | ||||||
Total inventories | $ | 107.7 | $ | 121.8 |
Domestic Coke | Coal Logistics | Total | |||||||||
(Dollars in millions) | |||||||||||
Net balance at December 31, 2015 | $ | 3.4 | $ | 67.7 | $ | 71.1 | |||||
Adjustments(1) | — | (0.6 | ) | (0.6 | ) | ||||||
Net balance at March 31, 2016 | $ | 3.4 | $ | 67.1 | $ | 70.5 |
(1) | In the first quarter of 2016, a working capital adjustment to the acquisition date fair value of the acquired net assets decreased the amount of the purchase price allocated to goodwill by $0.6 million. |
March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||
Weighted - Average Remaining Amortization Years | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Customer contracts | 6 | $ | 31.7 | $ | 7.0 | $ | 24.7 | $ | 31.7 | $ | 6.1 | $ | 25.6 | ||||||||||||
Customer relationships | 14 | 28.7 | 2.3 | 26.4 | 28.7 | 1.8 | 26.9 | ||||||||||||||||||
Permits | 26 | 139.0 | 3.2 | 135.8 | 139.0 | 1.9 | 137.1 | ||||||||||||||||||
Trade name | 3 | 1.2 | 0.6 | 0.6 | 1.2 | 0.6 | 0.6 | ||||||||||||||||||
Total | $ | 200.6 | $ | 13.1 | $ | 187.5 | $ | 200.6 | $ | 10.4 | $ | 190.2 |
Amount | |||
(Dollars in millions) | |||
2016(1) | $ | 8.4 | |
2017 | 11.1 | ||
2018 | 11.1 | ||
2019 | 10.9 | ||
2020 | 10.7 | ||
2021-Thereafter | 135.3 | ||
Total | $ | 187.5 | |
March 31, 2016 | December 31, 2015 | |||||||
(Dollars in millions) | ||||||||
Accrued benefits | $ | 17.1 | $ | 20.3 | ||||
Other taxes payable | 10.5 | 8.4 | ||||||
Accrued severance | 3.0 | 4.7 | ||||||
Deferred revenue | 11.3 | 2.1 | ||||||
Current portion of black lung liability | 5.2 | 5.2 | ||||||
Other | 8.3 | 4.3 | ||||||
Total accrued liabilities | $ | 55.4 | $ | 45.0 |
March 31, 2016 | December 31, 2015 | |||||||
(Dollars in millions) | ||||||||
7.625% senior notes, due 2019 ("Notes") | $ | 44.6 | $ | 44.6 | ||||
SunCoke's revolving credit facility, due 2019 ("Revolving Facility") | 60.4 | 60.4 | ||||||
7.375% senior notes, due 2020 (“Partnership Notes”) | 499.7 | 552.5 | ||||||
Partnership's revolving credit facility, due 2019 ("Partnership Revolver") | 182.0 | 182.0 | ||||||
Partnership's promissory note payable, due 2021 ("Promissory Note") | 114.0 | 114.3 | ||||||
Partnership's term loan, due 2019 ("Partnership Term Loan") | 50.0 | 50.0 | ||||||
Total borrowings | $ | 950.7 | $ | 1,003.8 | ||||
Original issue premium | 10.2 | 12.1 | ||||||
Debt issuance costs | (15.0 | ) | (17.1 | ) | ||||
Total debt | 945.9 | 998.8 | ||||||
Less: current portion of long-term debt | 1.1 | 1.1 | ||||||
Total long-term debt | $ | 944.8 | $ | 997.7 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Interest cost on benefit obligations | $ | 0.3 | $ | 0.3 | ||||
Amortization of: | ||||||||
Actuarial losses | 0.2 | 0.2 | ||||||
Prior service benefit | (0.2 | ) | (0.4 | ) | ||||
Curtailment gain | — | (4.0 | ) | |||||
Total expense (benefit) | $ | 0.3 | $ | (3.9 | ) |
Coal Mining | Corporate | Total | |||||||||
(Dollars in millions) | |||||||||||
Balance at December 31, 2015 | $ | 0.8 | $ | 3.9 | $ | 4.7 | |||||
Charges | 0.2 | — | 0.2 | ||||||||
Cash payments | (0.4 | ) | (1.5 | ) | (1.9 | ) | |||||
Balance at March 31, 2016 | $ | 0.6 | $ | 2.4 | $ | 3.0 |
Weighted Average Per Share | ||||||||||
No. of Shares | Exercise Price | Grant Date Fair Value | ||||||||
Stock options: | ||||||||||
February grants | 95,001 | $ | 3.80 | $ | 1.71 | |||||
March grants | 90,925 | $ | 6.03 | $ | 2.78 | |||||
Performance based options: | ||||||||||
February grants | 58,448 | $ | 3.80 | $ | 1.06 | |||||
March grants | 90,925 | $ | 6.03 | $ | 2.42 |
Three Months Ended March 31, 2016 | |||
Risk-free interest rate | 1.25 | % | |
Expected term | 5 years | ||
Volatility | 52 | % | |
Dividend yield | 0.0 | % |
ROIC Portion(1) | TSR Portion(2) | Total | |||||||||||||||
Shares | Fair Value per Share | Shares | Fair Value per Share | Grant Date Fair Value | |||||||||||||
(Dollars in millions) | |||||||||||||||||
February grants | 105,210 | $ | 5.66 | 105,210 | $ | 5.81 | $ | 1.2 | |||||||||
March grants(3) | 67,167 | $ | 10.51 | 201,500 | $ | 6.35 | $ | 2.0 |
Three Months Ended March 31, | ||||||
2016 | 2015 | |||||
(Shares in millions) | ||||||
Weighted-average number of common shares outstanding-basic | 64.1 | 66.2 | ||||
Add: Effect of dilutive share-based compensation awards | — | — | ||||
Weighted-average number of shares-diluted | 64.1 | 66.2 |
Three Months Ended March 31, | ||||||
2016 | 2015 | |||||
(Shares in millions) | ||||||
Stock options | 3.0 | 2.3 | ||||
Restricted stock units | 0.4 | 0.5 | ||||
Performance stock units | 0.2 | 0.1 | ||||
Total | 3.6 | 2.9 |
Defined and Postretirement Benefit Plans | Currency Translation Adjustments | Total | |||||||||
(Dollars in millions) | |||||||||||
At December 31, 2015 | $ | (4.6 | ) | $ | (15.2 | ) | $ | (19.8 | ) | ||
Other comprehensive income before reclassifications | — | 0.4 | 0.4 | ||||||||
Net current period other comprehensive income | — | 0.4 | 0.4 | ||||||||
At March 31, 2016 | $ | (4.6 | ) | $ | (14.8 | ) | $ | (19.4 | ) |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(Dollars in millions) | |||||||
Amortization of postretirement and defined benefit plan items to net income: | |||||||
Actuarial loss(2) (3) | $ | 0.2 | $ | 0.4 | |||
Prior service benefit(2) | (0.2 | ) | (0.4 | ) | |||
Curtailment gain(2) | — | (4.0 | ) | ||||
Total income before taxes | — | (4.0 | ) | ||||
Less income tax expense | — | 1.6 | |||||
Total income, net of tax | $ | — | $ | (2.4 | ) |
(1) | Amounts in parentheses indicate credits to net income. |
(2) | These accumulated other comprehensive (income) loss components are included in the computation of postretirement benefit plan expense (benefit) and defined benefit plan expense. See Note 9. |
(3) | The Three months ended March 31, 2015 includes $0.2 million of amortization of actuarial losses related to the Company's defined benefit plan, which was terminated in the second quarter of 2015. |
• | 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. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Sales and other operating revenue: | ||||||||
Domestic Coke | $ | 289.0 | $ | 303.1 | ||||
Brazil Coke | 7.7 | 9.9 | ||||||
Coal Logistics | 13.0 | 7.3 | ||||||
Coal Logistics intersegment sales | 5.2 | 4.7 | ||||||
Coal Mining | 0.8 | 3.6 | ||||||
Coal Mining intersegment sales | 21.3 | 24.2 | ||||||
Elimination of intersegment sales | (26.5 | ) | (28.9 | ) | ||||
Total sales and other operating revenue | $ | 310.5 | $ | 323.9 | ||||
Adjusted EBITDA: | ||||||||
Domestic Coke | $ | 54.3 | $ | 52.7 | ||||
Brazil Coke | 2.3 | 4.1 | ||||||
Coal Logistics | 15.1 | 2.6 | ||||||
Coal Mining | (4.1 | ) | (3.1 | ) | ||||
Corporate and Other, including legacy costs, net(1) | (14.6 | ) | $ | (8.4 | ) | |||
Total Adjusted EBITDA | $ | 53.0 | $ | 47.9 | ||||
Depreciation and amortization expense: | ||||||||
Domestic Coke(2) | $ | 20.3 | $ | 18.2 | ||||
Brazil Coke | 0.2 | 0.2 | ||||||
Coal Logistics | 5.4 | 1.8 | ||||||
Coal Mining(3) | 1.5 | 2.8 | ||||||
Corporate and Other | 0.8 | 0.8 | ||||||
Total depreciation and amortization expense | $ | 28.2 | $ | 23.8 | ||||
Capital expenditures: | ||||||||
Domestic Coke | $ | 10.0 | $ | 8.0 | ||||
Coal Logistics | 3.4 | 0.2 | ||||||
Corporate and Other | 0.4 | 0.1 | ||||||
Total capital expenditures | $ | 13.8 | $ | 8.3 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Black lung charges | $ | (1.7 | ) | $ | (0.9 | ) | ||
Postretirement benefit plan (expense) benefit | (0.2 | ) | 3.9 | |||||
Defined benefit plan expense | — | (0.2 | ) | |||||
Workers' compensation expense | (0.3 | ) | (0.9 | ) | ||||
Total legacy (costs) income, net | $ | (2.2 | ) | $ | 1.9 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Sales and other operating revenue: | ||||||||
Coke sales | $ | 273.3 | $ | 286.4 | ||||
Steam and electricity sales | 14.9 | 16.6 | ||||||
Operating and licensing fees | 7.7 | 9.9 | ||||||
Coal logistics | 12.6 | 7.1 | ||||||
Metallurgical coal sales | 0.4 | 2.7 | ||||||
Other | 1.6 | 1.2 | ||||||
Sales and other operating revenue | $ | 310.5 | $ | 323.9 |
March 31, 2016 | December 31, 2015 | |||||||
(Dollars in millions) | ||||||||
Segment assets | ||||||||
Domestic Coke | $ | 1,502.7 | $ | 1,534.2 | ||||
Brazil Coke | 59.8 | 58.8 | ||||||
Coal Logistics | 529.0 | 532.0 | ||||||
Coal Mining(1) | 6.5 | 8.2 | ||||||
Corporate and Other | 78.8 | 98.4 | ||||||
Segment assets, excluding tax assets and assets held for sale | 2,176.8 | 2,231.6 | ||||||
Tax assets | 12.2 | 11.6 | ||||||
Assets held for sale | 0.8 | 12.3 | ||||||
Total assets | $ | 2,189.8 | $ | 2,255.5 |
• | 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 requirement 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. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Adjusted EBITDA attributable to SunCoke Energy, Inc. | $ | 28.7 | $ | 29.8 | ||||
Add: Adjusted EBITDA attributable to noncontrolling interests(1) | 24.3 | 18.1 | ||||||
Adjusted EBITDA | $ | 53.0 | $ | 47.9 | ||||
Subtract: | ||||||||
Adjustment to unconsolidated affiliate earnings(2) | $ | — | $ | 0.3 | ||||
Coal rationalization income, net(3) | (0.9 | ) | (1.0 | ) | ||||
Depreciation and amortization expense | 28.2 | 23.8 | ||||||
Interest expense, net | 14.0 | 13.9 | ||||||
(Gain) loss on extinguishment of debt | (20.4 | ) | 9.4 | |||||
Income tax expense | 3.3 | 1.1 | ||||||
Asset impairment | 10.7 | — | ||||||
Coal Logistics deferred revenue(4) | 9.2 | — | ||||||
Reduction of contingent consideration(5) | (3.7 | ) | — | |||||
Net income | $ | 12.6 | $ | 0.4 | ||||
Add: | ||||||||
Asset impairment | $ | 10.7 | $ | — | ||||
Depreciation and amortization expense | 28.2 | 23.8 | ||||||
Deferred income tax expense | 3.2 | 3.1 | ||||||
(Gain) loss on extinguishment of debt | (20.4 | ) | 9.4 | |||||
Changes in working capital and other | (4.9 | ) | (25.6 | ) | ||||
Net cash provided by operating activities | $ | 29.4 | $ | 11.1 |
(1) | Reflects noncontrolling interest in Indiana Harbor and the portion of the Partnership owned by public unitholders. |
(2) | Reflects share of interest, taxes, depreciation and amortization related to our equity method investment in VISA SunCoke. |
(3) | Coal rationalization income, net includes employee severance, contract termination costs, costs incurred to divest our coal mining business and other costs to idle mines incurred during the execution of our coal rationalization plan. The first quarter of 2016 includes a gain of $1.5 million on the divestiture of certain coal mining permits and related reclamation obligations. See Note 2. Additionally, the first quarter of 2015 included $2.2 million of income related to an adjustment in the coal severance accrual. |
(4) | Coal Logistics deferred revenue adjusts for coal and liquid tons the Partnership did not handle, but are included in Adjusted EBITDA as the associated take-or-pay fees are billed to the customer. Deferred revenue on take-or-pay contracts is recognized into GAAP income annually based on the terms of the contract. |
(5) | The Partnership amended its contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability from $7.9 million at December 31, 2015 to $4.2 million at March 31, 2016, resulting in a $3.7 million gain, which was excluded from Adjusted EBITDA. |
• | a sale or other disposition of the Guarantor Subsidiary or of all or substantially all of its assets; |
• | a sale of the majority of the Capital Stock of a Guarantor Subsidiary to a third-party, after which the Guarantor Subsidiary is no longer a "Restricted Subsidiary" in accordance with the indenture governing the Notes; |
• | the liquidation or dissolution of a Guarantor Subsidiary so long as no "Default" or "Event of Default", as defined under the indenture governing the Notes, has occurred as a result thereof; |
• | the designation of a Guarantor Subsidiary as an "unrestricted subsidiary" in accordance with the indenture governing the Notes; |
• | the requirements for defeasance or discharge of the indentures governing the Notes having been satisfied; and |
• | the release, other than the discharge through payments by a Guarantor Subsidiary, from its guarantee under the Credit Agreement or other indebtedness that resulted in the obligation of the Guarantor Subsidiary under the indenture governing the Notes. |
Issuer | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | ||||||||||||||||
Revenues | ||||||||||||||||||||
Sales and other operating revenue | $ | — | $ | 42.6 | $ | 268.9 | $ | (1.0 | ) | $ | 310.5 | |||||||||
Equity in earnings (loss) of subsidiaries | 0.7 | 11.3 | — | (12.0 | ) | — | ||||||||||||||
Other income | — | 0.1 | 0.5 | — | 0.6 | |||||||||||||||
Total revenues | 0.7 | 54.0 | 269.4 | (13.0 | ) | 311.1 | ||||||||||||||
Costs and operating expenses | ||||||||||||||||||||
Cost of products sold and operating expense | — | 33.9 | 206.1 | (1.0 | ) | 239.0 | ||||||||||||||
Selling, general and administrative expense | 3.0 | 8.9 | 11.8 | — | 23.7 | |||||||||||||||
Depreciation and amortization expense | — | 2.2 | 26.0 | — | 28.2 | |||||||||||||||
Asset impairment | — | — | 10.7 | — | 10.7 | |||||||||||||||
Total costs and operating expenses | 3.0 | 45.0 | 254.6 | (1.0 | ) | 301.6 | ||||||||||||||
Operating (loss) income | (2.3 | ) | 9.0 | 14.8 | (12.0 | ) | 9.5 | |||||||||||||
Interest (income) expense, net - affiliate | — | (2.0 | ) | 2.0 | — | — | ||||||||||||||
Interest expense, net | 1.5 | — | 12.5 | — | 14.0 | |||||||||||||||
Total interest expense (income), net | 1.5 | (2.0 | ) | 14.5 | — | 14.0 | ||||||||||||||
Gain on extinguishment of debt | — | — | (20.4 | ) | — | (20.4 | ) | |||||||||||||
(Loss) Income before income tax expense | (3.8 | ) | 11.0 | 20.7 | (12.0 | ) | 15.9 | |||||||||||||
Income tax expense (benefit) | 0.3 | 6.1 | (3.1 | ) | — | 3.3 | ||||||||||||||
Net (loss) income | (4.1 | ) | 4.9 | 23.8 | (12.0 | ) | 12.6 | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 16.7 | — | 16.7 | |||||||||||||||
Net (loss) income attributable to SunCoke Energy, Inc. | $ | (4.1 | ) | $ | 4.9 | $ | 7.1 | $ | (12.0 | ) | $ | (4.1 | ) | |||||||
Comprehensive (loss) income | $ | (3.7 | ) | $ | 4.9 | $ | 24.2 | $ | (12.4 | ) | $ | 13.0 | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | 16.7 | — | 16.7 | |||||||||||||||
Comprehensive (loss) income attributable to SunCoke Energy, Inc. | $ | (3.7 | ) | $ | 4.9 | $ | 7.5 | $ | (12.4 | ) | $ | (3.7 | ) |
Issuer | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | ||||||||||||||||
Revenues | ||||||||||||||||||||
Sales and other operating revenue | $ | — | $ | 41.0 | $ | 282.9 | $ | — | $ | 323.9 | ||||||||||
Equity in earnings (loss) of subsidiaries | — | 3.4 | — | (3.4 | ) | — | ||||||||||||||
Other income | — | 0.1 | — | — | 0.1 | |||||||||||||||
Total revenues | — | 44.5 | 282.9 | (3.4 | ) | 324.0 | ||||||||||||||
Costs and operating expenses | ||||||||||||||||||||
Cost of products sold and operating expenses | — | 30.4 | 231.7 | — | 262.1 | |||||||||||||||
Selling, general and administrative expenses | 2.0 | 7.6 | 3.0 | — | 12.6 | |||||||||||||||
Depreciation and amortization expense | — | 2.1 | 21.7 | — | 23.8 | |||||||||||||||
Total costs and operating expenses | 2.0 | 40.1 | 256.4 | — | 298.5 | |||||||||||||||
