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

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

9 Months Ended

Sep. 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	—		(5)
Allowance for credit losses as of September 30	$	(5)	$	(5)

Inventories

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


	(In Millions)
	September 30, 2021		December 31, 2020
Product inventories
Finished and semi-finished goods	$	2,510	$	2,125
Raw materials	1,711		1,431
Total product inventories	4,221		3,556
Manufacturing supplies and critical spares	284		272
Inventories	$	4,505	$	3,828

Cash Flow Information

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


	(In Millions)
	Nine Months Ended September 30,
	2021		2020
Capital additions	$	572	$	333
Less:
Non-cash accruals	64		(89)
Right-of-use assets - finance leases	35		43

Cash paid for capital expenditures including deposits	$	473	$	379

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


	(In Millions)
	Nine Months Ended September 30,
	2021		2020
Taxes paid on income	$	38	$	3
Income tax refunds	(15)		(119)
Interest paid on debt obligations net of capitalized interest1	231		117

1 Capitalized interest was $4 million and $38 million for the nine months ended September 30, 2021 and 2020, respectively.