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Quarterly report pursuant to Section 13 or 15(d)

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

v3.23.2
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [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) 2023 2022
Allowance for credit losses as of January 1 $ (4) $ (4)
Decrease (increase) in allowance (3) 1Ìý
Allowance for credit losses as of June 30 $ (7) $ (3)
INVENTORIES
The following table presents the detail of our Inventories on the Statements of Unaudited Condensed Consolidated Financial Position:
(In millions) June 30,
2023		 December 31,
2022
Product inventories
Finished and semi-finished goods $ 2,765Ìý $ 2,971Ìý
Raw materials 1,582Ìý 1,794Ìý
Total product inventories 4,347Ìý 4,765Ìý
Manufacturing supplies and critical spares 380Ìý 365Ìý
Inventories $ 4,727Ìý $ 5,130Ìý
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 Cliffs 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 JuneÌý30, 2023 and DecemberÌý31, 2022, we had $23Ìýmillion and $19Ìýmillion, respectively, deemed as short-term financings that are classified in Other current liabilities. Additionally, as of JuneÌý30, 2023 and DecemberÌý31, 2022, we had $94Ìýmillion and $112Ìýmillion, respectively, classified as Accounts payable.
CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Six Months Ended
June 30,
(In millions) 2023 2022
Capital additions $ 290Ìý $ 489Ìý
Less:
Non-cash accruals (89) (2)
Right-of-use assets - finance leases 60Ìý 23Ìý
Cash paid for capital expenditures including deposits $ 319Ìý $ 468Ìý
Cash payments (receipts) for income taxes and interest are as follows:
Six Months Ended
June 30,
(In millions) 2023 2022
Income taxes paid $ 37Ìý $ 299Ìý
Income tax refunds (138) (1)
Interest paid on debt obligations net of capitalized interest1
142Ìý 133Ìý
1 Capitalized interest was $6 million and $5 million for the six months ended JuneÌý30, 2023 and 2022, respectively.