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Quarterly report pursuant to Section 13 or 15(d)

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

v3.24.3
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 9 Months Ended
Sep. 30, 2024
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) 2024 2023
Allowance for credit losses as of January 1 $ (5) $ (4)
Decrease (increase) in allowance 1Ìý (3)
Allowance for credit losses as of September 30 $ (4) $ (7)
INVENTORIES
The following table presents the detail of our Inventories on the Statements of Unaudited Condensed Consolidated Financial Position:
(In millions) September 30,
2024		 December 31,
2023
Product inventories
Finished and semi-finished goods $ 2,319Ìý $ 2,573Ìý
Raw materials 1,486Ìý 1,476Ìý
Total product inventories 3,805Ìý 4,049Ìý
Manufacturing supplies and critical spares 431Ìý 411Ìý
Inventories $ 4,236Ìý $ 4,460Ìý
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, 2024 and DecemberÌý31, 2023, we had $27Ìýmillion and $21Ìýmillion, respectively, deemed as short-term financings that are classified in Other current liabilities. Additionally, as of SeptemberÌý30, 2024 and DecemberÌý31, 2023, we had $71Ìýmillion and $91Ìýmillion, respectively, classified as Accounts payable.
WEIRTON INDEFINITE IDLE
On February 15, 2024, we announced the indefinite idle of our tinplate production plant located in Weirton, West Virginia. As of SeptemberÌý30, 2024, we have incurred $212Ìýmillion of charges related to the idle and estimate that we will incur nominal future charges to Restructuring and other charges, primarily related to employee related costs which are expected to be incurred by the end of 2024.
The following table represents a reconciliation of our accrued liabilities related to the Weirton indefinite idle:
(In millions) Employee- Related Costs Exit Costs Asset Impairment Total
Balance as of December 31, 2023 $ —Ìý $ —Ìý $ —Ìý $ —Ìý
Costs incurred1
58Ìý 48Ìý 64Ìý 170Ìý
Cash payments —Ìý (2) —Ìý (2)
Non-cash —Ìý —Ìý (64) (64)
Balance as of March 31, 2024 $ 58Ìý $ 46Ìý $ —Ìý $ 104Ìý
Costs incurred2
23Ìý 2Ìý 15Ìý 40Ìý
Cash payments (8) (10) —Ìý (18)
Non-cash —Ìý —Ìý (15) (15)
Balance as of June 30, 2024 $ 73Ìý $ 38Ìý $ —Ìý $ 111Ìý
Costs incurred3
—Ìý 2Ìý —Ìý 2Ìý
Cash payments (10) (11) —Ìý (21)
Balance as of September 30, 2024 $ 63Ìý $ 29Ìý $ —Ìý $ 92Ìý
1 Of the $170 million of cost incurred, $104Ìýmillion was recorded in Restructuring and other charges, $64 million was recorded in Asset impairments and $2 million was recorded in Net periodic benefit credits other than service cost component.
2 Of the $40 million of costs incurred, $25Ìýmillion was recorded in Restructuring and other charges and $15 million was recorded in Asset impairments.
3 Costs incurred of $2 million were recorded in Restructuring and other charges.
CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Nine Months Ended
September 30,
(In millions) 2024 2023
Capital additions $ 557Ìý $ 508Ìý
Less:
Non-cash accruals (58) (98)
Equipment financed with seller 50Ìý 47Ìý
Right-of-use assets - finance leases 75Ìý 78Ìý
Cash paid for capital expenditures including deposits $ 490Ìý $ 481Ìý
Cash payments (receipts) for income taxes and interest are as follows:
Nine Months Ended
September 30,
(In millions) 2024 2023
Income taxes paid $ 13Ìý $ 91Ìý
Income tax refunds (5) (142)
Interest paid on debt obligations net of capitalized interest1
193Ìý 202Ìý
1 Capitalized interest was $11 million and $8 million for the nine months ended SeptemberÌý30, 2024 and 2023, respectively.