UNITED STATES STEEL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)


	Three Months Ended March 31,
(Dollars in millions, except per share amounts)	2023		2022
Net sales:
Net sales	$	3,912	$	4,843
Net sales to related parties (Note 19)	558		391
Total (Note 6)	4,470		5,234
Operating expenses (income):
Cost of sales (excludes items shown below)	3,953		3,823
Selling, general and administrative expenses	99		117
Depreciation, depletion and amortization	221		198
Loss (earnings) from investees	13		(36)
Asset impairment charges	4		6

Restructuring and other charges (Note 20)	1		17
Net gains on sale of assets	(2)		(2)
Other gains, net	(8)		(7)
Total	4,281		4,116
Earnings before interest and income taxes	189		1,118
Interest expense	27		50
Interest income	(30)		(1)

Other financial costs	6		2
Net periodic benefit income	(42)		(61)
Net gain from investments related to active employee benefits (Note 16)	(22)		—
Net interest and other financial benefits	(61)		(10)
Earnings before income taxes	250		1,128
Income tax expense (Note 12)	51		246
Net earnings	199		882
Less: Net earnings attributable to noncontrolling interests	—		—
Net earnings attributable to United States Steel Corporation	$	199	$	882
Earnings per common share (Note 13):
Earnings per share attributable to United States Steel Corporation stockholders:
'-Basic	$	0.87	$	3.37
'-Diluted	$	0.78	$	3.02

Three Months Ended
September 30, Nine Months Ended
September 30,
(Dollars in millions, except per share amounts) 2017 2016 2017 2016
Net sales:
Net sales $ 2,976
$ 2,370
$ 8,176
$ 6,716
Net sales to related parties (Note 18) 272
316
941
895
Total 3,248
2,686
9,117
7,611
Operating expenses (income):
Cost of sales (excludes items shown below) 2,829
2,360
8,115
7,193
Selling, general and administrative expenses 89
73
265
206
Depreciation, depletion and amortization 118
126
376
384
Earnings from investees (9 ) (18 ) (29 ) (91 )
Gain on equity investee transactions (Note 4) (21 ) —
(21 ) —
Gain associated with retained interest in U. S. Steel Canada Inc. (Note 21) —
—
(72 ) —
Impairment of intangible assets —
14
—
14
Restructuring and other charges (Note 19) (2 ) (3 ) 30
1
Net (gain) loss on disposal of assets (1 ) 3
(2 ) 6
Other income, net —
(1 ) (5 ) (1 )
Total 3,003
2,554
8,657
7,712
Earnings (loss) before interest and income taxes 245
132
460
(101 )
Interest expense 60
58
173
173
Interest income (5 ) (2 ) (13 ) (5 )
Loss on debt extinguishment 31
—
32
22
Other financial costs 12
6
37
18
Net interest and other financial costs (Note 7) 98
62
229
208
Earnings (loss) before income taxes 147
70
231
(309 )
Income tax provision (Note 9) —
19
3
26
Net earnings (loss) 147
51
228
(335 )
Less: Net earnings attributable to noncontrolling interests —
—
—
—
Net earnings (loss) attributable to United States Steel Corporation $ 147
$ 51
$ 228
$ (335 )
Earnings (loss) per common share (Note 10):
Earnings (loss) per share attributable to United States Steel Corporation stockholders:
-Basic $ 0.84
$ 0.32
$ 1.30
$ (2.22 )
-Diluted $ 0.83
$ 0.32
$ 1.29
$ (2.22 )

The accompanying notes are an integral part of these condensed consolidated financial statements.

-1-

UNITED STATES STEEL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ~~(LOSS)~~

(Unaudited)

Three Months Ended
September 30, Nine Months Ended
September 30,
(Dollars in millions) 2017 2016 2017 2016
Net earnings (loss) $ 147
$ 51
$ 228
$ (335 )
Other comprehensive income (loss), net of tax:
Changes in foreign currency translation adjustments 44
10
149
41
Changes in pension and other employee benefit accounts 55
48
146
(134 )
Other 8
(4 ) 6
17
Total other comprehensive income (loss), net of tax 107
54
301
(76 )
Comprehensive income (loss) including noncontrolling interest 254
105
529
(411 )
Comprehensive income attributable to noncontrolling interest —
—
—
—
Comprehensive income (loss) attributable to United States Steel Corporation $ 254
$ 105
$ 529
$ (411 )


	Three Months Ended March 31,
(Dollars in millions)	2023		2022
Net earnings	$	199	$	882
Other comprehensive income (loss), net of tax:
Changes in foreign currency translation adjustments	32		(28)
Changes in pension and other employee benefit accounts	(10)		(3)
Changes in derivative financial instruments	(44)		22
Changes in fair value of active employee benefit investments	3		—
Total other comprehensive loss, net of tax	(19)		(9)
Comprehensive income including noncontrolling interest	180		873
Comprehensive income attributable to noncontrolling interest	—		—
Comprehensive income attributable to United States Steel Corporation	$	180	$	873

The accompanying notes are an integral part of these condensed consolidated financial statements.

-2-

UNITED STATES STEEL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)


(Dollars in millions)	(Unaudited) September 30, 2017			December 31, 2016			(Dollars in millions)	March 31, 2023		December 31, 2022
Assets							Assets
Current assets:							Current assets:
Cash and cash equivalents	$	1,694		$	1,515
Receivables, less allowance of $29 and $25	1,317			976
Receivables from related parties, less allowance of $0 and $265 (Notes 18 and 21)	210			272
Inventories (Note 11)	1,737			1,573
Cash and cash equivalents (Note 7)							Cash and cash equivalents (Note 7)	$	2,837	$	3,504
Receivables, less allowance of $38 in both periods							Receivables, less allowance of $38 in both periods	1,649		1,485
Receivables from related parties (Note 19)							Receivables from related parties (Note 19)	159		150
Inventories (Note 8)							Inventories (Note 8)	2,541		2,359
Other current assets	43			20			Other current assets	362		368
Total current assets	5,001			4,356			Total current assets	7,548		7,866
Long-term restricted cash (Note 7)							Long-term restricted cash (Note 7)	32		31
Operating lease assets							Operating lease assets	134		146
Property, plant and equipment	14,781			14,196			Property, plant and equipment	21,806		21,222
Less accumulated depreciation and depletion	10,670			10,217			Less accumulated depreciation and depletion	12,931		12,730
Total property, plant and equipment, net	4,111			3,979			Total property, plant and equipment, net	8,875		8,492
Investments and long-term receivables, less allowance of $11 and $10	470			528
Long-term receivables from related parties, less allowance of $0 and $1,627 (Notes 18 and 21)	—			—
Intangibles, net (Note 5)	169			175
Deferred income tax benefits (Note 9)	—			6
Investments and long-term receivables, less allowance of $3 and $4							Investments and long-term receivables, less allowance of $3 and $4	830		840
Intangibles, net (Note 9)							Intangibles, net (Note 9)	467		478
Deferred income tax benefits (Note 12)							Deferred income tax benefits (Note 12)	7		10
Goodwill (Note 9)							Goodwill (Note 9)	920		920
Other noncurrent assets	127			116			Other noncurrent assets	727		675
Total assets	$	9,878		$	9,160		Total assets	$	19,540	$	19,458
Liabilities							Liabilities
Current liabilities:							Current liabilities:
Accounts payable and other accrued liabilities	$	2,018		$	1,602		Accounts payable and other accrued liabilities	$	3,004	$	2,873
Accounts payable to related parties (Notes 18 and 21)	79			66
Accounts payable to related parties (Note 19)							Accounts payable to related parties (Note 19)	171		143
Payroll and benefits payable	333			400			Payroll and benefits payable	388		493
Accrued taxes	157			128			Accrued taxes	267		271
Accrued interest	62			85			Accrued interest	46		67
Short-term debt and current maturities of long-term debt (Note 13)	3			50
Current operating lease liabilities							Current operating lease liabilities	48		49
Short-term debt and current maturities of long-term debt (Note 15)							Short-term debt and current maturities of long-term debt (Note 15)	91		63
Total current liabilities	2,652			2,331			Total current liabilities	4,015		3,959
Long-term debt, less unamortized discount and debt issuance costs (Note 13)	2,896			2,981
Noncurrent operating lease liabilities							Noncurrent operating lease liabilities	95		105
Long-term debt, less unamortized discount and debt issuance costs (Note 15)							Long-term debt, less unamortized discount and debt issuance costs (Note 15)	3,901		3,914
Employee benefits	1,119			1,216			Employee benefits	146		209
Deferred income tax liabilities (Note 9)	29			28
Deferred income tax liabilities (Note 12)							Deferred income tax liabilities (Note 12)	479		456
Deferred credits and other noncurrent liabilities	374			329			Deferred credits and other noncurrent liabilities	509		504
Total liabilities	7,070			6,885			Total liabilities	9,145		9,147
Contingencies and commitments (Note 20)
Stockholders’ Equity (Note 16):
Common stock (176,424,554 shares issued) (Note 10)	176			176
Treasury stock, at cost (1,466,183 and 2,614,378 shares)	(92		)	(182		)
Contingencies and commitments (Note 21)							Contingencies and commitments (Note 21)
Stockholders’ Equity (Note 17):							Stockholders’ Equity (Note 17):
Common stock (284,758,061 and 282,487,412 shares issued) (Note 13)							Common stock (284,758,061 and 282,487,412 shares issued) (Note 13)	285		283
Treasury stock, at cost (57,645,467 shares and 54,089,559 shares)							Treasury stock, at cost (57,645,467 shares and 54,089,559 shares)	(1,301)		(1,204)
Additional paid-in capital	3,937			4,027			Additional paid-in capital	5,205		5,194
Accumulated deficit	(18		)	(250		)
Accumulated other comprehensive loss (Note 17)	(1,196		)	(1,497		)
Retained earnings							Retained earnings	6,217		6,030
Accumulated other comprehensive loss (Note 18)							Accumulated other comprehensive loss (Note 18)	(104)		(85)
Total United States Steel Corporation stockholders’ equity	2,807			2,274			Total United States Steel Corporation stockholders’ equity	10,302		10,218
Noncontrolling interests	1			1			Noncontrolling interests	93		93
Total liabilities and stockholders’ equity	$	9,878		$	9,160		Total liabilities and stockholders’ equity	$	19,540	$	19,458

The accompanying notes are an integral part of these condensed consolidated financial statements.

-3-

UNITED STATES STEEL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)


	Three Months Ended March 31,
(Dollars in millions)	2023		2022
Increase (decrease) in cash, cash equivalents and restricted cash
Operating activities:
Net earnings	$	199	$	882
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, depletion and amortization	221		198
Asset impairment charges	4		6

Restructuring and other charges (Note 20)	1		17

Pensions and other postretirement benefits	(41)		(60)
Active employee benefit investments	(3)		—
Deferred income taxes (Note 12)	38		121
Net gain on sale of assets	(2)		(2)
Equity investee loss (earnings), net of distributions received	13		(36)
Changes in:
Current receivables	(178)		(355)
Inventories	(167)		(467)
Current accounts payable and accrued expenses	298		360
Income taxes receivable/payable	10		140
All other, net	(212)		(33)
Net cash provided by operating activities	181		771
Investing activities:
Capital expenditures	(740)		(349)

Proceeds from sale of assets	2		4
Other investing activities	—		(7)
Net cash used in investing activities	(738)		(352)
Financing activities:



Issuance of long-term debt, net of financing costs (Note 15)	—		4
Repayment of long-term debt (Note 15)	(10)		(6)

Common stock repurchased (Note 22)	(75)		(123)
Proceeds from government incentives (Note 21)	—		82
Other financing activities	(32)		(28)
Net cash used in financing activities	(117)		(71)
Effect of exchange rate changes on cash	8		(7)
Net (decrease) increase in cash, cash equivalents and restricted cash	(666)		341
Cash, cash equivalents and restricted cash at beginning of year (Note 7)	3,539		2,600
Cash, cash equivalents and restricted cash at end of period (Note 7)	$	2,873	$	2,941

Nine Months Ended
September 30,
(Dollars in millions) 2017 2016
Increase (decrease) in cash and cash equivalents
Operating activities:
Net earnings (loss) $ 228
$ (335 )
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, depletion and amortization 376
384
Gain associated with retained interest in U. S. Steel Canada Inc. (Note 21) (72 ) —
Gain on equity investee transactions (Note 4) (21 ) —
Impairment of intangible assets —
14
Restructuring and other charges (Note 19) 30
1
Provision for doubtful accounts 1
—
Pensions and other postretirement benefits 42
(38 )
Deferred income taxes 7
9
Net (gain) loss on disposal of assets (2 ) 6
Distributions received, net of equity investees earnings (18 ) (86 )
Changes in:
Current receivables (214 ) (127 )
Inventories (123 ) 339
Current accounts payable and accrued expenses 121
279
Income taxes receivable/payable 15
14
Bank checks outstanding 12
15
All other, net 159
105
Net cash provided by operating activities 541
580
Investing activities:
Capital expenditures (291 ) (268 )
Disposal of assets —
6
Change in restricted cash, net (1 ) (3 )
Proceeds from sale of ownership interest in equity investee (Note 22) 105
—
Investments, net
(3 ) (17 )
Net cash used in investing activities (190 ) (282 )
Financing activities:
Issuance of long-term debt, net of financing costs 737
958
Repayment of long-term debt (902 ) (1,019 )
Settlement of contingent consideration —
(15 )
Net proceeds from public offering of common stock —
482
Dividends paid (26 ) (22 )
Taxes paid for equity compensation plans (Note 3) (10 ) (3 )
Receipts from exercise of stock options 14
4
Net cash (used in) provided by financing activities (187 ) 385
Effect of exchange rate changes on cash 15
7
Net increase in cash and cash equivalents 179
690
Cash and cash equivalents at beginning of year 1,515
755
Cash and cash equivalents at end of period $ 1,694
$ 1,445


Non-cash investing and financing activities:
Change in accrued capital expenditures	$	(226)	$	22
U. S. Steel common stock issued for employee/non-employee director stock plans	28		45
Capital expenditures funded by finance lease borrowings	24		7
Export Credit Agreement (ECA) financing	1		—

The accompanying notes are an integral part of these condensed consolidated financial statements.

-4-

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. Basis of Presentation and Significant Accounting Policies

United States Steel Corporation (U. S. Steel, or the Company), produces and sells steel products, including flat-rolled and tubular products, in North America and Central Europe. Operations in North America also include iron ore and coke production facilities, railroad services and real estate operations. Operations in Europe also include coke production facilities.

The year-end Consolidated Balance Sheet data was derived from audited statements but does not include all disclosures required for complete financial statements by accounting principles generally accepted in the United States of America (U.S. GAAP). The other information in these condensed financial statements is unaudited but, in the opinion of management, reflects all adjustments necessary for a fair statement of the results for the periods ~~covered.~~covered, including assessment of certain accounting matters using all available information such as consideration of forecasted financial information in context with other information reasonably available to us. However, our future assessment of our current expectations could result in material impacts to our consolidated financial statements in future reporting periods. All such adjustments are of a normal recurring nature unless disclosed otherwise. These condensed financial statements, including notes, have been prepared in accordance with the applicable rules of the Securities and Exchange Commission and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. Additional information is contained in the United States Steel Corporation Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016~~,2022, which should be read in conjunction with these condensed financial statements.