Operating (loss) income | (2.0 | ) | 4.4 | 26.5 | (3.4 | ) | 25.5 | |||||||||||||
Interest (income) expense, net - affiliate | — | (1.8 | ) | 1.8 | — | — | ||||||||||||||
Interest expense (income), net | 2.8 | (0.3 | ) | 11.4 | — | 13.9 | ||||||||||||||
Total interest expense (income), net | 2.8 | (2.1 | ) | 13.2 | — | 13.9 | ||||||||||||||
Loss on extinguishment of debt | — | — | 9.4 | — | 9.4 | |||||||||||||||
(Loss) income before income tax (benefit) expense and loss from equity method investment | (4.8 | ) | 6.5 | 3.9 | (3.4 | ) | 2.2 | |||||||||||||
Income tax (benefit) expense | (0.8 | ) | 2.8 | (0.9 | ) | — | 1.1 | |||||||||||||
Loss from equity method investment | — | — | 0.7 | — | 0.7 | |||||||||||||||
Net (loss) income | (4.0 | ) | 3.7 | 4.1 | (3.4 | ) | 0.4 | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 4.4 | — | 4.4 | |||||||||||||||
Net (loss) income attributable to SunCoke Energy, Inc. | $ | (4.0 | ) | $ | 3.7 | $ | (0.3 | ) | $ | (3.4 | ) | $ | (4.0 | ) | ||||||
Comprehensive (loss) income | $ | (7.5 | ) | $ | 3.6 | $ | 0.7 | $ | 0.1 | $ | (3.1 | ) | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | 4.4 | — | 4.4 | |||||||||||||||
Comprehensive (loss) income attributable to SunCoke Energy, Inc. | $ | (7.5 | ) | $ | 3.6 | $ | (3.7 | ) | $ | 0.1 | $ | (7.5 | ) |
Issuer | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | ||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 61.1 | $ | 40.7 | $ | — | $ | 101.8 | ||||||||||
Receivables | — | 8.7 | 62.9 | — | 71.6 | |||||||||||||||
Inventories | — | 5.1 | 102.6 | — | 107.7 | |||||||||||||||
Income tax receivable | 10.9 | — | 60.7 | (59.4 | ) | 12.2 | ||||||||||||||
Other current assets | — | 4.5 | 4.2 | — | 8.7 | |||||||||||||||
Advances to affiliate | 271.4 | — | (271.4 | ) | — | |||||||||||||||
Assets held for sale | — | — | 0.8 | — | 0.8 | |||||||||||||||
Total current assets | 10.9 | 350.8 | 271.9 | (330.8 | ) | 302.8 | ||||||||||||||
Notes receivable from affiliate | — | 89.0 | 300.0 | (389.0 | ) | — | ||||||||||||||
Restricted cash | — | — | 10.3 | — | 10.3 | |||||||||||||||
Investment in Brazilian cokemaking operations | — | — | 41.0 | — | 41.0 | |||||||||||||||
Properties, plants and equipment, net | — | 65.1 | 1,502.5 | — | 1,567.6 | |||||||||||||||
Goodwill | — | 3.4 | 67.1 | — | 70.5 | |||||||||||||||
Other intangible assets, net | — | 2.7 | 184.8 | — | 187.5 | |||||||||||||||
Deferred charges and other assets | 0.2 | 7.4 | 2.5 | — | 10.1 | |||||||||||||||
Investment in subsidiaries | 523.3 | 670.2 | — | (1,193.5 | ) | — | ||||||||||||||
Total assets | $ | 534.4 | $ | 1,188.6 | $ | 2,380.1 | $ | (1,913.3 | ) | $ | 2,189.8 | |||||||||
Liabilities and Equity | ||||||||||||||||||||
Advances from affiliate | $ | 108.3 | $ | — | $ | 163.1 | $ | (271.4 | ) | $ | — | |||||||||
Accounts payable | — | 8.1 | 81.5 | — | 89.6 | |||||||||||||||
Accrued liabilities | 0.2 | 16.7 | 38.5 | — | 55.4 | |||||||||||||||
Current portion of long-term debt | — | — | 1.1 | — | 1.1 | |||||||||||||||
Interest payable | 0.7 | — | 6.6 | — | 7.3 | |||||||||||||||
Income taxes payable | — | 59.4 | — | (59.4 | ) | — | ||||||||||||||
Liabilities held for sale | — | — | 6.7 | — | 6.7 | |||||||||||||||
Total current liabilities | 109.2 | 84.2 | 297.5 | (330.8 | ) | 160.1 | ||||||||||||||
Long-term debt | 103.3 | — | 841.5 | — | 944.8 | |||||||||||||||
Payable to affiliate | — | 300.0 | 89.0 | (389.0 | ) | — | ||||||||||||||
Accrual for black lung benefits | — | 12.2 | 32.7 | — | 44.9 | |||||||||||||||
Retirement benefit liabilities | — | 14.6 | 16.1 | — | 30.7 | |||||||||||||||
Deferred income taxes | 32.8 | 368.1 | (48.5 | ) | — | 352.4 | ||||||||||||||
Asset retirement obligations | — | — | 13.6 | — | 13.6 | |||||||||||||||
Other deferred credits and liabilities | 1.7 | 7.0 | 9.9 | — | 18.6 | |||||||||||||||
Total liabilities | 247.0 | 786.1 | 1,251.8 | (719.8 | ) | 1,565.1 | ||||||||||||||
Equity | ||||||||||||||||||||
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no issued shares at March 31, 2016 | — | — | — | — | — | |||||||||||||||
Common stock, $0.01 par value. Authorized 300,000,000 shares; issued 71,637,745 shares at March 31, 2016 | 0.7 | — | — | — | 0.7 | |||||||||||||||
Treasury stock, 7,477,657 shares at March 31, 2016 | (140.7 | ) | — | — | — | (140.7 | ) | |||||||||||||
Additional paid-in capital | 487.3 | 80.3 | 656.1 | (736.4 | ) | 487.3 | ||||||||||||||
Accumulated other comprehensive loss | (19.4 | ) | (1.4 | ) | (18.0 | ) | 19.4 | (19.4 | ) | |||||||||||
Retained (deficit) earnings | (40.5 | ) | 323.6 | 152.9 | (476.5 | ) | (40.5 | ) | ||||||||||||
Total SunCoke Energy, Inc. stockholders’ equity | 287.4 | 402.5 | 791.0 | (1,193.5 | ) | 287.4 | ||||||||||||||
Noncontrolling interests | — | — | 337.3 | — | 337.3 | |||||||||||||||
Total equity | 287.4 | 402.5 | 1,128.3 | (1,193.5 | ) | 624.7 | ||||||||||||||
Total liabilities and equity | $ | 534.4 | $ | 1,188.6 | $ | 2,380.1 | $ | (1,913.3 | ) | $ | 2,189.8 |
Issuer | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | ||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 70.6 | $ | 52.8 | $ | — | $ | 123.4 | ||||||||||
Receivables | — | 7.9 | 56.7 | — | 64.6 | |||||||||||||||
Inventories | — | 5.3 | 116.5 | — | 121.8 | |||||||||||||||
Income tax receivable | 10.9 | — | 60.0 | (59.3 | ) | 11.6 | ||||||||||||||
Other current assets | 0.1 | 2.4 | 1.4 | — | 3.9 | |||||||||||||||
Advances to affiliates | — | 250.9 | — | (250.9 | ) | — | ||||||||||||||
Assets held for sale | — | — | 0.9 | — | 0.9 | |||||||||||||||
Total current assets | 11.0 | 337.1 | 288.3 | (310.2 | ) | 326.2 | ||||||||||||||
Notes receivable from affiliate | — | 89.0 | 300.0 | (389.0 | ) | — | ||||||||||||||
Restricted Cash | — | — | 18.2 | — | 18.2 | |||||||||||||||
Investment in Brazilian cokemaking operations | — | — | 41.0 | — | 41.0 | |||||||||||||||
Properties, plants and equipment, net | — | 68.2 | 1,513.8 | — | 1,582.0 | |||||||||||||||
Goodwill | — | 3.4 | 67.7 | — | 71.1 | |||||||||||||||
Other intangible assets, net | — | 2.9 | 187.3 | — | 190.2 | |||||||||||||||
Deferred charges and other assets | 0.2 | 12.5 | 2.7 | — | 15.4 | |||||||||||||||
Investment in subsidiaries | 522.1 | 649.3 | — | (1,171.4 | ) | — | ||||||||||||||
Long-term assets held for sale | — | — | 11.4 | — | 11.4 | |||||||||||||||
Total assets | $ | 533.3 | $ | 1,162.4 | $ | 2,430.4 | $ | (1,870.6 | ) | $ | 2,255.5 | |||||||||
Liabilities and Equity | ||||||||||||||||||||
Advances from affiliate | $ | 105.2 | $ | — | $ | 145.7 | $ | (250.9 | ) | $ | — | |||||||||
Accounts payable | — | 10.4 | 89.4 | — | 99.8 | |||||||||||||||
Accrued liabilities | 0.1 | 16.4 | 28.5 | — | 45.0 | |||||||||||||||
Current portion of long-term debt | — | — | 1.1 | — | 1.1 | |||||||||||||||
Interest payable | 1.5 | — | 17.4 | — | 18.9 | |||||||||||||||
Income taxes payable | — | 59.3 | — | (59.3 | ) | — | ||||||||||||||
Liabilities held for sale | — | — | 0.9 | — | 0.9 | |||||||||||||||
Total current liabilities | 106.8 | 86.1 | 283.0 | (310.2 | ) | 165.7 | ||||||||||||||
Long-term debt | 103.2 | — | 894.5 | — | 997.7 | |||||||||||||||
Payable to affiliate | — | 300.0 | 89.0 | (389.0 | ) | — | ||||||||||||||
Accrual for black lung benefits | — | 12.6 | 32.1 | — | 44.7 | |||||||||||||||
Retirement benefit liabilities | — | 14.9 | 16.4 | — | 31.3 | |||||||||||||||
Deferred income taxes | 32.3 | 362.4 | (45.7 | ) | — | 349.0 | ||||||||||||||
Asset retirement obligations | — | — | 16.3 | — | 16.3 | |||||||||||||||
Other deferred credits and liabilities | 1.1 | 7.0 | 14.0 | — | 22.1 | |||||||||||||||
Long-term liabilities held for sale | — | — | 5.9 | — | 5.9 | |||||||||||||||
Total liabilities | 243.4 | 783.0 | 1,305.5 | (699.2 | ) | 1,632.7 | ||||||||||||||
Equity | ||||||||||||||||||||
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no issued shares at December 31, 2015 | — | — | — | — | — | |||||||||||||||
Common stock, $0.01 par value. Authorized 300,000,000 shares; issued 71,489,448 shares at December 31, 2015 | 0.7 | — | — | — | 0.7 | |||||||||||||||
Treasury Stock, 7,477,657 shares at December 31, 2015 | (140.7 | ) | — | — | — | (140.7 | ) | |||||||||||||
Additional paid-in capital | 486.1 | 62.0 | 664.7 | (726.7 | ) | 486.1 | ||||||||||||||
Accumulated other comprehensive (loss) income | (19.8 | ) | (1.3 | ) | (18.5 | ) | 19.8 | (19.8 | ) | |||||||||||
Retained (deficit) earnings | (36.4 | ) | 318.7 | 145.8 | (464.5 | ) | (36.4 | ) | ||||||||||||
Total SunCoke Energy, Inc. stockholders’ equity | 289.9 | 379.4 | 792.0 | (1,171.4 | ) | 289.9 | ||||||||||||||
Noncontrolling interests | — | — | 332.9 | — | 332.9 | |||||||||||||||
Total equity | 289.9 | 379.4 | 1,124.9 | (1,171.4 | ) | 622.8 | ||||||||||||||
Total liabilities and equity | $ | 533.3 | $ | 1,162.4 | $ | 2,430.4 | $ | (1,870.6 | ) | $ | 2,255.5 |
Issuer | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | ||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||
Net (loss) income | $ | (4.1 | ) | $ | 4.9 | $ | 23.8 | $ | (12.0 | ) | $ | 12.6 | ||||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||||||||||||||
Asset impairment | — | — | 10.7 | — | 10.7 | |||||||||||||||
Depreciation and amortization expense | — | 2.2 | 26.0 | — | 28.2 | |||||||||||||||
Deferred income tax expense (benefit) | 0.3 | 5.7 | (2.8 | ) | — | 3.2 | ||||||||||||||
Gain on curtailment and payments in excess of expense for postretirement plan benefits | — | (0.3 | ) | (0.3 | ) | — | (0.6 | ) | ||||||||||||
Share-based compensation expense | 1.7 | — | — | — | 1.7 | |||||||||||||||
Equity in (loss) earnings of subsidiaries | (0.7 | ) | (11.3 | ) | — | 12.0 | — | |||||||||||||
(Gain) loss on extinguishment of debt | — | — | (20.4 | ) | — | (20.4 | ) | |||||||||||||
Changes in working capital pertaining to operating activities (net of changes in held for sale working capital): | ||||||||||||||||||||
Receivables | — | (0.8 | ) | (6.2 | ) | — | (7.0 | ) | ||||||||||||
Inventories | — | 0.2 | 14.0 | — | 14.2 | |||||||||||||||
Accounts payable | — | (0.5 | ) | (5.3 | ) | — | (5.8 | ) | ||||||||||||
Accrued liabilities | 0.1 | 0.3 | 9.0 | — | 9.4 | |||||||||||||||
Interest payable | (0.8 | ) | — | (10.8 | ) | — | (11.6 | ) | ||||||||||||
Income taxes | — | 0.1 | (0.7 | ) | — | (0.6 | ) | |||||||||||||
Other | 1.4 | 2.6 | (8.6 | ) | — | (4.6 | ) | |||||||||||||
Net cash (used in) provided by operating activities | (2.1 | ) | 3.1 | 28.4 | — | 29.4 | ||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | (1.9 | ) | (11.9 | ) | — | (13.8 | ) | ||||||||||||
Decrease in restricted cash | — | — | 7.9 | — | 7.9 | |||||||||||||||
Other investing activities | — | — | 0.6 | — | 0.6 | |||||||||||||||
Net cash used in investing activities | — | (1.9 | ) | (3.4 | ) | — | (5.3 | ) | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Repayment of long-term debt | — | — | (32.9 | ) | — | (32.9 | ) | |||||||||||||
Proceeds from revolving facility | — | — | 20.0 | — | 20.0 | |||||||||||||||
Repayment of revolving facility | — | — | (20.0 | ) | — | (20.0 | ) | |||||||||||||
Cash distribution to noncontrolling interests | — | — | (12.3 | ) | — | (12.3 | ) | |||||||||||||
Proceeds from exercise of stock options, net of shares withheld for taxes | (0.5 | ) | — | — | — | (0.5 | ) | |||||||||||||
Net increase (decrease) in advances from affiliate | 2.6 | (10.7 | ) | 8.1 | — | — | ||||||||||||||
Net cash provided by (used in) financing activities | 2.1 | (10.7 | ) | (37.1 | ) | — | (45.7 | ) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (9.5 | ) | (12.1 | ) | — | (21.6 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 70.6 | 52.8 | — | 123.4 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 61.1 | $ | 40.7 | $ | — | $ | 101.8 |
Issuer | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | ||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||
Net (loss) income | $ | (4.0 | ) | $ | 3.7 | $ | 4.1 | $ | (3.4 | ) | $ | 0.4 | ||||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization expense | — | 2.1 | 21.7 | — | 23.8 | |||||||||||||||
Deferred income tax expense (benefit) | (0.2 | ) | 0.5 | 2.8 | — | 3.1 | ||||||||||||||
Gain on curtailment and payments in excess of expense for postretirement plan benefits | — | (0.3 | ) | (4.4 | ) | — | (4.7 | ) | ||||||||||||
Share-based compensation expense | 1.5 | — | — | — | 1.5 | |||||||||||||||
Equity in (loss) earnings of subsidiaries | — | (3.4 | ) | — | 3.4 | — | ||||||||||||||
Loss from equity method investment | — | — | 0.7 | — | 0.7 | |||||||||||||||
Loss on extinguishment of debt | — | — | 9.4 | — | 9.4 | |||||||||||||||
Changes in working capital pertaining to operating activities (net of changes in held for sale capital): | ||||||||||||||||||||
Receivables | 0.1 | 5.1 | 11.5 | — | 16.7 | |||||||||||||||
Inventories | — | (3.8 | ) | 15.3 | — | 11.5 | ||||||||||||||
Accounts payable | — | (5.8 | ) | (7.7 | ) | — | (13.5 | ) | ||||||||||||
Accrued liabilities | — | (3.8 | ) | (12.9 | ) | — | (16.7 | ) | ||||||||||||
Interest payable | (6.2 | ) | — | (5.0 | ) | — | (11.2 | ) | ||||||||||||
Income taxes payable | (0.7 | ) | 12.0 | (14.1 | ) | — | (2.8 | ) | ||||||||||||
Other | (0.1 | ) | (3.3 | ) | (3.7 | ) | — | (7.1 | ) | |||||||||||
Net cash (used in) provided by operating activities | (9.6 | ) | 3.0 | 17.7 | — | 11.1 | ||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Capital expenditures | — | (1.5 | ) | (6.8 | ) | — | (8.3 | ) | ||||||||||||
Net cash used in investing activities | — | (1.5 | ) | (6.8 | ) | — | (8.3 | ) | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Proceeds from issuance of long-term debt | — | — | 210.8 | — | 210.8 | |||||||||||||||
Repayment of long-term debt | — | — | (149.5 | ) | — | (149.5 | ) | |||||||||||||
Debt issuance cost | — | — | (4.2 | ) | — | (4.2 | ) | |||||||||||||
Cash distribution to noncontrolling interests | — | — | (9.1 | ) | — | (9.1 | ) | |||||||||||||
Shares repurchased | (20.0 | ) | — | — | — | (20.0 | ) | |||||||||||||
Proceeds from exercise of stock options, net of shares withheld for taxes | (0.5 | ) | — | — | — | (0.5 | ) | |||||||||||||
Dividends Paid | (3.9 | ) | — | — | — | (3.9 | ) | |||||||||||||
Net increase (decrease) in advances from affiliates | 34.0 | (34.3 | ) | 0.3 | — | |||||||||||||||
Net cash provided by (used in) financing activities | 9.6 | (34.3 | ) | 48.3 | — | 23.6 | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (32.8 | ) | 59.2 | — | 26.4 | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 102.3 | 36.7 | — | 139.0 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 69.5 | $ | 95.9 | $ | — | $ | 165.4 |
Facility | Location | Customer | Year of Start Up | Contract Expiration | Number of Coke Ovens | Annual Cokemaking Capacity (thousands of tons) | Use of Waste Heat | |||||||
Owned and Operated: | ||||||||||||||
Jewell | Vansant, Virginia | ArcelorMittal | 1962 | 2020 | 142 | 720 | Partially used for thermal coal drying | |||||||
Indiana Harbor | East Chicago, Indiana | ArcelorMittal | 1998 | 2023 | 268 | 1,220 | Heat for power generation | |||||||
Haverhill Phase 1 | Franklin Furnace, Ohio | ArcelorMittal | 2005 | 2020 | 100 | 550 | Process steam | |||||||
Haverhill Phase 2 | Franklin Furnace, Ohio | AK Steel | 2008 | 2022 | 100 | 550 | Power generation | |||||||
