sxc-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________________________________________________________

FORM 10-Q

_____________________________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-35243

_____________________________________________________________________

SUNCOKE ENERGY, INC.

(Exact name of registrant as specified in its charter)

______________________________________________________________________


Delaware						90-0640593
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

1011 Warrenville Road, Suite 600

Lisle, Illinois 60532

(Address of principal executive offices, including zip code)

(630) 824-1000

(Registrant’s telephone number, including area code)

____________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

SXC

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ý Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ý Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ý No

As of April 25, 2025, there were 84,651,097 shares of the Registrant’s Common Stock, par value $0.01 per share outstanding.

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SUNCOKE ENERGY, INC.

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PART I – FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements			1

Consolidated Statements of Income (Unaudited) For the Three Months Ended March 31, 2025 and 2024			1

Consolidated Statements of Comprehensive Income (Unaudited) For the Three Months Ended March 31, 2025 and 2024			2

Consolidated Balance Sheets at March 31, 2025 (Unaudited) and December 31, 2024			3

Consolidated Statements of Cash Flows (Unaudited) For the Three Months Ended March 31, 2025 and 2024			4

Consolidated Statements of Equity (Unaudited) For the Three Months Ended March 31, 2025 and 2024			5

Notes to the Consolidated Financial Statements			6

1. General			6

2. Inventories			6

3. Intangible Assets			7

4. Income Taxes			7

5. Accrued Liabilities			7

6. Debt			8

7. Commitments and Contingent Liabilities			8

8. Share-Based Compensation			8

9. Earnings per Share			10

10. Fair Value Measurement			10

11. Revenue from Contracts with Customers			11

12. Business Segment Information			12





Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			16

Item 3. Quantitative and Qualitative Disclosures about Market Risk			23

Item 4. Controls and Procedures			23

PART II – OTHER INFORMATION

Item 1. Legal Proceedings			24

Item 1A. Risk Factors			24

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			24

Item 3. Defaults Upon Senior Securities			24

Item 4. Mine Safety Disclosures			24

Item 5. Other Information			24

Item 6. Exhibits			25

Signatures			26

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CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

We have made forward-looking statements in this Quarterly Report on Form 10-Q, including, among others, in the sections entitled “Risk Factors,” “Quantitative and Qualitative Disclosures About Market Risk” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include all statements that are not historical facts and may be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “will,” “should” or the negative of these terms or similar expressions. Such forward-looking statements are based on management’s beliefs, expectations and assumptions based upon information currently available, and include, but are not limited to, statements concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, potential growth opportunities (including, among other things, continued expansion into the foundry coke market), the influence of competition, and the effects of future legislation or regulations. In addition, statements in this Quarterly Report on Form 10-Q concerning future dividend declarations are subject to approval by our Board of Directors and will be based upon circumstances then existing. Forward-looking statements are not guarantees of future performance, but are based upon the current knowledge, beliefs and expectations of SunCoke management, and upon assumptions by SunCoke concerning future conditions, any or all of which ultimately may prove to be inaccurate.

Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in these forward-looking statements. You should not put undue reliance on any forward-looking statements. The forward-looking statements made in this Quarterly Report on Form 10-Q should not be construed by you to be exhaustive and speak only as of the date of this report. We do not have any intention or obligation to update any forward-looking statement (or its associated cautionary language), whether as a result of new information or future events, after the date of this Quarterly Report on Form 10-Q, except as required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

The risk factors discussed in “Risk Factors” in our Annual Report on Form 10-K and this Quarterly Report on Form 10-Q could cause our results to differ materially from those expressed in the forward-looking statements made in this Quarterly Report on Form 10-Q. There also may be other risks that are currently unknown to us or that we are unable to predict at this time. Such risks and uncertainties include, without limitation:

•actual or potential impacts of international conflicts and humanitarian crises on global commodity prices, inflationary pressures, and state sponsored cyber activity;

•the effect of inflation on wages and operating expenses;

