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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             .
Commission File Number: 1-8944
clf-logoa01a01a11.jpg
CLEVELAND-CLIFFS INC.
(Exact Name of Registrant as Specified in Its Charter)
Ohio34-1464672
(State or Other Jurisdiction of
Incorporation or Organization)		(I.R.S. Employer
Identification No.)
200 Public Square,Cleveland,Ohio44114-2315
(Address of Principal Executive Offices)(Zip Code)
Registrant’s telephone number, including area code: (216) 694-5700
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common shares, par value $0.125 per shareCLFNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes  ☒                                         No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes  ☒                                         No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes  ☐                                        No  ☒
The number of shares outstanding of the registrant’s common shares, par value $0.125 per share, was 504,861,276 as of October 24, 2023.


TABLE OF CONTENTS
Page Number
DEFINITIONS
PART I - FINANCIAL INFORMATION
ITEM 1.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL POSITION AS OF SEPTEMBER 30, 2023 AND DECEMBER 31, 2022
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED COMPREHENSIVE INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 4.CONTROLS AND PROCEDURES
PART II - OTHER INFORMATION
ITEM 1.LEGAL PROCEEDINGS
ITEM 1A.RISK FACTORS
ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES
ITEM 4.MINE SAFETY DISCLOSURES
ITEM 5.OTHER INFORMATION
ITEM 6.EXHIBITS
SIGNATURES

DEFINITIONS
The following abbreviations or acronyms are used in the text. References in this report to the “Company,” “we,” “us,” “our,” "Cleveland-Cliffs" and “Cliffs” are to Cleveland-Cliffs Inc. and subsidiaries, collectively. References to "$" is to United States currency.
Abbreviation or acronymTerm
6.750% 2030 Senior Notes6.750% Senior Guaranteed Notes due 2030 issued by Cleveland-Cliffs Inc. on April 14, 2023 in an aggregate principal amount of $750 million
ABL FacilityAsset-Based Revolving Credit Agreement, dated as of March 13, 2020, among Cleveland-Cliffs Inc., the lenders party thereto from time to time and Bank of America, N.A., as administrative agent, as amended as of March 27, 2020, December 9, 2020, December 17, 2021, and June 9, 2023, and as may be further amended from time to time
Adjusted EBITDAEBITDA, excluding certain items such as EBITDA of noncontrolling interests, extinguishment of debt, asset impairment and other, net
AOCIAccumulated Other Comprehensive Income (Loss)
ASCAccounting Standards Codification
ASUAccounting Standards Update
BOFBasic oxygen furnace
CERCLAComprehensive Environmental Response, Compensation and Liability Act of 1980
CHIPS ActThe Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022
CO2e
Carbon dioxide equivalent
Dodd-Frank ActDodd-Frank Wall Street Reform and Consumer Protection Act
EAFElectric arc furnace
EBITDAEarnings before interest, taxes, depreciation and amortization
EPAU.S. Environmental Protection Agency
EPSEarnings per share
EVElectric vehicle
Exchange ActSecurities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
FMSH ActFederal Mine Safety and Health Act of 1977, as amended
Fourth ABL AmendmentFourth Amendment to Asset-Based Revolving Credit Agreement, dated as of June 9, 2023, among Cleveland-Cliffs Inc., the lenders party thereto from time to time and Bank of America, N.A., as administrative agent
GAAPAccounting principles generally accepted in the United States
GHGGreenhouse gas
GOESGrain oriented electrical steel
HBIHot briquetted iron
HRCHot-rolled coil steel
Inflation Reduction ActInflation Reduction Act of 2022
LIBORLondon Interbank Offered Rate
Metric ton (mt)2,205 pounds
MSHAU.S. Mine Safety and Health Administration
Net ton (nt)2,000 pounds
NOESNon-oriented electrical steel
NPDESNational Pollutant Discharge Elimination System, authorized by the Clean Water Act
OPEBOther postretirement benefits
Platts 62% pricePlatts IODEX 62% Fe Fines CFR North China
RCRAResource Conservation and Recovery Act
SECU.S. Securities and Exchange Commission
Section 232Section 232 of the Trade Expansion Act of 1962, as amended
Securities ActSecurities Act of 1933, as amended
SOFRSecured Overnight Financing Rate
SunCoke MiddletownMiddletown Coke Company, LLC, a subsidiary of SunCoke Energy, Inc.