Granite City | Granite City, Illinois | U.S. Steel | 2009 | 2025 | 120 | 650 | Steam for power generation | |||||||
Middletown(1) | Middletown, Ohio | AK Steel | 2011 | 2032 | 100 | 550 | Power generation | |||||||
830 | 4,240 | |||||||||||||
Operated: | ||||||||||||||
Vitória | Vitória, Brazil | ArcelorMittal | 2007 | 2023 | 320 | 1,700 | Steam for power generation | |||||||
1,150 | 5,940 | |||||||||||||
Equity Method Investment: | ||||||||||||||
VISA SunCoke(2) | Odisha, India | Various | 2007 | NA | 88 | 440 | Steam for power generation | |||||||
Total | 1,238 | 6,380 |
(1) | Cokemaking capacity represents stated capacity for production of blast furnace coke. The Middletown coke sales agreement provides for coke sales on a “run of oven” basis, which includes both blast furnace coke and small coke. Middletown capacity on a “run of oven” basis is 578 thousand tons per year. |
(2) | Cokemaking capacity represents 100 percent of VISA SunCoke. |
• | AK Steel Make-Whole |
• | Coal Mining Business |
• | Revenues decreased $12.9 million, or 4.0 percent, to $311.1 million in the three months ended March 31, 2016, primarily due to the pass-through of lower coal prices in our Domestic Coke segment, partially offset by $7.7 million of revenue contributed from CMT. |
• | Adjusted EBITDA was $53.0 million in the three months ended March 31, 2016 compared to $47.9 million in the three months ended March 31, 2015. The increase was primarily driven by a $13.0 million Adjusted EBITDA contribution from CMT, partially offset by a postretirement benefit plan curtailment gain of $4.0 million recorded in the corresponding period of 2015 as well as lower energy revenue in the current year. |
• | Net loss attributable to SunCoke Energy, Inc. was $4.1 million and $4.0 million for the three months ended March 31, 2016 and 2015, respectively. The Partnership's gains on extinguishment of debt attributable to the Company were offset by a $10.7 million impairment non-cash impairment charge associated with the disposition of our Coal Mining business. |
• | Cash provided by operating activities was $29.4 million and $11.1 million for the three months ended March 31, 2016 and 2015, respectively. The increase in operating cash flow reflects lower operating and maintenance spending and lower inventory levels at our Indiana Harbor facility. Additionally, CMT contributed net cash provided by operating activities of $7.4 million for the three months ended March 31, 2016. |
• | Convent Marine Terminal. Comparability between periods was impacted by the acquisition of CMT during the third quarter of 2015, which contributed revenues of $7.7 million and Adjusted EBITDA of $13.0 million during the first quarter of 2016. |
• | Contingent Consideration. In connection with the CMT acquisition, the Partnership entered into a contingent consideration arrangement that requires the Partnership to make future payments to The Cline Group based on future volumes over a specified threshold, price, and contract renewals. During the first quarter of 2016, the Partnership amended the contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability from $7.9 million at December 31, 2015 to $4.2 million at March 31, 2016, with a resulting $3.7 million gain recognized as a reduction to costs of products sold and operating expenses on the Consolidated Statements of Operations during the three months ended March 31, 2016. |
• | Transfer Price. Historically, intersegment Coal Mining revenues for coal sales to our Jewell cokemaking facility reflected the contract price that the facilities within the Domestic Coke segment charge their customers, which approximated the market prices for this quality of metallurgical coal. In 2016, the Company has transitioned to a 100 percent purchased third-party coal model, resulting in a shift of approximately $2.7 million of coal transportation costs from the Coal Mining segment to our Jewell cokemaking facility during the first quarter of 2016. These additional transportation costs are included in Coal Mining intersegment revenues to Domestic Coke. It is impracticable to show the impacts of this change in our coal procurement model in segment results on a comparable basis. This shift of costs has no impact on 2016 expected consolidated Adjusted EBITDA. |
• | Energy Sales. Until the second quarter of 2015, Haverhill 1 sold steam to Haverhill Chemicals LLC ("Haverhill Chemicals"), which filed for relief under Chapter 11 of the U.S. Bankruptcy Code during 2015. Beginning in the fourth quarter of 2015, Haverhill 1 provided steam, at no cost, to Altivia. In the current arrangement, the Company is not currently generating revenues from providing steam to Altivia, which may be renegotiated beginning in 2018. The current arrangement mitigates costs associated with disposing of steam as well as potential compliance issues. Both revenues and Adjusted EBITDA decreased $2.0 million in the first quarter of 2016 compared to the corresponding period of 2015 as a result of these arrangements. |
• | (Gain) Loss on extinguishment of debt. In the first quarter of 2016, the Partnership continued de-levering its balance sheet and repurchased $52.8 million face value of outstanding Partnership Notes for $32.6 million in the open market, which resulted in a gain on extinguishment of debt of $20.4 million. |
• | Noncontrolling Interest. Income attributable to noncontrolling interest represents the common public unitholders’ interest in SunCoke Energy Partners, L.P. as well as a third-party interest in our Indiana Harbor cokemaking facility. Income attributable to noncontrolling interest was $16.7 million and $4.4 million during the three months ended March 31, 2016 and 2015, respectively. This increase of $12.3 million was primarily related to higher net income at the Partnership driven by the gain on extinguishment of debt discussed above, as well as lower operating and maintenance spend at Indiana Harbor. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Revenues | ||||||||
Sales and other operating revenue | $ | 310.5 | $ | 323.9 | ||||
Other income | 0.6 | 0.1 | ||||||
Total revenues | 311.1 | 324.0 | ||||||
Costs and operating expenses | ||||||||
Cost of products sold and operating expenses | 239.0 | 262.1 | ||||||
Selling, general and administrative expenses | 23.7 | 12.6 | ||||||
Depreciation and amortization expense | 28.2 | 23.8 | ||||||
Asset impairment | 10.7 | — | ||||||
Total costs and operating expenses | 301.6 | 298.5 | ||||||
Operating income | 9.5 | 25.5 | ||||||
Interest expense, net | 14.0 | 13.9 | ||||||
(Gain) loss on extinguishment of debt | (20.4 | ) | 9.4 | |||||
Income before income tax expense and loss from equity method investment | 15.9 | 2.2 | ||||||
Income tax expense | 3.3 | 1.1 | ||||||
Loss from equity method investment | — | 0.7 | ||||||
Net income | 12.6 | 0.4 | ||||||
Less: Net income attributable to noncontrolling interests | 16.7 | 4.4 | ||||||
Net loss attributable to SunCoke Energy, Inc. | $ | (4.1 | ) | $ | (4.0 | ) |
• | Domestic Coke consists of our Jewell, Indiana Harbor, Haverhill, Granite City and Middletown cokemaking and heat recovery operations located in Vansant, Virginia; East Chicago, Indiana; Franklin Furnace, Ohio; Granite City, Illinois; and Middletown, Ohio, respectively; |
• | Brazil Coke consists of our operations in Vitória, Brazil, where we operate a cokemaking facility for a Brazilian subsidiary of ArcelorMittal; |
• | Coal Mining consists of our metallurgical coal mining activities conducted in Virginia and West Virginia, the majority of which was divested in April 2016. |
• | Coal Logistics consists of our coal handling and/or mixing services in East Chicago, Indiana; Ceredo, West Virginia; and Belle, West Virginia; Catlettsburg, Kentucky; and Convent, Louisiana. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Sales and other operating revenues: | ||||||||
Domestic Coke | $ | 289.0 | $ | 303.1 | ||||
Brazil Coke | 7.7 | 9.9 | ||||||
Coal Logistics | 13.0 | 7.3 | ||||||
Coal Logistics intersegment sales | 5.2 | 4.7 | ||||||
Coal Mining | 0.8 | 3.6 | ||||||
Coal Mining intersegment sales | 21.3 | 24.2 | ||||||
Elimination of intersegment sales | (26.5 | ) | (28.9 | ) | ||||
Total sales and other operating revenue | $ | 310.5 | $ | 323.9 | ||||
Adjusted EBITDA(1): | ||||||||
Domestic Coke | $ | 54.3 | $ | 52.7 | ||||
Brazil Coke | 2.3 | 4.1 | ||||||
Coal Logistics | 15.1 | 2.6 | ||||||
Coal Mining | (4.1 | ) | (3.1 | ) | ||||
Corporate and Other, including legacy costs, net(2) | (14.6 | ) | (8.4 | ) | ||||
Total Adjusted EBITDA | $ | 53.0 | $ | 47.9 | ||||
Coke Operating Data: | ||||||||
Domestic Coke capacity utilization (%) | 94 | 95 | ||||||
Domestic Coke production volumes (thousands of tons) | 991 | 998 | ||||||
Domestic Coke sales volumes (thousands of tons) | 1,000 | 950 | ||||||
Domestic Coke Adjusted EBITDA per ton(3) | $ | 54.30 | $ | 55.63 | ||||
Brazilian Coke production—operated facility (thousands of tons) | 415 | 439 | ||||||
Coal Logistics Operating Data: | ||||||||
Tons handled, excluding CMT (thousands of tons)(4) | 3,370 | 3,794 | ||||||
Tons handled by CMT (thousands of tons)(4) | 945 | — | ||||||
Pay tons(5) | 1,638 | — |
(1) | See definition of Adjusted EBITDA and reconciliation to GAAP at the end of this Item. |
(2) | Legacy costs, net, include costs associated with former mining employee-related liabilities, net of certain royalty revenues. See details of these legacy items below. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Black lung charges | $ | (1.7 | ) | $ | (0.9 | ) | ||
Postretirement benefit plan (expense) benefit | (0.2 | ) | 3.9 | |||||
Defined benefit plan expense | — | (0.2 | ) | |||||
Workers' compensation expense | (0.3 | ) | (0.9 | ) | ||||
Total legacy costs, net | $ | (2.2 | ) | $ | 1.9 |
(3) | Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes. |
(4) | Reflects inbound tons handled during the period. |
(5) | Coal Logistics deferred revenue adjusts for coal and liquid tons the Partnership did not handle, but are included in Adjusted EBITDA as the associated take-or-pay fees are billed to the customer. Deferred revenue on take-or-pay contracts is recognized into GAAP income annually based on the terms of the contract. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Net cash provided by operating activities | $ | 29.4 | $ | 11.1 | ||||
Net cash used in investing activities | (5.3 | ) | (8.3 | ) | ||||
Net cash (used in) provided by financing activities | (45.7 | ) | 23.6 | |||||
Net (decrease) increase in cash and cash equivalents | $ | (21.6 | ) | $ | 26.4 |
• | Ongoing capital expenditures required to maintain equipment reliability, the integrity and safety of our coke ovens and steam generators and to comply with environmental regulations. Ongoing capital expenditures are made to replace partially or fully depreciated assets in order to maintain the existing operating capacity of the assets and/or to extend their useful lives and also include new equipment that improves the efficiency, reliability or effectiveness of existing assets. Ongoing capital expenditures do not include normal repairs and maintenance expenses, which are expensed as incurred; |
• | Environmental remediation project expenditures required to implement design changes to ensure that our existing facilities operate in accordance with existing environmental permits; and |
• | Expansion capital expenditures to acquire and/or construct complementary assets to grow our business and to expand existing facilities as well as capital expenditures made to enable the renewal of a coke sales agreement and on which we expect to earn a reasonable return. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Ongoing capital | $ | 9.0 | $ | 5.5 | ||||
Environmental remediation capital(1) | 1.4 | 2.8 | ||||||
Expansion capital: | ||||||||
CMT(2) | 2.0 | — | ||||||
Other capital expansion | 1.4 | — | ||||||
Total capital expenditures | $ | 13.8 | $ | 8.3 |
(1) | Includes capitalized interest of $0.6 million and $0.7 million in both the three months ended March 31, 2016 and 2015, respectively. |
(2) | Includes capital expenditures of $1.4 million for the ship loader expansion project funded with cash withheld in conjunction with the acquisition of CMT and $0.6 million of capitalized interest in connection with this project. |
• | Total ongoing capital expenditures of approximately $38 million, of which $15 million will be spent at the Partnership; |
• | Total capital expenditures on environmental remediation projects of approximately $3 million, all of which will be spent at the Partnership and was funded with a portion of the proceeds of the Partnership offering and subsequent asset dropdowns; and |
• | Total expansion capital of approximately $4 million. |
• | 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 requirement 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. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
(Dollars in millions) | ||||||||
Adjusted EBITDA attributable to SunCoke Energy, Inc. | $ | 28.7 | $ | 29.8 | ||||
Add: Adjusted EBITDA attributable to noncontrolling interests(1) | 24.3 | 18.1 | ||||||
Adjusted EBITDA | $ | 53.0 | $ | 47.9 | ||||
Subtract: | ||||||||
Adjustment to unconsolidated affiliate earnings(2) | $ | — | $ | 0.3 | ||||
Coal rationalization income, net(3) | (0.9 | ) | (1.0 | ) | ||||
Depreciation and amortization expense | 28.2 | 23.8 | ||||||
Interest expense, net | 14.0 | 13.9 | ||||||
Income tax expense | 3.3 | 1.1 | ||||||
(Gain) loss on extinguishment of debt | (20.4 | ) | 9.4 | |||||
Asset impairment | 10.7 | — | ||||||
Coal Logistics deferred revenue(4) | 9.2 | — | ||||||
Reduction of contingent consideration(5) | (3.7 | ) | — | |||||
Net income | $ | 12.6 | $ | 0.4 | ||||
Add: | ||||||||
Asset impairment | $ | 10.7 | $ | — | ||||
Depreciation and amortization expense | 28.2 | 23.8 | ||||||
Deferred income tax expense | 3.2 | 3.1 | ||||||
(Gain) loss on extinguishment of debt | (20.4 | ) | 9.4 | |||||
Changes in working capital and other | (4.9 | ) | (25.6 | ) | ||||
Net cash provided by operating activities | $ | 29.4 | $ | 11.1 |
(1) | Reflects noncontrolling interest in Indiana Harbor and the portion of the Partnership owned by public unitholders. |
(2) | Reflects share of interest, taxes, depreciation and amortization related to VISA SunCoke. |
(3) | Coal rationalization income, net includes employee severance, contract termination costs, costs incurred to divest our coal mining business and other costs to idle mines incurred during the execution of our coal rationalization plan. The first quarter of 2016 includes a gain of $1.5 million on the divestiture of certain coal mining permits and related reclamation obligations. Additionally, the first quarter of 2015 included $2.2 million of income related to an adjustment in the coal severance accrual. |
(4) | Coal Logistics deferred revenue adjusts for coal and liquid tons the Partnership did not handle, but are included in Adjusted EBITDA as the associated take-or-pay fees are billed to the customer. Deferred revenue on take-or-pay contracts is recognized into GAAP income annually based on the terms of the contract. |
