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Share Name | Share Symbol | Market | Type |
---|---|---|---|
US Steel Corp | NYSE:X | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.44 | -1.19% | 36.61 | 37.06 | 36.25 | 36.60 | 2,191,518 | 00:59:39 |
|
[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
1-16811
|
|
25-1897152
|
(State or other
jurisdiction of
incorporation)
|
|
(Commission
File Number)
|
|
(IRS Employer
Identification No.)
|
600 Grant Street, Pittsburgh, PA
|
|
15219-2800
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
Large accelerated filer
P
|
|
Accelerated filer
|
|
Non-accelerated filer
|
|
Smaller reporting company
|
|
|
|
|
(Do not check if a smaller reporting company)
|
|
|
|
Page
|
||
PART I – FINANCIAL INFORMATION
|
|
||
|
Item 1.
|
Financial Statements:
|
|
|
|
||
|
|
||
|
|
||
|
|
||
|
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||
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Item 2.
|
||
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Item 3.
|
||
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Item 4.
|
||
|
|
||
PART II – OTHER INFORMATION
|
|
||
|
Item 1.
|
||
|
Item 4.
|
||
|
Item 5.
|
||
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Item 6.
|
||
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(Dollars in millions, except per share amounts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net sales:
|
|
|
|
|
|
|
|
|
||||||||
Net sales
|
|
$
|
2,370
|
|
|
$
|
2,446
|
|
|
$
|
6,716
|
|
|
$
|
7,901
|
|
Net sales to related parties (Note 18)
|
|
316
|
|
|
384
|
|
|
895
|
|
|
1,101
|
|
||||
Total
|
|
2,686
|
|
|
2,830
|
|
|
7,611
|
|
|
9,002
|
|
||||
Operating expenses (income):
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales (excludes items shown below)
|
|
2,360
|
|
|
2,654
|
|
|
7,193
|
|
|
8,512
|
|
||||
Selling, general and administrative expenses
|
|
73
|
|
|
99
|
|
|
206
|
|
|
308
|
|
||||
Depreciation, depletion and amortization
|
|
126
|
|
|
136
|
|
|
384
|
|
|
418
|
|
||||
Earnings from investees
|
|
(18
|
)
|
|
(6
|
)
|
|
(91
|
)
|
|
(29
|
)
|
||||
Impairment of intangible assets (Note 5)
|
|
14
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
Losses associated with U. S. Steel Canada Inc. (Note 21)
|
|
—
|
|
|
16
|
|
|
—
|
|
|
271
|
|
||||
Restructuring and other charges (Note 19)
|
|
(3
|
)
|
|
103
|
|
|
1
|
|
|
275
|
|
||||
Net loss (gain) on disposal of assets
|
|
3
|
|
|
(1
|
)
|
|
6
|
|
|
(2
|
)
|
||||
Other income, net
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Total
|
|
2,554
|
|
|
3,000
|
|
|
7,712
|
|
|
9,751
|
|
||||
Earnings (loss) before interest and income taxes
|
|
132
|
|
|
(170
|
)
|
|
(101
|
)
|
|
(749
|
)
|
||||
Interest expense
|
|
58
|
|
|
56
|
|
|
173
|
|
|
160
|
|
||||
Interest income
|
|
(2
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|
(2
|
)
|
||||
Loss on debt extinguishment
|
|
—
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||
Other financial (income) costs
|
|
6
|
|
|
(1
|
)
|
|
18
|
|
|
12
|
|
||||
Net interest and other financial costs (Note 7)
|
|
62
|
|
|
53
|
|
|
208
|
|
|
170
|
|
||||
Earnings (loss) before income taxes
|
|
70
|
|
|
(223
|
)
|
|
(309
|
)
|
|
(919
|
)
|
||||
Income tax provision (benefit) (Note 9)
|
|
19
|
|
|
(50
|
)
|
|
26
|
|
|
(410
|
)
|
||||
Net earnings (loss)
|
|
51
|
|
|
(173
|
)
|
|
(335
|
)
|
|
(509
|
)
|
||||
Less: Net earnings attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net earnings (loss) attributable to United States Steel Corporation
|
|
$
|
51
|
|
|
$
|
(173
|
)
|
|
$
|
(335
|
)
|
|
$
|
(509
|
)
|
Earnings (loss) per common share
(Note 10):
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share attributable to United States Steel Corporation stockholders:
|
|
|
|
|
|
|
|
|
||||||||
-Basic
|
|
$
|
0.32
|
|
|
$
|
(1.18
|
)
|
|
$
|
(2.22
|
)
|
|
$
|
(3.49
|
)
|
-Diluted
|
|
$
|
0.32
|
|
|
$
|
(1.18
|
)
|
|
$
|
(2.22
|
)
|
|
$
|
(3.49
|
)
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(Dollars in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net earnings (loss)
|
|
$
|
51
|
|
|
$
|
(173
|
)
|
|
$
|
(335
|
)
|
|
$
|
(509
|
)
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Changes in foreign currency translation adjustments
|
|
10
|
|
|
(5
|
)
|
|
41
|
|
|
(83
|
)
|
||||
Changes in pension and other employee benefit accounts
|
|
48
|
|
|
(131
|
)
|
|
(134
|
)
|
|
(44
|
)
|
||||
Changes in unrecognized (losses) gains on other
|
|
(4
|
)
|
|
—
|
|
|
17
|
|
|
—
|
|
||||
Total other comprehensive income (loss), net of tax
|
|
54
|
|
|
(136
|
)
|
|
(76
|
)
|
|
(127
|
)
|
||||
Comprehensive income (loss) including noncontrolling interest
|
|
105
|
|
|
(309
|
)
|
|
(411
|
)
|
|
(636
|
)
|
||||
Comprehensive income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Comprehensive income (loss) attributable to United States Steel Corporation
|
|
$
|
105
|
|
|
$
|
(309
|
)
|
|
$
|
(411
|
)
|
|
$
|
(636
|
)
|
(Dollars in millions)
|
|
(Unaudited)
September 30, 2016 |
|
December 31,
2015 |
||||
Assets
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
1,445
|
|
|
$
|
755
|
|
Receivables, less allowance of $26 and $28
|
|
1,014
|
|
|
864
|
|
||
Receivables from related parties, less allowance of $270 and $254 (Note 18)
|
|
182
|
|
|
199
|
|
||
Inventories (Note 11)
|
|
1,742
|
|
|
2,074
