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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2019
Operating Segments [Abstract]  
SEGMENT REPORTING NOTE 3: SEGMENT REPORTING
3.1 Reportable segments
The Company is organized in five operating and reportable segments, which are components engaged in business activities from which they earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Company), for which discrete financial information is available and whose operating results are evaluated regularly by the chief operating decision maker “CODM” to make decisions about resources to be allocated to the segment and assess its performance. The Company's CODM is the CEO Office - comprising the Chairman and Chief Executive Officer, Mr. Lakshmi N. Mittal and the President and Chief Financial Officer of ArcelorMittal, Mr. Aditya Mittal.
These operating segments include the attributable goodwill, intangible assets, property, plant and equipment, and certain equity method investments. They do not include cash and short-term deposits, short-term investments, tax assets and other current financial assets. Attributable liabilities are also those resulting from the normal activities of the segment, excluding tax liabilities and indebtedness but including post retirement obligations where directly attributable to the segment. The treasury function is managed centrally for the Company and is not directly attributable to individual operating segments or geographical areas.
ArcelorMittal’s segments are structured as follows:
•
NAFTA represents the flat, long and tubular facilities of the Company located in North America (Canada, United States and Mexico). NAFTA produces flat products such as slabs, hot-rolled coil, cold-rolled coil, coated steel and plate. These products are sold primarily to customers in the following sectors: automotive, energy, construction, packaging and appliances and via distributors or processors. NAFTA also produces long products such as wire rod, sections, rebar, billets, blooms and wire drawing, and tubular products;
•
Brazil includes the flat operations of Brazil and the long and tubular operations of Brazil and neighboring countries including Argentina, Costa Rica and Venezuela. Flat products include slabs, hot-rolled coil, cold-rolled coil and coated steel. Long products consist of wire rod, sections, bar and rebar, billets, blooms and wire drawing;
•
Europe is the largest flat steel producer in Europe, with operations that range from Spain in the west to Romania in the east, and covering the flat carbon steel product portfolio in all major countries and markets. Europe produces hot-rolled coil, cold-rolled coil, coated products, tinplate, plate and slab. These products are sold primarily to customers in the automotive, general and packaging sectors. Europe also produces long products consisting of sections, wire rod, rebar, billets, blooms and wire drawing, and tubular products. In addition, it includes Downstream Solutions, primarily an in-house trading and distribution arm of ArcelorMittal. Downstream Solutions also provides value-added and customized steel solutions through further steel processing to meet specific customer requirements;
•
ACIS produces a combination of flat, long and tubular products. Its facilities are located in Africa, Ukraine and the Commonwealth of Independent States; and
•
Mining comprises all mines owned by ArcelorMittal in the Americas (Canada, United States, Mexico and Brazil), Asia (Kazakhstan), Europe (Ukraine and Bosnia & Herzegovina) and Africa (Liberia). It provides the Company's steel operations with high quality and low-cost iron ore and coal reserves and also sells limited amounts of mineral products to third parties.
The following table summarizes certain financial data for ArcelorMittal’s operations by reportable segments.

NAFTA
 
Brazil
 
Europe
 
ACIS
 
Mining
 
Others 1
 
Elimination
 
Total
Year ended December 31, 2019


 


 


 


 


 


 


 


Sales to external customers
18,478

 
6,927

 
37,487

 
6,487

 
1,165

 
71

 
—

 
70,615

Intersegment sales 2
77

 
1,186

 
234

 
350

 
3,672

 
353

 
(5,872
)
 
—

Operating income (loss)
(1,259
)
 
846

 
(1,107
)
 
(25
)
 
1,215

 
(295
)
 
(2
)
 
(627
)
Depreciation and amortization
(570
)
 
(274
)
 
(1,256
)
 
(364
)
 
(448
)
 
(155
)
 
—

 
(3,067
)
Impairment
(1,300
)
 
—

 
(525
)
 
(102
)
 
—

 
—

 
—

 
(1,927
)
Capital expenditures
727

 
328

 
1,353

 
513

 
480

 
171

 
—

 
3,572

Year ended December 31, 2018


 


 


 


 


 


 


 


Sales to external customers
20,145

 
7,041

 
40,247

 
7,506

 
1,009

 
85

 
—

 
76,033

Intersegment sales 2
187

 
1,670

 
241

 
455

 
3,202

 
307

 
(6,062
)
 
—

Operating income (loss)
1,889

 
1,356

 
1,632

 
1,094

 
860

 
(247
)
 
(45
)
 
