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Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.21.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract] Ìý
Segment Reporting
NOTE 5 - 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)
Three Months Ended
March 31,
2021 2020
Revenues:
Steelmaking $ 3,919Ìý $ 337Ìý
Other Businesses 130Ìý 22Ìý
Total revenues $ 4,049Ìý $ 359Ìý
Adjusted EBITDA:
Steelmaking $ 537Ìý $ 44Ìý
Other Businesses 11Ìý 2Ìý
Corporate and eliminations (35) (23)
Total Adjusted EBITDA $ 513Ìý $ 23Ìý
The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
(In Millions)
Three Months Ended
March 31,
2021 2020
Net income (loss) $ 57Ìý $ (49)
Less:
Interest expense, net (92) (31)
Income tax benefit (expense) (9) 51Ìý
Depreciation, depletion and amortization (217) (35)
375Ìý (34)
Less:
EBITDA of noncontrolling interests1
22Ìý 4Ìý
Gain (loss) on extinguishment of debt (66) 3Ìý
Severance costs (11) (19)
Acquisition-related costs excluding severance costs (2) (23)
Amortization of inventory step-up (81) (23)
Impact of discontinued operations —Ìý 1Ìý
Total Adjusted EBITDA $ 513Ìý $ 23Ìý
1 EBITDA of noncontrolling interests includes $16 million and $3 million for income and $6 million and $1 million for depreciation, depletion and amortization for the three months ended MarchÌý31, 2021 and 2020, respectively.
The following summarizes our assets by segment:
(In Millions)
March 31,
2021		 December 31,
2020
Assets:
Steelmaking $ 16,271Ìý $ 15,849Ìý
Other Businesses 295Ìý 239Ìý
Total segment assets 16,566Ìý 16,088Ìý
Corporate 649Ìý 683Ìý
Total assets $ 17,215Ìý $ 16,771Ìý
The following table summarizes our capital additions by segment:
(In Millions)
Three Months Ended
March 31,
2021 2020
Capital additions1:
Steelmaking $ 133Ìý $ 154Ìý
Other Businesses 11Ìý 3Ìý
Corporate 18Ìý 1Ìý
Total capital additions $ 162Ìý $ 158Ìý
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.