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Annual report [Section 13 and 15(d), not S-K Item 405]

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

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SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Dec. 31, 2024
Disclosure Text Block [Abstract] Ìý
Supplementary Financial Statement Information
NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
INVENTORIES
The following table presents the detail of our Inventories on the Statements of Consolidated Financial Position:
December 31,
(In millions) 2024 2023
Product inventories
Finished and semi-finished goods $ 2,393Ìý $ 2,573Ìý
Raw materials 2,208Ìý 1,476Ìý
Total product inventories 4,601Ìý 4,049Ìý
Manufacturing supplies and critical spares 493Ìý 411Ìý
Inventories $ 5,094Ìý $ 4,460Ìý
The excess of current cost over LIFO cost of iron ore inventories was $142Ìýmillion and $131Ìýmillion at DecemberÌý31, 2024 and 2023, respectively. As of DecemberÌý31, 2024, the product inventory balance for iron ore inventories increased, resulting in a LIFO increment in 2024. The effect of the inventory build was an increase in Inventories of $64Ìýmillion on the Statements of Consolidated Financial Position for the year ended DecemberÌý31, 2024. As of DecemberÌý31, 2023, the product inventory balance for iron ore inventories increased, resulting in a LIFO increment in 2023. The effect of the inventory build was an increase in Inventories of $21Ìýmillion on the Statements of Consolidated Financial Position for the year ended DecemberÌý31, 2023.
SUPPLY CHAIN FINANCE PROGRAMS
We negotiate payment terms directly with our suppliers for the purchase of goods and services. We currently offer voluntary supply chain finance programs that enable our suppliers to sell their Company receivables to financial intermediaries, at the sole discretion of both the suppliers and financial intermediaries. No guarantees are provided by us or our subsidiaries under the supply chain finance programs. The supply chain finance programs allow our suppliers to be paid by the financial intermediaries earlier than the due date on the applicable invoice. Supply chain finance programs that extend terms or provide us an economic benefit are classified as short-term financings. As of DecemberÌý31, 2024 and 2023, we had $29Ìýmillion and $21Ìýmillion, respectively, deemed as short-term financings that are classified in Other current liabilities. Additionally, as of DecemberÌý31, 2024 and 2023, we had $76Ìýmillion and $91Ìýmillion, respectively, classified as Accounts payable.
The following is a roll-forward of our obligations related to supply chain finance programs classified in Other current liabilities:
(In millions) 2024
Supply chain finance obligations as of January 1 $ 21Ìý
Invoices confirmed during the year 230Ìý
Confirmed invoices paid during the year (222)
Supply chain finance obligations as of December 31 $ 29Ìý
The following is a roll-forward of our obligations related to supply chain finance programs classified in Accounts payable:
(In millions) 2024
Supply chain finance obligations as of January 1 $ 91Ìý
Invoices confirmed during the year 375Ìý
Confirmed invoices paid during the year (390)
Supply chain finance obligations as of December 31 $ 76Ìý
WEIRTON INDEFINITE IDLE
On February 15, 2024, we announced the indefinite idle of our tinplate production plant located in Weirton, West Virginia. As of DecemberÌý31, 2024, we have incurred $210Ìýmillion of charges related to the idle and estimate that we will incur nominal future charges to Restructuring and other charges.
The following table represents a reconciliation of our accrued liabilities related to the Weirton indefinite idle:
(In millions) Employee-Related Costs Exit Costs Asset Impairment Total
Balance as of December 31, 2023 $ —Ìý $ —Ìý $ —Ìý $ —Ìý
Costs incurred1
82Ìý 49Ìý 79Ìý 210
Cash payments (26) (34) —Ìý (60)
Non-cash —Ìý —Ìý (79) (79)
Balance as of December 31, 2024 $ 56Ìý $ 15Ìý $ —Ìý $ 71Ìý
1 Of the $210Ìýmillion of cost incurred, $129Ìýmillion was recorded in Restructuring and other charges, $79Ìýmillion was recorded in Asset impairments and $2Ìýmillion was recorded in Net periodic benefit credits other than service cost component.
SALE OF BUSINESS
On October 6, 2023, we entered into a membership interest purchase agreement for the sale of the legal entities owning, among other things, our closed coal mines in Pennsylvania. As a result of the sale, we recorded a gain of $63Ìýmillion classified in Miscellaneous – net in the Statements of Consolidated Operations and as Other in operating activities on the Statements of Consolidated Cash Flows for the year ended DecemberÌý31, 2023. As part of this transaction, we received $35Ìýmillion in proceeds related to the sale that is classified as Other investing activities on the Statements of Consolidated Cash Flows.
CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Year Ended December 31,
(In millions) 2024 2023 2022
Capital additions $ 817Ìý $ 785Ìý $ 1,033Ìý
Less:
Non-cash accruals (47) (13) 35Ìý
Equipment financed with seller 72Ìý 59Ìý —Ìý
Right-of-use assets - finance leases 97Ìý 93Ìý 55Ìý
Cash paid for capital expenditures including deposits $ 695Ìý $ 646Ìý $ 943Ìý
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, 2024, 2023 and 2022, grant reimbursements were $8Ìýmillion, $13Ìýmillion and $27Ìýmillion, respectively.
Cash payments (receipts) for interest and income taxes are as follows:
Year Ended December 31,
(In millions) 2024 2023 2022
Income taxes paid $ 17Ìý $ 94Ìý $ 334Ìý
Income tax refunds (47) (205) (3)
Interest paid on debt obligations net of capitalized interest1
255Ìý 256Ìý 249Ìý
1 Capitalized interest was $15 million, $12 million and $9 million for the years ended DecemberÌý31, 2024, 2023 and 2022, respectively.
Other non-cash investing and financing activities are as follows:
Year Ended December 31,
(In millions) 2024 2023 2022
Fair value of common shares issued as part of consideration in connection with the Stelco Acquisition $ 343Ìý $ —Ìý $ —Ìý
1.500% 2025 Convertible Senior Notes redemption —Ìý —Ìý 25Ìý