•the effect of restrictive trade regulations on our major customers, business partners and/or suppliers;

•volatility and cyclical downturns in the steel industry and in other industries in which our customers and/or suppliers operate;

•changes in the marketplace that may affect our cokemaking business, including the supply and demand for our coke products, as well as increased imports of coke from foreign producers;

•volatility, cyclical downturns and other change in the business climate and market for coal, affecting customers or potential customers for our logistics business;

•changes in the marketplace that may affect our logistics business, including the supply and demand for thermal and metallurgical coal;

•severe financial hardship or bankruptcy of one or more of our major customers, or the occurrence of a customer default or other event affecting our ability to collect payments from our customers;

•our ability to repair aging coke ovens to maintain operational performance;

•age of, and changes in the reliability, efficiency and capacity of the various equipment and operating facilities used in our cokemaking operations, and in the operations of our subsidiaries major customers, business partners and/or suppliers;

•changes in the expected operating levels of our assets;

•changes in the level of capital expenditures or operating expenses, including any changes in the level of environmental capital, operating or remediation expenditures;

•changes in levels of production, production capacity, pricing and/or margins for coal and coke;

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•changes in product specifications for the coke that we produce or the coals we mix, store and transport;

•our ability to meet minimum volume requirements, coal-to-coke yield standards and coke quality standards in our coke sales agreements;

•variation in availability, quality and supply of metallurgical coal used in the cokemaking process, including as a result of non-performance by our suppliers;

•effects of geologic conditions, weather, natural disasters and other inherent risks beyond our control;

•effects of adverse events relating to the operation of our facilities and to the transportation and storage of hazardous materials or regulated media (including equipment malfunction, explosions, fires, spills, impoundment failure and the effects of severe weather conditions);

•the existence of hazardous substances or other environmental contamination on property owned or used by us;

•required permits and other regulatory approvals and compliance with contractual obligations and/or bonding requirements in connection with our cokemaking, logistics operations, and/or former coal mining activities;

•the availability of future permits authorizing the disposition of certain mining waste and the management of reclamation areas;

•risks related to environmental compliance;

•our ability to comply with applicable federal, state or local laws and regulations, including, but not limited to, those relating to environmental matters;

•risks related to labor relations and workplace safety;

•availability of skilled employees for our cokemaking, and/or logistics operations, and other workplace factors;

•our ability to service our outstanding indebtedness;

•our indebtedness and certain covenants in our debt documents;

•our ability to comply with the covenants and restrictions imposed by our financing arrangements;

•changes in the availability and cost of equity and debt financing;

•impacts on our liquidity and ability to raise capital as a result of changes in the credit ratings assigned to our indebtedness;

•competition from alternative steelmaking and other technologies that have the potential to reduce or eliminate the use of coke;

•our dependence on, relationships with, and other conditions affecting our customers and/or suppliers;

•consolidation of major customers;

•nonperformance or force majeure by, or disputes with, or changes in contract terms with, major customers, suppliers, dealers, distributors or other business partners;

•effects of adverse events relating to the business or commercial operations of our customers and/or suppliers;

•changes in credit terms required by our suppliers;

•our ability to secure new coal supply agreements or to renew existing coal supply agreements;

•effects of railroad, barge, truck and other transportation performance and costs, including any transportation disruptions;

•our ability to enter into new, or renew existing, long-term agreements upon favorable terms for the sale of coke, steam, or electric power, or for handling services of coal and other products (including transportation, storage and mixing);

•our ability to enter into new, or renew existing, agreements upon favorable terms for logistics services;

•our ability to successfully implement domestic and/or international growth strategies;

•our ability to identify acquisitions, execute them under favorable terms, and integrate them into our existing business operations;

•our ability to realize expected benefits from investments and acquisitions;

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•our ability to enter into joint ventures and other similar arrangements under favorable terms;

•our ability to consummate assets sales, other divestitures and strategic restructuring in a timely manner upon favorable terms, and/or realize the anticipated benefits from such actions;

