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SEGMENT REPORTING | 9 Months Ended
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Sep. 30, 2024
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 a leading North America-based steel producer supported by being the largest iron ore pellet producer as well as a leading prime scrap processor, 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 allocate Corporate Selling, general and administrative expenses to our operating segments. 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, showing results exclusive of certain non-recurring and/or non-cash items. 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) | 2024 |  | 2023 |  | 2024 |  | 2023
Revenues: |  |  |  |  |  |  |
Steelmaking | $ | 4,419 |  |  | $ | 5,443 |  |  | $ | 14,361 |  |  | $ | 16,377 |
Other Businesses | 150 |  |  | 162 |  |  | 499 |  |  | 507 |
Total revenues | $ | 4,569 |  |  | $ | 5,605 |  |  | $ | 14,860 |  |  | $ | 16,884 |
Adjusted EBITDA: |  |  |  |  |  |  |
Steelmaking | $ | 113 |  |  | $ | 603 |  |  | $ | 814 |  |  | $ | 1,608 |
Other Businesses | 8 |  |  | 9 |  |  | 43 |  |  | 32 |
Eliminations | 3 |  |  | 2 |  |  | 4 |  |  | (8) |
Total Adjusted EBITDA | $ | 124 |  |  | $ | 614 |  |  | $ | 861 |  |  | $ | 1,632 |
The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) | 2024 |  | 2023 |  | 2024 |  | 2023
Net income (loss) | $ | (230) |  |  | $ | 275 |  |  | $ | (274) |  |  | $ | 589 |
Less: |  |  |  |  |  |  |
Interest expense, net | (102) |  |  | (70) |  |  | (235) |  |  | (226) |
Income tax benefit (expense) | 76 |  |  | (29) |  |  | 99 |  |  | (118) |
Depreciation, depletion and amortization | (235) |  |  | (249) |  |  | (693) |  |  | (738) |
Total EBITDA | 31 |  |  | 623 |  |  | 555 |  |  | 1,671 |
Less: |  |  |  |  |  |  |
EBITDA of noncontrolling interests 1 | 20 |  |  | 20 |  |  | 56 |  |  | 60 |
Weirton indefinite idle 2 | (2) |  |  | — |  |  | (219) |  |  | — |
Loss on extinguishment of debt | — |  |  | — |  |  | (27) |  |  | — |
Acquisition-related costs | (14) |  |  | (3) |  |  | (14) |  |  | (5) |
Changes in fair value of foreign currency contracts, net | (7) |  |  | — |  |  | (7) |  |  | — |
Arbitration decision | (71) |  |  | — |  |  | (71) |  |  | — |
Other, net | (19) |  |  | (8) |  |  | (24) |  |  | (16) |
Total Adjusted EBITDA | $ | 124 |  |  | $ | 614 |  |  | $ | 861 |  |  | $ | 1,632 |
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests | $ | 12 |  |  | $ | 11 |  |  | $ | 33 |  |  | $ | 35 |
Depreciation, depletion and amortization | 8 |  |  | 9 |  |  | 23 |  |  | 25 |
EBITDA of noncontrolling interests | $ | 20 |  |  | $ | 20 |  |  | $ | 56 |  |  | $ | 60 |
2 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for further information.
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) | 2024 |  | 2023 |  | 2024 |  | 2023
Depreciation, depletion and amortization: |  |  |  |  |  |  |
Steelmaking | $ | (228) |  |  | $ | (241) |  |  | $ | (669) |  |  | $ | (711) |
Other Businesses | (7) |  |  | (8) |  |  | (24) |  |  | (27) |
Total depreciation, depletion and amortization | $ | (235) |  |  | $ | (249) |  |  | $ | (693) |  |  | $ | (738) |
Capital additions 1: |  |  |  |  |  |  |
Steelmaking | $ | 211 |  |  | $ | 217 |  |  | $ | 554 |  |  | $ | 503 |
Other Businesses | — |  |  | — |  |  | 3 |  |  | 3 |
Corporate | — |  |  | 1 |  |  | — |  |  | 2 |
Total capital additions | $ | 211 |  |  | $ | 218 |  |  | $ | 557 |  |  | $ | 508 |
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
The following summarizes our assets by segment:
(In millions) | September 30, 2024 |  | December 31, 2023
Assets: |  |  |
Steelmaking | $ | 16,235 |  |  | $ | 16,880 |
Other Businesses | 637 |  |  | 657 |
Intersegment eliminations | (489) |  |  | (507) |
Total segment assets | 16,383 |  |  | 17,030 |
Corporate | 413 |  |  | 507 |
Total assets | $ | 16,796 |  |  | $ | 17,537 |

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- Definition The entire disclosure for reporting segments including data and tables. 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