(5) | The Partnership amended its contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability from $7.9 million at December 31, 2015 to $4.2 million at March 31, 2016, resulting in a $3.7 million gain, which was excluded from Adjusted EBITDA. |
2016 | ||||||||
Low | High | |||||||
Adjusted EBITDA attributable to SunCoke Energy, Inc. | $ | 105 | $ | 124 | ||||
Add: Adjusted EBITDA attributable to noncontrolling interests(1) | 105 | 111 | ||||||
Adjusted EBITDA | $ | 210 | $ | 235 | ||||
Subtract: | ||||||||
Coal rationalization costs(2) | 2 | 1 | ||||||
Depreciation and amortization expense | 106 | 106 | ||||||
Interest expense, net | 62 | 58 | ||||||
(Gain) loss on extinguishment of debt | (20 | ) | (27 | ) | ||||
Income tax expense | 6 | 17 | ||||||
Asset impairment / loss on sale | 14 | 14 | ||||||
Reduction of contingent consideration | (4 | ) | (4 | ) | ||||
Net income | $ | 44 | $ | 70 | ||||
Add: | ||||||||
Depreciation and amortization expense | 106 | 106 | ||||||
(Gain) loss on extinguishment of debt | (20 | ) | (27 | ) | ||||
Asset impairment / loss on sale | 14 | 14 | ||||||
Changes in working capital and other | 6 | 7 | ||||||
Net cash provided by operating activities | $ | 150 | $ | 170 |
(1) | Reflects noncontrolling interest in Indiana Harbor and the portion of the Partnership owned by public unitholders. |
(2) | Coal rationalization income, net includes employee severance, contract termination costs, costs incurred to divest our coal mining business and other costs to idle mines incurred during the execution of our coal rationalization plan. The three months ended March 31, 2016 includes a gain of $1.5 million on the divestiture of certain coal mining permits and related reclamation obligations. |
• | changes in levels of production, production capacity, pricing and/or margins for coal and coke; |
• | variation in availability, quality and supply of metallurgical coal used in the cokemaking process, including as a result of non-performance by our suppliers; |
• | changes in the marketplace that may affect our coal logistics business, including the supply and demand for thermal and/or metallurgical coal; |
• | changes in the marketplace that may affect our cokemaking business, including the supply and demand for our coke products, as well as increased imports of coke from foreign producers; |
• | competition from alternative steelmaking and other technologies that have the potential to reduce or eliminate the use of coke; |
• | our dependence on, relationships with, and other conditions affecting, our customers; |
• | severe financial hardship or bankruptcy of one or more of our major customers, or the occurrence of a customer default or other event affecting our ability to collect payments from our customers; |
• | volatility and cyclical downturns in the steel industry and in other industries in which our customers operate; |
• | volatility, cyclical downturns and other change in the business climate and market for coal, affecting customers or potential customers for the Partnership's coal logistics business; |
• | our significant equity interest in the Partnership; |
• | our ability to enter into new, or renew existing, long-term agreements upon favorable terms for the sale of coke steam, or electric power, or for coal handling and logistics services; |
• | the Partnership's ability to enter into new, or renew existing, agreements upon favorable terms for coal logistics services; |
• | our ability to identify acquisitions, execute them under favorable terms, and integrate them into our existing business operations; |
• | our ability to consummate investments under favorable terms, including with respect to existing cokemaking facilities, which may utilize by-product technology, and integrate them into our existing businesses and have them perform at anticipated levels; |
• | our ability to develop, design, permit, construct, start up, or operate new cokemaking facilities in the U.S. or in foreign countries; |
• | our ability to successfully implement domestic and/or our international growth strategies; |
• | our ability to realize expected benefits from investments and acquisitions, including our investment in the Indian joint venture; |
• | age of, and changes in the reliability, efficiency and capacity of the various equipment and operating facilities used in our cokemaking and/or coal logistics operations, and in the operations of our subsidiaries major customers, business partners and/or suppliers; |
• | changes in the expected operating levels of our assets; |
• | our ability to meet minimum volume requirements, coal-to-coke yield standards and coke quality standards in our coke sales agreements; |
• | changes in the level of capital expenditures or operating expenses, including any changes in the level of environmental capital, operating or remediation expenditures; |
• | our ability to service our outstanding indebtedness; |
• | our ability to comply with the restrictions imposed by our financing arrangements; |
• | our ability to comply with federal or state environmental statutes, rules or regulations |
• | nonperformance or force majeure by, or disputes with, or changes in contract terms with, major customers, suppliers, dealers, distributors or other business partners; |
• | availability of skilled employees for our cokemaking, and/or coal logistics operations, and other workplace factors; |
• | effects of railroad, barge, truck and other transportation performance and costs, including any transportation disruptions; |
• | effects of adverse events relating to the operation of our facilities and to the transportation and storage of hazardous materials (including equipment malfunction, explosions, fires, spills, and the effects of severe weather conditions); |
• | effects of adverse events relating to the business or commercial operations of all customers or supplies |
• | disruption in our information technology infrastructure and/or loss of our ability to securely store, maintain, or transmit data due to security breach by hackers, employee error or malfeasance, terrorist attack, power loss, telecommunications failure or other events; |
• | our ability to enter into joint ventures and other similar arrangements under favorable terms; |
• | our ability to consummate assets sales, other divestitures and strategic restructuring in a timely manner upon favorable terms, and/or realize the anticipated benefits from such actions; |
• | changes in the availability and cost of equity and debt financing; |
• | impact on our liquidity and ability to raise capital as a result of changes in the credit ratings assigned to our indebtedness; |
• | changes in credit terms required by our suppliers; |
• | risks related to labor relations and workplace safety; |
• | proposed or final changes in existing, or new, statutes, regulations, rules, governmental policies and taxes, or their interpretations, including those relating to environmental matters and taxes; |
• | the existence of hazardous substances or other environmental contamination on property owned or used by us; |
• | the availability of future permits authorizing the disposition of certain mining waste; |
• | claims of noncompliance with any statutory and regulatory requirements; |
• | proposed or final changes in accounting and/or tax methodologies, laws, regulations, rules, or policies, or their interpretations, including those affecting inventories, leases, pensions, or income; |
• | historical combined and consolidated financial data may not be reliable indicator of future results; |
• | effects resulting from our separation from Sunoco, Inc.; |
• | public company costs; |
• | our indebtedness and certain covenants in our debt documents; |
• | our ability to secure new coal supply agreements or to renew existing coal supply agreements; |
• | receipt of regulatory approvals and compliance with contractual obligations required in connection with our cokemaking and /or coal logistics operations; |
• | changes in product specifications for the coke that we produce or the coals we mix, store and transport; |
• | changes in insurance markets impacting cost, level and/or types of coverage available, and the financial ability of our insurers to meet their obligations; |
• | changes in accounting rules or their interpretations, including the method of accounting for inventories, leases and/or pensions; |
• | changes in tax laws or their interpretations, including the adoption of proposed rules governing whether the Partnership would be treated as a corporation for federal income tax purposes; |
• | volatility in foreign currency exchange rates affecting the markets and geographic regions in which we conduct business; |
• | changes in financial markets impacting pension expense and funding requirements; |
• | the accuracy of our estimates of reclamation and other mine closure obligations; |
• | inadequate protection of our intellectual property rights; and |
• | effects of geologic conditions, weather, natural disasters and other inherent risks beyond our control. |
Exhibit Number | Description | |||
10.1* | SunCoke Energy, Inc. Long-Term Cash Incentive Plan (effective as of January 1, 2016) | |||
10.2* | Form of Stock Option Agreement under the SunCoke Energy, Inc. Long-Term Performance Enhancement Plan by and between SunCoke Energy, Inc. and employees of SunCoke Energy, Inc. or one of its Affiliates (effective February 17, 2016) | |||
10.3* | Form of Performance Stock Option Agreement under the SunCoke Energy, Inc. Long-Term Performance Enhancement Plan by and between SunCoke Energy, Inc. and employees of SunCoke Energy, Inc. or one of its Affiliates (effective February 17, 2016) | |||
10.4* | Form of Restricted Share Unit Agreement under the SunCoke Energy, Inc. Long-Term Performance Enhancement Plan by and between SunCoke Energy, Inc. and employees of SunCoke Energy, Inc. or one of its Affiliates (effective February 17, 2016) | |||
10.5* | Form of Performance Share Unit Agreement under the SunCoke Energy, Inc. Long-Term Performance Enhancement Plan by and between SunCoke Energy, Inc. and employees of SunCoke Energy, Inc. or one of its Affiliates (effective February 17, 2016) | |||
10.6* | Form of Award Agreement under the SunCoke Energy, Inc. Long-Term Cash Incentive Plan by and between SunCoke Energy, Inc. and employees of SunCoke Energy, Inc. or one of its Affiliates (effective February 17, 2016) | |||
10.7* | Second Amendment to the SunCoke Energy, Inc. Savings Restoration Plan, effective as of June 1, 2015 | |||
10.8* | Third Amendment to the SunCoke Energy, Inc. Savings Restoration Plan, effective as of January 1, 2016 | |||
31.1* | Chief Executive Officer Certification Pursuant to Exchange Act Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||
31.2* | Chief Financial Officer Certification Pursuant to Exchange Act Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||
32.1* | Chief Executive Officer Certification Pursuant to Exchange Act Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code, as Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||
32.2* | Chief Financial Officer Certification Pursuant to Exchange Act Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code, as Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||
95.1* | Mine Safety Disclosures | |||
101* | The following financial statements from SunCoke Energy Partners L.P.'s Quarterly Report on Form 10-Q for the three months ended March 31, 2016, filed with the Securities and Exchange Commission on April 27, 2016, formatted in XBRL (eXtensible Business Reporting Language is attached to this report): (i) the Combined and Consolidated Statements of Operations; (ii) the Consolidated Statements of Comprehensive Loss, (iii) the Combined and Consolidated Balance Sheets; (iv) the Combined and Consolidated Statements of Cash Flows; and, (v) the Combined and Consolidated Statement of Equity; (vi) the Notes to Combined and Consolidated Financial Statements. |
* | Filed herewith. |
SunCoke Energy, Inc. Investor Relations 1011 Warrenville Road Suite 600 Lisle, Illinois 60532 |
SunCoke Energy, Inc. | ||||||
Dated: | April 27, 2016 | By: | /s/ Fay West | |||
Fay West | ||||||
Senior Vice President and Chief Financial Officer (As Principal Financial Officer and Duly Authorized Officer of SunCoke Energy, Inc.) |
I. | Purpose |
II. | Definitions |
III. | Administration |
IV. | Eligibility |
V. | Awards |
VI. | Adjustment |
VII. | Effective Date; Amendment or Termination |
VIII. | Miscellaneous |
(a) | Participant: __ |
(e) | Vesting Schedule: Subject to continued employment through the applicable vesting date, the Stock Option shall vest and become exercisable as follows: |
• | 33% on 1/3 on __ |
• | 33% on 1/3 on __ |
• | Remainder on __ |
(a) | if to SunCoke: |
(a) | Participant: __ |
(e) | Vesting: The Stock Option shall vest and become exercisable upon satisfaction with both the service schedule and the performance condition, |
• | 33% on 1/3 on __ |
• | 33% on 1/3 on __ |
• | Remainder on __ |
(a) | if to SunCoke: |
(d) | Vesting Periods: Subject to continued employment through the applicable vesting date, the RSUs shall vest as follows: |
• | 33% on 33% on __ |
• | 33% on __ |
• | Remainder on __ |
(e) | Form of Payment: Cash |
(a) | If to SunCoke: |
(b) | If to the Participant: To the address for Participant as it appears on SunCoke’s records. |
(d) | Performance Period: Three-year period ending on December 31, 2018 |
(b) | If to the Participant: To the address for Participant as it appears on SunCoke’s records. |
SunCoke 2016 - to 2018 Performance Share Metrics | ||||||||
Threshold | Target | Maximum | ||||||
Weight | 0% | 100% | 200% | |||||
Average 3-year SXC TSR versus S&P 600 (2016 - 2018) | 50% | 25th Percentile | 50th Percentile | 75th Percentile | ||||
3-year TSR calculation: (10-day closing average minus 10-day opening average)/ 10-day opening average | ||||||||
Threshold | Target | Maximum | ||||||
Weight | 0% | 100% | 200% | |||||
3-year average pre-tax return on capital (ROIC) Coke, Logistics and Unallocated Corporate | 50% | 10.0 | % | 13.0 | % | 16.0 | % | |
Multiplier: If the Committee determines that at any time during the Performance Period the closing price of the Company’s Common Stock equaled or exceeded $9.00 on any 15 trading days, the Award as adjusted pursuant to the chart above shall be multiplied by two (2) but shall be capped at 200% of the target Award subject to the ROIC metric. Note: This Multiplier applies only to the ROIC metric, and it does not apply to the TSR metric. Performance between threshold, target and maximum will be adjusted proportionately |
(b) | If to the Participant: To the address for the Participant as it appears on SunCoke’s records. |
SunCoke Energy, Inc. By: Its: | |
AGREED AND ACCEPTED: Participant Signature Print Name Date |
SunCoke 2016 - to 2018 Performance Goal | |||||
Threshold | Target | Maximum | |||
Weight | 0% | 100% | 200% | ||
Average Pre-Tax Return on Invested Capital (2016 - 2018) Coke, Logistics and Unallocated Corporate | 100% | 10.0% | 13.0% | 16.0% | |
