Quarterly report pursuant to Section 13 or 15(d)

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

v3.24.3
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [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) 2024 2023
Allowance for credit losses as of January 1 $ (5) $ (4)
Decrease (increase) in allowance 1  (3)
Allowance for credit losses as of September 30 $ (4) $ (7)
INVENTORIES
The following table presents the detail of our Inventories on the Statements of Unaudited Condensed Consolidated Financial Position:
(In millions) September 30,
2024		 December 31,
2023
Product inventories
Finished and semi-finished goods $ 2,319  $ 2,573 
Raw materials 1,486  1,476 
Total product inventories 3,805  4,049 
Manufacturing supplies and critical spares 431  411 
Inventories $ 4,236  $ 4,460 
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 Cliffs 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 September 30, 2024 and December 31, 2023, we had $27 million and $21 million, respectively, deemed as short-term financings that are classified in Other current liabilities. Additionally, as of September 30, 2024 and December 31, 2023, we had $71 million and $91 million, respectively, classified as Accounts payable.
WEIRTON INDEFINITE IDLE
On February 15, 2024, we announced the indefinite idle of our tinplate production plant located in Weirton, West Virginia. As of September 30, 2024, we have incurred $212 million of charges related to the idle and estimate that we will incur nominal future charges to Restructuring and other charges, primarily related to employee related costs which are expected to be incurred by the end of 2024.
The following table represents a reconciliation of our accrued liabilities related to the Weirton indefinite idle:
(In millions) Employee- Related Costs Exit Costs Asset Impairment Total
Balance as of December 31, 2023 $ —  $ —  $ —  $ — 
Costs incurred1
58  48  64  170 
Cash payments —  (2) —  (2)
Non-cash —  —  (64) (64)
Balance as of March 31, 2024 $ 58  $ 46  $ —  $ 104 
Costs incurred2
23  2  15  40 
Cash payments (8) (10) —  (18)
Non-cash —  —  (15) (15)
Balance as of June 30, 2024 $ 73  $ 38  $ —  $ 111 
Costs incurred3
—  2  —  2 
Cash payments (10) (11) —  (21)
Balance as of September 30, 2024 $ 63  $ 29  $ —  $ 92 
1 Of the $170 million of cost incurred, $104 million was recorded in Restructuring and other charges, $64 million was recorded in Asset impairments and $2 million was recorded in Net periodic benefit credits other than service cost component.
2 Of the $40 million of costs incurred, $25 million was recorded in Restructuring and other charges and $15 million was recorded in Asset impairments.
3 Costs incurred of $2 million were recorded in Restructuring and other charges.
CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Nine Months Ended
September 30,
(In millions) 2024 2023
Capital additions $ 557  $ 508 
Less:
Non-cash accruals (58) (98)
Equipment financed with seller 50  47 
Right-of-use assets - finance leases 75  78 
Cash paid for capital expenditures including deposits $ 490  $ 481 
Cash payments (receipts) for income taxes and interest are as follows:
Nine Months Ended
September 30,
(In millions) 2024 2023
Income taxes paid $ 13  $ 91 
Income tax refunds (5) (142)
Interest paid on debt obligations net of capitalized interest1
193  202 
1 Capitalized interest was $11 million and $8 million for the nine months ended September 30, 2024 and 2023, respectively.