U.S.United States of America
UAWUnited Auto Workers
USWUnited Steelworkers
VEBAVoluntary employee benefit association trusts
VIEVariable interest entity
1
PART I
ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL POSITION
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES
(In millions, except share information)September 30,
2023		December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents$31 $26 
Accounts receivable, net2,122 1,960 
Inventories4,592 5,130 
Other current assets196 306 
Total current assets6,941 7,422 
Non-current assets:
Property, plant and equipment, net8,837 9,070 
Goodwill1,130 1,130 
Pension and OPEB, asset392 356 
Other non-current assets759 777 
TOTAL ASSETS$18,059 $18,755 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$2,076 $2,186 
Accrued employment costs467 429 
Accrued expenses263 383 
Other current liabilities488 551 
Total current liabilities3,294 3,549 
Non-current liabilities:
Long-term debt3,458 4,249 
Pension liability, non-current456 473 
OPEB liability, non-current563 585 
Deferred income taxes662 590 
Other non-current liabilities1,362 1,267 
TOTAL LIABILITIES9,795 10,713 
Commitments and contingencies (See Note 17)
Equity:
Common shares - par value $0.125 per share
Authorized - 1,200,000,000 shares (2022 - 1,200,000,000 shares);
Issued - 531,051,530 shares (2022 - 531,051,530 shares);
Outstanding - 504,849,719 shares (2022 - 513,340,779 shares)
66 66 
Capital in excess of par value of shares4,850 4,871 
Retained earnings1,888 1,334 
Cost of 26,201,811 common shares in treasury (2022 - 17,710,751 shares)
(431)(310)
Accumulated other comprehensive income1,647 1,830 
Total Cliffs shareholders' equity8,020 7,791 
Noncontrolling interest244 251 
TOTAL EQUITY8,264 8,042 
TOTAL LIABILITIES AND EQUITY$18,059 $18,755 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions, except per share amounts)2023202220232022
Revenues$5,605 $5,653 $16,884 $17,945 
Operating costs:
Cost of goods sold(5,125)(5,305)(15,661)(15,367)
Selling, general and administrative expenses(144)(124)(420)(353)
Miscellaneous – net(11)(37)(26)(104)
Total operating costs(5,280)(5,466)(16,107)(15,824)
Operating income325 187 777 2,121 
Other income (expense):
Interest expense, net(70)(64)(226)(205)
Gain (loss) on extinguishment of debt— 4 — (76)
Net periodic benefit credits other than service cost component50 49 150 148 
Other non-operating income (expense)(2)(1)4 (6)
Total other expense(22)(12)(72)(139)
Income from continuing operations before income taxes303 175 705 1,982 
Income tax expense(29)(10)(118)(404)
Income from continuing operations274 165 587 1,578 
Income from discontinued operations, net of tax1 — 2 2 
Net income275 165 589 1,580 
Income attributable to noncontrolling interest(11)(13)(35)(31)
Net income attributable to Cliffs shareholders$264 $152 $554 $1,549 
Earnings per common share attributable to Cliffs shareholders - basic
Continuing operations$0.52 $0.30 $1.08 $2.98 
Discontinued operations— — — — 
$0.52 $0.30 $1.08 $2.98 
Earnings per common share attributable to Cliffs shareholders - diluted
Continuing operations$0.52 $0.29 $1.08 $2.95 
Discontinued operations— — — — 
$0.52 $0.29 $1.08 $2.95 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED COMPREHENSIVE INCOME
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2023202220232022
Net income$275 $165 $589 $1,580 
Other comprehensive income (loss):
Changes in pension and OPEB, net of tax(27)93 (80)94 
Changes in derivative financial instruments, net of tax31 61 (103)102 
Changes in foreign currency translation— (2)— (4)
Total other comprehensive income (loss)4 152 (183)192 
Comprehensive income279 317 406 1,772 
Comprehensive income attributable to noncontrolling interests(11)(13)(35)(31)
Comprehensive income attributable to Cliffs shareholders$268 $304 $371 $1,741 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES
Nine Months Ended
September 30,
(In millions)20232022
OPERATING ACTIVITIES
Net income$589 $1,580 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization738 788 
Deferred income taxes132 210 
Pension and OPEB credits(119)(81)
Loss on extinguishment of debt— 76 
Impairment of long-lived assets— 29 
Other121 75 
Changes in operating assets and liabilities:
