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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 June 30, 2024
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 468,040,431 as of July 24, 2024.


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 JUNE 30, 2024 AND DECEMBER 31, 2023
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023
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 AND USE OF PROCEEDS
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. Unless otherwise indicated, references to "$" is to United States currency.
Abbreviation or acronymTerm
7.000% 2032 Senior Notes7.000% Senior Guaranteed Notes due 2032 issued by Cleveland-Cliffs Inc. on March 18, 2024 in an aggregate principal amount of $825 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, Weirton indefinite idle, extinguishment of debt and other, net
Arrangement AgreementArrangement Agreement, by and between Stelco, Purchaser and Cleveland-Cliffs Inc., dated July 14, 2024
AOCIAccumulated other comprehensive income (loss)
ASUAccounting Standards Update
BOFBasic oxygen furnace
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
DOEU.S. Department of Energy
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
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
Infrastructure and Jobs ActInfrastructure Investment and Jobs Act of 2021
Metric ton (mt)2,205 pounds
MSHAMine Safety and Health Administration of the U.S. Department of Labor
Net ton (nt)2,000 pounds
NOESNon-oriented electrical steel
OPEBOther postretirement benefits
Platts 62% pricePlatts IODEX 62% Fe Fines CFR North China
Purchaser13421422 Canada Inc., a Canadian corporation and a direct, wholly-owned subsidiary of Cleveland-Cliffs Inc.
SECU.S. Securities and Exchange Commission
Section 232Section 232 of the Trade Expansion Act of 1962 (as amended by the Trade Act of 1974)
Securities ActSecurities Act of 1933, as amended
StelcoStelco Holdings Inc., a Canadian corporation
Stelco AcquisitionThe acquisition of all of the outstanding common shares of Stelco by Purchaser, subject to the terms and conditions set forth in the Arrangement Agreement
SunCoke MiddletownMiddletown Coke Company, LLC, a subsidiary of SunCoke Energy, Inc.
USMCAUnited States-Mexico-Canada Agreement
USWUnited Steelworkers
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)June 30,
2024		December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents$110 $198 
Accounts receivable, net1,773 1,840 
Inventories4,199 4,460 
Other current assets110 138 
Total current assets6,192 6,636 
Non-current assets:
Property, plant and equipment, net8,728 8,895 
Goodwill1,005 1,005 
Pension and OPEB assets354 329 
Other non-current assets649 672 
TOTAL ASSETS$16,928 $17,537 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$2,080 $2,099 
Accrued employment costs431 511 
Accrued expenses296 380 
Other current liabilities511 518 
Total current liabilities3,318 3,508 
Non-current liabilities:
Long-term debt3,507 3,137 
Pension and OPEB liabilities757 821 
Deferred income taxes621 639 
Other non-current liabilities1,353 1,310 
TOTAL LIABILITIES9,556 9,415 
Commitments and contingencies (See Note 17)
Equity:
Common shares - par value $0.125 per share
Authorized - 1,200,000,000 shares (2023 - 1,200,000,000 shares);
Issued - 531,051,530 shares (2023 - 531,051,530 shares);
Outstanding - 468,038,839 shares (2023 - 504,886,773 shares)
66 66 
Capital in excess of par value of shares4,864 4,861 
Retained earnings1,668 1,733 
Cost of 63,012,691 common shares in treasury (2023 - 26,164,757 shares)
(1,154)(430)
Accumulated other comprehensive income1,666 1,657 
Total Cliffs shareholders' equity7,110 7,887 
Noncontrolling interests262 235 
TOTAL EQUITY7,372 8,122 
TOTAL LIABILITIES AND EQUITY$16,928 $17,537 
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
June 30,		Six Months Ended
June 30,
(In millions, except per share amounts)2024202320242023
Revenues$5,092 $5,984 $10,291 $11,279 
Operating costs:
Cost of goods sold(4,930)(5,340)(9,844)(10,536)
Selling, general and administrative expenses(103)(149)(235)(276)
Restructuring and other charges(25)— (129)— 
Asset impairments(15)— (79)— 
Miscellaneous – net(13)(12)(36)(15)
Total operating costs(5,086)(5,501)(10,323)(10,827)
Operating income (loss)6 483 (32)452 
Other income (expense):
Interest expense, net(69)(79)(133)(156)
Loss on extinguishment of debt(6)— (27)— 
Net periodic benefit credits other than service cost component62 50 122 100 
Other non-operating income1 4 3 6 
Total other expense(12)(25)(35)(50)
Income (loss) from continuing operations before income taxes(6)458 (67)402 
Income tax benefit (expense)15 (102)23 (89)
