Statement Of Income Alternative
Statement Of Income Alternative (USD $) | ||||
In Millions, except Share data in Thousands | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
Net sales: | ||||
Net sales | $2,571 | $6,939 | $7,167 | $18,256 |
Net sales to related parties (Note 24) | 246 | 373 | 527 | 996 |
Total | 2,817 | 7,312 | 7,694 | 19,252 |
Operating expenses (income): | ||||
Cost of sales (excludes items shown below) | 2,902 | 5,752 | 8,249 | 15,892 |
Selling, general and administrative expenses | 163 | 151 | 460 | 464 |
Depreciation, depletion and amortization | 167 | 149 | 484 | 464 |
Loss (Income) from investees | 1 | (51) | 32 | (92) |
Net gains on disposal of assets | (1) | (6) | (134) | (8) |
Other income, net (Note 9) | (3) | (10) | (42) | (15) |
Total | 3,229 | 5,985 | 9,049 | 16,705 |
(Loss) Income from operations | (412) | 1,327 | (1,355) | 2,547 |
Interest expense | 42 | 40 | 116 | 128 |
Interest income | (2) | (3) | (5) | (11) |
Other financial (income) costs (Note 10) | (15) | 9 | (6) | (78) |
Net interest and other financial costs (income) | 25 | 46 | 105 | 39 |
(Loss) Income before income taxes | (437) | 1,281 | (1,460) | 2,508 |
Income tax (benefit) provision (Note 12) | (130) | 339 | (322) | 652 |
Net (loss) income | (307) | 942 | (1,138) | 1,856 |
Less: Net (loss) income attributable to noncontrolling interests | (4) | 23 | (4) | 34 |
Net (loss) income attributable to United States Steel Corporation | ($303) | $919 | ($1,134) | $1,822 |
Net (loss) income per share attributable to United States Steel Corporation shareholders: | ||||
- Basic | -2.11 | 7.84 | -8.62 | 15.51 |
- Diluted | -2.11 | 7.79 | -8.62 | 15.43 |
Weighted average shares, in thousands: | ||||
- Basic | 143,363 | 117,169 | 131,466 | 117,423 |
- Diluted | 143,363 | 117,826 | 131,466 | 118,051 |
Dividends paid per share | 0.05 | 0.3 | 0.4 | 0.8 |
Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Dec. 31, 2008 |
Current assets: | ||
Cash and cash equivalents | $1,543 | $724 |
Receivables, less allowance of $54 and $52 (Note 20) | 1,502 | 2,106 |
Receivables from related parties (Note 24) | 136 | 182 |
Inventories (Note 14) | 1,677 | 2,492 |
Income tax receivable (Note 12) | 206 | 0 |
Deferred income tax benefits (Note 12) | 142 | 177 |
Other current assets | 50 | 51 |
Total current assets | 5,256 | 5,732 |
Investments and long-term receivables, less allowance of $7 and $10 | 697 | 695 |
Property, plant and equipment - net (Note 8) | 6,860 | 6,676 |
Intangibles - net (Note 6) | 281 | 282 |
Goodwill (Note 6) | 1,702 | 1,609 |
Assets held for sale (Note 5) | 12 | 211 |
Deferred income tax benefits (Note 12) | 732 | 666 |
Other noncurrent assets | 309 | 216 |
Total assets | 15,849 | 16,087 |
Current liabilities: | ||
Accounts payable | 1,408 | 1,440 |
Accounts payable to related parties (Note 24) | 82 | 43 |
Bank checks outstanding | 1 | 11 |
Payroll and benefits payable | 770 | 967 |
Accrued taxes (Note 12) | 135 | 203 |
Accrued interest | 51 | 33 |
Short-term debt and current maturities of long-term debt (Note 16) | 19 | 81 |
Total current liabilities | 2,466 | 2,778 |
Long-term debt, less unamortized discount (Note 16) | 3,346 | 3,064 |
Employee benefits | 4,593 | 4,767 |
Deferred credits and other noncurrent liabilities | 405 | 419 |
Total liabilities | 10,810 | 11,028 |
Contingencies and commitments (Note 25) | - | - |
Stockholders' Equity (Note 23): | ||
Common stock (150,925,911 and 123,785,911 shares issued) (Note 13) | 151 | 124 |
Treasury stock, at cost (7,580,674 and 7,587,322 shares) | (608) | (612) |
Additional paid-in capital | 3,648 | 2,986 |
Retained earnings | 4,483 | 5,666 |
Accumulated other comprehensive loss (Note 22) | (2,925) | (3,269) |
Total United States Steel Corporation stockholders' equity | 4,749 | 4,895 |
Noncontrolling interests | 290 | 164 |
Total liabilities and stockholders' equity | $15,849 | $16,087 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
In Millions, except Share data | Sep. 30, 2009
| Dec. 31, 2008
|
Receivables, allowance | $54 | $52 |
Investments and long-term receivables, allowance | $7 | $10 |
Common stock, shares issued | 150,925,911 | 123,785,911 |
Treasury stock, shares | 7,580,674 | 7,587,322 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | ||
In Millions | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
Operating activities: | ||
Net (loss) income | ($1,138) | $1,856 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 484 | 464 |
Provision for doubtful accounts | 4 | 4 |
Pensions and other postretirement benefits | (160) | (388) |
Deferred income taxes | (258) | 262 |
Net gains on disposal of assets | (134) | (8) |
Distributions received, net of equity investees income | 43 | (50) |
Changes in: | ||
Current receivables - sold | 0 | 485 |
- repurchased | 0 | (635) |
- operating turnover | 671 | (1,114) |
Inventories | 865 | (478) |
Current accounts payable and accrued expenses | (237) | 931 |
Bank checks outstanding | (10) | (9) |
Foreign currency translation | (122) | 17 |
All other, net | 110 | (6) |
Net cash provided by operating activities | 118 | 1,331 |
Investing activities: | ||
Capital expenditures | (323) | (539) |
Capital expenditures - variable interest entities | (126) | (94) |
Acquisition of pickle lines | 0 | (36) |
Acquisition of Stelco Inc. | 0 | (1) |
Disposal of assets | 340 | 19 |
Restricted cash, net | (59) | 0 |
Investments, net | (42) | (14) |
Net cash used in investing activities | (210) | (665) |
Financing activities: | ||
Issuance of long-term debt, net of financing costs | 839 | 0 |
Repayment of long-term debt | (671) | (359) |
Revolving credit facilities - borrowings | 0 | 359 |
- repayments | 0 | (44) |
Common stock issued | 667 | 11 |
Common stock repurchased | 0 | (214) |
Distributions from noncontrolling interests | 127 | 59 |
Dividends paid | (49) | (94) |
Excess tax benefits from stock-based compensation | 0 | 9 |
Net cash provided by (used in) financing activities | 913 | (273) |
Effect of exchange rate changes on cash | (2) | (1) |
Net increase in cash and cash equivalents | 819 | 392 |
Cash and cash equivalents at beginning of year | 724 | 401 |
Cash and cash equivalents at end of period | $1,543 | $793 |
1.Basis of Presentation
1.Basis of Presentation | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
