This Annual Report on Kind 10-Okay incorporates sure forward-looking statements of anticipated future developments, as outlined within the Non-public Securities Litigation Reform Act of 1995. This dialogue incorporates forward-looking statements about our enterprise, operations and business that contain dangers and uncertainties, such as statements relating to our plans, aims, expectations and intentions. Our future outcomes and monetary situation might differ materially from these we at present anticipate on account of the components we describe below "Cautionary Assertion Regarding Ahead-Trying Statements" and "Threat Elements." At present, such dangers and uncertainties additionally embrace, amongst others: SunCoke's potential to handle its enterprise throughout and after the COVID-19 pandemic; the affect of the COVID-19 pandemic on SunCoke's outcomes of operations, revenues, earnings and money flows; SunCoke's potential to cut back prices and capital spending in response to the COVID-19 pandemic; SunCoke's stability sheet and liquidity all through and following the COVID-19 pandemic; SunCoke's prospects for monetary efficiency and achievement of strategic aims following the COVID-19 pandemic; capital allocation technique following the COVID-19 pandemic; and the final affect on our business and on theU.S. and international financial system ensuing from COVID-19, together with actions by home and overseas governments and others to include the unfold, or mitigate the severity, thereof. This Administration's Dialogue and Evaluation of Monetary Situation and Outcomes of Operations ("MD&A") is predicated on monetary information derived from the monetary statements ready in accordance withUnited States ("U.S.") usually accepted accounting ideas ("GAAP") and sure different monetary information that's ready utilizing a non-GAAP measure. For a reconciliation of the non-GAAP measure to the most comparable GAAP part, see "Non-GAAP Monetary Measures" on the finish of this Merchandise and Word 20 to our consolidated monetary statements. Our MD&A is offered along with the accompanying consolidated monetary statements and notes to help readers in understanding our outcomes of operations, monetary situation and money flows. Our outcomes of operations embrace reference to our enterprise operations and market situations, that are additional described in Half I of this doc. 2020 Overview Our consolidated outcomes of operations in 2020 had been as follows: Yr Ended December 31, 2020 ({Dollars} in tens of millions) Internet earnings $ 8.8 Internet money offered by working actions $ 157.8 Adjusted EBITDA $ 205.9 With the brand new challenges of the COVID-19 pandemic, the Firm revised our key aims in 2020 and delivered towards these aims, together with: •Efficiently navigated by the continuing COVID-19 pandemic. OnMarch 11, 2020 , theWorld Well being Group declared the outbreak of COVID-19 a pandemic. Our services continued to function in the course of the COVID-19 pandemic due to our inclusion within the Vital Manufacturing Sector as outlined by theU.S. Division of Homeland Safety and the designation as a vital enterprise by state and native authorities authorities. Our high precedence has been and continues to be the security and well being of our staff and contractors. In response to the outbreak, we established an inner job pressure of subject material specialists, initiated enhanced well being and security measures throughout our services and enacted a earn a living from home program for all qualifying personnel. We've applied screening procedures constant withU.S. Facilities for Illness Management and Prevention ("CDC") suggestions, which can embrace screening questionnaires and temperature checks for workers, contractors, or different service suppliers. Moreover, to make sure worker security, we've additionally adopted protocols in line withCDC , state, and native steering, which embrace however will not be restricted to elevated cleansing and disinfection, social distancing, bodily separations, masks necessities, contact tracing and quarantine. We proceed to intently monitor the affect of the outbreak of COVID-19 on all facets of our enterprise, together with the way it has and can affect our suppliers. We haven't skilled any vital impacts or interruptions with respect to our potential to acquire coal on account of COVID-19, and we'll proceed to intently monitor our stock ranges to mitigate the chance of any potential provide interruptions. 32
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•Achieved revised monetary aims. Because of the discount in coke volumes throughout 2020 additional mentioned beneath, inAugust 2020 , we revised our 2020 steering vary for Adjusted EBITDA from$235 million to$245 million to$190 million to$200 million in addition to our steering for money generated from working actions from roughly$170 million to$180 million to roughly$116 million to$136 million . We delivered Adjusted EBITDA of$205.9 million , and generated$157.8 million of working money stream, each of which exceeded our revised steering, and internet earnings of$8.8 million . Robust efficiency from our Home Coke operations, coupled with wonderful company-wide price administration drove the monetary efficiency in extra of the revised steering. See Word 20 in our consolidated monetary statements for each the definition of Adjusted EBITDA and the reconciliation from GAAP to the non-GAAP measurement. •Supported buyer base and executed profitable aid negotiations. Steelmaking clients confronted a difficult setting in 2020. In response to the decline in finish consumer demand in addition to in an effort to gradual the unfold of COVID-19, finish consumer producers started idling vegetation, which immediately and adversely impacted our clients. In an effort to assist navigate by this difficult setting, SunCoke labored with our clients to supply near-term coke provide aid in trade for extending sure contracts. The actions we have taken, along with our clients, addressed all of the near-term contracts that had been approaching expiration, additional strengthened our long-term buyer relationships and add significant certainty and stability to our enterprise. See additional dialogue of the main points of those contract amendments in "Objects Impacting Comparability." InDecember 2020 , CMT entered right into a long-term, take-or-pay supplies dealing with and storage settlement withJavelin World Commodities (UK) Ltd ("Javelin"), which incorporates 4 million tons in 2021 and three million tons in 2022. •Continued to pursue balanced capital allocation. We returned significant capital to shareholders by the repurchase of 1.6 million shares throughout 2020 for$7.0 million and the declaration and cost of a dividend of$0.06 per share throughout every quarter of 2020. Moreover, we diminished our complete debt by roughly$110 million in 2020, and we stay targeted on additional strengthening our stability sheet. •Maintained asset integrity for long-term viability. We've ensured that our belongings are safeguarded all through the COVID-19 pandemic to attenuate any potential damaging monetary affect within the long-term, and we ensured our asset base was correctly maintained, whilst working ranges fluctuated. Our Focus and Outlook for 2021 Throughout 2021, our main focus will likely be to: •Ship operations excellence and optimize asset base. We proceed to count on sturdy operational and security efficiency whereas optimizing asset utilization, as effectively as efficiently executing on our 2021 capital plan. We plan to spend roughly$80 million on capital expenditures in 2021, which is barely greater than regular expectations for on-going capital expenditure ranges. •Help full