Income (loss) from continuing operations9 356 (44)313 
Income from discontinued operations, net of tax— — — 1 
Net income (loss)9 356 (44)314 
Income attributable to noncontrolling interests(7)(9)(21)(24)
Net income (loss) attributable to Cliffs shareholders$2 $347 $(65)$290 
Earnings (loss) per common share attributable to Cliffs shareholders - basic
Continuing operations$— $0.68 $(0.13)$0.56 
Discontinued operations— — — — 
$— $0.68 $(0.13)$0.56 
Earnings (loss) per common share attributable to Cliffs shareholders - diluted
Continuing operations$— $0.67 $(0.13)$0.56 
Discontinued operations— — — — 
$— $0.67 $(0.13)$0.56 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS)
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2024202320242023
Net income (loss)$9 $356 $(44)$314 
Other comprehensive income (loss):
Changes in pension and OPEB, net of tax(29)(26)(57)(53)
Changes in derivative financial instruments, net of tax47 18 67 (134)
Changes in foreign currency translation— — (1)— 
Total other comprehensive income (loss)18 (8)9 (187)
Comprehensive income (loss)27 348 (35)127 
Comprehensive loss attributable to noncontrolling interests(7)(9)(21)(24)
Comprehensive income (loss) attributable to Cliffs shareholders$20 $339 $(56)$103 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES
Six Months Ended
June 30,
(In millions)20242023
OPERATING ACTIVITIES
Net income (loss)$(44)$314 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization458 489 
Restructuring and other charges129 — 
Asset impairments79 — 
Pension and OPEB credits(104)(79)
Loss on extinguishment of debt27 — 
Other47 90 
Changes in operating assets and liabilities:
Accounts receivable, net67 (333)
Inventories227 403 
Income taxes(12)169 
Pension and OPEB payments and contributions(62)(58)
Payables, accrued employment and accrued expenses(176)(78)
Other, net25 (69)
Net cash provided by operating activities661 848 
INVESTING ACTIVITIES
Purchase of property, plant and equipment(339)(319)
Other investing activities8 9 
Net cash used by investing activities(331)(310)
FINANCING ACTIVITIES
Repurchase of common shares(733)(94)
Proceeds from issuance of senior notes825 750 
Repayments of senior notes(845)— 
Borrowings (repayments) under credit facilities, net370 (1,031)
Debt issuance costs(13)(34)
Other financing activities(22)(121)
Net cash used by financing activities(418)(530)
Net increase (decrease) in cash and cash equivalents(88)8 
Cash and cash equivalents at beginning of period198 26 
Cash and cash equivalents at end of period$110 $34 
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, 2023504.9 $66 $4,861 $1,733 $(430)$1,657 $235 $8,122 
Comprehensive income (loss)— — — (67)— (9)14 (62)
Common stock repurchases, net of excise tax(30.4)— — — (615)— — (615)
Stock and other incentive plans1.0 — (10)— 15 — — 5 
Net distributions to noncontrolling interests— — — — — — (8)(8)
March 31, 2024475.5 $66 $4,851 $1,666 $(1,030)$1,648 $241 $7,442 
Comprehensive income— — — 2 — 18 7 27 
Common stock repurchases, net of excise tax(7.5)— — — (125)— — (125)
Stock and other incentive plans— — 13 — 1 — — 14 
Net contributions to noncontrolling interests— — — — — — 14 14 
June 30, 2024468.0 $66 $4,864 $1,668 $(1,154)$1,666 $262 $7,372 
(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 
Common stock repurchases(6.5)— — — (95)— — (95)
Stock and other incentive plans0.1 — 9 — 3 — — 12 
Net distributions to noncontrolling interests— — — — — — (14)(14)
June 30, 2023508.7 $66 $4,841 $1,624 $(372)$1,643 $242 $8,044 
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 (loss), 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 six months ended June 30, 2024 are not necessarily indicative of results to be expected for the year ending December 31, 2024 or any other future period. Certain prior period amounts have been reclassified to conform with the current year presentation. 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, 2023.
NATURE OF BUSINESS
We are a leading North America-based steel producer with focus on value-added sheet products, particularly for the automotive industry. We are also a leading producer of electrical steels referred to as GOES and NOES in the U.S. We are vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. Headquartered in Cleveland, Ohio, we employ approximately 28,000 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. Our investment in affiliates of $118 million and $123 million as of June 30, 2024 and December 31, 2023, 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, 2023 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 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.