|
|
||
Other current assets
|
|
28
|
|
|
25
|
|
||
Total current assets
|
|
4,411
|
|
|
3,917
|
|
||
Property, plant and equipment
|
|
14,453
|
|
|
14,253
|
|
||
Less accumulated depreciation and depletion
|
|
10,235
|
|
|
9,842
|
|
||
Total property, plant and equipment, net
|
|
4,218
|
|
|
4,411
|
|
||
Investments and long-term receivables, less allowance of $7 and $7
|
|
538
|
|
|
540
|
|
||
Long-term receivables from related parties, less allowance of $1,624 and $1,446 (Note 18)
|
|
—
|
|
|
—
|
|
||
Intangibles – net (Note 5)
|
|
177
|
|
|
196
|
|
||
Deferred income tax benefits (Note 9)
|
|
6
|
|
|
15
|
|
||
Other noncurrent assets
|
|
117
|
|
|
88
|
|
||
Total assets
|
|
$
|
9,467
|
|
|
$
|
9,167
|
|
Liabilities
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable and other accrued liabilities
|
|
$
|
1,566
|
|
|
$
|
1,412
|
|
Accounts payable to related parties (Note 18)
|
|
89
|
|
|
81
|
|
||
Payroll and benefits payable
|
|
464
|
|
|
462
|
|
||
Accrued taxes
|
|
108
|
|
|
99
|
|
||
Accrued interest
|
|
78
|
|
|
49
|
|
||
Current portion of long-term debt (Note 13)
|
|
92
|
|
|
45
|
|
||
Total current liabilities
|
|
2,397
|
|
|
2,148
|
|
||
Long-term debt, less unamortized discount and debt issuance costs (Note 13)
|
|
2,988
|
|
|
3,093
|
|
||
Employee benefits
|
|
1,097
|
|
|
1,101
|
|
||
Deferred income tax liabilities (Note 9)
|
|
28
|
|
|
29
|
|
||
Deferred credits and other noncurrent liabilities
|
|
355
|
|
|
359
|
|
||
Total liabilities
|
|
6,865
|
|
|
6,730
|
|
||
Contingencies and commitments (Note 20)
|
|
|
|
|
||||
Stockholders’ Equity
(Note 16):
|
|
|
|
|
||||
Common stock (176,424,554 shares and 150,925,911 shares issued)
(Notes 10 and 22) |
|
176
|
|
|
151
|
|
||
Treasury stock, at cost (3,966,770 and 4,644,867 shares)
|
|
(277
|
)
|
|
(339
|
)
|
||
Additional paid-in capital
|
|
4,092
|
|
|
3,603
|
|
||
(Accumulated deficit) retained earnings
|
|
(145
|
)
|
|
190
|
|
||
Accumulated other comprehensive loss (Note 17)
|
|
(1,245
|
)
|
|
(1,169
|
)
|
||
Total United States Steel Corporation stockholders’ equity
|
|
2,601
|
|
|
2,436
|
|
||
Noncontrolling interests
|
|
1
|
|
|
1
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
9,467
|
|
|
$
|
9,167
|
|
|
|
Nine Months Ended
September 30, |
||||||
(Dollars in millions)
|
|
2016
|
|
2015
|
||||
Increase (decrease) in cash and cash equivalents
|
|
|
|
|
||||
Operating activities:
|
|
|
|
|
||||
Net loss
|
|
$
|
(335
|
)
|
|
$
|
(509
|
)
|
Adjustments to reconcile to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
|
384
|
|
|
418
|
|
||
Impairment of intangible assets (Note 5)
|
|
14
|
|
|
—
|
|
||
Losses associated with U. S. Steel Canada Inc. (Note 21)
|
|
—
|
|
|
271
|
|
||
Restructuring and other charges (Note 19)
|
|
1
|
|
|
275
|
|
||
Provision for doubtful accounts
|
|
—
|
|
|
(13
|
)
|
||
Pensions and other postretirement benefits
|
|
(38
|
)
|
|
(33
|
)
|
||
Deferred income taxes
|
|
9
|
|
|
(385
|
)
|
||
Net loss (gain) on disposal of assets
|
|
6
|
|
|
(2
|
)
|
||
Distributions received, net of equity investees earnings
|
|
(86
|
)
|
|
(26
|
)
|
||
Changes in:
|
|
|
|
|
||||
Current receivables
|
|
(127
|
)
|
|
529
|
|
||
Inventories
|
|
339
|
|
|
38
|
|
||
Current accounts payable and accrued expenses
|
|
279
|
|
|
(261
|
)
|
||
Income taxes receivable/payable
|
|
14
|
|
|
7
|
|
||
Bank checks outstanding
|
|
15
|
|
|
8
|
|
||
All other, net
|
|
102
|
|
|
(64
|
)
|
||
Net cash provided by operating activities
|
|
577
|
|
|
253
|
|
||
Investing activities:
|
|
|
|
|
||||
Capital expenditures
|
|
(268
|
)
|
|
(354
|
)
|
||
Acquisitions (Note 4)
|
|
—
|
|
|
(25
|
)
|
||
Disposal of assets
|
|
6
|
|
|
2
|
|
||
Change in restricted cash, net
|
|
(3
|
)
|
|
8
|
|
||
Investments, net
|
|
(17
|
)
|
|
(2
|
)
|
||
Net cash used in investing activities
|
|
(282
|
)
|
|
(371
|
)
|
||
Financing activities:
|
|
|
|
|
||||
Issuance of long-term debt, net of financing costs
|
|
958
|
|
|
—
|
|
||
Repayment of long-term debt
|
|
(1,019
|
)
|
|
(18
|
)
|
||
Settlement of contingent consideration
|
|
(15
|
)
|
|
—
|
|
||
Net proceeds from public offering of common stock (Note 22)
|
|
482
|
|
|
—
|
|
||
Receipts from exercise of stock options
|
|
4
|
|
|
1
|
|
||
Dividends paid
|
|
(22
|
)
|
|
(22
|
)
|
||
Net cash provided by (used in) financing activities
|
|
388
|
|
|
(39
|
)
|
||
Effect of exchange rate changes on cash
|
|
7
|
|
|
(32
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
|
690
|
|
|
(189
|
)
|
||
Cash and cash equivalents at beginning of year
|
|
755
|
|
|
1,354
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
1,445
|
|
|
$
|
1,165
|
|
(In millions)
Three Months Ended September 30, 2016
|
|
Customer
Sales |
|
Intersegment
Sales |
|
Net
Sales |
|
Earnings
(Loss) from Investees |
|
Earnings (Loss) Before Interest and Income Taxes
|
||||||||||
Flat-Rolled
|
|
$
|
1,986
|
|
|
$
|
—
|
|
|
$
|
1,986
|
|
|
$
|
18
|
|
|
$
|
114
|
|
USSE
|
|
575
|
|
|
1
|
|
|
576
|
|
|
—
|
|
|
81
|
|
|||||
Tubular
|
|
114
|
|
|
—
|
|
|
114
|
|
|
1
|
|
|
(75
|
)
|
|||||
Total reportable segments
|
|
2,675
|
|
|
1
|
|
|
2,676
|
|
|
19
|
|
|
120
|
|
|||||
Other Businesses
|
|
11
|
|
|
27
|
|
|
38
|
|
|
(1
|
)
|
|
18
|
|
|||||
Reconciling Items and Eliminations
|
|
—
|
|
|
(28
|
)
|
|
(28
|
)
|
|
—
|
|
|
(6
|
)
|
|||||
Total
|
|
$
|
