What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-02-21 compared with 2024-02-22 · 208 added, 170 removed, 882 unchanged (30% of the section changed)

58 unchanged sentences

The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Evaluation of the Company’s estimated black lung benefit liability

As discussed in Notes 2 and 12 to the consolidated financial statements, the Company has obligations related to coal workers’ pneumoconiosis, or black lung, benefits to certain former coal miners and their dependents.

As of December 31, 2023, the Company’s black lung benefit liabili ty was $58.2 million.

The Company, with the assistance of an external expert, estimated the liability using an actuarial model with several assumptions.

We identified the evaluation of the Company’s estimated black lung benefit liability as a critical audit matter.

There was a high degree of subjective auditor judgment in evaluating the actuarial model and key assumptions in the actuarial model.

The actuarial model included internally-developed assumptions related to expected claim filing patterns and expected claimant success rates.

There was limited market information from which to develop these assumptions, and therefore subjective auditor judgment was required to evaluate the relevance and reliability of internally-developed information.

Sufficiency of audit evidence over metallurgical coal inventory

As discussed in Notes 2 and 5 to the consolidated financial statements, the value of metallurgical coal inventory was $109.3 million as of December 31, 2024.

Metallurgical coal is received at the coke plants throughout the year and is the principal raw material for the Company's cokemaking operations.

The Company engages an independent third-party to perform surveys of the quantity of metallurgical coal inventory using unmanned aerial system technology.

We identified the assessment of the sufficiency of evidence over the quantity of metallurgical coal inventory as a critical audit matter.

Subjective auditor judgment was required to assess the quantity of metallurgical coal inventory because of the nature of the evidence obtained and the need to evaluate the survey results developed by the Company's independent third-party.

The following are the primary procedures we performed to address this critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s process to estimate the black lung benefit liability, including controls related to the development of assumptions related to the expected claim filing patterns and claimant success rates.

We evaluated the Company’s assumptions related to expected claim filing patterns and the claimant success rates by comparing the assumptions to industry filing patterns and claimant success rates.

We performed sensitivity analyses over the expected claim filing patterns and claimant success rate assumptions to assess their impact on the Company’s estimated black lung liability.

We compared the Company’s historical black lung payment estimates to actual payments to assess the accuracy of previous estimates related to its black lung benefit liability.

In addition, we involved actuarial professionals with specialized skills and knowledge who assisted in evaluating the expected claim filing patterns and expected claimant success rates assumptions used by the Company to estimate its black lung benefit liability by comparing the assumptions to industry standards.

We applied auditor judgment to determine the nature and extent of procedures to be performed over the quantity of metallurgical coal inventory.

We evaluated the design and tested the operating effectiveness of certain internal controls over the Company's metallurgical coal inventory process, including controls over the quantity of metallurgical coal inventory.

We evaluated the qualifications and experience of the Company's independent third-party who performs the metallurgical coal inventory surveys.

We observed the metallurgical coal inventory surveys performed by the Company's independent third-party at an interim date.

We evaluated the independent third-party's surveys by reconciling the results to the number of piles of metallurgical coal at each coke plant observed and to the Company's calculations and records.

We also compared the individual survey results for each coke plant to each other and evaluated certain adjustments and trends.

We selected a sample of metallurgical coal receipts from the interim survey date through year end and agreed them to third-party support including coal and freight invoices.

We developed an expectation of metallurgical coal quantity used in production from the date of the interim survey through year-end and compared it to actual metallurgical coal used in production.

We evaluated the sufficiency of audit evidence obtained by assessing the results of procedures performed, including the appropriateness of the nature and extent of evidence obtained.

We have served as the Company’s auditor since 2015.

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Interest expense, net 23.4 27.3 32.0

Loss on extinguishment of debt — — 31.9

Income before income tax expense 128.5 97.8 121.7

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Reclassifications of actuarial loss amortization and prior service benefit to earnings (net of related tax benefit of $ 0.1 million for all years)

Retirement benefit plans funded status adjustment (net of related tax benefit (expense) of $ 0.2 million, $( 0.9 ) million and $( 0.3 ) million, respectively)

Retirement benefit plans funded status adjustment (net of related tax (expense) benefit of $( 1.9 ) million, $ 0.2 million and $( 0.9 ) million, respectively)

6.4 ( 0.4 ) 3.1

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Accrued liabilities

Current portion of financing obligation — 3.3

Total current liabilities

Long-term debt and financing obligation 490.3 528.9

Long-term debt 492.3 490.3

Accrual for black lung benefits

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Share-based compensation expense 4.0 5.1 6.7

Loss on extinguishment of debt — — 31.9

Gain on extinguishment of legacy coal liabilities ( 9.5 ) — —

Changes in working capital pertaining to operating activities:

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Cash Flows from Financing Activities:

Proceeds from issuance of long-term debt — — 500.0

Repayment of long-term debt — — ( 609.3 )

Proceeds from revolving facility 11.0 291.0 596.0

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Repayment of financing obligation — ( 8.8 ) ( 3.2 )

Debt issuance costs — — ( 12.0 )

Dividends paid ( 37.6 ) ( 30.7 ) ( 23.6 )

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Supplemental Disclosure of Cash Flow Information

Interest paid, net of capitalized interest of zero , zero and $ 0.5 million, respectively

$ 25.7 $ 28.5 $ 40.0

Income taxes paid, net of refunds of zero , $ 0.5 million and $ 2.9 million, respectively

Interest paid $ 24.4 $ 25.7 $ 28.5

Income taxes paid, net of refunds of $ 0.3 million , zero and $ 0.5 million, respectively

$ 18.0 $ 17.7 $ 14.5

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Dividends — — — — — — ( 23.8 ) ( 23.8 ) — ( 23.8 )

Cash distribution to noncontrolling interests — — — — — — — — ( 4.4 ) ( 4.4 )

At December 31, 2022 98,815,780 $ 1.0 15,404,482 $ ( 184.0 ) $ 728.1 $ ( 13.0 ) $ 53.5 $ 585.6 $ 37.1 $ 622.7

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— — — — — 0.1 — 0.1 — 0.1

Retirement benefit plans funded status adjustment (net of related tax expense of $ 0.9 million)

Retirement benefit plans funded status adjustment (net of related tax benefit of $ 0.2 million)

— — — — — ( 0.4 ) — ( 0.4 ) — ( 0.4 )

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— — — — — 0.2 — 0.2 — 0.2

Retirement benefit plans funded status adjustment (net of related tax benefit of $ 0.2 million)

Retirement benefit plans funded status adjustment (net of related tax expense of $ 1.9 million)

— — — — — 6.4 — 6.4 — 6.4

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We also own and operate a logistics business that provides export and domestic material handling and/or mixing services to steel, coke (including some of our domestic cokemaking facilities), electric utility, coal producing and other manufacturing based customers.