1.Basis of Presentation | 1. Basis of Presentation United States Steel Corporation (U. S. Steel) produces and sells steel mill products, including flat-rolled and tubular, in North America and Central Europe. Operations in North America also include real estate management and development, transportation services and engineering and consulting services. The year-end consolidated balance sheet data was derived from audited statements but does not include all disclosures required by accounting principles generally accepted in the United States. Additionally, the year-end consolidated balance sheet data includes certain reclassifications and adjustments that were made to conform the presentation and disclosure to U. S. Steels current presentation, as required by the guidance in Accounting Standards Codification (ASC) Topic 810 on consolidation. The other information in these financial statements is unaudited but, in the opinion of management, reflects all adjustments necessary for a fair presentation of the results for the periods covered. All such adjustments are of a normal recurring nature unless disclosed otherwise. These financial statements, including notes, have been prepared in accordance with the applicable rules of the Securities and Exchange Commission (SEC) and do not include all of the information and disclosures required by accounting principles generally accepted in the UnitedStates of America for complete financial statements. Additional information is contained in the United States Steel Corporation Annual Report on Form 10-K for the year ended December31, 2008. Certain other reclassifications of prior years data have been made. U. S. Steel has evaluated subsequent events through October27, 2009, the date it filed its report on Form 10-Q for the quarter ended September30, 2009 with the SEC, and has no material subsequent events to report other than the item disclosed in Note 26. |
2.New Accounting Standards
2.New Accounting Standards | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
2.New Accounting Standards | 2. New Accounting Standards In June 2009, the Financial Accounting Standards Board (FASB) issued Financial Accounting Standard (FAS) No.167, Amendments to FASB Interpretation No.46(R) (FAS 167). FAS 167 is a revision to FASB Interpretation No.46(R), Consolidation of Variable Interest Entities, and amends the consolidation guidance for variable interest entities. Additionally, FAS 167 will require additional disclosures about involvement with variable interest entities and any significant changes in risk exposure due to that involvement. FAS 167 is effective January1, 2010 for companies reporting on a calendar-year basis. U. S. Steel does not expect any material financial statement implications relating to the adoption of FAS 167. In June 2009, the FASB issued FAS No.166, Accounting for Transfers of Financial Assets (FAS 166). FAS 166 is a revision to FAS No.140, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities, and will require more information about transfer of financial assets, including securitization transactions, and enhanced disclosures when companies have continuing exposure to the risks related to transferred financial assets. Additionally, FAS 166 eliminates the concept of a qualifying special-purpose entity. FAS 166 is effective January1, 2010 for companies reporting on a calendar-year basis. U. S. Steel does not expect any material financial statement implications relating to the adoption of FAS 166. In December 2008, the FASB issued new guidance relating to employers disclosures about postretirement benefit plan assets to provide guidance on an employers disclosures about plan assets of a defined benefit pension or other postretirement plan. The additional required disclosures focus on fair value by category of plan assets. These disclosures are effective for fiscal years ending after December15, 2009. This guidance can be found in ASC Topic 715. We do not expect a material impact on our financial statements when these additional disclosure provisions are adopted. |
3.Segment Information
3.Segment Information | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
3.Segment Information | 3. Segment Information U.S.Steel has three reportable segments: Flat-rolled Products (Flat-rolled), U. S. Steel Europe (USSE), and Tubular Products (Tubular). The results of several other operating segments that do not constitute reportable segments are combined and disclosed in the Other Businesses category. Effective with the fourth quarter of 2008, the operating results of our iron ore operations, which were previously included in Other Businesses, are included in the Flat-rolled segment. Almost all of our iron ore production is consumed by our Flat-rolled operations and the iron ore operations are managed as part of our Flat-rolled business. The prior periods have been restated to reflect this change. The chief operating decision maker evaluates performance and determines resource allocations based on a number of factors, the primary measure being income from operations. Income from operations for reportable segments and Other Businesses does not include net interest and other financial costs, income taxes, benefit expenses for current retirees and certain other items that management believes are not indicative of future results. Information on segment assets is not disclosed, as the chief operating decision maker does not review it. The accounting principles applied at the operating segment level in determining income from operations are generally the same as those applied at the consolidated financial statement level. The transfer value for steel rounds from Flat-rolled to Tubular is based on cost. All other 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 the third quarter of 2009 and 2008 are: (In millions) Third Quarter 2009 Customer Sales Intersegment Sales Net Sales (Loss) Income from investees (Loss) Income from operations Flat-rolled $ 1,745 $ 83 $ 1,828 $ 2 $ (370 ) USSE 822 1 823 - 7 Tubular 234 - 234 (3 ) (21 ) Total reportable segments 2,801 84 2,885 (1 ) (384 ) Other Businesses 16 70 86 - 5 Reconciling Items - (154 ) (154 ) - (33 ) Total $ 2,817 $ - $ 2,817 $ (1 ) $ (412 ) Third Quarter 2008 Flat-rolled $ 4,325 $ 557 $ 4,882 $ 55 $ 846 USSE 1,598 - 1,598 - 173 Tubular 1,333 - 1,333 (4 ) 420 Total reportable segments 7,256 557 7,813 51 1,439 Other Businesses 56 262 318 - 22 Reconciling Items - (819 ) (819 ) - |
4.Acquisitions
4.Acquisitions | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
4.Acquisitions | 4. Acquisitions Non-controlling interests of Clairton 1314B Partnership, L.P. On October31, 2008, U. S. Steel acquired the interests in the Clairton 1314B Partnership, L.P. (1314B)held by unrelated parties for $104 million and 1314B was terminated. The acquisition was accounted for in accordance with FAS No.141, Business Combinations (FAS 141). U. S. Steel accounted for the purchase price of this acquisition, in excess of the acquired noncontrolling interest, using step acquisition accounting. This resulted in a partial step-up in the book value of property, plant and equipment of $73 million, which will be depreciated over 15 years. Pickle Lines On August29, 2008, U. S. Steel Canada Inc. (USSC) paid C$38 million (approximately $36million) to acquire three pickle lines in Nanticoke, Ontario, Canada. The acquisition of the pickle lines strengthened USSCs position as a premier supplier of flat-rolled steel products to the North American market. The acquisition has been accounted for in accordance with FAS 141. The purchase price has been allocated to the acquired property, plant and equipment. |
5.Assets Held for Sale
5.Assets Held for Sale | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