2,686
|
|
|
$
|
—
|
|
|
$
|
2,686
|
|
|
$
|
18
|
|
|
$
|
132
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Flat-Rolled
|
|
$
|
2,070
|
|
|
$
|
72
|
|
|
$
|
2,142
|
|
|
$
|
4
|
|
|
$
|
(18
|
)
|
USSE
|
|
546
|
|
|
1
|
|
|
547
|
|
|
—
|
|
|
18
|
|
|||||
Tubular
|
|
199
|
|
|
—
|
|
|
199
|
|
|
2
|
|
|
(50
|
)
|
|||||
Total reportable segments
|
|
2,815
|
|
|
73
|
|
|
2,888
|
|
|
6
|
|
|
(50
|
)
|
|||||
Other Businesses
|
|
15
|
|
|
28
|
|
|
43
|
|
|
—
|
|
|
10
|
|
|||||
Reconciling Items and Eliminations
|
|
—
|
|
|
(101
|
)
|
|
(101
|
)
|
|
—
|
|
|
(130
|
)
|
|||||
Total
|
|
$
|
2,830
|
|
|
$
|
—
|
|
|
$
|
2,830
|
|
|
$
|
6
|
|
|
$
|
(170
|
)
|
(In millions)
Nine Months Ended September 30, 2016
|
|
Customer
Sales |
|
Intersegment
Sales |
|
Net
Sales |
|
Earnings
(Loss) from Investees |
|
Earnings (Loss) Before Interest and Income Taxes
|
||||||||||
Flat-Rolled
|
|
$
|
5,643
|
|
|
$
|
16
|
|
|
$
|
5,659
|
|
|
$
|
88
|
|
|
$
|
(68
|
)
|
USSE
|
|
1,616
|
|
|
2
|
|
|
1,618
|
|
|
—
|
|
|
122
|
|
|||||
Tubular
|
|
303
|
|
|
2
|
|
|
305
|
|
|
5
|
|
|
(217
|
)
|
|||||
Total reportable segments
|
|
7,562
|
|
|
20
|
|
|
7,582
|
|
|
93
|
|
|
(163
|
)
|
|||||
Other Businesses
|
|
49
|
|
|
80
|
|
|
129
|
|
|
(2
|
)
|
|
42
|
|
|||||
Reconciling Items and Eliminations
|
|
—
|
|
|
(100
|
)
|
|
(100
|
)
|
|
—
|
|
|
20
|
|
|||||
Total
|
|
$
|
7,611
|
|
|
$
|
—
|
|
|
$
|
7,611
|
|
|
$
|
91
|
|
|
$
|
(101
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine Months Ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Flat-Rolled
|
|
$
|
6,388
|
|
|
$
|
245
|
|
|
$
|
6,633
|
|
|
$
|
26
|
|
|
$
|
(149
|
)
|
USSE
|
|
1,837
|
|
|
2
|
|
|
1,839
|
|
|
—
|
|
|
75
|
|
|||||
Tubular
|
|
730
|
|
|
—
|
|
|
730
|
|
|
6
|
|
|
(115
|
)
|
|||||
Total reportable segments
|
|
8,955
|
|
|
247
|
|
|
9,202
|
|
|
32
|
|
|
(189
|
)
|
|||||
Other Businesses
|
|
47
|
|
|
81
|
|
|
128
|
|
|
(3
|
)
|
|
24
|
|
|||||
Reconciling Items and Eliminations
|
|
—
|
|
|
(328
|
)
|
|
(328
|
)
|
|
—
|
|
|
(584
|
)
|
|||||
Total
|
|
$
|
9,002
|
|
|
$
|
—
|
|
|
$
|
9,002
|
|
|
$
|
29
|
|
|
$
|
(749
|
)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(In millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Items not allocated to segments:
|
|
|
|
|
|
|
|
|
||||||||
Postretirement benefit (expense)
(a)
|
|
$
|
8
|
|
|
$
|
(11
|
)
|
|
$
|
36
|
|
|
$
|
(38
|
)
|
Other items not allocated to segments:
|
|
|
|
|
|
|
|
|
||||||||
Impairment of intangible assets
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
||||
Loss on shutdown of Fairfield flat-rolled operations
(b)(d)
|
|
—
|
|
|
(91
|
)
|
|
—
|
|
|
(91
|
)
|
||||
Losses associated with U. S. Steel Canada Inc. (Note 21)
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(271
|
)
|
||||
Restructuring and other charges and adjustments
(c)
|
|
—
|
|
|
(12
|
)
|
|
(2
|
)
|
|
(31
|
)
|
||||
Loss on shutdown of coke production facilities
(d)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(153
|
)
|
||||
Total other items not allocated to segments
|
|
(14
|
)
|
|
(119
|
)
|
|
(16
|
)
|
|
(546
|
)
|
||||
Total reconciling items
|
|
$
|
(6
|
)
|
|
$
|
(130
|
)
|
|
$
|
20
|
|
|
$
|
(584
|
)
|
|
|
|
|
As of September 30, 2016
|
|
As of December 31, 2015
|
||||||||||||||||||||
(In millions)
|
|
Useful
Lives |
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net
Amount |
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net
Amount |
||||||||||||
Customer relationships
|
|
22-23 Years
|
|
$
|
132
|
|
|
$
|
57
|
|
|
$
|
75
|
|
|
$
|
132
|
|
|
$
|
52
|
|
|
$
|
80
|
|
Other
|
|
2-20 Years
|
|
17
|
|
|
9
|
|
|
8
|
|
|
17
|
|
|
8
|
|
|
9
|
|
||||||
Total amortizable intangible assets
|
|
|
|
$
|
149
|
|
|
$
|
66
|
|
|
$
|
83
|
|
|
$
|
149
|
|
|
$
|
60
|
|
|
$
|
89
|
|
|
|
Pension
Benefits |
|
Other
Benefits |
|
||||||||||||
(In millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Service cost
|
|
$
|
14
|
|
|
$
|
25
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
Interest cost
|
|
64
|
|
|
66
|
|
|
25
|
|
|
24
|
|
|
||||
Expected return on plan assets
|
|
(106
|
)
|
|
(109
|
)
|
|
(38
|
)
|
|
(38
|
)
|
|
||||
Amortization of prior service cost
|
|
2
|
|
|
4
|
|
|
6
|
|
|
(2
|
)
|
|
||||
Amortization of actuarial net loss
|
|
33
|
|
|
60
|
|
|
1
|
|
|
2
|
|
|
||||
Net periodic benefit cost (income), excluding below
|
|
7
|
|
|
46
|
|
|
(1
|
)
|
|
(9
|
)
|
|
||||
Multiemployer plans
|
|
16
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
||||
Settlement, termination and curtailment losses
|
|
10
|
|
|
24
|
|
(a)
|
—
|
|
|
(4
|
)
|
(a)
|
||||
Net periodic benefit cost (income)
|
|
$
|
33
|
|
|
$
|
87
|
|
|
$
|
(1
|
)
|
|
$
|
(13
|
)
|
|
|
|
Pension
Benefits |
|
Other
Benefits |
|
||||||||||||
(In millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Service cost
|
|
$
|
40
|
|
|
$
|
78
|
|
|
$
|
15
|
|
|
$
|
16
|
|
|
Interest cost
|
|
194
|
|
|
197
|
|
|
74
|
|
|
73
|
|
|
||||
Expected return on plan assets
|
|
(316
|
)
|
|
(330
|
)
|
|
(113
|
)
|
|
(115
|
)
|
|
||||
Amortization of prior service cost
|
|
8
|
|
|
13
|
|
|
19
|
|
|
(5
|
)
|
|
||||
Amortization of actuarial net loss
|
|
97
|
|
|
188
|
|
|
2
|
|
|
5
|
|
|
||||
Net periodic benefit cost (income), excluding below
|
|
23
|
|
|
146
|
|
|
(3
|
)
|
|
(26
|
)
|
|
||||
Multiemployer plans
|
|
48
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