Our logistics terminals, which are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports, have the collective capacity to mix and/or transload more than 40 million tons of coal and other aggregates annually and has storage capacity of approximately 3 million tons.

Our logistics terminals, which are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports, have the collective capacity to mix and/or transload more than 40 million tons of coal and other aggregates annually and have storage capacity of approximately 3 million tons.

Consolidation and Basis of Presentation

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The Company considers all highly liquid investments with a remaining maturity of three months or less at the time of purchase to be cash equivalents.

These cash equivalents consist principally of money market funds.

Inventories are valued at the lower of cost or net realizable value.

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The Company primarily utilizes the contracted sales prices under its coke sales contracts to record lower of cost or net realizable value inventory adjustments.

The Company engages an independent third-party to perform surveys of the quantity of metallurgical coal inventory using unmanned aerial system technology.

Properties, Plants and Equipment

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Coke and energy plant, machinery and equipment are generally depreciated over 20 to 30 years.

Logistics plant, machinery and equipment are

generally depreciated over 15 to 30 years.

Logistics plant, machinery and equipment are generally depreciated over 15 to 30 years.

Depreciation and amortization is excluded from cost of products sold and operating expenses and is presented separately on the Consolidated Statements of Income.

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Long-lived assets, which includes intangible assets and properties, plants and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

A long-lived asset, or group of assets, is considered to be impaired when the undiscounted net cash flows expected to be generated by the asset are less than its carrying amount.

The Company did not identify any triggering events for a review for impairment during the years ended December 31, 2024 and 2023.

A long-lived asset, or group of assets, is considered to be impaired when the undiscounted net cash flows expected to be generated by the asset, which are largely driven by our contractual arrangements, are less than its carrying amount.

Such estimated future cash flows are highly subjective and are based on numerous assumptions about future operations and market conditions.

The impairment recognized is the amount by which the carrying amount exceeds the fair market value of the impaired asset, or group of assets.

It is also difficult to precisely estimate fair market value because quoted market prices for our long-lived assets may not be readily available.

It is also difficult to precisely estimate fair market value because quoted market prices for the Company's long-lived assets may not be readily available.

Therefore, fair market value is generally based on the present values of estimated future cash flows using discount rates commensurate with the risks associated with the assets being reviewed for impairment.

See Note 6 and Note 7.

Income tax expense (benefit) is determined by applying the provisions of federal and state tax laws to taxable income (loss) during the period.

We do business in a number of states with differing laws concerning how income subject to each state's tax structure is measured.

The Company does business in a number of states with differing laws concerning how income subject to each state's tax structure is measured.

These laws, as well as changes in tax legislation, impact what effective tax rate is applied to income generated in each state, and the Company makes estimates of how income will be apportioned among various states based on these factors.

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Black Lung Benefit Liabilities

The Company has obligations related to coal workers’ pneumoconiosis, or black lung, benefits of certain of our former coal miners and their dependents.

We adjust our liability each year based upon actuarial calculations of our expected future payments for these benefits, including a provision for incurred but not reported losses.

The Company has obligations related to coal workers’ pneumoconiosis, or black lung, benefits of certain of the Company's former coal miners and their dependents.

The Company adjusts the liability each year based upon actuarial calculations of the Company's expected future payments for these benefits, including a provision for incurred but not reported losses.

Adjustments are recognized in the period the adjustment occurs as a component of selling, general and administrative expense on the Consolidated Statements of Income.

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The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made.

The associated asset retirement costs are capitalized as part of the carrying

amount of the asset and depreciated over its remaining estimated useful life.

The associated asset retirement costs are capitalized as part of the carrying amount of the asset and depreciated over its remaining estimated useful life.

When the assumptions used to estimate a recorded asset retirement obligation change, a revision is recorded to both the asset retirement obligation and the asset retirement cost capitalized to the extent remaining useful life exists.

The Company’s asset retirement obligations primarily relate to costs associated with restoring land to its original state.

We determine if an arrangement contains a lease at inception.

We recognize right-of-use assets and lease liabilities associated with leases based on the present value of the future minimum lease payments over the lease term at the commencement date.

Our leases do not provide an implicit rate of return, therefore, we use our incremental borrowing rate at the inception of the lease to calculate the present value of lease payments.

Our incremental borrowing rate is determined through market sources for secured borrowings and approximates the interest rate at which we could borrow on a collateralized basis with similar terms and payments in similar economic environments.

The Company determines if an arrangement contains a lease at inception.

The Company recognizes right-of-use assets and lease liabilities associated with leases based on the present value of the future minimum lease payments over the lease term at the commencement date.

The Company's leases do not provide an implicit rate of return, therefore, the Company uses its incremental borrowing rate at the inception of the lease to calculate the present value of lease payments.

The Company's incremental borrowing rate is determined through market sources for secured borrowings and approximates the interest rate at which the Company could borrow on a collateralized basis with similar terms and payments in similar economic environments.

Lease terms reflect options to extend or terminate the lease when it is reasonably certain that the option will be exercised.

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Shipping and Handling Costs

Shipping and handling costs are included in cost of products sold and operating expenses on the Consolidated Statements of Income and are generally passed through to our customers.

Shipping and handling costs are included in cost of products sold and operating expenses on the Consolidated Statements of Income and are generally passed through to the Company's customers.

The Company has elected the practical expedient under Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers,” to account for shipping and handling activities as a promise to fulfill the transfer of coke.

Share-Based Compensation

We measure the cost of employee services in exchange for equity instrument awards and cash awards based on the grant-date fair value of the award.

The Company measures the cost of employee services in exchange for equity instrument awards and cash awards based on the grant-date fair value of the award.

Cash awards and the performance metrics of equity awards are remeasured on a quarterly basis.

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dollars at the current exchange rates in effect at the end of the fiscal period.