Performance between threshold, target and maximum will be adjusted proportionately Multiplier: If the Committee determines that at any time during the Performance Period the closing price of the Company’s common stock equaled or exceeded $9.00 on any 15 trading days, the Award as adjusted pursuant to the chart above shall be multiplied by two (2), but shall be capped at 200% of the target Award. |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 of SunCoke Energy, Inc. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.g. |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 of SunCoke Energy, Inc. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
1. | This Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2016 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in this Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2016 fairly presents, in all material respects, the financial condition and results of operations of SunCoke Energy, Inc. for the periods presented therein. |
1. | This Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2016 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in this Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2016 fairly presents, in all material respects, the financial condition and results of operations of SunCoke Energy, Inc. for the periods presented therein. |
Mine or Operating Name/MSHA Identification Number | Section 104 S&S Citations (#)(2) | Section 104(b) Orders (#)(3) | Section 104(d) Citations and Orders (#)(4) | Section 110(b)(2) Violations (#)(5) | Section 107(a) Orders (#)(6) | Total Dollar Value of MSHA Assessments Proposed ($)(7) | Total Number of Mining Related Fatalities (#) | Received Notice of Pattern of Violations Under Section 104(e) (yes/no)(8) | Received Notice of Potential to Have Pattern Under Section 104(e) (yes/no)(9) | Legal Actions Pending as of Last Day of Period (#)(10)(11) | Legal Actions Initiated During Period (#)(12) | Legal Actions Resolved During Period (#)(13) | |
4406499/Dominion 7 | — | — | — | — | — | — | — | no | no | 2 | — | — | |
4406718/Dominion 26 | — | — | — | — | — | — | — | no | no | — | — | — | |
4406748/Dominion 30 | — | — | — | — | — | — | — | no | no | — | — | — | |
4406839/Dominion 34 | — | — | — | — | — | — | — | no | no | — | — | — | |
4406759/Dominion 36 | — | — | — | — | — | — | — | no | no | — | — | — | |
4407220/Mine 44 | — | — | — | — | — | — | — | no | no | — | — | — | |
4400649/ #2 Prep Plant | 1 | — | — | — | — | $100 | — | no | no | n/a | n/a | n/a | |
4406716/Central Shop | — | — | — | — | — | — | — | no | no | n/a | n/a | n/a | |
4407058/Heavy Equipment | — | — | — | — | — | — | — | no | no | n/a | n/a | n/a | |
4407239/Flat Rock | — | — | — | — | — | — | — | no | no | n/a | n/a | n/a | |
4407242/ Flat Rock Prep | 1 | — | — | — | — | $100 | — | no | no | n/a | n/a | n/a | |
4404296/Gardner | 3 | — | — | — | — | $300 | — | no | no | n/a | n/a | n/a | |
4406860/Raven | — | — | — | — | — | — | — | no | no | n/a | n/a | n/a | |
Total | 5 | — | — | — | — | $500 | — | — | — | 2 | — | — |
(1) | The table does not include the following: (i) facilities which have been idle or closed unless they received a citation or order issued by MSHA, (ii) permitted mining sites where we have not begun operations or (iii) mines that are operated on our behalf by contractors who hold the MSHA numbers and have the MSHA liabilities. |
(2) | Alleged violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard. |
(3) | Alleged failures to totally abate a citation within the period of time specified in the citation. |
(4) | Alleged unwarrantable failure (i.e., aggravated conduct constituting more than ordinary negligence) to comply with a mining safety standard or regulation. |
(5) | Alleged flagrant violations issued. |
(6) | Alleged conditions or practices which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated. |
(7) | Amounts shown include assessments proposed during the quarter ended March 31, 2016 and do not necessarily relate to the citations or orders reflected in this table. Assessments for citations or orders reflected in this table may be proposed by MSHA after March 31, 2016. |
(8) | Alleged pattern of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of coal or other mine health or safety hazards. |
(9) | Alleged potential to have a pattern of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of coal or other mine health or safety hazards. |
(10) | This number reflects legal proceedings which remain pending before the Federal Mine Safety and Health Review Commission (the “FMSHRC”) as of March 31, 2016. The pending legal actions may relate to the citations or orders issued by MSHA during the reporting period or to citations or orders issued in prior periods. The FMSHRC has jurisdiction to hear not only challenges to citations, orders, and penalties but also certain complaints by miners. The number of “pending legal actions” reported here reflects the number of contested citations, orders, penalties or complaints which remain pending as of March 31, 2016. |
(11) | The legal proceedings which remain pending before the FMSHRC as of March 31, 2016 are categorized as follows in accordance with the categories established in the Procedural Rules of the FMSHRC: |
Mine or Operating Name/MSHA Identification Number | Contests of Citations and Orders (#) | Contests of Proposed Penalties (#) | Complaints for Compensation (#) | Complaints for Discharge, Discrimination or Interference Under Section 105 (#) | Applications for Temporary Relief (#) | Appeals of Judges’ Decisions or Orders (#) |
4406499/Dominion 7 | — | — | — | — | — | 1 |
4406718/Dominion 26 | — | — | — | — | — | — |
4406748/Dominion 30 | — | — | — | — | — | — |
4406839/Dominion 34 | — | — | — | — | — | — |
4406759/Dominion 36 | — | — | — | — | — | — |
4407220/Dominion 44 | — | — | — | — | — | — |
4400649/ #2 Prep Plant | n/a | n/a | — | — | — | — |
4406716/Central Shop | n/a | n/a | — | — | — | — |
4407058/Heavy Equipment | n/a | n/a | — | — | — | — |
4407239/Flat Rock | n/a | n/a | — | — | — | — |
4407242/ Flat Rock Prep | n/a | n/a | — | — | — | — |
4404296/Gardner | n/a | n/a | — | — | — | — |
4406860/Raven | n/a | n/a | — | — | — | — |
Total | — | — | — | — | — | 1 |
(12) | This number reflects legal proceedings initiated before the FMSHRC during the quarter ended March 31, 2016 The number of “initiated legal actions” reported here may not have remained pending as of March 31, 2016. |
(13) | This number reflects legal proceedings before the FMSHRC that were resolved during the quarter ended March 31, 2016. |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Apr. 22, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SunCoke Energy, Inc. | |
Entity Central Index Key | 0001514705 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 64,160,088 |
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 12.6 | $ 0.4 |
Other comprehensive income (loss): | ||
Reclassifications of prior service benefit, actuarial loss amortization and curtailment gain to earnings (net of related tax expense of $1.6 million for the three months ended March 31, 2015) | 0.0 | (2.4) |
Currency translation adjustment | 0.4 | (1.1) |
Comprehensive income (loss) | 13.0 | (3.1) |
Less: Comprehensive income attributable to noncontrolling interests | 16.7 | 4.4 |
Comprehensive loss attributable to SunCoke Energy, Inc. | $ (3.7) | $ (7.5) |
Consolidated Statements of Comprehensive Loss (Parenthetical) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2015
USD ($)
| |
Statement of Comprehensive Income [Abstract] | |
Reclassifications of prior service benefit and actuarial loss, tax expense | $ 1.6 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 685.9 | $ 656.4 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares, issued (in shares) | 71,637,745 | 71,489,448 |
Treasury stock, shares (in shares) | 7,477,657 | 7,477,657 |
Consolidated Statements of Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Millions |
Total |
Common Stock |
Treasury Stock |
Additional Paid-In Capital |
Accumulated Other Comprehensive Loss |
Retained Earnings |
Total SunCoke Energy, Inc. Equity |
Noncontrolling Interests |
---|---|---|---|---|---|---|---|---|
Beginning balance, shares at Dec. 31, 2015 | 71,489,448 | 7,477,657 | ||||||
Beginning balance at Dec. 31, 2015 | $ 622.8 | $ 0.7 | $ (140.7) | $ 486.1 | $ (19.8) | $ (36.4) | $ 289.9 | $ 332.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 12.6 | (4.1) | (4.1) | 16.7 | ||||
Currency translation adjustment | 0.4 | 0.4 | 0.4 | |||||
Cash distribution to noncontrolling interests | (12.3) | (12.3) | ||||||
Share-based compensation expense | 1.7 | 1.7 | 1.7 | |||||
Share issuances, net of shares withheld for taxes, shares | 148,297 | |||||||
Share issuances, net of shares withheld for taxes | (0.5) | (0.5) | (0.5) | |||||
Ending balance, shares at Mar. 31, 2016 | 71,637,745.000000 | 7,477,657 | ||||||
Ending balance at Mar. 31, 2016 | $ 624.7 | $ 0.7 | $ (140.7) | $ 487.3 | $ (19.4) | $ (40.5) | $ 287.4 | $ 337.3 |
General |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | 1. General Description of Business SunCoke Energy, Inc. (“SunCoke Energy,” “Company,” "we," "our" and "us") is an independent owner and operator of five cokemaking facilities in the United States ("U.S."), which consists of our Haverhill Coke Company LLC ("Haverhill"), Middletown Coke Company, LLC ("Middletown"), Gateway Energy and Coke Company, LLC ("Granite City"), Jewell Coke Company, L.P. ("Jewell") and Indiana Harbor Coke Company ("Indiana Harbor") cokemaking facilities. Internationally, we operate a cokemaking facility in Brazil, in which we have a preferred stock investment. We also own and operate a Coal Logistics business, which provides coal handling and/or mixing services to third-party customers as well as to our own cokemaking facilities. Our Coal Logistics business consists of Convent Marine Terminal ("CMT"), Kanawha River Terminals LLC ("KRT") and SunCoke Lake Terminal, LLC ("Lake Terminal"). We have a cokemaking joint venture with VISA Steel Limited in India called VISA SunCoke Limited ("VISA SunCoke"). In 2015 we impaired our 49 percent investment in VISA SunCoke to zero, and consequently, beginning in the fourth quarter of 2015, we no longer include our share of VISA SunCoke in our financial results. Our consolidated financial statements include SunCoke Energy Partners, L.P. (the "Partnership"), a publicly-traded partnership. At March 31, 2016, we owned the general partner of the Partnership, which consists of a 2.0 percent ownership interest and incentive distribution rights, and owned a 53.9 percent limited partner interest in the Partnership. The remaining 44.1 percent interest in the Partnership was held by public unitholders. SunCoke is considered the primary beneficiary of the Partnership as it has the power to direct the activities that most significantly impact the Partnership's economic performance. Incorporated in Delaware in 2010 and headquartered in Lisle, Illinois, we became a publicly-traded company in 2011 and our stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “SXC.” Basis of Presentation The accompanying unaudited consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the U.S. (“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 period ended March 31, 2016 are not necessarily indicative of the operating results expected for the entire year. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015. New Accounting Pronouncements In April 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-10, "Revenue From Contracts With Customers (Topic 606): Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. It is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and permits early adoption on a limited basis. The Company is currently evaluating this ASU to determine its potential impact on the Company's financial condition, results of operations, or cash flows. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 simplifies the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. It is effective for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating this ASU to determine its potential impact on the Company's financial condition, results of operations, or cash flows. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)." ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. It is effective for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating this ASU to determine its potential impact on the Company's financial condition, results of operations, or cash flows. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 requires lessees to recognize 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 fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating this ASU to determine its potential impact on the Company's financial condition, results of operations, or cash flows. Reclassifications Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current year presentation. |
Coal Mining Business |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coal Mining Business | 2. Coal Mining Business During 2016, the Company successfully disposed of its coal mining business to Revelation Energy, LLC ("Revelation") who assumed substantially all of the Company's remaining coal mining assets, mineral leases, real estate and a substantial portion of our mining reclamation obligations. Under the terms of the divestiture agreement, which closed in April of 2016, Revelation received $10.3 million from the Company to take ownership of the assets and associated costs. See Note 18. The terms of this agreement were approved by the Company's Board of Directors in March 2016, and as a result, the assets and liabilities to be disposed of, or the disposal group, were presented as held for sale on the Consolidated Balance Sheet as of March 31, 2016. The Consolidated Balance Sheet as of December 31, 2015 has been reclassified to conform with current period presentation. During the first quarter of 2016, the Company recognized $9.2 million in net losses associated with this divestiture. This loss included an impairment charge of $10.7 million, which reduced the carrying value of the long-lived assets to be disposed of to zero based on the value implied by the terms of the divestiture agreement with Revelation. Partially offsetting the $10.7 million charge was a $1.5 million gain recognized in connection with the disposal of certain coal mining permits and related reclamation obligations in exchange for a $1.8 million payment made to Revelation in March 2016. This gain was recorded as a reduction to costs of products sold and operating expenses on the Consolidated Statements of Operations. The assets of the disposal group were previously reported as part of the Coal Mining reportable segment. Certain coal mining assets and liabilities, primarily coal inventory, were retained by the Company and continue to be included in the Coal Mining segment. Summarized below are the assets and liabilities of our coal business presented as held for sale on our Consolidated Balance Sheets:
|