5.Assets Held for Sale | 5. Assets Held for Sale On January31, 2009, U. S. Steel completed the previously announced sale of the majority of the operating assets of Elgin, Joliet and Eastern Railway Company (EJE) to Canadian National Railway Company (CN) for approximately $300 million. U. S. Steel retained railroad assets, equipment, and employees that support the Gary Works. As a result of the transaction, U. S. Steel recognized a net gain of approximately $97 million, net of a $10 million pension curtailment charge (see Note 7), in the first quarter 2009. As of December31, 2008, the assets of EJE that were to be sold, consisting primarily of property, plant and equipment, were classified as held for sale in accordance with ASC Topic 360 on impairment and disposal of long-lived assets. |
6.Goodwill and Intangible Asset
6.Goodwill and Intangible Assets | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
6.Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets The changes in the carrying amount of goodwill by segment for the nine months ended September30, 2009 are as follows: Flat-rolled Segment Tubular Segment Total Balance at December31, 2008 $ 760 $ 849 $ 1,609 Currency translation 93 - 93 Balance at September30, 2009 $ 853 $ 849 $ 1,702 Goodwill represents the excess of the cost over the fair value of acquired identifiable tangible and intangible assets and liabilities assumed from businesses acquired. We have two reporting units that have a significant amount of goodwill. Our Flat-rolled reporting unit was allocated goodwill from the Stelco and Lone Star acquisitions in 2007. These amounts reflect the benefits we expect the Flat-rolled reporting unit to realize from expanding our flexibility in meeting our customers needs and running our Flat-rolled facilities at higher operating rates to source our semi-finished product needs. Our Texas Operations reporting unit, which is part of our Tubular operating segment, was allocated goodwill from the Lone Star acquisition, reflecting the benefits we expect the reporting unit to realize from the expansion of our tubular operations. Goodwill is tested for impairment at the reporting unit level annually in the third quarter and whenever events or circumstances indicate that the carrying value may not be recoverable. The evaluation of impairment involves comparing the estimated fair value of the associated reporting unit to its carrying value, including goodwill. U. S. Steel completed its annual goodwill impairment test during the third quarter of 2009 and determined that there was no goodwill impairment for either reporting unit. Fair value was determined in accordance with the guidance in ASC Topic 820 on fair value which requires consideration of the income, market and cost approaches as applicable. For the 2009 annual goodwill impairment test, U. S. Steel used fair values estimated under the income approach and the market approach. U. S. Steel did not utilize the cost approach as relevant data was not available. The income approach is based upon projected future cash flows discounted to present value using factors that consider the timing and risk associated with the future cash flows. Fair value for the Flat-rolled and Texas Operations reporting units was estimated using probability weighted scenarios of future cash flow projections based on managements long range estimates of market conditions over a multiple year horizon. A three percent perpetual growth rate was used to arrive at an estimated terminal value. A discount rate of 11 percent was used for both reporting units and was based upon the cost of capital of other comparable steel companies, which we view as the most likely market participants, as of the date of our goodwill impairment test. The market approach is based upon an analysis of valuation metrics for companies comparable to each reporting unit. Fair value for the Flat-rolled and Texas Operations reporting units was estimated using an appropriate valuation multiple based on this ana |
7.Pensions and Other Benefits
7.Pensions and Other Benefits | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
7.Pensions and Other Benefits | 7. Pensions and Other Benefits The following table reflects components of net periodic benefit cost for the three months ended September30, 2009 and 2008: Pension Benefits Other Benefits (In millions) 2009 2008 2009 2008 Service cost $ 26 $ 31 $ 5 $ 5 Interest cost 149 143 63 60 Expected return on plan assets (181 ) (198 ) (27 ) (25 ) Amortization of prior service cost 6 7 6 (4 ) Amortization of net loss (gain) 36 25 (2 ) 4 Exchange rate gain - - - (1 ) Net periodic benefit cost, excluding below 36 8 45 39 Multiemployer plans 13 14 - - Settlement, termination and curtailment benefits 3 (1 ) - - Net periodic benefit cost $ 52 $ 21 $ 45 $ 39 The following table reflects components of net periodic benefit cost for the nine months ended September30, 2009 and 2008: Pension Benefits Other Benefits (In millions) 2009 2008 2009 2008 Service cost $ 78 $ 92 $ 15 $ 14 Interest cost 436 429 187 170 Expected return on plan assets (533 ) (597 ) (80 ) (73 ) Amortization of prior service cost 18 19 17 (20 ) Amortization of net loss (gain) 107 77 (6 ) 17 Exchange rate gain - - - (1 ) Net periodic benefit cost, excluding below 106 20 133 107 Multiemployer plans 38 30 - - Settlement, termination and curtailment benefits 75 - 13 - Net periodic benefit cost $ 219 $ 50 $ 146 $ 107 Postemployment Benefits U. S. Steel recorded a credit of $8 million and net charges of $107 million in the three and nine months ended September30, 2009, respectively, related to the recognition of estimated future employee costs for supplemental unemployment benefits, salary continuance and continuation of health care benefits and life insurance coverage for employees associated with the temporary idling of certain facilities and reduced production at others. The favorable adjustment in the three months ended September30, 2009 resulted from earlier than expected restarts of some idled facilities. The accrual was recorded in accordance with the guidance in ASC Topic 712, Compensation Nonretirement Postemployment Benefits, which requires that costs associated with such ongoing benefit arrangements be recorded no later than the period when it becomes probable that the costs will be incurred and the costs are reasonably estimable. During 2009, U.S.Steel paid $75 million for the benefits associated with these charges. Settlements, Terminations and Curtailments During the first quarter of 2009, approximately 500 non-represented employees in the U |
8.Depreciation and Depletion
8.Depreciation and Depletion | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