||||
Settlement, termination and curtailment losses
|
|
13
|
|
|
29
|
|
(a)
|
—
|
|
|
(4
|
)
|
(a)
|
||||
Net periodic benefit cost (income)
|
|
$
|
84
|
|
|
$
|
226
|
|
|
$
|
(3
|
)
|
|
$
|
(30
|
)
|
|
|
2016
|
|
2015
|
||||||||
Grant Details
|
Shares
(a)
|
Fair Value
(b)
|
|
Shares
(a)
|
Fair Value
(b)
|
||||||
Stock Options
|
1,333,210
|
|
$
|
6.24
|
|
|
1,638,540
|
|
$
|
10.02
|
|
Restricted Stock Units
|
1,117,495
|
|
$
|
14.27
|
|
|
800,500
|
|
$
|
24.64
|
|
TSR Performance Awards
(c)
|
308,130
|
|
$
|
10.02
|
|
|
273,560
|
|
$
|
24.95
|
|
Black-Scholes Assumptions
(a)
|
|
2016 Grants
|
2015 Grants
|
||||
Grant date price per share of option award
|
|
$
|
14.78
|
|
$
|
24.74
|
|
Exercise price per share of option award
|
|
$
|
14.78
|
|
$
|
24.74
|
|
Expected annual dividends per share, at grant date
|
|
$
|
0.20
|
|
$
|
0.20
|
|
Expected life in years
|
|
5
|
|
5
|
|
||
Expected volatility
|
|
53
|
%
|
47
|
%
|
||
Risk-free interest rate
|
|
1.463
|
%
|
1.639
|
%
|
||
Grant date fair value per share of unvested option awards as calculated from above
|
|
$
|
6.24
|
|
$
|
10.02
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(Dollars in millions, except per share amounts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Earnings (loss) attributable to United States Steel Corporation stockholders
|
|
$
|
51
|
|
|
$
|
(173
|
)
|
|
$
|
(335
|
)
|
|
$
|
(509
|
)
|
Weighted-average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
160,513
|
|
|
146,324
|
|
|
151,199
|
|
|
146,008
|
|
||||
Effect of stock options, restricted stock units and performance awards
|
|
1,187
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Adjusted weighted-average shares outstanding, diluted
|
|
161,700
|
|
|
146,324
|
|
|
151,199
|
|
|
146,008
|
|
||||
Basic earnings (loss) per common share
|
|
$
|
0.32
|
|
|
$
|
(1.18
|
)
|
|
$
|
(2.22
|
)
|
|
$
|
(3.49
|
)
|
Diluted earnings (loss) per common share
|
|
$
|
0.32
|
|
|
$
|
(1.18
|
)
|
|
$
|
(2.22
|
)
|
|
$
|
(3.49
|
)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended
September 30, |
||||||
(In thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||
Securities granted under the 2005 Stock Incentive Plan, as amended and the Omnibus Plan
|
|
4,613
|
|
|
8,623
|
|
9,568
|
|
|
8,623
|
(In millions)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Raw materials
|
|
$
|
450
|
|
|
$
|
766
|
|
Semi-finished products
|
|
813
|
|
|
841
|
|
||
Finished products
|
|
415
|
|
|
392
|
|
||
Supplies and sundry items
|
|
64
|
|
|
75
|
|
||
Total
|
|
$
|
1,742
|
|
|
$
|
2,074
|
|
|
|
|
|
Fair Value
|
|
Fair Value
|
||||
(In millions)
|
|
Balance Sheet
Location |
|
September 30, 2016
|
|
December 31, 2015
|
||||
Foreign exchange forward contracts
|
|
Accounts receivable
|
|
$
|
1
|
|
|
$
|
4
|
|
Foreign exchange forward contracts
|
|
Accounts payable
|
|
$
|
1
|
|
|
$
|
1
|
|
(In millions)
|
|
Statement of
Operations Location |
|
Amount of Gain (Loss)
|
|
Amount of Gain (Loss)
|
||||
|
|
Three Months Ended September 30, 2016
|
|
Nine Months Ended
September 30, 2016 |
||||||
Foreign exchange forward contracts
|
|
Other financial income/
costs |
|
$
|
—
|
|
|
$
|
(4
|
)
|
(In millions)
|
|
Statement of
Operations Location |
|
Amount of Gain (Loss)
|
|
Amount of Gain (Loss)
|
||||
|
|
Three Months Ended
September 30, 2015 |
|
Nine Months Ended September 30, 2015
|
||||||
Foreign exchange forward contracts
|
|
Other financial income/
costs |
|
$
|
—
|
|
|
$
|
32
|
|
(In millions)
|
|
Interest
Rates %
|
|
Maturity
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
2037 Senior Notes
|
|
6.65
|
|
2037
|
|
$
|
350
|
|
|
$
|
350
|
|
2022 Senior Notes
|
|
7.50
|
|
2022
|
|
400
|
|
|
400
|
|
||
2021 Senior Notes
|
|
6.875
|
|
2021
|
|
200
|
|
|
275
|
|
||
2021 Senior Secured Notes
|
|
8.375
|
|
2021
|
|
980
|
|
|
—
|
|
||
2020 Senior Notes
|
|
7.375
|
|
2020
|
|
439
|
|
|
600
|
|
||
2018 Senior Notes
|
|
7.00
|
|
2018
|
|
161
|
|
|
500
|
|
||
2017 Senior Notes
|
|
6.05
|
|
2017
|
|
—
|
|
|
450
|
|
||
Environmental Revenue Bonds
|
|
5.50 - 6.88
|
|
2016 - 2042
|
|
490
|
|
|
490
|
|
||
Recovery Zone Facility Bonds
|
|
6.75
|
|
2040
|
|
70
|
|
|
70
|
|
||
Fairfield Caster Lease
|
|
|
|
2022
|
|
29
|
|
|
30
|
|
||
Other capital leases and all other obligations
|
|
|
|
2019
|
|
1
|
|
|
1
|
|
||
Third Amended and Restated Credit Agreement
|
|
Variable
|
|
2020
|
|
—
|
|
|
—
|
|
||
USSK Revolver
|
|
Variable
|
|
2019
|
|
—
|
|
|
—
|
|
||
USSK credit facilities
|
|
Variable
|
|
2016 - 2018
|
|
—
|
|
|
—
|
|
||
Total Debt
|
|
|
|
|
|
3,120
|
|
|
3,166
|
|
||
Less unamortized discount and debt issuance costs
|
|
|
|
|
|
40
|
|
|
28
|
|
||
Less short-term debt and long-term debt due within one year
|
|
|
|
|
|
92
|
|
|
45
|
|
||
Long-term debt
|
|
|
|
|
|
$
|
2,988
|
|
|
$
|
3,093
|
|
Year
|
Redemption Price
|
|
2018
|
106.28
|
%
|
2019
|
104.19
|
%
|
2020 and thereafter
|
100.00
|
%
|
(In millions)
|
|
September 30, 2016
|
|
December 31, 2015
|
|
||||
Balance at beginning of year
|
|
$
|
89
|
|
|
$
|
48
|
|
|
Additional obligations incurred
|
|
3
|
|
|
45
|
|
(a)
|
||
Obligations settled
|
|
(9
|
)
|
|
(6
|
)
|
|
||
Foreign currency translation effects
|
|
—
|
|
|
(1
|
)
|
|
||
Accretion expense
|
|
2
|
|
|
3
|
|
|
||
Balance at end of period
|
|
$
|
85
|
|
|
$
|
89
