Cleveland-Cliffs Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTIES

RELATED PARTIES

9 Months Ended

Sep. 30, 2021

NOTE 15 - RELATED PARTIES

We have certain co-owned joint ventures with companies from the steel and mining industries, including integrated steel companies, their subsidiaries and other downstream users of steel and iron ore products.

Hibbing is a co-owned joint venture of which we own 85.3% and U.S. Steel owns 14.7% as of September 30, 2021. As a result of the AM USA Transaction, we acquired an additional 62.3% ownership stake in Hibbing and became the majority owner and mine manager. Prior to the AM USA Transaction, ArcelorMittal was a related party due to its ownership interest in Hibbing. As such, for the three and nine months ended September 30, 2020, certain long-term contracts with ArcelorMittal resulted in Revenues from related parties. As of September 30, 2020, we owned 23% of Hibbing.

Revenues from related parties were as follows:


	(In Millions)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Revenues from related parties	$	11		$	294		$	123		$	587
Revenues	$	6,004		$	1,646		$	15,098		$	3,098
Related party revenues as a percent of Revenues	—		%	18		%	1		%	19		%
Purchases from related parties	$	16		$	8		$	58		$	20

The following table presents the classification of related party assets and liabilities in the Statements of Unaudited Condensed Consolidated Financial Position:


	(In Millions)
Balance Sheet Location of Assets (Liabilities)	September 30, 2021		December 31, 2020
Accounts receivable, net	$	4	$	2

Accounts payable	(7)		(6)