Document


Earnings Highlights

	Quarter Ended				Year Ended
	December 31,				December 31,
(Dollars in millions, except per share amounts)	2020		2019		2020		2019
Net Sales	$	2,562	$	2,824	$	9,741	$	12,937
Segment (loss) earnings before interest and income taxes
Flat-Rolled	$	(73)	$	(79)	$	(596)	$	196
U. S. Steel Europe	36		(30)		9		(57)
Tubular	(32)		(46)		(179)		(67)
Other Businesses	(6)		(3)		(39)		23
Total segment (loss) earnings before interest and income taxes	$	(75)	$	(158)	$	(805)	$	95
Other items not allocated to segments	118		(218)		(270)		(325)
Earnings (loss) before interest and income taxes	$	43	$	(376)	$	(1,075)	$	(230)
Net interest and other financial costs	88		71		232		222
Income tax (benefit) provision	(94)		221		(142)		178
Net earnings (loss)	$	49	$	(668)	$	(1,165)	$	(630)
Earnings (loss) per diluted share	$	0.22	$	(3.93)	$	(5.92)	$	(3.67)

Adjusted net (loss) earnings (a)	$	(60)	$	(109)	$	(920)	$	15
Adjusted net (loss) earnings per diluted share (a)	$	(0.27)	$	(0.64)	$	(4.67)	$	0.09
Adjusted earnings (loss) before interest, income taxes, depreciation and amortization (EBITDA) (a)	$	87	$	4	$	(162)	$	711


UNITED STATES STEEL CORPORATION
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)

		Quarter Ended						Year Ended
		December 31,						December 31,
		2020			2019			2020			2019
OPERATING STATISTICS
Average realized price: ($/net ton unless otherwise noted) (a)
	Flat-Rolled	731			699			718			753
	U. S. Steel Europe	652			622			626			652
	U. S. Steel Europe (€/net ton)	547			562			549			582
	Tubular	1,267			1,298			1,271			1,450
Steel shipments (thousands of net tons):(a)
	Flat-Rolled	2,257			2,517			8,711			10,700
	U. S. Steel Europe	840			757			3,041			3,590
	Tubular	74			193			464			769
	Total Steel Shipments	3,171			3,467			12,216			15,059

Intersegment steel (unless otherwise noted) shipments (thousands of net tons):
	Flat-Rolled to Tubular	—			46			101			258
	Flat-Rolled to U. S. Steel Europe (iron ore pellets and fines)	506			—			1,418			424
Raw steel production (thousands of net tons):
	Flat-Rolled	2,490			2,567			9,313			11,409
	U. S. Steel Europe	966			773			3,366			3,903
	Tubular	16			—			16			—
Raw steel capability utilization:(b)
	Flat-Rolled	58		%	60		%	55		%	67		%
	U. S. Steel Europe	77		%	61		%	67		%	78		%
	Tubular (c)	7		%	—		%	7		%	—		%

CAPITAL EXPENDITURES (dollars in millions)
	Flat-Rolled	$	93		$	179		$	484		$	943
	U. S. Steel Europe	15			42			79			153
	Tubular	26			48			159			145
	Other Businesses	—			5			3			11
	Total	$	134		$	274		$	725		$	1,252
(a) Excludes intersegment shipments.
(b) Based on annual raw steel production capability of 17.0 million net tons for Flat-Rolled, 5.0 million net tons for U. S. Steel Europe and 0.9 million net tons for Tubular.
(c) The Fairfield Electric Arc Furnace commenced operation in October 2020. The new 1.6 million ton electric arc furnace is currently used to feed our 0.9 million ton rounds caster. As a result, the Tubular segment now has annual raw steel production capability of 0.9 million tons.The 2020 production as a % of total capability amount is based on an October 1, 2020 start date.


