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Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.24.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2024
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 a leading North America-based steel producer supported by being the largest iron ore pellet producer as well as a leading prime scrap processor, 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 allocate Corporate Selling, general and administrative expenses to our operating segments.
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, showing results exclusive of certain non-recurring and/or non-cash items. 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) 2024 2023 2024 2023
Revenues:
Steelmaking $ 4,419Ìý $ 5,443Ìý $ 14,361Ìý $ 16,377Ìý
Other Businesses 150Ìý 162Ìý 499Ìý 507Ìý
Total revenues $ 4,569Ìý $ 5,605Ìý $ 14,860Ìý $ 16,884Ìý
Adjusted EBITDA:
Steelmaking $ 113Ìý $ 603Ìý $ 814Ìý $ 1,608Ìý
Other Businesses 8Ìý 9Ìý 43Ìý 32Ìý
Eliminations 3Ìý 2Ìý 4Ìý (8)
Total Adjusted EBITDA $ 124Ìý $ 614Ìý $ 861Ìý $ 1,632Ìý
The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(In millions) 2024 2023 2024 2023
Net income (loss) $ (230) $ 275Ìý $ (274) $ 589Ìý
Less:
Interest expense, net (102) (70) (235) (226)
Income tax benefit (expense) 76Ìý (29) 99Ìý (118)
Depreciation, depletion and amortization (235) (249) (693) (738)
Total EBITDA 31Ìý 623Ìý 555Ìý 1,671Ìý
Less:
EBITDA of noncontrolling interests1
20Ìý 20Ìý 56Ìý 60Ìý
Weirton indefinite idle2
(2) —Ìý (219) —Ìý
Loss on extinguishment of debt —Ìý —Ìý (27) —Ìý
Acquisition-related costs (14) (3) (14) (5)
Changes in fair value of foreign currency contracts, net (7) —Ìý (7) —Ìý
Arbitration decision (71) —Ìý (71) —Ìý
Other, net (19) (8) (24) (16)
Total Adjusted EBITDA $ 124Ìý $ 614Ìý $ 861Ìý $ 1,632Ìý
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests $ 12Ìý $ 11Ìý $ 33Ìý $ 35Ìý
Depreciation, depletion and amortization 8Ìý 9Ìý 23Ìý 25Ìý
EBITDA of noncontrolling interests $ 20Ìý $ 20Ìý $ 56Ìý $ 60Ìý
2 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for further information.
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) 2024 2023 2024 2023
Depreciation, depletion and amortization:
Steelmaking $ (228) $ (241) $ (669) $ (711)
Other Businesses (7) (8) (24) (27)
Total depreciation, depletion and amortization $ (235) $ (249) $ (693) $ (738)
Capital additions1:
Steelmaking $ 211Ìý $ 217Ìý $ 554Ìý $ 503Ìý
Other Businesses —Ìý —Ìý 3Ìý 3Ìý
Corporate —Ìý 1Ìý —Ìý 2Ìý
Total capital additions $ 211Ìý $ 218Ìý $ 557Ìý $ 508Ìý
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
The following summarizes our assets by segment:
(In millions) September 30,
2024		 December 31,
2023
Assets:
Steelmaking $ 16,235Ìý $ 16,880Ìý
Other Businesses 637Ìý 657Ìý
Intersegment eliminations (489) (507)
Total segment assets 16,383Ìý 17,030Ìý
Corporate 413Ìý 507Ìý
Total assets $ 16,796Ìý $ 17,537Ìý