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ACQUISITIONS (Tables) | 12 Months Ended
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Dec. 31, 2024
Business Combinations [Abstract] |
Schedule of Fair Value of Purchase Consideration | The fair value of the total purchase consideration was determined as follows:
(In millions) |
Total cash consideration | $ | 2,450 |
Total share exchange consideration | 343 |
Total debt consideration | 415 |
Total purchase consideration | $ | 3,208 |
Total consideration shares are calculated as follows:
Number of outstanding Stelco shares | 54,448,388 |
Number of outstanding share-based compensation awards | 2,516,415 |
Total consideration shares | 56,964,803 |
Total estimated cash consideration is calculated as follows:
Number of consideration shares | 56,964,803 |
Consideration share price per share (CAD) | $ | 60.00 |
Total cash consideration (CAD) (in millions) | 3,418 |
Exchange rate (November 1, 2024) | 0.7168 |
Total cash consideration (USD) | $ | 2,450 |
The fair value of share exchange consideration is as follows:
Number of consideration shares | 56,964,803 |
Fixed share exchange factor | 0.454 |
Total Cliffs exchange shares | 25,862,021 |
Cliffs share price at closing date (November 1, 2024) | $ | 13.27 |
Total share exchange consideration (in millions) | $ | 343 |
Summary of the Purchase Price Allocation to Assets Acquired and Liabilities Assumed |
| (in Millions) |  |  |  |
Cash and cash equivalents | $ | 341 |  |  |  |  |
Accounts receivable | 104 |  |  |  |  |
Inventories | 726 |  |  |  |  |
Other current assets | 107 |  |  |  |  |
Property, plant and equipment | 1,286 |  |  |  |  |
Intangible assets | 1,025 |  |  |  |  |
Other non-current assets | 250 |  |  |  |  |
Accounts payable | (212) |  |  |  |  |
Accrued employment costs | (29) |  |  |  |  |
Accrued expenses | (6) |  |  |  |  |
Other current liabilities | (71) |  |  |  |  |
Pension and OPEB liability, non-current | (14) |  |  |  |  |
Deferred income taxes | (449) |  |  |  |  |
Asset retirement and environmental obligations | (20) |  |  |  |  |
Other non-current liabilities | (616) |  |  |  |  |
Net identifiable assets acquired | 2,422 |  |  |  |  |
Goodwill | 786 |  |  |  |  |
Total net assets acquired | $ | 3,208 |  |  |  |  |
Summary of Purchase Price Allocated to Identifiable Intangible Assets and Liabilities Acquired | The purchase price allocated to identifiable intangible assets acquired was:
| (In millions) |  | Weighted Average Life (In years)
Intangible assets: |  |  |
Customer relationships | 953 |  | 15
Trade names and trademarks | 72 |  | 15
Total identifiable intangible assets | $ | 1,025 |  |  | 15
Summary of Unaudited Pro Forma Financial Information | The following table provides unaudited pro forma financial information, prepared in accordance with Topic 805, as if Stelco had been acquired as of January 1, 2023:
| Year Ended December 31,
(In millions) | 2024 |  | 2023
Revenues | $ | 20,874 |  |  | $ | 24,158 |
Net income (loss) attributable to Cliffs shareholders | (623) |  |  | 216 |

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