6,539

Depreciation and amortization
(522
)
 
(298
)
 
(1,195
)
 
(311
)
 
(418
)
 
(55
)
 
—

 
(2,799
)
Bargain purchase gain3
—

—

—

 
209

 
—

 
—

 
—

 
—

 
209

Impairment
—

 
(86
)
 
(908
)
 
—

 
—

 
—

 
—

 
(994
)
Capital expenditures
669

 
244

 
1,336

 
534

 
485

 
37

 
—

 
3,305

Year ended December 31, 2017


 


 


 


 


 


 


 


Sales to external customers
17,893

 
6,571

 
35,825

 
7,323

 
985

 
82

 
—

 
68,679

Intersegment sales 2
104

 
1,184

 
383

 
298

 
3,048

 
303

 
(5,320
)
 
—

Operating income (loss)
1,185

 
697

 
2,359

 
508

 
991

 
(288
)
 
(18
)
 
5,434

Depreciation and amortization
(518
)
 
(293
)
 
(1,201
)
 
(313
)
 
(416
)
 
(27
)
 
—

 
(2,768
)
Impairment
—

 
—

 
—

 
(206
)
 
—

 
—

 
—

 
(206
)
Capital expenditures
466

 
263

 
1,143

 
427

 
495

 
25

 
—

 
2,819

1. Others include all other operational and non-operational items which are not segmented, such as corporate and shared services, financial activities, and shipping and logistics.
2. Transactions between segments are reported on the same basis of accounting as transactions with third parties except for certain mining products shipped internally and reported on a cost plus basis.
3. See note 2.2.4.

The reconciliation from operating income to net income (including non-controlling interests) is as follows:

Year ended December 31,

2019
 
2018
 
2017
Operating (loss)/income
(627
)
 
6,539

 
5,434

Income from investments in associates and joint ventures
347

 
652

 
448

Financing costs - net
(1,652
)
 
(2,210
)
 
(875
)
(Loss) income before taxes
(1,932
)
 
4,981

 
5,007

Income tax expense (benefit)
459

 
(349
)
 
432

Net (loss) income (including non-controlling interests)
(2,391
)
 
5,330

 
4,575


The Company does not regularly provide a measure of total assets and liabilities for each reportable segment to the CODM.
3.2 Geographical information
Geographical information, by country or region, is separately disclosed and represents ArcelorMittal’s most significant regional markets. Attributed assets are operational assets employed in each region and include items such as pension balances that are specific to a country. Unless otherwise stated in the table heading as a segment disclosure, these disclosures are specific to the country or region stated. They do not include goodwill, deferred tax assets, other investments or receivables and other non-current financial assets. Attributed liabilities are those arising within each region, excluding indebtedness.
Sales (by destination)
 
Year ended December 31,
 
2019
 
2018
 
2017
Americas
 
 
 
 
 
United States
15,238

 
16,271

 
14,367

Brazil
5,094

 
4,982

 
4,149

Canada
3,004

 
3,563

 
3,034

Mexico
1,941

 
1,970

 
2,251

Argentina
814

 
960

 
1,230

Others
1,195

 
1,322

 
1,005

Total Americas
27,286

 
29,068

 
26,036

 
 
 
 
 
 
Europe
 

 
 

 
 

Germany
5,694

 
6,757

 
5,933

Poland
3,957

 
4,518

 
3,746

France
4,114

 
4,431

 
4,051

Spain
3,855

 
4,265

 
3,751

Italy
4,317

 
3,333

 
2,711

Czech Republic
1,244

 
1,782

 
1,400

Turkey
1,499

 
1,683

 
1,937

United Kingdom
1,434

 
1,471

 
1,370

Belgium
1,617

 
1,309

 
1,129

Netherlands
1,142

 
1,209

 
1,117

Russia
876

 
1,144

 
1,204

Romania
720

 
708

 
621

Others
4,899

 
5,653

 
4,948

Total Europe
35,368

 
38,263

 
33,918

 
 
 
 
 
 
Asia & Africa
 
 
 
 
 
South Africa
2,260

 
2,742

 
2,560

Morocco
583

 
628

 
596

Egypt
309

 
206

 
310

Rest of Africa
1,278

 
1,257

 
1,033

China
676

 
608

 
622

Kazakhstan
470

 
496

 
392

South Korea
380

 
365

 
259

India
95

 
92

 
163

Rest of Asia
1,910

 
2,308

 
2,790

Total Asia & Africa
7,961

 
8,702

 
8,725

 
 
