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Note 1 - Segment Information | 12 Months Ended
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Dec. 31, 2022
Disclosure of operating segments [abstract] |
Note 1 - Segment Information | 1 Segment information As mentioned in section II.C, the Segment Information is disclosed as follows: Reportable operating segments (All amounts in millions of U.S. dollars)
Year ended December 31, 2022 | Tubes |  |  | Other |  |  | Total |
Management view - operating income | 2,772 |  |  | 75 |  |  | 2,847 |
Difference in cost of sales |  |  |  |  |  |  | 44 |
Differences in depreciation and amortization |  |  |  |  |  |  | 2 |
Differences in selling, general and administrative expenses |  |  |  |  |  |  | (4 | )
Differences in other operating income (expenses), net |  |  |  |  |  |  | 74 |
IFRS - operating income |  |  |  |  |  |  | 2,963 |
Financial income (expense), net |  |  |  |  |  |  | (6 | )
Income before equity in earnings of non-consolidated companies and income tax |  |  |  |  |  |  | 2,957 |
Equity in earnings of non-consolidated companies |  |  |  |  |  |  | 209 |
Income before income tax |  |  |  |  |  |  | 3,166 |
IFRS - Net Sales | 11,133 |  |  | 630 |  |  | 11,763 |
Depreciation and amortization | 588 |  |  | 20 |  |  | 608 |
Year ended December 31, 2021 | Tubes |  |  | Other |  |  | Total |
Management view - operating income | 178 |  |  | 65 |  |  | 243 |
Difference in cost of sales |  |  |  |  |  |  | 473 |
Differences in depreciation and amortization |  |  |  |  |  |  | (1 | )
Differences in other operating income (expenses), net |  |  |  |  |  |  | (8 | )
IFRS - operating income |  |  |  |  |  |  | 708 |
Financial income (expense), net |  |  |  |  |  |  | 23 |
Income before equity in earnings of non-consolidated companies and income tax |  |  |  |  |  |  | 731 |
Equity in earnings of non-consolidated companies |  |  |  |  |  |  | 513 |
Income before income tax |  |  |  |  |  |  | 1,243 |
IFRS - Net Sales | 5,994 |  |  | 528 |  |  | 6,521 |
Depreciation and amortization | 575 |  |  | 20 |  |  | 595 |
Year ended December 31, 2020 | Tubes |  |  | Other |  |  | Total |
Management view - operating (loss) | (277 | ) |  | (50 | ) |  | (327 | )
Difference in cost of sales |  |  |  |  |  |  | (134 | )
Differences in depreciation and amortization |  |  |  |  |  |  | - |
Differences in selling, general and administrative expenses |  |  |  |  |  |  | (2 | )
Differences in other operating income (expenses), net |  |  |  |  |  |  | (200 | )
IFRS - operating (loss) |  |  |  |  |  |  | (663 | )
Financial income (expense), net |  |  |  |  |  |  | (65 | )
(Loss) before equity in earnings of non-consolidated companies and income tax |  |  |  |  |  |  | (728 | )
Equity in earnings of non-consolidated companies |  |  |  |  |  |  | 109 |
(Loss) before income tax |  |  |  |  |  |  | (619 | )
IFRS - Net Sales | 4,844 |  |  | 303 |  |  | 5,147 |
Depreciation and amortization | 661 |  |  | 18 |  |  | 679 |
Transactions between segments, which were eliminated in consolidation, are mainly related to sales of scrap, energy, surplus raw materials and others from the Other segment to the Tubes segment for $77.9 million, $45.6 million and $16.9 million in 2022, 2021 and 2020, respectively. There are no material differences between IFRS and management view in total revenues and by reportable segments. The differences between operating income under IFRS view and the management view are mainly related to the cost of goods sold, reflecting the effect of raw materials prices increases on the valuation of the replacement cost considered for management view compared to IFRS cost calculated at historical cost on a FIFO basis, and other minor timing differences. The main difference in Other operating income (expenses), for the year ended December 31, 2022, is attributable to the effect of the reclassification of the currency translation adjustment reserve related to NKK Tubes’ definitive cease of operations, not impacting the management view. For the year ended in December 31, 2020, the main difference in Other operating income (expenses) is attributable to the impairment of the goodwill, which residual value in the management view differed from IFRS. In addition to the amounts reconciled above, the main differences in net income arise from the impact of functional currencies on financial result, deferred income taxes as well as the result of investment in non-consolidated companies. Geographical information
