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NOTE 2 - 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:
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(In Millions) |
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2021 |
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2020 |
| Allowance for credit losses as of January 1 |
$ |
(5) |
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$ |
—Ìý |
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| Decrease (increase) in allowance |
1Ìý
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(5) |
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| Allowance for credit losses as of December 31 |
$ |
(4) |
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$ |
(5) |
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Inventories
The following table presents the detail of our Inventories in the Statements of Consolidated Financial Position:
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(In Millions) |
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Year Ended December 31, |
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2021 |
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2020 |
| Product inventories |
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| Finished and semi-finished goods |
$ |
2,814Ìý
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$ |
2,125Ìý |
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| Raw materials |
2,070Ìý
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1,431Ìý |
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| Total product inventories |
4,884Ìý
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3,556Ìý |
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| Manufacturing supplies and critical spares |
304Ìý
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272Ìý |
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| Inventories |
$ |
5,188Ìý
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$ |
3,828Ìý |
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The excess of current cost over LIFO cost of iron ore inventories was $124Ìýmillion and $104Ìýmillion at DecemberÌý31, 2021 and 2020, respectively. As of DecemberÌý31, 2021, the product inventory balance for iron ore inventories increased, resulting in a LIFO increment in 2021. The effect of the inventory build was an increase in Inventories of $45Ìýmillion in the Statements of Consolidated ÈÕº«Èý¼¶Æ¬ for the year ended DecemberÌý31, 2021. As of DecemberÌý31, 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 $30Ìýmillion in the Statements of Consolidated ÈÕº«Èý¼¶Æ¬ for the year ended DecemberÌý31, 2020.
Cash Flow Information
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
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(In Millions) |
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Year Ended December 31, |
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2021 |
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2020 |
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2019 |
| Capital additions |
$ |
857Ìý
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$ |
483Ìý |
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$ |
690Ìý |
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| Less: |
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| Non-cash accruals |
102Ìý
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(86) |
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15Ìý |
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| Right-of-use assets - finance leases |
50Ìý
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44Ìý |
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29Ìý |
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| Grants |
—Ìý
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—Ìý |
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(10) |
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| Cash paid for capital expenditures including deposits |
$ |
705Ìý
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$ |
525Ìý |
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$ |
656Ìý |
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Cash payments (receipts) for interest and income taxes are as follows:
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(In Millions) |
| 2021 |
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2020 |
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2019 |
| Taxes paid on income |
$ |
166Ìý
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$ |
5Ìý |
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$ |
—Ìý |
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| Income tax refunds |
(16) |
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(120) |
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(118) |
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Interest paid on debt obligations net of capitalized interest1
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299Ìý
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170Ìý |
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98Ìý |
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1 Capitalized interest was $6 million, $53 million and $25 million for the years ended DecemberÌý31, 2021, 2020 and 2019, respectively.
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Other Non-Cash Investing and Financing Activities
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(In Millions) |
| 2021 |
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2020 |
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2019 |
| Fair value of settlement of a pre-existing relationship as part of consideration in connection with FPT Acquisition |
$ |
(20) |
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$ |
—Ìý |
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$ |
—Ìý |
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| Fair value of common shares issued as part of consideration in connection with AM USA Transaction |
—Ìý
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990Ìý |
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—Ìý |
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| Fair value of Series B Participating Redeemable Preferred Stock issued as part of consideration in connection with AM USA Transaction |
—Ìý
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738Ìý |
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—Ìý |
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| Fair value of settlement of a pre-existing relationship as part of consideration in connection with AM USA Transaction |
—Ìý
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237Ìý |
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—Ìý |
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| Fair value of common shares issued as consideration in connection with AK Steel Merger |
—Ìý
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618Ìý |
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—Ìý |
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| Fair value of equity awards assumed in connection with AK Steel Merger |
—Ìý
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4Ìý |
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—Ìý |
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