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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | 5. Income Taxes The components of income before income tax expense (benefit) and loss from equity method investment are as follows:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| (Dollars in millions)
Domestic | $ | 6.1 |  |  | $ | (218.6) |  |  | $ | 39.3 |
Foreign | 13.0 |  |  | 15.5 |  |  | 17.7 |
Total | $ | 19.1 |  |  | $ | (203.1) |  |  | $ | 57.0 |
Income tax expense (benefit) consisted of the following:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| (Dollars in millions)
Current tax (benefit) expense: |  |  |  |  |
U.S. federal | $ | (4.7) |  |  | $ | 0.3 |  |  | $ | 1.4 |
State | (0.3) |  |  | 3.8 |  |  | 2.1 |
Foreign | 3.2 |  |  | 4.3 |  |  | 4.5 |
Total current tax (benefit) expense | (1.8) |  |  | 8.4 |  |  | 8.0 |
Deferred tax expense (benefit): |  |  |  |  |
U.S. federal | 3.6 |  |  | (39.3) |  |  | (3.1) |
State | 8.5 |  |  | (23.8) |  |  | (0.3) |
Total deferred tax expense (benefit) | 12.1 |  |  | (63.1) |  |  | (3.4) |
Total | $ | 10.3 |  |  | $ | (54.7) |  |  | $ | 4.6 |
The reconciliation of income tax expense at the U.S. statutory rate to income tax expense (benefit) is as follows:
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| (Dollars in millions)
Income tax expense (benefit) at U.S. statutory rate | $ | 4.0 |  |  | 21.0 | % |  | $ | (42.7) |  |  | 21.0 | % |  | $ | 12.0 |  |  | 21.0 | %
Increase (reduction) in income taxes resulting from: |  |  |  |  |  |  |  |  |  |  |
Income attributable to noncontrolling interests in partnerships(1) | (1.1) |  |  | (5.6) | % |  | (0.6) |  |  | 0.3 | % |  | (3.9) |  |  | (6.8) | %
State and other income taxes, net of federal income tax effects(2) | 7.8 |  |  | 41.2 | % |  | (15.0) |  |  | 7.4 | % |  | 1.6 |  |  | 2.8 | %
Impact of CARES Act(3) | (1.5) |  |  | (7.9) | % |  | — |  |  | — | % |  | — |  |  | — | %
Logistics goodwill impairment | — |  |  | — | % |  | 3.3 |  |  | (1.7) | % |  | — |  |  | — | %
Impact of Tax Legislation(4) | — |  |  | — | % |  | — |  |  | — | % |  | (4.8) |  |  | (8.4) | %
Return to provision adjustments | 1.2 |  |  | 6.5 | % |  | (0.8) |  |  | 0.4 | % |  | — |  |  | — | %
Change in valuation allowance | (1.3) |  |  | (6.9) | % |  | 0.6 |  |  | (0.3) | % |  | 0.7 |  |  | 1.2 | %
Other | 1.2 |  |  | 6.0 | % |  | 0.5 |  |  | (0.2) | % |  | (1.0) |  |  | (1.8) | %
Income tax expense (benefit) at effective tax rate | $ | 10.3 |  |  | 54.3 | % |  | $ | (54.7) |  |  | 26.9 | % |  | $ | 4.6 |  |  | 8.0 | %
(1)No income tax expense is reflected in the Consolidated Statements of Operations for income attributable to noncontrolling interests in our Indiana Harbor cokemaking facility or the Partnership prior to the Simplification Transaction discussed in Note 3. (2)A change in the tax filing status of our Convent Marine Terminal in Louisiana from a taxable partnership to a member of the consolidated return group resulted in lower apportioned state tax rates and the revaluation of certain deferred tax assets, which resulted in $6.5 million of deferred income tax expense in 2020. (3)On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security ("CARES Act") was enacted. The enactment of the CARES Act allows the Company to carry back net operating losses generated in 2019 to each of the five years preceding 2019. As a result of the CARES Act, SunCoke expects to receive tax refunds of approximately $4.8 million for prior year taxes paid and recorded a tax benefit of $1.5 million during 2020. (4)On December 22, 2017, the Tax Cuts and Jobs Act ("Tax Legislation") was enacted. The Tax Legislation significantly revised the U.S. corporate income tax structure, including lowering corporate income tax rates. In addition, the SEC