Accounts receivable, net(164)(145)
Inventories538 (348)
Income taxes16 (109)
Pension and OPEB payments and contributions(84)(174)
Payables, accrued employment and accrued expenses(95)66 
Other, net(57)(33)
Net cash provided by operating activities1,615 1,934 
INVESTING ACTIVITIES
Purchase of property, plant and equipment(481)(716)
Acquisition of FPT, net of cash acquired— (31)
Other investing activities11 20 
Net cash used by investing activities(470)(727)
FINANCING ACTIVITIES
Repurchase of common shares(152)(210)
Proceeds from issuance of senior notes750 — 
Repayments of senior notes— (1,355)
Borrowings under credit facilities3,004 4,650 
Repayments under credit facilities(4,543)(4,169)
Debt issuance costs(34)— 
Other financing activities(165)(115)
Net cash used by financing activities(1,140)(1,199)
Net increase in cash and cash equivalents5 8 
Cash and cash equivalents at beginning of period26 48 
Cash and cash equivalents at end of period$31 $56 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CHANGES IN EQUITY
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES
(In millions)Number
of
Common
Shares Outstanding		Par Value of
Common
Shares Issued		Capital in
Excess of
Par Value
of Shares		Retained
Earnings		Common
Shares
in
Treasury		AOCINon-controlling InterestsTotal
December 31, 2022513.3 $66 $4,871 $1,334 $(310)$1,830 $251 $8,042 
Comprehensive income (loss)— — — (57)— (179)15 (221)
Stock and other incentive plans1.8 — (39)— 30 — — (9)
Net distributions to noncontrolling interests— — — — — — (19)(19)
March 31, 2023515.1 $66 $4,832 $1,277 $(280)$1,651 $247 $7,793 
Comprehensive income (loss)— — — 347 — (8)9 348 
Stock and other incentive plans0.1 — 9 — 3 — — 12 
Common stock repurchases, net of excise tax(6.5)— — — (95)— — (95)
Net distributions to noncontrolling interests— — — — — — (14)(14)
June 30, 2023508.7 $66 $4,841 $1,624 $(372)$1,643 $242 $8,044 
Comprehensive income— — — 264 — 4 11 279 
Stock and other incentive plans— — 9 — — — — 9 
Common stock repurchases, net of excise tax(3.9)— — — (59)— — (59)
Net distributions to noncontrolling interests— — — — — — (9)(9)
September 30, 2023504.8 $66 $4,850 $1,888 $(431)$1,647 $244 $8,264 
(In millions)Number
of
Common
Shares Outstanding		Par Value of Common
Shares Issued		Capital in
Excess of
Par Value
of Shares		Retained
Earnings (Deficit)		Common
Shares
in
Treasury		AOCINon-controlling InterestsTotal
December 31, 2021500.2 $63 $4,892 $(1)$(82)$618 $284 $5,774 
Comprehensive income— — — 801 — 97 13 911 
Redemption of convertible debt24.2 3 (28)— — — — (25)
Stock and other incentive plans1.3 — (16)— 11 — — (5)
Common stock repurchases(1.0)— — — (19)— — (19)
Net distributions to noncontrolling interests— — — — — — (28)(28)
March 31, 2022524.7 $66 $4,848 $800 $(90)$715 $269 $6,608 
Comprehensive income (loss)— — — 596 — (57)5 544 
Stock and other incentive plans0.1 — 7 — 1 — — 8 
Common stock repurchases(7.5)— — — (157)— — (157)
Net distributions to noncontrolling interests— — — — — — (9)(9)
June 30, 2022517.3 $66 $4,855 $1,396 $(246)$658 $265 $6,994 
Comprehensive income— — — 152 — 152 13317 
Stock and other incentive plans— — 9 — — — — 9 
Common stock repurchases(2.0)— — — (34)— — (34)
Net distributions to noncontrolling interests— — — — — — (18)(18)
September 30, 2022515.3 $66 $4,864 $1,548 $(280)$810 $260 $7,268 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
BUSINESS, CONSOLIDATION AND PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with SEC rules and regulations and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations, comprehensive income, cash flows and changes in equity for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its estimates on various assumptions and historical experience, which are believed to be reasonable; however, due to the inherent nature of estimates, actual results may differ significantly due to changed conditions or assumptions. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of results to be expected for the year ending December 31, 2023 or any other future period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2022 and in our Quarterly Reports on Form 10-Q for the quarterly periods ended June 30, 2023 and March 31, 2023.