capability utilization by way of export and foundry gross sales. We are going to work in the direction of securing extra commitments and clients for our foundry coke and export gross sales agreements, enabling our Home Coke fleet to function at full capability in 2021. •Place coke enterprise and CMT for long-term success. We proceed to deal with revitalizing CMT with new product and buyer combine. CMT is a sexy terminal for varied varieties of clients because it is among the largest export terminals on theU.S. Gulf Coast and gives strategic entry to seaborne markets. Repositioning CMT from primarily a coal export terminal to a broad-based and diversified terminal will likely be important for the continued success of our logistics enterprise. With profitable aid negotiations and contract extensions executed with our coke clients in 2020, we'll work in the direction of additional enhancing our buyer contracts and offering long-term stability to our coke operations. •Additional stabilize and strengthen SunCoke capital construction. In 2020, we made vital progress on our capital allocation priorities by decreasing our debt, investing in our belongings and returning capital to our shareholders. Our priorities in 2021 stay unchanged. •Obtain monetary aims. We count on to ship Adjusted EBITDA of between$215 million and$230 million and working money stream of between$160 million and$180 million . The anticipated progress in Adjusted EBITDA is pushed primarily from the Home Coke fleet working at full capability in 2021, in addition to greater volumes at our Logistics services, primarily pushed by our new coal dealing with settlement between Javelin and CMT. 33
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Objects Impacting Comparability •Buyer Contract Amendments. Because of the market challenges offered by the present COVID-19 international pandemic, SunCoke executed contract amendments with its steelmaking clients to supply near-term coke provide aid in trade for extending sure contracts. InJuly 2020 , SunCoke reached an settlement with Cliffs Metal for a provide discount of 200 thousand tons of coke in 2020, together with a 125 thousand ton discount at Haverhill II and a 75 thousand ton discount atMiddletown , in trade for extending the Haverhill II contract fromDecember 31, 2021 toJune 30, 2023 . Subsequent to those amendments, inOctober 2020 , the Haverhill II contract was additional prolonged toJune 30, 2025 . Key provisions of the settlement, together with pass-through of coal prices, reimbursement of working and upkeep bills topic to sure metrics, and pricing stay unchanged. Additionally inJuly 2020 , SunCoke reached an settlement withAM USA , now often known as Cliffs Metal, to cut back provide by roughly 300 thousand coke tons in 2020 in trade for extending the Haverhill I and Jewell contracts toDecember 31, 2025 . Beneath the brand new contracts, SunCoke will produce a mixed 800 thousand tons for the 2021 contract yr and a mixed 400 thousand tons on an annualized foundation for the 2022 by 2025 contract years. These buyer contract amendments resulted in a discount of anticipated 2020 Adjusted EBITDA of roughly$20 million , internet of price financial savings. •Simplification Transaction. The Partnership, a wholly-owned subsidiary of SunCoke, owns our Haverhill,Middletown , andGranite Metropolis cokemaking services andConvent Marine Terminal ("CMT"),Kanawha River Terminal ("KRT") andSunCoke Lake Terminal ("Lake Terminal "). Previous toJune 28, 2019 , SunCoke owned a 60.4 p.c restricted companion curiosity within the Partnership, a then publicly traded grasp restricted partnership, in addition to our 2.0 p.c normal companion curiosity. The remaining 37.6 p.c restricted companion curiosity within the Partnership was held by public unitholders. OnJune 28, 2019 , the Firm acquired all 17,727,249 excellent widespread items of the Partnership not already owned by SunCoke in trade for twenty-four,818,149 newly issued SunCoke widespread shares within the Simplification Transaction. Moreover, the ultimate pro-rated quarterly Partnership distribution was settled with 635,502 newly issued SunCoke widespread shares. Following the completion of the Simplification Transaction, the Partnership turned a wholly-owned subsidiary of SunCoke. As ofJanuary 1, 2020 , the Partnership merged with and intoSunCoke Power Companions Finance Corp. , which is additionally a wholly-owned subsidiary of the Firm. The Simplification Transaction was accounted for as a non-cash fairness transaction, and no acquire or loss was acknowledged in our Consolidated Statements of Operations for this transaction. The Firm incurred transaction prices totaling$11.0 million , of which$5.4 million had been incurred by SunCoke and had been capitalized as a discount to extra paid-in capital on the Consolidated Stability Sheets. The remaining transaction prices had been incurred by the Partnership leading to$4.9 million and$0.4 million of expense included in promoting, normal and administrative bills on the Consolidated Statements of Operations for the years endedDecember 31, 2019 , and 2018, respectively. Subsequent to the closing of the Simplification Transaction, SunCoke incurred$0.3 million of authorized and consulting prices, which had been included in promoting, normal and administrative bills on the Consolidated Statements of Operations. All transaction prices had been excluded from Adjusted EBITDA. With the closing of the Simplification Transaction, the earnings beforehand attributable to noncontrolling curiosity within the Partnership turned one hundred pc attributable to SunCoke and, due to this fact, and is now taxable to the Firm. •Antagonistic Logistics Buyer Developments. A good portion of our logistics enterprise has traditionally been from long-term, take-or-pay contracts withMurray American Coal, Inc. ("Murray") andForesight Power LLC ("Foresight"), which had been adversely impacted by declining coal export costs and home demand. Murray filed for Chapter 11 chapter onOctober 29, 2019 . Foresight engaged outdoors counsel and monetary advisors to evaluate restructuring choices throughout 2019 and subsequently filed for Chapter 11 chapter onMarch 10, 2020 . Each Murray and Foresight's contracts with CMT had been subsequently rejected by the chapter courts. Because of these developments, throughout 2019, the Firm recorded non-cash, pre-tax impairment expenses to the Logistics phase on the Consolidated Statements of Operations of$247.4 million , of which$73.5 million represented a full write-down of the Logistics goodwill stability, in addition to a$113.3 million impairment of CMT's long-lived intangible belongings and a$60.6 million impairment of CMT's properties, vegetation and gear. 34
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See Word 8 to our consolidated monetary statements. These non-cash impairment expenses resulted in a$69.1 million earnings tax profit in 2019. Consolidated Outcomes of Operations The next part consists of year-over-year evaluation of consolidated outcomes of operations for the yr endedDecember 31, 2020 as in comparison with the yr endedDecember 31, 2019 . See "Evaluation of Section Outcomes" later on this part for additional particulars of those outcomes. Confer with Administration's Dialogue and Evaluation of Monetary Situation and Outcomes of Operations in our 2019 Annual Report on Kind 10-Okay for the year-over-year evaluation of consolidated outcomes of operations for the yr endedDecember 31, 2019 as in comparison with the yr endedDecember 31, 2018 . Years Ended December 31, Improve 2020 2019 (Lower) ({Dollars} in tens of millions) Revenues Gross sales and different working income$ 1,333.0 $ 1,600.3 $ (267.3) Prices and working bills Price of merchandise offered and working bills 1,048.2 1,277.6 (229.4) Promoting, normal and administrative bills 81.4 75.8 5.6 Depreciation and amortization expense 133.7 143.8 (10.1) Lengthy-lived asset and goodwill impairment(1) - 247.4 (247.4) Whole prices and working bills 1,263.3 1,744.6 (481.3) Working earnings (loss) 69.7 (144.3) 214.0 Curiosity expense, internet 56.3 60.3 (4.0) Achieve on extinguishment of debt, internet (5.7) (1.5) (4.2) Revenue (loss) earlier than earnings tax expense (profit) 19.1 (203.1) 222.2 Revenue tax expense (profit) 10.3 (54.7) 65.0 Internet earnings (loss) 8.8 (148.4) 157.2 Much less: Internet earnings attributable to noncontrolling pursuits 5.1 3.9 1.2 Internet earnings (loss) attributable to SunCoke Power, Inc. $ 3.7$ (152.3) $ 156.0 (1)See year-over-year modifications described in "Objects Impacting Comparability." Gross sales and Different Working Income and Prices of Merchandise Bought and Working Bills. Gross sales and different working income and prices of merchandise offered and working bills decreased in 2020 as in comparison with 2019, primarily because of the pass-through of decrease coal costs in addition to the affect of quantity aid offered to our clients impacted by the COVID-19 pandemic in our Home Coke phase. Revenues additional declined on account of decrease volumes in our Logistics phase. Promoting, Common and Administrative Bills. The rise in promoting, normal and administrative expense was pushed by analysis and improvement prices associated to foundry coke manufacturing of$3.9 million , greater expense of$2.0 million as a results of revaluing sure legacy liabilities in addition to prices incurred to resolve sure authorized issues. These will increase had been partly offset by decrease worker associated bills throughout 2020 as in comparison with 2019 in addition to the absence of$4.9 million of transaction prices incurred throughout 2019. Depreciation and Amortization Expense. The lower in depreciation and amortization expense throughout 2020 was partly pushed by the impairment of our Logistics belongings throughout 2019, which lowered the carrying worth of these belongings and decreased the associated depreciation expense, in addition to the absence of accelerated depreciation related to upgrades to sure warmth restoration steam turbines, which was recorded in 2019. These decreases had been partially offset by depreciation in 2020 on belongings newly positioned in service, primarily associated to the completion of rebuilt ovens atIndiana Harbor close to the top of 2019, which elevated depreciation$8.1 million in 2020 as in comparison with 2019. Curiosity Expense, internet. Weighted common debt balances throughout 2020 and 2019 had been$785.8 million and$845.0 million , respectively. Weighted common rates of interest throughout 2020 and 2019 had been 6.74 p.c and seven.16 p.c, respectively, ensuing in associated curiosity expense of$52.9 million and$60.5 million , respectively. A discount in LIBOR-based rates of interest and decrease rates of interest on our revolving facility on account of the restructuring within the third quarter of 2019, in addition to 35
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decrease balances on our greater rate of interest debt because of the repurchases of our Senior Notes in 2020 resulted in decrease weighted common rates of interest in 2020 as in comparison with 2019. Revenue Taxes. The earnings tax expense recorded was$10.3 million in 2020 in contrast to an earnings tax advantage of$54.7 million in 2019. Sure discrete gadgets, such as pre-tax impairment expenses recorded to our Logistics belongings mentioned in "Objects Impacting Comparability" and the revaluation of sure deferred tax belongings mentioned in Word 5 to our consolidated monetary statements impacted comparability between intervals. Noncontrolling Curiosity. Revenue attributable to noncontrolling curiosity represents the widespread public unitholders' curiosity within the Partnership previous to the closing of the Simplification Transaction in addition to a third-party curiosity in ourIndiana Harbor cokemaking facility. The next desk gives particulars into internet earnings attributable to noncontrolling curiosity.
Years accomplished
2020 2019
Internet earnings attributable to the participation of third events in our
$ 5.1
Internet earnings attributable to widespread public unitholders of the restricted partnership
- 2.6 Internet earnings attributable to noncontrolling curiosity
$ 5.1
The completion of theIndiana Harbor oven rebuild venture throughout 2019 improved working outcomes, leading to a rise in internet earnings attributable to third-party curiosity in ourIndiana Harbor cokemaking facility. Outcomes of Reportable Enterprise Segments We report our enterprise outcomes by three segments: •Home Coke consists of our Jewell facility, situated inVansant, Virginia , ourIndiana Harbor facility, situated inEast Chicago, Indiana , our Haverhill facility, situated inFranklin Furnace, Ohio , ourGranite Metropolis facility situated inGranite Metropolis, Illinois , and ourMiddletown facility situated inMiddletown, Ohio . •Brazil Coke consists of operations in Vitória,Brazil , the place we function the ArcelorMittal Brazil cokemaking facility. •Logistics consists ofConvent Marine Terminal ("CMT"), situated inConvent, Louisiana ,Kanawha River Terminal ("KRT"), situated inCeredo andBelle, West Virginia ,SunCoke Lake Terminal ("Lake Terminal "), situated inEast Chicago, Indiana , andDismal River Terminal ("DRT"), situated inVansant, Virginia .Lake Terminal and DRT are situated adjoining to ourIndiana Harbor and Jewell cokemaking services, respectively. The operations of every of our segments are described in Half I of this doc. Company bills that may be recognized with a phase have been included in figuring out phase outcomes. The rest is included in Company and Different, together with exercise from our legacy coal mining enterprise. Administration believes Adjusted EBITDA is a crucial measure of working efficiency and makes use of it as the first foundation for the chief working resolution maker to guage the efficiency of every of our reportable segments. Adjusted EBITDA shouldn't be thought-about an alternative to the reported outcomes ready in accordance with GAAP. See Word 20 to our consolidated monetary statements. 36
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Section Working Information The next desk units forth monetary and working information by phase for the years endedDecember 31, 2020 and 2019: Years Ended December 31, Improve 2020 2019 (Lower) ({Dollars} in tens of millions, besides per ton quantities) Gross sales and different working income: Home Coke$ 1,265.4 $ 1,489.1 $ (223.7) Brazil Coke 31.6 38.4 (6.8) Logistics 36.0 72.8 (36.8) Logistics intersegment gross sales 22.1 26.3 (4.2) Elimination of intersegment gross sales (22.1) (26.3) 4.2 Whole gross sales and different working income$ 1,333.0 $ 1,600.3 $ (267.3) Adjusted EBITDA(1): Home Coke$ 217.0 $ 226.7 $ (9.7) Brazil Coke 13.5 16.0 (2.5) Logistics 17.3 42.6 (25.3) Company and Different, together with legacy prices, internet(2) (41.9) (37.4) (4.5) Adjusted EBITDA$ 205.9 $ 247.9 $ (42.0) Coke Working Information: Home Coke capability utilization (%) 91 98 (7) Home Coke manufacturing volumes (hundreds of tons) 3,840 4,168 (328) Home Coke gross sales volumes (hundreds of tons) 3,789 4,171 (382) Home Coke Adjusted EBITDA per ton(3)$ 57.27 $ 54.35 $ 2.92
Brazilian coke manufacturing facility (in hundreds of tonnes)