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
(In millions)
|
|
Fair
Value |
|
Carrying
Amount |
|
Fair
Value |
|
Carrying
Amount |
||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Long-term debt
(a)
|
|
$
|
3,098
|
|
|
$
|
3,051
|
|
|
$
|
1,896
|
|
|
$
|
3,107
|
|
Nine Months Ended September 30, 2016 (In millions)
|
|
Total
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive (Loss) Income |
|
Common
Stock |
|
Treasury
Stock |
|
Paid-in
Capital |
|
Non-
Controlling Interest |
||||||||||||||
Balance at beginning of year
|
|
$
|
2,437
|
|
|
$
|
190
|
|
|
$
|
(1,169
|
)
|
|
$
|
151
|
|
|
$
|
(339
|
)
|
|
$
|
3,603
|
|
|
$
|
1
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net loss
|
|
(335
|
)
|
|
(335
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss), net of tax:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pension and other benefit adjustments
|
|
(134
|
)
|
|
|
|
(134
|
)
|
|
|
|
|
|
|
|
|
||||||||||||
Currency translation adjustment
|
|
41
|
|
|
|
|
41
|
|
|
|
|
|
|
|
|
|
||||||||||||
Employee stock plans
|
|
16
|
|
|
|
|
|
|
|
|
62
|
|
|
(46
|
)
|
|
|
|||||||||||
Common Stock Issued
|
|
582
|
|
|
|
|
|
|
|
25
|
|
|
|
|
557
|
|
|
|
||||||||||
Dividends paid on common stock
|
|
(22
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(22
|
)
|
|
|
||||||||||
Other
|
|
17
|
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at September 30, 2016
|
|
$
|
2,602
|
|
|
$
|
(145
|
)
|
|
$
|
(1,245
|
)
|
|
$
|
176
|
|
|
$
|
(277
|
)
|
|
$
|
4,092
|
|
|
$
|
1
|
|
Nine Months Ended September 30, 2015 (In millions)
|
|
Total
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive (Loss) Income |
|
Common
Stock |
|
Treasury
Stock |
|
Paid-in
Capital |
|
Non-
Controlling Interest |
||||||||||||||
Balance at beginning of year
|
|
$
|
3,800
|
|
|
$
|
1,862
|
|
|
$
|
(1,441
|
)
|
|
$
|
151
|
|
|
$
|
(396
|
)
|
|
$
|
3,623
|
|
|
$
|
1
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net loss
|
|
(509
|
)
|
|
(509
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pension and other benefit adjustments
|
|
(44
|
)
|
|
|
|
(44
|
)
|
|
|
|
|
|
|
|
|
||||||||||||
Currency translation adjustment
|
|
(83
|
)
|
|
|
|
(83
|
)
|
|
|
|
|
|
|
|
|
||||||||||||
Employee stock plans
|
|
30
|
|
|
|
|
|
|
|
|
55
|
|
|
(25
|
)
|
|
|
|||||||||||
Dividends paid on common stock
|
|
(22
|
)
|
|
(22
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at September 30, 2015
|
|
$
|
3,172
|
|
|
$
|
1,331
|
|
|
$
|
(1,568
|
)
|
|
$
|
151
|
|
|
$
|
(341
|
)
|
|
$
|
3,598
|
|
|
$
|
1
|
|
(In millions)
(a)
|
|
Pension and
Other Benefit Items |
|
Foreign
Currency Items |
|
Other
|
|
Total
|
||||||||
Balance at December 31, 2015
|
|
$
|
(1,479
|
)
|
|
$
|
312
|
|
|
$
|
(2
|
)
|
|
$
|
(1,169
|
)
|
Other comprehensive income before reclassifications
|
|
5
|
|
|
41
|
|
|
16
|
|
|
62
|
|
||||
Amounts reclassified from AOCI
|
|
(139
|
)
|
(b)
|
—
|
|
|
1
|
|
|
(138
|
)
|
||||
Net current-period other comprehensive (loss) income
|
|
(134
|
)
|
|
41
|
|
|
17
|
|
|
(76
|
)
|
||||
Balance at September 30, 2016
|
|
$
|
(1,613
|
)
|
|
$
|
353
|
|
|
$
|
15
|
|
|
$
|
(1,245
|
)
|
|
|
|
Amount reclassified from AOCI
|
||||||||||||||
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(In millions)
(a)
|
Details about AOCI components
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
Amortization of pension and other benefit items
|
|
|
|
|
|
|
|
|
||||||||
|
Prior service costs
(b)
|
|
$
|
(8
|
)
|
|
$
|
(2
|
)
|
|
$
|
(27
|
)
|
|
$
|
(8
|
)
|
|
Actuarial losses
(b)
|
|
(34
|
)
|
|
(62
|
)
|
|
(99
|
)
|
|
(193
|
)
|
||||
|
Settlement, termination and curtailment
(losses) (b) |
|
(10
|
)
|
|
(20
|
)
|
|
(13
|
)
|
|
(25
|
)
|
||||
|
Total before tax
|
|
(52
|
)
|
|
(84
|
)
|
|
(139
|
)
|
|
(226
|
)
|
||||
|
Tax benefit
|
|
—
|
|
|
32
|
|
|
—
|
|
|
86
|
|
||||
|
Net of tax
(c)
|
|
$
|
(52
|
)
|
|
$
|
(52
|
)
|
|
$
|
(139
|
)
|
|
$
|
(140
|
)
|
|
|
Employee Related
|
|
Exit
|
|
|
||||||
(in millions)
|
|
Costs
|
|
Costs
|
|
Total
|
||||||
Balance at December 31, 2015
|
|
$
|
48
|
|
|
$
|
107
|
|
|
$
|
155
|
|
|
|
|
|
|
|
|
||||||
Additional charges
|
|
19
|
|
|
—
|
|
|
19
|
|
|||
Cash payments/utilization
|
|
(31
|
)
|
|
(34
|
)
|
|
(65
|
)
|
|||
Other adjustments and reclassifications
|
|
(17
|
)
|
|
(1
|
)
|
|
(18
|
)
|
|||
|
|
|
|
|
|
|
||||||
Balance at September 30, 2016
|
|
$
|
19
|
|
|
$
|
72
|
|
|
$
|
91
|
|
(in millions)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Accounts payable
|
|
$
|
53
|
|
|
$
|
90
|
|
Payroll and benefits payable
|
|
17
|
|
|
48
|
|
||
Employee Benefits
|
|
1
|
|
|
—
|
|
||
Deferred credits and other noncurrent liabilities
|
|
20
|
|
|
17
|
|
||
Total
|
|
$
|
91
|
|
|
$
|
155
|
|
Period ended
|
|
Opening
Number of Claims |
|
Claims
Dismissed, Settled and Resolved |
|
New
Claims |
|
Closing
Number of Claims |
December 31, 2013
|
|
3,330
|
|
250
|
|
240
|
|
3,320
|
December 31, 2014
|
|
3,320
|
|
190
|
|
325
|
|
3,455
|
December 31, 2015
|
|
3,455
|
|
415
|
|
275
|
|
3,315
|
September 30, 2016
|
|
3,315
|
|
180
|
|
200
|
|
3,335
|
(In millions)
|
Nine Months Ended September 30, 2016
|
||
Beginning of period
|
$
|
197
|
|
Accruals for environmental remediation deemed probable and reasonably estimable
|
1
|
|
|
Adjustments for changes in estimates
|
(4
|
)
|
|
Obligations settled
|
(9