UNITED STATES STEEL CORPORATION
CONDENSED STATEMENT OF OPERATIONS (Unaudited)

	Quarter Ended				Year Ended
	December 31,				December 31,
(Dollars in millions, except per share amounts)	2020		2019		2020		2019
NET SALES	$	2,562	$	2,824	$	9,741	$	12,937

Operating expenses (income):
Cost of sales (excludes items shown below)	2,384		2,781		9,558		12,082
Selling, general and administrative expenses	75		66		274		289
Depreciation, depletion and amortization	162		162		643		616
Loss (earnings) from investees	39		(11)		117		(79)
Asset impairment charges	—		—		263		—
Gain on equity investee transactions	—		—		(31)		—
Restructuring charges	8		221		138		275
Net gain on disposal of assets	(147)		(4)		(149)		(1)
Other loss (income), net	(2)		(15)		3		(15)
Total operating expenses	2,519		3,200		10,816		13,167

EARNINGS (LOSS) BEFORE INTEREST AND INCOME TAXES	43		(376)		(1,075)		(230)
Net interest and other financial costs	88		71		232		222

(LOSS) EARNINGS BEFORE INCOME TAXES	(45)		(447)		(1,307)		(452)
Income tax (benefit) provision	(94)		221		(142)		178

Net earnings (loss)	49		(668)		(1,165)		(630)
Less: Net earnings (loss) attributable to noncontrolling interests	—		—		—		—
NET EARNINGS (LOSS) ATTRIBUTABLE TO UNITED STATES STEEL CORPORATION	$	49	$	(668)	$	(1,165)	$	(630)

COMMON STOCK DATA:
Net (loss) earnings per share attributable to
United States Steel Corporation stockholders:
Basic	$	0.22	$	(3.93)	$	(5.92)	$	(3.67)
Diluted	$	0.22	$	(3.93)	$	(5.92)	$	(3.67)
Weighted average shares, in thousands
Basic	220,412		170,041		196,721		171,418
Diluted	223,781		170,041		196,721		171,418
Dividends paid per common share	$	0.01	$	0.05	$	0.04	$	0.20


UNITED STATES STEEL CORPORATION
CONDENSED CASH FLOW STATEMENT (Unaudited)
		Year Ended
		December 31,
(Dollars in millions)		2020		2019
Cash provided by (used in) operating activities:
	Net loss	$	(1,165)	$	(630)
	Depreciation, depletion and amortization	643		616
	Asset impairment charges	263		—
	Gain on equity investee transactions	(31)		—
	Restructuring charges	138		275
	Pensions and other post-employment benefits	(21)		101
	Deferred income taxes	(130)		202
	Net gain on sale of assets	(149)		(1)
	Working capital changes	575		276
	Income taxes receivable/payable	20		13
	Other operating activities	(5)		(170)
Total		138		682

Cash used in investing activities:
	Capital expenditures	(725)		(1,252)
	Investment in Big River Steel	(9)		(710)
	Proceeds from sale of assets	167		4
	Proceeds from sale of ownership interests in equity investees	8		—
	Investments, net	(4)		—
Total		(563)		(1,958)

Cash provided by (used in) financing activities:
	Net change in short-term debt, net of financing costs	170		—
	Revolving credit facilities - borrowings, net of financing costs	1,402		860
	Revolving credit facilities - repayments	(1,621)		(100)
	Issuance of long-term debt, net of financing costs	1,148		702
	Repayment of long-term debt	(13)		(155)
	Net proceeds from public offering of common stock	410		—
	Proceeds from Stelco Option agreement, net of financing costs	94		—
	Common stock repurchased	—		(88)
	Taxes paid for equity compensation plans	(1)		(7)
	Dividends paid	(8)		(35)
Total		1,581		1,177

Effect of exchange rate changes on cash		23		(2)

Net increase (decrease) in cash, cash equivalents and restricted cash		1,179		(101)
Cash, cash equivalents and restricted cash at beginning of the year		939		1,040

Cash, cash equivalents and restricted cash at end of the period		$	2,118	$	939


UNITED STATES STEEL CORPORATION
CONDENSED BALANCE SHEET (Unaudited)

		December 31,		December 31,
(Dollars in millions)		2020		2019
Cash and cash equivalents		$	1,985	$	749
Receivables, net		994		1,177
Inventories		1,402		1,785
Other current assets		51		102
	Total current assets	4,432		3,813
Operating lease assets		214		230
Property, plant and equipment, net		5,444		5,447
Investments and long-term receivables, net		1,177		1,466
Intangible, net		129		150
Deferred income tax benefits		22		19
Other noncurrent assets		641		483

	Total assets	$	12,059	$	11,608

Accounts payable and other accrued liabilities		1,884		2,054
Payroll and benefits payable		308		336
Short-term debt and current maturities of long-term debt		192		14
Other current liabilities		272		221
	Total current liabilities	2,656		2,625
Noncurrent operating lease liabilities		163		177
Long-term debt, less unamortized discount and debt issuance costs		4,695		3,627
Employee benefits		322		532
Other long-term liabilities		344		554
United States Steel Corporation stockholders' equity		3,786		4,092
Noncontrolling interests		93		1

