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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:
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(In Millions) |
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2021 |
|
2020 |
| Allowance for credit losses as of January 1 |
$ |
(5) |
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|
$ |
— |
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| Decrease (increase) in allowance |
1
|
|
|
(5) |
|
| Allowance for credit losses as of December 31 |
$ |
(4) |
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|
$ |
(5) |
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Inventories
The following table presents the detail of our Inventories in the Statements of Consolidated Financial Position:
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(In Millions) |
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Year Ended December 31, |
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2021 |
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2020 |
| Product inventories |
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|
| Finished and semi-finished goods |
$ |
2,814
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|
|
$ |
2,125 |
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|
|
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| Raw materials |
2,070
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|
|
1,431 |
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| Total product inventories |
4,884
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|
3,556 |
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| Manufacturing supplies and critical spares |
304
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|
|
272 |
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| Inventories |
$ |
5,188
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|
|
$ |
3,828 |
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The excess of current cost over LIFO cost of iron ore inventories was $124 million and $104 million at December 31, 2021 and 2020, respectively. As of December 31, 2021, the product inventory balance for iron ore inventories increased, resulting in a LIFO increment in 2021. The effect of the inventory build was an increase in Inventories of $45 million in the Statements of Consolidated Operations for the year ended December 31, 2021. 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.
Cash Flow Information
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
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(In Millions) |
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Year Ended December 31, |
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2021 |
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2020 |
|
2019 |
| Capital additions |
$ |
857
|
|
|
$ |
483 |
|
|
$ |
690 |
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| Less: |
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|
|
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| Non-cash accruals |
102
|
|
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(86) |
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|
15 |
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| Right-of-use assets - finance leases |
50
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|
44 |
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|
29 |
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| Grants |
—
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|
— |
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(10) |
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| Cash paid for capital expenditures including deposits |
$ |
705
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|
$ |
525 |
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$ |
656 |
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Cash payments (receipts) for interest and income taxes are as follows:
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(In Millions) |
| 2021 |
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2020 |
|
2019 |
| Taxes paid on income |
$ |
166
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|
$ |
5 |
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|
$ |
— |
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| Income tax refunds |
(16) |
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|
(120) |
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|
(118) |
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Interest paid on debt obligations net of capitalized interest1
|
299
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|
170 |
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|
98 |
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1 Capitalized interest was $6 million, $53 million and $25 million for the years ended December 31, 2021, 2020 and 2019, respectively.
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Other Non-Cash Investing and Financing Activities
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(In Millions) |
| 2021 |
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2020 |
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2019 |
| Fair value of settlement of a pre-existing relationship as part of consideration in connection with FPT Acquisition |
$ |
(20) |
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|
$ |
— |
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|
$ |
— |
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| Fair value of common shares issued as part of consideration in connection with AM USA Transaction |
—
|
|
|
990 |
|
|
— |
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| Fair value of Series B Participating Redeemable Preferred Stock issued as part of consideration in connection with AM USA Transaction |
—
|
|
|
738 |
|
|
— |
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| Fair value of settlement of a pre-existing relationship as part of consideration in connection with AM USA Transaction |
—
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|
237 |
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|
— |
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| Fair value of common shares issued as consideration in connection with AK Steel Merger |
—
|
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|
618 |
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|
— |
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| Fair value of equity awards assumed in connection with AK Steel Merger |
—
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|
4 |
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— |
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