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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of income (loss) before income tax expense (benefit)

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

Components of income tax expense (benefit)

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

Reconciliation of income tax expense (benefit)

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.

Tax effects of temporary differences that comprise the net deferred income tax liability

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.

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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