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SEGMENT REPORTING | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
SEGMENT REPORTING | NOTE 4 - 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:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Revenues: |  |  |  |  |  |  |
Steelmaking | $ | 5,443 |  |  | $ | 5,511 |  |  | $ | 16,377 |  |  | $ | 17,481 |
Other Businesses | 162 |  |  | 142 |  |  | 507 |  |  | 464 |
Total revenues | $ | 5,605 |  |  | $ | 5,653 |  |  | $ | 16,884 |  |  | $ | 17,945 |
Adjusted EBITDA: |  |  |  |  |  |  |
Steelmaking | $ | 603 |  |  | $ | 447 |  |  | $ | 1,608 |  |  | $ | 2,980 |
Other Businesses | 9 |  |  | 9 |  |  | 32 |  |  | 58 |
Eliminations | 2 |  |  | 7 |  |  | (8) |  |  | 8 |
Total Adjusted EBITDA | $ | 614 |  |  | $ | 463 |  |  | $ | 1,632 |  |  | $ | 3,046 |
The following table provides a reconciliation of our consolidated Net income to total Adjusted EBITDA:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Net income | $ | 275 |  |  | $ | 165 |  |  | $ | 589 |  |  | $ | 1,580 |
Less: |  |  |  |  |  |  |
Interest expense, net | (70) |  |  | (64) |  |  | (226) |  |  | (205) |
Income tax expense | (29) |  |  | (10) |  |  | (118) |  |  | (404) |
Depreciation, depletion and amortization | (249) |  |  | (237) |  |  | (738) |  |  | (788) |
| 623 |  |  | 476 |  |  | 1,671 |  |  | 2,977 |
Less: |  |  |  |  |  |  |
EBITDA of noncontrolling interests 1 | 20 |  |  | 22 |  |  | 60 |  |  | 57 |
Gain (loss) on extinguishment of debt | — |  |  | 4 |  |  | — |  |  | (76) |
Asset impairment | — |  |  | — |  |  | — |  |  | (29) |
Other, net | (11) |  |  | (13) |  |  | (21) |  |  | (21) |
Total Adjusted EBITDA | $ | 614 |  |  | $ | 463 |  |  | $ | 1,632 |  |  | $ | 3,046 |
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests | $ | 11 |  |  | $ | 13 |  |  | $ | 35 |  |  | $ | 31 |
Depreciation, depletion and amortization | 9 |  |  | 9 |  |  | 25 |  |  | 26 |
EBITDA of noncontrolling interests | $ | 20 |  |  | $ | 22 |  |  | $ | 60 |  |  | $ | 57 |
The following summarizes our assets by segment:
(In millions) | September 30, 2023 |  | December 31, 2022
Assets: |  |  |
Steelmaking | $ | 17,481 |  |  | $ | 18,070 |
Other Businesses | 819 |  |  | 836 |
Intersegment eliminations | (531) |  |  | (521) |
Total segment assets | 17,769 |  |  | 18,385 |
Corporate | 290 |  |  | 370 |
Total assets | $ | 18,059 |  |  | $ | 18,755 |
The following table summarizes our depreciation, depletion and amortization and capital additions by segment:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Depreciation, depletion and amortization: |  |  |  |  |  |  |
Steelmaking | $ | (241) |  |  | $ | (227) |  |  | $ | (711) |  |  | $ | (758) |
Other Businesses | (8) |  |  | (10) |  |  | (27) |  |  | (30) |
Total depreciation, depletion and amortization | $ | (249) |  |  | $ | (237) |  |  | $ | (738) |  |  | $ | (788) |
Capital additions 1: |  |  |  |  |  |  |
Steelmaking | $ | 217 |  |  | $ | 240 |  |  | $ | 503 |  |  | $ | 712 |
Other Businesses | — |  |  | 6 |  |  | 3 |  |  | 21 |
Corporate | 1 |  |  | 1 |  |  | 2 |  |  | 3 |
Total capital additions | $ | 218 |  |  | $ | 247 |  |  | $ | 508 |  |  | $ | 736 |
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.

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