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Business Segment Information | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Business Segment Information | 12. Business Segment Information The Company reports its business through three reportable segments: Domestic Coke, Brazil Coke and Logistics. 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 recover waste heat, which is converted to steam or electricity. The Brazil Coke segment includes the licensing and operating fees payable to us under long-term contracts with ArcelorMittal Brazil, under which we operate a cokemaking facility located in Vitória, Brazil through January 2028. Logistics operations are comprised of Convent Marine Terminal (“CMT”), Kanawha River Terminal (“KRT”), and Lake Terminal, which provides services to our Indiana Harbor cokemaking facility. Handling and mixing results are presented in the Logistics segment. The Company elected to combine Dismal River Terminal (“DRT”) operations into the Jewell cokemaking operations in the Domestic Coke segment beginning January 1, 2023. The DRT results were included in the Logistics segment in 2022 and are not recast. Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other, which is not a reporting segment, but which also includes activity from our legacy coal mining business. Segment assets are those assets utilized within a specific segment and exclude taxes. 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:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
|  | (Dollars in millions)
Sales and other operating revenue: |  |  |  |  |  |  |  |
Domestic Coke |  | $ | 495.7 |  |  | $ | 487.7 |  |  | $ | 1,460.4 |  |  | $ | 1,371.8 |
Brazil Coke |  | 9.1 |  |  | 8.9 |  |  | 25.8 |  |  | 27.9 |
Logistics |  | 15.6 |  |  | 20.2 |  |  | 56.4 |  |  | 58.8 |
Logistics intersegment sales |  | 5.6 |  |  | 7.4 |  |  | 16.9 |  |  | 22.2 |
Elimination of intersegment sales |  | (5.6) |  |  | (7.4) |  |  | (16.9) |  |  | (22.2) |
Total sales and other operating revenues |  | $ | 520.4 |  |  | $ | 516.8 |  |  | $ | 1,542.6 |  |  | $ | 1,458.5 |
Adjusted EBITDA reportable segments: |  |  |  |  |  |  |  |
Domestic Coke |  | $ | 64.0 |  |  | $ | 76.6 |  |  | $ | 192.6 |  |  | $ | 216.9 |
Brazil Coke |  | 2.2 |  |  | 3.3 |  |  | 6.9 |  |  | 11.4 |
Logistics |  | 8.4 |  |  | 12.9 |  |  | 33.6 |  |  | 38.0 |
Total Adjusted EBITDA reportable segments |  | $ | 74.6 |  |  | $ | 92.8 |  |  | $ | 233.1 |  |  | $ | 266.3 |
Depreciation and amortization expense: |  |  |  |  |  |  |  |
Domestic Coke |  | $ | 32.1 |  |  | $ | 31.7 |  |  | $ | 97.1 |  |  | $ | 94.9 |
Brazil Coke |  | 0.1 |  |  | — |  |  | 0.2 |  |  | 0.1 |
Logistics |  | 3.2 |  |  | 3.7 |  |  | 9.7 |  |  | 10.9 |
Total reportable segments |  | $ | 35.4 |  |  | $ | 35.4 |  |  | $ | 107.0 |  |  | $ | 105.9 |
Corporate and Other |  | 0.1 |  |  | 0.3 |  |  | 0.2 |  |  | 0.8 |
Total depreciation and amortization expense |  | $ | 35.5 |  |  | $ | 35.7 |  |  | $ | 107.2 |  |  | $ | 106.7 |
Capital expenditures: |  |  |  |  |  |  |  |
Domestic Coke |  | $ | 32.6 |  |  | $ | 20.6 |  |  | $ | 80.8 |  |  | $ | 51.8 |
Brazil Coke |  | — |  |  | — |  |  | 0.2 |  |  | 0.1 |
Logistics |  | 1.4 |  |  | 0.5 |  |  | 3.3 |  |  | 3.2 |
Total reportable segments |  | $ | 34.0 |  |  | $ | 21.1 |  |  | $ | 84.3 |  |  | $ | 55.1 |
Corporate and Other |  | 0.1 |  |  | 0.6 |  |  | 0.2 |  |  | 0.6 |
Total capital expenditures |  | $ | 34.1 |  |  | $ | 21.7 |  |  | $ | 84.5 |  |  | $ | 55.7 |
The following table sets forth the Company's segment assets:
|  | September 30, 2023 |  | December 31, 2022
|  | (Dollars in millions)
Segment assets: |  |  |  |
Domestic Coke |  | $ | 1,443.0 |  |  | $ | 1,422.6 |
Brazil Coke |  | 10.6 |  |  | 15.7 |
Logistics(1) |  | 160.7 |  |  | 193.5 |
Total reportable segments |  | $ | 1,614.3 |  |  | $ | 1,631.8 |
Corporate and Other |  | 64.9 |  |  | 22.8 |
Total assets |  | $ | 1,679.2 |  |  | $ | 1,654.6 |
(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 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:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
|  | (Dollars in millions)
Net income |  | $ | 8.5 |  |  | $ | 42.5 |  |  | $ | 48.2 |  |  | $ | 92.1 |
Add: |  |  |  |  |  |  |  |
Depreciation and amortization expense |  | 35.5 |  |  | 35.7 |  |  | 107.2 |  |  | 106.7 |
Interest expense, net |  | 6.6 |  |  | 8.0 |  |  | 21.0 |  |  | 24.3 |
Income tax expense (benefit) |  | 14.6 |  |  | (2.9) |  |  | 29.7 |  |  | 14.3 |
Transaction costs(1) |  | 0.2 |  |  | 0.4 |  |  | 0.4 |  |  | 1.4 |
Corporate and Other expenses |  | 9.2 |  |  | 9.1 |  |  | 26.6 |  |  | 27.5 |
Adjusted EBITDA reportable segments |  | $ | 74.6 |  |  | $ | 92.8 |  |  | $ | 233.1 |  |  | $ | 266.3 |
(1)Costs incurred as part of the granulated pig iron project with U.S. Steel.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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