1,396 1,641 (245) Logistics Working Information: Tons dealt with (hundreds of tons)(4) 14,678 21,053 (6,375) (1)See Word 20 in our consolidated monetary statements for each the definition of Adjusted EBITDA and the reconciliation from GAAP to the non-GAAP measurement for the years endedDecember 31, 2020 , 2019 and 2018. (2)Company and Different consists of the exercise from our legacy coal mining enterprise, which incurred Adjusted EBITDA losses of$13.2 million and$11.2 million for the years endedDecember 31, 2020 and 2019, respectively. Moreover, Company and Different consists of foundry associated analysis and improvement prices of$3.9 million throughout 2020. (3)Displays Home Coke Adjusted EBITDA divided by Home Coke gross sales volumes. (4)Displays inbound tons dealt with in the course of the interval. 37
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Evaluation of Section Outcomes
Home Coke
The next desk explains year-over-year modifications in our Home Coke
phase's gross sales and different working revenues and Adjusted EBITDA outcomes:
Gross sales and different
working income Adjusted EBITDA
2020 vs 2019 2020 vs 2019
({Dollars} in tens of millions)
Starting $ 1,489.1 $ 226.7
Volumes(1) (113.5) (34.1)
Coal price restoration and yields(2) (116.7) (0.3)
Working and upkeep prices(3) 3.2 28.7
Power and different(4) 3.3 (4.0)
Ending $ 1,265.4 $ 217.0
(1)Improved efficiency from rebuilt ovens at our Indiana Harbor facility
elevated volumes, which elevated gross sales and different working revenues and
Adjusted EBITDA by $47.2 million and $14.1 million , respectively. This improve
was greater than offset by the amount aid offered to our clients impacted by
the COVID-19 pandemic starting in the course of the second quarter 2020.
(2)The move by of decrease coal costs resulted within the decline in revenues as
effectively as decrease coal-to-coke yields.
(3)Adjusted EBITDA benefited from decrease working and upkeep prices throughout
the fleet in addition to the absence of prices associated to the Indiana Harbor oven
rebuild initiative.
(4)Revenues benefited from foundry coke gross sales of $4.1 million in addition to the
move by of upper transportation prices. Revenues and Adjusted EBITDA
decreased with decrease power manufacturing ranges on account of quantity aid
mentioned above.
Logistics
The next desk explains year-over-year modifications in our Logistics phase's
gross sales and different working revenues and Adjusted EBITDA outcomes:
Gross sales and different
working income,
inclusive of
intersegment gross sales Adjusted EBITDA
2020 vs 2019 2020 vs 2019
({Dollars} in tens of millions)
Starting $ 99.1 $ 42.6
Transloading volumes(1) (27.5) (22.1)
Worth/margin affect of combine in transloading
companies (6.4) (6.4)
Different(2) (7.1) 3.2
Ending $ 58.1 $ 17.3
(1)Decrease volumes had been primarily the results of decrease demand and depressed thermal
coal export pricing, which adversely impacted main logistics clients at CMT.
The COVID-19 pandemic additional impacted volumes.
(2)Ancillary revenues, primarily for prices handed by to the client,
declined with the lower in volumes. Adjusted EBITDA benefited from decrease
working and upkeep prices.
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Brazil Coke Gross sales and different working income decreased$6.8 million , or 18 p.c, to$31.6 million in 2020 in comparison with$38.4 million in 2019, reflecting decrease volumes in addition to the affect of unfavorable modifications in overseas foreign money charges. Adjusted EBITDA decreased$2.5 million , or 16 p.c, to$13.5 million in 2020 in comparison with$16.0 million in 2019, reflecting decrease volumes. Company and Different Company and Different bills, which embrace prices associated to our legacy coal mining enterprise, elevated$4.5 million , or 12 p.c, to$41.9 million in 2020 as in comparison with$37.4 million in 2019. This improve was pushed by foundry associated analysis and improvement prices of$3.9 million in addition to greater legacy prices of roughly$2.0 million throughout 2020. These will increase to company and different expense had been partly offset by decrease worker associated bills. Liquidity and Capital Assets Our main liquidity wants are to fund working capital, fund investments, service our debt, preserve money reserves and substitute partially or absolutely depreciated belongings and different capital expenditures. Our sources of liquidity embrace money generated from operations, borrowings below our revolving credit score facility and, once in a while, debt and fairness choices. We imagine our present assets are enough to fulfill our working capital necessities for our present enterprise for no less than the subsequent 12 months and thereafter for the foreseeable future. Nonetheless, the Firm continues to guage whether or not any borrowings or different actions are wanted to safeguard the enterprise amidst the fluid market situations and the uncertainty across the magnitude and length of the COVID-19 pandemic. As ofDecember 31, 2020 , we had$48.4 million of money and money equivalents and$299.9 million of borrowing availability below our credit score facility. We might, once in a while, search to retire or buy extra quantities of our excellent fairness and/or debt securities by money purchases and/or exchanges for different securities, in open market purchases, privately negotiated transactions or in any other case. Such repurchases or exchanges, if any, will rely on prevailing market situations, our liquidity necessities, contractual restrictions and different components. The quantities concerned could also be materials. Confer with additional liquidity dialogue beneath in addition to to Word 12 to our consolidated monetary statements and "Half I - Merchandise 5 - Marketplace for Registrant's Frequent Fairness, Associated Stockholders Issues and Issuer Purchases ofFairness Securities ." Throughout the first quarter of 2020, the U.S. Division ofLabor's Division of Coal Mine Employees' Compensation ("DCMWC") requested SunCoke present extra collateral of roughly$32 million to safe sure of its black lung obligations. SunCoke exercised its proper to attraction the DCMWC's dedication and offered extra data supporting the Firm's place inCould 2020 . If the Firm's attraction is unsuccessful, the Firm could also be required to supply extra collateral to obtain its self-insurance reauthorization from the DCMWC, which might probably cut back the Firm's liquidity. See additional dialogue in Word 13 to our consolidated monetary statements. Money Move Abstract The next desk units forth a abstract of the web money offered by (utilized in) working, investing and financing actions for the years endedDecember 31, 2020 and 2019: Years Ended December 31, 2020 2019 ({Dollars} in tens of millions) Internet money offered by working actions$ 157.8 $ 181.9 Internet money utilized in investing actions (75.3) (109.8) Internet money utilized in financing actions (131.2) (120.7) Internet (lower) improve in money and money equivalents $
(48.7)
Money Supplied by Working Actions Internet money offered by working actions decreased by$24.1 million to$157.8 million in 2020 as in comparison with 2019, reflecting decrease working outcomes pushed by decrease volumes. Main working capital, which is comprised of accounts receivable, inventories and accounts payable, additionally resulted in a$5.8 million lower in 2020 working money flows as in comparison with 2019, reflecting timing of coal purchases within the fourth quarter of 2020. 39
