Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.22.4
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2022
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:
Year Ended December 31,
(In millions) 2022 2021 2020
Revenues:
Steelmaking $ 22,383  $ 19,901  $ 4,965 
Other Businesses 606  543  389 
Total revenues $ 22,989  $ 20,444  $ 5,354 
Adjusted EBITDA:
Steelmaking $ 3,089  $ 5,280  $ 316 
Other Businesses 69  9  47 
Eliminations1
11  (12) (10)
Total Adjusted EBITDA $ 3,169  $ 5,277  $ 353 
1 In 2022, we began allocating Corporate Selling, general and administrative expenses 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 (loss) to total Adjusted EBITDA:
Year Ended December 31,
(In millions) 2022 2021 2020
Net income (loss) $ 1,376  $ 3,033  $ (81)
Less:
Interest expense, net (276) (337) (238)
Income tax benefit (expense) (423) (773) 111 
Depreciation, depletion and amortization (1,034) (897) (308)
3,109  5,040  354 
Less:
EBITDA from noncontrolling interests1
74  75  56 
Gain (loss) on extinguishment of debt (75) (88) 130 
Acquisition-related expenses and adjustments (1) (197) (148)
Asset impairment (29) —  — 
Other, net (29) (27) (37)
Total Adjusted EBITDA $ 3,169  $ 5,277  $ 353 
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests $ 41  $ 45  $ 41 
Depreciation, depletion and amortization 33  30  15 
EBITDA of noncontrolling interests $ 74  $ 75  $ 56 
The following table summarizes our depreciation, depletion and amortization and capital additions by segment:
Year Ended December 31,
(In millions) 2022 2021 2020
Depreciation, depletion and amortization:
Steelmaking $ (994) $ (860) $ (281)
Other Businesses (40) (37) (27)
Total depreciation, depletion and amortization $ (1,034) $ (897) $ (308)
Capital additions1:
Steelmaking $ 997  $ 787  $ 436 
Other Businesses 30  52  45 
Corporate 6  18  2 
Total capital additions $ 1,033  $ 857  $ 483 
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
The following summarizes our assets by segment:
December 31,
(In millions) 2022 2021
Assets:
Steelmaking $ 18,070  $ 18,326 
Other Businesses 315  306 
Total segment assets 18,385  18,632 
Corporate/Eliminations 370  343 
Total assets $ 18,755  $ 18,975 
Included in the consolidated financial statements are the following amounts relating to geographic location based on product destination:
(In millions) 2022 2021 2020
Revenues:
United States $ 20,991  $ 18,881  $ 4,580 
Canada 963  803  602 
Other countries 1,035  760  172 
Total revenues $ 22,989  $ 20,444  $ 5,354 
Property, plant and equipment, net:
United States $ 8,981  $ 9,092  $ 8,647 
Canada 88  93  91 
Other countries 1  1  5 
Total property, plant and equipment, net $ 9,070  $ 9,186  $ 8,743