| North America |  | South America |  | Europe |  | Middle East & Africa |  | Asia Pacific |  | Unallocated (*) |  | Total |
Year ended December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | 6,902,787 |  | 2,550,402 |  | 1,000,833 |  | 1,031,106 |  | 277,398 |  | - |  | 11,762,526 |
Total assets | 9,018,386 |  | 3,896,403 |  | 2,071,624 |  | 739,579 |  | 283,608 |  | 1,540,646 |  | 17,550,246 |
Trade receivables | 1,371,717 |  | 583,223 |  | 202,753 |  | 249,637 |  | 86,610 |  | - |  | 2,493,940 |
Property, plant and equipment, net | 3,548,844 |  | 1,031,423 |  | 706,539 |  | 189,701 |  | 79,756 |  | - |  | 5,556,263 |
Capital expenditures | 118,644 |  | 176,448 |  | 62,143 |  | 2,813 |  | 18,398 |  | - |  | 378,446 |
Depreciation and amortization | 348,550 |  | 125,324 |  | 76,631 |  | 37,612 |  | 19,606 |  | - |  | 607,723 |
Year ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | 3,360,345 |  | 1,311,279 |  | 742,463 |  | 857,120 |  | 250,000 |  | - |  | 6,521,207 |
Total assets | 7,992,946 |  | 2,399,448 |  | 1,727,573 |  | 581,204 |  | 364,486 |  | 1,383,774 |  | 14,449,431 |
Trade receivables | 652,483 |  | 234,800 |  | 180,515 |  | 146,125 |  | 85,149 |  | - |  | 1,299,072 |
Property, plant and equipment, net | 3,805,912 |  | 984,413 |  | 742,461 |  | 221,859 |  | 70,156 |  | - |  | 5,824,801 |
Capital expenditures | 106,118 |  | 63,723 |  | 43,344 |  | 6,689 |  | 19,644 |  | - |  | 239,518 |
Depreciation and amortization | 307,116 |  | 125,781 |  | 89,667 |  | 41,528 |  | 30,629 |  | - |  | 594,721 |
Year ended December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | 2,179,949 |  | 776,235 |  | 642,793 |  | 1,227,532 |  | 320,225 |  | - |  | 5,146,734 |
Total assets | 8,071,574 |  | 1,868,458 |  | 1,461,738 |  | 804,559 |  | 552,508 |  | 957,352 |  | 13,716,189 |
Trade receivables | 411,692 |  | 115,972 |  | 139,427 |  | 210,194 |  | 90,863 |  | - |  | 968,148 |
Property, plant and equipment, net | 3,971,101 |  | 1,050,619 |  | 823,057 |  | 242,939 |  | 105,465 |  | - |  | 6,193,181 |
Capital expenditures | 71,531 |  | 63,111 |  | 39,691 |  | 10,452 |  | 8,537 |  | - |  | 193,322 |
Depreciation and amortization | 408,546 |  | 106,827 |  | 84,518 |  | 44,259 |  | 34,656 |  | - |  | 678,806 |
(*) For 2022, 2021 and 2020 includes Investment s in non-consolidated companies. See note 13 to these Consolidated Financial Statements. There are no revenues from external customers attributable to the Company’s country of incorporation (Luxembourg). The principal countries from which the Company derives its revenues are USA (42%), Argentina (13%), Mexico (10%), Canada, Colombia and Italy. Revenue is mainly recognized at a point in time to direct customers, when control has been transferred and there is no unfulfilled performance obligation that could affect the acceptance of the product by the customer. Revenues related to governmental institutions represent approximately 22%, 23% and 24% in 2022, 2021 and 2020 respectively. Tubes segment revenues by market: (All amounts in millions of U.S. dollars)
Revenues Tubes | 2022 |  |  | 2021 |  |  | 2020 |
Oil & Gas | 9,543 |  |  | 4,895 |  |  | 4,022 |
Oil & Gas processing plants | 738 |  |  | 459 |  |  | 407 |
Industrial, Power and Others | 852 |  |  | 640 |  |  | 415 |
Total | 11,133 |  |  | 5,994 |  |  | 4,844 |
At December 31, 2022, 2021 and 2020, the Company recognized contract liabilities related to customer advances in the amount of $242.9 million, $92.4 million and $48.7 million, respectively. Each of these amounts are reclassified to revenues during the subsequent years. In these periods, no significant adjustments in revenues were performed related to previously satisfied performance obligations.

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