Annual report [Section 13 and 15(d), not S-K Item 405]

SEGMENT REPORTING

v3.25.0.1
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2024
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 a leading North America-based steel producer with focus on value-added sheet products, 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. Corporate assets and capital additions are primarily related to and support the operations of the Steelmaking segment and therefore have been incorporated within the Steelmaking segment total assets and capital additions below. We allocate Corporate Selling, general and administrative expenses to our operating segments.
Our CODM, Lourenco Goncalves, Chairman, President and CEO, evaluates 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 our CODM, 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, our CODM 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.
The following tables provide our results by segment as well as a reconciliation from consolidated Adjusted EBITDA to our consolidated Net income (loss):
Year Ended December 31, 2024
(In millions) Steelmaking Other Businesses Eliminations Total
Revenues $ 18,620  $ 656  $ (91) $ 19,185 
Cost of goods sold (18,605) (606) 96  (19,115)
Selling, general and administrative expenses (457) (29) —  (486)
Net periodic benefit credits other than service cost component 247  —  —  247 
Excluding depreciation, depletion and amortization 919  32  —  951 
Other segment items1
(2) —  —  (2)
Total Adjusted EBITDA $ 722  $ 53  $ 5  $ 780 
Interest expense, net $ (370)
Income tax benefit 235 
Depreciation, depletion and amortization (951)
EBITDA from noncontrolling interests2
76 
Weirton indefinite idle (217)
Arbitration decision (71)
Acquisition-related costs (44)
Changes in fair value of derivatives, net (41)
Loss on extinguishment of debt (27)
Amortization of inventory step-up (26)
Loss on currency exchange (20)
Loss on disposal of assets (16)
Other, net (16)
Net loss $ (708)
Capital Additions $ 812  $ 5  $ —  $ 817 
Assets $ 20,327  $ 620  $ —  $ 20,947 
1 Other segment items primarily consists of the exclusion of EBITDA of noncontrolling interests and the Arbitration decision from Adjusted EBITDA and, to a lesser extent, the inclusion of items within Miscellaneous – net and Other non-operating income (loss).
2 EBITDA of noncontrolling interests includes net income attributable to noncontrolling interests of $46 million and the exclusion of depreciation, depletion, and amortization of $30 million.
Year Ended December 31, 2023
(In millions) Steelmaking Other Businesses Eliminations Total
Revenues $ 21,413  $ 665  $ (82) $ 21,996 
Cost of goods sold (20,055) (627) 77 (20,605)
Selling, general and administrative expenses (549) (28) —  (577)
Net periodic benefit credits other than service cost component 204 —  —  204 
Excluding depreciation, depletion and amortization 938 35 —  973 
Other segment items1
(78) (2) —  (80)
Total Adjusted EBITDA $ 1,873  $ 43  $ (5) $ 1,911 
Interest expense, net $ (289)
Income tax expense (148)
Depreciation, depletion and amortization (973)
EBITDA from noncontrolling interests2
83
Acquisition-related costs (12)
Loss on disposal of assets (15)
Goodwill impairment (125)
Other, net 18 
Net income $ 450 
Capital Additions $ 782  $ 3  $ —  $ 785 
Assets $ 16,880  $ 657  $ —  $ 17,537 
1 Other segment items primarily consists of the exclusion of EBITDA of noncontrolling interests from Adjusted EBITDA and, to a lesser extent, the inclusion of items within Miscellaneous – net and Other non-operating income (loss).
2 EBITDA of noncontrolling interests includes net income attributable to noncontrolling interests of $51 million and the exclusion of depreciation, depletion, and amortization of $32 million.
Year Ended December 31, 2022
(In millions) Steelmaking Other Businesses Eliminations Total
Revenues $ 22,462  $ 606  $ (79) $ 22,989 
Cost of goods sold (20,004) (557) 90  (20,471)
Selling, general and administrative expenses (439) (26) —  (465)
Net periodic benefit credits other than service cost component 212 —  —  212 
Excluding depreciation, depletion and amortization 994 40  —  1,034 
Other segment items1
(136) 6  —  (130)
Total Adjusted EBITDA $ 3,089  $ 69  $ 11  $ 3,169 
Interest expense, net $ (276)
Income tax expense (423)
Depreciation, depletion and amortization (1,034)
EBITDA from noncontrolling interests2
74
Acquisition-related costs (1)
Loss on extinguishment of debt (75)
Loss on disposal of assets (22)
Other, net (36)
Net income $ 1,376 
Capital Additions $ 1,003  $ 30  $ —  $ 1,033 
Assets $ 17,918  $ 837  $ —  $ 18,755 
1 Other segment items primarily consists of the exclusion of EBITDA of noncontrolling interests from Adjusted EBITDA and, to a lesser extent, the inclusion of items within Miscellaneous – net and Other non-operating income (loss).
2 EBITDA of noncontrolling interests includes net income attributable to noncontrolling interests of $41 million and the exclusion of depreciation, depletion, and amortization of $33 million.
Included in the consolidated financial statements are the following amounts relating to geographic location based on product destination:
Year Ended December 31,
(In millions) 2024 2023 2022
Revenues:
United States $ 17,340  $ 20,000  $ 20,991 
Canada 1,067  1,046  963 
Other countries 778  950  1,035 
Total revenues $ 19,185  $ 21,996  $ 22,989 
Property, plant and equipment, net:
United States $ 8,622  $ 8,816  $ 8,981 
Canada 1,319  78  88 
Other countries 1  1  1 
Total property, plant and equipment, net $ 9,942  $ 8,895  $ 9,070