In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This guidance requires additional annual and interim disclosures for reportable segments. This new standard does not affect the recognition, measurement or financial statement presentation. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance requires additional annual and interim disclosures for income taxes. This new standard does not affect the recognition, measurement or financial statement presentation. The amendments are effective for fiscal years beginning after December 15, 2024.
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)20242023
Allowance for credit losses as of January 1$(5)$(4)
Decrease (increase) in allowance— (3)
Allowance for credit losses as of June 30$(5)$(7)
INVENTORIES
The following table presents the detail of our Inventories on the Statements of Unaudited Condensed Consolidated Financial Position:
(In millions)June 30,
2024		December 31,
2023
Product inventories
Finished and semi-finished goods$2,275 $2,573 
Raw materials1,508 1,476 
Total product inventories3,783 4,049 
Manufacturing supplies and critical spares416 411 
Inventories$4,199 $4,460 
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 June 30, 2024 and December 31, 2023, we had $27 million and $21 million, respectively, deemed as short-term financings that are classified in Other current liabilities. Additionally, as of June 30, 2024 and December 31, 2023, we had $80 million and $91 million, respectively, classified as Accounts payable.
WEIRTON INDEFINITE IDLE
On February 15, 2024, we announced the indefinite idle of our tinplate production plant located in Weirton, West Virginia. As of June 30, 2024, we have incurred $210 million of charges related to the idle and estimate that we will incur an additional $2 million in Restructuring and other charges, primarily related to employee related costs which are expected to be incurred by the end of 2024.
The following table represents a reconciliation of our accrued liabilities related to the Weirton Indefinite Idle:
(In millions)Employee- Related CostsExit CostsAsset ImpairmentTotal
Balance as of December 31, 2023$— $— $— $— 
Costs incurred1
58 48 64 170 
Cash payments— (2)— (2)
Non-cash— — (64)(64)
Balance as of March 31, 2024$58 $46 $— $104 
Costs incurred2
23 2 15 40 
Cash payments(8)(10)— (18)
Non-cash— — (15)(15)
Balance as of June 30, 2024$73 $38 $— $111 
1 Of the $170 million of cost incurred, $104 million was recorded in Restructuring and other charges, $64 million was recorded in Asset impairments and $2 million was recorded in Net periodic benefit credits other than service cost component.
2 Of the $40 million of costs incurred, $25 million was recorded in Restructuring and other charges and $15 million was recorded in Asset impairments.
8
CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Six Months Ended
June 30,
(In millions)20242023
Capital additions$346 $290 
Less:
Non-cash accruals(47)(89)
Right-of-use assets - finance leases54 60 
Cash paid for capital expenditures including deposits$339 $319 
Cash payments (receipts) for income taxes and interest are as follows:
Six Months Ended
June 30,
(In millions)20242023
Income taxes paid$10 $37 
Income tax refunds(4)(138)
Interest paid on debt obligations net of capitalized interest1
134 142 
1 Capitalized interest was $8 million and $6 million for the six months ended June 30, 2024 and 2023, respectively.
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
June 30,		Six Months Ended
June 30,
(In millions)2024202320242023
Steelmaking:
Direct automotive$1,460 $1,980 $3,077 $3,850 
Infrastructure and manufacturing1,421 1,591 2,813 2,888 
Distributors and converters1,402 1,441 2,814 2,699 
Steel producers
632 796 1,238 1,497 
Total Steelmaking4,915 5,808 9,942 10,934 
Other Businesses:
Direct automotive148 143 288 282 
Infrastructure and manufacturing10 10 20 20 
Distributors and converters19 23 41 43 
Total Other Businesses177 176 349 345 
Total revenues$5,092 $5,984 $10,291 $11,279 
9
The following tables represent our Revenues by product line:
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2024202320242023
Steelmaking:
Hot-rolled steel$1,115 $1,357 $2,243 $2,478 
Cold-rolled steel711 748 1,460 1,387 
Coated steel1,546 1,789 3,169 3,406 
Stainless and electrical steel480 615 941 1,189 
Plate317 399 650 730 
Slab and other steel products318 366 653 693 
Other428 534 826 1,051 
Total Steelmaking4,915 5,808 9,942 10,934 
Other Businesses:
Other177 176 349 345 
Total revenues$5,092 $5,984 $10,291 $11,279 
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 a leading North America-based steel producer supported by being the largest iron ore pellet producer as well as a leading prime scrap processor, 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 allocate Corporate Selling, general and administrative expenses to our operating segments.