8.Depreciation and Depletion | 8. Depreciation and Depletion Effective January1, 2009, U. S. Steel discontinued the use of the modified straight-line basis of depreciation for certain steel-related assets located in the United States based upon raw steel production levels and records depreciation on a straight-line basis for all assets. In the third quarter 2009, the modified straight-line basis of depreciation would have reduced our loss from operations, net loss and net loss per common share by $14 million, $9 million and $0.06, respectively. In the first nine months of 2009, the modified straight-line basis of depreciation would have reduced our loss from operations, net loss and net loss per common share by $41 million, $26 million and $0.19, respectively. Accumulated depreciation and depletion totaled $9,124 million and $8,669 million at September30, 2009 and December31, 2008, respectively. |
9.Other Income
9.Other Income | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
9.Other Income | 9. Other Income Other income for the nine months ended September30, 2009 includes a refund of $34 million received in the second quarter of 2009 associated with the recovery of black lung excise taxes that were paid on coal export sales during the period October1, 1990 to December31, 1992. Of the $34 million of cash received, $24 million represents interest. |
10.Net Interest and Other Finan
10.Net Interest and Other Financial Costs | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
10.Net Interest and Other Financial Costs | 10. Net Interest and Other Financial Costs Other financial costs primarily include financing costs as well as foreign currency gains and losses as a result of transactions denominated in currencies other than the functional currencies of U.S.Steels operations. During the third quarters of 2009 and 2008, net foreign currency gains of $21 million were recorded in other financial costs compared with net foreign currency losses of $6million in the third quarter of 2008. During the nine months ended September30, 2009 and 2008, net foreign currency gains of $19 million and $87 million were recorded in other financial costs. See Note 15 for additional information on U. S. Steels use of derivatives to mitigate its foreign currency rate exposure. |
11.Stock-Based Compensation Pla
11.Stock-Based Compensation Plans | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
11.Stock-Based Compensation Plans | 11. Stock-Based Compensation Plans U. S. Steel has outstanding stock-based compensation awards that were granted under several stock-based employee compensation plans, which are more fully described in Note 13 of the United States Steel Corporation 2008 Annual Report on Form 10-K. U. S. Steel recognized pre-tax stock-based compensation cost in the amount of $12 million and $10 million in the third quarters of 2009 and 2008, respectively, and $28 million and $25 million in the first nine months of 2009 and 2008, respectively. Recent grants of stock-based compensation consist of stock options, restricted stock units and performance shares. The Compensation Organization Committee of the Board of Directors (the Compensation Committee) has made grants of stock-based awards under a stockholder approved stock incentive plan (the Plan). The following table is a general summary of the awards made under the Plan. May 2009 Grant May 2008 Grant Grant Details Shares(a) FairValue(b) Shares(a) FairValue(b) Stock Options 1,026,580 $ 14.87 281,200 $ 64.51 Restricted Stock Units 564,210 $ 29.84 111,790 $ 169.01 Performance Shares (c) 116,410 $ 40.16 32,870 $ 214.52 (a) The share amounts shown in this table do not reflect an adjustment for estimated forfeitures. (b) Per share amounts (c) The number of Performance Shares shown represents the target value of the award. As of September30, 2009, total future compensation cost related to nonvested stock-based compensation arrangements was $46 million, and the weighted average period over which this cost is expected to be recognized is approximately 1.2 years. Compensation expense for stock options is recorded over the vesting period based on the fair value on the date of grant, as calculated by U. S. Steel using the Black-Scholes model and the assumptions listed below. The stock options vest ratably over a three-year service period and have a term of ten years. Black-Scholes Assumptions May2009Grant May2008Grant Grant date price per share of option award $ 29.81 $ 169.23 Expected annual dividends per share, at grant date $ 0.20 $ 1.00 Expected life in years 4.5 4.5 Expected volatility 62 % 43 % Risk-free interest rate 2.6 % 3.2 % Grant date fair value per share of unvested option awards as calculated from above $ 14.87 $ 64.51 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. Restricted stock units vest ratably over three years. The fair value of the restricted stock units is the market price of the underlying common stock on the date of the grant less a discount factor for the delayed payment of quarterly dividends. P |
12.Income Taxes
12.Income Taxes | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
12.Income Taxes | 12. Income Taxes Tax benefits The effective tax benefit rate of 22 percent for the first nine months of 2009 is lower than the statutory rate because losses in Canada and Serbia, which are jurisdictions where we have recorded full valuation allowances, do not generate a tax benefit for accounting purposes. Included in the first nine months of 2009 tax benefit is $35 million of tax expense related to the net gain on the sale of EJE, $13 million of tax expense related to the federal excise tax refund and a tax benefit of $11 million related to adjustments of prior year taxes. Income tax receivable The income tax receivable of $206 million at September30, 2009 reflects a portion of the federal income tax refund that we expect to receive in 2010 as a result of carrying back our expected 2009 losses to prior years. Deferred taxes As of September30, 2009, the net domestic deferred tax asset was $767 million compared to $802 million at December31, 2008. A substantial amount of U. S. Steels domestic deferred tax assets relates to employee benefits that will become deductible for tax purposes over an extended period of time as cash contributions are made to employee benefit plans and payments are made to retirees. As a result of our cumulative historical earnings, we continue to believe it is more likely than not that the net domestic deferred tax asset will be realized. As of September30, 2009, the net foreign deferred tax asset was $107 million, net of an established valuation allowance of $521 million. As of December31, 2008, the net foreign deferred tax asset was $32 million, net of an established valuation allowance of $281 million. Net foreign deferred tax assets will fluctuate as the value of the U.S. dollar changes with respect to the euro, the Canadian dollar and the Serbian dinar. A full valuation allowance is provided for the Canadian deferred tax assets due to the absence of positive evidence at USSC to support the realizability of the deferred tax assets. A full valuation allowance is provided for Serbian deferred tax assets because current projected investment tax credits, which must be used before net operating losses and credit carryforwards, are more than sufficient to offset future tax liabilities. If USSC and USSS generate sufficient income, the valuation allowance of $436 million for Canadian deferred tax assets and $74 million for Serbian deferred tax assets as of September30, 2009, would be partially or fully reversed at such time that it is more likely than not that the company will realize the deferred tax assets. In accordance with the guidance found in ASC Topic 805 on business combinations, any reversals of these amounts will result in a decrease to tax expense. Unrecognized tax benefits The total amount of unrecognized tax benefits was $91 million and $99 million as of September30, 2009 and December31, 2008, respectively. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $78 million and $83 million as of September30, 2009 and December31, 2008, respectively. Unrecognized tax benefits are the differences between a tax position taken, o |