~~Change in~~

2. New Accounting ~~Estimate - Capitalization and Depreciation Method~~Standards

During 2017, U. S. Steel completed a review of its accounting policy for property, plant and equipment depreciated on a group basis. As a result of this review, U. S. Steel changed its accounting method for property, plant and equipment from the group method of depreciation to the unitary method of depreciation, effective as of January 1, 2017. The Company believes the change from the group method to the unitary method of depreciation is preferable under U.S. GAAP as it will result in a more precise estimate of depreciation expense. Additionally, the change to the unitary method of depreciation is consistent with the depreciation method applied by our competitors, and improves the comparability of our results to the results of our competitors. Our change in the method of depreciation is considered a change in accounting estimate effected by a change in accounting principle and has been applied prospectively. Due to the application of the unitary method of depreciation and resultant change in our capitalization policy, maintenance and outage spending that had previously been expensed as well as capital investments associated with our asset revitalization program will now be capitalized if it extends the useful life of the related asset.

When property, plant, and equipment are disposed of by sale, retirement, or abandonment, the gross value of the property, plant and equipment and corresponding accumulated depreciation are removed from the Company’s financial accounting records. Due to the application of the unitary method of depreciation, any gain or loss resulting from an asset disposal by sale will now be immediately recognized as a gain or loss on the disposal of assets line in our consolidated statement of operations. Assets that are retired or abandoned will be reflected as an immediate charge to depreciation expense for any remaining book value in our consolidated statement of operations. Gains (losses) on disposals of assets for the three and nine months ended September 30, 2017 were immaterial.

~~For~~ the three months ended ~~September 30, 2017, the effect of the change was an increase in both income from continuing operations~~March 31, 2023, there were no accounting standards and ~~net earnings of $95 million (which consists of~~interpretations issued which are expected to have a $97 million decrease in cost of sales due to the capitalization of maintenance and outage spending that would have been previously expensed, partially offset by increased depreciation expense of $2 million, as a result of thematerial impact ~~of unitary depreciation~~ on the ~~existing net book value of fixed assets, as noted below, and the capitalization of maintenance and outage spending) and an increase in diluted earnings per share of $0.54. For the nine months ended~~Company's financial position, operations or cash flows.

3. Recently Adopted Accounting Standards

In September 30, 2017, the effect of the change was an increase in both income from continuing operations and net earnings of $205 million (which consists of a $233 million decrease in cost of sales due to the capitalization of maintenance and outage spending that would have been previously expensed, partially offset by increased depreciation expense of $28 million, as a result of the impact of unitary depreciation on the existing net book value of fixed assets, as noted below, and the capitalization of maintenance and outage spending) and an increase in diluted earnings per share of $1.16. The tax effect of this change was immaterial to the consolidated financial statements.

U. S. Steel's property, plant and equipment totaled $3,979 million at December 31, 2016. U. S. Steel allocated the existing net book value of group assets at the transition date to approximate a unitary depreciation methodology, and the fixed assets are being depreciated over their estimated remaining useful lives as follows:

(In millions)
Remaining Useful Life of Assets
Net Book Value at December 31, 2016
Under 5 years $ 597
6-10 years 629
11-15 years 765
16-20 years 654
21-25 years 363
Over 25 years 479
Assets not subject to depreciation 492
Total $ 3,979

2. ~~New Accounting Standards~~

~~In August 2017,~~2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ~~(ASU)~~2022-04, Disclosure of Supplier Finance Program Obligations (ASU 2022-04). ASU ~~2017-12,~~ ~~Derivatives~~2022-04 requires that an entity disclose certain information about supplier finance programs used in connection with the purchase of goods and ~~Hedging (Topic 815): Targeted Improvements to Accounting~~services. ASU 2022-04 is effective for ~~Hedging Activities~~ ~~(ASU 2017-12),~~all entities with fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, except for the amendment on roll-forward information, which ~~amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. ASU 2017-12~~ is effective for fiscal years beginning after December 15, ~~2018~~2023. U. S. Steel adopted this guidance effective January 1, 2023, with the exception of the amendment on roll-forward information, which will be adopted in our fiscal year beginning on January 1, 2024.

The Company has a supply chain finance (SCF) arrangement with a third-party administrator which allows participating suppliers, at their sole discretion, to make offers to sell payment obligations of the Company prior to their scheduled due dates at a discounted price to a participating financial institution. The third-party administrator entered into a separate agreement with the Export Import Bank of the United States to guarantee 90 percent of supplier obligations sold for up to $200 million. No guarantees or collateral are provided by the Company or any of its subsidiaries under the SCF program.

The Company’s goal is to capture overall supplier savings and improve working capital efficiency. The agreements facilitate the suppliers’ ability to sell payment obligations, while providing them with greater working capital flexibility. The Company has no economic interest in the sale of the suppliers’ receivables and no direct financial relationship with the financial institution concerning these services. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to sell amounts under the arrangements. The SCF program requires the Company to pay the third-party administrator the stated amount of the confirmed participating supplier invoices. The payment terms for confirmed invoices range from 75 to 90 days after the end of the month in which the invoice was issued.

The underlying costs from suppliers that elected to participate in the SCF program are generally recorded in cost of sales in the Company’s Condensed Consolidated Statement of Operations. Amounts due to suppliers who participate in the SCF program are reflected in accounts payable and accrued expenses on the Company’s Condensed Consolidated Balance Sheet and payments on the obligations by our suppliers are included in cash used in operating activities in the Condensed Consolidated Statement of Cash Flows. As of March 31, 2023, accounts payable and accrued expenses included $107 million of outstanding payment obligations which suppliers elected to sell to participating financial institutions.

In October 2021, the FASB issued Accounting Standards Update 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08). ASU 2021-08 requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. ASU 2021-08 is effective for public companies with fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption of all amendments in the same period permitted. U. S. Steel ~~is currently evaluating the impact the adoption of ASU 2017-12 will have on its Consolidated Financial Statements, but does not expect there to be a material impact.~~

~~On May 10, 2017, the FASB issued ASU 2017-09,~~ ~~Compensation – Stock Compensation: Scope of Modification Accounting~~ ~~(ASU 2017-09). The amendments included in ASU 2017-09 provide~~adopted this guidance about which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting. The amendments in this update will be applied prospectively to an award modified on or after the adoption date. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, with early adoption permitted. U. S. Steel is currently evaluating the impact the adoption of ASU 2017-09 will have on its Consolidated Financial Statements, but does not expect there to be a material impact.

~~On March 10, 2017, the FASB issued ASU 2017-07,~~ ~~Compensation - Retirement Benefits~~ (ASU 2017-07). ASU 2017-07 requires an employer who offers defined benefit and post retirement benefit plans to report the service cost component of the net periodic benefit cost in the same line item or items as other compensation cost arising from services rendered by employees during the period. The other components of net periodic benefit costs are required to be presented on a retrospective basis in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net periodic benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net periodic benefit cost must be disclosed. The ASU also allows for the service cost component of net periodic benefit cost to be eligible for capitalization into inventory when applicable. ASU 2017-07 is effective for periods beginning after December 15, 2017, including interim periods within those annual periods; early adoption is permitted. The adoption of this ASU will not have an impact on U. S. Steel's net earnings (loss) but will be a reclassification from a line on the income statement within earnings (loss) before interest and income taxes to a line on the income statement below earnings (loss) before interest and income taxes.

~~On August 26, 2016, the FASB issued ASU 2016-15,~~ ~~Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments~~ (ASU 2016-15). ASU 2016-15 reduces diversity in practice in how certain transactions are classified in the statement of cash flows by addressing eight specific cash receipt and cash payment issues. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. U. S. Steel is evaluating the financial statement implications of adopting ASU 2016-15, but anticipates it will not have an overall impact to the Company's consolidated statement of cash flows, but may result in a reclassification between cash flow line items.

~~On February 25, 2016, the FASB issued ASU 2016-02,~~ ~~Leases~~ (ASU 2016-02). ASU 2016-02 supersedes prior lease accounting guidance. Under ASU 2016-02, for operating leases, a lessee should recognize in its statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term; recognize a single lease cost, which is allocated over the lease term, generally on a straight line basis, and classify all cash payments within the operating activities in the statement of cash flows. For financing leases, a lessee is required to recognize a right-of-use asset and a lease liability; recognize interest on the lease liability separately from amortization of the right-of-use asset, and classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability within the operating activities in the statement of cash flows. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. In addition, at the inception of a contract, an entity should determine whether the contract is, or contains a lease. ASU 2016-02 is effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, using a modified retrospective approach. U. S. Steel is currently evaluating the financial statement implications of adopting ASU 2016-02, and has begun an inventory of its global leasing arrangements. U. S. Steel has also begun to review its information technology systems, internal controls, and accounting policies in relation to the ASU’s accounting and reporting requirements to recognize the respective right-of-use assets and the related lease liabilities.

~~On May 28, 2014, the FASB and the International Accounting Standards Board issued ASU No. 2014-09,~~ ~~Revenue from Contracts with Customers~~ (ASU 2014-09). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016; early application is not permitted. On August 12, 2015, the FASB issued ASU 2015-14, ~~Revenue from Contracts with Customers - Deferral of the Effective Date~~ (ASU 2015-14). ASU 2015-14 defers the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period, and only permits entities to adopt the standard one year earlier as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. U. S. Steel has completed a review of its significant customer contracts and is finalizing its evaluation of those contracts in relation to the recognition of revenue under the new standard. U. S. Steel is currently developing disclosures, finalizing its review of information technology systems, and key internal controls related to our ability to process, record and account for revenue under the new standard. U. S. Steel does not expect a material financial statement impact related to the full retrospective adoption of this ASU on January 1, ~~2018.~~2023 and will apply it to any future business combinations.

3. ~~Recently Adopted Accounting Standards~~

~~On March 30, 2016, the FASB issued ASU 2016-09,~~ ~~Compensation - Stock Compensation~~ (ASU 2016-09). ASU 2016-09 simplifies the accounting and reporting of certain aspects of share-based payment transactions, including income tax treatment of excess tax benefits, forfeitures, classification of share-based awards as either equity or liabilities, and classification in the statement of cash flows for certain share-based transactions related to tax benefits and tax payments. ASU 2016-09 was effective for public business entities for annual periods beginning after December 15, 2016.

On January 1, 2017, the Company adopted the provisions of ASU 2016-09. The adoption of ASU 2016-09 did not have a significant impact on the Company’s Consolidated Financial Statements and included the following items: (1) adoption on a prospective basis of the recognition of excess tax benefits and tax deficiencies in the Company’s income tax expense line in the Consolidated Statement of Operations for vested and exercised equity awards as discrete items in the period in which they occur; (2) adoption on a prospective basis of the classification of excess tax benefits in cash flows from operations in the Company’s Consolidated Statement of Cash Flows; (3) adoption on a retrospective basis of the classification of cash paid by the Company for directly withholding shares for tax withholding purposes in cash flows from financing activities, and (4) adoption on a prospective basis for the exclusion of the amount of excess tax benefits when applying the treasury stock method for the Company’s diluted earnings per share calculation.

Additionally, the Company continues to withhold the statutory minimum taxes for participants in the Company’s stock-based compensation plans and estimates forfeiture rates at the grant date and the expected term of its equity awards based on historical results.

~~On July 22, 2015, the FASB issued ASU No. 2015-11,~~ ~~Simplifying the Measurement of Inventory(ASU 2015-11). ASU 2015-11 requires an entity to measure most inventory at the lower of cost and net realizable value, thereby~~

simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. ASU 2015-11 does not apply to inventories that are measured using either the last-in, first-out (LIFO) method or the retail inventory method. ASU 2015-11 was effective for public entities for financial statements issued for fiscal years beginning after December 15, 2016. U. S. Steel adopted ASU 2015-11 on January 1, 2017. The adoption did not have a significant financial statement impact to U. S. Steel.

4. Segment Information

U. S. Steel has ~~three~~four reportable segments: North American Flat-Rolled ~~Products~~ (Flat-Rolled), which consists of the following three commercial entities that directly interact with our customers and service their needs: (1) automotive solutions, (2) consumer solutions, and (3) industrial, service center and mining solutions;Mini Mill, U. S. Steel Europe (USSE); and Tubular Products (Tubular). The results of our ~~railroad and~~ real estate businesses ~~that do not constitute reportable segments~~ are ~~combined and~~ disclosed in the Other ~~Businesses~~ category.

-5-

The chief operating decision maker evaluates performance and determines resource allocations based on a number of factors, the primary measure being earnings (loss) before interest and income taxes. Earnings (loss) before interest and income taxes for reportable segments and the Other ~~Businesses~~category does not include net interest and other financial costs (income), income taxes, ~~postretirement benefit expenses (other than service cost and amortization of prior service cost for active employees)~~stock-based compensation expense, and certain other items that management believes are not indicative of future results. Information on segment assets is not disclosed, as it is not reviewed by the chief operating decision maker. The chief operating decision maker assesses the Company's assets on an enterprise wide level, based upon the projects that yield the greatest return to the Company as a whole, and not on an individual segment level.

The accounting principles applied at the operating segment level in determining earnings (loss) before interest and income taxes are generally the same as those applied at the consolidated financial statement level. Intersegment sales and transfers are accounted for at market-based prices and are eliminated at the corporate consolidation level. Corporate-level selling, general and administrative expenses and costs related to certain former businesses are allocated to the reportable segments and Other ~~Businesses~~ based on measures of activity that management believes are reasonable.

~~The results of segment operations for three months ended September 30, 2017 and 2016 are:~~

(In millions) Three Months Ended September 30, 2017
Customer
Sales Intersegment
Sales Net
Sales Earnings
(Loss)
from
Investees Earnings (Loss) Before Interest and Income Taxes
Flat-Rolled $ 2,249
$ 42
$ 2,291
$ 7
$ 160
USSE 710
1
711
—
73
Tubular 276
—
276
2
(7 )
Total reportable segments 3,235
43
3,278
9
226
Other Businesses 13
29
42
—
12
Reconciling Items and Eliminations —
(72 ) (72 ) —
7
Total $ 3,248
$ —
$ 3,248
$ 9
$ 245

Three Months Ended September 30, 2016
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

The results of segment operations for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2023 and ~~2016~~2022 are:


(In millions) Three Months Ended March 31, 2023	Customer Sales		Intersegment Sales		Net Sales		(Loss) earnings from investees		(Loss) earnings before interest and income taxes(a)
Flat-Rolled	$	2,570	$	90	$	2,660	$	(16)	$	(7)
Mini Mill	553		70		623		—		12
USSE	838		6		844		—		(34)
Tubular	505		1		506		3		232
Total reportable segments	4,466		167		4,633		(13)		203
Other	4		—		4		—		3
Reconciling Items and Eliminations	—		(167)		(167)		—		(17)
Total	$	4,470	$	—	$	4,470	$	(13)	$	189

Three Months Ended March 31, 2022
Flat-Rolled	$	2,954	$	52	$	3,006	$	30	$	529
Mini Mill	718		130		848		—		278
USSE	1,251		4		1,255		—		264
Tubular	309		3		312		6		77
Total reportable segments	5,232		189		5,421		36		1,148
Other	2		—		2		—		7
Reconciling Items and Eliminations	—		(189)		(189)		—		(37)
Total	$	5,234	$	—	$	5,234	$	36	$	1,118
(a) (Loss) earnings before interest and income taxes has been updated for three months ended March 31, 2022 for Flat-Rolled and Reconciling Items and Eliminations. This is the result of a retroactive adjustment for the reclassification of stock-based compensation expense as an item not allocated to segment results. See the schedule of reconciling items to consolidated earnings before interest and income taxes below for further details.