The gains or losses that result from this process are shown as cumulative translation adjustments within accumulated other comprehensive loss in the Consolidated Balance Sheets.

The gains or losses that result from this process are shown as cumulative translation adjustments within accumulated other comprehensive income (loss) in the Consolidated Balance Sheets.

The revenue and expense accounts of foreign operations are translated into U.S.

dollars at the average exchange rates during the period.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.” ASU 2023-07 requires disclosure of incremental segment information on an interim and annual basis.

This ASU is effective for fiscal years, beginning after December 15, 2023 as well as interim periods beginning after December 31, 2024 and requires retrospective application to all prior periods presented in the financial statements.

The Company is currently evaluating the impact of the guidance on the related disclosures.

The Company plans to adopt the guidance for the fiscal year ending December 31, 2024.

The Company adopted this standard for the fiscal year ending December 31, 2024 with a retrospective application to all prior periods presented in the financial statements.

See Note 19 to our consolidated financial statements for further detail.

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):

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This ASU is effective for fiscal years beginning after December 15, 2024 on a prospective basis.

Company does not expect this ASU to have a material impact on the Company's disclosures.

The Company does not expect this ASU to have a material impact on the Company's disclosures.

The Company plans to adopt the guidance for the fiscal year ending December 31, 2025.

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income (Topic 220):

Disaggregation of Income Statement Expenses.” ASU 2024-03 requires additional disclosures aimed at enhancing the transparency and decision usefulness of income statement expenses.

This ASU is effective for fiscal years beginning after December 15, 2026 as well as interim periods beginning after December 15, 2027 and requires retrospective application to all prior periods presented in the financial statements.

The Company is currently evaluating the impact of the guidance on the related disclosures.

The Company plans to adopt the guidance for the fiscal year ending December 31, 2027.

Labor Concentrations

As of December 31, 2023, we have 871 employees in the U.S.

Approximately 40 percent of our domestic employees, principally at our cokemaking operations, are represented by the United Steelworkers union under various contracts.

Additionally, approximately 3 percent of our domestic employees are represented by the International Union of Operating Engineers.

As of December 31, 2024, the Company has 868 employees in the U.S.

Approximately 40 percent of the Company's domestic employees, principally at the Company's cokemaking operations, are represented by the United Steelworkers union under various contracts.

Additionally, approximately 3 percent of the Company's domestic employees are represented by the International Union of Operating Engineers.

Labor agreements at Kanawha River Terminal (“KRT”), SunCoke Lake Terminal (“Lake Terminal”), and Indiana Harbor were renewed in 2022 and will expire on April 30, 2025, June 30, 2025, and September 1, 2026, respectively.

As of December 31, 2023,we have 280 employees at the cokemaking facility in Vitória, Brazil, all of whom are represented by a union under a labor agreement .

During 2023, the labor agreement at our Vitória, Brazil facility was renewed

for an additional year, and it expires on October 31, 2024.

As of December 31, 2024,the Company has 300 employees at the cokemaking facility in Vitória, Brazil, all of whom are represented by Sindimetal-ES - Union of Metallurgists under a labor agreement.

During 2024, the labor agreement at the Company's Vitória, Brazil facility was renewed for an additional year, and it expires on October 31, 2025.

Customer Concentrations

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(1) Represents revenues included in our Domestic Coke segment.

(2) Represents revenues included in our Domestic Coke and Logistics segments.

(2) Represents revenues included in our Domestic Coke segment for the year ended December 31, 2024 and revenues included in our Domestic Coke and Logistics segments for the years ended December 31, 2023 and 2022.

The Company generally does not require any collateral with respect to its receivables due under long-term, take-or-pay contracts.

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Steel were approximately $ 48.4 million and $ 8.5 million as of December 31, 2024, respectively, and $ 35.7 million and $ 7.9 million as of December 31, 2023, respectively.

These balances comprised approximately 50 percent and 39 percent of the Company's receivables balance as of December 31, 2023 and 2022, respectively.

These balances comprised approxi mately 59 perce nt and 50 percent of the Company's receivables balance as of December 31, 2024 and

2023, respectively.

As a result, the Company experiences concentrations of credit risk in its receivables with these customers, which may be affected by changes in economic or other conditions affecting the steel industry.

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(Dollars in millions)

Current tax expense:

Current tax expense (benefit):

federal $ 18.4 $ 7.9 $ 4.3

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(1) No income tax expense is reflected in the Consolidated Statements of Income for income attributable to noncontrolling interests in our Indiana Harbor cokemaking facility.

(2) State tax rates in 2023 remained in line with the prior year.

Lower apportioned state tax rates required the revaluation of certain deferred tax liabilities and resulted in deferred tax benefits of $ 4.9 million and $ 1.3 million recorded during 2022 and 2021, respectively.

(2) During 2024, higher apportioned state tax rates required the revaluation of certain deferred tax liabilities and resulted in deferred tax expense of $ 1.7 million.

The increase in apportioned state rates was mainly driven by tax planning conducted by the Company.

Lower apportioned state tax rates required the revaluation of certain deferred

tax liabilities and resulted in deferred tax benefits of $ 4.9 million recorded during 2022.

The decrease in apportioned state tax rates in 2022 was partly driven by the dissolution of SunCoke Energy Partners Finance Corp.

(3) During 2024, the Company released a valuation allowance established on the deferred tax assets attributable to existing state net operating losses (“NOLs”) carryforwards, resulting in a deferred tax benefit of $ 3.5 million.

The release of the aforementioned valuation allowance was a result of tax planning conducted by the Company, as the state NOLs carried forward from prior years are now expected to be utilized.

The Company also established a $ 0.6 million valuation allowance, representing a portion of foreign tax credits projected to be unused before expiration.

During 2023, the Company established an $ 8.4 million valuation allowance, which was a portion of an $ 11.3 million valuation allowance that was released during 2022 on deferred tax assets attributable to existing foreign tax credit carryforwards.

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Due to the change in the Brazilian tax law, the FTCs that are projected to be created will cause $ 8.4 million of the foreign tax credit carryforward from prior years to not be utilized, resulting in the establishment of the valuation allowance during 2023.

Also, during 2023, the IRS issued

Notice 2023-55 and 2023-80 that generally allow taxpayers to defer the application of the of the 2022 FTC final regulations until further guidance is issued.