13.Common Shares and Income Per
13.Common Shares and Income Per Common Share | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
13.Common Shares and Income Per Common Share | 13. Common Shares and Income Per Common Share Common Stock Issued On May4, 2009, U. S. Steel issued 27,140,000 shares of common stock (par value of $1 per share) at a price of $25.50 per share. The underwriting discount and third-party expenses related to the issuance of the common stock of $31 million was recorded as a decrease to additional paid-in capital, resulting in net proceeds of $661 million. Based on the initial conversion rate, our 2014 Senior Convertible Notes (see Note 16), are convertible into 27,058,781 shares of U.S.Steel common stock. However, we reserved 33,824,000 shares, which is the maximum amount that could be issued upon conversion. Common Stock Repurchase Program In the fourth quarter of 2008, U. S. Steel suspended the previously approved Common Stock Repurchase Program. During the third quarter and first nine months of 2008, 1,129,900 shares and 1,754,900 shares of common stock were repurchased for $129 million and $214 million, respectively. Net (Loss) Income Per Share Attributable to United States Steel Corporation Shareholders Basic net income or loss per common share is based on the weighted average number of common shares outstanding during the quarter. Diluted net income per common share assumes the exercise of stock options and the vesting of restricted stock, restricted stock units, performance shares and the conversion of convertible notes (under the if-converted method), provided in each case the effect is dilutive. Due to the net loss position for the third quarter and nine months ended September30, 2009, no securities were included in the computation of diluted net loss per common share because the effect would be antidilutive. Securities granted under our 2005 Stock Incentive Plan represented 3,139,700 potentially dilutive shares for the three and nine months ended September30, 2009. Securities convertible under our 2014 Senior Convertible Notes represented 27,058,781 potentially dilutive shares for the three and nine months ended September30, 2009. Securities granted under our 2005 Stock Incentive Plan representing 355,682 and 354,682 potentially dilutive shares for the three and nine months ended September30, 2008, respectively, were not included in the computation of diluted net income per common share because their effect would have been anti-dilutive. The computations for basic and diluted earnings per common share from continuing operations are as follows: ThreeMonthsEnded September30, NineMonthsEnded September30, (Dollars in millions, except per share amounts) 2009 2008 2009 2008 Net (loss) income attributable to United States Steel Corporation shareholders $ (303 ) $ 919 $ (1,134 ) $ 1,822 Plus income effect of assumed conversion-interest on convertible notes - - - - Net (Loss) income after assumed conversion $ (303 ) $ 919 $ (1,134 ) $ 1,822 Weighted-average shares outstanding (in thousands): Basic 143,363 117,169 131,466 1 |
14.Inventories
14.Inventories | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
14.Inventories | 14. Inventories Inventories are carried at the lower of cost or market on a worldwide basis. The first-in, first-out method is the predominant method of inventory costing in Europe and Canada. The last-in, first-out (LIFO) method is the predominant method of inventory costing in the United States. At September30, 2009 and December31, 2008, the LIFO method accounted for 43 percent and 39percent of total inventory values, respectively. (In millions) September30, 2009 December31, 2008 Raw materials $ 726 $ 1,322 Semi-finished products 525 552 Finished products 294 518 Supplies and sundry items 132 100 Total $ 1,677 $ 2,492 Current acquisition costs were estimated to exceed these inventory values by $1.1 billion at September30, 2009 and December31, 2008. Cost of sales was reduced by $33million and increased by $12 million in the third quarters of 2009 and 2008, respectively, as a result of liquidations of LIFO inventories. Cost of sales was reduced by $103 million and $20million in the first nine months of 2009 and 2008, respectively, as a result of liquidations of LIFO inventories. During the nine months ended September30, 2009, we recorded lower of cost or market (LCM) related charges totaling approximately $155 million. No LCM adjustment was recorded in the nine months ended September30, 2008. Inventory includes $102 million and $96million of land held for residential or commercial development as of September30, 2009 and December31, 2008, respectively. U. S. Steel has coke swap agreements with other steel manufacturers designed to reduce transportation costs. U. S. Steel shipped approximately 25,000 tons and received approximately 28,000 tons of coke under swap agreements during the first nine months of 2009. U. S. Steel shipped approximately 820,000 tons and received approximately 730,000 tons of coke under the swap agreements during the first nine months of 2008. U. S. Steel also has iron ore pellet swap agreements with an iron ore mining and processing company to obtain iron ore pellets that meet U. S. Steels specifications. U. S. Steel shipped and received approximately 731,000 tons of iron ore pellets during the first nine months of 2009. U.S.Steel shipped approximately 1,500,000 tons and received approximately 1,728,000 tons of iron ore pellets during the first nine months of 2008. The coke and iron ore pellet swaps are recorded at cost as nonmonetary transactions. There was no income statement impact related to these swaps in either 2009 or 2008. |
15.Derivative Instruments
15.Derivative Instruments | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
