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Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.22.4
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract] Ìý
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 the largest flat-rolled steel producer supported by being the largest iron ore pellet producer as well as a leading prime scrap processor 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:
Year Ended December 31,
(In millions) 2022 2021 2020
Revenues:
Steelmaking $ 22,383Ìý $ 19,901Ìý $ 4,965Ìý
Other Businesses 606Ìý 543Ìý 389Ìý
Total revenues $ 22,989Ìý $ 20,444Ìý $ 5,354Ìý
Adjusted EBITDA:
Steelmaking $ 3,089Ìý $ 5,280Ìý $ 316Ìý
Other Businesses 69Ìý 9Ìý 47Ìý
Eliminations1
11Ìý (12) (10)
Total Adjusted EBITDA $ 3,169Ìý $ 5,277Ìý $ 353Ìý
1 In 2022, we began allocating Corporate Selling, general and administrative expenses to our operating segments. Prior periods have been adjusted to reflect this change. The Eliminations line now only includes sales between segments.
The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
Year Ended December 31,
(In millions) 2022 2021 2020
Net income (loss) $ 1,376Ìý $ 3,033Ìý $ (81)
Less:
Interest expense, net (276) (337) (238)
Income tax benefit (expense) (423) (773) 111Ìý
Depreciation, depletion and amortization (1,034) (897) (308)
3,109Ìý 5,040Ìý 354Ìý
Less:
EBITDA from noncontrolling interests1
74Ìý 75Ìý 56Ìý
Gain (loss) on extinguishment of debt (75) (88) 130Ìý
Acquisition-related expenses and adjustments (1) (197) (148)
Asset impairment (29) —Ìý —Ìý
Other, net (29) (27) (37)
Total Adjusted EBITDA $ 3,169Ìý $ 5,277Ìý $ 353Ìý
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests $ 41Ìý $ 45Ìý $ 41Ìý
Depreciation, depletion and amortization 33Ìý 30Ìý 15Ìý
EBITDA of noncontrolling interests $ 74Ìý $ 75Ìý $ 56Ìý
The following table summarizes our depreciation, depletion and amortization and capital additions by segment:
Year Ended December 31,
(In millions) 2022 2021 2020
Depreciation, depletion and amortization:
Steelmaking $ (994) $ (860) $ (281)
Other Businesses (40) (37) (27)
Total depreciation, depletion and amortization $ (1,034) $ (897) $ (308)
Capital additions1:
Steelmaking $ 997Ìý $ 787Ìý $ 436Ìý
Other Businesses 30Ìý 52Ìý 45Ìý
Corporate 6Ìý 18Ìý 2Ìý
Total capital additions $ 1,033Ìý $ 857Ìý $ 483Ìý
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
The following summarizes our assets by segment:
December 31,
(In millions) 2022 2021
Assets:
Steelmaking $ 18,070Ìý $ 18,326Ìý
Other Businesses 315Ìý 306Ìý
Total segment assets 18,385Ìý 18,632Ìý
Corporate/Eliminations 370Ìý 343Ìý
Total assets $ 18,755Ìý $ 18,975Ìý
Included in the consolidated financial statements are the following amounts relating to geographic location based on product destination:
(In millions) 2022 2021 2020
Revenues:
United States $ 20,991Ìý $ 18,881Ìý $ 4,580Ìý
Canada 963Ìý 803Ìý 602Ìý
Other countries 1,035Ìý 760Ìý 172Ìý
Total revenues $ 22,989Ìý $ 20,444Ìý $ 5,354Ìý
Property, plant and equipment, net:
United States $ 8,981Ìý $ 9,092Ìý $ 8,647Ìý
Canada 88Ìý 93Ìý 91Ìý
Other countries 1Ìý 1Ìý 5Ìý
Total property, plant and equipment, net $ 9,070Ìý $ 9,186Ìý $ 8,743Ìý