 
 
 
 
Total
70,615

 
76,033

 
68,679


Revenues from external customers attributed to the country of domicile (Luxembourg) were 151, 162 and 111 for the years ended December 31, 2019, 2018 and 2017, respectively.
Non-current assets1 per significant country:
 
December 31,
 
2019

2018
Americas
 

 
Canada
5,336


5,187

Brazil
4,254


4,259

United States
2,878


4,022

Mexico
1,408


1,163

Argentina
266


252

Venezuela
17


10

Others
16


19

Total Americas
14,175


14,912





Europe



France
4,293


4,363

Germany
2,665


2,607

Belgium2
2,695


2,526

Poland
2,508


2,356

Ukraine
2,674


2,219

Spain
1,920


1,971

Italy
1,488


1,365

Luxembourg
1,231


1,229

Bosnia and Herzegovina
188


205

Romania2
62


86

Czech Republic2
31


24

Others
165


235

Total Europe
19,920


19,186





Asia & Africa



Kazakhstan
1,519


1,309

South Africa
568


625

Liberia
157


148

Morocco
92


93

Others
128


107

Total Asia & Africa
2,464


2,282





Unallocated assets
22,733


22,394

Total
59,292


58,774

1.
Non-current assets do not include goodwill (as it is not allocated to the individual countries), deferred tax assets, investments in associates and joint ventures, other investments and other non-current financial assets. Such assets are presented under the caption “Unallocated assets”.
2.
ArcelorMittal Ostrava, ArcelorMittal Galati and certain assets of ArcelorMittal Belgium were classified as held for sale at December 31, 2018 and sold in 2019 (see note 2.3.1 and 2.3.2).
3.3 Sales by type of products
The table below presents sales to external customers by product type. In addition to steel produced by the Company, amounts include material purchased for additional transformation and sold through distribution services. Others mainly include non-steel and by-products sales, manufactured and specialty steel products sales, shipping and other services.
 
Year ended December 31,
 
2019
 
2018
 
2017
Flat products
43,633

 
46,734

 
43,065

Long products
13,706

 
15,751

 
13,685

Tubular products
2,044

 
2,158

 
1,810

Mining products
1,165

 
1,009

 
985

Others
10,067

 
10,380

 
9,134

Total
70,615

 
76,033

 
68,679


3.4 Disaggregated revenue

Disaggregated revenue
The tables below summarize the disaggregated revenue recognized from contracts with customers:
Year ended December 31, 2019
NAFTA 
 
Brazil
 
Europe
 
ACIS
 
Mining
 
Others
 
Total
Steel sales
17,669

 
6,467

 
33,759

 
5,789

 
—

 
—

 
63,684

Non-steel sales 1
122

 
66

 
1,130

 
239

 
1,117

 
—

 
2,674

By-product sales 2
114

 
93

 
816

 
135

 
—

 
—

 
1,158

Other sales 3
573

 
301

 
1,782

 
324

 
48

 
71

 
3,099

Total
18,478

 
6,927

 
37,487

 
6,487

 
1,165

 
71

 
70,615

Year ended December 31, 2018
NAFTA
 
Brazil
 
Europe
 
ACIS
 
Mining
 
Others
 
Total
Steel sales
19,372

 
6,582

 
36,603

 
6,748

 
—

 
—

 
69,305

Non-steel sales 1
148

 
31

 
882

 
243

 
968

 
—

 
2,272

By-product sales 2
124

 
115

 
947

 
182

 
—

 
—

 
1,368

Other sales 3
501

 
313

 
1,815

 
333

 
41

 
85

 
3,088

Total
20,145

 
7,041

 
40,247

 
7,506

 
1,009

 
85

 
76,033

Year ended December 31, 2017
NAFTA
 
Brazil
 
Europe
 
ACIS
 
Mining
 
Others
 
Total
Steel sales
17,210

 
6,128

 
32,676

 
6,661

 
—

 
—

 
62,675

Non-steel sales 1
121

 
77

 
817

 
188

 
947

 
—

 
2,150

By-product sales 2
98

 
89

 
683

 
159

 
—

 
—

 
1,029

Other sales 3
464

 
277

 
1,649

 
315

 
38

 
82

 
2,825

Total
17,893

 
6,571

 
35,825

 
7,323

 
985

 
82

 
68,679

1.Non-steel sales mainly relate to iron ore, coal, scrap and electricity;
2.By-product sales mainly relate to slag, waste and coke by-products;
3.Other sales are mainly comprised of shipping and other services.