AGÕæÈËƽ̨AGÕæÈËÊÔÍæ

Annual report pursuant to Section 13 and 15(d)

SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

v3.20.4
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Dec. 31, 2020
Disclosure Text Block [Abstract] Ìý
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:
(In Millions)
2020 2019
Allowance for credit losses as of January 1 $ â€�Ìý $ —Ì�
Increase in allowance (5) —�
Allowance for credit losses as of December 31 $ (5) $ —�
Inventories
The following table presents the detail of our Inventories in the Statements of Consolidated Financial Position:
(In Millions)
Year Ended December 31,
2020 2019
Product inventories
Finished and semi-finished goods $ 2,125Ìý $ 114Ìý
Work-in-process â€�Ìý 69Ìý
Raw materials 1,431Ìý 9Ìý
Total product inventories 3,556Ìý 192Ìý
Manufacturing supplies and critical spares 272Ìý 125Ìý
Inventories $ 3,828Ìý $ 317Ìý
The excess of current cost over LIFO cost of iron ore inventories was $104Ìýmillion and $101Ìýmillion at DecemberÌý31, 2020 and 2019, respectively. 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 Operations for the year ended DecemberÌý31, 2020. As of DecemberÌý31, 2019, the product inventory balance for iron ore inventories increased, resulting in a LIFO increment in 2019. The effect of the inventory build was an increase in Inventories of $34Ìýmillion in the Statements of Consolidated Financial Position for the year ended DecemberÌý31, 2019.
The allowance for obsolete and surplus items in supplies and other inventories was $13Ìýmillion at both DecemberÌý31, 2020 and 2019.
Cash Flow Information
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
(In Millions)
Year Ended December 31,
2020 2019 2018
Capital additions $ 483Ìý $ 690Ìý $ 395Ìý
Less:
Non-cash accruals (86) 15Ìý 94Ìý
Right-of-use assets - finance leases 44Ìý 29Ìý 8Ìý
Grants â€�Ìý (10) (3)
Cash paid for capital expenditures including deposits $ 525Ìý $ 656Ìý $ 296Ìý
Cash payments (receipts) for interest and income taxes are as follows:
(In Millions)
2020 2019 2018
Taxes paid on income $ 5Ìý $ —Ì� $ 3Ìý
Income tax refunds (120) (118) (11)
Interest paid on debt obligations net of capitalized interest1
170Ìý 98Ìý 106Ìý
1 Capitalized interest was $53 million, $25 million and $7 million for the years ended DecemberÌý31, 2020, 2019 and 2018, respectively.
Non-Cash Investing and Financing Activities
(In Millions)
2020 2019 2018
Fair value of common shares issued as part of consideration in connection with AM USA Transaction $ 990Ìý $ —Ì� $ —Ì�
Fair value of Series B Participating Redeemable Preferred Stock issued as part of consideration in connection with AM USA Transaction 738Ìý —Ì� —Ì�
Fair value of settlement of a pre-existing relationship as part of consideration in connection with AM USA Transaction 237Ìý —Ì� —Ì�
Fair value of common shares issued as consideration in connection with AK AGÕæÈËƽ̨AGÕæÈËÊÔÍæ Merger 618Ìý —Ì� —Ì�
Fair value of equity awards assumed in connection with AK AGÕæÈËƽ̨AGÕæÈËÊÔÍæ Merger 4Ìý —Ì� —Ì�
Discontinued Operations
We had income from discontinued operations, net of tax of $88 million for the year ended December 31, 2018. During 2018, we sold all of the assets of our Asia Pacific Iron Ore mining operations, which had operating losses of $105Ìýmillion for the year ended December 31, 2018. Additionally, as a result of the liquidation of the net assets of our Australian subsidiaries, the historical changes in foreign currency translation recorded in Accumulated other comprehensive loss totaling $228Ìýmillion was reclassified and recognized as a gain in Income (loss) from discontinued operations, net of tax.