XML 33 R12.htm IDEA: XBRL DOCUMENT
v3.22.2.2

SEGMENT REPORTING | 9 Months Ended
--- | ---
Sep. 30, 2022
Segment Reporting [Abstract] |
SEGMENT REPORTING | NOTE 5 - SEGMENT REPORTING We are vertically integrated from mined raw materials and direct reduced iron and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling and tubing. We are organized into four operating segments based on our differentiated products – Steelmaking, Tubular, Tooling and Stamping, and European Operations. We have one reportable segment – Steelmaking. The operating segment results of our Tubular, Tooling and Stamping, and European Operations that do not constitute reportable segments are combined and disclosed in the Other Businesses category. Our Steelmaking segment operates as the largest flat-rolled steel producer supported by being the largest iron ore pellet producer as well as a leading prime scrap processor in North America, primarily serving the automotive, distributors and converters, and infrastructure and manufacturing markets. Our Other Businesses primarily include the operating segments that provide customer solutions with carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components, and complex assemblies. All intersegment transactions were eliminated in consolidation. We evaluate performance on an operating segment basis, as well as a consolidated basis, based on Adjusted EBITDA, which is a non-GAAP measure. This measure is used by management, investors, lenders and other external users of our financial statements to assess our operating performance and to compare operating performance to other companies in the steel industry. In addition, management believes Adjusted EBITDA is a useful measure to assess the earnings power of the business without the impact of capital structure and can be used to assess our ability to service debt and fund future capital expenditures in the business. Our results by segment are as follows:
| (In Millions)
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Revenues: |  |  |  |  |  |  |
Steelmaking | $ | 5,511 |  |  | $ | 5,869 |  |  | $ | 17,481 |  |  | $ | 14,710 |
Other Businesses | 142 |  |  | 135 |  |  | 464 |  |  | 388 |
Total revenues | $ | 5,653 |  |  | $ | 6,004 |  |  | $ | 17,945 |  |  | $ | 15,098 |
Adjusted EBITDA: |  |  |  |  |  |  |
Steelmaking | $ | 436 |  |  | $ | 1,934 |  |  | $ | 2,967 |  |  | $ | 3,796 |
Other Businesses | 9 |  |  | 6 |  |  | 58 |  |  | 25 |
Eliminations 1 | 7 |  |  | (7) |  |  | 8 |  |  | (15) |
Total Adjusted EBITDA | $ | 452 |  |  | $ | 1,933 |  |  | $ | 3,033 |  |  | $ | 3,806 |
1 In 2022, we began allocating Corporate SG&A to our operating segments. Prior periods have been adjusted to reflect this change. The Eliminations line now only includes sales between segments.
The following table provides a reconciliation of our consolidated Net income to total Adjusted EBITDA:
| (In Millions)
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Net income | $ | 165 |  |  | $ | 1,282 |  |  | $ | 1,580 |  |  | $ | 2,134 |
Less: |  |  |  |  |  |  |
Interest expense, net | (64) |  |  | (81) |  |  | (205) |  |  | (258) |
Income tax expense | (10) |  |  | (334) |  |  | (404) |  |  | (559) |
Depreciation, depletion and amortization | (237) |  |  | (239) |  |  | (788) |  |  | (664) |
| 476 |  |  | 1,936 |  |  | 2,977 |  |  | 3,615 |
Less: |  |  |  |  |  |  |
EBITDA of noncontrolling interests 1 | 22 |  |  | 17 |  |  | 57 |  |  | 60 |
Asset impairment | — |  |  | — |  |  | (29) |  |  | — |
Gain (loss) on extinguishment of debt | 4 |  |  | — |  |  | (76) |  |  | (88) |
Severance costs | (2) |  |  | (3) |  |  | (9) |  |  | (15) |
Acquisition-related costs excluding severance costs | — |  |  | (1) |  |  | (1) |  |  | (3) |
Acquisition-related loss on equity method investment | — |  |  | — |  |  | — |  |  | (18) |
Amortization of inventory step-up | — |  |  | (11) |  |  | — |  |  | (129) |
Impact of discontinued operations | — |  |  | 1 |  |  | 2 |  |  | 2 |
Total Adjusted EBITDA | $ | 452 |  |  | $ | 1,933 |  |  | $ | 3,033 |  |  | $ | 3,806 |
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests | $ | 13 |  |  | $ | 8 |  |  | $ | 31 |  |  | $ | 39 |
Depreciation, depletion and amortization | 9 |  |  | 9 |  |  | 26 |  |  | 21 |
EBITDA of noncontrolling interests | $ | 22 |  |  | $ | 17 |  |  | $ | 57 |  |  | $ | 60 |
The following summarizes our assets by segment:
| (In Millions)
| September 30, 2022 |  | December 31, 2021
Assets: |  |  |
Steelmaking | $ | 18,843 |  |  | $ | 18,326 |
Other Businesses | 313 |  |  | 306 |
Total segment assets | 19,156 |  |  | 18,632 |
Corporate/Eliminations | 532 |  |  | 343 |
Total assets | $ | 19,688 |  |  | $ | 18,975 |
The following table summarizes our depreciation, depletion and amortization and capital additions by segment:
| (In Millions)
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Depreciation, depletion and amortization: |  |  |  |  |  |  |
Steelmaking | $ | (227) |  |  | $ | (230) |  |  | $ | (758) |  |  | $ | (637) |
Other Businesses | (10) |  |  | (9) |  |  | (30) |  |  | (27) |
Total depreciation, depletion and amortization | $ | (237) |  |  | $ | (239) |  |  | $ | (788) |  |  | $ | (664) |
Capital additions 1: |  |  |  |  |  |  |
Steelmaking | $ | 240 |  |  | $ | 233 |  |  | $ | 712 |  |  | $ | 512 |
Other Businesses | 6 |  |  | 10 |  |  | 21 |  |  | 42 |
Corporate | 1 |  |  | — |  |  | 3 |  |  | 18 |
Total capital additions | $ | 247 |  |  | $ | 243 |  |  | $ | 736 |  |  | $ | 572 |
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration