Transactions with Related Parties |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | 21. Transactions with Related Parties Net sales to related parties and receivables from related parties primarily reflect sales of raw materials and steel products to equity investees. Generally, transactions are conducted under long-term contractual arrangements. Related party sales and service transactions were $367 million and $378 million for the three months ended September 30, 2019 and 2018, respectively and $1,112 million and $1,072 million for the nine months ended September 30, 2019 and 2018, respectively. Purchases from related parties for outside processing services provided by equity investees amounted to $7 million and $8 million for the three months ended September 30, 2019 and 2018, respectively and $23 million for both the nine months ended September 30, 2019 and 2018. Purchases of iron ore pellets from related parties amounted to $27 million and $23 million for the three months ended September 30, 2019 and 2018, respectively, and $78 million and $66 million for the nine months ended September 30, 2019 and 2018, respectively. Accounts payable to related parties include balances due to PRO-TEC Coating Company, LLC (PRO-TEC) of $109 million and $80 million at September 30, 2019 and December 31, 2018, respectively for invoicing and receivables collection services provided by U. S. Steel on PRO-TEC's behalf. U. S. Steel, as PRO-TEC’s exclusive sales agent, is responsible for credit risk related to those receivables. U. S. Steel also provides PRO-TEC marketing, selling and customer service functions. Payables to other related parties totaled $2 million and $1 million at September 30, 2019 and December 31, 2018, respectively.
|