|
)
|
|
End of period
|
$
|
185
|
|
(In millions)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Accounts payable
|
|
$
|
15
|
|
|
$
|
14
|
|
Deferred credits and other noncurrent liabilities
|
|
170
|
|
|
183
|
|
||
Total
|
|
$
|
185
|
|
|
$
|
197
|
|
(1)
|
Projects with Ongoing Study and Scope Development -
Projects which are still in the development phase. For these projects, the extent of remediation that may be required is not yet known, the remediation methods and plans are not yet developed, and/or cost estimates cannot be determined. Therefore, significant costs, in addition to the accrued liabilities for these projects, are reasonably possible. There are
five
environmental remediation projects where additional costs for completion are not currently estimable, but could be material. These projects are at Fairfield Works, Lorain Tubular, USS-POSCO Industries (UPI), the Fairless Plant, and the former steelmaking plant at Joliet, Illinois. As of
September 30, 2016
, accrued liabilities for these projects totaled
$1 million
for the costs of studies, investigations, interim measures, design and/or remediation. It is reasonably possible that additional liabilities associated with future requirements regarding studies, investigations, design and remediation for these projects could be as much as
$25 million
to
$40 million
.
|
(2)
|
Significant Projects with Defined Scope -
Projects with significant accrued liabilities with a defined scope. As of
September 30, 2016
, there are
four
significant projects with defined scope greater than or equal to
$3 million
each, with a total accrued liability of
$144 million
. These projects are Gary RCRA (accrued liability of
$30 million
), the former Geneva facility (accrued liability of
$63 million
), the former Duluth facility St. Louis River Estuary (accrued liability of
$48 million
), and the Solid Waste Management Unit (SWMU) #4 at UPI (accrued liability of
$3 million
).
|
(3)
|
Other Projects with a Defined Scope -
Projects with relatively small accrued liabilities for which we believe that, while additional costs are possible, they are not likely to be significant, and also include those projects
|
Remainder of 2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Later
Years |
|
Total
|
$276
|
|
$740
|
|
$642
|
|
$323
|
|
$300
|
|
$1,383
|
|
$3,664
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
Three Months Ended
September 30, |
|
|
|
Nine Months Ended
September 30, |
|
||||||||||||||
(Dollars in millions, excluding intersegment sales)
|
|
2016
|
|
2015
|
|
%
Change
|
|
2016
|
|
2015
|
%
Change
|
||||||||||
Flat-Rolled Products (Flat-Rolled)
|
|
$
|
1,986
|
|
|
$
|
2,070
|
|
|
(4
|
)%
|
|
$
|
5,643
|
|
|
$
|
6,388
|
|
(12
|
)%
|
U. S. Steel Europe (USSE)
|
|
575
|
|
|
546
|
|
|
5
|
%
|
|
1,616
|
|
|
1,837
|
|
(12
|
)%
|
||||
Tubular Products (Tubular)
|
|
114
|
|
|
199
|
|
|
(43
|
)%
|
|
303
|
|
|
730
|
|
(58
|
)%
|
||||
Total sales from reportable segments
|
|
2,675
|
|
|
2,815
|
|
|
(5
|
)%
|
|
7,562
|
|
|
8,955
|
|
(16
|
)%
|
||||
Other Businesses
|
|
11
|
|
|
15
|
|
|
(27
|
)%
|
|
49
|
|
|
47
|
|
4
|
%
|
||||
Net sales
|
|
$
|
2,686
|
|
|
$
|
2,830
|
|
|
(5
|
)%
|
|
$
|
7,611
|
|
|
$
|
9,002
|
|
(15
|
)%
|
|
|
Hypothetical Rate
Increase (Decrease) |
||||||
(Dollars in millions)
|
|
1%
|
|
(1)%
|
||||
Expected return on plan assets
|
|
|
|
|
||||
Incremental (decrease) increase in:
|
|
|
|
|
||||
Net periodic pension cost
|
|
$
|
(76
|
)
|
|
$
|
76
|
|
Discount rate
|
|
|
|
|
||||
Incremental (decrease) increase in:
|
|
|
|
|
||||
Net periodic pension & other benefits costs for 2016
|
|
$
|
(9
|
)
|
|
$
|
7
|
|
Pension & other benefits obligations
|
|
$
|
(752
|
)
|
|
$
|
885
|
|
Health care cost escalation trend rates
|
|
|
|
|
||||
Incremental increase (decrease) in:
|
|
|
|
|
||||
Other postretirement benefit obligations
|
|
$
|
95
|
|
|
$
|
(82
|
)
|
Service and interest cost components for 2016
|
|
$
|
4
|
|
|
$
|
(4
|
)
|
|
|
Three Months Ended
September 30, |
|
%
Change |
|
Nine Months Ended
September 30, |
|
%
Change |
||||||||||||||
(Dollars in millions)
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||
Flat-Rolled
|
|
$
|
114
|
|
|
$
|
(18
|
)
|
|
NM
|
|
|
$
|
(68
|
)
|
|
$
|
(149
|
)
|
|
(54
|
)%
|
USSE
|
|
81
|
|
|
18
|
|
|
NM
|
|
|
122
|
|
|
75
|
|
|
63
|
%
|
||||
Tubular
|
|
(75
|
)
|
|
(50
|
)
|
|
50
|
%
|
|
(217
|
)
|
|
(115
|
)
|
|
89
|
%
|
||||
Total earnings (loss) from reportable segments
|
|
120
|
|
|
(50
|
)
|
|
NM
|
|
|
(163
|
)
|
|
(189
|
)
|
|
(14
|
)%
|
||||
Other Businesses
|
|
18
|
|
|
10
|
|
|
80
|
%
|
|
42
|
|
|
24
|
|
|
75
|
%
|
||||
Segment earnings (loss) before interest and income taxes
|
|
138
|
|
|
(40
|
)
|
|
NM
|
|
|
(121
|
)
|
|
(165
|
)
|
|
(27
|
)%
|
||||
Items not allocated to segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Postretirement benefit income (expense)
|
|
8
|
|
|
(11
|
)
|
|
(173
|
)%
|
|
36
|
|
|
(38
|
)
|
|
(195
|
)%
|
||||
Other items not allocated to segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Impairment of intangible assets
|
|
(14
|
)
|
|
—
|
|
|
100
|
%
|
|
(14
|
)
|
|
—
|
|
|
100
|
%
|
||||
Loss on shutdown of Fairfield Flat-Rolled Operations
|
|
—
|
|
|
(91
|
)
|
|
(100
|
)%
|
|
—
|
|
|
(91
|
)
|
|
(100
|
)%
|
||||
Losses associated with U. S. Steel Canada Inc.
