Quarterly report [Sections 13 or 15(d)]

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

v3.25.3
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 9 Months Ended
Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
INVENTORIES
The following table presents the detail of our Inventories on the Statements of Unaudited Condensed Consolidated Financial Position:
(In millions) September 30,
2025		 December 31,
2024
Product inventories
Finished and semi-finished goods $ 2,312  $ 2,393 
Raw materials 1,857  2,208 
Total product inventories 4,169  4,601 
Manufacturing supplies and critical spares 514  493 
Inventories $ 4,683  $ 5,094 
SUPPLY CHAIN FINANCE PROGRAMS
We negotiate payment terms directly with our suppliers for the purchase of goods and services. We currently offer voluntary supply chain finance programs that enable our suppliers to sell their Cliffs receivables to financial intermediaries, at the sole discretion of both the suppliers and financial intermediaries. No guarantees are provided by us or our subsidiaries under the supply chain finance programs. The supply chain finance programs allow our suppliers to be paid by the financial intermediaries earlier than the due date on the applicable invoice. Supply chain finance programs that extend terms or provide us an economic benefit are classified as short-term financings. As of September 30, 2025 and December 31, 2024, we had $22 million and $29 million, respectively, deemed as short-term financings that are classified in Other current liabilities. Additionally, as of September 30, 2025 and December 31, 2024, we had $75 million and $76 million, respectively, classified as Accounts payable.
INDEFINITELY IDLED FACILITIES CHARGES
The following table represents a reconciliation of our accrued liabilities related to the discontinuation of certain product lines resulting from the indefinite idling of our Steelton rail production facility and Weirton tinplate production facility:
(In millions) Employee-Related Costs Exit Costs Asset Impairment Total
Balance as of December 31, 2024 $ 56  $ 15  $ —  $ 71 
Costs incurred1
—  3  —  3 
Cash payments (8) (9) —  (17)
Balance as of March 31, 2025 $ 48  $ 9  $ —  $ 57 
Costs incurred2
70  26  39  135 
Cash payments (7) (22) —  (29)
Non-cash —  —  (39) (39)
Balance as of June 30, 2025 $ 111  $ 13  $ —  $ 124 
Costs incurred3
$ —  $ 3  $ —  $ 3 
Cash payments (15) (6) —  (21)
Balance as of September 30, 2025 $ 96  $ 10  $ —  $ 106 
1 All $3 million of cost incurred was recorded in Restructuring and other charges.
2 Of the $135 million of cost incurred, $86 million was recorded in Restructuring and other charges, $39 million was recorded in Asset impairments, and $10 million was recorded in Net periodic benefit credits other than service cost component.
3 All $3 million of cost incurred was recorded in Restructuring and other charges.
CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Nine Months Ended
September 30,
(In millions) 2025 2024
Capital additions $ 488  $ 557 
Less:
Non-cash accruals (72) (58)
Equipment financed with seller 60  50 
Right-of-use assets - finance leases 79  75 
Cash paid for capital expenditures including deposits $ 421  $ 490 
Cash payments (receipts) for income taxes and interest are as follows:
Nine Months Ended
September 30,
(In millions) 2025 2024
Income taxes paid $ 5  $ 13 
Income tax refunds (18) (5)
Interest paid on debt obligations net of capitalized interest1
341  193 
1 Capitalized interest was $11 million for both the nine months ended September 30, 2025 and 2024.