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Annual report pursuant to Section 13 and 15(d)

REVENUES

v3.22.0.1
REVENUES
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract] Ìý
Revenues
NOTE 4 - REVENUES
We generate our revenue through product sales, in which shipping terms indicate when we have fulfilled our performance obligations and transferred control of products to our customer. Our revenue transactions consist of a single performance obligation to transfer promised goods. Our contracts with customers define the mechanism for determining the sales price, which is generally fixed upon transfer of control, but the contracts generally do not impose a specific quantity on either party. Quantities to be delivered to the customer are determined at a point near the date of delivery through purchase orders or other written instructions we receive from the customer. Spot market sales are made through purchase orders or other written instructions. We consider our performance obligation to be complete and recognize revenue when control transfers in accordance with shipping terms.
Revenue is measured as the amount of consideration we expect to receive in exchange for transferring product. We reduce the amount of revenue recognized for estimated returns and other customer credits, such as discounts and volume rebates, based on the expected value to be realized. Payment terms are consistent with terms standard to the markets we serve. Sales taxes collected from customers are excluded from revenues.
Prior to the AM USA Transaction, we had a supply agreement with ArcelorMittal USA, which included supplemental revenue or refunds based on the HRC price in the year the iron ore was consumed in ArcelorMittal USA's blast furnaces. As control transferred prior to consumption, the supplemental revenue was recorded in accordance with Topic 815. All sales occurring subsequent to the AM USA Transaction are intercompany and eliminated in consolidation. Included within Revenues related to Topic 815 for the supplemental revenue portion of the supply agreement is derivative revenue of $122Ìýmillion and $78Ìýmillion for the years ended December 31, 2020 and 2019, respectively.
The following table represents our Revenues by market:
(In Millions)
Year Ended December 31,
2021 2020 2019
Steelmaking:
Automotive $ 4,726Ìý $ 2,062Ìý $ —Ìý
Infrastructure and manufacturing 5,380Ìý 784Ìý —Ìý
Distributors and converters 7,671Ìý 696Ìý —Ìý
Steel producers
 2,124 1,423Ìý 1,990Ìý
Total Steelmaking 19,901Ìý 4,965Ìý 1,990Ìý
Other Businesses:
Automotive 426Ìý 329Ìý —Ìý
Infrastructure and manufacturing 47Ìý 34Ìý —Ìý
Distributors and converters 70Ìý 26Ìý —Ìý
Total Other Businesses 543Ìý 389Ìý —Ìý
Total revenues $ 20,444Ìý $ 5,354Ìý $ 1,990Ìý
The following table represents our Revenues by product line:
(Dollars In Millions, Sales Volumes in Thousands)
Year Ended December 31,
2021 2020 2019
Revenue
Volume1
Revenue
Volume1
Revenue
Volume1
Steelmaking:
Hot-rolled steel $ 5,615Ìý 4,886Ìý $ 386Ìý 633Ìý $ —Ìý —Ìý
Cold-rolled steel 3,186Ìý 2,790Ìý 490Ìý 682Ìý —Ìý —Ìý
Coated steel 5,864Ìý 5,056Ìý 1,747Ìý 1,911Ìý —Ìý —Ìý
Stainless and electrical steel 1,622Ìý 674Ìý 868Ìý 416Ìý —Ìý —Ìý
Plate 1,316Ìý 1,020Ìý 46Ìý 62Ìý —Ìý —Ìý
Other steel products 1,247Ìý 1,460Ìý 46Ìý 79Ìý —Ìý —Ìý
Other 1,051Ìý N/A 1,382Ìý N/A 1,990Ìý N/A
Total steelmaking 19,901Ìý 4,965Ìý 1,990Ìý
Other Businesses:
Other 543Ìý N/A 389Ìý N/A —Ìý N/A
Total revenues $ 20,444Ìý $ 5,354Ìý $ 1,990Ìý
1 All product volumes are stated in net tons.
Deferred Revenue
The table below summarizes our deferred revenue balances:
(In Millions)
Deferred Revenue (Current) Deferred Revenue (Long-Term)
2021 2020 2021 2020
Opening balance as of January 1 $ 7Ìý $ 22Ìý $ —Ìý $ 26Ìý
Net increase (decrease) 18Ìý (15) —Ìý (26)
Closing balance as of December 31 $ 25Ìý $ 7Ìý $ —Ìý $ —Ìý
Prior to the AK Steel Merger, our iron ore pellet sales agreement with Severstal Dearborn, LLC, subsequently assumed by AK Steel, required supplemental payments to be paid by the customer during the period from 2009 through 2013. Installment amounts received under this arrangement in excess of sales were classified as deferred revenue in theÌýStatements of Consolidated Financial PositionÌýupon receipt of payment and the revenue was recognized over the term of the supply agreement, which had extended until 2022, in equal annual installments. As a result of the termination of that iron ore pellet sales agreement, we realized $35Ìýmillion of deferred revenue, which was recognized within Revenues in the Statements of Consolidated Operations during the year ended December 31, 2020.