A summary of total assets by segment is as follows:


(In millions)	March 31, 2023		December 31, 2022
Flat-Rolled	$	8,109	$	7,936
Mini Mill(a)	6,176		5,787
USSE	6,199		5,823
Tubular	1,163		1,140
Total reportable segments	$	21,647	$	20,686
Other	$	142	$	141
Corporate, reconciling items, and eliminations(b)	(2,249)		(1,369)
Total assets	$	19,540	$	19,458

(a)Includes assets of $1.7 billion and $1.4 billion at March 31, 2023 and December 31, 2022, respectively, related to Big River 2 (BR2) under construction in Osceola, Arkansas.

-6-

(In millions) Nine Months Ended September 30, 2017
Customer
Sales Intersegment
Sales Net
Sales Earnings
(Loss)
from
Investees Earnings (Loss) Before Interest and Income Taxes
Flat-Rolled $ 6,265
$ 154
$ 6,419
$ 24
$ 288
USSE 2,123
25
2,148
—
215
Tubular 682
—
682
6
(93 )
Total reportable segments 9,070
179
9,249
30
410
Other Businesses 47
89
136
(1 ) 34
Reconciling Items and Eliminations —
(268 ) (268 ) —
16
Total $ 9,117
$ —
$ 9,117
$ 29
$ 460

Nine Months Ended September 30, 2016
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 )
(b)The majority of corporate, reconciling items, and eliminations is comprised of cash and the elimination of intersegment amounts.

The following is a schedule of reconciling items to ~~Earnings (Loss) Before Interest~~consolidated earnings before interest and ~~Income Taxes:~~income taxes:


	Three Months Ended March 31,
(In millions)	2023		2022
Items not allocated to segments:
Restructuring and other charges (Note 20)	$	(1)	$	(17)
Stock-based compensation expense (Note 11)	(11)		(16)

Other charges, net	(5)		(4)
Total reconciling items	$	(17)	$	(37)

5. Disposition

Three Months Ended September 30, Nine Months Ended September 30,
(In millions) 2017 2016 2017 2016
Items not allocated to segments:
Postretirement benefit (expense) income^(a)
$ (14 ) $ 8
$ (42 ) $ 36
Other items not allocated to segments:
Loss on shutdown of certain tubular assets^(b)
—
—
(35 ) —
Gain on equity investee transactions^(c)
21
—
21
—
Gain associated with retained interest in U. S. Steel Canada Inc. (Note 21)
—
—
72
—
Impairment of intangible assets (Note 5) —
(14 ) —
(14 )
Restructuring and other charges and adjustments^(d)
—
—
—
(2 )
Total other items not allocated to segments 21
(14 ) 58
(16 )
Total reconciling items $ 7
$ (6 ) $ 16
$ 20

^(a) ~~Consists~~The Company has previously committed to, and continues to intend to, pursue the disposition of certain assets related to a component of its flat-rolled business. As of March 31, 2023, the Company accrued a total of $120 million for severance and exit costs, of which $102 million and $18 million is recorded in accounts payable and accrued expenses and payroll and benefits payable, respectively, on the Condensed Consolidated Balance Sheet. $1 million of these charges were incurred during the first quarter 2023. No payments for these charges have been made as of March 31, 2023.

6. Revenue

Revenue is generated primarily from contracts to produce, ship and deliver steel products, and to a lesser extent, raw materials sales such as iron ore pellets and coke by-products and real estate sales. Generally, U. S. Steel’s performance obligations are satisfied and revenue is recognized when title transfers to our customer for product shipped or services are provided. Revenues are recorded net of any sales incentives. Shipping and other transportation costs charged to customers are treated as fulfillment activities and are recorded in both revenue and cost of sales at the time control is transferred to the customer. Costs related to obtaining sales contracts are incidental and are expensed when incurred. Because customers are invoiced at the time title transfers and U. S. Steel’s right to consideration is unconditional at that time, U. S. Steel does not maintain contract asset balances. Additionally, U. S. Steel does not maintain contract liability balances, as performance obligations are satisfied prior to customer payment for product. U. S. Steel offers industry standard payment terms.

The following tables disaggregate our revenue by product for each of the ~~net periodic benefit cost elements, other than service cost~~reportable business segments for the three months ended March 31, 2023 and ~~amortization~~2022, respectively:

Net Sales by Product (In millions):


Three Months Ended March 31, 2023	Flat-Rolled		Mini Mill		USSE		Tubular		Other		Total
Semi-finished	$	59	$	—	$	32	$	—	$	—	$	91
Hot-rolled sheets	554		332		348		—		—		1,234
Cold-rolled sheets	901		72		71		—		—		1,044
Coated sheets	853		148		340		—		—		1,341
Tubular products	—		—		12		500		—		512
All Other (a)	203		1		35		5		4		248
Total	$	2,570	$	553	$	838	$	505	$	4	$	4,470
(a) Consists primarily of sales of raw materials and coke making by-products.

-7-


Three Months Ended March 31, 2022	Flat-Rolled		Mini Mill		USSE		Tubular		Other		Total
Semi-finished	$	49	$	—	$	1	$	—	$	—	$	50
Hot-rolled sheets	514		399		593		—		—		1,506
Cold-rolled sheets	971		92		139		—		—		1,202
Coated sheets	1,196		224		483		—		—		1,903
Tubular products	—		—		15		306		—		321
All Other (a)	224		3		20		3		2		252
Total	$	2,954	$	718	$	1,251	$	309	$	2	$	5,234
(a) Consists primarily of sales of raw materials and coke making by-products.

7. Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of ~~prior service cost for active employees, associated with our defined pension, retiree health care~~cash, cash equivalents and ~~life insurance benefit plans.~~

^(b) ~~Included~~restricted cash reported within U. S. Steel's Condensed Consolidated Balance Sheets that sum to the total of the same amounts shown in ~~Restructuring and other charges on~~ the Condensed Consolidated Statement of ~~Operations. See Note 19~~Cash Flows:


(In millions)	March 31, 2023		December 31, 2022		March 31, 2022
Cash and cash equivalents	$	2,837	$	3,504	$	2,866
Restricted cash in other current assets	4		4		17
Restricted cash in other noncurrent assets	32		31		58

Total cash, cash equivalents and restricted cash	$	2,873	$	3,539	$	2,941

Amounts included in restricted cash represent cash balances which are legally or contractually restricted, primarily for electric arc furnace construction, environmental liabilities and other capital projects and insurance purposes.

8. Inventories

The last-in, first-out (LIFO) method is the predominant method of inventory costing for our Flat-Rolled and Tubular segments. The first-in, first-out (FIFO) and moving average methods are the predominant inventory costing methods for our Mini Mill segment and the FIFO method is the predominant inventory costing method for our USSE segment. At March 31, 2023 and December 31, 2022, the LIFO method accounted for 41 percent and 43 percent of total inventory values, respectively.


(In millions)	March 31, 2023		December 31, 2022
Raw materials	$	1,213	$	1,098
Semi-finished products	900		811
Finished products	386		398
Supplies and sundry items	42		52
Total	$	2,541	$	2,359

Current acquisition costs were estimated to exceed the ~~Consolidated Financial Statements.~~

^(c) ~~The gain in~~above inventory values by $1.6 billion and $1.2 billion at March 31, 2023 and December 31, 2022, respectively. As a result of the liquidation of LIFO inventories, cost of sales decreased and earnings before interest and income taxes increased by $9 million and $8 million for the three ~~and nine month periods ended September 30, 2017 primarily relates to the sale of the Company's ownership interest in Tilden Mining Company L.C. See Note 22 to the Consolidated Financial Statements.~~

^(d) ~~For the nine~~ months ended ~~September 30, 2016, approximately $(2) million is included in Cost of sales~~March 31, 2023 and ~~approximately $4 million is included in the Restructuring~~2022, respectively.

-8-

9. Intangible Assets and ~~other charges in the Consolidated Statement of Operations. See Note 19 to the Consolidated Financial Statements.~~

5. ~~Intangible Assets~~Goodwill

Intangible assets that are being amortized on a straight-line basis over their estimated useful lives ~~and~~ are detailed below:


		As of March 31, 2023						As of December 31, 2022
(In millions)	Useful Lives	Gross Carrying Amount		Accumulated Amortization		Net Amount		Gross Carrying Amount		Accumulated Amortization		Net Amount
Customer relationships	22 Years	$	413	$	42	$	371	$	413	$	37	$	376
Patents	5-15 Years	17		12		5		17		12		5
Energy Contract	2 Years	54		38		16		54		32		22
Total amortizable intangible assets		$	484	$	92	$	392	$	484	$	81	$	403

As of September 30, 2017 As of December 31, 2016
(In millions) Useful
Lives Gross
Carrying
Amount Accumulated
Amortization Net
Amount Gross
Carrying
Amount Accumulated
Amortization Net
Amount
Customer relationships 12 Years $ 132
$ 63
$ 69
$ 132
$ 59
$ 73
Patents 5-12 Years 22
4
18
22
2
20
Other 4-10 Years 14
7
7
14
7
7
Total amortizable intangible assets
$ 168
$ 74
$ 94
$ 168
$ 68
$ 100
Amortization expense was $11 million and $10 million for the three months ended March 31, 2023 and 2022, respectively.

Total estimated amortization expense for the remainder of 2023 is $31 million. We expect approximately $98 million in total amortization expense from 2024 through 2028 and approximately $263 million in remaining amortization expense thereafter.

The carrying amount of acquired water rights with indefinite lives as of ~~September 30, 2017~~March 31, 2023 and December 31, ~~2016~~2022 totaled $75 million. ~~The acquired water rights are tested for impairment annually in the third quarter, or whenever events or circumstances indicate the carrying value may not be recoverable. U. S. Steel performed~~

Below is a ~~quantitative impairment evaluation~~summary of ~~its acquired water rights during the third quarter of 2017. Based on the results of the evaluation, the water rights were not impaired.~~

The research and development activities of the Company's acquired indefinite lived in-process research and development patents was completed during the fourth quarter of 2016 and the carrying amount of the patents is being amortized over the useful lives of the patents (approximately 10 years). As a result of the quantitative impairment evaluation of its in-process research and development patents during the third quarter of 2016, an impairment charge of approximately $14 million was recorded during three months ended September 30, 2016.

~~Identifiable intangible assets with finite lives are reviewed for impairment whenever events or circumstances indicate the carrying values may not be recoverable.~~

~~Amortization expense was $2 million for both of the three month periods ended September 30, 2017 and 2016, respectively, and $6 million for both of the nine month periods endedSeptember 30, 2017 and 2016~~, ~~respectively. The estimated future amortization expense of identifiable intangible assets during the next five years is~~ ~~$2 million~~ ~~for the remaining portion of~~ ~~2017~~ ~~and~~ ~~$9 million~~ ~~each year from~~ ~~2018~~ ~~to 2021.~~

6. ~~Pensions and Other Benefits~~

~~The following table reflects the components of net periodic benefit cost (income)~~goodwill by segment for the three months ended ~~September 30, 2017~~March 31, 2023:


	Flat-Rolled		Mini Mill		USSE		Tubular		Total
Balance at December 31, 2022	$	—	$	916	$	4	$	—	$	920
Additions	—		—		—		—		—
Balance at March 31, 2023	$	—	$	916	$	4	$	—	$	920

10. Pensions and ~~2016~~:

Pension
Benefits Other
Benefits
(In millions) 2017 2016 2017 2016
Service cost $ 13
$ 14
$ 4
$ 5

Interest cost 59
64
23
25

Expected return on plan assets (98 ) (106 ) (16 ) (38 )
Amortization of prior service cost —
2
8
6

Amortization of actuarial net loss 37
33
1
1

Net periodic benefit cost (income), excluding below 11
7
20
(1 )
Multiemployer plans 15
16
—
—

Settlement, termination and curtailment losses 1
10
—
—

Net periodic benefit cost (income) $ 27
$ 33
$ 20
$ (1 )
Other Benefits

The following table reflects the components of net periodic benefit (income) cost ~~(income)~~ for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2023 and ~~2016:~~2022:


	Pension Benefits				Other Benefits
(In millions)	2023		2022		2023		2022
Service cost	$	8	$	11	$	1	$	2
Interest cost	55		39		17		12
Expected return on plan assets	(82)		(89)		(15)		(22)
Amortization of prior service cost (credit)	5		—		(6)		(7)
Amortization of actuarial net loss (gain)	3		18		(18)		(13)
Net periodic benefit income, excluding below	(11)		(21)		(21)		(28)
Multiemployer plans	21		19		—		—
Settlement, termination and curtailment losses (a)	—		1		—		—
Net periodic benefit cost (income)	$	10	$	(1)	$	(21)	$	(28)
(a) During the three months ended March 31, 2022, pension benefits incurred special termination charges of approximately $1 million due to workforce restructuring.

Pension
Benefits Other
Benefits
(In millions) 2017 2016 2017 2016
Service cost $ 37
$ 40
$ 13
$ 15

Interest cost 177
194
70
74

Expected return on plan assets (292 ) (316 ) (49 ) (113 )
Amortization of prior service cost —
8
22
19

Amortization of actuarial net loss 111
97
3
2

Net periodic benefit cost (income), excluding below 33
23
59
(3 )
Multiemployer plans 44
48
—
—

Settlement, termination and curtailment losses 5
13
—
—

Net periodic benefit cost (income) $ 82
$ 84
$ 59
$ (3 )

~~Settlements~~Employer Contributions

During the first ~~nine~~three months of ~~2017 and 2016, the non-qualified pension plan incurred settlement charges of approximately $5 million and $13 million, respectively, due to lump sum payments for certain individuals.~~

~~Employer Contributions~~

~~During the first~~ ~~nine~~ ~~months of~~ ~~2017~~,2023, U. S. Steel made cash payments of ~~$44~~$20 million to the ~~Steelworkers’~~Steelworkers Pension Trust and ~~$11~~$2 million of pension payments not funded by trusts.

During the first ~~nine~~three months of ~~2017~~,2023, cash payments of ~~$44~~$9 million were made for other postretirement benefit payments not funded by trusts.

Company contributions to defined contribution plans totaled $12 million and $11 million ~~and $10 million in~~for the three months ended ~~September 30, 2017~~March 31, 2023 and ~~2016, respectively. Company contributions to defined contribution plans totaled $30 million and $32 million for the~~ ~~nine months ended September 30, 2017~~ ~~and~~ ~~2016, respectively.~~

~~Pension Funding~~

~~In October 2017, U. S. Steel's Board of Directors authorized voluntary contributions to U. S. Steel's trust for its defined benefit pension of up to $200 million through the end of 2018.~~

~~Non-retirement postemployment benefits~~

U. S. Steel recorded a favorable adjustment associated with a change in estimate that resulted in a benefit of approximately $2 million and $3 million for the three and nine months ended September 30, 2017, respectively, compared to costs of $9 million and $7 million for the three and nine months ended September 30, 2016, respectively, related to employee costs for supplemental unemployment benefits and the continuation of health care benefits and life insurance coverage for employees associated with the temporary idling of certain facilities and reduced production at others. Payments for these benefits during the three and nine months ended September 30, 2017 were $3 million and $16 million, respectively. Payments for these benefits during the three and nine months ended September 30, 2016 were $19 million and $58 million,2022, respectively.

-9-

7. ~~Net Interest and Other Financial Costs~~

Net interest and other financial costs includes interest expense (net of capitalized interest), interest income, financing costs, derivatives gains and losses and foreign currency remeasurement gains and losses. Foreign currency gains and losses are primarily a result of foreign currency denominated assets and liabilities that require remeasurement and the impacts of euro-U.S. dollar derivatives activity. During the three months ended September 30, 2017 and 2016, net foreign currency losses of $6 million and $1 million respectively, were recorded in other financial costs. During the nine months ended September 30, 2017 and 2016, net foreign currency losses of $21 million and $2 million respectively, were recorded in other financial costs. Additionally, during the nine months ended September 30, 2017 and 2016, there were losses on debt extinguishments recognized of $32 million and $22 million, respectively.

See Note 12 for additional information on U. S. Steel’s use of derivatives to mitigate its foreign currency exchange rate exposure. See Note 13 for further details on U. S. Steel's redemption of its senior debt.

8. 11. Stock-Based Compensation Plans

U. S. Steel has outstanding stock-based compensation awards that were granted by the Compensation & Organization Committee (the Committee) of the Board of Directors, ~~(the Committee)~~or its designee, under the 2005 Stock Incentive Plan (the 2005 Plan) and the 2016 Omnibus Incentive Compensation Plan, as amended and restated (the Omnibus Plan)~~, which are more fully described in Note 14 of the United States Steel Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and the 2017 Proxy Statement.~~. On April 26, 2016, the Company's stockholders approved the Omnibus Plan and, between 2016 and the present, authorized the Company to issue up to ~~7,200,000~~32,700,000 shares in the aggregate of U. S. Steel common stock under the Omnibus Plan. ~~The Company's stockholders authorized the issuance of an additional 6,300,000 shares under the Omnibus Plan on April 25, 2017.~~ While the awards that were previously granted under the 2005 Plan remain outstanding, all future awards will be granted under the Omnibus Plan. As of ~~September 30, 2017,~~March 31, 2023, there were ~~12,350,805~~6,188,771 shares available for future grants under the Omnibus Plan.

Recent grants of stock-based compensation consist of ~~stock options,~~ restricted stock units, ~~and~~ total ~~shareholder~~stockholder return (TSR) performance awards and return on capital employed (ROCE) performance awards. ~~Stock options are generally issued at the market price~~Shares of ~~the underlying stock on the date of the grant. Upon exercise of stock options, shares of U. S. Steel~~ common stock under the Omnibus Plan are issued from ~~treasury~~authorized, but unissued stock. The following table is a ~~general~~ summary of the awards made under the ~~2005 Plan and the~~ Omnibus Plan during the first ~~nine~~three months of ~~2017~~2023 and ~~2016.~~2022.


	2023			2022
Grant Details	Shares(a)	Fair Value(b)		Shares(a)	Fair Value(b)

Restricted Stock Units	1,274,520	$	29.90	1,169,470	$	24.27
Performance Awards (c)
TSR	185,120	$	37.41	225,030	$	28.53
ROCE (d)	357,020	$	29.35	396,280	$	23.60

2017 2016
Grant Details
Shares^(a)
Fair Value^(b)

Shares^(a)
Fair Value^(b)
Stock Options 647,780
$ 17.28
1,333,210
$ 6.24
Restricted Stock Units 344,500
$ 36.27
1,117,495
$ 14.27
TSR Performance Awards ^(c)
169,850
$ 40.72
308,130
$ 10.02

^(a) The share amounts shown in this table do not reflect an adjustment for estimated forfeitures.

^(b) Represents the per share ~~weighted-average~~weighted average for all grants during the period.

^(c) The number of performance awards shown represents the target ~~value~~share grant of the award.

(d) A portion of ROCE awards granted in 2023 and 2022are not shown in the table because they were granted in cash.

U. S. Steel recognized pretax stock-based compensation expense in the amount of ~~$6 million~~ ~~and $5 million in the three month periods ended~~ ~~September 30, 2017~~ ~~and 2016, respectively, and $21~~$11 million and $16 million in the ~~first nine months of 2017~~three-month periods ended March 31, 2023 and ~~2016,~~2022, respectively.

As of ~~September 30, 2017~~,March 31, 2023, total future compensation expense related to nonvested stock-based compensation arrangements was ~~$24~~$79 million,, and the weighted average period over which this expense is expected to be recognized is approximately ~~1 year~~.26 months.

~~Compensation expense for~~Stock Options

There have been no stock options ~~is recorded over~~granted since 2017 other than the ~~vesting~~171,000 performance-based stock options granted in December 2021, which are further described below.

The 171,000 performance-based stock options granted in December 2021, which were valued using a lattice model, do not become vested and exercisable until the Company's 20-trading day average closing stock price meets or exceeds the following stock price hurdles during the seven-year period ~~based~~beginning on the ~~fair value on the~~grant date, ~~of grant,~~ as ~~calculated by U. S. Steel using the Black-Scholes model and the assumptions listed below.~~follows:


20-trading day Average Closing Stock Price Achievement During 7-Year Period Beginning on Grant Date(a)		Percentage of Performance-Based Stock Options Exercisable
$	35.00	33.33	%
$	45.00	33.33	%
$	55.00	33.34	%

(a) The ~~stock options vest ratably over a three-year service period and have a term of ten years.~~$35.00 tranche vested in April 2022.

Black-Scholes Assumptions^(a)
2017 Grants 2016 Grants
Grant date price per share of option award $ 36.94
$ 14.78
Exercise price per share of option award $ 36.94
$ 14.78
Expected annual dividends per share, at grant date $ 0.20
$ 0.20
Expected life in years 5.0
5.0
Expected volatility 57 % 53 %
Risk-free interest rate 1.97 % 1.46 %
Grant date fair value per share of unvested option awards as calculated from above $ 17.28
$ 6.24

~~(a) The assumptions represent a weighted average of all grants during the period.~~

The expected annual dividends per share are based on the latest annualized dividend rate at the date of grant; the expected life in years is determined primarily from historical stock option exercise data; the expected volatility is based on the historical volatility of U. S. Steel stock; and the risk-free interest rate is based on the U.S. Treasury strip rate for the expected life of the option.

Stock Awards

Restricted stock units awarded as part of annual grants generally vest ratably over three years. ~~The~~Their fair value is the average market price of the underlying common stock on the date of ~~the~~ grant. Restricted stock units granted in connection with new-hire or retention grants generally cliff vest three years from the date of the grant.

TSR performance awards may vest at varying levels at the end of a three-year performance period ~~as a function of~~if U. S. ~~Steel's~~Steel’s total shareholder return compared to the total shareholder return of a peer group of ~~peer~~ companies ~~over~~meets performance criteria during the ~~three-year~~three-year performance period. TSR is calculated as follows: 20 percent for each year in the three-year performance period and 40 percent for the full three-year period. TSR performance awards ~~can~~may vest and payout 50 percent at ~~between~~ ~~zero~~ ~~and~~ ~~200~~the threshold level, 100 percent of at the target ~~award.~~level and 200 percent at the maximum level for payouts. Payment for performance in between the threshold percentages will be interpolated. The fair value of the ~~TSR~~ performance awards is calculated using a Monte-Carlo simulation.

-10-

ROCE performance awards may vest at the end of a three-year performance period contingent upon meeting ROCE performance goals approved by the Committee. For the 2022 and 2023 ROCE performance awards, each year in the three-year performance period is weighted at 20 percent and the full three-year period is weighted at 40 percent of the total award. ROCE performance awards may vest and payout 50 percent at the threshold level, 100 percent at the target level and 200 percent at the maximum level for payouts. Payment for performance in between the threshold percentages will be interpolated. The fair value of the ROCE performance awards is the average market price of the underlying common stock on the date of grant.

In December 2021 and August 2022, special performance-based restricted stock unit awards (PSUs) were granted to members of the Company’s executive leadership team. Shares are earned based on the achievement of certain pre-set quantitative performance criteria during the four-year performance period, January 1, 2022 through December 31, 2025. Shares may vest following the expiration of the Performance Period if the Company satisfies the performance criteria.

The Chief Executive Officer was granted PSUs that vest with the following, equally weighted, performance metrics: (i) EBITDA margin expansion, (ii) greenhouse gas emissions intensity reduction, (iii) asset portfolio optimization, (iv) leverage metrics and (v) corporate relative valuation. Other members of the executive leadership team were granted PSUs that vest with performance criteria related to: (i) on time and on budget completion of BR2 (30% of the grant), (ii) EBITDA margin expansion (40% of the grant) and (iii) greenhouse gas emissions intensity reduction (30% of the grant).

For the PSU awards, a payout is achievable at threshold (50% of target), target (100% of target) or maximum (200% of target) performance achievement. Payout amounts will be interpolated between the threshold, target and maximum amounts.

12. Income Taxes

Tax provision

For the ~~nine~~three months ended~~September 30, 2017~~ March 31, 2023, and ~~2016, we~~2022, the Company recorded a tax provision of $3$51 million ~~on our pretax earnings of~~ ~~$231~~and $246 million, ~~and a tax provision of~~ ~~$26 million~~ ~~on our pretax loss of~~ ~~$309 million~~, respectively. Included in the tax provision in the first nine months of 2017 is a benefit of $13 million related to the carryback of specified liability losses to prior years, as well as a benefit of $25 million related to the Company’s intent to claim a refund of Alternative Minimum Tax credits pursuant to a provision in the Protecting Americans from Tax Hikes Act. As a result, the provision recorded in the third quarter of 2017 was immaterial. Due to the full valuation allowance on our domestic deferred tax assets in 2016 and 2017, the tax provision does not reflect any benefit for domestic pretax losses.

The tax ~~provision~~provisions for the first ~~nine~~three months of ~~2017 is~~2023 and 2022 were based on an estimated annual effective rate, which requires management to make its best estimate of annual pretax income or ~~loss.~~loss and discrete items recognized during the period, if applicable.

~~During~~

Throughout the year, management regularly updates forecasted annual pretax results for the various countries in which we operate based on changes in factors such as prices, shipments, product mix, plant operating performance and cost estimates. To the extent that actual ~~2017~~2023 pretax results for U.S. and foreign income or loss vary from estimates applied herein, the actual tax provision or benefit recognized in ~~2017~~2023 could be materially different from the forecasted amount used to estimate the tax provision for the ~~nine~~three months ended~~September~~ March 31, 2023.

In March 2022, the Company and the Arkansas Economic Development Commission entered into the Recycling Tax Credit Incentive Agreement, whereby the Company may earn state income tax credits in an amount equal to 30 ~~2017~~.

~~Deferred taxes~~

~~Each quarter U. S. Steel analyzes~~percent of the ~~likelihood that our deferred tax assets will~~cost of waste reduction, reuse, or recycling equipment, subject to meeting the requirements of the Arkansas Code Ann. Section 26-51-506, for BR2 which is under construction in Osceola, Arkansas. Documentation supporting the Company's investment in qualifying equipment must be ~~realized. A valuation allowance is recorded if, based on the weight~~submitted as part of ~~all available positive and negative evidence, it is more likely than not that some portion, or all, of a deferred tax asset may not be realized.~~

At September 30, 2017, U. S. Steel reviewed all available positive and negative evidence and determined that it is more likely than not that all of its net domestic deferred tax assets may not be realized.

~~U. S. Steel will continue to monitor the realizability of its deferred tax assets on a quarterly basis. In the future, if we determine that realization is more likely than not~~an application for ~~deferred tax assets with a valuation allowance, the related valuation allowance will be reduced, and we will record a non-cash benefit to earnings.~~

~~Unrecognized tax benefits~~

~~Unrecognized tax benefits are the differences between a tax position taken, or~~certification expected to be ~~taken,~~completed on or before 2025. In March 2022, the Company received a lump-sum payment of approximately $82 million as proceeds from the sale of a portion of expected future tax credits to be earned by the Company (see Note 21 for additional information). The Company estimates that it could earn tax credits in excess of $700 million, exclusive of the amount sold in March 2022, which the Company will recognize in the year the assets are placed into service and meet the requirements of Arkansas Code Ann. Section 26-51-506. Any unused tax credit that cannot be claimed in a tax ~~return~~year may be carried forward indefinitely by the Company and applied to its future state tax liability.

On August 16, 2022, H.R. 5376 (commonly called the ~~benefit recognized~~Inflation Reduction Act of 2022) was signed into law, which, among other things, implemented a corporate alternative minimum tax (CAMT) of 15 percent on net book income of certain large corporations adjusted for ~~accounting purposes pursuant~~certain items prescribed by the legislation. The tax provision for the three months ended March 31, 2023 reflects the impact of CAMT, which is not material to the ~~guidance in ASC Topic 740 on income taxes. As of September 30, 2017 and December 31, 2016~~, ~~the total amount of gross unrecognized tax benefits was$71 million~~ ~~and $72 million, respectively. The total amount of net unrecognized tax benefits that, if recognized, would affect the effective tax rate was~~ ~~$10 million~~ ~~as of~~ ~~September 30, 2017~~ ~~and $9 million as of~~ ~~December 31, 2016~~.Condensed Consolidated Financial Statements.

U. S. Steel records interest related to uncertain tax positions as a part of net interest and other financial costs in the Consolidated Statement of Operations. Any penalties are recognized as part of selling, general and administrative expenses. As of ~~September 30, 2017~~ ~~and~~ ~~December 31, 2016, U. S. Steel had accrued liabilities of~~ ~~$6 million~~ ~~and $4 million, respectively, for interest and penalties related to uncertain tax positions.~~

~~10.~~ 13. Earnings and Dividends Per Common Share

Earnings ~~(Loss)~~ Per Share Attributable to United States Steel Corporation Stockholders

~~Basic~~The effect of dilutive securities on weighted average common shares outstanding included in the calculation of diluted earnings ~~(loss)~~ per common share ~~is based on~~for the ~~weighted average number~~three months ended March 31, 2023 and March 31, 2022 were as follows.

