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Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.20.4
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract] Ìý
SEGMENT REPORTING We are vertically integrated from the mining of iron ore and coal; to production of metallics and coke; through iron making, steelmaking, rolling, finishing; and to downstream tubing, stamping and tooling. We are organized into four operating segments based on our differentiated products - Steelmaking, Tubular, Tooling and Stamping, and European Operations. Our previous Mining and Pelletizing segment is included within the Steelmaking operating segment as iron ore pellets are a primary raw material for our steel products. 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 is the largest flat-rolled steel producer supported by being the largest iron ore pellet producer 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:
(In Millions)
Year Ended December 31,
2020 2019 2018
Revenues:
Steelmaking1
$ 4,965Ìý $ 1,990Ìý $ 2,332Ìý
Other Businesses 389Ìý —Ìý —Ìý
Total revenues $ 5,354Ìý $ 1,990Ìý $ 2,332Ìý
Adjusted EBITDA:
Steelmaking $ 433Ìý $ 636Ìý $ 872Ìý
Other Businesses 47Ìý —Ìý —Ìý
Corporate and eliminations (127) (111) (106)
Total Adjusted EBITDA $ 353Ìý $ 525Ìý $ 766Ìý
1 Includes Realization of deferred revenue of $35 million for the year ended DecemberÌý31, 2020.
The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
(In Millions)
Year Ended December 31,
2020 2019 2018
Net income (loss) $ (81) $ 293Ìý $ 1,128Ìý
Less:
Interest expense, net (238) (101) (121)
Income tax benefit (expense) 111Ìý (18) 460Ìý
Depreciation, depletion and amortization (308) (85) (89)
354Ìý 497Ìý 878Ìý
Less:
EBITDA from noncontrolling interests1
56Ìý —Ìý —Ìý
Gain (loss) on extinguishment of debt 130Ìý (18) (7)
Severance costs (38) (2) —Ìý
Acquisition-related costs excluding severance costs (52) (7) —Ìý
Amortization of inventory step-up (96) —Ìý —Ìý
Impact of discontinued operations 1Ìý (1) 121Ìý
Foreign exchange remeasurement —Ìý —Ìý (1)
Impairment of other long-lived assets —Ìý —Ìý (1)
Total Adjusted EBITDA $ 353Ìý $ 525Ìý $ 766Ìý
1 EBITDA of noncontrolling interests includes $41 million for income and $15Ìýmillion for depreciation, depletion and amortization for the year ended DecemberÌý31, 2020.
The following table summarizes our depreciation, depletion and amortization and capital additions by segment:
(In Millions)
Year Ended December 31,
2020 2019 2018
Depreciation, depletion and amortization:
Steelmaking $ 276Ìý $ 80Ìý $ 68Ìý
Other Businesses 27Ìý —Ìý —Ìý
Corporate 5Ìý 5Ìý 6Ìý
Total depreciation, depletion and amortization $ 308Ìý $ 85Ìý $ 74Ìý
Capital additions1:
Steelmaking $ 436Ìý $ 687Ìý $ 393Ìý
Other Businesses 45Ìý —Ìý —Ìý
Corporate 2Ìý 3Ìý 2Ìý
Total capital additions $ 483Ìý $ 690Ìý $ 395Ìý
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
The following summarizes our assets by segment:
(In Millions)
December 31,
2020 2019
Assets:
Steelmaking $ 15,849Ìý $ 2,557Ìý
Other Businesses 239Ìý —Ìý
Total segment assets 16,088Ìý 2,557Ìý
Corporate 683Ìý 947Ìý
Total assets $ 16,771Ìý $ 3,504Ìý
Included in the consolidated financial statements are the following amounts relating to geographic location based on product destination:
(In Millions)
2020 2019 2018
Revenues:
United States $ 4,580Ìý $ 1,505Ìý $ 1,847Ìý
Canada 602Ìý 448Ìý 395Ìý
Other countries 172Ìý 37Ìý 90Ìý
Total revenues $ 5,354Ìý $ 1,990Ìý $ 2,332Ìý
Property, plant and equipment, net:
United States $ 8,647Ìý $ 1,929Ìý $ 1,286Ìý
Canada 91Ìý —Ìý —Ìý
Other countries 5Ìý —Ìý —Ìý
Total property, plant and equipment, net $ 8,743Ìý $ 1,929Ìý $ 1,286Ìý