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Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.23.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract] Ìý
SEGMENT REPORTING
NOTE 4 - 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, distributors and converters, and infrastructure and manufacturing 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:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(In millions) 2023 2022 2023 2022
Revenues:
Steelmaking $ 5,443Ìý $ 5,511Ìý $ 16,377Ìý $ 17,481Ìý
Other Businesses 162Ìý 142Ìý 507Ìý 464Ìý
Total revenues $ 5,605Ìý $ 5,653Ìý $ 16,884Ìý $ 17,945Ìý
Adjusted EBITDA:
Steelmaking $ 603Ìý $ 447Ìý $ 1,608Ìý $ 2,980Ìý
Other Businesses 9Ìý 9Ìý 32Ìý 58Ìý
Eliminations 2Ìý 7Ìý (8) 8Ìý
Total Adjusted EBITDA $ 614Ìý $ 463Ìý $ 1,632Ìý $ 3,046Ìý
The following table provides a reconciliation of our consolidated Net income to total Adjusted EBITDA:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(In millions) 2023 2022 2023 2022
Net income $ 275Ìý $ 165Ìý $ 589Ìý $ 1,580Ìý
Less:
Interest expense, net (70) (64) (226) (205)
Income tax expense (29) (10) (118) (404)
Depreciation, depletion and amortization (249) (237) (738) (788)
623Ìý 476Ìý 1,671Ìý 2,977Ìý
Less:
EBITDA of noncontrolling interests1
20Ìý 22Ìý 60Ìý 57Ìý
Gain (loss) on extinguishment of debt —Ìý 4Ìý —Ìý (76)
Asset impairment —Ìý —Ìý —Ìý (29)
Other, net (11) (13) (21) (21)
Total Adjusted EBITDA $ 614Ìý $ 463Ìý $ 1,632Ìý $ 3,046Ìý
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests $ 11Ìý $ 13Ìý $ 35Ìý $ 31Ìý
Depreciation, depletion and amortization 9Ìý 9Ìý 25Ìý 26Ìý
EBITDA of noncontrolling interests $ 20Ìý $ 22Ìý $ 60Ìý $ 57Ìý
The following summarizes our assets by segment:
(In millions) September 30,
2023		 December 31,
2022
Assets:
Steelmaking $ 17,481Ìý $ 18,070Ìý
Other Businesses 819Ìý 836Ìý
Intersegment eliminations (531) (521)
Total segment assets 17,769Ìý 18,385Ìý
Corporate 290Ìý 370Ìý
Total assets $ 18,059Ìý $ 18,755Ìý
The following table summarizes our depreciation, depletion and amortization and capital additions by segment:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(In millions) 2023 2022 2023 2022
Depreciation, depletion and amortization:
Steelmaking $ (241) $ (227) $ (711) $ (758)
Other Businesses (8) (10) (27) (30)
Total depreciation, depletion and amortization $ (249) $ (237) $ (738) $ (788)
Capital additions1:
Steelmaking $ 217Ìý $ 240Ìý $ 503Ìý $ 712Ìý
Other Businesses —Ìý 6Ìý 3Ìý 21Ìý
Corporate 1Ìý 1Ìý 2Ìý 3Ìý
Total capital additions $ 218Ìý $ 247Ìý $ 508Ìý $ 736Ìý
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.