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Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.24.0.1
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2023
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 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. 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:
Year Ended December 31,
(In millions) 2023 2022 2021
Revenues:
Steelmaking $ 21,331Ìý $ 22,383Ìý $ 19,901Ìý
Other Businesses 665Ìý 606Ìý 543Ìý
Total revenues $ 21,996Ìý $ 22,989Ìý $ 20,444Ìý
Adjusted EBITDA:
Steelmaking $ 1,873Ìý $ 3,089Ìý $ 5,280Ìý
Other Businesses 43Ìý 69Ìý 9Ìý
Eliminations (5) 11Ìý (12)
Total Adjusted EBITDA $ 1,911Ìý $ 3,169Ìý $ 5,277Ìý
The following table provides a reconciliation of our consolidated Net income to total Adjusted EBITDA:
Year Ended December 31,
(In millions) 2023 2022 2021
Net income $ 450Ìý $ 1,376Ìý $ 3,033Ìý
Less:
Interest expense, net (289) (276) (337)
Income tax expense (148) (423) (773)
Depreciation, depletion and amortization (973) (1,034) (897)
1,860Ìý 3,109Ìý 5,040Ìý
Less:
EBITDA from noncontrolling interests1
83Ìý 74Ìý 75Ìý
Acquisition-related expenses and adjustments (12) (1) (197)
Goodwill impairment (125) —Ìý —Ìý
Non-cash gain on sale of business 28Ìý —Ìý —Ìý
Loss on extinguishment of debt —Ìý (75) (88)
Asset impairment —Ìý (29) —Ìý
Other, net (25) (29) (27)
Total Adjusted EBITDA $ 1,911Ìý $ 3,169Ìý $ 5,277Ìý
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests $ 51Ìý $ 41Ìý $ 45Ìý
Depreciation, depletion and amortization 32Ìý 33Ìý 30Ìý
EBITDA of noncontrolling interests $ 83Ìý $ 74Ìý $ 75Ìý
The following table summarizes our depreciation, depletion and amortization and capital additions by segment:
Year Ended December 31,
(In millions) 2023 2022 2021
Depreciation, depletion and amortization:
Steelmaking $ (938) $ (994) $ (860)
Other Businesses (35) (40) (37)
Total depreciation, depletion and amortization $ (973) $ (1,034) $ (897)
Capital additions1:
Steelmaking $ 778Ìý $ 997Ìý $ 787Ìý
Other Businesses 3Ìý 30Ìý 52Ìý
Corporate 4Ìý 6Ìý 18Ìý
Total capital additions $ 785Ìý $ 1,033Ìý $ 857Ìý
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
The following summarizes our assets by segment:
December 31,
(In millions) 2023 2022
Assets:
Steelmaking $ 16,880Ìý $ 18,070Ìý
Other Businesses 657Ìý 836Ìý
Intersegment eliminations (507) (521)
Total segment assets 17,030Ìý 18,385Ìý
Corporate/Eliminations 507Ìý 370Ìý
Total assets $ 17,537Ìý $ 18,755Ìý
Included in the consolidated financial statements are the following amounts relating to geographic location based on product destination:
(In millions) 2023 2022 2021
Revenues:
United States $ 20,000Ìý $ 20,991Ìý $ 18,881Ìý
Canada 1,046Ìý 963Ìý 803Ìý
Other countries 950Ìý 1,035Ìý 760Ìý
Total revenues $ 21,996Ìý $ 22,989Ìý $ 20,444Ìý
Property, plant and equipment, net:
United States $ 8,816Ìý $ 8,981Ìý $ 9,092Ìý
Canada 78Ìý 88Ìý 93Ìý
Other countries 1Ìý 1Ìý 1Ìý
Total property, plant and equipment, net $ 8,895Ìý $ 9,070Ìý $ 9,186Ìý