15.Derivative Instruments | 15. Derivative Instruments U. S. Steel is exposed to foreign currency exchange rate risks as a result of our European and Canadian operations. USSEs revenues are primarily in euros and costs are primarily in U.S.dollars, euros and Serbian dinars. Prior to Slovakias entry into the Eurozone as of January1, 2009, the USSE segment also had foreign currency exchange rate risks related to the Slovak koruna. USSCs revenues and costs are denominated in both Canadian and U.S. dollars. In addition, the acquisition of USSC was funded both from the United States and through the reinvestment of undistributed earnings from USSE, creating intercompany monetary assets and liabilities in currencies other than the functional currency of the entities involved, which can impact income when remeasured at the end of each quarter. An $828 million U.S. dollar-denominated intercompany loan (the Intercompany Loan) from a U.S. subsidiary to a European subsidiary was the primary exposure at September30, 2009. U. S. Steel holds or purchases derivative financial instruments for purposes other than trading to mitigate foreign currency exchange rate risk. U. S. Steel uses euro forward sales contracts with maturities no longer than 18 months to exchange euros for U.S. dollars to manage our exposure to foreign currency rate fluctuations. The gains and losses recognized on these euro forward sales contracts may partially offset gains and losses recognized on the Intercompany Loan. As of September30, 2009, U. S. Steel held euro forward sales contracts with a total notional value of approximately $195 million. We mitigate the risk of concentration of counterparty credit risk by purchasing our forward sales contracts from several counterparties. Derivative instruments are required to be recognized at fair value in the balance sheet. U. S. Steel has not elected to designate these forward contracts as hedges. Therefore, changes in the fair value of the forward contracts are recognized immediately in the results of operations. Additionally, we routinely enter into fixed-price forward physical purchase contracts to partially manage our exposure to price risk related to natural gas purchases used in the production process. Historically, these forward physical purchase contracts have qualified for the normal purchases and normal sales exemption described in ASC Topic 815. However, due to reduced natural gas consumption, we have net settled some of our excess natural gas purchase contracts for certain facilities. Therefore, some of the remaining contracts for natural gas at those facilities no longer meet the exemption criteria and are therefore subject to mark-to-market accounting. As of September30, 2009, U. S. Steel held commodity contracts for natural gas with a total notional value of approximately $34 million that are subject to mark-to-market accounting. As of September30, 2008, all contracts qualified for the normal purchase normal sales exemption described in ASC Topic 815 and were not subject to mark-to-market accounting. The following summarizes the location and amounts of the fair values and gains or losses related to derivatives included in U. S. |
16.Debt
16.Debt | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
16.Debt | 16. Debt (In millions) Interest Rates% Maturity September30, 2009 December31, 2008 2037 Senior Notes 6.65 2037 $ 350 $ 350 2018 Senior Notes 7.00 2018 500 500 2017 Senior Notes 6.05 2017 450 450 2014 Senior Convertible Notes 4.00 2014 863 - 2013 Senior Notes 5.65 2013 300 300 Five-year Term Loan Variable 20092012 - 475 Three-year Term Loan Variable 20092010 - 180 Province Note (C$150 million) 1.00 2015 138 122 Environmental Revenue Bonds 4.756.25 20112016 458 458 Fairfield Caster Lease 20092012 29 37 Other capital leases and all other obligations 20092014 31 35 Credit Facility, $750 million Variable 2012 - - USSK Revolver, 200million Variable 2011 293 282 USSK credit facilities, 60million ($88 and $85 million) Variable 20092012 - - USSS credit facility, 50 ($73 and $70million) Variable 2010 - - Total 3,412 3,189 Less Province Note fair value adjustment 41 38 Less unamortized discount 6 6 Less short-term debt and long-term debt due within one year 19 81 Long-term debt $ 3,346 $ 3,064 Issuance of Senior Convertible Notes On May4, 2009, U. S. Steel issued $863 million of 4.00% Senior Convertible Notes (the 2014 Senior Convertible Notes) due May15, 2014. U. S. Steel received net proceeds from the offering of $836 million after fees of $27 million related to the underwriting discount and third party expenses. The fees for the issuance of the 2014 Senior Convertible Notes will be amortized to interest expense over their five-year term. The 2014 Senior Convertible Notes are senior and unsecured obligations that rank equally with U.S. Steels other existing and future senior and unsecured indebtedness. Interest on the 2014 Senior Convertible Notes is payable semi-annually on May15th and November15th of each year, beginning on November15, 2009. If an event of default regarding the 2014 Senior Convertible Notes should occur and be continuing, either the trustee or the holders of not less than 25% in the principal amount of outstanding 2014 Senior Convertible Notes may declare the 2014 Senior Convertible Notes immediately due and payable. The 2014 Senior Convertible Notes were issued under U. S. Steels shelf registration statement and are not listed on any national securities exchange. U. S. Steel may not redeem the 2014 Senior Convertible Notes prior to their maturity date. Holders may convert their 2014 Senior Convertible Notes into shares of U. S. Steel common stock at their option at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date of May15, 2014. The initial conversion rate for the 2014 Senior Convertible Notes is 31.3725 shares of U. S. Steel common stock per $1,000 principal amount of 2014 Senior Convertible Notes, equivalent to an initial conversion |
17.Asset Retirement Obligations
17.Asset Retirement Obligations | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
17.Asset Retirement Obligations | 17. Asset Retirement Obligations U. S. Steels asset retirement obligations primarily relate to mine and landfill closure and post-closure costs. The following table reflects changes in the carrying values of asset retirement obligations: (In millions) September30, 2009 December31, 2008 Balance at beginning of year $ 48 $ 40 Additional obligations incurred - 4 Obligations settled (3 ) - Revisions in estimated closure costs - (1 ) Foreign currency translation effects 1 2 Accretion expense 2 3 Balance at end of period $ 48 $ 48 Certain asset retirement obligations related to disposal costs of certain fixed assets at our steel facilities have not been recorded because they have an indeterminate settlement date. These asset retirement obligations will be initially recognized in the period in which sufficient information exists to estimate their fair value. |
18.2008 Collective Bargaining A
18.2008 Collective Bargaining Agreements | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