Related Party Transactions |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 3. Related Party Transactions Our Coal Logistics business provides coal handling and storage services to Murray Energy Corporation ("Murray") and Foresight Energy LP ("Foresight"), who are related parties with The Cline Group. The Cline Group currently owns a 10.3 percent interest in the Partnership as part of the CMT acquisition. Additionally, Murray also holds a significant interest in Foresight. Coal Logistics recorded revenues derived from services provided to these related parties of $5.1 million for the three months ended March 31, 2016. At March 31, 2016, receivables from Murray and Foresight were $13.5 million, which were recorded in receivables on the Consolidated Balance Sheet, and deferred revenue for minimum volume payments was $8.7 million, which was recorded in accrued liabilities on the Consolidated Balance Sheet. Deferred revenue on take-or-pay contracts is recognized into GAAP income annually based on the terms of the contract. As part of the CMT acquisition, the Partnership withheld $21.5 million in cash to fund the completion of capital improvements at CMT. The cash withheld was recorded as restricted cash on the Consolidated Balance Sheet. During the first quarter of 2016, the Partnership amended an agreement with The Cline Group, which unrestricted $6.0 million of the restricted cash and relieved any obligation of the Partnership to repay these amounts to The Cline Group. The remaining restricted cash balance as of March 31, 2016 of $10.3 million is primarily related to the new state-of-the-art ship loader, which will allow for faster coal loading onto larger ships. Additionally, the Partnership amended the contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability from $7.9 million at December 31, 2015 to $4.2 million at March 31, 2016, with the resulting $3.7 million gain recognized as a reduction to costs of products sold and operating expenses on the Consolidated Statements of Operations during the three months ended March 31, 2016. See Note 15. |
Inventories |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | 4. Inventories The components of inventories were as follows:
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | 5. Goodwill and Other Intangible Assets Goodwill allocated to SunCoke's reportable segments as of March 31, 2016 and changes in the carrying amount of goodwill during the three months ended March 31, 2016 were as follows:
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. There were no events or circumstances in the first quarter of 2016 that would, more likely than not, reduce the fair value of a reporting unit to below its carrying value. The components of gross and net intangible assets were as follows:
Total amortization expense for intangible assets subject to amortization was $2.7 million and $0.4 million for the three months ended March 31, 2016 and 2015, respectively. Based on the carrying value of the finite-lived intangible assets as of March 31, 2016, we estimated amortization expense for each of the next five years as follows:
(1) Excludes amortization expense recorded during three months ended March 31, 2016. |
Income Taxes |
3 Months Ended |
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Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. 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 Company's effective tax rate for the three months ended March 31, 2016 was 20.8 percent, as compared to the 35 percent federal statutory rate, primarily due to the impact of earnings attributable to noncontrolling ownership interests in partnerships, partially offset by income tax expense of $0.8 million related to the reversal of the deferred tax asset for equity compensation previously recorded. The Company’s effective tax rate for three months ended March 31, 2015 was 50.0 percent, as compared to the 35 percent federal statutory rate, primarily due to income tax expense of $2.2 million related to additional valuation allowances associated with state and local taxes, offset by income tax benefit of $1.4 million related to the January 2015 dropdown of a 75 percent interest in Granite City ("Granite City Dropdown") and the impact of earnings attributable to noncontrolling ownership interests in partnerships. On January 17, 2012, SunCoke Energy and Sunoco, Inc. entered into a tax sharing agreement that governs the parties’ respective rights, responsibilities and obligations with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and other matters regarding taxes. SunCoke Energy will continue to monitor the utilization of all tax attributes subject to the tax sharing agreement as applicable tax returns are filed or as tax examinations progress and will record additional adjustments when necessary, consistent with the terms of the tax sharing agreement. |
Accrued Liabilities |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consisted of the following:
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 8. Debt Total debt, including the current portion of long-term debt, consisted of the following:
During the first quarter of 2016, the Partnership continued de-levering its balance sheet and repurchased $52.8 million face value of outstanding Partnership Notes for $32.6 million in the open market. This resulted in a $20.4 million gain on extinguishment of debt, which included a write-off of $0.2 million of unamortized original issue premium, net of unamortized debt issuance costs. During the first quarter of 2016, as a result of continued overall depressed coal market conditions and the Company’s credit downgrade in late 2015, the Company issued $30.8 million of letters of credit as collateral to its surety providers. These letters of credit were issued in connection with certain contractual obligations, including reclamation obligations, black lung, workers’ compensation, general liability and other financial guarantee obligations. These letters of credit lower the Company's borrowing availability under the Revolving Facility. As of March 31, 2016, the Revolving Facility had letters of credit outstanding of $33.6 million and an outstanding balance of $60.4 million, leaving $56.0 million available subject to the terms of the Credit Agreement. During the first quarter of 2016, the Partnership issued $1.5 million of letters of credit as collateral to its surety providers in connection with workers' compensation, general liability and other financial guarantee obligations. These letters of credit lower the Partnership's borrowing availability under the Partnership Revolver. At March 31, 2016, the Partnership Revolver had $1.5 million of letters of credit outstanding and an outstanding balance of $182.0 million, leaving $66.5 million available. The Partnership repaid $0.3 million of the Promissory Note on March 31, 2016, in accordance with the Promissory Note repayment schedule. Covenants The Company and the Partnership are subject to certain debt covenants that, among other things, limit the Company's and Partnership’s ability and the ability of certain of the Company's and the Partnership’s subsidiaries to (i) incur indebtedness, (ii) pay dividends or make other distributions, (iii) prepay, redeem or repurchase certain debt, (iv) make loans and investments, (v) sell assets, (vi) incur liens, (vii) enter into transactions with affiliates and (viii) consolidate or merge. These covenants are subject to a number of exceptions and qualifications set forth in the respective agreements. Additionally, under the terms of the credit agreement, the Company is subject to a maximum consolidated leverage ratio of 3.25 to 1.00, calculated by dividing total debt by EBITDA as defined by the credit agreement, and a minimum consolidated interest coverage ratio of 2.75 to 1.00, calculated by dividing EBITDA by interest expense as defined by the credit agreement. Under the terms of the Partnership Revolver, the Partnership is subject to a maximum consolidated leverage ratio of 4.50 to 1.00, calculated by dividing total debt by EBITDA as defined by the Partnership Revolver, and a minimum consolidated interest coverage ratio of 2.50 to 1.00, calculated by dividing EBITDA by interest expense as defined by the Partnership Revolver. The Partnership Term Loan has the same covenants as the previously discussed Partnership Revolver covenants. Under the terms of the promissory agreement, Raven Energy LLC, a wholly-owned subsidiary of the Partnership, is subject to a maximum leverage ratio of 5.00:1.00 for any fiscal quarter ending prior to August 12, 2018, calculated by dividing total debt by EBITDA as defined by the promissory agreement. For any fiscal quarter ending on or after August 12, 2018, the maximum leverage ratio is 4.50:1.00. Additionally, in order to make restricted payments, Raven Energy LLC is subject to a fixed charge ratio of greater than 1.00:1.00, calculated by dividing EBITDA by fixed charges as defined by the promissory agreement. 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 Revolving Facility, Partnership Revolver, Partnership Term Loan and Promissory Note 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 $20 million. We do not anticipate any violation of these covenants nor do we anticipate that any of these covenants will restrict our operations or our ability to obtain additional financing. As of March 31, 2016, the Company and the Partnership were in compliance with all applicable debt covenants contained in the credit agreement and promissory agreement. 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. |
Retirement Benefits Plans |
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Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits Plans | 9. Retirement Benefits Plans The Company has plans which provide health care and life insurance benefits for many of its retirees (“postretirement benefit plans”). The postretirement benefit plans are unfunded and the costs are borne by the Company. The termination of coal mining employees during the first quarter of 2015 triggered a postretirement benefit plan curtailment gain of $4.0 million, which represented accelerated amortization of prior service credits previously recorded in accumulated other comprehensive income. Postretirement benefit plans expense (benefit) consisted of the following components:
Defined Contribution Plans The Company has defined contribution plans which provide retirement benefits for certain of its employees. The Company’s contributions, which are principally based on the Company’s pretax income and the aggregate compensation levels of participating employees and are charged against income as incurred, amounted to $1.6 million and $1.8 million for the three months ended March 31, 2016 and 2015, respectively. |
Commitments and Contingent Liabilities |
3 Months Ended |
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Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 10. Commitments and Contingent Liabilities SunCoke Energy is party to an omnibus agreement pursuant to which we will provide remarketing efforts to the Partnership upon the occurrence of certain potential adverse events under certain coke sales agreements, indemnification of certain environmental costs and preferential rights for growth opportunities. The United States Environmental Protection Agency (the “EPA”) has issued Notices of Violations (“NOVs”) for our Haverhill and Granite City cokemaking facilities which stem from alleged violations of our air emission 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 decree in federal district court with these parties. The consent decree includes a $2.2 million civil penalty payment, which was paid in December 2014, as well as capital projects already underway to improve the reliability of the energy recovery systems and enhance environmental performance at the Haverhill and Granite City facilities. We anticipate spending approximately $130 million related to these projects, of which we have spent approximately $90 million to date. The remaining capital is expected to be spent through the first quarter of 2019. A portion of the proceeds from the Partnership offering and subsequent dropdowns are being used to fund $119 million of these environmental remediation projects. SunCoke Energy has also received NOVs, a Finding of Violation ("FOV"), and information requests from the EPA related to our Indiana Harbor cokemaking facility. After initial discussions with the EPA and the Indiana Department of Environmental Management (“IDEM”), resolution of the NOVs was postponed by mutual agreement because of ongoing discussions regarding the NOVs at Haverhill and Granite City. In January 2012, the Company began working in a cooperative manner to address the allegations with the EPA, the IDEM and Cokenergy, Inc., an independent power producer that owns and operates an energy facility, including heat recovery equipment and a flue gas desulfurization system, that processes hot flue gas from our Indiana Harbor facility to produce steam and electricity and to reduce the sulfur and particulate content of such flue gas. The parties are meeting regularly in 2016. Capital projects are underway to address items that may be required in conjunction with a settlement of the NOVs. Settlement may require payment of a penalty for alleged past violations as well as undertaking capital projects to enhance reliability and environmental performance. At this time, SunCoke Energy cannot yet assess any additional injunctive relief or potential monetary penalty and any potential future citations. The Company is unable to determine a range of probable or reasonably possible loss. The Company 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 Company. Management of the Company believes that any liability which may arise from claims would not have a material adverse impact on our consolidated financial statements. |
Restructuring |
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Restructuring | 11. Restructuring In connection with the restructuring of our Coal Mining business, the Company recorded $10.2 million of employee-related restructuring costs prior to December 31, 2015 within our Coal Mining segment. An additional $0.2 million of severance was recorded in the first quarter of 2016 in connection with the disposition of the coal business in April 2016. In the third and fourth quarter of 2015, we reduced the workforce in our corporate office and incurred total charges of $2.3 million and $1.8 million, respectively, in Corporate and Other. The following table presents accrued restructuring and related activity for Coal Mining and Corporate and Other as of and for the three months ended March 31, 2016, which is included in accrued liabilities on the Consolidated Balance Sheet:
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Share-Based Compensation |
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Share-Based Compensation | 12. Share-Based Compensation Equity Awards During the three months ended March 31, 2016, we granted share-based compensation to eligible participants under the SunCoke Energy, Inc. Long-Term Performance Enhancement Plan (“SunCoke LTPEP”). Stock Options We granted the following stock options to purchase shares of common stock during the three months ended March 31, 2016 with an exercise price equal to the closing price of our common stock on the date of grant.