-11-


	Three Months Ended March 31,
(Dollars in millions, except per share amounts)	2023		2022
Earnings attributable to United States Steel Corporation stockholders:
Basic	$	199	$	882
Interest expense on Senior Convertible Notes, net of tax	3		3
Diluted	$	202	$	885
Weighted-average shares outstanding (in thousands):
Basic	227,332		261,453
Effect of Senior Convertible Notes	26,194		26,194
Effect of stock options, restricted stock units and performance awards	3,921		5,620
Diluted	257,447		293,267
Earnings per share attributable to United States Steel Corporation stockholders:
Basic	$	0.87	$	3.37
Diluted	$	0.78	$	3.02

Excluded from the computation of ~~common shares outstanding during the period.~~

~~Diluted~~diluted earnings ~~(loss)~~ per common share ~~assumes~~due to their anti-dilutive effect were 0.9 million and 0.6 million outstanding securities granted under the ~~exercise of stock options,~~Omnibus Plan for the ~~vesting of restricted stock units~~three months ended March 31, 2023 and ~~performance awards, provided in each case the effect is dilutive.~~2022, respectively.

~~The computations for basic and diluted earnings (loss) per common share from continuing operations are as follows:~~

Three Months Ended September 30, Nine Months Ended September 30,
(Dollars in millions, except per share amounts) 2017 2016 2017 2016
Earnings (loss) attributable to United States Steel Corporation stockholders $ 147
$ 51
$ 228
$ (335 )
Weighted-average shares outstanding (in thousands):

Basic 175,003
160,513
174,684
151,199
Effect of stock options, restricted stock units and performance awards 1,481
1,187
1,652
—
Adjusted weighted-average shares outstanding, diluted 176,484
161,700
176,336
151,199
Basic earnings (loss) per common share $ 0.84
$ 0.32
$ 1.30
$ (2.22 )
Diluted earnings (loss) per common share $ 0.83
$ 0.32
$ 1.29
$ (2.22 )

~~The following table summarizes the securities that were antidilutive, and therefore, were not included in the computations of diluted earnings (loss) per common share:~~

Three Months Ended September 30, Nine Months Ended
September 30,
(In thousands) 2017 2016 2017 2016
Securities granted under the 2005 Stock Incentive Plan, as amended and the 2016 Omnibus Incentive Compensation Plan, as amended 2,679
4,613 1,677
9,568

~~Dividends Paid Per Share~~

The dividend for each of the first ~~three quarters~~quarter of ~~2017~~2023 and ~~2016~~2022 was five cents per common ~~share.~~share, respectively.

~~11.~~ ~~Inventories~~

Inventories are carried at the lower of cost or market for last-in, first-out (LIFO) inventories and lower of cost and net realizable value for first-in, first-out (FIFO) method inventories. The LIFO method is the predominant method of inventory costing in the United States. The FIFO method is the predominant method of inventory costing in Europe. At ~~September 30, 2017~~ ~~and~~ ~~December 31, 2016, the LIFO method accounted for~~ ~~74 percent~~ ~~and~~ ~~75 percent~~ ~~of total inventory values, respectively.~~

(In millions) September 30, 2017 December 31, 2016
Raw materials $ 442
$ 449
Semi-finished products 837
686
Finished products 405
375
Supplies and sundry items 53
63
Total $ 1,737
$ 1,573

~~Current acquisition costs were estimated to exceed the above inventory values by~~ ~~$757 million~~ ~~and $489 million at September 30, 2017 and~~ ~~December 31, 2016, respectively. The impact from the liquidation of LIFO inventories~~

was immaterial in the three and nine months ended September 30, 2017. Cost of sales decreased and earnings (loss) before interest and income taxes increased by $21 million for the three months ended September 30, 2016 as a result of the liquidation of LIFO inventories. For the nine months ended September 30, 2016, cost of sales increased and earnings (loss) before interest and income taxes decreased by $54 million as a result of the liquidation of LIFO inventories.

~~Inventory includes~~ ~~$46 million~~ ~~and~~ ~~$54 million~~ ~~of property held for residential or commercial development as of~~ ~~September 30, 2017~~ ~~and~~ ~~December 31, 2016, respectively.~~

~~12.~~ 14. Derivative Instruments

U. S. Steel ~~is exposed to~~uses foreign ~~currency~~ exchange rate risks as a result of our European operations. USSE’s revenues are primarily in euros and costs are primarily in U.S. dollars and euros. In addition, cash requirements may be funded by intercompany loans, creating intercompany monetary assets and liabilities in currencies other than the functional currency of the entities involved and affect income when remeasured at the end of each period.

~~U. S. Steel uses euro~~ forward sales contracts (foreign exchange forwards) with maturities ~~no longer than~~ 12up to 20 months ~~to exchange euros for U.S. dollars~~ to manage our currency requirements and exposure to foreign currency exchange rate fluctuations. ~~Derivative instruments are required to be recognized at~~The USSE and Flat-Rolled segments use hedge accounting for their foreign exchange forwards. The Mini Mill segment has foreign exchange forwards for which hedge accounting has not been elected; therefore, the changes in the fair value ~~in the Consolidated Balance Sheet. U. S. Steel has not elected to designate these euro forward sales contracts as hedges. Therefore, changes in~~of their ~~fair value~~foreign exchange forwards are recognized immediately in the Consolidated Statements of ~~Operations.~~Operations (mark-to-market accounting).

~~As of~~ ~~September 30, 2017~~,

U. S. Steel ~~held euro forward sales contracts with a total notional value of approximately~~ ~~$253 million. We mitigate~~also uses financial swaps to protect from the ~~risk of concentration of counterparty credit risk by purchasing our forward sales contracts from several counterparties.~~

~~Additionally, U. S. Steel uses fixed-price forward physical purchase contracts to partially manage our exposure to~~commodity price risk ~~related to the~~associated with purchases of natural gas, zinc, tin, electricity and ~~certain nonferrous metals used in the production process. During 2017 and 2016, the forward physical~~iron ore (commodity purchase ~~contracts~~swaps). We elected cash flow hedge accounting for commodity purchase swaps for natural gas, zinc and ~~nonferrous metals qualified~~tin and iron ore and use mark-to-market accounting for electricity swaps. The commodity purchase swaps where hedge accounting was elected have maturities up to 21 months. The commodity purchase swaps where hedge accounting was not elected have maturities of up to 9 months.

U. S. Steel has entered into financial swaps that are used to partially manage the ~~normal~~sales price risk of certain hot-rolled coil sales (sales swaps) and iron ore sales (zero cost collars and swaps). Both the sales swaps and the zero cost collars are accounted for using hedge accounting and have maturities of up to 12 months.

The table below shows the outstanding swap quantities used to hedge forecasted purchases and ~~normal~~ sales ~~exemption described in ASC Topic 815~~as of March 31, 2023 and ~~were not subject to mark-to-market accounting.~~March 31, 2022:


Hedge Contracts	Classification	March 31, 2023		March 31, 2022
Natural gas (in mmbtus)	Commodity purchase swaps	32,976,000		43,265,000
Tin (in metric tons)	Commodity purchase swaps	1,045		2,430
Zinc (in metric tons)	Commodity purchase swaps	23,783		15,679
Electricity (in megawatt hours)	Commodity purchase swaps	367,200		724,320
Iron ore (in metric tons)	Commodity purchase swaps	280,000		30,000
Iron ore (in metric tons)	Zero-cost collars	—		1,080,000
Iron ore (in metric tons)	Sales swaps	1,087,500		—
Hot-rolled coils (in tons)	Sales swaps	215,000		110,000
Foreign currency (in millions of euros)	Foreign exchange forwards	€	383	€	311
Foreign currency (in millions of dollars)	Foreign exchange forwards	$	85	$	158

The following summarizes the ~~location and~~fair value amounts ~~of the fair values and gains or losses related to derivatives~~ included in ~~U. S. Steel's consolidated financial statements~~our Condensed Consolidated Balance Sheets as of ~~September 30, 2017~~March 31, 2023, and December 31, ~~2016~~2022:

-12-


Balance Sheet Location (in millions)	March 31, 2023		December 31, 2022
Designated as Hedging Instruments
Accounts receivable	$	17	$	20
Accounts payable	133		68

Other long-term liabilities	4		15
Not Designated as Hedging Instruments
Accounts receivable	4		13
Investments and long-term receivables	—		1

The table below summarizes the effect of hedge accounting on Accumulated Other Comprehensive Income (AOCI) and amounts reclassified from AOCI into earnings for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2023 and ~~2016:~~2022:


	Gain (Loss) on Derivatives in AOCI					Amount of Gain (Loss) Recognized in Income
(In millions)	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022		Location of Reclassification from AOCI (a)	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
Sales swaps	$	(31)	$	(57)	Net sales	$	3	$	(26)
Commodity purchase swaps	(18)		88		Cost of sales (b)	(9)		22
Foreign exchange forwards	(8)		(2)		Cost of sales	4		8
(a) The earnings impact of our hedging instruments substantially offsets the earnings impact of the related hedged items resulting in immaterial ineffectiveness.
(b) Costs for commodity purchase swaps are recognized in cost of sales as products are sold.

At current contract values, $79 million currently in AOCI as of March 31, 2023, will be recognized as an increase in cost of sales over the next year and $37 million currently in AOCI as of March 31, 2023, will be recognized as a decrease in net sales over the next year.

The loss recognized for foreign exchange forwards and financial swaps where hedge accounting was not elected was $10 million for the three months ended March 31, 2023. The loss recognized for sales swaps where hedge accounting was not elected was $9 million for the three months endedMarch 31, 2022.

-13-

Fair Value Fair Value
(In millions) Balance Sheet
Location September 30, 2017 December 31, 2016
Foreign exchange forward contracts Accounts receivable $ —
$ 9
Foreign exchange forward contracts Accounts payable $ 12
$ —

(In millions) Statement of
Operations
Location Amount of Gain (Loss) Amount of Gain (Loss)
Three Months Ended September 30, 2017 Nine Months Ended
September 30, 2017
Foreign exchange forward contracts Other financial income/
costs $ (7 ) $ (20 )
15. Debt


(In millions)	Issuer/Borrower	Interest Rates %	Maturity	March 31, 2023		December 31, 2022
2037 Senior Notes	U. S. Steel	6.650	2037	274		274
2029 Senior Secured Notes	Big River Steel	6.625	2029	720		720
2029 Senior Notes	U. S. Steel	6.875	2029	475		475
2026 Senior Convertible Notes	U. S. Steel	5.000	2026	350		350
Environmental Revenue Bonds	U. S. Steel	4.125 - 6.750	2024 - 2052	924		924
Environmental Revenue Bonds	Big River Steel	4.500 - 4.750	2049	752		752
Finance leases and all other obligations	U. S. Steel	Various	2023 - 2029	117		100
Finance leases and all other obligations	Big River Steel	Various	2023 - 2027	172		176
Export Credit Agreement	U. S. Steel	Variable	2031	137		136
Credit Facility Agreement	U. S. Steel	Variable	2027	—		—
Big River Steel ABL Facility	Big River Steel	Variable	2026	—		—
USSK Credit Agreement	U. S. Steel Kosice	Variable	2026	—		—
USSK Credit Facility	U. S. Steel Kosice	Variable	2024	—		—
Total Debt				3,921		3,907
Less unamortized discount, premium, and debt issuance costs				(71)		(70)
Less short-term debt, long-term debt due within one year, and short-term issuance costs				91		63
Long-term debt				$	3,901	$	3,914

(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 accordance with the guidance found in ASC Topic 820 on fair value measurements and disclosures, the fair value of our euro forward sales contracts was determined using Level 2 inputs, which are defined as "significant other observable" inputs. The inputs used are from market sources that aggregate data based upon market transactions.

~~13.~~ ~~Debt~~

(In millions)
Interest
Rates %
Maturity September 30, 2017 December 31, 2016
2037 Senior Notes 6.65 2037 $ 350
$ 350
2025 Senior Notes 6.875 2025 750
—
2022 Senior Notes 7.50 2022 —
400
2021 Senior Secured Notes 8.375 2021 980
980
2021 Senior Notes 6.875 2021 —
200
2020 Senior Notes 7.375 2020 432
432
2018 Senior Notes 7.00 2018 —
161
Environmental Revenue Bonds 5.50 - 6.88 2017 - 2042 400
447
Recovery Zone Facility Bonds 6.75 2040 —
70
Fairfield Caster Lease 2022 26
28
Other capital leases and all other obligations 2019 1
1
Third Amended and Restated Credit Agreement Variable 2020 —
—
USSK Revolver Variable 2020 —
—
USSK credit facilities Variable 2017 - 2018 —
—
Total Debt 2,939
3,069
Less unamortized discount and debt issuance costs 40
38
Less short-term debt and long-term debt due within one year 3
50
Long-term debt $ 2,896
$ 2,981

~~To the extent not otherwise discussed below, information concerning the senior notes and other listed obligations can be found in Note 16 of the audited financial statements in the United~~Arkansas Development Finance Authority Environmental Improvement Revenue Bonds, Series 2022 (United States Steel Corporation ~~Annual Report on Form 10-K for the fiscal year ended December 31, 2016.~~Project) (Green Bonds)

~~Issuance of Senior Notes due 2025~~

~~In August 2017,~~On September 6, 2022, U. S. Steel ~~issued $750~~closed on an offering of $290 million aggregate principal amount of ~~6.875% Senior Notes~~5.450% Environmental Improvement Revenue Bonds due ~~August 15, 2025 (2025 Senior Notes)~~2052 (2052 ADFA Green Bonds). U. S. Steel received net proceeds ~~from the offering~~ of approximately ~~$737~~$287 million after fees of approximately ~~$13~~$3 million related to the underwriting and ~~third party~~third-party expenses. The net proceeds from the issuance of the ~~2025 Senior Notes, together with cash on hand,~~2052 ADFA Green Bonds were used to ~~redeem portions of our outstanding senior notes as discussed below.~~

~~The 2025 Senior Notes are senior and unsecured obligations that rank equally in right of payment with all of our other existing and future senior indebtedness.~~partially fund work related to U. S. ~~Steel will pay interest on~~Steel’s solid waste disposal facilities, including two electric arc furnaces (EAF) and other equipment facilities at its new technologically-advanced flat rolled steel making facility, BR2, currently under construction near Osceola, Arkansas.

On and after September 1, 2025, the ~~notes semi-annually in arrears on February 15~~^th ~~and August 15~~^th ~~of each year, commencing on February 15, 2018.~~

Similar to our other senior notes, the indenture governing the 2025 Senior Notes restricts our ability to create certain liens, to enter into sale leaseback transactions and to consolidate, merge, transfer or sell all, or substantially all of our assets. It also contains provisions requiring the purchase of the 2025 Senior Notes upon a change of control under certain specified circumstances, as well as other customary provisions.