Also, during 2023, the IRS issued Notice 2023-55 and 2023-80 that generally allow taxpayers to defer the application of the of the 2022 FTC final regulations until further guidance is issued.

Foreign income taxes paid in 2023 reflected the absence of the generation of foreign tax credits for taxes paid in Brazil due to the Company’s election not to defer the application of the 2022 FTC final regulations allowed under the notices.

(4) SunCoke conducted an analysis with respect to the Company’s research and development activities, which resulted in a current tax benefit of $ 0.7 million and a deferred tax benefit of $ 4.0 million during 2023 and 2022, respectively.

(4) SunCoke conducted an analysis with respect to the Company’s research and development activities, which resulted in a current tax benefit of $ 0.7 million during both 2024 and 2023 and a deferred tax benefit of $ 4.0 million during 2022.

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

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Share-based compensation 0.2 0.6

Federal tax credit carryforward (1)

Foreign tax credit carryforward (1)

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Net deferred tax liability $ ( 196.8 ) $ ( 190.4 )

(1) Federal tax credit carryforward expires in 2034 through 2043.

(1) Foreign tax credit carryforward expires in 2028 through 2035.

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The Company's consolidated federal income tax returns have been examined by the IRS for all years through the year ended December 31, 2014.

Due to the federal tax credit carryforward going back to 2015, SunCoke is currently open to examination by the IRS for tax years ended December 31, 2015 and forward.

Due to federal tax credit carryforwards generated by the Company for tax years ended going back to 2015, SunCoke is currently open to examination by the IRS for tax years ended December 31, 2015 and forward.

State and foreign income tax returns are generally subject to examination for a period of three to five years after the filing of the respective returns.

1 unchanged sentence

Uncertain Tax Positions

During 2023 and 2022, the company recorded expense related to uncertain current and prior year tax positions of $ 0.1 million and $ 0.3 million, respectively.

At December 31, 2023 and 2022, the balances of unrecognized tax benefits at were $ 0.4 million and $ 0.3 million, respectively, that, if recognized, will reduce the effective tax rate on income from continuing operations.

There were no uncertain tax positions recorded at December 31, 2021, and there were no associated interest or penalties recognized for the years ended December 31, 2023, 2022 or 2021.

During 2024, 2023 and 2022, the company recorded expense related to uncertain current and prior year tax positions of $ 0.1 million, $ 0.1 million and $ 0.3 million, respectively.

At December 31, 2024, 2023 and 2022, the balances of unrecognized tax benefits at were $ 0.5 million, $ 0.4 million and $ 0.3 million, respectively, that, if recognized, will reduce the effective tax rate on income from continuing operations.

There were no associated interest or penalties recognized for the years ended December 31, 2024, 2023 or 2022.

The Company expects that nominal unrecognized tax benefits pertaining to income tax matters will be required in the next twelve months.

The Company’s inventory consists of metallurgical coal, which is the principal raw material for the Company’s cokemaking operations, coke, which is the finished good sold by the Company to its customers, and materials, supplies and other.

These components of inventories, net of lower of cost or net realizable value adjustments of $ 2.0 million and $ 2.6 million at December 31, 2023 and 2022, respectively, were as follows:

These components of inventory, net of lower of cost or net realizable value adjustments of zero and $ 2.0 million at December 31, 2024 and 2023, respectively, were as follows:

(Dollars in millions)

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Intangible assets, net, include goodwill allocated to our Domestic Coke segment of $ 3.4 million at both December 31, 2024 and 2023, and other intangibles detailed in the table below, excluding fully amortized intangible assets.

There were no changes in the carrying amount of goodwill during the fiscal years ended December 31, 2023 and 2022, respectively.

There were no changes in the carrying amount of goodwill during the fiscal years ended December 31, 2024 and 2023,

respectively.

December 31, 2024 December 31, 2023

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(1) Included in cost of products sold and operating expenses on the Consolidated Statements of Income.

(2) The current portion of asset retirement obligation liabilities, which had no balance and totaled $ 0.4 million at December 31, 2023, and December 31, 2022, respectively, is classified in accrued liabilities on the Consolidated Balance Sheets.

(2) Revisions of estimated cash flows in 2024 were primarily due to the timing of projected spending on certain obligations.

(3) The current portion of the asset retirement obligation liability was $ 0.1 million at December 31, 2024 and is classified in accrued liabilities on the Consolidated Balance Sheets.

There was no current portion of the asset retirement obligation liability at December 31, 2023.

Retirement Benefits Plans

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Retirement benefit plan funded status

Actuarial (losses) gains ( 0.6 ) 4.0 1.3

Actuarial gain (loss) (1)

8.3 ( 0.6 ) 4.0

$ 8.6 $ ( 0.4 ) $ 4.5

(1) The actuarial gain for the year ended December 31, 2024 was primarily due to the remeasurement of the retirement benefit plan obligation associated with a plan amendment during the current year period.

The following table sets forth the components of the changes in benefit obligations:

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Interest cost 0.8 0.9

Actuarial losses (gains) 0.6 ( 4.0 )

Actuarial (gain) loss

Benefits paid ( 2.0 ) ( 2.2 )

Benefit obligation at end of year (1)

$ 18.1 $ 18.8

(1) The current portion of retirement benefit liabilities, which totaled $ 1.0 million and $ 2.3 million at December 31, 2024 and 2023, respectively, is classified in accrued liabilities on the Consolidated Balance Sheets.

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Prior service benefits (1)

Accumulated other comprehensive loss (before related tax benefit) $ 4.7 $ 4.4

( 7.8 ) ( 0.7 )

Accumulated other comprehensive (income) loss (before related tax benefit) $ ( 3.8 ) $ 4.7

(1) The increase in prior service benefits not yet recognized in net income in 2024 reflects the impact of the remeasurement of the retirement benefit plan obligation associated with a plan amendment during the current year period.

The expected benefit payments through 2034 for the postretirement benefit plan are as follows:

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Discount rate 5.40 % 4.95 %

The health care cost trend assumption used at December 31, 2023 to compute the accumulated postretirement benefit obligation for the postretirement benefit plans was 6.75 percent, which is assumed to decline gradually to 5.00 percent in 2031 and to remain at that level thereafter.

