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Quarterly report pursuant to Section 13 or 15(d)

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

v3.23.1
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] Ìý
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
ALLOWANCE FOR CREDIT LOSSES
The following is a roll-forward of our allowance for credit losses associated with Accounts receivable, net:
(In millions) 2023 2022
Allowance for credit losses as of January 1 $ (4) $ (4)
Increase in allowance (1) —Ìý
Allowance for credit losses as of March 31 $ (5) $ (4)
INVENTORIES
The following table presents the detail of our Inventories on the Statements of Unaudited Condensed Consolidated Financial Position:
(In millions) March 31,
2023		 December 31,
2022
Product inventories
Finished and semi-finished goods $ 2,919Ìý $ 2,971Ìý
Raw materials 1,626Ìý 1,794Ìý
Total product inventories 4,545Ìý 4,765Ìý
Manufacturing supplies and critical spares 378Ìý 365Ìý
Inventories $ 4,923Ìý $ 5,130Ìý
SUPPLY CHAIN FINANCE PROGRAMS
We negotiate payment terms directly with our suppliers for the purchase of goods and services. We currently offer voluntary supply chain finance programs that enable our suppliers to sell their Cliffs receivables to financial intermediaries, at the sole discretion of both the suppliers and financial intermediaries. No guarantees are provided by us or our subsidiaries under the supply chain finance programs. The supply chain finance programs allow our suppliers to be paid by the financial intermediaries earlier than the due date on the applicable invoice. Supply chain finance programs that extend terms or provide us an economic benefit are classified as short-term financings. As of MarchÌý31, 2023 and DecemberÌý31, 2022, we had $27Ìýmillion and $19Ìýmillion, respectively, deemed as short-term financings that are classified in Other current liabilities. Additionally, as of MarchÌý31, 2023 and DecemberÌý31, 2022, we had $87Ìýmillion and $112Ìýmillion, respectively, classified as Accounts payable.
CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Three Months Ended
March 31,
(In millions) 2023 2022
Capital additions $ 128Ìý $ 181Ìý
Less:
Non-cash accruals (76) (55)
Right-of-use assets - finance leases 16Ìý —Ìý
Cash paid for capital expenditures including deposits $ 188Ìý $ 236Ìý
Cash payments (receipts) for income taxes and interest are as follows:
Three Months Ended
March 31,
(In millions) 2023 2022
Taxes paid on income $ 1Ìý $ 1Ìý
Income tax refunds (26) (1)
Interest paid on debt obligations net of capitalized interest1
79Ìý 65Ìý
1 Capitalized interest was $3 million and $2 million for the three months ended MarchÌý31, 2023 and 2022, respectively.