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Quarterly report pursuant to Section 13 or 15(d)

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Notes)

v3.20.2
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Notes)
 6 Months Ended
Jun. 30, 2020
Disclosure Text Block [Abstract] Ìý
Supplementary Financial Statement Information
Revenues
The following table represents our consolidated Revenues (excluding intercompany revenues) by market:
Ìý
(In Millions)
Ìý
Three Months Ended
June 30,
Ìý
Six Months Ended
June 30,
Ìý
2020
Ìý
2019
Ìý
2020
Ìý
2019
Steel and Manufacturing:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Automotive
$
363.8

Ìý
$
—

Ìý
$
484.0

Ìý
$
—

Infrastructure and manufacturing
203.4

Ìý
—

Ìý
247.4

Ìý
—

Distributors and converters
147.9

Ìý
—

Ìý
201.2

Ìý
—

Total Steel and Manufacturing
715.1

Ìý
—

Ìý
932.6

Ìý
—

Mining and Pelletizing:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Steel producers1
377.6

Ìý
743.2

Ìý
519.2

Ìý
900.2

Total revenues
$
1,092.7

Ìý
$
743.2

Ìý
$
1,451.8

Ìý
$
900.2

1 Includes Realization of deferred revenue of $34.6 million for the six months ended JuneÌý30, 2020.
The following table represents our consolidated Revenues (excluding intercompany revenues) by product line:
Ìý
(In Millions)
Ìý
Three Months Ended
June 30,
Ìý
Six Months Ended
June 30,
Ìý
2020
Ìý
2019
Ìý
2020
Ìý
2019
Steel and Manufacturing:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Carbon steel
$
431.8

Ìý
$
—

Ìý
$
570.4

Ìý
$
—

Stainless and electrical steel
222.5

Ìý
—

Ìý
281.9

Ìý
—

Tubular products, components and other
60.8

Ìý
—

Ìý
80.3

Ìý
—

Total Steel and Manufacturing
715.1

Ìý
—

Ìý
932.6

Ìý
—

Mining and Pelletizing:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Iron ore1
349.7

Ìý
697.4

Ìý
481.0

Ìý
842.8

Freight
27.9

Ìý
45.8

Ìý
38.2

Ìý
57.4

Total Mining and Pelletizing
377.6

Ìý
743.2

Ìý
519.2

Ìý
900.2

Total revenues
$
1,092.7

Ìý
$
743.2

Ìý
$
1,451.8

Ìý
$
900.2

1 Includes Realization of deferred revenue of $34.6 million for the six months ended JuneÌý30, 2020.
We sell domestically to customers located primarily in the Midwestern, Southern and Eastern United States and to foreign customers, primarily in Canada, Mexico and Western Europe. Net revenues to customers located outside the United States were $176.0 million and $222.7 million for the three and six months ended JuneÌý30, 2020, respectively, and $136.4 million and $179.4 million for the three and six months ended JuneÌý30, 2019, respectively.
Allowance for Credit Losses
The following is a roll forward of our allowance for credit losses associated with Accounts receivable, net:
Ìý
(In Millions)
Ìý
2020
Ìý
2019
Allowance for credit losses as of January 1
$
—

Ìý
$
—

Increase in allowance
4.3

Ìý
—

Allowance for credit losses as of June 30
$
4.3

Ìý
$
—


Inventories
The following table presents the detail of our Inventories in the Statements of Unaudited Condensed Consolidated Financial Position:
Ìý
(In Millions)
Ìý
JuneÌý30,
2020
Ìý
DecemberÌý31,
2019
Product inventories
Ìý
Ìý
Ìý
Finished and semi-finished goods
$
1,026.4

Ìý
$
114.1

Work-in-process
89.5

Ìý
68.7

Raw materials
438.0

Ìý
9.4

Total product inventories
1,553.9

Ìý
192.2

Manufacturing supplies and critical spares
379.7

Ìý
125.2

Inventories
$
1,933.6

Ìý
$
317.4


Deferred Revenue
The table below summarizes our deferred revenue balances:
Ìý
(In Millions)
Ìý
Deferred Revenue (Current)
Ìý
Deferred Revenue (Long-Term)
Ìý
2020
Ìý
2019
Ìý
2020
Ìý
2019
Opening balance as of January 1
$
22.1

Ìý
$
21.0

Ìý
$
25.7

Ìý
$
38.5

Net decrease
(17.2
)
Ìý
(5.5
)
Ìý
(25.7
)
Ìý
(4.2
)
Closing balance as of June 30
$
4.9

Ìý
$
15.5

Ìý
$
—

Ìý
$
34.3


Prior to the Merger, our iron ore pellet sales agreement with Severstal, subsequently assumed by AK Steel, required supplemental payments to be paid by the customer during the period 2009 through 2013. Installment amounts received under this arrangement in excess of sales were classified as deferred revenue in theÌýStatements of Consolidated Financial PositionÌýupon receipt of payment and the revenue was recognized over the term of the supply agreement, which had extended until 2022, in equal annual installments. As a result of the termination of that iron ore pellet sales agreement, we realized $34.6 million of deferred revenue, which was recognized within Realization of deferred revenue in the Statements of Unaudited Condensed Consolidated Operations, during the six months ended JuneÌý30, 2020.
We have certain other sales agreements that require customers to pay in advance. Payments received pursuant to these agreements prior to revenue being recognized are recorded as deferred revenue in Other current liabilities.
Accrued Liabilities
The following table presents the detail of our Accrued liabilities in the Statements of Unaudited Condensed Consolidated Financial Position:
Ìý
(In Millions)
Ìý
JuneÌý30,
2020
Ìý
DecemberÌý31, 2019
Accrued employment costs
$
153.8

Ìý
$
61.7

Accrued interest
71.5

Ìý
29.0

Accrued dividends
1.1

Ìý
17.8

Other
61.9

Ìý
17.8

Accrued liabilities
$
288.3

Ìý
$
126.3


Cash Flow Information
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Ìý
(In Millions)
Ìý
Six Months Ended
June 30,
Ìý
2020
Ìý
2019
Capital additions
$
230.7

Ìý
$
320.9

Less:
Ìý
Ìý
Ìý
Non-cash accruals
(91.6
)
Ìý
3.6

Right-of-use assets - finance leases
39.4

Ìý
24.8

Grants
—

Ìý
(8.4
)
Cash paid for capital expenditures including deposits
$
282.9

Ìý
$
300.9

Cash payments (receipts) for income taxes and interest are as follows:
Ìý
(In Millions)
Ìý
Six Months Ended
June 30,
Ìý
2020
Ìý
2019
Taxes paid on income
$
0.2

Ìý
$
0.1

Income tax refunds
(60.4
)
Ìý
(117.9
)
Interest paid on debt obligations net of capitalized interest1
63.0

Ìý
53.2

1 Capitalized interest was $23.3 million and $9.9 million for the six months ended JuneÌý30, 2020 and 2019, respectively.
Non-Cash Investing and Financing Activities
Ìý
(In Millions)
Ìý
Six Months Ended
June 30,
Ìý
2020
Ìý
2019
Fair value of common shares issued for consideration for business combination
$
617.6

Ìý
$
—

Fair value of equity awards assumed from AK Steel acquisition
3.9

Ìý
—