The health care cost trend assumption used at December 31, 2022 to compute the accumulated postretirement benefit obligation for the postretirement benefit plan was 7.00 percent, which is assumed to decline gradually to 5.00 percent in 2031 and to remain at that level thereafter.

The health care cost trend assumption used at to compute the accumulated postretirement benefit obligation for the postretirement benefit plans was 6.50 percent and 6.75 percent at December 31, 2024 and 2023 , respectively, which are both assumed to decline gradually to 5.00 percent in 2031 and to remain at that level thereafter.

Defined Contribution Plans

The Company has defined contribution plans which provide retirement benefits for certain of its employees.

The Company’s contributions, which are charged against income as incurred, amounted to $ 7.9 million, $ 7.9 million and $ 6.9 million for the years ended December 31, 2023, 2022 and 2021, respectively.

The Company’s contributions, which are charged against income as incurred, amounted to $ 8.5 million, $ 7.9 million and $ 7.9 million, respectively, for the years ended December 31, 2024, 2023 and 2022.

Accrued Liabilities

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Current portion of black lung liability 1.0 5.0

Accrued legal 0.5 4.9

Lease liabilities 2.7 2.5

Other 9.0 4.7

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$ 350.0 revolving credit facility, due 2026 (“Revolving Facility”)

5.346 percent financing obligation, due 2024

Total borrowings $ 500.0 $ 500.0

Debt issuance costs ( 7.7 ) ( 9.7 )

Total debt and financing obligation $ 490.3 $ 532.2

current portion of long-term debt and financing obligation — 3.3

Total long-term debt and financing obligation $ 490.3 $ 528.9

Total long-term debt $ 492.3 $ 490.3

2029 Senior Notes

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The weighted-average interest rate for borrowings outstanding under the Revolving Facility was 6.9 percent during 2024.

Financing Obligation

In December 2020, the Company entered into a sale-leaseback arrangement related to certain coke and logistics equipment, which was accounted for as a financing transaction, resulting in a financing obligation on the Consolidated Balance Sheets.

The arrangement had an initial period of 48 months, and an early buyout option after 36 months to purchase the equipment at a fixed rate, which the Company exercised in December 2023.

Under the terms of the Revolving Facility, the Company is subject to a maximum consolidated leverage ratio of 4.50 :1.00 and a minimum consolidated interest coverage ratio of 2.50 :1.00.

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Black Lung Benefit Liabilities

The Company has obligations related to coal workers’ pneumoconiosis, or black lung, to provide benefits to certain of its former coal miners and their dependents.

Such benefits are provided for under Title IV of the Federal Coal Mine and Safety Act of 1969 and subsequent amendments, as well as for black lung benefits provided in the states of Virginia, Kentucky and West Virginia pursuant to workers’ compensation legislation.

The Patient Protection and Affordable Care Act, which was implemented in 2010 and amended previous legislation related to coal workers’ black lung obligations, provides for the automatic extension of awarded lifetime benefits to surviving spouses and changes the legal criteria used to assess and award claims.

The Company has obligations to provide certain black lung benefits to legacy coal miners and their dependents under Title IV of the Federal Coal Mine Health and Safety Act of 1969, as amended (“Black Lung Benefits Act”), as well as

for black lung benefits in the states of Virginia, Kentucky and West Virginia pursuant to state workers’ compensation legislation.

We adjust our liability each year based upon actuarial calculations of our expected future payments for these benefits.

Our independent actuarial consultants calculate the present value of the estimated black lung liability annually based on actuarial models utilizing our population of former coal miners, historical payout patterns of both the Company and the industry, expected claim filing patterns, expected claimant success rates, actuarial mortality rates, medical costs, death benefits, dependents, discount rates and the current federally mandated payout rates.

The estimated liability may be impacted by future changes in the statutory mechanisms, modifications by court decisions and changes in filing patterns by claimants and their advisors, the impact of which cannot be estimated.

The following table summarizes discount rates utilized, active claims and the total black lung liabilities.

Our independent actuarial consultants calculate the present value of the black lung liability annually in the fourth quarter, unless there are changes in facts and circumstances that could materially alter the amount of the liability.

Our independent actuarial consultants calculate the present value of the estimated black lung liability annually in the fourth quarter, unless there are changes in facts and circumstances that could materially alter the amount of the liability, based on actuarial models utilizing our population of legacy coal miners, historical payout patterns of both the Company and the industry, expected claim filing patterns, expected claimant success rates, actuarial mortality rates, medical costs, death benefits, dependents, discount rates and the current federally mandated payout rates.

The estimated liability may be impacted by future changes in the applicable laws, as interpreted by the courts, and changes in filing patterns by claimants and their advisors, the impact of which cannot be estimated.

On February 1, 2013, SunCoke obtained commercial insurance for state and federal black lung claims, in excess of a deductible, for employees with a last date of employment after that date.

For claims based on employment that ended prior to February 1, 2013, SunCoke was reauthorized by the U.S.

Department of Labor’s Division of Coal Mine Workers Compensation (“DCMWC”) to self-insure its black lung liabilities for $ 8.4 million.

On February 21, 2020, DCMWC made an initial security determination to increase the amount of SunCoke’s collateral requirement for self-insured claims to $ 40.4 million.

The Company appealed the security determination to the DCMWC.

On August 13, 2024, the Company and DCMWC agreed that the Company would make a lump sum payment of $ 36.0 million to satisfy its self-insured federal black lung liabilities, with limited exceptions estimated to be approximately $ 1.4 million.

In exchange, the DCMWC agreed to permanently assume responsibility for payment of black lung benefits for claims based on employment that ended prior to February 1, 2013, and SunCoke received a certificate of exemption that eliminates the Company’s responsibility for future payments arising from claims based on employment that ended prior to February 1, 2013, excluding limited exceptions estimated to be approximately $ 1.4 million.

This agreement resulted in a reduction of $ 45.5 million of the Company's black lung liability, and a one-time gain of $ 9.5 million within selling, general and administrative expenses on the Consolidated Statements of Income during the year ended December 31, 2024.

The Company no longer maintains any collateral to self-insure its former black lung liabilities incurred prior to February 1, 2013.

The Company’s commercially insured federal and state black lung liabilities are not impacted by this agreement.

Additionally, on January 19, 2023, the Department of Labor proposed a new rule that would require self-insured operators to post collateral in the amount of 120 percent of the company's total expected lifetime black lung liabilities as determined by the DCMWC.

