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

SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2022

Our results by segment are as follows:


	(In Millions)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues:
Steelmaking	$	5,511	$	5,869	$	17,481	$	14,710
Other Businesses	142		135		464		388
Total revenues	$	5,653	$	6,004	$	17,945	$	15,098

Adjusted EBITDA:
Steelmaking	$	436	$	1,934	$	2,967	$	3,796
Other Businesses	9		6		58		25
Eliminations1	7		(7)		8		(15)
Total Adjusted EBITDA	$	452	$	1,933	$	3,033	$	3,806

1 In 2022, we began allocating Corporate SG&A to our operating segments. Prior periods have been adjusted to reflect this change. The Eliminations line now only includes sales between segments.

The following table provides a reconciliation of our consolidated Net income to total Adjusted EBITDA:


	(In Millions)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income	$	165	$	1,282	$	1,580	$	2,134
Less:
Interest expense, net	(64)		(81)		(205)		(258)
Income tax expense	(10)		(334)		(404)		(559)
Depreciation, depletion and amortization	(237)		(239)		(788)		(664)
	476		1,936		2,977		3,615
Less:
EBITDA of noncontrolling interests1	22		17		57		60
Asset impairment	—		—		(29)		—
Gain (loss) on extinguishment of debt	4		—		(76)		(88)
Severance costs	(2)		(3)		(9)		(15)
Acquisition-related costs excluding severance costs	—		(1)		(1)		(3)
Acquisition-related loss on equity method investment	—		—		—		(18)
Amortization of inventory step-up	—		(11)		—		(129)
Impact of discontinued operations	—		1		2		2
Total Adjusted EBITDA	$	452	$	1,933	$	3,033	$	3,806

1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests	$	13	$	8	$	31	$	39
Depreciation, depletion and amortization	9		9		26		21
EBITDA of noncontrolling interests	$	22	$	17	$	57	$	60

The following table summarizes our depreciation, depletion and amortization and capital additions by segment:


	(In Millions)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Depreciation, depletion and amortization:
Steelmaking	$	(227)	$	(230)	$	(758)	$	(637)
Other Businesses	(10)		(9)		(30)		(27)
Total depreciation, depletion and amortization	$	(237)	$	(239)	$	(788)	$	(664)

Capital additions1:
Steelmaking	$	240	$	233	$	712	$	512
Other Businesses	6		10		21		42
Corporate	1		—		3		18
Total capital additions	$	247	$	243	$	736	$	572

1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.

The following summarizes our assets by segment: