Document


Earnings Highlights

	Quarter Ended				Year Ended
	December 31,				December 31,
(Dollars in millions, except per share amounts)	2021		2020		2021		2020
Net Sales	$	5,622	$	2,562	$	20,275	$	9,741
Segment earnings (loss) before interest and income taxes
Flat-Rolled	$	890	$	(73)	$	2,630	$	(596)
Mini Mill (a)	366		—		1,206		—
U. S. Steel Europe	269		36		975		9
Tubular (b)	30		(32)		1		(179)
Other	(31)		(6)		(11)		(39)
Total segment earnings (loss) before interest and income taxes	$	1,524	$	(75)	$	4,801	$	(805)
Other items not allocated to segments	(379)		118		145		(270)
Earnings (loss) before interest and income taxes	$	1,145	$	43	$	4,946	$	(1,075)
Net interest and other financial costs	130		88		602		232
Income tax (benefit) expense	(54)		(94)		170		(142)
Net earnings (loss)	$	1,069	$	49	$	4,174	$	(1,165)
Earnings (loss) per diluted share	$	3.75	$	0.22	$	14.88	$	(5.92)

Adjusted net earnings (loss) (c)	$	1,038	$	(60)	$	3,780	$	(920)
Adjusted net earnings (loss) per diluted share (c)	$	3.64	$	(0.27)	$	13.48	$	(4.67)
Adjusted earnings (loss) before interest, income taxes, depreciation and amortization (EBITDA) (c)	$	1,728	$	87	$	5,592	$	(162)
(a) Mini Mill segment, added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel, does not include the electric arc furnace (EAF) at our Fairfield Tubular Operations in Fairfield, Alabama.
(b) The Fairfield EAF is included in the Tubular segment.
(c) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts.

“2021 was a year of records and we delivered with record earnings and free cash flow and record safety, environmental, quality, and reliability performance,” commented U. S. Steel President and CEO David B. Burritt. “We enter 2022 from a position of strength and are relentlessly focused on continuing our disciplined approach to creating stockholder value. Our balance sheet has been transformed, record cash significantly de-risks strategy execution, and our capital allocation priorities have enhanced direct stockholder returns. We are a fundamentally different company from a year ago and expect 2022 to be another strong year.”

Commenting on the Company's Best for AllSM strategy, Burritt continued, “Through our Best for All customer-centric strategy, U. S. Steel continues to gain market share with our clear competitive advantages: low-cost iron ore, mini mill steelmaking, and best-in-class finishing capabilities. 2022 will be another year of strategic progress and upon completion, our announced strategic investments will deliver approximately $850 million of incremental through-cycle earnings power with winning customer solutions while reducing our capital and carbon intensity. We are becoming a better, not bigger company as we continue to innovate and develop the next generation of our sustainable steel solutions for our people and our planet."


UNITED STATES STEEL CORPORATION
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)
		Quarter Ended						Year Ended
		December 31,						December 31,
		2021			2020			2021			2020
OPERATING STATISTICS
Average realized price: ($/net ton unless otherwise noted) (a)
	Flat-Rolled	1,432			731			1,172			718
	Mini Mill (b)	1,490			—			1,314			—
	U. S. Steel Europe	1,075			652			966			626
	U. S. Steel Europe (€/net ton)	940			547			816			549
	Tubular	1,968			1,267			1,696			1,271
Steel shipments (thousands of net tons): (a)
	Flat-Rolled	2,032			2,257			9,018			8,711
	Mini Mill (b)	559			—			2,230			—
	U. S. Steel Europe	1,028			840			4,302			3,041
	Tubular	127			74			444			464
	Total Steel Shipments	3,746			3,171			15,994			12,216

Intersegment steel (unless otherwise noted) shipments (thousands of net tons):
	Flat-Rolled to Tubular	—			—			—			101
	Flat-Rolled to U. S. Steel Europe (iron ore pellets and fines)	—			506			439			1,418
	Mini Mill (b) to Flat-Rolled	88			—			388			—
Raw steel production (thousands of net tons):
	Flat-Rolled	2,181			2,490			9,881			9,313
	Mini Mill (b)	681			—			2,688			—
	U. S. Steel Europe	1,181			966			4,931			3,366
	Tubular (c)	140			16			464			16
Raw steel capability utilization:(d)
	Flat-Rolled	51		%	58		%	58		%	55		%
	Mini Mill (b)	82		%	—		%	81		%	—		%
	U. S. Steel Europe	94		%	77		%	99		%	67		%
	Tubular	62		%	7		%	52		%	7		%

CAPITAL EXPENDITURES (dollars in millions)
	Flat-Rolled	150			93			422			484
	Mini Mill (b) (e)	229			—			331			—
	U. S. Steel Europe	18			15			57			79
	Tubular	5			26			51			159
	Other	1			—			2			3
	Total	$	403		$	134		$	863		$	725
(a) Excludes intersegment shipments.
(b) Mini Mill segment added after January 15, 2021 with purchase of the remaining equity interest in Big River Steel.
(c) Tubular segment raw steel added in October 2020 with the start-up of the new electric arc furnace.
(d) Based on annual raw steel production capability of 17.0 million net tons for Flat-Rolled, 3.3 million for Mini Mill, 5.0 million net tons for U. S. Steel Europe and 0.9 million net tons for Tubular.
(e) Includes Mini Mill #2 capital expenditures of $144 million for the three and twelve months ended December 31, 2021.


UNITED STATES STEEL CORPORATION
CONDENSED STATEMENT OF OPERATIONS (Unaudited)
	Quarter Ended				Year Ended
	December 31,				December 31,
(Dollars in millions, except per share amounts)	2021		2020		2021		2020
NET SALES	$	5,622	$	2,562	$	20,275	$	9,741

Operating expenses (income):
Cost of sales (excludes items shown below)	3,900		2,381		14,533		9,555
Selling, general and administrative expenses	110		78		426		277
Depreciation, depletion and amortization	204		162		791		643
(Earnings) Loss from investees	(64)		39		(170)		117
Gain on sale of Transtar	—		—		(506)		—
Asset impairment charges	245		—		273		263
Gain on equity investee transactions	—		—		(111)		(31)
Restructuring and other charges	91		8		128		138
Net losses (gains) on sale of assets	1		(147)		(7)		(149)
Other (gains) losses, net	(10)		(2)		(28)		3
Total operating expenses	4,477		2,519		15,329		10,816

EARNINGS (LOSS) BEFORE INTEREST AND INCOME TAXES	1,145		43		4,946		(1,075)
Net interest and other financial costs	130		88		602		232

EARNINGS (LOSS) BEFORE INCOME TAXES	1,015		(45)		4,344		(1,307)
Income tax (benefit) expense	(54)		(94)		170		(142)

Net earnings (loss)	1,069		49		4,174		(1,165)
Less: Net earnings (loss) attributable to noncontrolling interests	—		—		—		—
NET EARNINGS (LOSS) ATTRIBUTABLE TO UNITED STATES STEEL CORPORATION	$	1,069	$	49	$	4,174	$	(1,165)

COMMON STOCK DATA:
Net earnings (loss) per share attributable to
United States Steel Corporation stockholders:
Basic	$	3.97	$	0.22	$	15.77	$	(5.92)
Diluted	$	3.75	$	0.22	$	14.88	$	(5.92)
Weighted average shares, in thousands
Basic	268,995		220,412		264,667		196,721
Diluted	285,321		223,781		280,444		196,721
Dividends paid per common share	$	0.05	$	0.01	$	0.08	$	0.04


UNITED STATES STEEL CORPORATION
CONDENSED CASH FLOW STATEMENT (Unaudited)
		Year Ended December 31,
(Dollars in millions)		2021		2020
Cash provided by operating activities:
	Net earnings (loss)	$	4,174	$	(1,165)
	Depreciation, depletion and amortization	791		643
	Gain on sale of Transtar	(506)		—
	Asset impairment charges	273		263
	Gain on equity investee transactions	(111)		(31)
	Restructuring and other charges	128		138
	Loss on debt extinguishment	292		—
	Pensions and other post-employment benefits	15		(21)
	Deferred income taxes	(52)		(130)
	Net gain on sale of assets	(7)		(149)
	Working capital changes	(849)		575
	Income taxes receivable/payable	161		20
	Other operating activities	(219)		(5)
Total		4,090		138

Cash used in investing activities:
	Capital expenditures	(863)		(725)
	Acquisition of Big River Steel, net of cash acquired	(625)		—
	Investment in Big River Steel	—		(9)
	Proceeds from sale of Transtar	627		—
	Proceeds from sale of assets	26		167
	Proceeds from sale of ownership interests in equity investees	—		8
	Other investing activities	(5)		(4)
Total		(840)		(563)

Cash provided by (used in) financing activities:
	Issuance of short-term debt, net of financing costs	—		240
	Repayment of short-term debt	(180)		(70)
	Revolving credit facilities - borrowings, net of financing costs	50		1,402
	Revolving credit facilities - repayments	(911)		(1,621)
	Issuance of long-term debt, net of financing costs	864		1,148
	Repayment of long-term debt	(3,183)		(13)
	Proceeds from public offering of common stock	790		410
	Proceed from Stelco Option Agreement	—		94
	Common stock repurchased	(150)		—
	Other financing activities	(27)		(9)
Total		(2,747)		1,581

Effect of exchange rate changes on cash		(21)		23

Net increase in cash, cash equivalents and restricted cash		482		1,179
Cash, cash equivalents and restricted cash at beginning of the year		2,118		939

Cash, cash equivalents and restricted cash at end of the year		$	2,600	$	2,118


UNITED STATES STEEL CORPORATION
CONDENSED BALANCE SHEET (Unaudited)

		December 31,		December 31,
(Dollars in millions)		2021		2020
Cash and cash equivalents		$	2,522	$	1,985
Receivables, net		2,089		994
Inventories		2,210		1,402
Other current assets		331		51
	Total current assets	7,152		4,432
Operating lease assets		185		214
Property, plant and equipment, net		7,254		5,444
Investments and long-term receivables, net		694		1,177
Intangible, net		519		129
Goodwill		920		4
Other noncurrent assets		1,092		659

