Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.21.2
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE 5 - SEGMENT REPORTING
We are vertically integrated from the mining of iron ore and coal; to production of metallics and coke; through iron making, steelmaking, rolling, finishing; and to downstream tubing, stamping and tooling. We are organized into four operating segments based on our differentiated products - Steelmaking, Tubular, Tooling and Stamping, and European Operations. Our previous Mining and Pelletizing segment is included within the Steelmaking operating segment as iron ore pellets are a primary raw material for our steel products. We have one reportable segment - Steelmaking. The operating segment results of our Tubular, Tooling and Stamping, and European Operations that do not constitute reportable segments are combined and disclosed in the Other Businesses category. Our Steelmaking segment is the largest flat-rolled steel producer supported by being the largest iron ore pellet producer in North America, primarily serving the automotive, infrastructure and manufacturing, and distributors and converters markets. Our Other Businesses primarily include the operating segments that provide customer solutions with carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components, and complex assemblies. All intersegment transactions were eliminated in consolidation.
We evaluate performance on an operating segment basis, as well as a consolidated basis, based on Adjusted EBITDA, which is a non-GAAP measure. This measure is used by management, investors, lenders and other external users of our financial statements to assess our operating performance and to compare operating performance to other companies in the steel industry. In addition, management believes Adjusted EBITDA is a useful measure to assess the earnings power of the business without the impact of capital structure and can be used to assess our ability to service debt and fund future capital expenditures in the business.
Our results by segment are as follows:
(In Millions)
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2021 2020 2021 2020
Revenues:
Steelmaking $ 5,869  $ 1,506  $ 14,710  $ 2,866 
Other Businesses 135  140  388  232 
Total revenues $ 6,004  $ 1,646  $ 15,098  $ 3,098 
Adjusted EBITDA:
Steelmaking $ 1,969  $ 127  $ 3,901  $ 117 
Other Businesses 6  18  25  22 
Corporate and eliminations (42) (19) (120) (72)
Total Adjusted EBITDA $ 1,933  $ 126  $ 3,806  $ 67 
The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
(In Millions)
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2021 2020 2021 2020
Net income (loss) $ 1,282  $ 2  $ 2,134  $ (155)
Less:
Interest expense, net (81) (68) (258) (168)
Income tax benefit (expense) (334) 22  (559) 98 
Depreciation, depletion and amortization (239) (72) (664) (184)
1,936  120  3,615  99 
Less:
EBITDA of noncontrolling interests1
17  16  60  41 
Gain (loss) on extinguishment of debt —  —  (88) 133 
Severance costs (3) (2) (15) (38)
Acquisition-related costs excluding severance costs (1) (5) (3) (30)
Acquisition-related loss on equity method investment —  —  (18) — 
Amortization of inventory step-up (11) (15) (129) (74)
Impact of discontinued operations 1  —  2  — 
Total Adjusted EBITDA $ 1,933  $ 126  $ 3,806  $ 67 
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests $ 8  $ 12  $ 39  $ 31 
Depreciation, depletion and amortization 9  4  21  10 
EBITDA of noncontrolling interests $ 17  $ 16  $ 60  $ 41 
The following summarizes our assets by segment:
(In Millions)
September 30,
2021		 December 31,
2020
Assets:
Steelmaking $ 17,439  $ 15,849 
Other Businesses 351  239 
Total segment assets 17,790  16,088 
Corporate 276  683 
Total assets $ 18,066  $ 16,771 
The following table summarizes our capital additions by segment:
(In Millions)
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2021 2020 2021 2020
Capital additions1:
Steelmaking $ 233  $ 93  $ 512  $ 313 
Other Businesses 10  9  42  19 
Corporate —  —  18  1 
Total capital additions $ 243  $ 102  $ 572  $ 333 
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.