NATURE OF BUSINESS
We are the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, we are also the largest manufacturer of iron ore pellets in North America. We are vertically integrated from mined raw materials, direct reduced iron and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling and tubing. We are the largest supplier of steel to the automotive industry in North America and serve a diverse range of markets due to our comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, we employ approximately 27,000 people across our operations in the United States and Canada.
BUSINESS OPERATIONS
We are organized into four operating segments based on differentiated products, Steelmaking, Tubular, Tooling and Stamping, and European Operations. We primarily operate through one reportable segment – the Steelmaking segment.
BASIS OF CONSOLIDATION
The unaudited condensed consolidated financial statements consolidate our accounts and the accounts of our wholly owned subsidiaries, all subsidiaries in which we have a controlling interest and VIEs for which we are the primary beneficiary. All intercompany transactions and balances are eliminated upon consolidation.
INVESTMENTS IN AFFILIATES
We have investments in several businesses accounted for using the equity method of accounting. These investments are included within our Steelmaking segment. We review an investment for impairment when circumstances indicate that a loss in value below its carrying amount is other than temporary.
Our investment in affiliates of $131 million and $133 million as of September 30, 2023 and December 31, 2022, respectively, was classified in Other non-current assets.
SIGNIFICANT ACCOUNTING POLICIES
A detailed description of our significant accounting policies can be found in the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. There have been no material changes in our significant accounting policies and estimates from those disclosed therein.
RECENT ACCOUNTING PRONOUNCEMENTS AND LEGISLATION
In August 2022, the U.S. government signed the Inflation Reduction Act into law. The Inflation Reduction Act introduced, among other legislation, a 1% excise tax on the fair market value of stock repurchases net of the fair market value of stock issuances during the tax year. The excise tax is effective on net stock repurchases that occur after December 31, 2022. The tax is recorded in equity as a cost of common shares in treasury.
In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. This guidance requires annual and interim disclosure of the key terms of outstanding supplier finance programs and a roll-forward of the related obligations. The new standard does not affect the recognition, measurement or financial statement presentation of the supplier finance program obligations. We have adopted this standard, except for the amendment on roll-forward information, which is effective for fiscal years beginning after December 15, 2023. Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for further information.
7
NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
ALLOWANCE FOR CREDIT LOSSES
The following is a roll-forward of our allowance for credit losses associated with Accounts receivable, net:
(In millions)20232022
Allowance for credit losses as of January 1$(4)$(4)
Increase in allowance(3)(1)
Allowance for credit losses as of September 30$(7)$(5)
INVENTORIES
The following table presents the detail of our Inventories on the Statements of Unaudited Condensed Consolidated Financial Position:
(In millions)September 30,
2023		December 31,
2022
Product inventories
Finished and semi-finished goods$2,616 $2,971 
Raw materials1,588 1,794 
Total product inventories4,204 4,765 
Manufacturing supplies and critical spares388 365 
Inventories$4,592 $5,130 
SUPPLY CHAIN FINANCE PROGRAMS
We negotiate payment terms directly with our suppliers for the purchase of goods and services. We currently offer voluntary supply chain finance programs that enable our suppliers to sell their Cliffs receivables to financial intermediaries, at the sole discretion of both the suppliers and financial intermediaries. No guarantees are provided by us or our subsidiaries under the supply chain finance programs. The supply chain finance programs allow our suppliers to be paid by the financial intermediaries earlier than the due date on the applicable invoice. Supply chain finance programs that extend terms or provide us an economic benefit are classified as short-term financings. As of September 30, 2023 and December 31, 2022, we had $21 million and $19 million, respectively, deemed as short-term financings that are classified in Other current liabilities. Additionally, as of September 30, 2023 and December 31, 2022, we had $90 million and $112 million, respectively, classified as Accounts payable.
CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Nine Months Ended
September 30,
(In millions)20232022
Capital additions$508 $736 
Less:
Non-cash accruals(98)(10)
Equipment financed with seller47 — 
Right-of-use assets - finance leases78 30 
Cash paid for capital expenditures including deposits$481 $716 
Cash payments (receipts) for income taxes and interest are as follows:
Nine Months Ended
September 30,
(In millions)20232022
Income taxes paid$91 $306 
Income tax refunds(142)(3)
Interest paid on debt obligations net of capitalized interest1
202 201 
1 Capitalized interest was $8 million and $7 million for the nine months ended September 30, 2023 and 2022, respectively.
8
NOTE 3 - REVENUES
We generate our revenue through product sales, in which shipping terms indicate when we have fulfilled our performance obligations and transferred control of products to our customer. Our revenue transactions consist of a single performance obligation to transfer promised goods. Our contracts with customers define the mechanism for determining the sales price, which is generally fixed upon transfer of control, but the contracts generally do not impose a specific quantity on either party. Quantities to be delivered to the customer are determined at a point near the date of delivery through purchase orders or other written instructions we receive from the customer. Spot market sales are made through purchase orders or other written instructions. We consider our performance obligation to be complete and recognize revenue when control transfers in accordance with shipping terms.
Revenue is measured as the amount of consideration we expect to receive in exchange for transferring product. We reduce the amount of revenue recognized for estimated returns and other customer credits, such as discounts and volume rebates, based on the expected value to be realized. Payment terms are consistent with terms standard to the markets we serve. Sales taxes collected from customers are excluded from revenues.
The following table represents our Revenues by market:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2023202220232022
Steelmaking:
Automotive$1,958 $1,734 $5,808 $4,985 
Infrastructure and manufacturing1,427 1,462 4,315 4,619 
Distributors and converters1,321 1,468 4,020 5,137 
Steel producers
737 847 2,234 2,740 
Total Steelmaking5,443 5,511 16,377 17,481 
Other Businesses:
Automotive133 113 415 359 
Infrastructure and manufacturing9 14 29 43 
Distributors and converters20 15 63 62 
Total Other Businesses162 142 507 464 
Total revenues$5,605 $5,653 $16,884 $17,945 
The following tables represent our Revenues by product line:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2023202220232022
Steelmaking:
Hot-rolled steel$1,269 $1,050 $3,747 $3,495 
Cold-rolled steel651 740 2,038 2,593 
Coated steel1,748 1,757 5,154 5,338 
Stainless and electrical steel568 596 1,757 1,765 
Plate382 432 1,112 1,306 
Slab and other steel products322 370 1,015 1,121 
Other503 566 1,554 1,863 
Total Steelmaking5,443 5,511 16,377 17,481 
Other Businesses:
Other162 142 507 464 
Total revenues$5,605 $5,653 $16,884 $17,945 
9
NOTE 4 - SEGMENT REPORTING
We are vertically integrated from mined raw materials and direct reduced iron and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling and tubing. We are organized into four operating segments based on our differentiated products – Steelmaking, Tubular, Tooling and Stamping, and European Operations. We have one reportable segment – Steelmaking. The operating segment results of our Tubular, Tooling and Stamping, and European Operations that do not constitute reportable segments are combined and disclosed in the Other Businesses category. Our Steelmaking segment operates as the largest flat-rolled steel producer supported by being the largest iron ore pellet producer as well as a leading prime scrap processor in North America, primarily serving the automotive, distributors and converters, and infrastructure and manufacturing markets. Our Other Businesses primarily include the operating segments that provide customer solutions with carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components, and complex assemblies. All intersegment transactions were eliminated in consolidation.