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Money Utilized in Investing Actions Internet money utilized in investing actions decreased$34.5 million to$75.3 million in 2020 as in comparison with 2019 pushed by decrease capital spending additional mentioned in Capital Necessities and Expenditures. Money Utilized in Financing Actions Internet money utilized in financing actions elevated$10.5 million to$131.2 million in 2020 as in comparison with$120.7 million in 2019. In 2020, the Firm repurchased$62.7 million face worth of excellent 2025 Senior Notes for$55.9 million of money cost, in comparison with$50.0 million face worth of 2025 Senior Notes repurchased for$46.6 million money funds in 2019. The Firm repurchased shares for complete money funds of$7.0 million in 2020 in comparison with$36.3 million in 2019 below the repurchase program mentioned in "Merchandise 5. Marketplace for Registrant's Frequent Fairness, Associated Stockholders Issues and Issuer Purchases ofFairness Securities ", and paid dividends to stockholders of$19.9 million in 2020 in comparison with$5.1 million in 2019. Moreover, in 2020, the Firm made internet repayments of$55.0 million on the Revolving Facility, which was partially offset by$10.0 million of financing obligation proceeds, additional mentioned in Word 12. The prior interval additionally displays distribution funds made by the Partnership to public unitholders of$14.2 million previous to the Simplification Transaction, and extra funds of$5.1 million made in reference to the Simplification Transaction. Moreover, the Revolving Facility refinancing within the third quarter of 2019, which elevated borrowings on the revolver and paid down the$43.3 million time period mortgage, had no internet affect on financing money flows. Dividends Throughout every quarter of 2020, SunCoke's Board of Administrators declared a quarterly money dividend of$0.06 per share of the Firm's widespread inventory, see additional dialogue in "Merchandise 5. Marketplace for Registrant's Frequent Fairness, Associated Stockholders Issues and Issuer Purchases ofFairness Securities ." Share Repurchase Packages In 2020, the Firm repurchased$7 million of our widespread inventory, or 1.6 million shares, within the open marketplace for a median share worth of$4.29 , leaving$96.3 million accessible below the present approved repurchase program as ofDecember 31, 2020 . For additional element on our share repurchase packages see "Merchandise 5. Marketplace for Registrant's Frequent Fairness, Associated Stockholders Issues and Issuer Purchases ofFairness Securities ." Covenants As ofDecember 31, 2020 , we had been in compliance with all relevant debt covenants. We don't anticipate a violation of those covenants nor can we anticipate that any of those covenants will prohibit our operations or our potential to acquire extra financing. See Word 12 to the consolidated monetary statements for particulars on debt covenants. Credit score Score InMarch 2020 ,S&P World Scores reaffirmed our company credit standing of BB- (steady). InApril 2020 , Moody's Buyers Service reaffirmed our company credit standing of B1 and adjusted the score outlook to damaging. Contractual Obligations As ofDecember 31, 2020 vital contractual obligations associated to debt had been$690.5 million of principal borrowings and$205.2 million of associated curiosity, which will likely be repaid by 2025. Projected curiosity prices on variable charge devices had been calculated utilizing market charges atDecember 31, 2020 . See Word 12 to our consolidated monetary statements. We even have contractual obligations for leases, together with land, workplace house, gear, railcars and locomotives. See Word 14 to our consolidated monetary statements. Capital Necessities and Expenditures Our operations are capital intensive, requiring vital funding to improve or improve current operations and to fulfill environmental and operational rules. The extent of future capital expenditures will rely on varied components, together with market situations and buyer necessities, and should differ from present or anticipated ranges. Materials modifications in capital expenditure ranges might affect monetary outcomes, together with however not restricted to the quantity of depreciation, curiosity expense and restore and upkeep expense. 40
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Our capital necessities have consisted, and are anticipated to consist, primarily
of:
•Ongoing capital expenditures required to keep up gear reliability, the
integrity and security of our coke ovens and steam turbines and to adjust to
environmental rules. Ongoing capital expenditures are made to exchange
partially or absolutely depreciated belongings as a way to preserve the prevailing
working capability of the belongings and/or to increase their helpful lives and in addition
embrace new gear that improves the effectivity, reliability or effectiveness
of current belongings. Ongoing capital expenditures don't embrace regular repairs
and upkeep bills, that are expensed as incurred;
•Environmental remediation venture expenditures required to implement design
modifications to make sure that our current services function in accordance with
current environmental permits; and
•Growth capital expenditures to amass and/or assemble complementary belongings
to develop our enterprise and to broaden current services in addition to capital
expenditures made to allow the renewal of a coke gross sales settlement and/or
logistics service settlement and on which we count on to earn an affordable return.
The next desk summarizes ongoing, environmental remediation venture and
growth capital expenditures:
Years Ended December 31,
2020 2019
({Dollars} in tens of millions)
Ongoing capital(1) $ 59.5 $ 94.2
Environmental remediation venture(2) - 15.9
Growth capital(3) 14.4 -
Whole capital expenditures(4) $ 73.9 $ 110.1
(1)Contains $34.8 million of capital expenditures in reference to the oven
rebuild initiative at our Indiana Harbor facility for the yr ended December
31, 2019 . This initiative was accomplished on the finish of 2019.
(2)Contains $2.3 million of curiosity capitalized in reference to the Granite
Metropolis gasoline sharing venture for the yr ended December 31, 2019 . The gasoline sharing
tasks had been accomplished in June 2019 .
(3)Contains capital spending in reference to the foundry cokemaking progress
venture, together with $0.2 million of curiosity capitalized for the yr ended
December 31, 2020 .
(4)Displays precise money funds in the course of the intervals offered for our capital
necessities.
In 2021, we count on our capital expenditures to be roughly $80 million .
Vital Accounting Insurance policies
A abstract of our vital accounting insurance policies is included in Word 2 to the
consolidated monetary statements. Our administration believes that the applying
of those insurance policies on a constant foundation allows us to supply the customers of our
monetary statements with helpful and dependable details about our working
outcomes and monetary situation. The preparation of our consolidated monetary
statements requires administration to make estimates and assumptions that have an effect on the
reported quantities of belongings, liabilities, revenues and bills, and the
disclosures of contingent belongings and liabilities. Important gadgets which are
topic to such estimates and assumptions encompass: (1) black lung profit
obligations and (2) accounting for impairments of goodwill and long-lived
belongings. Though our administration bases its estimates on historic expertise and
varied different assumptions which are believed to be affordable below the
circumstances, precise outcomes might differ to some extent from the estimates on
which our consolidated monetary statements have been ready at any level in
time. Regardless of these inherent limitations, our administration believes the
"Administration's Dialogue and Evaluation of Monetary Situation and Outcomes of
Operations" and consolidated monetary statements and footnotes present a
significant and honest perspective of our monetary situation.
