Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.22.0.1
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE 5 - SEGMENT REPORTING
We are vertically integrated from mined raw materials and direct reduced iron and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling and tubing. We are organized into four operating segments based on our differentiated products - Steelmaking, Tubular, Tooling and Stamping, and European Operations. 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 operates as the largest flat-rolled steel producer supported by being the largest iron ore pellet producer as well as a leading prime scrap processor 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)
Year Ended December 31,
2021 2020 2019
Revenues:
Steelmaking $ 19,901  $ 4,965  $ 1,990 
Other Businesses 543  389  — 
Total revenues $ 20,444  $ 5,354  $ 1,990 
Adjusted EBITDA:
Steelmaking $ 5,422  $ 433  $ 636 
Other Businesses 9  47  — 
Corporate and eliminations (169) (127) (111)
Total Adjusted EBITDA $ 5,262  $ 353  $ 525 
The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
(In Millions)
Year Ended December 31,
2021 2020 2019
Net income (loss) $ 3,033  $ (81) $ 293 
Less:
Interest expense, net (337) (238) (101)
Income tax benefit (expense) (773) 111  (18)
Depreciation, depletion and amortization (897) (308) (85)
5,040  354  497 
Less:
EBITDA from noncontrolling interests1
75  56  — 
Gain (loss) on extinguishment of debt (88) 130  (18)
Severance costs (15) (38) (2)
Acquisition-related costs excluding severance costs (5) (52) (7)
Acquisition-related loss on equity method investment (31) —  — 
Amortization of inventory step-up (161) (96) — 
Impact of discontinued operations 3  1  (1)
Total Adjusted EBITDA $ 5,262  $ 353  $ 525 
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests $ 45  $ 41  $ — 
Depreciation, depletion and amortization 30  15  — 
EBITDA of noncontrolling interests $ 75  $ 56  $ — 
The following table summarizes our depreciation, depletion and amortization and capital additions by segment:
(In Millions)
Year Ended December 31,
2021 2020 2019
Depreciation, depletion and amortization:
Steelmaking $ 855  $ 276  $ 80 
Other Businesses 37  27  — 
Corporate 5  5  5 
Total depreciation, depletion and amortization $ 897  $ 308  $ 85 
Capital additions1:
Steelmaking $ 787  $ 436  $ 687 
Other Businesses 52  45  — 
Corporate 18  2  3 
Total capital additions $ 857  $ 483  $ 690 
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
The following summarizes our assets by segment:
(In Millions)
December 31,
2021 2020
Assets:
Steelmaking $ 18,326  $ 15,849 
Other Businesses 306  239 
Total segment assets 18,632  16,088 
Corporate 343  683 
Total assets $ 18,975  $ 16,771 
Included in the consolidated financial statements are the following amounts relating to geographic location based on product destination:
(In Millions)
2021 2020 2019
Revenues:
United States $ 18,881  $ 4,580  $ 1,505 
Canada 803  602  448 
Other countries 760  172  37 
Total revenues $ 20,444  $ 5,354  $ 1,990 
Property, plant and equipment, net:
United States $ 9,092  $ 8,647  $ 1,929 
Canada 93  91  — 
Other countries 1  5  — 
Total property, plant and equipment, net $ 9,186  $ 8,743  $ 1,929