We evaluate performance on an operating segment basis, as well as a consolidated basis, based on Adjusted EBITDA, which is a non-GAAP measure. This measure is used by management, investors, lenders and other external users of our financial statements to assess our operating performance and to compare operating performance to other companies in the steel industry. In addition, management believes Adjusted EBITDA is a useful measure to assess the earnings power of the business without the impact of capital structure and can be used to assess our ability to service debt and fund future capital expenditures in the business.
Our results by segment are as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2023202220232022
Revenues:
Steelmaking$5,443 $5,511 $16,377 $17,481 
Other Businesses162 142 507 464 
Total revenues$5,605 $5,653 $16,884 $17,945 
Adjusted EBITDA:
Steelmaking$603 $447 $1,608 $2,980 
Other Businesses9 9 32 58 
Eliminations2 7 (8)8 
Total Adjusted EBITDA$614 $463 $1,632 $3,046 
The following table provides a reconciliation of our consolidated Net income to total Adjusted EBITDA:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2023202220232022
Net income$275 $165 $589 $1,580 
Less:
Interest expense, net(70)(64)(226)(205)
Income tax expense(29)(10)(118)(404)
Depreciation, depletion and amortization(249)(237)(738)(788)
623 476 1,671 2,977 
Less:
EBITDA of noncontrolling interests1
20 22 60 57 
Gain (loss) on extinguishment of debt— 4 — (76)
Asset impairment— — — (29)
Other, net(11)(13)(21)(21)
Total Adjusted EBITDA$614 $463 $1,632 $3,046 
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests$11 $13 $35 $31 
Depreciation, depletion and amortization9 9 25 26 
EBITDA of noncontrolling interests$20 $22 $60 $57 
10
The following summarizes our assets by segment:
(In millions)September 30,
2023		December 31,
2022
Assets:
Steelmaking$17,481 $18,070 
Other Businesses819 836 
Intersegment eliminations(531)(521)
Total segment assets17,769 18,385 
Corporate290 370 
Total assets$18,059 $18,755 
The following table summarizes our depreciation, depletion and amortization and capital additions by segment:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2023202220232022
Depreciation, depletion and amortization:
Steelmaking$(241)$(227)$(711)$(758)
Other Businesses(8)(10)(27)(30)
Total depreciation, depletion and amortization$(249)$(237)$(738)$(788)
Capital additions1:
Steelmaking$217 $240 $503 $712 
Other Businesses— 6 3 21 
Corporate1 1 2 3 
Total capital additions$218 $247 $508 $736 
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
NOTE 5 - PROPERTY, PLANT AND EQUIPMENT
The following table indicates the carrying value of each of the major classes of our depreciable assets:
(In millions)September 30,
2023		December 31,
2022
Land, land improvements and mineral rights$1,388 $1,388 
Buildings934 921 
Equipment9,652 9,289 
Other253 238 
Construction in progress611 552 
Total property, plant and equipment1
12,838 12,388 
Allowance for depreciation and depletion(4,001)(3,318)
Property, plant and equipment, net$8,837 $9,070 
1 Includes right-of-use assets related to finance leases of $485 million and $408 million as of September 30, 2023 and December 31, 2022, respectively.
We recorded depreciation and depletion expense of $247 million and $732 million for the three and nine months ended September 30, 2023, respectively, and $235 million and $782 million for the three and nine months ended September 30, 2022, respectively. Depreciation and depletion expense for the nine months ended September 30, 2022 includes $23 million of accelerated depreciation related to the decision to indefinitely idle the coke facility at Middletown Works and $68 million of accelerated depreciation related to the indefinite idle of the Indiana Harbor #4 blast furnace.