Black Lung Profit Liabilities
The Firm has obligations associated to coal employees' pneumoconiosis, or black
lung, advantages to sure of our former coal miners and their dependents. Such
advantages are offered for below Title IV of the Federal Coal Mine and Security Act
of 1969 and subsequent amendments, in addition to for black lung advantages offered
within the states of Virginia , Kentucky and West Virginia pursuant to employees'
compensation laws. The Affected person Safety and Reasonably priced Care Act
("PPACA"), which was applied in 2010, amended earlier laws associated
to coal employees' black lung obligations. PPACA gives for the automated
extension of awarded lifetime advantages to surviving spouses and modifications the
authorized standards used to
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assess and award claims. We act as a self-insurer for each state and federal
black lung advantages and alter our legal responsibility every year primarily based upon actuarial
calculations of our anticipated future funds for these advantages.
Our unbiased actuarial consultants calculate the current worth of the
estimated black lung legal responsibility yearly primarily based on actuarial fashions using our
inhabitants of former coal miners, historic payout patterns of each the Firm
and the business, actuarial mortality charges, incapacity incidence, medical
prices, dying advantages, dependents, low cost charges and the present federally
mandated payout charges. The estimated legal responsibility could also be impacted by future modifications
within the statutory mechanisms, modifications by courtroom selections and modifications in
submitting patterns pushed by perceptions of success by claimants and their
advisors, the affect of which can't be estimated.
The next desk summarizes low cost charges utilized, energetic claims and the
complete black lung liabilities:
December 31,
2020 2019
Low cost charge(1) 2.0 % 2.9 %
Lively claims 309 324
Whole legal responsibility for black lungs (in tens of millions of {dollars}) (2)
(1)The low cost charge is decided primarily based on a portfolio of high-quality company bonds with maturities which are in line with the estimated length of our black lung obligations. A lower of 25 foundation factors within the low cost charge would have elevated black lung expense by$1.6 million in 2020. (2)The present portion of the black lung legal responsibility was$4.6 million at eachDecember 31, 2020 and 2019, respectively, and was included in accrued liabilities on the Consolidated Stability Sheets.
The next desk summarizes the annual funds and bills for black lungs:
Years Ended December 31,
2020 2019 2018
({Dollars} in tens of millions)
Funds $ 6.0 $ 5.2 $ 6.3
Expense(1) $ 15.4 $ 10.9 $ 5.4
(1)Bills incurred in extra of annual accretion of the black lung legal responsibility
primarily replicate the affect of modifications in low cost charges in addition to will increase
in anticipated future claims on account of greater refiling and approval charge
assumptions.
Accounting for Impairments
Goodwill
Goodwill , which represents the surplus of the acquisition worth over the honest worth
of internet belongings acquired, is assessed for impairment as of October 1 of every yr,
or when occasions happen or circumstances change that will, extra seemingly than not,
cut back the honest worth of a reporting unit to beneath its carrying worth.
A good portion of our logistics enterprise has traditionally been from
long-term, take-or-pay contracts with Murray American Coal, Inc. ("Murray") and
Foresight Power LLC ("Foresight"), which had been adversely impacted by declining
coal export costs and home demand. Murray filed for Chapter 11 chapter
on October 29, 2019 . Foresight engaged outdoors counsel and monetary advisors to
assess restructuring choices throughout 2019 and subsequently filed for Chapter 11
chapter on March 10, 2020 . Each Murray and Foresight's contracts with CMT
had been subsequently rejected by the chapter courts.
The Firm concluded the affect of the occasions mentioned above might extra seemingly
than not cut back the honest worth of the Logistics reporting unit beneath its
carrying worth, requiring SunCoke to carry out its annual goodwill check as of
September 30, 2019 . The honest worth of the Logistics reporting unit, which was
decided primarily based on a reduced money stream evaluation, didn't exceed the carrying
worth of the reporting unit. Key assumptions in our goodwill impairment check
included diminished forecasted volumes and diminished charges from Foresight, no additional
enterprise from Murray, incremental service provider enterprise and a reduction charge of 12
p.c, representing the estimated weighted common price of capital for this
enterprise line. In consequence, the Firm recorded a $73.5 million non-cash,
pre-tax impairment cost to the Logistics phase on the Consolidated
Statements of Operations throughout 2019, which represents a full impairment of the
Logistics goodwill stability.