•our ability to consummate investments under favorable terms, including with respect to existing cokemaking facilities, which may utilize by-product technology, and integrate them into our existing businesses and have them perform at anticipated levels;

•our ability to develop, design, permit, construct, start up, or operate new cokemaking facilities in the U.S. or in foreign countries;

•disruption in our information technology infrastructure and/or loss of our ability to securely store, maintain, or transmit data due to security breach by hackers, employee error or malfeasance, terrorist attack, power loss, telecommunications failure or other events;

•the accuracy of our estimates of reclamation and other environmental obligations;

•risks related to obligations under mineral leases retained by us in connection with the divestment of our legacy coal mining business;

•risks related to the ability of the assignee(s) to perform in compliance with applicable requirements under mineral leases assigned in connection with the divestment of our legacy coal mining business;

•proposed or final changes in existing, or new, statutes, regulations, rules, governmental policies and taxes, or their interpretations, including those relating to environmental matters and taxes;

•proposed or final changes in accounting and/or tax methodologies, laws, regulations, rules, or policies, or their interpretations, including those affecting inventories, leases, post-employment benefits, income, or other matters;

•changes in federal, state, or local tax laws or regulations, including the interpretations thereof;

•claims of noncompliance with any statutory or regulatory requirements;

•changes in insurance markets impacting cost, level and/or types of coverage available, and the financial ability of our insurers to meet their obligations;

•inadequate protection of our intellectual property rights;

•volatility in foreign currency exchange rates affecting the markets and geographic regions in which we conduct business; and

•historical consolidated financial data may not be reliable indicators of future results.

The factors identified above are believed to be important factors, but not necessarily all of the important factors, that could cause actual results to differ materially from those expressed in any forward-looking statement made by us. Other factors not discussed herein also could have material adverse effects on us. All forward-looking statements included in this Quarterly Report on Form 10-Q are expressly qualified in their entirety by the foregoing cautionary statements.

In addition, our discussion of certain environmental, social and governance (“ESG”) assessments and related issues in this or other disclosures, including on our corporate website, is informed by various ESG standards and frameworks (including standards for the measurement of underlying data) and the interests of various stakeholders. As such, such information may not be, and should not be interpreted as necessarily being, “material” under the federal securities laws for Securities and Exchange Commission (“SEC”) reporting purposes. Furthermore, much of this information is subject to assumptions, methodologies, or third-party information that is still evolving and subject to repeated change. Our disclosures may change as a result of changes in frameworks, availability or quality of information, changes in business or government policy, or other factors, which may be out of our control.

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PART I – FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

SunCoke Energy, Inc.

Consolidated Statements of Income

(Unaudited)


	Three Months Ended March 31,
	2025		2024

	(Dollars and shares in millions, except per share amounts)
Revenues
Sales and other operating revenue	$	436.0	$	488.4
Costs and operating expenses
Cost of products sold and operating expenses	362.3		402.2
Selling, general and administrative expenses	14.7		18.4
Depreciation and amortization expense	28.8		33.3
Total costs and operating expenses	405.8		453.9
Operating income	30.2		34.5
Interest expense, net	5.2		6.3
Income before income tax expense	25.0		28.2
Income tax expense	5.6		7.1
Net income	19.4		21.1
Less: Net income attributable to noncontrolling interests	2.1		1.1
Net income attributable to SunCoke Energy, Inc.	$	17.3	$	20.0
Earnings attributable to SunCoke Energy, Inc. per common share:
Basic	$	0.20	$	0.24
Diluted	$	0.20	$	0.23
Weighted average number of common shares outstanding:
Basic	85.5		85.0
Diluted	85.6		85.3

(See accompanying notes to the consolidated financial statements)

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SunCoke Energy, Inc.

Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended March 31,
	2025		2024

	(Dollars in millions)
Net income	$	19.4	$	21.1
Other comprehensive income (loss):
Reclassification of prior service benefit and actuarial loss amortization to earnings, net of tax	(0.1)		0.1
Currency translation adjustment	0.3		(0.2)
Comprehensive income	19.6		21.0
Less: Comprehensive income attributable to noncontrolling interests	2.1		1.1
Comprehensive income attributable to SunCoke Energy, Inc.	$	17.5	$	19.9

(See accompanying notes to the consolidated financial statements)

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SunCoke Energy, Inc.

Consolidated Balance Sheets


	March 31, 2025		December 31, 2024
	(Unaudited)
	(Dollars in millions, except par value amounts)
Assets
Cash and cash equivalents	$	193.7	$	189.6
Receivables, net	80.7		96.6
Inventories	209.7		180.8

Other current assets	11.7		7.6
Total current assets	495.8		474.6
Properties, plants and equipment (net of accumulated depreciation of $1,526.0 million and $1,497.6 million at March 31, 2025 and December 31, 2024, respectively)	1,122.6		1,143.6
Intangible assets, net	28.9		29.2
Deferred charges and other assets	21.1		20.8
Total assets	$	1,668.4	$	1,668.2
Liabilities and Equity
Accounts payable	$	152.7	$	153.2
Accrued liabilities	35.6		51.6
Interest payable	6.1		—
Income tax payable	11.9		1.0
Total current liabilities	206.3		205.8
Long-term debt	492.9		492.3
Accrual for black lung benefits	12.7		12.7
Retirement benefit liabilities	7.2		7.6
Deferred income taxes	194.6		196.8
Asset retirement obligations	17.5		17.2
Other deferred credits and liabilities	22.7		24.8
Total liabilities	953.9		957.2
Equity
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no issued shares at both March 31, 2025 and December 31, 2024	—		—
Common stock, $0.01 par value. Authorized 300,000,000 shares; issued 100,055,579 and 99,756,420 shares at March 31, 2025 and December 31, 2024, respectively	1.0		1.0
Treasury stock, 15,404,482 shares at both March 31, 2025 and December 31, 2024	(184.0)		(184.0)
Additional paid-in capital	730.2		732.8
Accumulated other comprehensive loss	(7.5)		(7.7)
Retained earnings	144.9		138.1
Total SunCoke Energy, Inc. stockholders’ equity	684.6		680.2
Noncontrolling interest	29.9		30.8
Total equity	714.5		711.0
Total liabilities and equity	$	1,668.4	$	1,668.2

(See accompanying notes to the consolidated financial statements)

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SunCoke Energy, Inc.

Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended March 31,
	2025		2024

	(Dollars in millions)
Cash Flows from Operating Activities
Net income	$	19.4	$	21.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	28.8		33.3
Deferred income tax (benefit) expense	(2.2)		0.4
Share-based compensation expense	0.4		1.3
Changes in working capital pertaining to operating activities:
Receivables, net	15.9		(23.0)
Inventories	(28.9)		(5.6)
Accounts payable	(3.3)		(8.1)
Accrued liabilities	(11.8)		(12.0)
Interest payable	6.1		6.1
Income taxes	10.9		5.9
Other operating activities	(9.5)		(9.4)
Net cash provided by operating activities	25.8		10.0
Cash Flows from Investing Activities
Capital expenditures	(4.9)		(15.5)
Other investing activities	0.3		0.4
Net cash used in investing activities	(4.6)		(15.1)
Cash Flows from Financing Activities


Proceeds from revolving facility	—		11.0
Repayment of revolving facility	—		(11.0)

Dividends paid	(10.9)		(9.0)
Cash distribution to noncontrolling interests	(3.0)		(2.2)
Other financing activities	(3.2)		(3.7)
Net cash used in financing activities	(17.1)		(14.9)
Net increase (decrease) in cash and cash equivalents	4.1		(20.0)
Cash and cash equivalents at beginning of period	189.6		140.1
Cash and cash equivalents at end of period	$	193.7	$	120.1
Supplemental Disclosure of Cash Flow Information
Interest paid	$	—	$	—
Income taxes paid, net of refunds of $3.8 million and zero, respectively	$	(3.2)	$	0.7

(See accompanying notes to the consolidated financial statements)

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SunCoke Energy, Inc.

