SEGMENT REPORTING

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 5 - 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)
	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenues:
Steelmaking	$	4,922	$	1,023	$	8,841	$	1,360
Other Businesses	123		70		253		92
Total revenues	$	5,045	$	1,093	$	9,094	$	1,452
Adjusted EBITDA:
Steelmaking	$	1,395	$	(54)	$	1,932	$	(10)
Other Businesses	8		2		19		4
Corporate and eliminations	(43)		(30)		(78)		(53)
Total Adjusted EBITDA	$	1,360	$	(82)	$	1,873	$	(59)

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

	(In Millions)
	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net income (loss)	$	795	$	(108)	$	852	$	(157)
Less:
Interest expense, net	(85)		(69)		(177)		(100)
Income tax benefit (expense)	(216)		25		(225)		76
Depreciation, depletion and amortization	(208)		(77)		(425)		(112)
	1,304		13		1,679		(21)
Less:
EBITDA of noncontrolling interests1	21		21		43		25
Gain (loss) on extinguishment of debt	(22)		130		(88)		133
Severance costs	(1)		(17)		(12)		(36)
Acquisition-related costs excluding severance costs	—		(2)		(2)		(25)
Acquisition-related loss on equity method investment	(18)		—		(18)		—
Amortization of inventory step-up	(37)		(36)		(118)		(59)
Impact of discontinued operations	1		(1)		1		—
Total Adjusted EBITDA	$	1,360	$	(82)	$	1,873	$	(59)
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests	$	15	$	16	$	31	$	19
Depreciation, depletion and amortization	6		5		12		6
EBITDA of noncontrolling interests	$	21	$	21	$	43	$	25

The following summarizes our assets by segment:

	(In Millions)
	June 30, 2021		December 31, 2020
Assets:
Steelmaking	$	16,966	$	15,849
Other Businesses	324		239
Total segment assets	17,290		16,088
Corporate	456		683
Total assets	$	17,746	$	16,771

The following table summarizes our capital additions by segment:

	(In Millions)
	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Capital additions1:
Steelmaking	$	146	$	66	$	279	$	220
Other Businesses	21		7		32		10
Corporate	—		—		18		1
Total capital additions	$	167	$	73	$	329	$	231
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.