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Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.22.0.1
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract] Ìý
SEGMENT REPORTING
NOTE 5 - 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, infrastructure and manufacturing, and distributors and converters 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:
(In Millions)
Year Ended December 31,
2021 2020 2019
Revenues:
Steelmaking $ 19,901Ìý $ 4,965Ìý $ 1,990Ìý
Other Businesses 543Ìý 389Ìý —Ìý
Total revenues $ 20,444Ìý $ 5,354Ìý $ 1,990Ìý
Adjusted EBITDA:
Steelmaking $ 5,422Ìý $ 433Ìý $ 636Ìý
Other Businesses 9Ìý 47Ìý —Ìý
Corporate and eliminations (169) (127) (111)
Total Adjusted EBITDA $ 5,262Ìý $ 353Ìý $ 525Ìý
The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
(In Millions)
Year Ended December 31,
2021 2020 2019
Net income (loss) $ 3,033Ìý $ (81) $ 293Ìý
Less:
Interest expense, net (337) (238) (101)
Income tax benefit (expense) (773) 111Ìý (18)
Depreciation, depletion and amortization (897) (308) (85)
5,040Ìý 354Ìý 497Ìý
Less:
EBITDA from noncontrolling interests1
75Ìý 56Ìý —Ìý
Gain (loss) on extinguishment of debt (88) 130Ìý (18)
Severance costs (15) (38) (2)
Acquisition-related costs excluding severance costs (5) (52) (7)
Acquisition-related loss on equity method investment (31) —Ìý —Ìý
Amortization of inventory step-up (161) (96) —Ìý
Impact of discontinued operations 3Ìý 1Ìý (1)
Total Adjusted EBITDA $ 5,262Ìý $ 353Ìý $ 525Ìý
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests $ 45Ìý $ 41Ìý $ —Ìý
Depreciation, depletion and amortization 30Ìý 15Ìý —Ìý
EBITDA of noncontrolling interests $ 75Ìý $ 56Ìý $ —Ìý
The following table summarizes our depreciation, depletion and amortization and capital additions by segment:
(In Millions)
Year Ended December 31,
2021 2020 2019
Depreciation, depletion and amortization:
Steelmaking $ 855Ìý $ 276Ìý $ 80Ìý
Other Businesses 37Ìý 27Ìý —Ìý
Corporate 5Ìý 5Ìý 5Ìý
Total depreciation, depletion and amortization $ 897Ìý $ 308Ìý $ 85Ìý
Capital additions1:
Steelmaking $ 787Ìý $ 436Ìý $ 687Ìý
Other Businesses 52Ìý 45Ìý —Ìý
Corporate 18Ìý 2Ìý 3Ìý
Total capital additions $ 857Ìý $ 483Ìý $ 690Ìý
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
The following summarizes our assets by segment:
(In Millions)
December 31,
2021 2020
Assets:
Steelmaking $ 18,326Ìý $ 15,849Ìý
Other Businesses 306Ìý 239Ìý
Total segment assets 18,632Ìý 16,088Ìý
Corporate 343Ìý 683Ìý
Total assets $ 18,975Ìý $ 16,771Ìý
Included in the consolidated financial statements are the following amounts relating to geographic location based on product destination:
(In Millions)
2021 2020 2019
Revenues:
United States $ 18,881Ìý $ 4,580Ìý $ 1,505Ìý
Canada 803Ìý 602Ìý 448Ìý
Other countries 760Ìý 172Ìý 37Ìý
Total revenues $ 20,444Ìý $ 5,354Ìý $ 1,990Ìý
Property, plant and equipment, net:
United States $ 9,092Ìý $ 8,647Ìý $ 1,929Ìý
Canada 93Ìý 91Ìý —Ìý
Other countries 1Ìý 5Ìý —Ìý
Total property, plant and equipment, net $ 9,186Ìý $ 8,743Ìý $ 1,929Ìý