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Annual report pursuant to Section 13 and 15(d)

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

v3.22.4
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Dec. 31, 2022
Disclosure Text Block [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) 2022 2021
Allowance for credit losses as of January 1 $ (4) $ (5)
Decrease in allowance —Ìý 1Ìý
Allowance for credit losses as of December 31 $ (4) $ (4)
INVENTORIES
The following table presents the detail of our Inventories on the Statements of Consolidated Financial Position:
December 31,
(In millions) 2022 2021
Product inventories
Finished and semi-finished goods $ 2,971Ìý $ 2,814Ìý
Raw materials 1,794Ìý 2,070Ìý
Total product inventories 4,765Ìý 4,884Ìý
Manufacturing supplies and critical spares 365Ìý 304Ìý
Inventories $ 5,130Ìý $ 5,188Ìý
The excess of current cost over LIFO cost of iron ore inventories was $169Ìýmillion and $124Ìýmillion at DecemberÌý31, 2022 and 2021, respectively. As of DecemberÌý31, 2022, the product inventory balance for iron ore inventories decreased, resulting in a liquidation of a LIFO layer in 2022. The effect of the inventory reduction was an increase in Cost of goods sold of $36Ìýmillion in the Statements of Consolidated Operations for the year ended DecemberÌý31, 2022. As of DecemberÌý31, 2021, the product inventory balance for iron ore inventories increased, resulting in a LIFO increment in 2021. The effect of the inventory build was an increase in Inventories of $45Ìýmillion on the Statements of Consolidated Financial Position for the year ended DecemberÌý31, 2021.
CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Year Ended December 31,
(In millions) 2022 2021 2020
Capital additions $ 1,033Ìý $ 857Ìý $ 483Ìý
Less:
Non-cash accruals 35Ìý 102Ìý (86)
Right-of-use assets - finance leases 55Ìý 50Ìý 44Ìý
Cash paid for capital expenditures including deposits $ 943Ìý $ 705Ìý $ 525Ìý
Additionally, included within Other investing activities on the Statements of Consolidated Cash Flows are grant reimbursements related to governmental funded capital projects. For the years ended DecemberÌý31, 2022 and 2021, grant reimbursements were $27Ìýmillion and $2Ìýmillion, respectively.
Cash payments (receipts) for interest and income taxes are as follows:
Year Ended December 31,
(In millions) 2022 2021 2020
Taxes paid on income $ 334Ìý $ 166Ìý $ 5Ìý
Income tax refunds (3) (16) (120)
Interest paid on debt obligations net of capitalized interest1
249Ìý 299Ìý 170Ìý
1 Capitalized interest was $9 million, $6 million and $53 million for the years ended DecemberÌý31, 2022, 2021 and 2020, respectively.
Other non-cash investing and financing activities are as follows:
Year Ended December 31,
(In millions) 2022 2021 2020
1.500% 2025 Convertible Senior Notes redemption $ 25Ìý $ —Ìý $ —Ìý
Fair value of settlement of a pre-existing relationship as part of consideration in connection with FPT Acquisition —Ìý (20) —Ìý
Fair value of common shares issued as part of consideration in connection with AM USA Transaction —Ìý —Ìý 990Ìý
Fair value of Series B Participating Redeemable Preferred Stock issued as part of consideration in connection with AM USA Transaction —Ìý —Ìý 738Ìý
Fair value of settlement of a pre-existing relationship as part of consideration in connection with AM USA Transaction —Ìý —Ìý 237Ìý
Fair value of common shares issued as consideration in connection with AK Steel Merger —Ìý —Ìý 618Ìý
Fair value of equity awards assumed in connection with AK Steel Merger —Ìý —Ìý 4Ìý