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Annual report pursuant to Section 13 and 15(d)

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

v3.20.4
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Dec. 31, 2020
Disclosure Text Block [Abstract] Ìý
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)
2020 2019
Allowance for credit losses as of January 1 $ —Ìý $ —Ìý
Increase in allowance (5) —Ìý
Allowance for credit losses as of December 31 $ (5) $ —Ìý
Inventories
The following table presents the detail of our Inventories in the Statements of Consolidated Financial Position:
(In Millions)
Year Ended December 31,
2020 2019
Product inventories
Finished and semi-finished goods $ 2,125Ìý $ 114Ìý
Work-in-process —Ìý 69Ìý
Raw materials 1,431Ìý 9Ìý
Total product inventories 3,556Ìý 192Ìý
Manufacturing supplies and critical spares 272Ìý 125Ìý
Inventories $ 3,828Ìý $ 317Ìý
The excess of current cost over LIFO cost of iron ore inventories was $104Ìýmillion and $101Ìýmillion at DecemberÌý31, 2020 and 2019, respectively. As of DecemberÌý31, 2020, the product inventory balance for iron ore inventories decreased, resulting in the liquidation of a LIFO layer. The effect of the inventory reduction was an increase in Cost of goods sold of $30Ìýmillion in the Statements of Consolidated Operations for the year ended DecemberÌý31, 2020. As of DecemberÌý31, 2019, the product inventory balance for iron ore inventories increased, resulting in a LIFO increment in 2019. The effect of the inventory build was an increase in Inventories of $34Ìýmillion in the Statements of Consolidated Financial Position for the year ended DecemberÌý31, 2019.
The allowance for obsolete and surplus items in supplies and other inventories was $13Ìýmillion at both DecemberÌý31, 2020 and 2019.
Cash Flow Information
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
(In Millions)
Year Ended December 31,
2020 2019 2018
Capital additions $ 483Ìý $ 690Ìý $ 395Ìý
Less:
Non-cash accruals (86) 15Ìý 94Ìý
Right-of-use assets - finance leases 44Ìý 29Ìý 8Ìý
Grants —Ìý (10) (3)
Cash paid for capital expenditures including deposits $ 525Ìý $ 656Ìý $ 296Ìý
Cash payments (receipts) for interest and income taxes are as follows:
(In Millions)
2020 2019 2018
Taxes paid on income $ 5Ìý $ —Ìý $ 3Ìý
Income tax refunds (120) (118) (11)
Interest paid on debt obligations net of capitalized interest1
170Ìý 98Ìý 106Ìý
1 Capitalized interest was $53 million, $25 million and $7 million for the years ended DecemberÌý31, 2020, 2019 and 2018, respectively.
Non-Cash Investing and Financing Activities
(In Millions)
2020 2019 2018
Fair value of common shares issued as part of consideration in connection with AM USA Transaction $ 990Ìý $ —Ìý $ —Ìý
Fair value of Series B Participating Redeemable Preferred Stock issued as part of consideration in connection with AM USA Transaction 738Ìý —Ìý —Ìý
Fair value of settlement of a pre-existing relationship as part of consideration in connection with AM USA Transaction 237Ìý —Ìý —Ìý
Fair value of common shares issued as consideration in connection with AK Steel Merger 618Ìý —Ìý —Ìý
Fair value of equity awards assumed in connection with AK Steel Merger 4Ìý —Ìý —Ìý
Discontinued Operations
We had income from discontinued operations, net of tax of $88 million for the year ended December 31, 2018. During 2018, we sold all of the assets of our Asia Pacific Iron Ore mining operations, which had operating losses of $105Ìýmillion for the year ended December 31, 2018. Additionally, as a result of the liquidation of the net assets of our Australian subsidiaries, the historical changes in foreign currency translation recorded in Accumulated other comprehensive loss totaling $228Ìýmillion was reclassified and recognized as a gain in Income (loss) from discontinued operations, net of tax.