The stock options vest in three equal annual installments beginning one year from the date of grant. In order to become exercisable, the performance based options also require the closing price of the Company's common stock to reach or exceed $9.50 for any 15 trading days during the three-year period beginning on the grant date. The stock options expire ten years from the date of grant. All awards vest immediately upon a change in control and a qualifying termination of employment as defined by the SunCoke LTPEP. The Company calculates the value of each employee stock option, estimated on the date of grant, using the Black-Scholes option pricing model with a Monte Carlo simulation for the performance based options. The weighted-average fair value of employee stock options granted during the three months ended March 31, 2016 was based on using the following weighted-average assumptions:
The risk-free interest rate assumption is based on the U.S. Treasury yield curve at the date of grant for periods which approximate the expected life of the option. The expected term of the employee options represent the average contractual term adjusted by the average vesting period of each option tranche. We based our expected volatility on our historical volatility over our entire available trading history. The dividend yield assumption is based on the Company’s expectation of dividend payouts at the time of grant. The Company estimated a 16 percent forfeiture rate for options, excluding those issued to certain executive employees, which were estimated at a zero percent forfeiture rate. This estimated forfeiture rate may be revised in subsequent periods if the actual forfeiture rate differs. The Company recognized compensation expense of $0.5 million and $0.6 million for stock options during the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there was $2.4 million of total unrecognized compensation cost related to nonvested stock options. This compensation cost is expected to be recognized over the next 1.3 years. Restricted Stock Units Settled in Shares The Company did not issue any restricted stock units (“RSUs”) for shares of the Company’s common stock during the three months ended March 31, 2016. The Company recognized compensation expense of $0.9 million for RSUs during both the three months ended March 31, 2016 and 2015, respectively. The Company estimated an 18 percent forfeiture rate for these awards, excluding those issued to certain executive employees, which were estimated at a zero percent forfeiture rate. This estimated forfeiture rate may be revised in subsequent periods if the actual forfeiture rate differs. As of March 31, 2016, there was $2.9 million of total unrecognized compensation cost related to nonvested RSUs. This compensation cost is expected to be recognized over the next 1.5 years. All awards vest immediately upon a change in control and a qualifying termination of employment as defined by the SunCoke LTPEP. Performance Share Units The Company granted the following performance share units ("PSUs") for shares of the Company's common stock during the three months ended March 31, 2016 that vest on December 31, 2018:
(1) The number of PSU's ultimately awarded will be determined by the Company's three year average pre-tax return on capital for the Company's Coke and Coal Logistics business. If at any time during the vesting period the closing price of the Company's common stock equals or exceeds $9.00 per share for any 15 trading days, the pre-tax return on capital portion of the award, as adjusted, will be multiplied by two. (2) The number of PSU's ultimately awarded will be determined by the Company's three year total shareholder return ("TSR") as compared to the TSR of the companies making up the S&P 600. (3) The final vesting value of the TSR portion of this award cannot exceed $4.9 million. Each portion of the award may vest between zero and 200 percent of the original units granted. All awards vest immediately upon a change in control and a qualifying termination of employment as defined by the SunCoke LTPEP. The fair value of the PSUs granted during the three months ended March 31, 2016 is based on the closing price of our common stock on the date of grant as well as a Monte Carlo simulation for the portion of the award subject to a market condition. The Company estimated a zero percent forfeiture rate for these awards. This estimated forfeiture rate may be revised in subsequent periods if the actual forfeiture rate differs. The Company recognized compensation expense of $0.3 million and $0.2 million for PSUs during the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there was $4.0 million of total unrecognized compensation cost related to nonvested PSUs. This compensation cost is expected to be recognized over the next 2.6 years. Liability Classified Awards Restricted Stock Units Settled in Cash The Company issued 196,908 restricted stock units to be settled in cash ("Cash RSUs") during the three months ended March 31, 2016 that vest in three annual installments beginning one year from the grant date. All awards vest immediately upon a change in control and a qualifying termination of employment as defined by the SunCoke LTPEP. The weighted average grant date fair value of the Cash RSUs granted during the three months ended March 31, 2016 was $3.80 and was based on the closing price of our common stock on the day of grant. The Company estimated an 18 percent forfeiture rate for these awards. This estimated forfeiture rate may be revised in subsequent periods if the actual forfeiture rate differs. The Cash RSU liability at March 31, 2016 was recorded based on the closing price of our common stock on March 31, 2016 of $6.50 per share. The Cash RSU liability at March 31, 2016 and the related compensation expense recognized during the three months then ended were not material. As of March 31, 2016, there was $1.0 million of total unrecognized compensation cost related to nonvested Cash RSUs. This compensation cost is expected to be recognized over the next 2.5 years. Cash Incentive Award The Company also granted share-based compensation to eligible participants under the SunCoke Energy, Inc. Long-Term Cash Incentive Plan ("SunCoke LTCIP"), which became effective January 1, 2016. SunCoke LTCIP is designed to provide for performance-based, cash-settled awards. The Company issued a grant date fair value award of $0.9 million during the three months ended March 31, 2016 that vest on December 31, 2018. All awards vest immediately upon a change in control and a qualifying termination of employment as defined by the SunCoke LTCIP. The ultimate award value will be adjusted based upon the Company's three year average pre-tax return on capital for the Company's Coke and Coal Logistics business, and if at any time during the vesting period the closing price of the Company's common stock equals or exceeds $9.00 per share for any 15 trading days, the award, as adjusted, will be multiplied by two, but will be capped at 200 percent of the target award. The Company estimated a 16 percent forfeiture rate for these awards. This estimated forfeiture rate may be revised in subsequent periods if the actual forfeiture rate differs. The cash incentive award liability at March 31, 2016 was recorded based on the Company's adjusted three year average pre-tax return on capital for the Company's Coke and Coal Logistics business and a Monte Carlo simulation for the market multiplier. The cash incentive award liability at March 31, 2016 and the related compensation expense recognized during the three months then ended were not material. As of March 31, 2016, there was $0.7 million of total unrecognized compensation cost related to nonvested awards. This compensation cost is expected to be recognized over the next 2.8 years. |
Earnings per Share |
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Earnings per Share | 13. Earnings per Share Basic earnings per share has been computed by dividing net (loss) income available to SunCoke Energy, Inc. by the weighted average number of shares outstanding during the period. Except where the result would be anti-dilutive, diluted earnings per share has been computed to give effect to share-based compensation awards using the treasury stock method. The following table sets forth the reconciliation of the weighted-average number of common shares used to compute basic earnings per share (“EPS”) to those used to compute diluted EPS:
The following table shows stock options, restricted stock units, and performance stock units that are excluded from the computation of diluted earnings per share as the shares would have been anti-dilutive:
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Supplemental Accumulated Other Comprehensive Loss Information |
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Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Accumulated Other Comprehensive Loss Information | 14. Supplemental Accumulated Other Comprehensive Loss Information Changes in accumulated other comprehensive loss, by component, are presented below:
Reclassifications out of the accumulated other comprehensive loss were as follows:(1)
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Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value Measurement | 15. Fair Value Measurement The Company 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 from the sale of 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:
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 Company's cash equivalents, which amounted to $2.0 million and $15.4 million at March 31, 2016 and December 31, 2015, respectively, were 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. CMT Contingent Consideration In connection with the CMT acquisition, the Partnership entered into a contingent consideration arrangement that requires the Partnership to make future payments to The Cline Group based on future volume over a specified threshold, price, and contract renewals. During the first quarter of 2016, the Partnership amended the contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability to $4.2 million at March 31, 2016. The contingent consideration liability is included in other deferred credits and liabilities on the Consolidated Balance Sheet. 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 coal 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. Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). The Company's Board of Directors approved the divestiture of the Company's coal mining business in March of 2016, and as a result, the disposal group is presented as held for sale on the Consolidated Balance Sheet as of March 31, 2016. Based on the value implied by terms of the agreement, the Company recorded an impairment charge of $10.7 million during the first quarter of 2016, which reduced the carrying value of the long-lived assets within the disposal group to zero. Note 2. Certain Financial Assets and Liabilities not Measured at Fair Value At March 31, 2016, the fair value of the Company’s total debt was estimated to be $799.5 million, compared to a carrying amount of $950.7 million. The fair value was estimated by management based upon estimates of debt pricing provided by financial institutions, which are considered Level 2 inputs. |
Business Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | 16. Business Segment Information The Company reports its business through four segments: Domestic Coke, Brazil Coke, Coal Logistics and Coal Mining. The Domestic Coke segment includes the Jewell, Indiana Harbor, Haverhill, Granite City and Middletown cokemaking facilities. Each of these facilities produces coke, and all facilities except Jewell and Indiana Harbor recover waste heat, which is converted to steam or electricity through a similar production process. Steam is sold to third-party customers primarily pursuant to steam supply and purchase agreements. Electricity is sold into the regional power market or to AK Steel pursuant to energy sales agreements. Coke sales at each of the Company's five domestic cokemaking facilities are made pursuant to long-term, take-or-pay agreements with ArcelorMittal, AK Steel, and U.S. Steel. Each of the coke sales agreements contains pass-through provisions for costs incurred in the cokemaking process, including coal procurement costs (subject to meeting contractual coal-to-coke yields), operating and maintenance expense, costs related to the transportation of coke to the customers, taxes (other than income taxes) and costs associated with changes in regulation, in addition to containing a fixed fee. The Brazil Coke segment operates a cokemaking facility located in Vitória, Brazil for a project company. The Brazil Coke segment earns income from the Brazilian facility through (1) licensing and operating fees payable to us under long-term contracts with the local project company that will run through at least 2022; and (2) an annual preferred dividend on our preferred stock investment from the project company guaranteed by the Brazil subsidiary of ArcelorMittal. Coal Logistics operations are comprised of CMT located in Louisiana, KRT located in Kentucky and West Virginia, and Lake Terminal, located in Indiana. This business provides coal handling and/or mixing services to third-party customers as well as SunCoke cokemaking facilities and has a collective capacity to mix and transload more than 40 million tons of coal annually and has storage capacity of 3 million tons. Coal handling and mixing results are presented in the Coal Logistics segment. Until April 2016 when the business was divested, the Coal Mining segment conducted coal mining operations near the Company’s Jewell cokemaking facility with mines located in Virginia and West Virginia, which were mined by contractors. Prior to April 2016, a substantial portion of the coal production was sold to the Jewell cokemaking facility for conversion into coke. Some coal was also sold to other cokemaking facilities within the Domestic Coke segment. Historically, intersegment Coal Mining revenues for coal sales to the Domestic Coke segment were reflective of the contract price that the facilities within the Domestic Coke segment charge their customers, which approximated the market prices for this quality of metallurgical coal. In 2016, the Company transitioned to a 100 percent purchased third-party coal model, which resulted in a shift of coal transportation costs from the Coal Mining segment to the Domestic Coke segment beginning in the first quarter of 2016. These additional transportation costs are included in the intersegment Coal Mining revenues to Domestic Coke. It is impracticable to show the impacts of this change in our coal procurement model in segment results on a comparable basis. Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other, including certain legacy coal mining expenses (i.e. black lung, workers' compensation and other postretirement employee benefit obligations). These legacy costs are included in Corporate and Other Adjusted EBITDA. Interest expense, net, which consists principally of interest income and interest expense, net of capitalized interest, and gains and losses on extinguishment of debt are also excluded from segment results. Segment assets, net of tax are those assets utilized within a specific segment and exclude current tax receivables and assets held for sale. 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:
(1) Legacy costs, net, include costs associated with former mining employee-related liabilities, net of certain royalty revenues. See details of these legacy items below.
(2) The Company revised the estimated useful lives on certain assets at its domestic cokemaking facilities, resulting in additional depreciation of $2.3 million and $1.1 million, or $0.04 and $0.02 per common share from operations, during the three months ended March 31, 2016 and 2015, respectively. (3) The Company revised the estimated useful lives of certain coal preparation plant assets in its Coal Mining segment, which resulted in additional depreciation of $0.5 million and $2.0 million, or $0.01 and $0.03 per common share, during the three months ended March 31, 2016 and 2015, respectively. The following table sets forth the Company’s total sales and other operating revenue by product or service:
The following table sets forth the Company's segment assets:
(1) Coal mining assets retained by the Company consist of certain working capital items, including coal inventory of $5.0 million and $3.3 million at March 31, 2016 and December 31, 2015, respectively. The Company evaluates the performance of its segments based on segment Adjusted EBITDA, which is defined as earnings before interest, (gain) loss on extinguishment of debt, taxes, depreciation and amortization (“EBITDA”), adjusted for impairments, coal rationalization costs, Coal Logistics deferred revenue, changes to our contingent consideration liability related to our acquisition of CMT, and interest, taxes, depreciation and amortization attributable to our equity method investment. Coal Logistics deferred revenue adjusts for coal and liquid tons the Partnership did not handle, but are included in Adjusted EBITDA as the associated take-or-pay fees are billed to the customer. Deferred revenue on take-or-pay contracts is recognized into GAAP income annually based on the terms of the contract. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives 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 Company'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 a substitute for 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:
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:
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Supplemental Condensed Consolidating Financial Information |
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Supplemental Condensed Consolidating Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Condensed Consolidating Financial Information | 17. Supplemental Condensed Consolidating Financial Information Certain 100 percent owned subsidiaries of the Company serve as guarantors of the obligations under the Credit Agreement and $44.6 million of Notes (“Guarantor Subsidiaries”). These guarantees are full and unconditional (subject, in the case of the Guarantor Subsidiaries, to customary release provisions as described below) and joint and several. For purposes of the following footnote, SunCoke Energy, Inc. is referred to as “Issuer.” The indenture dated July 26, 2011 among the Company, the guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., governs subsidiaries designated as “Guarantor Subsidiaries.” All other consolidated subsidiaries of the Company are collectively referred to as “Non-Guarantor Subsidiaries.” The ability of the Partnership and Indiana Harbor to pay dividends and make loans to the Company is restricted under the partnership agreements of the Partnership and Indiana Harbor, respectively. The credit agreement governing the Partnership’s credit facility and the indenture governing the Partnership Notes contain customary provisions which would potentially restrict the Partnership’s ability to make distributions or loans to the Company under certain circumstances. For the year ended December 31, 2015, less than 25 percent of net assets were restricted. Additionally, in 2015, the Company's Board of Directors designated certain coal mining entities as unrestricted subsidiaries. As such, all the subsidiaries described above are presented as "Non-Guarantor Subsidiaries." There have been no changes to the "Guarantor Subsidiaries" and "Non-Guarantor Subsidiaries" during the first quarter of 2016. The guarantee of a Guarantor Subsidiary will terminate upon:
The following supplemental condensed combining and consolidating financial information reflects the Issuer’s separate accounts, the combined accounts of the Guarantor Subsidiaries, the combined accounts of the Non-Guarantor Subsidiaries, the combining and consolidating adjustments and eliminations and the Issuer’s consolidated accounts for the dates and periods indicated. For purposes of the following condensed combining and consolidating information, the Issuer’s investments in its subsidiaries and the Guarantor and Non-Guarantor Subsidiaries’ investments in its subsidiaries are accounted for under the equity method of accounting. SunCoke Energy, Inc. Condensed Consolidating Statement of Operations Three Months Ended March 31, 2016 (Dollars in millions)
SunCoke Energy, Inc. Condensed Consolidating Statement of Operations Three months ended March 31, 2015 (Dollars in millions)
SunCoke Energy, Inc. Condensed Consolidating Balance Sheet March 31, 2016 (Dollars in millions, except per share amounts)
SunCoke Energy, Inc. Condensed Consolidating Balance Sheet December 31, 2015 (Dollars in millions, except per share amounts)
SunCoke Energy, Inc. Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2016 (Dollars in millions)
SunCoke Energy, Inc. Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2015 (Dollars in millions)
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Subsequent Events |
3 Months Ended |
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Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events On April 6, 2016, the Company completed its divestiture of its coal mining business to Revelation in a transaction that includes substantially all of its remaining coal mining assets, mineral leases, real estate and a substantial portion of its mining reclamation obligations. Under the terms of the deal, Revelation received $10.3 million from the Company to take ownership of the assets and associated costs. In addition to the $9.2 million net loss recorded during the first quarter of 2016 (see Note 2), the transaction is expected to result in additional losses of approximately $7 million in second quarter of 2016, which include approximately $2 million of additional anticipated transaction-related costs from the deal. In conjunction with the transaction, Revelation and SunCoke’s Jewell cokemaking operations have entered into a coal supply agreement whereby Revelation will supply approximately 300,000 tons of coal to Jewell Coke annually for the next five years at a market rate. The delivered cost, as compared to alternative coal sources, is favorable due to the proximity of the Jewell cokemaking facility to the mine. The Company expects to relieve approximately $10 million of letters of credit as a result of the divestiture of its coal mining business. |
General (Policies) |
3 Months Ended |
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Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In April 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-10, "Revenue From Contracts With Customers (Topic 606): Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. It is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and permits early adoption on a limited basis. The Company is currently evaluating this ASU to determine its potential impact on the Company's financial condition, results of operations, or cash flows. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 simplifies the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. It is effective for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating this ASU to determine its potential impact on the Company's financial condition, results of operations, or cash flows. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)." ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. It is effective for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating this ASU to determine its potential impact on the Company's financial condition, results of operations, or cash flows. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 requires lessees to recognize 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 fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating this ASU to determine its potential impact on the Company's financial condition, results of operations, or cash flows. |
Coal Mining Business (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The assets of the disposal group were previously reported as part of the Coal Mining reportable segment. Certain coal mining assets and liabilities, primarily coal inventory, were retained by the Company and continue to be included in the Coal Mining segment. Summarized below are the assets and liabilities of our coal business presented as held for sale on our Consolidated Balance Sheets:
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Inventories (Tables) |
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of inventories | The components of inventories were as follows:
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Goodwill and Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Goodwill allocated to SunCoke's reportable segments as of March 31, 2016 and changes in the carrying amount of goodwill during the three months ended March 31, 2016 were as follows:
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Schedule of Finite-Lived Intangible Assets | The components of gross and net intangible assets were as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the carrying value of the finite-lived intangible assets as of March 31, 2016, we estimated amortization expense for each of the next five years as follows:
(1) Excludes amortization expense recorded during three months ended March 31, 2016. |
Accrued Liabilities (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | Accrued liabilities consisted of the following:
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Debt (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt, including the current portion of long-term debt | Total debt, including the current portion of long-term debt, consisted of the following:
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Retirement Benefits Plans (Tables) |
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Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postretirement benefit plans benefit | Postretirement benefit plans expense (benefit) consisted of the following components:
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Restructuring (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The following table presents accrued restructuring and related activity for Coal Mining and Corporate and Other as of and for the three months ended March 31, 2016, which is included in accrued liabilities on the Consolidated Balance Sheet:
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Share-Based Compensation (Tables) |
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Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | We granted the following stock options to purchase shares of common stock during the three months ended March 31, 2016 with an exercise price equal to the closing price of our common stock on the date of grant.