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
June 30,		Six Months Ended
June 30,
(In millions)2024202320242023
Revenues:
Steelmaking$4,915 $5,808 $9,942 $10,934 
Other Businesses177 176 349 345 
Total revenues$5,092 $5,984 $10,291 $11,279 
Adjusted EBITDA:
Steelmaking$306 $765 $701 $1,005 
Other Businesses18 15 35 23 
Eliminations(1)(5)1 (10)
Total Adjusted EBITDA$323 $775 $737 $1,018 
10
The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2024202320242023
Net income (loss)$9 $356 $(44)$314 
Less:
Interest expense, net(69)(79)(133)(156)
Income tax benefit (expense)15 (102)23 (89)
Depreciation, depletion and amortization(228)(247)(458)(489)
291 784 524 1,048 
Less:
EBITDA of noncontrolling interests1
15 17 36 40 
Weirton indefinite idle2
(40)— (217)— 
Loss on extinguishment of debt(6)— (27)— 
Other, net(1)(8)(5)(10)
Total Adjusted EBITDA$323 $775 $737 $1,018 
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests$7 $9 $21 $24 
Depreciation, depletion and amortization8 8 15 16 
EBITDA of noncontrolling interests$15 $17 $36 $40 
2 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for further information.
The following table summarizes our depreciation, depletion and amortization and capital additions by segment:
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2024202320242023
Depreciation, depletion and amortization:
Steelmaking$(219)$(239)$(441)$(470)
Other Businesses(9)(8)(17)(19)
Total depreciation, depletion and amortization$(228)$(247)$(458)$(489)
Capital additions1:
Steelmaking$187 $159 $343 $286 
Other Businesses2 2 3 3 
Corporate— 1 — 1 
Total capital additions$189 $162 $346 $290 
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
The following summarizes our assets by segment:
(In millions)June 30,
2024		December 31,
2023
Assets:
Steelmaking$16,362 $16,880 
Other Businesses666 657 
Intersegment eliminations(506)(507)
Total segment assets16,522 17,030 
Corporate406 507 
Total assets$16,928 $17,537 
11
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)June 30,
2024		December 31,
2023
Land, land improvements and mineral rights$1,389 $1,389 
Buildings937 946 
Equipment9,822 9,680 
Other314 302 
Construction in progress645 590 
Total property, plant and equipment1
13,107 12,907 
Allowance for depreciation and depletion(4,379)(4,012)
Property, plant and equipment, net$8,728 $8,895 
1 Includes right-of-use assets related to finance leases of $347 million and $306 million as of June 30, 2024 and December 31, 2023, respectively.
We recorded depreciation and depletion expense of $227 million and $454 million for the three and six months ended June 30, 2024, respectively, and $246 million and $485 million for the three and six months ended June 30, 2023, respectively.
During the first quarter of 2024, we announced the indefinite idle of our Weirton tinplate production plant, which resulted in a $46 million impairment charge to Property, plant and equipment, net.
NOTE 6 - GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES
GOODWILL
The following is a summary of Goodwill by segment:
(In millions)June 30,
2024		December 31,
2023
Steelmaking$956 $956 
Other Businesses49 49 
Total goodwill$1,005 $1,005 
INTANGIBLE ASSETS AND LIABILITIES
The following is a summary of our intangible assets and liabilities:
June 30, 2024
December 31, 2023
(In millions)Gross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet Amount
Intangible assets1:
Customer relationships$90 $(21)$69 $90 $(18)$72 
Developed technology60 (16)44 60 (14)46 
Trade names and trademarks18 (6)12 18 (5)13 
Mining permits72 (28)44 72 (28)44 
Supplier relationships29 (4)25 29 (3)26 
Total intangible assets$269 $(75)$194 $269 $(68)$201 
Intangible liabilities2:
Above-market supply contracts$(71)$27 $(44)$(71)$24 $(47)
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 June 30, 2024 and 2023, and $7 million for both the six months ended June 30, 2024 and 2023. Estimated future amortization expense is $6 million for the remainder of 2024 and $13 million annually for the years 2025 through 2029.
Income from amortization related to the intangible liabilities was $2 million for both the three months ended June 30, 2024 and 2023, and $3 million for both the six months ended June 30, 2024 and 2023. Estimated future income from amortization is $2 million for the remainder of 2024 and $5 million annually for the years 2025 through 2029.
