Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

4. Segment Information

U. S. Steel has four reportable segments: North American Flat-Rolled (Flat-Rolled), Mini Mill, USSE and Tubular Products (Tubular). The results of our real estate business, the previously held equity method investment in Big River Steel, and of our former railroad businesses are combined and disclosed in the Other category. The majority of U. S. Steel's customers are located in North America and Europe. No single customer accounted for more than 10 percent of gross annual revenues.

The Flat-Rolled segment includes the operating results of U. S. Steel’s integrated steel plants and equity investees in the United States involved in the production of slabs, strip mill plates, sheets and tin mill products, as well as all iron ore and coke production facilities in the United States. These operations primarily serve North American customers in the service center, conversion, transportation (including automotive), construction, container, and appliance and electrical markets.

The Mini Mill segment reflects the acquisition of Big River Steel after the purchase of the remaining equity interest on January 15, 2021 (see Note 5 for further details) and a new mill under construction in Osceola, Arkansas. As of December 31, 2021, the Mini Mill segment includes the operating results of U. S. Steel’s two electric arc furnace steel plant in Osceola, Arkansas involved in the production of sheets and electrical products and a new mill under construction in Osceola, Arkansas. These operations primarily serve North American customers in the service center, conversion, transportation (including automotive), construction, container, and appliance and electrical markets.

The USSE segment includes the operating results of U. S. Steel Košice (USSK), U. S. Steel’s integrated steel plant and coke production facilities in Slovakia, and its subsidiaries. USSE conducts its business mainly in Central and Western Europe and primarily serves customers in the European transportation (including automotive), construction, container, appliance, electrical, service center, conversion and oil, gas and petrochemical markets. USSE produces and sells slabs, strip mill plate, sheet, tin mill products and spiral welded pipe.

The Tubular segment includes the operating results of U. S. Steel’s tubular production facilities and an equity investee in the United States. These operations produce and sell seamless and electric resistance welded (welded) steel casing and tubing (commonly known as oil country tubular goods or OCTG), standard and line pipe and mechanical tubing and primarily serve customers in the oil, gas and petrochemical markets. The Tubular segment includes the electric arc furnace at our Fairfield Tubular Operations in Fairfield, Alabama.

The chief operating decision maker evaluates performance and determines resource allocations based on a number of factors, the primary measure being earnings (loss) before interest and income taxes. Earnings (loss) before interest and income taxes for reportable segments and the Other category does not include net interest and other financial costs (income), income taxes, and certain other items that management believes are not indicative of future results.

The accounting principles applied at the operating segment level in determining earnings (loss) before interest and income taxes are generally the same as those applied at the consolidated financial statement level. Intersegment sales and transfers are accounted for at market-based prices and are eliminated at the corporate consolidation level. Corporate-level selling, general and administrative expenses and costs related to certain former businesses are allocated to the reportable segments and Other based on measures of activity that management believes are reasonable.

The results of segment operations are as follows:

(In millions)	Customer Sales		Intersegment Sales		Net Sales		Earnings (loss) from investees		Earnings (loss) before Interest and Income Taxes		Depreciation, depletion & amortization		Capital expenditures
2021
Flat-Rolled	$	12,180	$	178	$	12,358	$	150	$	2,630	$	491	$	422
Mini Mill (a)	3,008		508		3,516		—		1,206		151		331
USSE	4,262		4		4,266		—		975		98		57
Tubular	789		20		809		14		1		46		51
Total reportable segments	20,239		710		20,949		164		4,812		786		861
Other	36		65		101		6		(11)		5		2
Reconciling Items and Eliminations	—		(775)		(775)		—		145		—		—
Total	$	20,275	$	—	$	20,275	$	170	$	4,946	$	791	$	863
2020
Flat-Rolled	$	7,071	$	208	$	7,279	$	(9)	$	(596)	$	496	$	484
USSE	1,967		3		1,970		—		9		97		79
Tubular	639		7		646		4		(179)		39		159
Total reportable segments	9,677		218		9,895		(5)		(766)		632		722
Other	64		98		162		(94)		(39)		11		3
Reconciling Items and Eliminations	—		(316)		(316)		(18)		(270)		—		—
Total	$	9,741	$	—	$	9,741	$	(117)	$	(1,075)	$	643	$	725
2019
Flat-Rolled	$	9,279	$	281	$	9,560	$	84	$	196	$	456	$	943
USSE	2,417		3		2,420		—		(57)		92		153
Tubular	1,188		3		1,191		5		(67)		46		145
Total reportable segments	12,884		287		13,171		89		72		594		1,241
Other	53		115		168		(10)		23		22		11
Reconciling Items and Eliminations	—		(402)		(402)		—		(325)		—		—
Total	$	12,937	$	—	$	12,937	$	79	$	(230)	$	616	$	1,252

(a)Includes capital expenditures related to a new mill under construction in Osceola, Arkansas of $144 million in 2021.

A summary of total assets by segment is as follows:

	December 31,
(In millions)	2021		2020
Flat-Rolled	$	7,337	$	7,099
Mini Mill (a)	4,715		—
USSE	6,111		5,502
Tubular	1,054		887
Total reportable segments	$	19,217	$	13,488
Other	$	88	$	911
Corporate, reconciling items, and eliminations (b)	(1,489)		(2,340)
Total assets	$	17,816	$	12,059

(a)Includes assets of $347 million related to a new mill under construction in Osceola, Arkansas.

(b)The majority of Corporate, reconciling items, and eliminations total assets is comprised of cash and the elimination of intersegment amounts.

The detail of reconciling items to consolidated earnings (loss) before interest and income taxes is as follows:

(In millions)	2021		2020		2019
Items not allocated to segments:
Restructuring and other charges (Note 25)	(128)		(138)		(275)
Asset impairment charges	(273)		(287)		—
Big River Steel - acquisition-related items	(35)		(3)		—
Losses (gains) on assets sold & previously held investments	118		170		—
Gain on sale of Transtar (Note 5)	506		—		—
Environmental remediation charges	(43)		—		—
Other items	—		(12)		(50)
Total reconciling items	$	145	$	(270)	$	(325)

Geographic Area:

The information below summarizes external sales, property, plant and equipment and equity method investments based on the location of the operating segment to which they relate.

(In millions)	Year	External Sales		Assets
North America	2021	$	16,013	$	7,034	(a)
	2020	7,774		5,590		(a)
	2019	10,520		5,772		(a)
Europe	2021	4,262		880
	2020	1,967		993
	2019	2,417		947
Total	2021	20,275		7,914
	2020	9,741		6,583
	2019	12,937		6,719

(a)Assets with a book value of $7,034 million, $5,590 million and $5,772 million were located in the United States at December 31, 2021, 2020 and 2019, respectively.