SEGMENT REPORTING

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 5 - SEGMENT REPORTING

We are vertically integrated from mined raw materials and direct reduced iron and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling and tubing. We are organized into four operating segments based on our differentiated products - Steelmaking, Tubular, Tooling and Stamping, and European Operations. 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 operates as the largest flat-rolled steel producer supported by being the largest iron ore pellet producer as well as a leading prime scrap processor 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,
	2021		2020		2019
Revenues:
Steelmaking	$	19,901	$	4,965	$	1,990
Other Businesses	543		389		—
Total revenues	$	20,444	$	5,354	$	1,990
Adjusted EBITDA:
Steelmaking	$	5,422	$	433	$	636
Other Businesses	9		47		—
Corporate and eliminations	(169)		(127)		(111)
Total Adjusted EBITDA	$	5,262	$	353	$	525

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

	(In Millions)
	Year Ended December 31,
	2021		2020		2019
Net income (loss)	$	3,033	$	(81)	$	293
Less:
Interest expense, net	(337)		(238)		(101)
Income tax benefit (expense)	(773)		111		(18)
Depreciation, depletion and amortization	(897)		(308)		(85)
	5,040		354		497
Less:
EBITDA from noncontrolling interests1	75		56		—
Gain (loss) on extinguishment of debt	(88)		130		(18)
Severance costs	(15)		(38)		(2)
Acquisition-related costs excluding severance costs	(5)		(52)		(7)
Acquisition-related loss on equity method investment	(31)		—		—
Amortization of inventory step-up	(161)		(96)		—
Impact of discontinued operations	3		1		(1)
Total Adjusted EBITDA	$	5,262	$	353	$	525
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests	$	45	$	41	$	—
Depreciation, depletion and amortization	30		15		—
EBITDA of noncontrolling interests	$	75	$	56	$	—

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

	(In Millions)
	Year Ended December 31,
	2021		2020		2019
Depreciation, depletion and amortization:
Steelmaking	$	855	$	276	$	80
Other Businesses	37		27		—
Corporate	5		5		5
Total depreciation, depletion and amortization	$	897	$	308	$	85
Capital additions1:
Steelmaking	$	787	$	436	$	687
Other Businesses	52		45		—
Corporate	18		2		3
Total capital additions	$	857	$	483	$	690
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.

The following summarizes our assets by segment:

	(In Millions)
	December 31,
	2021		2020
Assets:
Steelmaking	$	18,326	$	15,849
Other Businesses	306		239
Total segment assets	18,632		16,088
Corporate	343		683
Total assets	$	18,975	$	16,771

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

	(In Millions)
	2021		2020		2019
Revenues:
United States	$	18,881	$	4,580	$	1,505
Canada	803		602		448
Other countries	760		172		37
Total revenues	$	20,444	$	5,354	$	1,990
Property, plant and equipment, net:
United States	$	9,092	$	8,647	$	1,929
Canada	93		91		—
Other countries	1		5		—
Total property, plant and equipment, net	$	9,186	$	8,743	$	1,929