18.2008 Collective Bargaining Agreements | 18. 2008 Collective Bargaining Agreements In 2008, U. S. Steel and its U. S. Steel Tubular Products, Inc. subsidiary reached new collective bargaining agreements with the United Steelworkers (USW), which cover approximately 16,900 employees at our flat-rolled, tubular, coke-making and iron ore operations in the United States (the 2008 CBAs). The 2008 CBAs were ratified by the USW membership in September 2008 and expire on September1, 2012. The 2008 CBAs were effective September1, 2008, contain no-strike provisions and resulted in wage increases ranging from $0.65 to $1.00 per hour as of the effective date. Each subsequent September1 thereafter, employees will receive a four percent wage increase. The 2008 CBAs also provide for pension and other benefit enhancements for both current employees and retirees. The 2008 CBAs also require U. S. Steel to make annual $75 million contributions during the contract period to a restricted account within our trust for retiree health care and life insurance. In April 2009, we reached agreement with the USW to defer some of these contributions until 2012 and 2013. See Note 7 for further details. Also, effective January1, 2009, profit sharing includes income from operations from Texas Operations. At the same time the profit sharing formula has been modified such that at certain higher levels of income from operations, profit sharing payments will be capped and any excess amounts will be contributed to our trust to fund retiree health care and life insurance benefits for USW retirees. |
19.Variable Interest Entities
19.Variable Interest Entities | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
19.Variable Interest Entities | 19. Variable Interest Entities In accordance with ASC Topic 810, on consolidation, U. S. Steel consolidates the following entities: Blackbird Acquisition Inc. Blackbird Acquisition Inc. (Blackbird) is an entity established to facilitate the purchase and sale of certain fixed assets. U.S.Steel has no ownership interest in Blackbird; however, because the entity was established to conduct substantially all of its activities on behalf of U. S. Steel and does not have sufficient equity investment at risk to finance its activities without additional subordinated financial support from U. S. Steel, U. S. Steel is considered to be the primary beneficiary. At September30, 2009 and December31, 2008, there were no assets or liabilities consolidated through Blackbird. Daniel Ross Bridge, LLC Daniel Ross Bridge, LLC (DRB) was established for the development of a 1,600 acre master-planned community in Hoover, Alabama. DRB manages the development and marketing of the property. At September30, 2009, DRB was financed primarily through a secured, non-recourse lot development loan of approximately $1 million. The creditors of DRB have no recourse to the general credit of U. S. Steel. The majority of the expected returns flow to U. S. Steel; therefore, U.S. Steel is the primary beneficiary of DRB. The consolidation of DRB had an insignificant effect on U. S. Steels results from operations for the quarters and nine month periods ended September30, 2009 and 2008. The assets of DRB consolidated by U. S. Steel totaled $13 million at September30, 2009 and December31, 2008. The assets are primarily comprised of inventory of $9 million as of September30, 2009 and December31, 2008. Total liabilities of DRB consolidated by U. S. Steel totaled $3 million at September30, 2009 and December31, 2008. The liabilities of DRB consolidated by U. S. Steel are primarily comprised of accounts payable and accrued development costs of $2 million as of September30, 2009 and December31, 2008. Gateway Energy Coke Company, LLC In the first quarter 2008, U. S. Steel entered into a coke supply agreement with Gateway Energy Coke Company, LLC (Gateway), a wholly owned subsidiary of SunCoke Energy, Inc. Gateway has constructed a heat recovery coke plant with an expected annual capacity of 651,000 tons of coke at U. S. Steels Granite City Works that began operations in the fourth quarter of 2009. U. S. Steel has no ownership interest in Gateway; however, because U. S. Steel is the primary beneficiary of Gateway, U. S. Steel consolidates Gateway in its financial results. The primary beneficiary designation was determined because U. S. Steel has a 15-year arrangement to purchase coke. Gateway is obligated to supply 90 percent to 105 percent of the expected annual capacity of the heat recovery coke plant, and U. S. Steel is obligated to purchase the coke from Gateway at the contract price. After January1, 2010, a maximum default payment of approximately $285 million would apply if U. S. Steel terminates the agreement. At September30, 2009 and December31, 2008, Gateway had added approximately $295 million and $162 million, respectively, in assets to our consol |
20.Sale of Accounts Receivable
20.Sale of Accounts Receivable | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
20.Sale of Accounts Receivable | 20. Sale of Accounts Receivable U. S. Steel has a Receivables Purchase Agreement under which trade accounts receivable are sold, on a daily basis without recourse, to U. S. Steel Receivables, LLC (USSR), a wholly owned, bankruptcy-remote, special purpose entity used only for the securitization program. USSR can then sell senior undivided interests in up to $500 million of the receivables to certain third-party commercial paper conduits for cash, while maintaining a subordinated undivided interest in a portion of the receivables. U. S. Steel has agreed to continue servicing the sold receivables at market rates. Because U. S. Steel receives adequate compensation for these services, no servicing asset or liability is recorded. In June 2009, U. S. Steel entered into agreements which amended the Receivables Purchase Agreement. These agreements (a) revised pricing, increased reserve factors and percentages, (b)added a new termination event if there is a change of control of U. S. Steel, (c) changed the definition of Eligible Receivables, (d) changed certain performance triggers and (e) made other conforming and clarifying changes. The amended Receivables Purchase Agreement expires on September24, 2010. Sales of accounts receivable are reflected as a reduction of receivables in the balance sheet and the proceeds and repurchases related to the securitization program are included in cash flows from operating activities in the statement of cash flows. Generally, the facility provides that as payments are collected from the sold accounts receivables, USSR may elect to have the conduits reinvest the proceeds in new eligible accounts receivable. At September30, 2009 and December31, 2008, $413 million and $500 million, respectively, of eligible accounts receivable could have been sold under this facility. The net book value of U.S.Steels retained interest in the receivables represents the best estimate of the fair market value due to the short-term nature of the receivables. The retained interest in the receivables is recorded net of the allowance for bad debts, which has historically not been significant. USSR pays the conduits a discount based on the conduits borrowing costs plus incremental fees. We incurred insignificant costs for the three and nine months ended September30, 2009 and $1million and $2 million for the three and nine months ended September30, 2008, respectively, relating to fees on the Receivables Purchase Agreement. These costs are included in other financial costs in the statement of operations. The table below summarizes cash flows related to the program: NineMonthsEnded September30, (In millions) 2009 2008 Proceeds from: Collections reinvested $ - $ 7,064 The table below summarizes the trade receivables for USSR: (In millions) September30, 2009 December31, 2008 Balance of accounts receivable net, purchased by USSR $ 769 $ 1,030 Revolving interest sold to conduits - - Accounts receivable net, included in the accounts receivable balance on the balance sheet of U. S. Steel $ 769 $ 1,030 The f |
