Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.24.2
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE 4 - 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 supported by being the largest iron ore pellet producer as well as a leading prime scrap processor, primarily serving the automotive, distributors and converters, and infrastructure and manufacturing 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 allocate Corporate Selling, general and administrative expenses to our operating segments.
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:
Three Months Ended
June 30,		 Six Months Ended
June 30,
(In millions) 2024 2023 2024 2023
Revenues:
Steelmaking $ 4,915  $ 5,808  $ 9,942  $ 10,934 
Other Businesses 177  176  349  345 
Total revenues $ 5,092  $ 5,984  $ 10,291  $ 11,279 
Adjusted EBITDA:
Steelmaking $ 306  $ 765  $ 701  $ 1,005 
Other Businesses 18  15  35  23 
Eliminations (1) (5) 1  (10)
Total Adjusted EBITDA $ 323  $ 775  $ 737  $ 1,018 
The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
Three Months Ended
June 30,		 Six Months Ended
June 30,
(In millions) 2024 2023 2024 2023
Net income (loss) $ 9  $ 356  $ (44) $ 314 
Less:
Interest expense, net (69) (79) (133) (156)
Income tax benefit (expense) 15  (102) 23  (89)
Depreciation, depletion and amortization (228) (247) (458) (489)
291  784  524  1,048 
Less:
EBITDA of noncontrolling interests1
15  17  36  40 
Weirton indefinite idle2
(40) —  (217) — 
Loss on extinguishment of debt (6) —  (27) — 
Other, net (1) (8) (5) (10)
Total Adjusted EBITDA $ 323  $ 775  $ 737  $ 1,018 
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests $ 7  $ 9  $ 21  $ 24 
Depreciation, depletion and amortization 8  8  15  16 
EBITDA of noncontrolling interests $ 15  $ 17  $ 36  $ 40 
2 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for further information.
The following table summarizes our depreciation, depletion and amortization and capital additions by segment:
Three Months Ended
June 30,		 Six Months Ended
June 30,
(In millions) 2024 2023 2024 2023
Depreciation, depletion and amortization:
Steelmaking $ (219) $ (239) $ (441) $ (470)
Other Businesses (9) (8) (17) (19)
Total depreciation, depletion and amortization $ (228) $ (247) $ (458) $ (489)
Capital additions1:
Steelmaking $ 187  $ 159  $ 343  $ 286 
Other Businesses 2  2  3  3 
Corporate —  1  —  1 
Total capital additions $ 189  $ 162  $ 346  $ 290 
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
The following summarizes our assets by segment:
(In millions) June 30,
2024		 December 31,
2023
Assets:
Steelmaking $ 16,362  $ 16,880 
Other Businesses 666  657 
Intersegment eliminations (506) (507)
Total segment assets 16,522  17,030 
Corporate 406  507 
Total assets $ 16,928  $ 17,537