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The Firm's complete goodwill stability as ofDecember 31, 2020 was$3.4 million . Please see Word 8 to our consolidated monetary statements for additional dialogue on the present goodwill stability. Lengthy-lived Property Lengthy-lived belongings are comprised of properties, vegetation and gear in addition to our long-lived intangible belongings, comprised of buyer contracts, buyer relationships, and permits. Lengthy-lived belongings are reviewed for impairment at any time when occasions or modifications in circumstances point out that the carrying quantity of the belongings will not be recoverable. An extended-lived asset, or group of belongings, is taken into account to be impaired when the undiscounted internet money flows anticipated to be generated by the asset are lower than its carrying quantity. Such estimated future money flows are extremely subjective and are primarily based on quite a few assumptions about future operations and market situations. The impairment acknowledged is the quantity by which the carrying quantity exceeds the honest market worth of the impaired asset, or group of belongings. It is usually troublesome to exactly estimate honest market worth as a result of quoted market costs for our long-lived belongings will not be available. Due to this fact, honest market worth is mostly primarily based on the current values of estimated future money flows utilizing low cost charges commensurate with the dangers related to the belongings being reviewed for impairment. No impairments on long-lived belongings had been recorded in 2020. Because of our logistics clients' occasions mentioned above, CMT's long-lived belongings, together with buyer contracts, buyer relationships, permits and properties, plant and gear, had been additionally assessed for impairment as ofSeptember 30, 2019 . The Firm re-evaluated its projections for throughput volumes, pricing and buyer efficiency towards the prevailing long-term, take-or-pay contracts. The ensuing undiscounted money flows had been decrease than the carrying worth of the asset group. Due to this fact, the Firm assessed the honest worth of the asset group to measure the quantity of impairment. The honest worth of the CMT long-lived belongings was decided to be$112.1 million primarily based on discounted money flows, asset alternative price and changes for capability utilization, that are thought-about Stage 3 inputs within the honest worth hierarchy as outlined in Word 18 to our consolidated monetary statements. Key assumptions in our discounted money flows included diminished forecasted volumes and diminished charges from Foresight, no additional enterprise from Murray, incremental service provider enterprise and a reduction charge of 11 p.c, representing the estimated weighted common price of capital for this asset group. In consequence, throughout 2019, the Firm recorded a complete non-cash, pre-tax long-lived asset impairment cost of$173.9 million included in long-lived asset and goodwill impairment on the Consolidated Statements of Operations, all of which was attributable to the Logistics phase. The cost included an impairment of CMT's long-lived intangible belongings of$113.3 million and of CMT's property, plant and gear of$60.6 million . Current Accounting Requirements See Word 2 to our consolidated monetary statements. Non-GAAP Monetary Measures Along with the GAAP outcomes offered within the Annual Report on Kind 10-Okay, we have offered a non-GAAP monetary measure, Adjusted EBITDA. Our administration, as effectively as sure traders, makes use of this non-GAAP measure to research our present and anticipated future monetary efficiency. This measure just isn't in accordance with, or an alternative to, GAAP and could also be completely different from, or inconsistent with, non-GAAP monetary measures utilized by different corporations. See Word 20 in our consolidated monetary statements for each the definition of Adjusted EBITDA and the reconciliation from GAAP to the non-GAAP measurement for 2020, 2019 and 2018. 43
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Under is a reconciliation of 2021 Adjusted EBITDA steering from its closest GAAP
measure:
2021
Low Excessive
Internet earnings $ 15 $ 35
Add:
Depreciation and amortization expense 137 133
Curiosity expense, internet 55 50
Revenue tax expense 8 12
Adjusted EBITDA $ 215 $ 230
Subtract: Adjusted EBITDA attributable to noncontrolling curiosity(1) 9 9
Adjusted EBITDA attributable to SunCoke Power, Inc.
(1)Displays non-controlling curiosity inIndiana Harbor . Guarantor Monetary and Non-Monetary Disclosures The Firm has an current shelf registration assertion, which was filed onNovember 8, 2019 , upon the expiration of the prior shelf registration assertion, for the providing of debt and/or securities on a delayed or steady foundation and is presenting these guarantor monetary and non-financial disclosures in connection therewith. The next data has been ready and offered pursuant to amended SEC Rule 3-10 of Regulation S-X and new SEC Rule 13-01 of Regulation S-X, which had been adopted by theSEC onMarch 2, 2020 . For functions of the next data,SunCoke Power, Inc. is referred to as "Issuer." All one hundred pc owned subsidiaries of the Firm, together withFinance Corp. and its consolidated subsidiaries, are anticipated to function guarantors of obligations ("Guarantor Subsidiaries") included within the shelf registration assertion, aside from theIndiana Harbor partnership and sure of the Firm's company financing, worldwide and legacy coal mining subsidiaries ("Non-Guarantors"). These ensures will likely be full and unconditional (topic, within the case of the Guarantor Subsidiaries, to customary launch provisions as described beneath) and joint and a number of other. The assure of a Guarantor Subsidiary will terminate upon: •a sale or different disposition of the Guarantor Subsidiary or of all or considerably all of its belongings; •a sale of nearly all of the capital inventory of a Guarantor Subsidiary to a third-party, after which the Guarantor Subsidiary is now not a "Restricted Subsidiary" in accordance with the indenture governing the notes; •the liquidation or dissolution of a Guarantor Subsidiary as long as no "Default" or "Occasion of Default", as outlined below the indenture governing the notes, has occurred in consequence thereof; •the designation of a Guarantor Subsidiary as an "unrestricted subsidiary" in accordance with the indenture governing the notes; •the necessities for defeasance or discharge of the indenture governing the notes having been happy; or •the discharge, aside from the discharge by funds by a Guarantor Subsidiary, from different indebtedness that resulted within the obligation of the Guarantor Subsidiary below the indenture governing the notes. 44
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The next tables current summarized monetary data for the Issuer and
the Guarantor Subsidiaries on a mixed foundation after intercompany balances and
transactions between the Issuer and Guarantor Subsidiaries have been eradicated
and excluding funding in and fairness in earnings from the Non-Guarantor
Subsidiaries:
Statements of Operations Issuer and Guarantor Subsidiaries
Yr Ended December 31, 2020
({Dollars} in tens of millions)
Revenues $ 962.6
Prices and working bills 906.6
Working earnings 56.0
Internet loss $ (6.6)
Issuer and Guarantor
Stability Sheets Subsidiaries
December 31, 2020
({Dollars} in tens of millions)
Property:
Money $ 44.6
Present receivables from Non-Guarantor subsidiaries 14.2
Different present belongings
162.1
Properties, vegetation and gear, internet 1,176.7 Different non-current belongings 54.8 Whole belongings $ 1,452.4 Liabilities: Present liabilities $ 126.5 Lengthy-term debt and financing obligations
673.9
Lengthy-term payable to Non-Guarantor subsidiaries 189.4
Different long-term liabilities 240.6
Whole liabilities $ 1,230.4
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CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS We've made forward-looking statements on this Annual Report on Kind 10-Okay, together with, amongst others, within the sections entitled "Enterprise," "Threat Elements," "Quantitative and Qualitative Disclosures About Market Threat" and "Administration's Dialogue and Evaluation of Monetary Situation and Outcomes of Operations." Such forward-looking statements are primarily based on administration's beliefs and assumptions and on data at present accessible. Ahead-looking statements embrace, however are not restricted to, the knowledge regarding our expectations relating to the longer term affect of COVID-19 and the associated financial situations on our enterprise, monetary situation and outcomes of operations, attainable or assumed future outcomes of operations, enterprise methods, financing plans, aggressive place, potential progress alternatives, potential working efficiency, the results of competitors, the anticipated growth into the foundry coke market and the results of future laws or rules. Ahead-looking statements embrace all statements that aren't historic details and could also be recognized by the usage of forward-looking terminology such because the phrases "imagine," "count on," "plan," "intend," "anticipate," "estimate," "predict," "potential," "proceed," "might," "will," "ought to" or the damaging of those phrases or related expressions. Specifically, statements on this Annual Report on Kind 10-Okay regarding future dividend declarations are topic to approval by our Board of Administrators and can be primarily based upon circumstances then current. Ahead-looking statements contain dangers, uncertainties and assumptions. Precise