~~U. S. Steel~~Company may redeem the ~~2025 Senior Notes, in whole or in part,~~2052 ADFA Green Bonds at ~~our~~its option, at any time in whole or from time to time ~~on or after August 15, 2020~~in part at the redemption ~~price for such notes set forth~~prices (expressed in percentages of principal amount) listed below, ~~as a percentage of the~~

~~principal amount,~~ plus accrued and unpaid interest on the 2052 ADFA Green Bonds, if any, to, but excluding, the applicable redemption date, if redeemed during the twelve-month period beginning ~~August 15~~on September 1 of each of the years indicated ~~below:~~below.

Year Redemption Price
2020 103.438 %
2021 101.719 %
2022 and thereafter 100.000 %


Year	Redemption Price
2025	105.000	%
2026	104.000	%
2027	103.000	%
2028	102.000	%
2029	101.000	%
2030 and thereafter	100.000	%

At any time prior to ~~August 15, 2020,~~September 1, 2025, U. S. Steel may also redeem the ~~2025 Senior Notes,~~2052 ADFA Green Bonds, at our option, in whole or in part, or from time to time, at a price equal to the greater of 100 percent of the principal amount of the ~~2025 Senior Notes to be redeemed,~~2052 ADFA Green Bonds plus accrued and unpaid interest, if any, or the sum of the present value of the redemption price of the ~~2025 Senior Notes~~2052 ADFA Green Bonds if they were redeemed on ~~August 15, 2020~~September 1, 2025, plus interest payments due through ~~August 15, 2020~~September 1, 2025, discounted to the date of redemption ~~plus 50~~on a semi-annual basis ~~points.~~

~~Under certain specified circumstances we may also purchase up to 35% of~~at the ~~original aggregate principal amount of the 2025 Senior Notes at 106.875%,~~applicable tax-exempt municipal bond rate, plus accrued and unpaid interest, if ~~any,~~any.

-14-

2026 Senior Convertible Notes

In October 2019, U. S. Steel issued $350 million of 5.00% Senior Convertible Notes due November 1, 2026 (2026 Senior Convertible Notes). Interest on the 2026 Senior Convertible Notes is payable semi-annually on May 1 and November 1 of each year. The initial conversion rate for the 2026 Senior Convertible Notes is 74.8391 shares of U. S. Steel common stock per $1,000 principal amount, equivalent to ~~but excluding~~an initial conversion price of approximately $13.36 per share of common stock, subject to adjustment pursuant to the ~~applicable date~~2026 Senior Convertible Notes indenture. Based on the initial conversion rate, the 2026 Senior Convertible Notes are convertible into 26,193,685 shares of ~~redemption,~~U. S. Steel common stock and we reserved for the possible issuance of 33,396,930 shares, which is the maximum amount that could be issued upon conversion at maturity. Prior to August 1, 2026, holders of notes may convert all or a portion of their notes at their option only upon the satisfaction of specified conditions and during certain periods. On or after August 1, 2026, holders may convert all or a portion of their notes prior to the maturity date. Upon conversion, we will satisfy the obligation with cash, common stock, or a combination thereof, at our election. U. S. Steel may not redeem the 2026 Senior Convertible Notes prior to November 5, 2023. On or after November 5, 2023, and prior to August ~~15, 2020 with proceeds from equity offerings.~~

~~Senior Note Redemption~~

~~In September 2017,~~1, 2026, if the price per share of U. S. Steel's common stock has been at least 130% of the conversion price for specified periods, U. S. Steel ~~redeemed~~may redeem all of its $161 million 7.00% Senior Notes due 2018, $200 million 6.875% Senior Notes due 2021, and $400 million 7.50% Senior Notes due 2022 in accordance with the redemption provisions under the indentures governing these notes. The aggregate redemption cost of approximately $808 million included $761 million for the present valueor a portion of the ~~remaining principal balances, $21 million in accrued and unpaid interest and $26 million in~~2026 Senior Convertible Notes at a cash redemption ~~premiums,~~price of ~~which approximately $4 million was a make-whole premium.~~

~~Redemption~~100% of ~~Recovery Zone Facility Bonds~~

On March 10, 2017, U. S. Steel announced the permanent shutdown of the No. 6 Quench & Temper Mill at Lorain Tubular Operations in Lorain, Ohio. Under the terms of the Trust Indenture dated as of December 1, 2010, between the Lorain County Port Authority and The Bank of New York Mellon Trust Company, N.A., as Trustee (the Indenture), this action and our decision to relocate the Lorain No. 6 Quench & Temper equipment to one of several other sites under consideration to optimize our operations, triggered an Extraordinary Mandatory Redemption of the Lorain County Port Authority Recovery Zone Facility Revenue Bonds (the Recovery Zone Bonds) and accordingly required U. S. Steel to redeem the Recovery Zone Bonds and repay in full the principal amount, plus accrued and unpaid interest. ~~In accordance with the terms of the Indenture,~~

If U. S. Steel ~~paid~~undergoes a fundamental change, as defined in ~~full all amounts due~~the 2026 Senior Convertible Notes, holders may require us to repurchase the 2026 Senior Convertible Notes in whole or in part for cash at a price equal to 100% of the principal amount of the 2026 Senior Convertible Notes to be purchased plus any accrued and unpaid interest up to, but excluding the repurchase date.

Big River Steel - Sustainability Linked ABL Facility

Big River Steel's amended senior secured asset-based revolving credit facility (Big River Steel ABL Facility) matures on July 23, 2026. The facility is secured by first-priority liens on accounts receivable and inventory and certain other assets and second priority liens on most tangible and intangible assets of Big River Steel in each case subject to permitted liens. Additionally, the amendment includes sustainability targets related to greenhouse gas emissions intensity reduction, safety performance and facility certification by ResponsibleSteel™.

The Big River Steel ABL Facility provides for borrowings for working capital and general corporate purposes in an amount equal up to the lesser of (a) $350 million and (b) a borrowing base calculated based on specified percentages of eligible accounts receivables and inventory, subject to certain adjustments and reserves.

Big River Steel LLC must maintain a fixed charge coverage ratio of at least 1.00 to 1.00 for the most recent twelve consecutive months when availability under the ~~Indenture, comprised~~Big River Steel ABL Facility is less than the greater of ~~$70 million principal~~ten percent of the borrowing base availability and ~~accrued interest~~$13 million. Based on the most recent four quarters as of ~~approximately $2 million, on April~~March 31, 2023, Big River Steel would have met the fixed charge coverage ratio test. The facility includes affirmative and negative covenants and events of default that are customary for facilities of this type.

There were no loans outstanding under the Big River Steel ABL Facility at March 31, 2023.

U. S. Steel - Sustainability Linked Credit Facility Agreement

On May 27, ~~2017.~~

~~Third~~2022, U. S. Steel entered into the Sixth Amended and Restated Credit Facility Agreement

~~As of September 30, 2017, there were no amounts drawn on~~ (Credit Facility Agreement) to replace the ~~$1.5 billion credit facility agreement (Third~~existing Fifth Amended and Restated Credit Facility Agreement (Fifth Credit Facility Agreement). The Credit Facility Agreement has substantially the same terms as the Fifth Credit Facility Agreement, except the Credit Facility Agreement references the Secured Overnight Financing Rate instead of the London Interbank Offered Rate, adjusts the individual lenders' commitments, and renews the five-year maturity to May 27, 2027. The Credit Facility Agreement also adjusts the threshold for the fixed charge coverage ratio. The total availability under the facility remained the same at $1,750 million, and the financial impact from replacing the Fifth Credit Facility Agreement was immaterial. Consistent with the Fifth Credit Facility Agreement, the Credit Facility Agreement is secured by first-priority liens on certain accounts receivable and inventory and includes targets related to greenhouse gas emissions intensity reduction, safety performance and facility certification by ResponsibleSteel™.

The Credit Facility Agreement provides for borrowings for working capital and general corporate purchases in an amount equal to the lesser of (a) $1,750 million or (b) a borrowing base calculated based on specified percentages of eligible accounts receivable and inventory, subject to certain adjustments and reserves. As of March 31, 2023, there were approximately $4 million of letters of credit issued and no loans drawn under the Credit Facility Agreement. U. S. Steel must maintain a fixed charge coverage ratio of at least 1.00 to 1.00 for the most recent four consecutive quarters when availability under the ~~Third Amended and Restated~~ Credit Facility Agreement is less than the greater of 10ten percent of the ~~total aggregate commitments~~maximum facility availability and ~~$150~~$140 million. Based on the most recent four quarters as of ~~September 30, 2017, we~~March 31, 2023, the Company would have met ~~this covenant. If we are unable to meet this covenant in future periods,~~ the ~~amount available to the Company under this facility would be reduced by $150 million.~~fixed charge coverage ratio test.

The Third Amended and Restated Credit Agreement provides for borrowings at interest rates based on defined, short-term market rates plus a spread based on availability and includes other customary terms and conditions including restrictions on our ability to create certain liens and to consolidate, merge or transfer all, or substantially all, of our assets. The Third Amended and Restated Credit Agreement expires in July 2020. Maturity may be accelerated 91 days prior to the stated maturity of any outstanding senior debt if excess cash and credit facility availability do not meet the liquidity conditions set forth in the Third Amended and Restated Credit Agreement. Borrowings are secured by liens on certain domestic inventory and trade accounts receivable.

~~The Third Amended and Restated Credit Agreement permits incurrence of additional secured debt up to 15% of Consolidated Net Tangible Assets.~~

U. S. Steel Košice (USSK) ~~revolver and~~Credit Facilities

On September 29, 2021, USSK entered into a €300 million (approximately $326 million) unsecured sustainability linked credit ~~facilities~~

At ~~September 30, 2017, USSK had no borrowings under its~~ ~~€200 million~~ ~~(approximately~~ ~~$236 million) unsecured revolving credit facility (the USSK~~agreement (USSK Credit Agreement). The USSK Credit Agreement matures in 2026 and contains ~~certain USSK financial covenants, including maximum Leverage, maximum Net Debt~~sustainability targets related to ~~Tangible Net Worth,~~greenhouse gas emissions intensity reduction, safety performance and minimum Interest Coverage ratios as defined in the USSK Credit Agreement. The covenants are measured semi-annually for the period covering the last twelve calendar months. USSK may not draw on the USSK Credit Agreement if it does not comply with any of the financial covenants until the next measurement date.facility certification by ResponsibleSteel™. At ~~September 30, 2017~~,March 31, 2023, USSK had ~~full availability~~no borrowings under the USSK Credit Agreement. ~~Currently,~~

-15-

Under the USSK Credit Agreement, ~~expires in July 2020.~~USSK is required to maintain a net debt to EBITDA ratio of less than 3.50:1.00 for the rolling twelve months ending June 30, 2023. The Company has determined that it may not be able to comply with the EBITDA ratio covenant at June 30, 2023, based on the currently forecasted EBITDA for the twelve-month period ending June 30, 2023. This could partially or fully limit USSK’s ability to borrow under the USSK Credit ~~Agreement permits one~~Agreement.

Any amendment or waiver may lead to additional ~~one-year extension~~lender protections, including a reduction of loan commitments or less favorable terms, and there can be no assurance that USSK can obtain waivers or amendments in timely fashion, or on acceptable terms or at all. The Company believes that USSK will have adequate cash on hand as of June 30, 2023 and will not need to borrow under the ~~final maturity date at~~USSK Credit Agreement.

During the ~~mutual consent~~first quarter of 2023, USSK ~~and~~increased the size of its ~~lenders.~~

€20 million credit facility to €30 million (approximately $33 million) (the USSK Credit Facility). At ~~September 30, 2017~~,March 31, 2023, USSK had no borrowings under ~~its~~ ~~€40 million~~ ~~and €10 million unsecured credit facilities (collectively approximately $59 million)~~the USSK Credit Facility, and the availability was approximately ~~$58~~$16 million due to approximately $1$17 million of customs and other guarantees outstanding. On October 27, 2017, USSK entered into an amendment to its €10 million unsecured credit agreement to extend the agreement's final maturity date from December 2017 to December 2018. The amendment also permits one additional one-year extension to the final maturity date at the mutual consent of USSK and its lender.

~~Each of these facilities bear interest at the applicable inter-bank offer rate plus a margin and contain customary terms and conditions.~~

~~Change in control event under various financing agreements~~

~~If there is a change in control of U. S. Steel, the following may occur: (a) debt obligations totaling~~ ~~$2,512 million~~ ~~as of~~ ~~September 30, 2017~~ (including the senior notes and the senior secured notes) may be declared due and payable; (b) the Third Amended and Restated Credit Agreement and USSK's €200 million Revolving Credit Agreement may be terminated and any amounts outstanding declared due and payable; and (c) U. S. Steel may be required to either repurchase the leased Fairfield Works slab caster for ~~$27 million~~ ~~or provide a letter of credit to secure the remaining obligation.~~

~~14.~~ ~~Asset Retirement Obligations~~

~~U. S. Steel’s asset retirement obligations (AROs) primarily relate to mine and landfill closure and post-closure costs. The following table reflects changes in the carrying values of AROs:~~

(In millions) September 30, 2017 December 31, 2016
Balance at beginning of year $ 79
$ 89
Additional obligations incurred —
2
Obligations settled (4 ) (15 )
Change in estimate of obligations (6 ) —
Foreign currency translation effects 1
—
Accretion expense 2
3
Balance at end of period $ 72
$ 79

Certain AROs related to disposal costs of the majority of fixed assets at our integrated steel facilities have not been recorded because they have an indeterminate settlement date. These AROs will be initially recognized in the period in which sufficient information exists to estimate their fair value.

~~15.~~ 16. Fair Value of Financial Instruments

The carrying value of cash and cash equivalents, current accounts and notes receivable, accounts payable ~~bank checks outstanding,~~ and accrued interest included in the Condensed Consolidated Balance Sheet approximate fair value. See Note 1214 for disclosure of U. S. Steel’s derivative instruments, which are accounted for at fair value on a recurring basis.

Stelco Option for Minntac Mine Interest

On April 30, 2020 (Effective Date), the Company entered into an Option Agreement with Stelco, Inc. (Stelco), that grants Stelco the option to purchase a 25 percent interest (Option Interest) in a to-be-formed entity (Joint Venture) that will own the Company’s current iron ore mine located in Mt. Iron, Minnesota (Minntac Mine). As consideration for the Option Interest, Stelco paid the Company an aggregate amount of $100 million in five $20 million installments during the year-ended December 31, 2020 which are recorded net of transaction costs in noncontrolling interests in the Condensed Consolidated Balance Sheet. The option can be exercised any time before January 31, 2027, and in the event Stelco exercises the option, Stelco will contribute an additional $500 million to the Joint Venture, which amount shall be remitted solely to U. S. Steel in the form of a one-time special distribution, and the parties will engage in good faith negotiations to finalize the master agreement (pursuant to which Stelco will acquire the Option Interest) and the limited liability company agreement of the Joint Venture.