This proposed new rule and any future rulings would not apply to SunCoke as a result of the regulatory exemption detailed above.

The following table summarizes discount rates utilized, active claims and total black lung liabilities:

(Dollars in millions)

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(Dollars in millions)

Payments $ 5.4 $ 5.0 $ 4.4

Expense (benefit) (1)

$ 40.4 $ 5.4 $ 5.0

(1) Black lung expense (benefit) incurred in excess of annual accretion of the black lung liability reflects the impact of changes in discount rates, current filing and approval rate assumptions and/or other changes in our actuarial assumptions.

On February 1, 2013, SunCoke obtained commercial insurance for black lung claims in excess of a deductible for employees with a last date of employment after that date.

Also, during 2013, we were reauthorized to continue to self-insure black lung liabilities incurred prior to February 1, 2013 by the U.S.

Department of Labor's Division of Coal Mine Workers' Compensation (“DCMWC”) in exchange for $ 8.4 million of collateral.

In July 2019, the DCMWC required that SunCoke, along with a number of other companies, file an application and supporting documentation for reauthorization to self-insure any legacy black lung obligations incurred prior to February 1, 2013.

The Company provided the requested information in the fourth quarter of 2019.

The DCMWC subsequently notified the Company in a letter dated February 21, 2020 that the Company was reauthorized to self-insure certain of its black lung obligations;

however, the reauthorization is contingent upon the Company providing collateral of $ 40.4 million to secure certain of its black lung obligations.

This proposed collateral requirement is a substantial increase from the $ 8.4 million in collateral that the Company currently provides to secure these self-insured black lung obligations.

The reauthorization process provided the Company with the right to appeal the security determination.

SunCoke exercised its right to appeal the DCMWC’s security determination and provided additional information supporting the Company’s position in May 2020 and February 2021.

If the Company’s appeal is unsuccessful, the Company may be required to provide additional collateral to receive the self-insurance reauthorization from the DCMWC, which could potentially reduce the Company’s liquidity.

Additionally, on January 19, 2023, the Department of Labor issued a new proposed rule that would require self-insured companies to post collateral in the amount of 120 percent of the company's total expected lifetime black lung obligations as determined by the DCMWC.

While this new proposed rule is not effective, if finalized, it could potentially reduce the Company's liquidity.

We submitted comments on this proposed rule and will continue to monitor any impact to the Company.

(Benefit) expense (2)

$ ( 4.1 ) $ 5.5 $ ( 0.2 )

(1) Payments for the year ended December 31, 2024 represent $ 4.4 million of black lung benefit payments made by the Company and the $ 36.0 million payment made to the DCMWC related to the regulatory exemption detailed above.

(2) The benefit for the year ended December 31, 2024 includes $ 5.4 million of accretion expense of the black lung liability and a $ 9.5 million gain related to the regulatory exemption detailed above.

The $ 9.5 million gain is included in selling, general and administrative expense on the Consolidated Statement of Income.

The Company's operating leases consist primarily of leases for land, office space, equipment, railcars and locomotives.

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Accumulated Other Comprehensive Loss

The following tables set forth the changes in the balance of accumulated other comprehensive loss, net of tax, by component:

The following tables set forth the changes in the balance of accumulated other comprehensive income (loss), net of tax, by component:

Benefit Plans Currency Translation Adjustments Total

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Retirement benefit plans funded status adjustment ( 0.4 ) — ( 0.4 )

Net current period change in accumulated other comprehensive loss 3.5 0.2 3.7

Net current period change in accumulated other comprehensive income (loss) ( 0.3 ) 0.5 0.2

At December 31, 2023 $ ( 3.7 ) $ ( 9.1 ) $ ( 12.8 )

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Retirement benefit plans funded status adjustment 6.4 — 6.4

Net current period change in accumulated other comprehensive loss ( 0.3 ) 0.5 0.2

Net current period change in accumulated other comprehensive income (loss) 6.6 ( 1.5 ) 5.1

At December 31, 2024 $ 2.9 $ ( 10.6 ) $ ( 7.7 )

The tax benefit associated with the Company's benefit plans as of December 31, 2023 and 2022 was $ 1.0 million in both respective periods.

The increase in net income due to reclassification adjustments from accumulated other comprehensive income were as follows (1) :

The Company recorded tax expense of $ 0.9 million and a tax benefit of $ 1.0 million associated with the Company's benefit plans as of December 31, 2024 and 2023, respectively.

The decrease in net income due to reclassification adjustments from accumulated other comprehensive income (loss) were as follows (1) :

Years Ended December 31,

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Total, net of tax $ ( 0.2 ) $ ( 0.1 ) $ ( 0.4 )

(1) Amounts in parentheses indicate debits to net income.

(2) These accumulated other comprehensive loss components are included in the computation of postretirement benefit plan expense and included in interest expense, net on the Consolidated Statements of Income.

(1) Amounts in parentheses indicate a decrease to net income.

(2) These accumulated other comprehensive income (loss) components are included in the computation of postretirement benefit plan expense and included in interest expense, net on the Consolidated Statements of Income.

Share-Based Compensation

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Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate

Intrinsic Value (millions)

Outstanding at December 31, 2022 1,520,210 $ 15.06 2.7 0.2

Intrinsic Value (Dollars in millions)

Outstanding and Exercisable December 31, 2023 1,199,656 $ 14.89 2.3 $ 0.5

Exercised ( 283,642 ) $ 10.01

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Benchmark Iron & Steel Index (“TSR Modifier”).

The TSR Modifier can impact the payout (between 80 percent and 120 percent of the 2023 and 2022 awards, and between 75 percent and 125 percent of the 2021 awards) of the Company's final performance measure results.

The 2023 and 2022 awards may vest between 25 percent and 200 percent of the original units granted and the 2021 awards may vest between zero and 250 percent.

The TSR Modifier can impact the payout (between 80 percent and 120 percent of the 2024, 2023 and 2022 awards) of the Company's final performance measure results.

The 2024, 2023 and 2022 awards may vest between 25 percent and 200 percent of the original units granted.

The fair value of the PSUs granted is based on the closing price of our common stock on the date of grant as well as a Monte Carlo simulation for the valuation of the TSR Modifier.

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The Cash RSU liability at December 31, 2024 was adjusted based on the closing price of our common stock on December 31, 2024 of $ 10.70 per share.

