SEGMENT REPORTING

12 Months Ended

Dec. 31, 2023

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 allocate Corporate Selling, general and administrative expenses to our operating segments.

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:

	Year Ended December 31,
(In millions)	2023		2022		2021
Revenues:
Steelmaking	$	21,331	$	22,383	$	19,901
Other Businesses	665		606		543
Total revenues	$	21,996	$	22,989	$	20,444
Adjusted EBITDA:
Steelmaking	$	1,873	$	3,089	$	5,280
Other Businesses	43		69		9
Eliminations	(5)		11		(12)
Total Adjusted EBITDA	$	1,911	$	3,169	$	5,277

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

	Year Ended December 31,
(In millions)	2023		2022		2021
Net income	$	450	$	1,376	$	3,033
Less:
Interest expense, net	(289)		(276)		(337)
Income tax expense	(148)		(423)		(773)
Depreciation, depletion and amortization	(973)		(1,034)		(897)
	1,860		3,109		5,040
Less:
EBITDA from noncontrolling interests1	83		74		75
Acquisition-related expenses and adjustments	(12)		(1)		(197)
Goodwill impairment	(125)		—		—
Non-cash gain on sale of business	28		—		—
Loss on extinguishment of debt	—		(75)		(88)
Asset impairment	—		(29)		—
Other, net	(25)		(29)		(27)
Total Adjusted EBITDA	$	1,911	$	3,169	$	5,277
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests	$	51	$	41	$	45
Depreciation, depletion and amortization	32		33		30
EBITDA of noncontrolling interests	$	83	$	74	$	75

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

	Year Ended December 31,
(In millions)	2023		2022		2021
Depreciation, depletion and amortization:
Steelmaking	$	(938)	$	(994)	$	(860)
Other Businesses	(35)		(40)		(37)
Total depreciation, depletion and amortization	$	(973)	$	(1,034)	$	(897)
Capital additions1:
Steelmaking	$	778	$	997	$	787
Other Businesses	3		30		52
Corporate	4		6		18
Total capital additions	$	785	$	1,033	$	857
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.

The following summarizes our assets by segment:

	December 31,
(In millions)	2023		2022
Assets:
Steelmaking	$	16,880	$	18,070
Other Businesses	657		836
Intersegment eliminations	(507)		(521)
Total segment assets	17,030		18,385
Corporate/Eliminations	507		370
Total assets	$	17,537	$	18,755

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

(In millions)	2023		2022		2021
Revenues:
United States	$	20,000	$	20,991	$	18,881
Canada	1,046		963		803
Other countries	950		1,035		760
Total revenues	$	21,996	$	22,989	$	20,444
Property, plant and equipment, net:
United States	$	8,816	$	8,981	$	9,092
Canada	78		88		93
Other countries	1		1		1
Total property, plant and equipment, net	$	8,895	$	9,070	$	9,186