Surplus VEBA assets

During the fourth quarter 2022, U. S. Steel and the United Steelworkers (USW) agreed to utilize the overfunded OPEB plans to support the benefits provided to active represented employees. Beginning January 1, 2023, this agreement allows the Company to use a certain amount of surplus VEBA assets (the surplus amount) to pay for legally permissible benefits under Section 501(c)(9) of the Internal Revenue Code for active employees and retirees of the USW. The surplus amount of $595 million was determined as of December 31, 2022 and was the balance of VEBA assets in excess of 135% of the retiree obligation at that time. On January 1, 2023, a subaccount was created and consisted of a pro-rata share of the existing trust. On February 1, 2023, using January 31, 2023 asset values, a new investment strategy was implemented and comprised of existing investments from the VEBA trust and cash. On February 1, 2023, certain assets were transferred from the VEBA to the subaccount. The Company is permitted to withdraw a target of $75 million annually, with a guaranteed annual minimum of $50 million, on a quarterly pro rata basis, from the subaccount to cover the cost of the permissible benefits for active USW employees and USW retirees. The surplus VEBA assets subaccount portfolio consists of fixed income securities including corporate bonds, U.S. government bonds, and U.S. Treasury notes, in addition to alternatives including investments in private credit partnerships and real estate funds. A portion of the corporate bonds are classified as available-for-sale debt securities, with unrealized gains and losses reported in Accumulated other comprehensive loss. Upon sale, realized gains and losses are reported in earnings. All other investments in the subaccount are financial instruments measured at fair value or net asset value, with gains and losses recognized through net earnings and are reported as a component of Other financial costs (benefits) on the Company's Consolidated Statements of Operations.

As of March 31, 2023, the fair value of the surplus VEBA assets subaccount portfolio was $602 million, with $75 million in Other current assets and $527 million in Other noncurrent assets on the Condensed Consolidated Balance Sheet. As of March 31, 2023, the value of the investment in corporate bonds classified as available-for-sale debt securities was $252 million. During the three months ended March 31, 2023, pretax net gains of $22 million and $4 million were recognized in Other financial costs (benefits) and in Accumulated other comprehensive loss, respectively.

-16-

The fair value of the subaccount portfolio by asset category at March 31 were as follows (in millions):


	March 31, 2023
	Level 1		Level 2		Level 3		measured at NAV (a)		Total
Asset Category
Fixed Income
Corporate bonds - U.S.	—		219		—		—		219
Corporate bonds - Non-U.S.	—		71		—		—		71
U.S. government bonds	—		83		—		—		83

Mortgage and asset-backed securities	—		10		—		—		10
Total fixed income	$	—	$	383	$	—	$	—	$	383
Alternatives
Private credit partnerships	—		—		58		24		82

Other alternatives	—		—		—		18		18
Total alternatives	$	—	$	—	$	58	$	42	$	100
Commingled Funds	—		—		—		66		66

Other (b)	53		—		—		—		53
Total assets at fair value	$	53	$	383	$	58	$	108	$	602

(a)In accordance with ASC Topic 820, certain investments that were measured at net asset value per share (or its equivalent) have not been classified in the fair value hierarchy.

(b)Includes cash, accrued income, and miscellaneous payables.

The following table summarizes U. S. Steel’s financial ~~assets and~~ liabilities that were not carried at fair value at ~~September 30, 2017~~March 31, 2023 and December 31, ~~2016.~~

September 30, 2017 December 31, 2016
(In millions) Fair
Value Carrying
Amount Fair
Value Carrying
Amount
Financial liabilities:

Long-term debt ^(a)
$ 3,059
$ 2,872
$ 3,139
$ 3,002

~~(a)Excludes capital lease obligations.~~

2022. The ~~following methods and assumptions were used to estimate the~~ fair value of ~~financial instruments included in the table above:~~

~~Long-term~~long-term debt~~: Fair value~~ was determined using Level 2 ~~inputs which were derived from quoted market prices and is based on the yield on public debt where available or current borrowing rates available for financings with similar terms and maturities.~~inputs.

Fair value of the financial liabilities disclosed herein is not necessarily representative of the amount that could be realized or settled, nor does the fair value amount consider the tax consequences of realization or settlement.


	As of March 31, 2023				As of December 31, 2022
(In millions)	Fair Value		Carrying Amount		Fair Value		Carrying Amount
Financial liabilities:
Long-term debt (a)	$	3,874	$	3,703	$	3,815	$	3,701

~~Financial guarantees are U. S. Steel’s only unrecognized financial instrument. For details relating to financial guarantees see Note 20.~~

(a) Excludes finance lease obligations.

-17-

~~16.~~

17. Statement of Changes in Stockholders’ Equity

The following table reflects the first ~~nine~~three months of ~~2017~~2023 and ~~2016 reconciliations~~2022 reconciliation of the carrying ~~amounts~~amount of total equity, equity attributable to U. S. Steel and equity attributable to noncontrolling interests:


Three Months Ended March 31, 2023 (In millions)	Total		Retained Earnings		Accumulated Other Comprehensive Loss		Common Stock		Treasury Stock		Paid-in Capital		Non- Controlling Interest
Balance at beginning of year	$	10,311	$	6,030	$	(85)	$	283	$	(1,204)	$	5,194	$	93
Comprehensive income (loss):
Net earnings	199		199		—		—		—		—		—
Other comprehensive income (loss), net of tax:
Pension and other benefit adjustments	(10)		—		(10)		—		—		—		—
Currency translation adjustment	32		—		32		—		—		—		—
Derivative financial instruments	(44)		—		(44)		—		—		—		—
Active employee benefit investments	3		—		3		—		—		—		—
Employee stock plans	(9)		—		—		2		(22)		11		—
Common stock repurchased	(75)		—		—		—		(75)		—		—
Dividends paid on common stock	(12)		(12)		—		—		—		—		—

Balance at March 31, 2023	$	10,395	$	6,217	$	(104)	$	285	$	(1,301)	$	5,205	$	93


Three Months Ended March 31, 2022 (In millions)	Total		Retained Earnings		Accumulated Other Comprehensive Income		Common Stock		Treasury Stock		Paid-in Capital		Non- Controlling Interest
Balance at beginning of year	$	9,103	$	3,534	$	331	$	280	$	(334)	$	5,199	$	93
Comprehensive income (loss):
Net earnings	882		882		—		—		—		—		—
Other comprehensive income (loss), net of tax:
Pension and other benefit adjustments	(3)		—		(3)		—		—		—		—
Currency translation adjustment	(28)		—		(28)		—		—		—		—
Derivative financial instruments	22		—		22		—		—		—		—
Employee stock plans	7		—		—		2		(20)		25		—
Common stock repurchased	(123)		—		—		—		(123)		—		—
Dividends paid on common stock	(13)		(13)		—		—		—		—		—
Cumulative effect upon adoption of Accounting Standards Update 2020-06	(56)		22		—		—		—		(78)		—
Balance at March 31, 2022	$	9,791	$	4,425	$	322	$	282	$	(477)	$	5,146	$	93

-18-

Nine Months Ended September 30, 2017 (In millions) Total Accumulated
Deficit Accumulated
Other
Comprehensive
(Loss) Income Common
Stock Treasury
Stock Paid-in
Capital Non-
Controlling
Interest
Balance at beginning of year $ 2,275
$ (250 ) $ (1,497 ) $ 176
$ (182 ) $ 4,027
$ 1
Comprehensive income (loss):

Net earnings 228
228

Other comprehensive income, net of tax: ^(a)

Pension and other benefit adjustments 146

146

Currency translation adjustment 149

149

Employee stock plans 26

90
(64 )
Dividends paid on common stock (26 )

(26 )
Other 10
4
6

Balance at September 30, 2017 $ 2,808
$ (18 ) $ (1,196 ) $ 176
$ (92 ) $ 3,937
$ 1

^(a) ~~Amounts for 2017 do not reflect a tax benefit as a result of a full valuation allowance on our domestic deferred tax assets.~~

Nine Months Ended September 30, 2016 (In millions) Total
Retained
Earnings
(Accumulated Deficit)
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: ^(b)

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

^(b) ~~Amounts for 2016 do not reflect a tax benefit as a result of a full valuation allowance on our domestic deferred tax assets.~~

~~17.~~ 18. Reclassifications from Accumulated Other Comprehensive Income (AOCI)

(In millions) ^(a)
Pension and
Other Benefit
Items Foreign
Currency
Items Other Total
Balance at December 31, 2016 $ (1,771 ) $ 274
$ —
$ (1,497 )
Other comprehensive income before reclassifications 296
149
6
451
Amounts reclassified from AOCI (141 )
^(b)
—
—
(141 )
Sale of ownership interest in Tilden Mining Company L.C. (9 ) —
—
(9 )
Net current-period other comprehensive income 146
149
6
301
Balance at September 30, 2017 $ (1,625 ) $ 423
$ 6
$ (1,196 )


(In millions)	Pension and Other Benefit Items		Foreign Currency Items		Unrealized (Loss) Gain on Derivatives		Active Employee Benefit Investments		Total
Balance at December 31, 2022	$	(322)	$	280	$	(43)	$	—	$	(85)
Other comprehensive income (loss) before reclassifications	1		32		(65)		3		(29)
Amounts reclassified from AOCI (a)	(11)		—		21		—		10
Net current-period other comprehensive (loss) income	(10)		32		(44)		3		(19)
Balance at March 31, 2023	$	(332)	$	312	$	(87)	$	3	$	(104)

Balance at December 31, 2021	$	(25)	$	371	$	(15)	$	—	$	331
Other comprehensive (loss) income before reclassifications	(2)		(28)		15		—		(15)
Amounts reclassified from AOCI (a)	(1)		—		7		—		6
Net current-period other comprehensive (loss) income	(3)		(28)		22		—		(9)
Balance at March 31, 2022	$	(28)	$	343	$	7	$	—	$	322

(a)~~Amounts do not reflect a tax benefit as a result of a full valuation allowance on our domestic deferred tax assets.~~

~~(b)~~See table below for further details.

Amount reclassified from AOCI
Three Months Ended September 30, Nine Months Ended September 30,
(In millions) ^(a)
Details about AOCI components 2017 2016 2017 2016
Amortization of pension and other benefit items

Prior service costs ^(b)
$ 8
$ (8 ) $ 22
$ (27 )

Actuarial losses ^(b)
38
(34 ) 114
(99 )

Settlement, termination and curtailment
(losses)^(b)
1
(10 ) 5
(13 )
Total before tax 47
(52 ) 141
(139 )
Tax benefit —
—
—
—

Net of tax ^(c)
$ 47
$ (52 ) $ 141
$ (139 )


	Amount reclassified from AOCI
	Three Months Ended March 31,
Details about AOCI components (in millions)	2023		2022
Amortization of pension and other benefit items (a)
Prior service credits	$	(1)	$	(7)
Actuarial (gains) losses	(16)		6

Total pensions and other benefits items	(17)		(1)
Derivative reclassifications to Condensed Consolidated Statements of Operations	28		10

Total before tax	11		9
Tax benefit	(1)		(3)
Net of tax	$	10	$	6

(a)~~Amounts in parentheses indicate decreases in AOCI.~~

~~(b)~~These AOCI components are included in the computation of net periodic benefit ~~cost (see~~cost. See Note 610 for additional ~~details).~~details.

~~(c)Amounts do not reflect a tax benefit as a result of a full valuation allowance on our domestic deferred tax assets.~~

~~18.~~ 19. Transactions with Related Parties

Net sales to related parties and receivables from related parties primarily reflect sales of raw materials and steel products to equity investees and U. S. Steel Canada Inc. (USSC) after the Canada Companies' Creditor Arrangement Act (CCAA) filing on September 16, 2014, but before the sale to an affiliate of Bedrock Industries Group LLC (Bedrock). Generally, transactions are conducted under long-term market-based contractual arrangements. Related party sales and service transactions are primarily related to equity investees and were ~~$272~~$558 million and ~~$316~~$391 million for the three months ended ~~September 30, 2017~~March 31, 2023 and ~~2016, respectively, and $941 million and $895 million for the nine months ended September 30, 2017 and 2016, respectively.~~

Purchases from related parties for outside processing services provided by equity investees and USSC after the CCAA filing on September 16, 2014, but before the sale to Bedrock amounted to $7 million and $25 million for the three months ended September 30, 2017 and 2016, respectively, and $62 million and $68 million for the nine months ended September 30, 2017 and 2016, respectively. Purchases of iron ore pellets from related parties amounted to $40 million and $43 million for the three months ended September 30, 2017 and 2016, respectively, and $120 million and $131 million for the nine months ended September 30, 2017 and 2016,2022, respectively.

Accounts payable to related parties include balances due to PRO-TEC Coating Company, LLC (PRO-TEC) of ~~$77~~$168 million and ~~$63~~$142 million at ~~September 30, 2017~~March 31, 2023 and December 31, ~~2016,~~2022, respectively for invoicing and receivables collection services provided by U. S. ~~Steel.~~Steel on PRO-TEC's behalf. U. S. Steel, as PRO-TEC’s exclusive sales agent, is responsible for credit risk related to those receivables. U. S. Steel also provides PRO-TEC marketing, selling and customer service functions. Payables to other related parties ~~including USSC after the CCAA filing on~~

~~September 16, 2014, but before the sale Bedrock~~ totaled $2$3 million and $3$1 million ~~at September 30, 2017~~for the periods ending March 31, 2023 and December 31, ~~2016,~~2022, respectively.

~~As a result~~Purchases from related parties for outside processing services provided by equity investees amounted to $7 million for both periods ending March 31, 2023 and 2022, respectively. Purchases of iron ore pellets from related parties amounted to $21 million and $25 million for the ~~completion of the restructuring~~three months ended March 31, 2023 and disposition of U. S. Steel Canada Inc. on June 30, 2017, subsequent transactions between the Company and U. S. Steel Canada Inc. are no longer considered related party transactions and are accounted for and recognized as third-party transactions. See Note 21 for further details.2022, respectively.

~~19.~~ 20. Restructuring and Other Charges

During the ~~nine~~three months ended ~~September 30, 2017,~~March 31, 2023, the Company recorded ~~a net~~ restructuring ~~charge~~and other charges of ~~$30~~$1 million, which ~~consists of charges of $35 million~~ related to the ~~permanent shutdown~~planned disposition of a component within the No. 6 Quench & Temper Mill at Lorain Tubular Operations and a favorable adjustment of $5 million primarily associated with a change in estimate for previously recorded costs for environmental obligations and Company-wide headcount reductions.Flat-Rolled segment. Cash payments were made related to ~~severance and exit costs~~previously accrued restructuring programs of ~~$24~~approximately $46 million.

~~Restructuring charges recorded during~~

-19-

During the three ~~and nine~~ months ended ~~September 30, 2016 were immaterial.~~

~~Charges for restructuring and ongoing cost reduction initiatives are recorded in the period~~March 31, 2022, the Company commits to a restructuring or cost reduction plan, or executes specific actions contemplated by the plan and all criteria for liability recognition have been met. Charges related to the restructuring and cost reductions are reported inrecorded restructuring and other charges inof $17 million related to the ~~Consolidated Statements~~planned sale of ~~Operations.~~a component within the Flat-Rolled segment. Cash payments were made related to previously accrued restructuring programs of approximately $23 million.

