REVENUES

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

We generate our revenue through product sales, in which shipping terms generally indicate when we have fulfilled our performance obligations and transferred control of products to our customer. Our revenue transactions consist of a single performance obligation to transfer promised goods. Our contracts with customers usually define the mechanism for determining the sales price, which is generally fixed upon transfer of control, but the contracts generally do not impose a specific quantity on either party. Quantities to be delivered to the customer are generally determined at a point near the date of delivery through purchase orders or other written instructions we receive from the customer. Spot market sales are made through purchase orders or other written instructions. We consider our performance obligation to be complete and recognize revenue when control transfers in accordance with shipping terms.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring product. We reduce the amount of revenue recognized for estimated returns and other customer credits, such as discounts and volume rebates, based on the expected value to be realized. Payment terms are consistent with terms standard to the markets we serve. Sales taxes collected from customers are excluded from revenues.

Prior to the AM USA Transaction, we had a supply agreement with ArcelorMittal USA, which included supplemental revenue or refunds based on the HRC price in the year the iron ore was consumed in ArcelorMittal USA's blast furnaces. As control transferred prior to consumption, the supplemental revenue was recorded in accordance with Topic 815. All sales occurring subsequent to the AM USA Transaction are intercompany and eliminated in consolidation. Included within Revenues related to Topic 815 for the supplemental revenue portion of the supply agreement is derivative revenue of $122 million, $78 million and $426 million for the years ended December 31, 2020, 2019 and 2018, respectively.

The following table represents our Revenues by market:

	(In Millions)
	Year Ended December 31,
	2020		2019		2018
Steelmaking:
Automotive	$	2,062	$	—	$	—
Infrastructure and manufacturing	784		—		—
Distributors and converters	696		—		—
Steel producers1	1,423		1,990		2,332
Total steelmaking	4,965		1,990		2,332
Other Businesses:
Automotive	329		—		—
Infrastructure and manufacturing	34		—		—
Distributors and converters	26		—		—
Total Other Businesses	389		—		—
Total revenues	$	5,354	$	1,990	$	2,332
1 Includes Realization of deferred revenue of $35 million for the year ended December 31, 2020.

The following table represents our consolidated Revenues by product line:

	(Dollars In Millions, Sales Volumes in Thousands)
	Year Ended December 31,
	2020			2019			2018
	Revenue		Volume1	Revenue		Volume1	Revenue		Volume1
Steelmaking:
Hot-rolled steel	$	386	633	$	—	—	$	—	—
Cold-rolled steel	490		682	—		—	—		—
Coated steel	1,747		1,911	—		—	—		—
Stainless and electrical steel	868		416	—		—	—		—
Other steel products	92		141	—		—	—		—
Iron products2	1,335		11,707	1,990		18,583	2,332		20,563
Other	47		N/A	—		—	—		—
Total steelmaking	4,965			1,990			2,332
Other Businesses:
Other	389		N/A	—		N/A	—		N/A
Total revenues	$	5,354		$	1,990		$	2,332
1 Carbon steel products, stainless and electrical steel and plate steel volumes are stated in net tons. Iron product volumes are stated in long tons.
2 Includes Realization of deferred revenue of $35 million for the year ended December 31, 2020.

Deferred Revenue

The table below summarizes our deferred revenue balances:

	(In Millions)
	Deferred Revenue (Current)				Deferred Revenue (Long-Term)
	2020		2019		2020		2019
Opening balance as of January 1	$	22	$	21	$	26	$	39
Net increase (decrease)	(15)		1		(26)		(13)
Closing balance as of December 31	$	7	$	22	$	—	$	26

Prior to the AK Steel Merger, our iron ore pellet sales agreement with Severstal Dearborn, LLC, subsequently assumed by AK Steel, required supplemental payments to be paid by the customer during the period from 2009 through 2013. Installment amounts received under this arrangement in excess of sales were classified as deferred revenue in the Statements of Consolidated Financial Position upon 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 $35 million of deferred revenue, which was recognized within Realization of deferred revenue in the Statements of Consolidated Operations during the year ended December 31, 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.