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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 4. Income Taxes The components of income before income tax expense are as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (Dollars in millions)
Domestic | $ | 107.1 |  |  | $ | 50.4 |  |  | $ | 6.1 |
Foreign | 14.6 |  |  | 16.7 |  |  | 13.0 |
Total | $ | 121.7 |  |  | $ | 67.1 |  |  | $ | 19.1 |
Income tax expense consisted of the following:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (Dollars in millions)
Current tax expense (benefit): |  |  |  |  |
U.S. federal | $ | 4.3 |  |  | $ | 0.8 |  |  | $ | (4.7) |
State | 5.4 |  |  | 3.7 |  |  | (0.3) |
Foreign | 4.8 |  |  | 4.5 |  |  | 3.2 |
Total current tax expense (benefit) | 14.5 |  |  | 9.0 |  |  | (1.8) |
Deferred tax expense (benefit): |  |  |  |  |
U.S. federal | 8.6 |  |  | 11.0 |  |  | 3.6 |
State | (6.3) |  |  | (1.7) |  |  | 8.5 |
Total deferred tax expense | 2.3 |  |  | 9.3 |  |  | 12.1 |
Total | $ | 16.8 |  |  | $ | 18.3 |  |  | $ | 10.3 |
The reconciliation of income tax expense at the U.S. statutory rate to income tax expense is as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
| (Dollars in millions)
Income tax expense at U.S. statutory rate | $ | 25.6 |  |  | 21.0 | % |  | $ | 14.1 |  |  | 21.0 | % |  | $ | 4.0 |  |  | 21.0 | %
Increase (reduction) in income taxes resulting from: |  |  |  |  |  |  |  |  |  |  |
Income attributable to noncontrolling interests in partnerships(1) | (0.9) |  |  | (0.7) | % |  | (1.1) |  |  | (1.7) | % |  | (1.1) |  |  | (5.6) | %
State and other income taxes, net of federal income tax effects(2) | (0.9) |  |  | (0.7) | % |  | 1.6 |  |  | 2.4 | % |  | 7.8 |  |  | 41.2 | %
Foreign income taxes(3) | 4.8 |  |  | 4.0 | % |  | — |  |  | — | % |  | — |  |  | — | %
Impact of CARES Act(4) | — |  |  | — | % |  | — |  |  | — | % |  | (1.5) |  |  | (7.9) | %
R&D tax credit(5) | (4.0) |  |  | (3.4) | % |  | — |  |  | — | % |  | — |  |  | — | %
Non-deductible equity compensation | 3.0 |  |  | 2.5 | % |  | 3.4 |  |  | 4.9 | % |  | 1.0 |  |  | 5.5 | %
Return to provision adjustments | (0.1) |  |  | (0.1) | % |  | (0.1) |  |  | (0.1) | % |  | 1.2 |  |  | 6.5 | %
Change in valuation allowance(3) | (11.0) |  |  | (9.0) | % |  | 0.5 |  |  | 0.8 | % |  | (1.3) |  |  | (6.9) | %
Other | 0.3 |  |  | 0.2 | % |  | (0.1) |  |  | (0.1) | % |  | 0.2 |  |  | 0.5 | %
Income tax expense at effective tax rate | $ | 16.8 |  |  | 13.8 | % |  | $ | 18.3 |  |  | 27.2 | % |  | $ | 10.3 |  |  | 54.3 | %
(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)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. The decrease in apportioned state tax rates in 2022 was partly driven by the dissolution of SunCoke Energy Partners Finance Corp. During 2020, lower apportioned state tax rates were primarily the result of 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 the revaluation of certain deferred tax assets and deferred tax expense of $6.5 million. (3)During 2022, new regulations impacting foreign tax credit utilization were published, which make foreign taxes paid in future years to certain countries, including Brazil, no longer creditable in the U.S. As a result of these regulations and the impact of the Company's tax planning, SunCoke released a valuation allowance established on deferred tax assets attributable to existing foreign tax credit carryforwards, resulting in a deferred tax benefit of $11.3 million. Additionally, foreign income taxes paid in 2022 reflected the absence of the generation of foreign tax credits for taxes paid in Brazil due to the new regulations. (4)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 recorded a tax benefit of $1.5 million during 2020. (5)As part of tax planning, SunCoke conducted an analysis with respect to the Company’s research and development activities, which resulted in a $4.0 million deferred tax benefit. The tax effects of temporary differences that comprise the net deferred income tax liability from operations are as follows:
| December 31,
| 2022 |  | 2021
| (Dollars in millions)
Deferred tax assets: |
Retirement benefit liabilities | $ | 4.2 |  |  | $ | 5.5 |
Black lung benefit liabilities | 13.2 |  |  | 14.4 |
Share-based compensation | 2.0 |  |  | 2.6 |
Federal tax credit carryforward(1) | 8.7 |  |  | 17.6 |
Foreign tax credit carryforward(2) | 9.2 |  |  | 12.3 |
State net operating loss carryforward, net of federal income tax effects(3) | 12.9 |  |  | 12.6 |
Other liabilities not yet deductible | 12.9 |  |  | 10.4 |
Total deferred tax assets | 63.1 |  |  | 75.4 |
Less: valuation allowance(4) | (9.2) |  |  | (20.2) |
Deferred tax asset, net | 53.9 |  |  | 55.2 |
Deferred tax liabilities: |  |  |
Properties, plants and equipment | (155.4) |  |  | (151.0) |
Investment in partnerships | (70.8) |  |  | (73.2) |
Total deferred tax liabilities | (226.2) |  |  | (224.2) |
Net deferred tax liability | $ | (172.3) |  |  | $ | (169.0) |
(1)Federal tax credit carryforward expires in 2033 through 2041. (2)Foreign tax credit carryforward expires in 2027 through 2031. (3)State net operating loss carryforward, net of federal income tax effects expires in 2032 through 2043. (4)Primarily related to state net operating loss carryforwards. 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, 2019 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. Uncertain Tax Positions During the year, the company recorded $0.3 million of expense related to uncertain prior year tax positions and the balance of unrecognized tax benefits at December 31, 2022 remains at approximately $0.3 million 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 2020, and there were no associated interest or penalties recognized for the years ended December 31, 2022, 2021 or 2020. The Company expects that nominal 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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://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 https://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 https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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