Consolidated Statements of Equity

Three Months Ended March 31, 2025

(Unaudited)


	Common Stock			Treasury Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total SunCoke Energy, Inc. Equity		Non-controlling Interests		Total Equity
	Shares	Amount		Shares	Amount

	(Dollars in millions)
At December 31, 2024	99,756,420	$	1.0	15,404,482	$	(184.0)	$	732.8	$	(7.7)	$	138.1	$	680.2	$	30.8	$	711.0
Net income	—	—		—	—		—		—		17.3		17.3		2.1		19.4
Reclassification of prior service benefit and actuarial loss amortization to earnings, net of tax	—	—		—	—		—		(0.1)		—		(0.1)		—		(0.1)
Currency translation adjustment	—	—		—	—		—		0.3		—		0.3		—		0.3
Share-based compensation	—	—		—	—		0.4		—		—		0.4		—		0.4
Share issuances, net of shares withheld for taxes	299,159	—		—	—		(3.0)		—		—		(3.0)		—		(3.0)
Dividends	—	—		—	—		—		—		(10.5)		(10.5)		—		(10.5)
Cash distribution to noncontrolling interests	—	—		—	—		—		—		—		—		(3.0)		(3.0)
At March 31, 2025	100,055,579	$	1.0	15,404,482	$	(184.0)	$	730.2	$	(7.5)	$	144.9	$	684.6	$	29.9	$	714.5

SunCoke Energy, Inc.

Consolidated Statements of Equity

Three Months Ended March 31, 2024

(Unaudited)


	Common Stock			Treasury Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total SunCoke Energy, Inc. Equity		Non-controlling Interests		Total Equity
	Shares	Amount		Shares	Amount

	(Dollars in millions)
At December 31, 2023	99,161,446	$	1.0	15,404,482	$	(184.0)	$	729.8	$	(12.8)	$	80.2	$	614.2	$	31.3	$	645.5
Net income	—	—		—	—		—		—		20.0		20.0		1.1		21.1
Reclassifications of prior service benefit and actuarial loss amortization to earnings, net of tax	—	—		—	—		—		0.1		—		0.1		—		0.1
Currency translation adjustment	—	—		—	—		—		(0.2)		—		(0.2)		—		(0.2)
Share-based compensation	—	—		—	—		1.3		—		—		1.3		—		1.3
Share issuances, net of shares withheld for taxes	318,520	—		—	—		(3.6)		—		—		(3.6)		—		(3.6)
Dividends	—	—		—	—		—		—		(8.8)		(8.8)		—		(8.8)
Cash distribution to noncontrolling interests	—	—		—	—		—		—		—		—		(2.2)		(2.2)
At March 31, 2024	99,479,966	$	1.0	15,404,482	$	(184.0)	$	727.5	$	(12.9)	$	91.4	$	623.0	$	30.2	$	653.2

(See accompanying notes to the consolidated financial statements)

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SunCoke Energy, Inc.

Notes to the Consolidated Financial Statements

1. General

Description of Business

SunCoke Energy, Inc. (“SunCoke Energy,” “SunCoke,” “Company,” “we,” “our” and “us”) is the largest independent producer of high-quality coke in the Americas, as measured by tons of coke produced each year, and has more than 60 years of coke production experience. Coke is produced by heating metallurgical coal in a refractory oven, which releases certain volatile components from the coal, thus transforming the coal into coke. Our coke is primarily used as a principal raw material in the blast furnace steelmaking process as well as in the foundry production of casted iron, and the majority of our sales are derived from blast furnace coke sales made under long-term, take-or-pay agreements. We also sell coke produced utilizing capacity in excess of that reserved for our long-term, take-or-pay agreements to customers in both the export and North American domestic coke markets seeking high-quality product for their blast furnaces. We have designed, developed and built, and we currently own and operate, five cokemaking facilities in the United States (“U.S.”) with collective nameplate capacity to produce approximately 4.2 million tons of blast furnace coke per year. Additionally, we designed and currently operate one cokemaking facility in Brazil under licensing and operating agreements on behalf of ArcelorMittal Brasil S.A. (“ArcelorMittal Brazil”), which has approximately 1.7 million tons of annual cokemaking capacity. Our cokemaking ovens utilize efficient, modern heat recovery technology designed to combust the coal’s volatile components liberated during the cokemaking process and use the resulting heat to create steam or electricity for sale.