staff released Staff Accounting Bulletin 118 on December 23, 2017, which provided for companies to record a provisional impact of the Tax Legislation during a measurement period, not to exceed one year, in situations where companies do not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting under ASC 740, "Income Taxes", for certain income tax effects of the Tax Legislation for the reporting period which includes enactment. Based on an updated analysis of the foreign tax credit rules relating to the new Tax Legislation, the Company revised its estimate of the realizability of its foreign tax credits, resulting in a net $4.8 million benefit during the third quarter of 2018. The tax effects of temporary differences that comprise the net deferred income tax liability from operations are as follows:
| December 31,
| 2020 |  | 2019
| (Dollars in millions)
Deferred tax assets: |
Retirement benefit liabilities | $ | 6.3 |  |  | $ | 6.4 |
Black lung benefit liabilities | 14.8 |  |  | 12.8 |
Share-based compensation | 4.2 |  |  | 4.7 |
Federal tax credit carryforward(1) | 19.9 |  |  | 20.5 |
Foreign tax credit carryforward(2) | 19.4 |  |  | 14.4 |
Federal net operating loss(3) | 5.3 |  |  | 1.6 |
Section 163j interest limitation carryforward(4) | — |  |  | 5.7 |
State tax credit carryforward, net of federal income tax effects(5) | 0.3 |  |  | 1.1 |
State net operating loss carryforward, net of federal income tax effects(6) | 12.9 |  |  | 13.6 |
Other liabilities not yet deductible | 11.5 |  |  | 4.4 |
Total deferred tax assets | 94.6 |  |  | 85.2 |
Less: valuation allowance(7) | (19.6) |  |  | (20.9) |
Deferred tax asset, net | 75.0 |  |  | 64.3 |
Deferred tax liabilities: |  |  |
Properties, plants and equipment | (152.9) |  |  | (17.9) |
Investment in partnerships | (81.4) |  |  | (194.0) |
Total deferred tax liabilities | (234.3) |  |  | (211.9) |
Net deferred tax liability | $ | (159.3) |  |  | $ | (147.6) |
(1)Federal tax credit carryforward expires in 2032 through 2034. (2)Foreign tax credit carryforward expires in 2024 through 2030. (3)Federal net operating loss does not expire. (4)The Tax Legislation generally limits the deductibility of business interest expense to 30 percent (50 percent as a result of CARES Act) of adjusted taxable income. This limitation resulted in a deferred tax asset in 2019 as the interest expense in excess of the limitation is eligible for deduction in future taxable years and has no expiration. In 2020, SunCoke applied the final regulations on section 163(j) released by the IRS on July 28, 2020, which resulted in no interest limitation for the year. (5)State tax credit carryforward, net of federal income tax effects expires in 2021 through 2022. (6)State net operating loss carryforward, net of federal income tax effects expires in 2023 through 2037. (7)Primarily related to state tax credit and net operating loss carryforwards and an $10.7 million allowance against the foreign tax credit carryforward. The Company's consolidated federal income tax returns have been examined by the IRS for all years through the year ended December 31, 2014. 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. The state impact of any amended federal returns remains subject to examination by various states for a period of up to one year after formal notification of such amendments to the states. There were no uncertain tax positions at December 31, 2020 and 2019, and there were no associated interest or penalties recognized for the years ended December 31, 2020, 2019 or 2018. The Company does not expect that any unrecognized tax benefits pertaining to income tax matters will be required in the next twelve months.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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