11
NOTE 6 - GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES
GOODWILL
The following is a summary of Goodwill by segment:
(In millions)September 30,
2023		December 31,
2022
Steelmaking$956 $956 
Other Businesses174 174 
Total goodwill$1,130 $1,130 
INTANGIBLE ASSETS AND LIABILITIES
The following is a summary of our intangible assets and liabilities:
September 30, 2023
December 31, 2022
(In millions)Gross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet Amount
Intangible assets1:
Customer relationships$90 $(17)$73 $90 $(13)$77 
Developed technology60 (13)47 60 (10)50 
Trade names and trademarks18 (5)13 18 (4)14 
Mining permits72 (28)44 72 (27)45 
Supplier relationships29 (2)27 29 (1)28 
Total intangible assets$269 $(65)$204 $269 $(55)$214 
Intangible liabilities2:
Above-market supply contracts$(71)$23 $(48)$(71)$19 $(52)
1 Intangible assets are classified as Other non-current assets. Amortization related to mining permits is recognized in Cost of goods sold. Amortization of all other intangible assets is recognized in Selling, general and administrative expenses.
2 Intangible liabilities are classified as Other non-current liabilities. Amortization of all intangible liabilities is recognized in Cost of goods sold.
Amortization expense related to intangible assets was $3 million for both the three months ended September 30, 2023 and 2022, and $10 million for both the nine months ended September 30, 2023 and 2022. Estimated future amortization expense is $3 million for the remainder of 2023 and $13 million annually for the years 2024 through 2028.
Income from amortization related to the intangible liabilities was $1 million for both the three months ended September 30, 2023 and 2022, and $4 million for both the nine months ended September 30, 2023 and 2022. Estimated future income from amortization is $1 million for the remainder of 2023 and $5 million annually for the years 2024 through 2028.
12
NOTE 7 - DEBT AND CREDIT FACILITIES
The following represents a summary of our long-term debt:
(In millions)
Debt Instrument
Issuer1
Annual Effective
Interest Rate		September 30,
2023		December 31,
2022
Senior Secured Notes:
6.750% 2026 Senior Secured Notes
Cliffs6.990%$829 $829 
Senior Unsecured Notes:
7.000% 2027 Senior Notes
Cliffs9.240%73 73 
7.000% 2027 AK Senior Notes
AK Steel9.240%56 56 
5.875% 2027 Senior Notes
Cliffs6.490%556 556 
4.625% 2029 Senior Notes
Cliffs4.625%368 368 
6.750% 2030 Senior Notes
Cliffs6.750%750 — 
4.875% 2031 Senior Notes
Cliffs4.875%325 325 
6.250% 2040 Senior Notes
Cliffs6.340%235 235 
ABL Facility
Cliffs2
Variable3
325 1,864 
Total principal amount3,517 4,306 
Unamortized discounts and issuance costs(59)(57)
Total long-term debt$3,458 $4,249 
1 Unless otherwise noted, references in this column and throughout this NOTE 7 - DEBT AND CREDIT FACILITIES to "Cliffs" are to Cleveland-Cliffs Inc., and references to "AK Steel" are to AK Steel Corporation (n/k/a Cleveland-Cliffs Steel Corporation).
2 Refers to Cleveland-Cliffs Inc. as borrower under our ABL Facility.
3 Our ABL Facility annual effective interest rate was 7.148% and 5.602%, respectively, as of September 30, 2023 and December 31, 2022.
6.750% 2030 Senior Notes - 2023 Offering
On April 14, 2023, we entered into an indenture among Cliffs, the guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee, relating to the issuance of $750 million aggregate principal amount of our 6.750% 2030 Senior Notes, which were issued at par. The 6.750% 2030 Senior Notes were issued in a private placement transaction exempt from the registration requirements of the Securities Act.
The 6.750% 2030 Senior Notes bear interest at a rate of 6.750% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, which commenced on October 15, 2023. The 6.750% 2030 Senior Notes mature on April 15, 2030.
