SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

12 Months Ended

Dec. 31, 2020

Supplementary Financial Statement Information

Allowance for Credit Losses

The following is a roll-forward of our allowance for credit losses associated with Accounts receivable, net:


	(In Millions)
	2020		2019
Allowance for credit losses as of January 1	$	—	$	—
Increase in allowance	(5)		—
Allowance for credit losses as of December 31	$	(5)	$	—

Inventories

The following table presents the detail of our Inventories in the Statements of Consolidated Financial Position:


	(In Millions)
	Year Ended December 31,
	2020		2019
Product inventories
Finished and semi-finished goods	$	2,125	$	114
Work-in-process	—		69
Raw materials	1,431		9
Total product inventories	3,556		192
Manufacturing supplies and critical spares	272		125
Inventories	$	3,828	$	317

The excess of current cost over LIFO cost of iron ore inventories was $104 million and $101 million at December 31, 2020 and 2019, respectively. As of December 31, 2020, the product inventory balance for iron ore inventories decreased, resulting in the liquidation of a LIFO layer. The effect of the inventory reduction was an increase in Cost of goods sold of $30 million in the Statements of Consolidated Operations for the year ended December 31, 2020. As of December 31, 2019, the product inventory balance for iron ore inventories increased, resulting in a LIFO increment in 2019. The effect of the inventory build was an increase in Inventories of $34 million in the Statements of Consolidated Financial Position for the year ended December 31, 2019.

The allowance for obsolete and surplus items in supplies and other inventories was $13 million at both December 31, 2020 and 2019.

Cash Flow Information

A reconciliation of capital additions to cash paid for capital expenditures is as follows:


	(In Millions)
	Year Ended December 31,
	2020		2019		2018
Capital additions	$	483	$	690	$	395
Less:
Non-cash accruals	(86)		15		94
Right-of-use assets - finance leases	44		29		8
Grants	—		(10)		(3)
Cash paid for capital expenditures including deposits	$	525	$	656	$	296

Cash payments (receipts) for interest and income taxes are as follows:


	(In Millions)
	2020		2019		2018
Taxes paid on income	$	5	$	—	$	3
Income tax refunds	(120)		(118)		(11)
Interest paid on debt obligations net of capitalized interest1	170		98		106

1 Capitalized interest was $53 million, $25 million and $7 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Non-Cash Investing and Financing Activities


	(In Millions)
	2020		2019		2018
Fair value of common shares issued as part of consideration in connection with AM USA Transaction	$	990	$	—	$	—
Fair value of Series B Participating Redeemable Preferred Stock issued as part of consideration in connection with AM USA Transaction	738		—		—
Fair value of settlement of a pre-existing relationship as part of consideration in connection with AM USA Transaction	237		—		—
Fair value of common shares issued as consideration in connection with AK Steel Merger	618		—		—
Fair value of equity awards assumed in connection with AK Steel Merger	4		—		—

Discontinued Operations

We had income from discontinued operations, net of tax of $88 million for the year ended December 31, 2018. During 2018, we sold all of the assets of our Asia Pacific Iron Ore mining operations, which had operating losses of $105 million for the year ended December 31, 2018. Additionally, as a result of the liquidation of the net assets of our Australian subsidiaries, the historical changes in foreign currency translation recorded in Accumulated other comprehensive loss totaling $228 million was reclassified and recognized as a gain in Income (loss) from discontinued operations, net of tax.