|
|
—
|
|
|
(16
|
)
|
|
(100
|
)%
|
|
—
|
|
|
(271
|
)
|
|
(100
|
)%
|
||||
Restructuring and other charges and related adjustments
|
|
—
|
|
|
(12
|
)
|
|
(100
|
)%
|
|
(2
|
)
|
|
(31
|
)
|
|
(94
|
)%
|
||||
Loss on shutdown of coke production facilities
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
(153
|
)
|
|
(100
|
)%
|
||||
Total earnings (loss) before interest and income taxes
|
|
$
|
132
|
|
|
$
|
(170
|
)
|
|
(178
|
)%
|
|
$
|
(101
|
)
|
|
$
|
(749
|
)
|
|
(87
|
)%
|
|
|
Three Months Ended
September 30, |
|
%
Change |
|
Nine Months Ended
September 30, |
|
% Change
|
||||||||||||||
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||
Earnings (loss) before interest and income taxes ($ millions)
|
|
$
|
114
|
|
|
$
|
(18
|
)
|
|
NM
|
|
|
$
|
(68
|
)
|
|
$
|
(149
|
)
|
|
(54
|
)%
|
Gross margin
|
|
12.9
|
%
|
|
7.0
|
%
|
|
5.9
|
%
|
|
5.1
|
%
|
|
4.7
|
%
|
|
0.4
|
%
|
||||
Raw steel production (mnt)
|
|
2,734
|
|
|
3,240
|
|
|
(16
|
)%
|
|
8,248
|
|
|
8,916
|
|
|
(7
|
)%
|
||||
Capability utilization
|
|
64
|
%
|
|
66
|
%
|
|
(2
|
)%
|
|
65
|
%
|
|
61
|
%
|
|
4
|
%
|
||||
Steel shipments (mnt)
|
|
2,535
|
|
|
2,676
|
|
|
(5
|
)%
|
|
7,725
|
|
|
8,005
|
|
|
(3
|
)%
|
||||
Average realized steel price per ton
|
|
$
|
718
|
|
|
$
|
674
|
|
|
7
|
%
|
|
$
|
658
|
|
|
$
|
712
|
|
|
(8
|
)%
|
|
|
Three Months Ended
September 30, |
|
%
Change |
|
Nine Months Ended
September 30, |
|
% Change
|
||||||||||||||
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||
Earnings before interest and income taxes ($ millions)
|
|
$
|
81
|
|
|
$
|
18
|
|
|
350
|
%
|
|
$
|
122
|
|
|
$
|
75
|
|
|
63
|
%
|
Gross margin
|
|
19.8
|
%
|
|
9.1
|
%
|
|
10.7
|
%
|
|
13.7
|
%
|
|
9.7
|
%
|
|
4.0
|
%
|
||||
Raw steel production (mnt)
|
|
1,279
|
|
|
1,133
|
|
|
13
|
%
|
|
3,689
|
|
|
3,615
|
|
|
2
|
%
|
||||
Capability utilization
|
|
102
|
%
|
|
90
|
%
|
|
12
|
%
|
|
98
|
%
|
|
97
|
%
|
|
1
|
%
|
||||
Steel shipments (mnt)
|
|
1,105
|
|
|
1,020
|
|
|
8
|
%
|
|
3,235
|
|
|
3,375
|
|
|
(4
|
)%
|
||||
Average realized steel price per ton ($)
|
|
$
|
503
|
|
|
$
|
516
|
|
|
(3
|
)%
|
|
$
|
483
|
|
|
$
|
527
|
|
|
(8
|
)%
|
Average realized steel price per ton (€)
|
|
€
|
451
|
|
|
€
|
464
|
|
|
(3
|
)%
|
|
€
|
433
|
|
|
€
|
473
|
|
|
(8
|
)%
|
|
|
Three Months Ended
September 30, |
|
%
Change |
|
Nine Months Ended
September 30, |
|
% Change
|
||||||||||||||
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||
Loss before interest and income taxes ($ millions)
|
|
$
|
(75
|
)
|
|
$
|
(50
|
)
|
|
50
|
%
|
|
$
|
(217
|
)
|
|
$
|
(115
|
)
|
|
89
|
%
|
Gross margin
|
|
(42.7
|
)%
|
|
(18.0
|
)%
|
|
(24.7
|
)%
|
|
(44.5
|
)%
|
|
(5.6
|
)%
|
|
(38.9
|
)%
|
||||
Steel shipments (mnt)
|
|
103
|
|
|
154
|
|
|
(33
|
)%
|
|
262
|
|
|
465
|
|
|
(44
|
)%
|
||||
Average realized steel price per ton
|
|
$
|
1,049
|
|
|
$
|
1,264
|
|
|
(17
|
)%
|
|
$
|
1,094
|
|
|
$
|
1,516
|
|
|
(28
|
)%
|
|
|
Three Months Ended
September 30, |
|
%
Change
|
|
Nine Months Ended
September 30, |
|
%
Change |
||||||||||||||
(Dollars in millions)
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||
Interest expense
|
|
$
|
58
|
|
|
$
|
56
|
|
|
4
|
%
|
|
$
|
173
|
|
|
$
|
160
|
|
|
8
|
%
|
Interest income
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
%
|
|
(5
|
)
|
|
(2
|
)
|
|
150
|
%
|
||||
Loss on debt extinguishment
|
|
—
|
|
|
—
|
|
|
NM
|
|
|
22
|
|
|
—
|
|
|
NM
|
|
||||
Other financial costs (income)
|
|
6
|
|
|
(1
|
)
|
|
NM
|
|
|
18
|
|
|
12
|
|
|
50
|
%
|
||||
Total net interest and other financial costs
|
|
$
|
62
|
|
|
$
|
53
|
|
|
17
|
%
|
|
$
|
208
|
|
|
$
|
170
|
|
|
22
|
%
|
|
|
Three Months Ended
September 30, |
|
Twelve Months Ended
September 30, |
||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Accounts Receivable Turnover
|
|
2.2
|
|
|
2.0
|
|
|
8.0
|
|
|
7.7
|
|
Inventory Turnover
|
|
1.4
|
|
|
1.1
|
|
|
4.7
|
|
|
5.2
|
|
(Dollars in millions)
|
|
|
||
|
Cash and cash equivalents
|
$
|
1,445
|
|
|
Amount available under $1.5 Billion Credit Facility
|
1,341
|
|
|
|
Amount available under USSK credit facilities
|
278
|
|
|
|
Total estimated liquidity
|
$
|
3,064
|
|
•
|
2016 net loss of approximately $355 million, or a loss of $2.26 per share, and adjusted EBITDA of approximately $475 million;
|
•
|
Results for our Flat-Rolled and European segments to be higher than 2015 results and results for our Tubular segment to be lower than 2015 results;
|
•
|
To be cash positive for the year, including net proceeds from our equity offering of $482 million and approximately $500 million of cash benefits from working capital improvement in 2016, primarily related to better inventory management, driven by improved sales and operations planning practices; and
|
•
|
Improved results for Other Businesses and approximately $52 million of postretirement benefit income.
