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

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

9 Months Ended

Sep. 30, 2022

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)
	2022		2021
Allowance for credit losses as of January 1	$	(4)	$	(5)
Increase in allowance	(1)		—
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, 2022		December 31, 2021
Product inventories
Finished and semi-finished goods	$	3,084	$	2,814
Raw materials	2,111		2,070
Total product inventories	5,195		4,884
Manufacturing supplies and critical spares	347		304
Inventories	$	5,542	$	5,188

Cash Flow Information

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


	(In Millions)
	Nine Months Ended September 30,
	2022		2021
Capital additions	$	736	$	572
Less:
Non-cash accruals	(10)		64
Right-of-use assets - finance leases	30		35

Cash paid for capital expenditures including deposits	$	716	$	473

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


	(In Millions)
	Nine Months Ended September 30,
	2022		2021
Taxes paid on income	$	306	$	38
Income tax refunds	(3)		(15)
Interest paid on debt obligations net of capitalized interest1	201		231

1 Capitalized interest was $7 million and $4 million for the nine months ended September 30, 2022 and 2021, respectively.