Annual report [Section 13 and 15(d), not S-K Item 405]

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

v3.25.4
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Dec. 31, 2025
Disclosure Text Block [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 Consolidated Financial Position:
December 31,
(In millions) 2025 2024
Product inventories
Finished and semi-finished goods $ 2,401  $ 2,393 
Raw materials 1,848  2,208 
Total product inventories 4,249  4,601 
Manufacturing supplies and critical spares 523  493 
Inventories $ 4,772  $ 5,094 
The excess of current cost over LIFO cost of iron ore inventories was $158 million and $142 million as of December 31, 2025 and 2024, respectively. As of December 31, 2025, the product inventory balance for iron ore inventories decreased, resulting in a LIFO decrement in 2025. The effect of the inventory reduction was an increase in Cost of goods sold of $57 million on the Statements of Consolidated Operations for the year ended December 31, 2025. As of December 31, 2024, the product inventory balance for iron ore inventories increased, resulting in a LIFO increment in 2024. The effect of the inventory build was an increase in Inventories of $64 million on the Statements of Consolidated Financial Position for the year ended December 31, 2024.
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 Company 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 December 31, 2025 and 2024, we had $28 million and $29 million, respectively, deemed as short-term financings that are classified in Other current liabilities. Additionally, as of December 31, 2025 and 2024, we had $73 million and $76 million, respectively, classified as Accounts payable.
The following is a roll-forward of our obligations related to supply chain finance programs classified in Other current liabilities:
(In millions) 2025 2024
Supply chain finance obligations as of January 1 $ 29  $ 21 
Invoices confirmed during the year 212  230 
Confirmed invoices paid during the year (213) (222)
Supply chain finance obligations as of December 31 $ 28  $ 29 
The following is a roll-forward of our obligations related to supply chain finance programs classified in Accounts payable:
(In millions) 2025 2024
Supply chain finance obligations as of January 1 $ 76  $ 91 
Invoices confirmed during the year 363  375 
Confirmed invoices paid during the year (366) (390)
Supply chain finance obligations as of December 31 $ 73  $ 76 
INDEFINITELY IDLED FACILITIES
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, 2023 $ —  $ —  $ —  $ — 
Costs incurred1
82  49  79  210
Cash payments (26) (34) —  (60)
Non-cash —  —  (79) (79)
Balance as of December 31, 2024 $ 56  $ 15  $ —  $ 71 
Costs incurred2
59  32  39  130
Cash payments (45) (39) —  (84)
Non-cash —  —  (39) (39)
Balance as of December 31, 2025
 $ 70  $ 8  $ —  $ 78 
1 Of the $210 million of cost incurred, $129 million was recorded in Restructuring and other charges, $79 million was recorded in Asset impairment and $2 million was recorded in Net periodic benefit credits other than service cost component.
2 Of the $130 million of cost incurred, $86 million was recorded in Restructuring and other charges, $39 million was recorded in Asset impairment and $5 million was recorded in Net periodic benefit credits other than service cost component.
SALE OF BUSINESS
On December 5, 2025, we completed the sale of FPT Florida to S A Recycling, LLC. As a result of the sale, we recorded a gain of $9 million classified in Miscellaneous – net in the Statements of Consolidated Operations and as Other in operating activities on the Statements of Consolidated Cash Flows for the year ended December 31, 2025. As part of this transaction, we received $53 million in proceeds related to the sale that is classified within investing activities on the Statements of Consolidated Cash Flows.
On October 6, 2023, we entered into a membership interest purchase agreement for the sale of the legal entities owning, among other things, our closed coal mines in Pennsylvania. As a result of the sale, we recorded a gain of $63 million classified in Miscellaneous – net in the Statements of Consolidated Operations and as Other in operating activities on the Statements of Consolidated Cash Flows for the year ended December 31, 2023. As part of this transaction, we received $35 million in proceeds related to the sale that is classified within investing activities on the Statements of Consolidated Cash Flows.
CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Year Ended December 31,
(In millions) 2025 2024 2023
Capital additions $ 680  $ 817  $ 785 
Less:
Non-cash accruals (41) (47) (13)
Equipment financed with seller 73  72  59 
Right-of-use assets - finance leases 87  97  93 
Cash paid for capital expenditures including deposits $ 561  $ 695  $ 646 
Additionally, included within Other investing activities on the Statements of Consolidated Cash Flows are grant reimbursements related to governmental funded capital projects. For the years ended December 31, 2025, 2024 and 2023, grant reimbursements were $12 million, $8 million and $13 million, respectively.
Cash payments (receipts) for interest and income taxes are as follows:
Year Ended December 31,
(In millions) 2025 2024 2023
Income taxes paid $ 7  $ 17  $ 94 
Income tax refunds (23) (47) (205)
Interest paid on debt obligations net of capitalized interest1
459  255  256 
1 Capitalized interest was $15 million, $15 million and $12 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Other non-cash investing and financing activities are as follows:
Year Ended December 31,
(In millions) 2025 2024 2023
Fair value of common shares issued as part of consideration in connection with the Stelco Acquisition $ —  $ 343  $ —