The activity in the accrued balances incurred in relation to restructuring ~~and other cost reduction programs~~ during the ~~nine~~three months ended ~~September 30, 2017 were~~March 31, 2023, was as follows:

Employee Related Exit Non-cash
(in millions) Costs Costs Charges Total
Balance at December 31, 2016 $ 14
$ 60
$ —
$ 74
Additional charges 1
—
35
36
Cash payments/utilization (7 ) (17 ) (35 ) (59 )
Other adjustments and reclassifications (4 )
(2 ) —
(6 )
Balance at September 30, 2017 $ 4
$ 41
$ —
$ 45


(In millions)	Employee Related Costs		Exit Costs		Non-cash Charges		Total
Balance at December 31, 2022	$	132	$	50	$	—	$	182
Additional charges	1		—		—		1
Release of prior accruals and other adjustments(a)	(2)		(1)		—		(3)
Cash payments	(24)		(22)		—		(46)
Balance at March 31, 2023	$	107	$	27	$	—	$	134
(a)Includes releases of accruals to reflect the current estimate of costs to complete approved restructuring programs.

Accrued liabilities for restructuring ~~and other cost reduction~~ programs are included in the following balance sheet lines:


(In millions)	March 31, 2023		December 31, 2022
Accounts payable	$	19	$	33
Payroll and benefits payable	102		—
Employee benefits	4		131
Deferred credits and other noncurrent liabilities	9		18
Total	$	134	$	182


Title of each class	Trading Symbol	Name of each exchange on which registered
United States Steel Corporation Common Stock	X	New York Stock Exchange
United States Steel Corporation Common Stock	X	Chicago Stock Exchange



			Page
PART I – FINANCIAL INFORMATION
	Item 1.	Financial Statements:
		Condensed Consolidated Statement of Operations (Unaudited)	1
		Condensed Consolidated Statement of Comprehensive Income ~~(Loss)~~ (Unaudited)	2
		Condensed Consolidated Balance Sheet (Unaudited)	3
		Condensed Consolidated Statement of Cash Flows (Unaudited)	4
		Notes to Condensed Consolidated Financial Statements (Unaudited)	5
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2824
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	4735
	Item 4.	Controls and Procedures	4835
				~~Supplemental Statistics (Unaudited)~~	49
PART II – OTHER INFORMATION
	Item 1.	Legal Proceedings	5036
	Item 1A.	Risk Factors	39
	Item 2	Purchases of Equity Securities by Issuer and Affiliated Purchasers	40
	Item 3	Defaults upon Senior Securities	40
	Item 4.	Mine Safety Disclosure	5540
	Item 5.	Other Information	5540
	Item 6.	Exhibits	5541
SIGNATURE			5642
WEB SITE POSTING			5642



			~~[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



	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in millions, except per share amounts)	2017			2016			2017			2016
Net sales:
Net sales	$	2,976		$	2,370		$	8,176		$	6,716
Net sales to related parties (Note 18)	272			316			941			895
Total	3,248			2,686			9,117			7,611
Operating expenses (income):
Cost of sales (excludes items shown below)	2,829			2,360			8,115			7,193
Selling, general and administrative expenses	89			73			265			206
Depreciation, depletion and amortization	118			126			376			384
Earnings from investees	(9		)	(18		)	(29		)	(91		)
Gain on equity investee transactions (Note 4)	(21		)	—			(21		)	—
Gain associated with retained interest in U. S. Steel Canada Inc. (Note 21)	—			—			(72		)	—
Impairment of intangible assets	—			14			—			14
Restructuring and other charges (Note 19)	(2		)	(3		)	30			1
Net (gain) loss on disposal of assets	(1		)	3			(2		)	6
Other income, net	—			(1		)	(5		)	(1		)
Total	3,003			2,554			8,657			7,712
Earnings (loss) before interest and income taxes	245			132			460			(101		)
Interest expense	60			58			173			173
Interest income	(5		)	(2		)	(13		)	(5		)
Loss on debt extinguishment	31			—			32			22
Other financial costs	12			6			37			18
Net interest and other financial costs (Note 7)	98			62			229			208
Earnings (loss) before income taxes	147			70			231			(309		)
Income tax provision (Note 9)	—			19			3			26
Net earnings (loss)	147			51			228			(335		)
Less: Net earnings attributable to noncontrolling interests	—			—			—			—
Net earnings (loss) attributable to United States Steel Corporation	$	147		$	51		$	228		$	(335	)
Earnings (loss) per common share (Note 10):
Earnings (loss) per share attributable to United States Steel Corporation stockholders:
-Basic	$	0.84		$	0.32		$	1.30		$	(2.22	)
-Diluted	$	0.83		$	0.32		$	1.29		$	(2.22	)



	(In millions)
Remaining Useful Life of Assets	Net Book Value at December 31, 2016
Under 5 years	$	597
6-10 years	629
11-15 years	765
16-20 years	654
21-25 years	363
Over 25 years	479
Assets not subject to depreciation	492
Total	$	3,979



	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2017			2016			2017			2016
Items not allocated to segments:
Postretirement benefit (expense) income^(a)	$	(14	)	$	8		$	(42	)	$	36
Other items not allocated to segments:
Loss on shutdown of certain tubular assets^(b)	—			—			(35		)	—
Gain on equity investee transactions^(c)	21			—			21			—
Gain associated with retained interest in U. S. Steel Canada Inc. (Note 21)	—			—			72			—
Impairment of intangible assets (Note 5)	—			(14		)	—			(14		)
Restructuring and other charges and adjustments^(d)	—			—			—			(2		)
Total other items not allocated to segments	21			(14		)	58			(16		)
Total reconciling items	$	7		$	(6	)	$	16		$	20



		As of September 30, 2017						As of December 31, 2016
(In millions)	Useful Lives	Gross Carrying Amount		Accumulated Amortization		Net Amount		Gross Carrying Amount		Accumulated Amortization		Net Amount
Customer relationships	12 Years	$	132	$	63	$	69	$	132	$	59	$	73
Patents	5-12 Years	22		4		18		22		2		20
Other	4-10 Years	14		7		7		14		7		7
Total amortizable intangible assets		$	168	$	74	$	94	$	168	$	68	$	100



	Pension Benefits						Other Benefits
(In millions)	2017			2016			2017			2016
Service cost	$	13		$	14		$	4		$	5
Interest cost	59			64			23			25
Expected return on plan assets	(98		)	(106		)	(16		)	(38		)
Amortization of prior service cost	—			2			8			6
Amortization of actuarial net loss	37			33			1			1
Net periodic benefit cost (income), excluding below	11			7			20			(1		)
Multiemployer plans	15			16			—			—
Settlement, termination and curtailment losses	1			10			—			—
Net periodic benefit cost (income)	$	27		$	33		$	20		$	(1	)



Black-Scholes Assumptions^(a)	2017 Grants			2016 Grants
Grant date price per share of option award	$	36.94		$	14.78
Exercise price per share of option award	$	36.94		$	14.78
Expected annual dividends per share, at grant date	$	0.20		$	0.20
Expected life in years	5.0			5.0
Expected volatility	57		%	53		%
Risk-free interest rate	1.97		%	1.46		%
Grant date fair value per share of unvested option awards as calculated from above	$	17.28		$	6.24



	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2017	2016	2017	2016
Securities granted under the 2005 Stock Incentive Plan, as amended and the 2016 Omnibus Incentive Compensation Plan, as amended	2,679	4,613	1,677	9,568



(In millions)	September 30, 2017		December 31, 2016
Raw materials	$	442	$	449
Semi-finished products	837		686
Finished products	405		375
Supplies and sundry items	53		63
Total	$	1,737	$	1,573



		Fair Value		Fair Value
(In millions)	Balance Sheet Location	September 30, 2017		December 31, 2016
Foreign exchange forward contracts	Accounts receivable	$	—	$	9
Foreign exchange forward contracts	Accounts payable	$	12	$	—



(In millions)	Statement of Operations Location	Amount of Gain (Loss)			Amount of Gain (Loss)
(In millions)	Statement of Operations Location	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017
Foreign exchange forward contracts	Other financial income/ costs	$	(7	)	$	(20	)



Year	Redemption Price
2020	103.438	%
2021	101.719	%
2022 and thereafter	100.000	%



Nine Months Ended September 30, 2017 (In millions)	Total			Accumulated Deficit			Accumulated Other Comprehensive (Loss) Income			Common Stock		Treasury Stock			Paid-in Capital			Non- Controlling Interest
Balance at beginning of year	$	2,275		$	(250	)	$	(1,497	)	$	176	$	(182	)	$	4,027		$	1
Comprehensive income (loss):
Net earnings	228			228
Other comprehensive income, net of tax: ^(a)
Pension and other benefit adjustments	146						146
Currency translation adjustment	149						149
Employee stock plans	26											90			(64		)
Dividends paid on common stock	(26		)												(26		)
Other	10			4			6
Balance at September 30, 2017	$	2,808		$	(18	)	$	(1,196	)	$	176	$	(92	)	$	3,937		$	1



Nine Months Ended September 30, 2016 (In millions)	Total			Retained Earnings (Accumulated Deficit)			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: ^(b)
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



(In millions) ^(a)	Pension and Other Benefit Items				Foreign Currency Items		Other		Total
Balance at December 31, 2016	$	(1,771	)		$	274	$	—	$	(1,497	)
Other comprehensive income before reclassifications	296				149		6		451
Amounts reclassified from AOCI	(141		)	^(b)	—		—		(141		)
Sale of ownership interest in Tilden Mining Company L.C.	(9		)		—		—		(9		)
Net current-period other comprehensive income	146				149		6		301
Balance at September 30, 2017	$	(1,625	)		$	423	$	6	$	(1,196	)



	Employee Related			Exit			Non-cash
(in millions)	Costs			Costs			Charges			Total
Balance at December 31, 2016	$	14		$	60		$	—		$	74
Additional charges	1			—			35			36
Cash payments/utilization	(7		)	(17		)	(35		)	(59		)
Other adjustments and reclassifications	(4		)	(2		)	—			(6		)
Balance at September 30, 2017	$	4		$	41		$	—		$	45



Period ended	Opening Number of Claims	Claims Dismissed, Settled and Resolved	New Claims	Closing Number of Claims
December 31, 2014	3,320	190	325	3,455
December 31, 2015	3,455	415	275	3,315
December 31, 2016	3,315	225	250	3,340
September 30, 2017	3,340	200	185	3,325


Period ended	Opening Number of Claims	Claims Dismissed, Settled and Resolved	New Claims	Closing Number of Claims
December 31, 2020	2,390	240	295	2,445
December 31, 2021	2,445	200	260	2,505
December 31, 2022	2,505	230	235	2,510
March 31, 2023	2,510	50	50	2,510



(In millions)	Nine Months Ended September 30, 2017
Beginning of period	$	179
Accruals for environmental remediation deemed probable and reasonably estimable	6
Obligations settled	(5		)
End of period	$	180


	As of		As of
(In millions)	March 31, 2023		December 31, 2022
Accounts payable	$	32	$	32
Deferred credits and other noncurrent liabilities	88		94
Total	$	120	$	126


Remainder of 2023	2024	2025	2026	2027	Later Years	Total
$458	$632	$283	$280	$152	$473	$2,278



Remainder of 2017	2018	2019	2020	2021	Later Years	Total
$147	$734	$402	$316	$309	$1,067	$2,975



	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in millions, excluding intersegment sales)	2017		2016		% Change		2017		2016		% Change
Flat-Rolled Products (Flat-Rolled)	$	2,249	$	1,986	13	%	$	6,265	$	5,643	11	%
U. S. Steel Europe (USSE)	710		575		23	%	2,123		1,616		31	%
Tubular Products (Tubular)	276		114		142	%	682		303		125	%
Total sales from reportable segments	3,235		2,675		21	%	9,070		7,562		20	%
Other Businesses	13		11		18	%	47		49		(4	)%
Net sales	$	3,248	$	2,686	21	%	$	9,117	$	7,611	20	%


	Steel Products (a)
	Volume		Price		Mix		FX (b)		Other (c)		Net Change
Flat-Rolled	15	%	(24)	%	(3)	%	—	%	(1)	%	(13)	%
Mini Mill	29	%	(52)	%	—	%	—	%	—	%	(23)	%
USSE	(20)	%	(9)	%	(1)	%	(4)	%	1	%	(33)	%
Tubular	2	%	60	%	1	%	—	%	—	%	63	%
(a) Excludes intersegment sales.
(b) Foreign currency translation effects.
(c) Primarily sales of raw materials and coke making by-products.



	Steel Products ^(a)
	Volume		Price		Mix		FX ^(b)		Coke, Pellets & Other ^(c)		Net Change
Flat-Rolled	(5	)%	22	%	(11	)%	—	%	5	%	11	%
USSE	3	%	29	%	(1	)%	—	%	—	%	31	%
Tubular	96	%	6	%	16	%	—	%	7	%	125	%



	Three Months Ended September 30,		Twelve Months Ended September 30,
	2017	2016	2017	2016
Accounts Receivable Turnover	2.2	2.2	8.6	8.0
Inventory Turnover	1.6	1.4	6.1	4.7


Cash Conversion Cycle	First Quarter of 2023		Fourth Quarter of 2022
	$ millions	Days	$ millions	Days
Accounts receivable, net (a)	$1,808	35	$1,634	39

+ Inventories (b)	$2,541	56	$2,359	60

- Accounts Payable and Other Accrued Liabilities (c)	$3,001	67	$2,831	70
= Cash Conversion Cycle (d)		24		29



UNITED STATES STEEL CORPORATION
RECONCILIATION OF ANNUAL ADJUSTED EBITDA OUTLOOK

		Year Ended
		Dec. 31
(Dollars in millions)		2017
Reconciliation to Projected Annual Adjusted EBITDA Included in Outlook
	Projected net earnings attributable to United States Steel Corporation included in Outlook	$	323
	Gain associated with retained interest in U. S. Steel Canada Inc.	(72		)
	Gain on equity investee transactions	(21		)
	Loss on shutdown of certain tubular assets	35
	Loss on debt extinguishment and other related costs	35
	Adjusted net earnings attributable to United States Steel Corporation included in Outlook	$	300
	Estimated income tax expense	10
	Estimated net interest and other financial costs	250
	Estimated depreciation, depletion and amortization	515
	Projected annual adjusted EBITDA included in Outlook	$	1,075


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs in effect at March 31, 2023 (a)
January 1 - 31, 2023	1,827,352	$	27.36	1,827,352	$	251,000,800
February 1 - 28, 2023	—	$	—	—	$	251,000,800
March 1 - 31, 2023	985,667	$	25.36	985,667	$	226,000,800
Quarter ended March 31, 2023	2,813,019	$	26.66	2,813,019	$	226,000,800