|
UNITED STATES STEEL CORPORATION
|
||||
RECONCILIATION OF ANNUAL ADJUSTED EBITDA OUTLOOK
|
||||
|
|
|
||
|
|
Year Ended
|
||
|
|
Dec. 31
|
||
(Dollars in millions)
|
2016
|
|||
Reconciliation to Projected Annual Adjusted EBITDA Included in Outlook
|
|
|||
|
Projected net loss attributable to United States Steel Corporation included in Outlook
|
$
|
(355
|
)
|
|
Estimated income tax expense
|
40
|
|
|
|
Estimated net interest and other financial costs
|
270
|
|
|
|
Estimated depreciation, depletion and amortization
|
505
|
|
|
|
Restructuring, impairment and other charges
|
15
|
|
|
|
|
|
||
|
Estimated projected annual adjusted EBITDA included in Outlook
|
$
|
475
|
|
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 4.
|
CONTROLS AND PROCEDURES
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended September 30,
|
||||||||||||
(Dollars in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
SEGMENT EARNINGS (LOSS) BEFORE INTEREST AND INCOME TAXES:
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled
|
|
$
|
114
|
|
|
$
|
(18
|
)
|
|
$
|
(68
|
)
|
|
$
|
(149
|
)
|
U. S. Steel Europe
|
|
81
|
|
|
18
|
|
|
122
|
|
|
75
|
|
||||
Tubular
|
|
(75
|
)
|
|
(50
|
)
|
|
(217
|
)
|
|
(115
|
)
|
||||
Total reportable segments
|
|
120
|
|
|
(50
|
)
|
|
(163
|
)
|
|
(189
|
)
|
||||
Other Businesses
|
|
18
|
|
|
10
|
|
|
42
|
|
|
24
|
|
||||
Items not allocated to segments:
|
|
|
|
|
|
|
|
|
||||||||
Postretirement benefit income (expense)
|
|
8
|
|
|
(11
|
)
|
|
36
|
|
|
(38
|
)
|
||||
Other items not allocated to segments:
|
|
|
|
|
|
|
|
|
||||||||
Impairment of intangible assets
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
||||
Loss on shutdown of Fairfield Flat-Rolled Operations
(a)
|
|
—
|
|
|
(91
|
)
|
|
—
|
|
|
(91
|
)
|
||||
Loss on write-down of retained interest in USSC
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(271
|
)
|
||||
Restructuring and other charges and adjustments
|
|
—
|
|
|
(12
|
)
|
|
(2
|
)
|
|
(31
|
)
|
||||
Loss on shutdown of coke production facilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(153
|
)
|
||||
Total earnings (loss) before interest and income taxes
|
|
$
|
132
|
|
|
$
|
(170
|
)
|
|
$
|
(101
|
)
|
|
$
|
(749
|
)
|
CAPITAL EXPENDITURES
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled
(b)
|
|
$
|
23
|
|
|
$
|
63
|
|
|
$
|
97
|
|
|
$
|
196
|
|
U. S. Steel Europe
|
|
17
|
|
|
33
|
|
|
68
|
|
|
78
|
|
||||
Tubular
|
|
11
|
|
|
35
|
|
|
81
|
|
|
75
|
|
||||
Other Businesses
|
|
—
|
|
|
2
|
|
|
22
|
|
|
5
|
|
||||
Total
(c)
|
|
$
|
51
|
|
|
$
|
133
|
|
|
$
|
268
|
|
|
$
|
354
|
|
OPERATING STATISTICS
|
|
|
|
|
|
|
|
|
||||||||
Average realized price: ($/net ton)
(d)
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled
|
|
$
|
718
|
|
|
$
|
674
|
|
|
$
|
658
|
|
|
$
|
712
|
|
U. S. Steel Europe
|
|
503
|
|
|
516
|
|
|
483
|
|
|
527
|
|
||||
Tubular
|
|
1,049
|
|
|
1,264
|
|
|
1,094
|
|
|
1,516
|
|
||||
Steel Shipments:
(d)(e)
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled
|
|
2,535
|
|
|
2,676
|
|
|
7,725
|
|
|
8,005
|
|
||||
U. S. Steel Europe
|
|
1,105
|
|
|
1,020
|
|
|
3,235
|
|
|
3,375
|
|
||||
Tubular
|
|
103
|
|
|
154
|
|
|
262
|
|
|
465
|
|
||||
Raw Steel Production:
(e)
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled
|
|
2,734
|
|
|
3,240
|
|
|
8,248
|
|
|
8,916
|
|
||||
U. S. Steel Europe
|
|
1,279
|
|
|
1,133
|
|
|
3,689
|
|
|
3,615
|
|
||||
Raw Steel Capability Utilization:
(f)
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled
|
|
64
|
%
|
|
66
|
%
|
|
65
|
%
|
|
61
|
%
|
||||
U. S. Steel Europe
|
|
102
|
%
|
|
90
|
%
|
|
98
|
%
|
|
97
|
%
|
Period ended
|
|
Opening
Number of Claims |
|
Claims
Dismissed, Settled and Resolved |
|
New
Claims |
|
Closing
Number of Claims |
December 31, 2013
|
|
3,330
|
|
250
|
|
240
|
|
3,320
|
December 31, 2014
|
|
3,320
|
|
190
|
|
325
|
|
3,455
|
December 31, 2015
|
|
3,455
|
|
415
|
|
275
|
|
3,315
|
September 30, 2016
|
|
3,315
|
|
180
|
|
200
|
|
3,335
|
Item 4.
|
MINE SAFETY DISCLOSURES
|
Item 5.
|
OTHER INFORMATION
|
Item 6.
|
EXHIBITS
|
|
|
|
10.1
|
|
Administrative Procedures for the Executive Management Annual Incentive Compensation Program under the United States Steel Corporation Annual Incentive Compensation Plan, as amended November 1, 2016.
|
|
|
|
10.2
|
|
United States Steel Corporation Non Tax-Qualified Retirement Account Program, amended effective as of January 1, 2016.
|
|
|
|
10.3
|
|
United States Steel Corporation Supplemental Thrift Program, as amended November 1, 2016.
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer required by Rules 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as promulgated by the Securities and Exchange Commission pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer required by Rules 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as promulgated by the Securities and Exchange Commission pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.1
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.2
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
95
|
|
Mine Safety Disclosure required under Section 1503 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
|
|
|
|
101 INS
|
|
XBRL Instance Document
|
|
|
|
101 SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101 CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101 DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101 LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101 PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
UNITED STATES STEEL CORPORATION
|
||
|
|
|
By
|
|
/s/ Colleen M. Darragh
|
|
|
|
|
|
Colleen M. Darragh
|
|
|
Vice President & Controller
|
1 Year US Steel Chart |
1 Month US Steel Chart |
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