We also own and operate a logistics business that provides export and domestic material handling and/or mixing services to steel, coke (including some of our domestic cokemaking facilities), electric utility, coal producing and other manufacturing based customers. Our logistics terminals, which are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports, have the collective capacity to mix and/or transload more than 40 million tons of coal and other products annually and have storage capacity of approximately 3 million tons.

Basis of Presentation

The accompanying unaudited consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim reporting. Certain information and disclosures normally included in financial statements have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In management’s opinion, the financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. The results of operations for the period ended March 31, 2025 are not necessarily indicative of the operating results expected for the entire year. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024.

2. Inventories

The components of inventories were as follows:


	March 31, 2025		December 31, 2024

	(Dollars in millions)
Coal	$	136.4	$	109.3
Coke	15.6		13.9
Materials, supplies and other	57.7		57.6
Total inventories	$	209.7	$	180.8

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3. Intangible Assets

Intangible assets, net, include Goodwill allocated to our Domestic Coke segment of $3.4 million at both March 31, 2025 and December 31, 2024, and other intangibles detailed in the table below, excluding fully amortized intangible assets.


		March 31, 2025						December 31, 2024
	Weighted - Average Remaining Amortization Years	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net

		(Dollars in millions)
Permits	17	31.7		7.6		24.1		31.7		7.3		24.4
Other	25	1.6		0.2		1.4		1.6		0.2		1.4
Total		$	33.3	$	7.8	$	25.5	$	33.3	$	7.5	$	25.8

Total amortization expense for intangible assets subject to amortization was $0.3 million and $0.5 million for the three months ended March 31, 2025 and 2024, respectively.

4. Income Taxes

At the end of each interim period, we make our best estimate of the annual effective tax rate and the impact of discrete items, if any, and adjust the rate as necessary.


	Three Months Ended March 31,
	2025			2024

	(Dollars in millions)
Income before income tax expense	$	25.0		$	28.2
Income tax expense	5.6			7.1
Effective tax rate	22.4		%	25.2		%

Income taxes recorded during the three months ended March 31, 2025 and 2024 included immaterial discrete items.

The Company's effective tax rate was 22.4 percent and 25.2 percent for the three months ended March 31, 2025 and 2024, respectively. The difference between the Company's effective tax rates and federal statutory rate of 21.0 percent during all periods presented reflect the impact of state taxes, valuation allowances established on unused foreign tax credits projected for the current period, compensation deduction limitations under Section 162(m) of the Internal Revenue Code and earnings attributable to its noncontrolling ownership interests in a partnership.

5. Accrued Liabilities

Accrued liabilities consisted of the following:


	March 31, 2025		December 31, 2024

	(Dollars in millions)
Accrued benefits	$	12.6	$	28.7
Current portion of postretirement benefit obligation	1.0		1.0
Other taxes payable	12.7		10.2
Current portion of black lung liability	1.1		1.0
Lease liabilities	2.8		2.7
Other	5.4		8.0
Total accrued liabilities	$	35.6	$	51.6

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6. Debt

Total debt consisted of the following:


	March 31, 2025		December 31, 2024

	(Dollars in millions)
4.875 percent senior notes, due 2029 (“2029 Senior Notes”)	$	500.0	$	500.0
$350.0 revolving credit facility, due 2026 (“Revolving Facility”)	—		—

SEC Form 10-Q filed by SunCoke Energy Inc.