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Revenues
ÌýÌýÌýÌýThe following table represents our consolidated Revenues (excluding intercompany revenues) by market:
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(In Millions) |
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2020 |
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2019 |
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2020 |
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2019 |
| Steel and Manufacturing: |
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| Automotive |
$ |
920.0Ìý
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$ |
—Ìý |
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$ |
1,404.0Ìý
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$ |
—Ìý |
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| Infrastructure and manufacturing |
198.8Ìý
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—Ìý |
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446.2Ìý
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—Ìý |
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| Distributors and converters |
142.9Ìý
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—Ìý |
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344.1Ìý
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—Ìý |
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| Total Steel and Manufacturing |
1,261.7Ìý
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—Ìý |
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2,194.3Ìý
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—Ìý |
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| Mining and Pelletizing: |
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Steel producers1
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384.3Ìý
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555.6Ìý |
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903.5Ìý
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1,455.8Ìý |
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| Total revenues |
$ |
1,646.0Ìý
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$ |
555.6Ìý |
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$ |
3,097.8Ìý
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$ |
1,455.8Ìý |
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1 Includes Realization of deferred revenue of $34.6 million for the nine months ended SeptemberÌý30, 2020.
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ÌýÌýÌýÌýThe following table represents our consolidated Revenues (excluding intercompany revenues) by product line:
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(In Millions) |
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2020 |
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2019 |
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2020 |
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2019 |
| Steel and Manufacturing: |
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| Carbon steel |
$ |
821.2Ìý
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$ |
—Ìý |
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$ |
1,391.6Ìý
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$ |
—Ìý |
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| Stainless and electrical steel |
303.2Ìý
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—Ìý |
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585.1Ìý
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—Ìý |
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| Tubular products, components and other |
137.3Ìý
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—Ìý |
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217.6Ìý
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—Ìý |
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| Total Steel and Manufacturing |
1,261.7Ìý
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—Ìý |
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2,194.3Ìý
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—Ìý |
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| Mining and Pelletizing: |
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Iron ore1
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357.1Ìý
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515.0Ìý |
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838.1Ìý
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1,357.8Ìý |
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| Freight |
27.2Ìý
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40.6Ìý |
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65.4Ìý
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98.0Ìý |
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| Total Mining and Pelletizing |
384.3Ìý
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555.6Ìý |
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903.5Ìý
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1,455.8Ìý |
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| Total revenues |
$ |
1,646.0Ìý
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$ |
555.6Ìý |
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$ |
3,097.8Ìý
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$ |
1,455.8Ìý |
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1 Includes Realization of deferred revenue of $34.6 million for the nine months ended SeptemberÌý30, 2020.
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ÌýÌýÌýÌýWe sell to customers located primarily in the United States and to foreign customers, primarily in Canada, Mexico and Western Europe. Net revenues to customers located outside the United States were $265.0 million and $487.7 million for the three and nine months ended SeptemberÌý30, 2020, respectively, and $138.9 million and $318.3 million for the three and nine months ended SeptemberÌý30, 2019, respectively.
Allowance for Credit Losses
ÌýÌýÌýÌýThe following is a roll forward of our allowance for credit losses associated with Accounts receivable, net:
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(In Millions) |
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2020 |
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2019 |
| Allowance for credit losses as of January 1 |
$ |
—Ìý
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$ |
—Ìý |
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| Increase in allowance |
5.2Ìý
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—Ìý |
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| Allowance for credit losses as of September 30 |
$ |
5.2Ìý
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$ |
—Ìý |
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Inventories
ÌýÌýÌýÌýThe following table presents the detail of our Inventories in the Statements of Unaudited Condensed Consolidated Financial Position:
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(In Millions) |
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September 30,
2020 |
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December 31,
2019 |
| Product inventories |
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| Finished and semi-finished goods |
$ |
940.5Ìý
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$ |
114.1Ìý |
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| Work-in-process |
78.2Ìý
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68.7Ìý |
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| Raw materials |
382.3Ìý
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9.4Ìý |
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| Total product inventories |
1,401.0Ìý
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192.2Ìý |
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| Manufacturing supplies and critical spares |
394.1Ìý
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125.2Ìý |
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| Inventories |
$ |
1,795.1Ìý
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$ |
317.4Ìý |
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Deferred Revenue
ÌýÌýÌýÌýThe table below summarizes our deferred revenue balances:
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(In Millions) |
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Deferred Revenue (Current) |
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Deferred Revenue (Long-Term) |
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2020 |
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2019 |
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2020 |
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2019 |
| Opening balance as of January 1 |
$ |
22.1Ìý
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$ |
21.0Ìý |
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$ |
25.7Ìý
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$ |
38.5Ìý |
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| Net decrease |
(19.8) |
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(2.7) |
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(25.7) |
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(8.5) |
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| Closing balance as of September 30 |
$ |
2.3Ìý
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$ |
18.3Ìý |
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$ |
—Ìý
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$ |
30.0Ìý |
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ÌýÌýÌýÌýPrior 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 nine months ended SeptemberÌý30, 2020.
ÌýÌýÌýÌýWe 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
ÌýÌýÌýÌýThe following table presents the detail of our Accrued liabilities in the Statements of Unaudited Condensed Consolidated Financial Position:
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(In Millions) |
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September 30,
2020 |
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December 31, 2019 |
| Accrued employment costs |
$ |
146.6Ìý
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$ |
61.7Ìý |
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| Accrued interest |
81.8Ìý
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29.0Ìý |
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| Accrued dividends |
1.0Ìý
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17.8Ìý |
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| Other |
50.0Ìý
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17.8Ìý |
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| Accrued liabilities |
$ |
279.4Ìý
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$ |
126.3Ìý |
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Cash Flow Information
ÌýÌýÌýÌýA reconciliation of capital additions to cash paid for capital expenditures is as follows:
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(In Millions) |
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Nine Months Ended
September 30, |
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2020 |
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2019 |
| Capital additions |
$ |
333.0Ìý
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$ |
505.6Ìý |
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| Less: |
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| Non-cash accruals |
(88.4) |
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26.1Ìý |
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| Right-of-use assets - finance leases |
42.5Ìý
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29.3Ìý |
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| Grants |
—Ìý
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(10.5) |
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| Cash paid for capital expenditures including deposits |
$ |
378.9Ìý
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$ |
460.7Ìý |
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ÌýÌýÌýÌýCash payments (receipts) for income taxes and interest are as follows:
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(In Millions) |
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Nine Months Ended
September 30, |
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2020 |
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2019 |
| Taxes paid on income |
$ |
3.2Ìý
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$ |
0.1Ìý |
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| Income tax refunds |
(119.3) |
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(117.9) |
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Interest paid on debt obligations net of capitalized interest1
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106.0Ìý
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71.9Ìý |
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1 Capitalized interest was $38.0 million and $16.9 million for the nine months ended SeptemberÌý30, 2020 and 2019, respectively.
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ÌýÌýÌýÌýNon-Cash Investing and Financing Activities
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(In Millions) |
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Nine Months Ended
September 30, |
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2020 |
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2019 |
| Fair value of common shares issued for consideration for business combination |
$ |
617.6Ìý
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$ |
—Ìý |
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| Fair value of equity awards assumed from AK Steel acquisition |
3.9Ìý
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—Ìý |
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