SEGMENT REPORTING

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

We are vertically integrated from the mining of iron ore and coal; to production of metallics and coke; through iron making, steelmaking, rolling, finishing; and to downstream tubing, stamping and tooling. We are organized into four operating segments based on our differentiated products - Steelmaking, Tubular, Tooling and Stamping, and European Operations. Our previous Mining and Pelletizing segment is included within the Steelmaking operating segment as iron ore pellets are a primary raw material for our steel products. We have one reportable segment - Steelmaking. The operating segment results of our Tubular, Tooling and Stamping, and European Operations that do not constitute reportable segments are combined and disclosed in the Other Businesses category. Our Steelmaking

segment is the largest flat-rolled steel producer supported by being the largest iron ore pellet producer in North America, primarily serving the automotive, infrastructure and manufacturing, and distributors and converters markets. Our Other Businesses primarily include the operating segments that provide customer solutions with carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components, and complex assemblies. All intersegment transactions were eliminated in consolidation.

We evaluate performance on an operating segment basis, as well as a consolidated basis, based on Adjusted EBITDA, which is a non-GAAP measure. This measure is used by management, investors, lenders and other external users of our financial statements to assess our operating performance and to compare operating performance to other companies in the steel industry. In addition, management believes Adjusted EBITDA is a useful measure to assess the earnings power of the business without the impact of capital structure and can be used to assess our ability to service debt and fund future capital expenditures in the business.

Our results by segment are as follows:

	(In Millions)
	Year Ended December 31,
	2020		2019		2018
Revenues:
Steelmaking1	$	4,965	$	1,990	$	2,332
Other Businesses	389		—		—
Total revenues	$	5,354	$	1,990	$	2,332
Adjusted EBITDA:
Steelmaking	$	433	$	636	$	872
Other Businesses	47		—		—
Corporate and eliminations	(127)		(111)		(106)
Total Adjusted EBITDA	$	353	$	525	$	766
1 Includes Realization of deferred revenue of $35 million for the year ended December 31, 2020.

The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:

	(In Millions)
	Year Ended December 31,
	2020		2019		2018
Net income (loss)	$	(81)	$	293	$	1,128
Less:
Interest expense, net	(238)		(101)		(121)
Income tax benefit (expense)	111		(18)		460
Depreciation, depletion and amortization	(308)		(85)		(89)
	354		497		878
Less:
EBITDA from noncontrolling interests1	56		—		—
Gain (loss) on extinguishment of debt	130		(18)		(7)
Severance costs	(38)		(2)		—
Acquisition-related costs excluding severance costs	(52)		(7)		—
Amortization of inventory step-up	(96)		—		—
Impact of discontinued operations	1		(1)		121
Foreign exchange remeasurement	—		—		(1)
Impairment of other long-lived assets	—		—		(1)
Total Adjusted EBITDA	$	353	$	525	$	766
1 EBITDA of noncontrolling interests includes $41 million for income and $15 million for depreciation, depletion and amortization for the year ended December 31, 2020.

The following table summarizes our depreciation, depletion and amortization and capital additions by segment:

	(In Millions)
	Year Ended December 31,
	2020		2019		2018
Depreciation, depletion and amortization:
Steelmaking	$	276	$	80	$	68
Other Businesses	27		—		—
Corporate	5		5		6
Total depreciation, depletion and amortization	$	308	$	85	$	74
Capital additions1:
Steelmaking	$	436	$	687	$	393
Other Businesses	45		—		—
Corporate	2		3		2
Total capital additions	$	483	$	690	$	395
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.

The following summarizes our assets by segment:

	(In Millions)
	December 31,
	2020		2019
Assets:
Steelmaking	$	15,849	$	2,557
Other Businesses	239		—
Total segment assets	16,088		2,557
Corporate	683		947
Total assets	$	16,771	$	3,504

Included in the consolidated financial statements are the following amounts relating to geographic location based on product destination:

	(In Millions)
	2020		2019		2018
Revenues:
United States	$	4,580	$	1,505	$	1,847
Canada	602		448		395
Other countries	172		37		90
Total revenues	$	5,354	$	1,990	$	2,332
Property, plant and equipment, net:
United States	$	8,647	$	1,929	$	1,286
Canada	91		—		—
Other countries	5		—		—
Total property, plant and equipment, net	$	8,743	$	1,929	$	1,286