12
NOTE 7 - DEBT AND CREDIT FACILITIES
The following represents a summary of our long-term debt:
(In millions)
Debt Instrument
Issuer1
Annual Effective
Interest Rate		June 30,
2024		December 31,
2023
Senior Secured Notes:
6.750% 2026 Senior Secured Notes
Cliffs6.990%$— $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%750 750 
4.875% 2031 Senior Notes
Cliffs4.875%325 325 
7.000% 2032 Senior Notes
Cliffs7.000%825 — 
6.250% 2040 Senior Notes
Cliffs6.340%235 235 
ABL Facility
Cliffs2
Variable3
370 — 
Total principal amount3,558 3,192 
Unamortized discounts and issuance costs(51)(55)
Total long-term debt$3,507 $3,137 
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 6.690% as of June 30, 2024.
7.000% 2032 SENIOR NOTES OFFERING
On March 18, 2024, 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 $825 million aggregate principal amount of our 7.000% 2032 Senior Notes, which were issued at par. The 7.000% 2032 Senior Notes were issued in a private placement transaction exempt from the registration requirements of the Securities Act.
The 7.000% 2032 Senior Notes bear interest at a rate of 7.000% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September 15, 2024. The 7.000% 2032 Senior Notes mature on March 15, 2032.
The 7.000% 2032 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 7.000% 2032 Senior Notes are guaranteed on a senior unsecured basis by our material direct and indirect wholly owned domestic subsidiaries. The 7.000% 2032 Senior Notes are structurally subordinated to all existing and future indebtedness and other liabilities of our subsidiaries that do not guarantee the 7.000% 2032 Senior Notes.
The 7.000% 2032 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 7.000% 2032 Senior Notes. The 7.000% 2032 Senior Notes are redeemable prior to March 15, 2027, 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 7.000% 2032 Senior Notes prior to March 15, 2027, at a redemption price equal to 107.000% of the principal amount thereof with the net cash proceeds of one or more equity offerings. The 7.000% 2032 Senior Notes are redeemable beginning on March 15, 2027, at a redemption price equal to 103.500% of the principal amount thereof, decreasing to 101.750% on March 15, 2028, and are redeemable at par beginning on March 15, 2029. In each case, we pay the applicable redemption or "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 7.000% 2032 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 7.000% 2032 Senior Notes contain certain customary covenants; however, there are no financial covenants.
DEBT EXTINGUISHMENTS
On March 18, 2024, we used a portion of the net proceeds from the 7.000% 2032 Senior Notes issuance to repurchase $640 million in aggregate principal amount of our 6.750% 2026 Senior Secured Notes pursuant to a tender offer. On April 3, 2024,
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we redeemed the remaining $189 million in aggregate principal amount of our then-outstanding 6.750% 2026 Senior Secured Notes with the remaining portion of the net proceeds from the 7.000% 2032 Senior Notes issuance and available liquidity.
ABL FACILITY
As of June 30, 2024, 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)June 30,
2024
Available borrowing base on ABL Facility1
$4,050 
Borrowings(370)
Letter of credit obligations2
(46)
Borrowing capacity available$3,634 
1 As of June 30, 2024, 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, operating agreements, employee severance, environmental obligations, workers' compensation and insurance obligations.
DEBT MATURITIES
The following represents a summary of our maturities of debt instruments based on the principal amounts outstanding at June 30, 2024 (in millions):
20242025202620272028ThereafterTotal
$— $— $— $685 $370 $2,503 $3,558 
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
June 30,		Six Months Ended
June 30,
(In millions)2024202320242023
Service cost$7 $8 $14 $16 
Interest cost54 58 109 117 
Expected return on plan assets(80)(78)(160)(157)
Amortization:
Prior service costs4 4 8 8 
Net actuarial loss— 1 — 2 
Net periodic benefit credits$(15)$(7)$(29)$(14)
OPEB COSTS (CREDITS)
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2024202320242023
Service cost$2 $3 $4 $5 
Interest cost13 16 25 32 
Expected return on plan assets(10)(10)(21)(21)
Termination benefits1
— — 2 — 
Amortization:
Prior service credits(4)(4)(8)(8)
Net actuarial gain(39)(37)(77)(73)
Net periodic benefit credits$(38)$(32)$(75)$(65)
1 The termination benefits relate to the announcement of the indefinite idle of our Weirton tinplate production plant.
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Based on funding requirements, we made $16 million of defined benefit pension contributions for both the three and six months ended June 30, 2024, respectively, and no defined benefit pension contributions for the three and six months ended June 30, 2023. Based on funding requirements, we made no contributions to our voluntary employee be