Quarterly report [Sections 13 or 15(d)]

GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES

v3.25.2
GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES
NOTE 7 - GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES
GOODWILL
The following is a summary of Goodwill by segment:
(In millions) June 30,
2025		 December 31,
2024
Steelmaking $ 1,765  $ 1,719 
Other Businesses 49  49 
Total $ 1,814  $ 1,768 
The increase of $46 million in the balance of Goodwill in our Steelmaking segment as of June 30, 2025, compared to December 31, 2024, is primarily due to fluctuation in foreign currency exchange rates. Additionally, to a lesser extent, the change is attributable to an increase in estimated identified goodwill as a result of measurement period adjustments to the preliminary purchase price allocation for the Stelco Acquisition. Refer to NOTE 3 - ACQUISITIONS for further details.
INTANGIBLE ASSETS AND LIABILITIES
The following is a summary of our intangible assets and liabilities:
June 30, 2025
December 31, 2024
Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount
Intangible assets1:
Customer relationships $ 1,067  $ (69) $ 998  $ 1,015  $ (34) $ 981 
Developed technology 60  (19) 41  60  (17) 43 
Trade names and trademarks 91  (11) 80  87  (8) 79 
Mining permits 72  (29) 43  72  (29) 43 
Supplier relationships 29  (6) 23  29  (5) 24 
Total intangible assets $ 1,319  $ (134) $ 1,185  $ 1,263  $ (93) $ 1,170 
Intangible liabilities2:
Above-market supply contracts $ (71) $ 33  $ (38) $ (71) $ 30  $ (41)
1 Intangible assets are classified as Other non-current assets. Amortization related to mining permits and supplier relationships is recognized in Cost of goods sold. Amortization of all other intangible assets is recognized in Selling, general and administrative expenses.
2 Intangible liabilities are classified as Other non-current liabilities. Amortization of all intangible liabilities is recognized in Cost of goods sold.
Amortization expense related to Intangible assets was $21 million and $3 million for the three months ended June 30, 2025 and 2024, respectively. Amortization expense related to Intangible assets was $40 million and $7 million for the six months ended June 30, 2025 and 2024, respectively. Estimated future amortization expense is $42 million for the remainder of 2025 and $83 million annually for the years 2026 through 2030. Additionally, customer relationships and trade names and trademarks intangibles are impacted by period over period fluctuations in foreign currency exchange rates.
Income from amortization related to the intangible liabilities was $2 million for both the three months ended June 30, 2025 and 2024. Income from amortization related to the intangible liabilities was $3 million for both the six months ended June 30, 2025 and 2024. Estimated future income from amortization is $2 million for the remainder of 2025 and $5 million annually for the years 2026 through 2030.