The Company granted the following performance share units ("PSUs") for shares of the Company's common stock during the three months ended March 31, 2016 that vest on December 31, 2018:
(1) The number of PSU's ultimately awarded will be determined by the Company's three year average pre-tax return on capital for the Company's Coke and Coal Logistics business. If at any time during the vesting period the closing price of the Company's common stock equals or exceeds $9.00 per share for any 15 trading days, the pre-tax return on capital portion of the award, as adjusted, will be multiplied by two. (2) The number of PSU's ultimately awarded will be determined by the Company's three year total shareholder return ("TSR") as compared to the TSR of the companies making up the S&P 600. (3) The final vesting value of the TSR portion of this award cannot exceed $4.9 million. |
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Weighted-average assumptions | The weighted-average fair value of employee stock options granted during the three months ended March 31, 2016 was based on using the following weighted-average assumptions:
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Earnings per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the weighted-average number of common shares used to compute basic earnings per share ("EPS") to those used to compute diluted EPS | The following table sets forth the reconciliation of the weighted-average number of common shares used to compute basic earnings per share (“EPS”) to those used to compute diluted EPS:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table shows stock options, restricted stock units, and performance stock units that are excluded from the computation of diluted earnings per share as the shares would have been anti-dilutive:
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Supplemental Accumulated Other Comprehensive Loss Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in the balance of accumulated other comprehensive loss, by component | Changes in accumulated other comprehensive loss, by component, are presented below:
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Schedule of the impact on net income of reclassification adjustments from accumulated other comprehensive loss | Reclassifications out of the accumulated other comprehensive loss were as follows:(1)
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Business Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business segment information | 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:
(1) Legacy costs, net, include costs associated with former mining employee-related liabilities, net of certain royalty revenues. See details of these legacy items below.
(2) The Company revised the estimated useful lives on certain assets at its domestic cokemaking facilities, resulting in additional depreciation of $2.3 million and $1.1 million, or $0.04 and $0.02 per common share from operations, during the three months ended March 31, 2016 and 2015, respectively. (3) The Company revised the estimated useful lives of certain coal preparation plant assets in its Coal Mining segment, which resulted in additional depreciation of $0.5 million and $2.0 million, or $0.01 and $0.03 per common share, during the three months ended March 31, 2016 and 2015, respectively. The following table sets forth the Company’s total sales and other operating revenue by product or service:
The following table sets forth the Company's segment assets:
(1) Coal mining assets retained by the Company consist of certain working capital items, including coal inventory of $5.0 million and $3.3 million at March 31, 2016 and December 31, 2015, respectively. |
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Reconciliation of Adjusted EBITDA to net income | 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:
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Supplemental Condensed Consolidating Financial Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Condensed Consolidating Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statement of Income | SunCoke Energy, Inc. Condensed Consolidating Statement of Operations Three Months Ended March 31, 2016 (Dollars in millions)
SunCoke Energy, Inc. Condensed Consolidating Statement of Operations Three months ended March 31, 2015 (Dollars in millions)
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Condensed Consolidating Balance Sheet | SunCoke Energy, Inc. Condensed Consolidating Balance Sheet March 31, 2016 (Dollars in millions, except per share amounts)
SunCoke Energy, Inc. Condensed Consolidating Balance Sheet December 31, 2015 (Dollars in millions, except per share amounts)
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Condensed Consolidating Statement of Cash Flows | SunCoke Energy, Inc. Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2016 (Dollars in millions)
SunCoke Energy, Inc. Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2015 (Dollars in millions)
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General (Details) - Cokemaking_facility |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of Facilities | 5 | ||
Segment Reporting Information [Line Items] | |||
Ownership percentage | 100.00% | ||
Ownership interest of general partnership (as a percent) | 2.00% | ||
Interest in partnership (as a percent) | 53.90% | ||
Ownership interest, public (as a percent) | 44.10% | ||
VISA SunCoke Limited | |||
Segment Reporting Information [Line Items] | |||
Ownership percentage | 0.00% | 49.00% |
Inventories (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Components of inventories | ||
Coal | $ 64.5 | $ 76.5 |
Coke | 6.7 | 8.8 |
Materials, supplies and other | 36.5 | 36.5 |
Total inventories | $ 107.7 | $ 121.8 |
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | $ 71.1 |
Goodwill adjustments | (0.6) |
Goodwill, end of period | 70.5 |
Domestic Coke | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 3.4 |
Goodwill adjustments | 0.0 |
Goodwill, end of period | 3.4 |
Coal Logistics | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 67.7 |
Goodwill adjustments | (0.6) |
Goodwill, end of period | $ 67.1 |
Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Total amortization expense | $ 2.7 | $ 0.4 |
Goodwill and Other Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2016 | $ 8.4 | |
2017 | 11.1 | |
2018 | 11.1 | |
2019 | 10.9 | |
2020 | 10.7 | |
2021-Thereafter | 135.3 | |
Total | $ 187.5 | $ 190.2 |
Income Taxes (Details Textual) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Jan. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Effective income tax rate (as a percent) | 20.80% | 50.00% | |
Federal statutory tax rate (as a percent) | 35.00% | 35.00% | |
Expense (benefit) due to reversal of deferred tax asset | $ 0.8 | ||
Expense (benefit) due to additional valuation allowances with state and local taxes | $ (2.2) | ||
Expense (benefit) due to sale of business | $ (1.4) | ||
Granite City | SunCoke Energy Partners, L.P. | |||
Income Tax, Reconciliation of Statutory Rate to Effective Rate [Line Items] | |||
Interest acquired (as a percent) | 75.00% |
Accrued Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Accrued benefits | $ 17.1 | $ 20.3 |
Other taxes payable | 10.5 | 8.4 |
Accrued severance | 3.0 | 4.7 |
Deferred revenue | 11.3 | 2.1 |
Current portion of black lung liability | 5.2 | 5.2 |
Other | 8.3 | 4.3 |
Total accrued liabilities | $ 55.4 | $ 45.0 |
Retirement Benefits Plans (Details Textual) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Defined contribution plan matching contribution | $ 1.6 | $ 1.8 |
Other Segments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Curtailment gain | $ 4.0 |
Retirement Benefits Plans - Postretirement Benefit Plans Expense (Benefit) (Details) - Postretirement Benefit Plans - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Postretirement benefit plans benefit | ||
Interest cost on benefit obligations | $ 0.3 | $ 0.3 |
Amortization of: | ||
Actuarial losses | 0.2 | 0.2 |
Prior service benefit | (0.2) | (0.4) |
Curtailment gain | 0.0 | (4.0) |
Postretirement benefit plans benefit | $ 0.3 | $ (3.9) |
Commitments and Contingent Liabilities (Details) - Haverhill and Granite City - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2014 |
|
Loss Contingencies [Line Items] | ||
Estimate possible loss | $ 2.2 | |
Anticipated spending on environmental remediation project | $ 130.0 | |
Actual spending for environmental remediation project | 90.0 | |
Environmental remediation expense | $ 119.0 |
Restructuring Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 0.2 | |||
Coal Mining | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 0.2 | |||
Coal Mining | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 0.2 | $ 10.2 | ||
Corporate and Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 0.0 | |||
Corporate and Other | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 1.8 | $ 2.3 |
Restructuring (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2015 | $ 4.7 |
Charges | 0.2 |
Cash payments | (1.9) |
Balance at March 31, 2016 | 3.0 |
Coal Mining | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2015 | 0.8 |
Charges | 0.2 |
Cash payments | (0.4) |
Balance at March 31, 2016 | 0.6 |
Corporate and Other | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2015 | 3.9 |
Charges | 0.0 |
Cash payments | (1.5) |
Balance at March 31, 2016 | $ 2.4 |
Share-Based Compensation - Assumptions Used in Calculating Award Value (Details) - Stock options |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Weighted-average assumptions | |
Risk free interest rate (as a percent) | 1.25% |
Expected term (in years) | 5 years |
Volatility (as a percent) | 52.00% |
Dividend yield (as a percent) | 0.00% |
Earnings per Share (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Reconciliation of the weighted-average number of common shares used to compute basic earnings per share (EPS) to those used to compute diluted EPS | ||
Weighted-average number of common shares outstanding-basic (in shares) | 64.1 | 66.2 |
Add: Effect of dilutive share-based compensation awards (in shares) | 0.0 | 0.0 |
Weighted-average number of shares-diluted (in shares) | 64.1 | 66.2 |
Supplemental Accumulated Other Comprehensive Loss Information (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Accumulated Comprehensive Income [Roll Forward] | |
Beginning balance | $ 622.8 |
Other comprehensive income before reclassifications | 0.4 |
Net current period other comprehensive income | 0.4 |
Ending balance | 624.7 |
Defined and Postretirement Benefit Plans | |
Accumulated Comprehensive Income [Roll Forward] | |
Beginning balance | (4.6) |
Other comprehensive income before reclassifications | 0.0 |
Net current period other comprehensive income | 0.0 |
Ending balance | (4.6) |
Currency Translation Adjustments | |
Accumulated Comprehensive Income [Roll Forward] | |
Beginning balance | (15.2) |
Other comprehensive income before reclassifications | 0.4 |
Net current period other comprehensive income | 0.4 |
Ending balance | (14.8) |
Accumulated Other Comprehensive Income | |
Accumulated Comprehensive Income [Roll Forward] | |
Beginning balance | (19.8) |
Ending balance | $ (19.4) |
Supplemental Accumulated Other Comprehensive Loss Information - Reclassifications Out of AOCI (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of actuarial losses | $ 0.0 | $ 2.4 |
Defined and Postretirement Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Actuarial loss | 0.2 | 0.4 |
Prior service benefit | (0.2) | (0.4) |
Curtailment gain | 0.0 | (4.0) |
Total before taxes | 0.0 | (4.0) |
Less income tax expense | 0.0 | 1.6 |
Total, net of tax | $ 0.0 | (2.4) |
Amortization of actuarial losses | $ 0.2 |
Business Segment Information (Details Textual) T in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
Segment
Cokemaking_facility
T
| |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 4 |
Number of facilities (in cokemaking facilities) | Cokemaking_facility | 5 |
Percent of coal purchased from third parties | 100.00% |
Coal Logistics | |
Segment Reporting Information [Line Items] | |
Coal handling capacity (in tons) | 40 |
Coal storage capacity (in tons) | 3 |
Business Segment Information Business Segment Information - Legacy Costs (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Segment Reporting Information [Line Items] | ||
Operating income | $ 9.5 | $ 25.5 |
Other Segments | ||
Segment Reporting Information [Line Items] | ||
Black lung charges | (1.7) | (0.9) |
Postretirement benefit plan (expense) benefit | (0.2) | 3.9 |
Defined benefit plan expense | 0.0 | (0.2) |
Workers compensation expense | (0.3) | (0.9) |
Operating income | $ (2.2) | $ 1.9 |
Business Segment Information - Sales and Other Operating Revenue by Product or Service (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Summary of total sales and other operating revenue by product or service | ||
Coke sales | $ 273.3 | $ 286.4 |
Steam and electricity sales | 14.9 | 16.6 |
Operating and licensing fees | 7.7 | 9.9 |
Coal logistics | 12.6 | 7.1 |
Metallurgical coal sales | 0.4 | 2.7 |
Other | 1.6 | 1.2 |
Sales and other operating revenue | $ 310.5 | $ 323.9 |
Supplemental Condensed Consolidating Financial Information - Textuals (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Guarantor Obligations [Line Items] | ||
Ownership percentage | 100.00% | |
Percentage of restricted net assets, less than | 25.00% | |
Notes (Guarantor Subsidiaries) | ||
Guarantor Obligations [Line Items] | ||
Guarantors obligations under the credit agreement | $ 44.6 |
Supplemental Condensed Consolidating Financial Information - Phantom (Details) - $ / shares |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Supplemental Condensed Consolidating Financial Information [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares, issued (in shares) | 71,637,745 | 71,489,448 |
Treasury stock, shares (in shares) | 7,477,657 | 7,477,657 |
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