	Total assets	$	17,816	$	12,059

Accounts payable and other accrued liabilities		2,908		1,884
Payroll and benefits payable		425		308
Short-term debt and current maturities of long-term debt		28		192
Other current liabilities		491		272
	Total current liabilities	3,852		2,656
Noncurrent operating lease liabilities		136		163
Long-term debt, less unamortized discount and debt issuance costs		3,863		4,695
Employee benefits		235		322
Other long-term liabilities		627		344
United States Steel Corporation stockholders' equity		9,010		3,786
Noncontrolling interests		93		93

	Total liabilities and stockholders' equity	$	17,816	$	12,059


UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET EARNINGS (LOSS)
		Three Months Ended								Twelve Months Ended
(in millions of dollars)		2021				2020				2021				2020
Net earnings (loss) and diluted net earnings (loss) per share attributable to United States Steel Corporation, as reported		$	1,069	$	3.75	$	49	$	0.22	$	4,174	$	14.88	$	(1,165)	$	(5.92)
	Debt extinguishment	10				18				291				18
	Restructuring and other charges	91				8				128				131
	Asset impairment charges	245				—				273				287
	Big River Steel - acquisition-related items (a)	(1)				11				35				11
	Losses (gains) on assets sold & previously held investments (b)	1				(144)				(118)				(209)
	Gain on sale of Transtar	—				—				(506)				—
	Net reversal of tax valuation allowance (c)	(513)				—				(633)				—
	Pension de-risking	93				—				93				—
	Environmental remediation charge	43				—				43				—
	Other items	—				(2)				—				7
Adjusted net earnings (loss) and diluted net earnings (loss) per share attributable to United States Steel Corporation		$	1,038	$	3.64	$	(60)	$	(0.27)	$	3,780	$	13.48	$	(920)	$	(4.67)
Weighted average diluted ordinary shares outstanding, in millions		285.3				223.8				280.4				196.7
(a)	The year ended December 31, 2021 includes the amortization of the step-up to fair value for acquired inventory ($24 million), acquisition-related costs ($9 million), and a net loss of $2 million related to unrealized mark-to-market movement from acquired derivatives.
(b)	The three months ended December 31, 2020 primarily consists of a gain of $145 million from the sale of property at the Fairless facility. The year ended December 31, 2021 consists of a gain of $111 million on the previously held investment in Big River Steel, a gain of $15 million for the sale of property, partially offset by a loss of $8 million on the sale of a subsidiary of USSE. The year ended December 31, 2020 consists of a gain of $145 million from the sale of property at the Fairless facility, a net gain of $39 million from the earnings impact of the change in fair value of options related to our previous 49.9% ownership interest in Big River Steel and the recognition of the contingent forward for the exercise of the call option to purchase the remaining interest in Big River Steel, and a gain of $25 million from the previously held investment in UPI.
(c)	The $513 million and $633 million adjustments recorded in the three and twelve months ended December 31, 2021, respectively, were related to partial reversals of the tax valuation allowance recorded against the Company's net domestic deferred tax asset as a result of the Company's three-year cumulative income position and a change in the projections of income in future years. The adjustment of $513 million for the three months ended December 31, 2021 includes the reversals of the valuation allowance due to the finalization of current year earnings.


UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA
		Quarter Ended				Year Ended
		December 31,				December 31,
(Dollars in millions)		2021		2020		2021		2020
Net earnings (loss) attributable to United States Steel Corporation		1,069		49		4,174		(1,165)
Income tax (benefit) provision		(54)		(94)		170		(142)
Net interest and other financial costs		130		88		602		232
Depreciation, depletion and amortization expense		204		162		791		643
EBITDA		1,349		205		5,737		(432)
	Restructuring and other charges	91		8		128		138
	Asset impairment charges	245		—		273		287
	Big River Steel - acquisition-related items	(1)		3		35		3
	Losses (gains) on assets sold & previously held investments	1		(145)		(118)		(170)
	Gain on sale of Transtar	—		—		(506)		—
	Environmental remediation charge	43		—		43		—
	Other Items	—		16		—		12
Adjusted EBITDA		$	1,728	$	87	$	5,592	$	(162)

Adjusted net earnings (loss) and adjusted net earnings (loss) per diluted share are non-GAAP measures that exclude the effects of items that include: debt extinguishment, restructuring and other charges, asset impairment charges, Big River Steel - acquisition-related items, losses (gains) on assets sold & previously held investments, gain on sale of Transtar, net reversal of tax valuation allowance, pension de-risking, environmental remediation charge and other items (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, financial performance, the construction or operation of new and existing facilities, the timing, size and form of stock repurchase transactions, 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, 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, the risks and uncertainties described in “Item 1A. Risk Factors” in our Annual report on Form 10-K for the year ended December 31, 2020 and those described from time to time in our future reports filed with the Securities and Exchange Commission.

Founded in 1901, United States Steel Corporation is a leading steel producer. With an unwavering focus on safety, the company’s customer-centric Best for AllSM 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 22.4 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.