Transactions with Related Parties

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

Transactions with Related Parties

23. Transactions with Related Parties

Related party sales and service transactions are primarily related to equity investees and were $1,311 million, $976 million and $1,431 million in 2021, 2020 and 2019, respectively.

Accounts payable to related parties include balances due to PRO-TEC Coating Company (PRO-TEC) of $98 million and $86 million at December 31, 2021 and 2020, respectively for invoicing and receivables collection services provided by U. S. Steel on PRO-TEC's behalf. U. S. Steel, as PRO-TEC’s exclusive sales agent, is responsible for credit risk related to those receivables. U. S. Steel also provides PRO-TEC marketing, selling and customer service functions. Payables to other related parties totaled $1 million and $19 million for the periods ending December 31, 2021 and 2020, respectively.

Purchases from related parties for outside processing services provided by equity investees amounted to $38 million, $90 million and $31 million during 2021, 2020 and 2019, respectively. Purchases of iron ore pellets from related parties amounted to $111 million, $78 million and $104 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Upon the acquisition of Big River Steel on January 15, 2021, there were related party payables of approximately $27 million for steel substrate sales from Big River Steel to U. S. Steel. After the acquisition, the related party payables became intercompany payables that are eliminated in consolidation.

Upon the acquisition of UPI on February 29, 2020 there were $135 million of related party receivables for prior sales of steel substrate from U. S. Steel to UPI. After the acquisition, the related party receivables became intercompany receivables that are eliminated in consolidation.