The Cash RSU liability was $ 2.8 million at December 31, 2023 and was $ 2.4 million at December 31, 2022.

The Cash RSU liability was $ 2.6 million and $ 2.8 million at December 31, 2024 and 2023, respectively.

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.

The SunCoke LTCIP is designed to provide for performance-based, cash-settled awards.

All awards vest immediately upon a change in control and a qualifying termination of employment as defined by the SunCoke LTCIP.

As of May 12, 2022, performance-based, cash settled awards will be granted under the new Omnibus Plan.

The awards previously granted under the SunCoke LTCIP were not modified or impacted by the adoption of the Omnibus Plan.

As of May 12, 2022, The Company grants performance-based, cash settled awards to eligible participants under the Omnibus Plan.

All awards vest immediately upon a change in control and a qualifying termination of employment as defined by the Omnibus Plan.

The cash incentive award liability is included in accrued liabilities and other deferred credits and liabilities on the Consolidated Balance Sheets.

As of the effective date, new awards will no longer be granted under the SunCoke Energy, Inc.

Long-Term Cash Incentive Plan (“SunCoke LTCIP”).

The awards previously granted under the SunCoke LTCIP were not modified or impacted by the adoption of the Omnibus Plan.

The Company issued a grant date fair value award of $ 2.6 million, $ 2.2 million and $ 2.0 million during the years ended December 31, 2024, 2023 and 2022, respectively, for which the service periods end on December 31, 2026, 2025 and 2024, respectively, and the awards will vests during the first quarter of 2027, 2026 and 2025, respectively.

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See above for details.

The cash incentive award liability at December 31, 2023 was adjusted based on the Company's three-year cumulative Adjusted EBITDA performance and adjusted average pre-tax return on capital for the Company's coke and logistics businesses and unallocated corporate expenses.

The cash incentive award liability was $ 8.1 million at December 31, 2023 and $ 8.7 million at December 31, 2022.

The cash incentive award liability at December 31, 2024 was adjusted based on the Company's three-year cumulative Adjusted EBITDA and the Company's three-year adjusted average pre-tax return on capital for its coke and logistics businesses and unallocated corporate expenses.

The cash incentive award liability was $ 6.8 million and $ 8.1 million at December 31, 2024 and 2023, respectively.

Summary of Share-Based Compensation Expense

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Equity Awards:

Stock Options $ — $ — $ 0.1 $ — $ — $ 0.1 $ — —

RSUs $ 2.5 $ 2.9 $ 2.5 $ 1.9 $ 2.3 $ 1.9 $ 1.1 2.0

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(1) Compensation expense is recognized by the Company in selling, general and administrative expenses on the Consolidated Statements of Income.

The Company issued $ 0.7 million, $ 0.3 million, and $ 0.3 million of share-based compensation to the Company's Board of Directors during the years ended December 31, 2023, 2022 and 2021, respectively.

The Company issued $ 0.1 million, $ 0.3 million, and $ 0.3 million of share-based compensation to the Company's Board of Directors in addition to RSUs included in the table above during the years ended December 31, 2024, 2023 and 2022, respectively.

Earnings Per Share

Basic earnings per share (“EPS”) has been computed by dividing net income available to SunCoke Energy, Inc.

Basic earnings per share (“EPS”) has been computed by dividing net income attributable to SunCoke Energy, Inc.

by the weighted average number of shares outstanding during the period.

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Stock options 0.6 1.2 1.6

Performance share units 0.1 — —

Total 0.7 1.2 1.6

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Certain Financial Assets and Liabilities not Measured at Fair Value

At December 31, 2023 and 2022, the fair value of the Company’s long-term debt was estimated to be $ 450.2 million and $ 471.9 million, respectively, compared to a carrying amount of $ 500.0 million and $ 543.8 million, respectively.

At December 31, 2024 and 2023, the fair value of the Company’s long-term debt was estimated to be $ 454.9 million and $ 450.2 million, respectively, compared to a carrying amount of $ 500.0 million at both periods.

These fair values were estimated by management based upon estimates of debt pricing provided by financial institutions which are considered Level 2 inputs.

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These agreements require us to produce and deliver the contracted volumes of coke and require our customers to purchase such volumes of coke up to a specified tonnage or pay the contract price for any tonnage they elect not to take.

As of December 31, 2023, our coke sales agreements have approximately 22.0 million tons of unsatisfied or partially unsatisfied performance obligations, which are expected to be delivered over a weighted average remaining contract term of approximately ten years .

Our coke sales prices include an operating cost component, a coal cost component and a return of capital component.

As of December 31, 2024, our coke sales agreements have approximately 19.1 million tons of unsatisfied or partially unsatisfied performance obligations, which are expected to be delivered over a weighted average remaining contract term of approximately nine years .

Sales prices for coke sold under our long-term, take-or-pay agreements include an operating cost component, a coal cost component and a return of capital component.

Operating costs under four of our coke sales agreements are fixed subject to an annual adjustment based on an inflation index.

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Conversely, to the extent our actual coal-to-coke yields are higher than the contractual standard, we realize gains.

The reimbursement of pass-through operating and coal costs from these coke sales agreements are considered to

be variable consideration components included in the cokemaking sales price.

The reimbursement of pass-through operating and coal costs from these coke sales agreements are considered to be variable consideration components included in the cokemaking sales price.

The return of capital component for each ton of coke sold to the customer is determined at the time the coke sales agreement is signed and is effective for the term of each sales agreement.

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Business Segment Information

The Company’s reportable segments are strategic business units that offer different products and services.

They are managed separately because each business requires different operational support and management.

The Company reports its business through three reportable segments:

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Segment assets are those assets utilized within a specific segment.

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

Years Ended December 31,

2023 2022 2021

In considering the financial performance of the business, the chief operating decision maker (“CODM”), who is the Company’s President and Chief Executive Officer, evaluates the performance of its segments based on Adjusted EBITDA reportable segments, which is defined as earnings before interest, taxes, depreciation and amortization, adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, transaction costs, and/or corporate/other expenses (“Adjusted EBITDA reportable segments”).

The CODM uses this measure to help determine the allocation of costs and resources to our reportable segments.

Additionally, other companies may calculate Adjusted EBITDA reportable segments differently than we do, limiting its usefulness as a comparative measure.