The 6.750% 2030 Senior Notes are unsecured senior obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. The 6.750% 2030 Senior Notes are guaranteed on a senior unsecured basis by our material direct and indirect wholly owned domestic subsidiaries. The 6.750% 2030 Senior Notes are structurally subordinated to all existing and future indebtedness and other liabilities of our subsidiaries that do not guarantee the 6.750% 2030 Senior Notes.
The 6.750% 2030 Senior Notes may be redeemed, in whole or in part, at any time at our option not less than 10 days nor more than 60 days after prior notice is sent to the holders of the 6.750% 2030 Senior Notes. The 6.750% 2030 Senior Notes are redeemable prior to April 15, 2026, at a redemption price equal to 100% of the principal amount thereof plus a "make-whole" premium set forth in the indenture. We may also redeem up to 35% of the aggregate principal amount of the 6.750% 2030 Senior Notes prior to April 15, 2026 at a redemption price equal to 106.750% of the principal amount thereof with the net cash proceeds of one or more equity offerings. The 6.750% 2030 Senior Notes are redeemable beginning on April 15, 2026, at a redemption price equal to 103.375% of the principal amount thereof, decreasing to 101.688% on April 15, 2027, and are redeemable at par beginning on April 15, 2028. In each case, we pay the applicable redemption and "make-whole" premiums plus accrued and unpaid interest, if any, to, but not including, the date of redemption.
In addition, if a change in control triggering event, as defined in the indenture, occurs with respect to the 6.750% 2030 Senior Notes, we will be required to offer to repurchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to, but not including, the date of repurchase.
The terms of the 6.750% 2030 Senior Notes contain certain customary covenants; however, there are no financial covenants.
ABL FACILITY
On June 9, 2023, we entered into the Fourth ABL Amendment to our ABL Facility to, among other things, increase the amount of tranche A revolver commitments available thereunder by an additional $250 million to an aggregate principal amount of $4.75 billion and extend the maturity date of all commitments under the ABL Facility from March 13, 2025 to June 9, 2028. The Fourth ABL Amendment removed the LIBOR option for variable rate loans due to its cessation and replaced it with a SOFR option. Borrowings under the ABL Facility bear interest, at our option, at a base rate or, if certain conditions are met, a SOFR rate, in each
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case, plus an applicable tiered margin. The base rate is equal to the greater of the federal funds rate plus 0.5% or the term SOFR plus 1.25%.
As of September 30, 2023, we were in compliance with the ABL Facility liquidity requirements and, therefore, the springing financial covenant requiring a minimum fixed charge coverage ratio of 1.0 to 1.0 was not applicable.
The following represents a summary of our borrowing capacity under the ABL Facility:
(In millions)September 30,
2023
Available borrowing base on ABL Facility1
$4,750 
Borrowings(325)
Letter of credit obligations2
(94)
Borrowing capacity available$4,331 
1 As of September 30, 2023, the ABL Facility has a maximum available borrowing base of $4.75 billion. The borrowing base is determined by applying customary advance rates to eligible accounts receivable, inventory and certain mobile equipment.
2 We issued standby letters of credit with certain financial institutions in order to support business obligations, including, but not limited to, workers' compensation, operating agreements, employee severance, environmental obligations, and insurance.
DEBT MATURITIES
The following represents a summary of our maturities of debt instruments based on the principal amounts outstanding at September 30, 2023 (in millions):
2023 2024202520262027ThereafterTotal
$— $— $— $829 $685 $2,003 $3,517 
NOTE 8 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS
We offer defined benefit pension plans, defined contribution pension plans and OPEB plans to a significant portion of our employees and retirees. Benefits are also provided through multiemployer plans for certain union members.
The following are the components of defined benefit pension and OPEB costs (credits):
DEFINED BENEFIT PENSION COSTS (CREDITS)
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2023202220232022
Service cost$8 $11 $24 $35 
Interest cost59 32 176 95 
Expected return on plan assets(79)(93)(236)(277)
Amortization:
Prior service costs5 1 13 1 
Net actuarial loss— 4 2 11 
Net periodic benefit credits$(7)$(45)$(21)$(135)
OPEB COSTS (CREDITS)
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2023202220232022
Service cost$2 $11 $7 $