Annual report pursuant to Section 13 and 15(d)

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

v3.20.4
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Dec. 31, 2020
Disclosure Text Block [Abstract]  
Supplementary Financial Statement Information
Allowance for Credit Losses
The following is a roll-forward of our allowance for credit losses associated with Accounts receivable, net:
(In Millions)
2020 2019
Allowance for credit losses as of January 1 $ —  $ — 
Increase in allowance (5) — 
Allowance for credit losses as of December 31 $ (5) $ — 
Inventories
The following table presents the detail of our Inventories in the Statements of Consolidated Financial Position:
(In Millions)
Year Ended December 31,
2020 2019
Product inventories
Finished and semi-finished goods $ 2,125  $ 114 
Work-in-process —  69 
Raw materials 1,431  9 
Total product inventories 3,556  192 
Manufacturing supplies and critical spares 272  125 
Inventories $ 3,828  $ 317 
The excess of current cost over LIFO cost of iron ore inventories was $104 million and $101 million at December 31, 2020 and 2019, respectively. As of December 31, 2020, the product inventory balance for iron ore inventories decreased, resulting in the liquidation of a LIFO layer. The effect of the inventory reduction was an increase in Cost of goods sold of $30 million in the Statements of Consolidated Operations for the year ended December 31, 2020. As of December 31, 2019, the product inventory balance for iron ore inventories increased, resulting in a LIFO increment in 2019. The effect of the inventory build was an increase in Inventories of $34 million in the Statements of Consolidated Financial Position for the year ended December 31, 2019.
The allowance for obsolete and surplus items in supplies and other inventories was $13 million at both December 31, 2020 and 2019.
Cash Flow Information
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
(In Millions)
Year Ended December 31,
2020 2019 2018
Capital additions $ 483  $ 690  $ 395 
Less:
Non-cash accruals (86) 15  94 
Right-of-use assets - finance leases 44  29  8 
Grants —  (10) (3)
Cash paid for capital expenditures including deposits $ 525  $ 656  $ 296 
Cash payments (receipts) for interest and income taxes are as follows:
(In Millions)
2020 2019 2018
Taxes paid on income $ 5  $ —  $ 3 
Income tax refunds (120) (118) (11)
Interest paid on debt obligations net of capitalized interest1
170  98  106 
1 Capitalized interest was $53 million, $25 million and $7 million for the years ended December 31, 2020, 2019 and 2018, respectively.
Non-Cash Investing and Financing Activities
(In Millions)
2020 2019 2018
Fair value of common shares issued as part of consideration in connection with AM USA Transaction $ 990  $ —  $ — 
Fair value of Series B Participating Redeemable Preferred Stock issued as part of consideration in connection with AM USA Transaction 738  —  — 
Fair value of settlement of a pre-existing relationship as part of consideration in connection with AM USA Transaction 237  —  — 
Fair value of common shares issued as consideration in connection with AK Steel Merger 618  —  — 
Fair value of equity awards assumed in connection with AK Steel Merger 4  —  — 
Discontinued Operations
We had income from discontinued operations, net of tax of $88 million for the year ended December 31, 2018. During 2018, we sold all of the assets of our Asia Pacific Iron Ore mining operations, which had operating losses of $105 million for the year ended December 31, 2018. Additionally, as a result of the liquidation of the net assets of our Australian subsidiaries, the historical changes in foreign currency translation recorded in Accumulated other comprehensive loss totaling $228 million was reclassified and recognized as a gain in Income (loss) from discontinued operations, net of tax.