Restructuring and Other Charges

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

25. Restructuring and Other Charges

During 2021, the Company recorded restructuring and other charges of $128 million, which consists of charges of $29 million for Great Lakes Works, charges of approximately $89 million related to the planned sale of a component within the Flat-Rolled segment and environmental-related charges at other facilities of $10 million. Cash payments were made related to severance and exit costs of approximately $58 million.

During 2020, the Company recorded restructuring and other charges of $138 million, which consists of charges of $66 million for the indefinite idling of a significant portion of Great Lakes Works, and our Keetac mining operations which was restarted in the fourth quarter, $25 million for the indefinite idling of Lorain Tubular Operations and Lone Star Tubular Operations, and $15 million and $32 million for employee benefit costs related to Company-wide headcount reductions and headcount reductions under a voluntary early retirement program offered at USSK, respectively. Cash payments were made related to severance and exit costs of approximately $169 million. A portion of these cash payments, approximately $38 million, were funded by the postretirement benefit trust (VEBA) per an agreement with the United Steelworkers of America.

During 2019, U. S. Steel recorded restructuring and other charges of $275 million, which consists of charges of $25 million at USSK for headcount reductions and plant exit costs, $227 million for the indefinite idling of our East Chicago Tin operations, our finishing facility in Dearborn, Michigan, and the intended indefinite idling of a significant portion of Great Lakes Works and $23 million for Company-wide headcount reductions. Cash payments were made related to severance and exit costs of $35 million.

Charges for restructuring and ongoing cost reduction initiatives are recorded in the period U. S. Steel commits to a restructuring or cost reduction plan, or executes specific actions contemplated by the plan and all criteria for liability recognition have been met. Charges related to the restructuring and cost reductions are reported in restructuring and other charges in the Consolidated Statements of Operations.

The activity in the accrued balances incurred in relation to restructuring during the years ended December 31, 2021, and December 31, 2020, were as follows:


(in millions)	Employee Related Costs		Exit Costs		Non-cash Charges		Total
Balance at December 31, 2019	$	87	$	125	$	—	$	212
Additional charges	81		53		4		$	138
Cash payments/utilization	(117)		(52)		(4)		(173)
Balance at December 31, 2020	$	51	$	126	$	—	$	177
Additional charges	76		51		1		128
Cash payments/utilization(a)	(36)		(28)		(1)		(65)
Balance at December 31, 2021	$	91	$	149	$	—	$	240

(a)$7 million of payments were made from the pension fund trust assets in the Employee Related Cost column.

Accrued liabilities for restructuring and other cost reduction programs are included in the following balance sheet lines:


(in millions)	December 31, 2021		December 31, 2020
Accounts payable	$	34	$	34
Payroll and benefits payable	2		29
Employee benefits	88		22
Deferred credits and other noncurrent liabilities	116		92
Total	$	240	$	177