outcomes might differ materially from these expressed in these forward-looking statements. You shouldn't put undue reliance on any forward-looking statements. We don't have any intention or obligation to replace any forward-looking assertion (or its related cautionary language), whether or not on account of new data or future occasions, after the date of this Annual Report on Kind 10-Okay, besides as required by relevant legislation. The danger components mentioned in "Threat Elements" might trigger our outcomes to vary materially from these expressed within the forward-looking statements made on this Annual Report on Kind 10-Okay. There additionally could also be different dangers which are at present unknown to us or that we're unable to foretell at the moment. Such dangers and uncertainties embrace, with out limitation: •the potential working and monetary impacts on our operations, or these of our clients and suppliers, and the final affect on our business and on theU.S. and international financial system, ensuing from COVID-19 or another widespread contagion, together with actions by overseas and home governments and others to include the unfold, or mitigate the severity, thereof; •volatility and cyclical downturns within the metal business and in different industries through which our clients and/or suppliers function; •modifications within the market which will have an effect on our cokemaking enterprise, together with the availability and demand for our coke merchandise, in addition to elevated imports of coke from overseas producers; •volatility, cyclical downturns and different change within the enterprise local weather and marketplace for coal, affecting clients or potential clients for our logistics enterprise; •modifications within the market which will have an effect on our logistics enterprise, together with the availability and demand for thermal and metallurgical coal; •extreme monetary hardship or chapter of a number of of our main clients, or the prevalence of a buyer default or different occasion affecting our potential to gather funds from our clients; •our potential to restore growing old coke ovens to keep up operational efficiency; •age of, and modifications within the reliability, effectivity and capability of the varied gear and working services utilized in our cokemaking operations, and within the operations of our subsidiaries main clients, enterprise companions and/or suppliers; •modifications within the anticipated working ranges of our belongings; •modifications within the stage of capital expenditures or working bills, together with any modifications within the stage of environmental capital, working or remediation expenditures; •modifications in ranges of manufacturing, manufacturing capability, pricing and/or margins for coal and coke; •modifications in product specs for the coke that we produce or the coals we combine, retailer and transport; •our potential to fulfill minimal quantity necessities, coal-to-coke yield requirements and coke high quality requirements in our coke gross sales agreements; 46
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•variation in availability, high quality and provide of metallurgical coal used within the
cokemaking course of, together with on account of non-performance by our suppliers;
•results of geologic situations, climate, pure disasters and different inherent
dangers past our management;
•results of opposed occasions referring to the operation of our services and to
the transportation and storage of hazardous supplies or regulated media
(together with gear malfunction, explosions, fires, spills, impoundment failure
and the results of extreme climate situations);
•the existence of hazardous substances or different environmental contamination on
property owned or utilized by us;
•required permits and different regulatory approvals and compliance with contractual
obligations and/or bonding necessities in reference to our cokemaking,
logistics operations, and/or former coal mining actions;
•the provision of future permits authorizing the disposition of sure
mining waste and the administration of reclamation areas;
•dangers associated to environmental compliance;
•our potential to adjust to relevant federal, state or native legal guidelines and
rules, together with, however not restricted to, these referring to environmental
issues;
•dangers associated to labor relations and office security;
•availability of expert staff for our cokemaking, and/or logistics
operations, and different office components;
•our potential to service our excellent indebtedness;
•our indebtedness and sure covenants in our debt paperwork;
•our potential to adjust to the covenants and restrictions imposed by our
financing preparations;
•modifications within the availability and price of fairness and debt financing;
•impacts on our liquidity and skill to boost capital on account of modifications in
the credit score scores assigned to our indebtedness;
•competitors from different steelmaking and different applied sciences which have the
potential to cut back or get rid of the usage of coke;
•our dependence on, relationships with, and different situations affecting our
clients and/or suppliers;
•consolidation of main clients;
•nonperformance or pressure majeure by, or disputes with, or modifications in contract
phrases with, main clients, suppliers, sellers, distributors or different enterprise
companions;
•results of opposed occasions referring to the enterprise or industrial operations of
our clients and/or suppliers;
•modifications in credit score phrases required by our suppliers;
•our potential to safe new coal provide agreements or to resume current coal
provide agreements;
•results of railroad, barge, truck and different transportation efficiency and
prices, together with any transportation disruptions;
•our potential to enter into new, or renew current, long-term agreements upon
favorable phrases for the sale of coke, steam, or electrical energy, or for dealing with
companies of coal and different aggregates (together with transportation, storage and
mixing);
•our potential to enter into new, or renew current, agreements upon favorable
phrases for logistics companies;
•our potential to efficiently implement home and/or worldwide progress
methods;
•our potential to establish acquisitions, execute them below favorable phrases, and
combine them into our current enterprise operations;
•our potential to comprehend anticipated advantages from investments and acquisitions;
•our potential to enter into joint ventures and different related preparations below
favorable phrases;
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•our potential to consummate belongings gross sales, different divestitures and strategic restructuring in a well timed method upon favorable phrases, and/or understand the anticipated advantages from such actions; •our potential to consummate investments below favorable phrases, together with with respect to current cokemaking services, which can make the most of by-product expertise, and combine them into our current companies and have them carry out at anticipated ranges; •our potential to develop, design, allow, assemble, begin up, or function new cokemaking services within theU.S. or in overseas international locations; •disruption in our data expertise infrastructure and/or lack of our potential to securely retailer, preserve, or transmit information on account of safety breach by hackers, worker error or malfeasance, terrorist assault, energy loss, telecommunications failure or different occasions; •the accuracy of our estimates of reclamation and different environmental obligations; •dangers associated to obligations below mineral leases retained by us in connection with the divestment of our legacy coal mining enterprise; •dangers associated to the power of the assignee(s) to carry out in compliance with relevant necessities below mineral leases assigned in reference to the divestment of our legacy coal mining enterprise; •proposed or closing modifications in current, or new, statutes, rules, guidelines, governmental insurance policies and taxes, or their interpretations, together with these referring to environmental issues and taxes; •proposed or closing modifications in accounting and/or tax methodologies, legal guidelines, rules, guidelines, or insurance policies, or their interpretations, together with these affecting inventories, leases, post-employment advantages, earnings, or different issues; •modifications in federal, state, or native tax legal guidelines or rules, together with the interpretations thereof; •claims of noncompliance with any statutory or regulatory necessities; •modifications in insurance coverage markets impacting price, stage and/or varieties of protection accessible, and the monetary potential of our insurers to fulfill their obligations; •insufficient safety of our mental property rights; •volatility in overseas foreign money trade charges affecting the markets and geographic areas through which we conduct enterprise; and •historic consolidated monetary information will not be dependable indicators of future outcomes. The components recognized above are believed to be essential components, however not essentially all the essential components, that might trigger precise outcomes to differ materially from these expressed in any forward-looking assertion made by us. Different components not mentioned herein additionally might have materials opposed results on us. All forward-looking statements included on this Annual Report on Kind 10-Okay are expressly certified of their entirety by the foregoing cautionary statements. 48
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