Cleveland-Cliffs Inc. Quarterly report pursuant to Section 13 or 15(d)

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

6 Months Ended

Jun. 30, 2021

NOTE 2 - 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)
	2021		2020
Allowance for credit losses as of January 1	$	(5)	$	—
Increase in allowance	—		(4)
Allowance for credit losses as of June 30	$	(5)	$	(4)

Inventories

The following table presents the detail of our Inventories in the Statements of Unaudited Condensed Consolidated Financial Position:


	(In Millions)
	June 30, 2021		December 31, 2020
Product inventories
Finished and semi-finished goods	$	2,452	$	2,125
Raw materials	1,558		1,431
Total product inventories	4,010		3,556
Manufacturing supplies and critical spares	270		272
Inventories	$	4,280	$	3,828

Cash Flow Information

A reconciliation of capital additions to cash paid for capital expenditures is as follows:


	(In Millions)
	Six Months Ended June 30,
	2021		2020
Capital additions	$	329	$	231
Less:
Non-cash accruals	16		(92)
Right-of-use assets - finance leases	15		40

Cash paid for capital expenditures including deposits	$	298	$	283

Cash payments (receipts) for income taxes and interest are as follows:


	(In Millions)
	Six Months Ended June 30,
	2021		2020
Taxes paid on income	$	8	$	—
Income tax refunds	(15)		(60)
Interest paid on debt obligations net of capitalized interest1	148		67

1 Capitalized interest was $3 million and $23 million for the six months ended June 30, 2021 and 2020, respectively.