	Total liabilities and stockholders' equity	$	12,059	$	11,608


UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET (LOSS) EARNINGS

		Quarter Ended				Year Ended
		December 31,				December 31,
(Dollars in millions, except per share amounts) (a)		2020		2019		2020		2019
Reconciliation to adjusted net (loss) earnings attributable to United States Steel Corporation
Net earnings (loss) attributable to United States Steel Corporation, as reported		$	49	(668)		$	(1,165)	$	(630)
	Asset impairment charge	—		—		263		—
	Restructuring and other charges	8		221		131		263
	Tubular inventory impairment	—		—		24		—
	Big River Steel debt extinguishment charges (b)	18		—		18		—
	Uncertain tax positions	—		—		13		—
	Big River Steel financing costs	8		—		8		—
	Big River Steel transaction and other related costs	3		—		3		—
	Fairless property sale	(145)		—		(145)		—
	Big River Steel options and forward adjustments	1		7		(39)		7
	Gain on previously held investment in UPI	—		—		(25)		—
	December 24, 2018 Clairton coke making facility fire	(2)		(3)		(6)		41
	Tax valuation allowance	—		334		—		334
Total adjustments		(109)		559		245		645
Adjusted net (loss) earnings attributable to United States Steel Corporation		$	(60)	$	(109)	$	(920)	$	15

Reconciliation to adjusted diluted net (loss) earnings per share
Diluted net earnings (loss) per share		0.22		(3.93)		(5.92)		(3.67)
	Asset impairment charge	—		—		1.34		—
	Restructuring and other charges	0.04		1.30		0.67		1.53
	Tubular inventory impairment	—		—		0.12		—
	Big River Steel debt extinguishment charges (b)	0.08		—		0.09		—
	Uncertain tax positions	—		—		0.07		—
	Big River Steel financing costs	0.04		—		0.04		—
	Big River Steel transaction and other related costs	0.01		—		0.02		—
	Fairless property sale	(0.66)		—		(0.74)		—
	Big River Steel options and forward adjustments	0.01		0.04		(0.20)		0.04
	Gain on previously held investment in UPI	—		—		(0.13)		—
	December 24, 2018 Clairton coke making facility fire	(0.01)		(0.01)		(0.03)		0.23
	Tax valuation allowance	—		1.96		—		1.96
Total adjustments		(0.49)		3.29		1.25		3.76
Adjusted diluted net (loss) earnings per share		$	(0.27)	$	(0.64)	$	(4.67)	$	0.09
(a) The adjustments included in this table for the three and twelve months ended December 31, 2020 have been tax effected for our European operations and not tax effected for our U.S. operations due to the full valuation allowance on our domestic deferred tax assets. The 2019 adjustments included in this table have been tax effected through the third quarter of 2019 as a valuation allowance was not applied to our deferred tax assets until the fourth quarter of 2019.
(b) The Big River Steel debt extinguishment charges were related to Big River Steel refinancing activity that was recognized by U. S. Steel through its equity method income.


UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA

		Quarter Ended				Year Ended
		December 31,				December 31,
(Dollars in millions)		2020		2019		2020		2019
Reconciliation to Adjusted EBITDA
	Net earnings (loss) attributable to United States Steel Corporation	$	49	$	(668)	$	(1,165)	$	(630)
	Income tax (benefit) provision	(94)		221		(142)		178
	Net interest and other financial costs	88		71		232		222
	Depreciation, depletion and amortization expense	162		162		643		616
EBITDA		205		(214)		(432)		386
	Asset impairment charge	—		—		263		—
	Restructuring and other charges	8		221		138		275
	Tubular inventory impairment	—		—		24		—
	Big River Steel debt extinguishment charges	18		—		18		—
	Big River Steel transaction and other related costs	3		—		3		—
	Fairless property sale	(145)		—		(145)		—
	Gain on previously held investment in UPI	—		—		(25)		—
	December 24, 2018 Clairton coke making facility fire	(2)		(3)		(6)		50
Adjusted EBITDA		$	87	$	4	$	(162)	$	711