The following tables include Adjusted EBITDA reportable segments, as defined above, which is a measure of segment profit or loss reported to the chief operating decision maker for purposes of allocating resources to the segments and assessing their performance.

Year Ended December 31, 2024

(Dollars in millions)

Domestic Coke Brazil Coke Logistics Total

Sales and other operating revenue $ 1,817.3 $ 35.1 $ 83.0 $ 1,935.4

Domestic Coke $ 1,954.0 $ 1,856.9 $ 1,354.5

Brazil Coke 35.2 38.0 36.6

Logistics 74.0 77.6 64.9

Logistics intersegment sales 22.1 28.9 27.1

Elimination of intersegment sales ( 22.1 ) ( 28.9 ) ( 27.1 )

Total sales and other operating revenue $ 2,063.2 $ 1,972.5 $ 1,456.0

Intersegment revenues — — 22.9 22.9

Net revenues $ 1,817.3 $ 35.1 $ 105.9 $ 1,958.3

Reconciliation of revenue

Elimination of intersegment revenues ( 22.9 )

Total consolidated revenues $ 1,935.4

Operating and maintenance expense $ 306.4 $ 21.9 $ 53.8

Cost of products sold and other expenses (2)

Selling, general and administrative expenses 32.0 3.3 1.7

Adjusted EBITDA reportable segments $ 234.7 $ 9.9 $ 50.4 $ 295.0

Domestic Coke $ 247.8 $ 263.4 $ 243.4

Brazil Coke 9.1 14.5 17.2

Logistics 44.3 49.7 43.5

Total Adjusted EBITDA reportable segments $ 301.2 $ 327.6 $ 304.1

Depreciation and amortization expense 118.9

Interest expense, net (3)

Other corporate expenses (4)

Income before income tax expense $ 128.5

(1) The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.

(2) Cost of products sold and other expenses includes coal and transportation costs.

(3) Interest expense, net of $ 23.4 million reflects (i) consolidated interest expense of $ 28.7 million and (ii) consolidated interest income of $ 5.3 million.

(4) Other corporate expenses represents business expenses not allocated to the Company’s reportable segments and are included in Corporate, which is not a reportable segment.

Year Ended December 31, 2023

(Dollars in millions)

Domestic Coke Brazil Coke Logistics Total

Sales and other operating revenue $ 1,954.0 $ 35.2 $ 74.0 $ 2,063.2

Intersegment revenues — — 22.1 22.1

Net revenues $ 1,954.0 $ 35.2 $ 96.1 $ 2,085.3

Reconciliation of revenue

Elimination of intersegment revenues ( 22.1 )

Total consolidated revenues $ 2,063.2

Operating and maintenance expense $ 305.1 $ 22.7 $ 50.3

Cost of products sold and other expenses (2)

Selling, general and administrative expenses 32.5 3.4 1.5

Adjusted EBITDA reportable segments $ 247.8 $ 9.1 $ 44.3 $ 301.2

Depreciation and amortization expense 142.8

Interest expense, net (3)

Other corporate expenses (4)

Income before income tax expense $ 97.8

(1) The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.

(2) Cost of products sold and other expenses includes coal and transportation costs.

(3) Interest expense, net of $ 27.3 million reflects (i) consolidated interest expense of $ 30.0 million and (ii) consolidated interest income of $ 2.7 million.

(4) Other corporate expenses represents business expenses not allocated to the Company’s reportable segments and are included in Corporate, which is not a reportable segment.

Year Ended December 31, 2022

(Dollars in millions)

Domestic Coke Brazil Coke Logistics Total

Sales and other operating revenue $ 1,856.9 $ 38.0 $ 77.6 $ 1,972.5

Intersegment revenues — — 28.9 28.9

Net revenues $ 1,856.9 $ 38.0 $ 106.5 $ 2,001.4

Reconciliation of revenue

Elimination of intersegment revenues ( 28.9 )

Total consolidated revenues $ 1,972.5

Operating and maintenance expense $ 294.4 $ 19.8 $ 55.2

Cost of products sold and other expenses (2)

Selling, general and administrative expenses 35.4 3.7 1.6

Adjusted EBITDA reportable segments $ 263.4 $ 14.5 $ 49.7 $ 327.6

Depreciation and amortization expense 142.5

Interest expense, net (3)

Other corporate expenses (4)

Income before income tax expense $ 121.7

(1) The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.

(2) Cost of products sold and other expenses includes coal and transportation costs.

(3) Interest expense, net of $ 32.0 million reflects (i) consolidated interest expense of $ 32.7 million and (ii) consolidated interest income of $ 0.7 million.

(4) Other corporate expenses represents business expenses not allocated to the Company’s reportable segments and are included in Corporate, which is not a reportable segment.

The following table sets forth the Company’s depreciation and amortization expense as well as its capital expenditures:

Years Ended December 31,

2024 2023 2022

(Dollars in millions)

Depreciation and amortization expense:

Domestic Coke $ 105.2 $ 129.4 $ 126.8

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Total assets $ 1,668.2 $ 1,660.4

(1) Logistics segment assets included $ 21.7 million of DRT assets as of December 31, 2022, which are included in the Domestic Coke segment in 2023.

The Company evaluates the performance of its segments based on segment Adjusted EBITDA reportable segments, which is defined as earnings before interest, taxes, depreciation and amortization, adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, transaction costs, and/or corporate/other expenses (“Adjusted EBITDA reportable segments”).

Management believes Adjusted EBITDA reportable segments is an important measure in assessing operating performance.

Additionally, other companies may calculate Adjusted EBITDA reportable segments differently than we do, limiting its usefulness as a comparative measure.

Reconciliation of Adjusted EBITDA Reportable Segments to Net Income

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

Years Ended December 31,

2023 2022 2021

(Dollars in millions)

Net income $ 63.5 $ 104.9 $ 48.8

Depreciation and amortization expense 142.8 142.5 133.9

Interest expense, net 27.3 32.0 42.5

Loss on extinguishment of debt — — 31.9

Income tax expense 34.3 16.8 18.3

Transaction costs (1)

Corporate and Other 32.4 29.9 28.7

Adjusted EBITDA reportable segments $ 301.2 $ 327.6 $ 304.1

(1) Costs incurred as part of the granulated pig iron project with U.S.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data