Annual report pursuant to Section 13 and 15(d)

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

v3.24.0.1
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Dec. 31, 2023
Disclosure Text Block [Abstract]  
Supplementary Financial Statement Information
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) 2023 2022
Allowance for credit losses as of January 1 $ (4) $ (4)
Increase in allowance (1) — 
Allowance for credit losses as of December 31 $ (5) $ (4)
INVENTORIES
The following table presents the detail of our Inventories on the Statements of Consolidated Financial Position:
December 31,
(In millions) 2023 2022
Product inventories
Finished and semi-finished goods $ 2,573  $ 2,971 
Raw materials 1,476  1,794 
Total product inventories 4,049  4,765 
Manufacturing supplies and critical spares 411  365 
Inventories $ 4,460  $ 5,130 
The excess of current cost over LIFO cost of iron ore inventories was $131 million and $169 million at December 31, 2023 and 2022, respectively. As of December 31, 2023, the product inventory balance for iron ore inventories increased, resulting in a LIFO increment in 2023. The effect of the inventory build was an increase in Inventories of $21 million on the Statements of Consolidated Financial Position for the year ended December 31, 2023. As of December 31, 2022, the product inventory balance
for iron ore inventories decreased, resulting in a liquidation of a LIFO layer in 2022. The effect of the inventory reduction was an increase in Cost of goods sold of $36 million on the Statements of Consolidated Operations for the year ended December 31, 2022.
SUPPLY CHAIN FINANCE PROGRAMS
We negotiate payment terms directly with our suppliers for the purchase of goods and services. We currently offer voluntary supply chain finance programs that enable our suppliers to sell their Company receivables to financial intermediaries, at the sole discretion of both the suppliers and financial intermediaries. No guarantees are provided by us or our subsidiaries under the supply chain finance programs. The supply chain finance programs allow our suppliers to be paid by the financial intermediaries earlier than the due date on the applicable invoice. Supply chain finance programs that extend terms or provide us an economic benefit are classified as short-term financings. As of December 31, 2023 and 2022, we had $21 million and $19 million, respectively, deemed as short-term financings that are classified in Other current liabilities. Additionally, as of December 31, 2023 and 2022, we had $91 million and $112 million, respectively, classified as Accounts payable.
SALE OF BUSINESS
On October 6, 2023, we entered into a membership interest purchase agreement for the sale of the legal entities owning, among other things, our closed coal mines in Pennsylvania. As a result of the sale, we recorded a gain of $63 million classified in Miscellaneous – net in the Statements of Consolidated Operations and as Other in operating activities on the Statements of Consolidated Cash Flows. As part of this transaction, we received $35 million in proceeds related to the sale that is classified as Other investing activities on the Statements of Consolidated Cash Flows.
CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Year Ended December 31,
(In millions) 2023 2022 2021
Capital additions $ 785  $ 1,033  $ 857 
Less:
Non-cash accruals (13) 35  102 
Equipment financed with seller 59  —  — 
Right-of-use assets - finance leases 93  55  50 
Cash paid for capital expenditures including deposits $ 646  $ 943  $ 705 
Additionally, included within Other investing activities on the Statements of Consolidated Cash Flows are grant reimbursements related to governmental funded capital projects. For the years ended December 31, 2023, 2022 and 2021, grant reimbursements were $13 million, $27 million and $2 million, respectively.
Cash payments (receipts) for interest and income taxes are as follows:
Year Ended December 31,
(In millions) 2023 2022 2021
Income taxes paid $ 94  $ 334  $ 166 
Income tax refunds (205) (3) (16)
Interest paid on debt obligations net of capitalized interest1
256  249  299 
1 Capitalized interest was $12 million, $9 million and $6 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Other non-cash investing and financing activities are as follows:
Year Ended December 31,
(In millions) 2023 2022 2021
1.500% 2025 Convertible Senior Notes redemption $ —  $ 25  $ — 
Fair value of settlement of a pre-existing relationship as part of consideration in connection with FPT Acquisition —  —  (20)