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Quarterly report pursuant to Section 13 or 15(d)

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

v3.23.3
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 9 Months Ended
Sep. 30, 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 (3) (1)
Allowance for credit losses as of September 30 $ (7) $ (5)
INVENTORIES
The following table presents the detail of our Inventories on the Statements of Unaudited Condensed Consolidated Financial Position:
(In millions) September 30,
2023		 December 31,
2022
Product inventories
Finished and semi-finished goods $ 2,616Ìý $ 2,971Ìý
Raw materials 1,588Ìý 1,794Ìý
Total product inventories 4,204Ìý 4,765Ìý
Manufacturing supplies and critical spares 388Ìý 365Ìý
Inventories $ 4,592Ìý $ 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 SeptemberÌý30, 2023 and DecemberÌý31, 2022, we had $21Ìýmillion and $19Ìýmillion, respectively, deemed as short-term financings that are classified in Other current liabilities. Additionally, as of SeptemberÌý30, 2023 and DecemberÌý31, 2022, we had $90Ìýmillion and $112Ìýmillion, respectively, classified as Accounts payable.
CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Nine Months Ended
September 30,
(In millions) 2023 2022
Capital additions $ 508Ìý $ 736Ìý
Less:
Non-cash accruals (98) (10)
Equipment financed with seller 47Ìý —Ìý
Right-of-use assets - finance leases 78Ìý 30Ìý
Cash paid for capital expenditures including deposits $ 481Ìý $ 716Ìý
Cash payments (receipts) for income taxes and interest are as follows:
Nine Months Ended
September 30,
(In millions) 2023 2022
Income taxes paid $ 91Ìý $ 306Ìý
Income tax refunds (142) (3)
Interest paid on debt obligations net of capitalized interest1
202Ìý 201Ìý
1 Capitalized interest was $8 million and $7 million for the nine months ended SeptemberÌý30, 2023 and 2022, respectively.