SunCoke Energy, Inc.SXC

SunCoke Energy, Inc. Goodwill & Intangibles Disclosure

10-KFiled Feb 20, 20262 min read
8. Goodwill and Other Intangible Assets
The Company's goodwill at December 31, 2025 and December 31, 2024, by segment, is summarized below:
December 31,
20252024
 
(Dollars in millions)
Domestic Coke
$3.4 $3.4 
Industrial Services
52.2 — 
Total
$55.6 $3.4 
Intangible assets, net, includes the intangibles detailed in the table below, excluding fully amortized intangible assets.
December 31, 2025December 31, 2024
Weighted - Average Remaining Amortization YearsGross Carrying AmountAccumulated AmortizationNetGross Carrying AmountAccumulated AmortizationNet
(Dollars in millions)
Customer relationships(1)
12$14.4 $0.4 $14.0 $6.7 $6.7 $— 
Trade names(1)
105.8 0.2 5.6 — — — 
Permits1731.7 8.6 23.1 31.7 7.3 24.4 
Other251.6 0.3 1.3 1.6 0.2 1.4 
Total$53.5 $9.5 $44.0 $40.0 $14.2 $25.8 
(1)The increase in 2025 reflects new intangible assets related to the Phoenix Global acquisition. See Note 3 for further detail.
The permits above represent the environmental and operational permits required to operate a coal export terminal in accordance with the U.S. Environmental Protection Agency (“EPA”) and other regulatory bodies. Intangible assets are amortized over their useful lives in a manner that reflects the pattern in which the economic benefit of the asset is consumed. The permits’ useful lives were estimated to be 27 years at acquisition based on the expected useful life of the significant operating equipment at the facility. We have historical experience of renewing and extending similar arrangements at our other facilities and intend to continue to renew our permits as they come up for renewal for the foreseeable future. The permits were renewed regularly prior to our acquisition of CMT. These permits have an average remaining renewal term of approximately 4.5 years.
Total amortization expense for intangible assets subject to amortization was $2.0 million, $1.9 million and $2.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. Based on the carrying value of finite-lived intangible assets as of December 31, 2025, we estimate amortization expense for each of the next five years and the aggregate amount thereafter as follows:
(Dollars in millions)
2026$3.2 
20273.2 
20283.2 
20293.2 
20303.2 
2031-Thereafter28.0 
Total$44.0 

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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