Adjusted net earnings (loss) and adjusted net earnings (loss) per diluted share are non-GAAP measures that exclude the effects of items that include: the asset impairment charge, restructuring and other charges, the Fairless property sale, the Big River Steel options and forward adjustments, the December 24, 2018 Clairton coke making facility fire, the tax valuation allowance, loss on extinguishment of debt and other related costs, the USW labor agreement signing bonus and related costs, Granite City Works restart and related costs and gain on equity investee transactions that are not part of the Company's core operations (Adjustment Items). Adjusted EBITDA is also a non-GAAP measure that excludes the effects of certain Adjustment Items. We present adjusted net earnings (loss), adjusted net earnings (loss) per diluted share and adjusted EBITDA to enhance the understanding of our ongoing operating performance and established trends affecting our core operations, by excluding the effects of events that can obscure underlying trends. U. S. Steel's management considers adjusted net earnings (loss), adjusted net earnings (loss) per diluted share and adjusted EBITDA as alternative measures of operating performance and not alternative measures of the Company's liquidity. U. S. Steel’s management considers adjusted net earnings (loss), adjusted net earnings (loss) per diluted share and adjusted EBITDA useful to investors by facilitating a comparison of our operating performance to the operating performance of our competitors. Additionally, the presentation of adjusted net earnings (loss), adjusted net earnings (loss) per diluted share and adjusted EBITDA provides insight into management’s view and assessment of the Company’s ongoing operating performance, because management does not consider the adjusting items when evaluating the Company’s financial performance. Adjusted net earnings (loss), adjusted net earnings (loss) per diluted share and adjusted EBITDA should not be considered a substitute for net earnings (loss), earnings (loss) per diluted share or other financial measures as computed in accordance with U.S. GAAP and is not necessarily comparable to similarly titled measures used by other companies. A condensed consolidated statement of operations (unaudited), condensed consolidated cash flow statement (unaudited), condensed consolidated balance sheet (unaudited) and preliminary supplemental statistics (unaudited) for U. S. Steel are attached.

This release contains information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Generally, we have identified such forward-looking statements by using the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “target,” “forecast,” “aim,” “should,” “will,” “may,” and similar expressions or by using future dates in connection with any discussion of, among other things, operating performance, trends, events or developments that we expect or anticipate will occur in the future, statements relating to volume changes, share of sales and earnings per share changes, anticipated cost savings, potential capital and operational cash improvements, anticipated disruptions to our operations and industry due to the COVID-19 pandemic, changes in global supply and demand conditions and prices for our products, international trade duties and other aspects of international trade policy, the integration of Big River Steel in our existing business, business strategies related to the combined business and statements expressing general views about future operating results. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements are not historical facts, but instead represent only the Company’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company’s control. It is possible that the Company’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Management believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. Our Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our Company's historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to our ability to realize the level of cost savings, productivity improvement, growth or other anticipated benefits and additional future synergies, including in the time period anticipated, of the acquisition of Big River Steel; our ability to successfully integrate the businesses of Big River Steel into our existing businesses, including uncertainties associated with maintaining relationships with customers, vendors and employees, as well as differences in operating technologies, cultures, and management philosophies that may delay successful integration; additional debt, which we assumed in connection with the acquisition of Big River Steel and incurred to enhance our liquidity during the COVID-19 pandemic, may negatively impact our credit profile and limit our financial flexibility; business strategies for the combined company's operations; the diversion of management’s attention from ongoing business operations; our ability to retain and hire key personnel, including within the Big River Steel business, and to access our distribution

channels, including the availability of workforce and subcontractors; potential adverse reactions or changes to business relationships resulting from the completion of the acquisition of Big River Steel; unknown or underestimated liabilities and unforeseen increased expenses or delays associated with the acquisition and integration beyond current estimates; and the risks and uncertainties described in “Item 1A. Risk Factors” of our Annual report on Form 10-K, quarterly reports on Form 10-Q and those described from time to time in our future reports filed with the Securities and Exchange Commission. References to "we," "us," "our," the "Company," and "U. S. Steel," refer to United States Steel Corporation and its consolidated subsidiaries.

Founded in 1901, the United States Steel Corporation is a Fortune 250 company and a leading steel producer. Together with its subsidiary Big River Steel and an unwavering focus on safety, the company’s customer-centric Best of BothSM world-competitive integrated and mini mill technology strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers and packaging industries with high value-added steel products such as U. S. Steel’s proprietary XG3™ advanced high-strength steel. The company also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 26.2 million net tons. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe. For more information, please visit www.ussteel.com.