21.Fair Value of Financial Inst
21.Fair Value of Financial Instruments | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
21.Fair Value of Financial Instruments | 21. Fair Value of Financial Instruments Fair value of the financial instruments 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. The following table summarizes financial instruments, excluding derivative financial instruments disclosed in Note15, by individual balance sheet account. U.S.Steels financial instruments at September30,2009 and December31, 2008 were: September30,2009 December31,2008 (In millions) Fair Value Carrying Amount Fair Value Carrying Amount Financial assets: Cash and cash equivalents $ 1,543 $ 1,543 $ 724 $ 724 Receivables 1,502 1,502 2,106 2,106 Receivables from related parties 136 136 182 182 Income Tax Receivable 206 206 - - Investments and long-term receivables (a) 13 13 23 23 Total financial assets $ 3,400 $ 3,400 $ 3,035 $ 3,035 Financial liabilities: Accounts payable $ 1,408 $ 1,408 $ 1,440 $ 1,440 Accounts payable to related parties 82 82 43 43 Accrued interest 51 51 33 33 Debt (b) 3,724 3,308 2,650 3,075 Total financial liabilities $ 5,265 $ 4,849 $ 4,166 $ 4,591 (a) Excludes equity method investments. (b) Excludes capital lease obligations. The fair value of financial instruments classified as current assets or liabilities approximates the carrying value due to the short-term maturity of the instruments. The fair value of investments and long-term receivables was based on discounted cash flows. U.S.Steel is subject to market risk and liquidity risk related to its investments; however, these risks are not readily quantifiable. The fair value of long-term debt instruments was based on the yield on public debt where available or current borrowing rates available for financings with similar terms and maturities. Financial guarantees are U.S.Steels only unrecognized financial instrument. For details relating to financial guarantees see Note25. |
22.Comprehensive Income
22.Comprehensive Income (Loss) | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
22.Comprehensive Income (Loss) | 22. Comprehensive Income (Loss) The following table reflects the components of comprehensive income (loss): Three Months Ended September30, Nine Months Ended September30, (In millions) 2009 2008 2009 2008 Net (loss) income $ (307 ) $ 942 $ (1,138 ) $ 1,856 Changes in foreign currency translation adjustments, net of tax 148 (244 ) 280 (192 ) Changes in employee benefit accounts, net of tax 28 (750 ) 68 (710 ) Comprehensive (loss) income $ (131 ) $ (52 ) $ (790 ) $ 954 |
23.Statement of Changes in Stoc
23.Statement of Changes in Stockholders' Equity | |
1/1/2009 - 9/30/2009
USD / shares | |
Notes to Financial Statements [Abstract] | |
23.Statement of Changes in Stockholders' Equity | 23. Statement of Changes in Stockholders Equity The following table reflects the reconciliation at the beginning and the end of the period of the carrying amount of total equity, equity attributable to United States Steel Corporation and equity attributable to the noncontrolling interests: UNITED STATES STEEL CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) Nine Months Ended September30, 2009 Total Comprehensive Income Retained Earnings Accumulated Other Comprehensive Income Common Stock Treasury Stock Paid-in Capital Non- Controlling Interest Balance at beginning of year $ 5,059 $ 5,666 $ (3,269 ) $ 124 $ (612 ) $ 2,986 $ 164 Comprehensive income: Net Loss (1,138 ) (1,138 ) (1,134 ) (4 ) Other comprehensive income (loss), net of tax: Pension and Other Benefit Adjustments 68 68 68 Currency Translation Adjustment 280 280 276 4 Employee stock plans 26 4 22 Common Stock Issued 667 27 640 Dividends paid on common stock (49 ) (49 ) Partner Contributions 127 127 Other (1 ) (1 ) Balance at September30, 2009 $ 5,039 $ (790 ) $ 4,483 $ (2,925 ) $ 151 $ (608 ) $ 3,648 $ 290 NineMonthsEnded September30,2008 Total Comprehensive Income Retained Earnings AccumulatedOther Comprehensive Income Common Stock Treasury Stock Paid-in Capital Non- Controlling Interest Balance at beginning of year $ 5,619 $ 3,683 $ (836 ) $ 124 $ (395 ) $ 2,955 $ 88 Comprehensive income: Net Income 1,856 1,856 1,822 34 Other comprehensive income (loss), net of tax: Pension and Other Benefit Adjustments (710 ) (710 ) (710 ) Currency Translation Adjustment (192 ) (192 ) (192 ) Employee stock plans 37 10 27 Common stock issued/repurchased (214 ) (214 ) Dividends paid on common stock (94 ) (94 ) Partner Contributions 59 59 Purchase Price Adjustment (25 ) (25 ) Other (1 ) (1 ) Balance at September30, 2008 $ 6,335 $ 95 |
24.Related Party Transactions
24.Related Party Transactions | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
24.Related Party Transactions | 24. Related Party Transactions Net sales to related parties and receivables from related parties primarily reflect sales of steel products, transportation services and fees for providing various management and other support services to equity and other related parties. Generally, transactions are conducted under long-term market-based contractual arrangements. Related party sales and service transactions were $246million and $373million for the quarters ended September30, 2009 and 2008, respectively and $527 million and $996 million for the nine months ended September30, 2009 and 2008, respectively. Sales to related parties were conducted under terms comparable to those with unrelated parties. Purchases from equity investees for outside processing services amounted to $8 million and $227million for the quarters ended September30, 2009 and 2008, respectively and $79 million and $312 million for the nine months ended September30, 2009 and 2008, respectively. Purchases of taconite pellets from equity investees amounted to $100 million and $70 million for the quarters ended September30, 2009 and 2008, respectively and $152 million and $138 million for the nine months ended September30, 2009 and 2008. Accounts payable to related parties include balances due to PRO-TEC Coating Company (PRO-TEC) of $68 million and $42 million at September30, 2009 and December31, 2008, respectively, for invoicing and receivables collection services provided by U. S. Steel. U. S. Steel, as PRO-TECs 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 equity investees totaled $14 million and $1 million at September30, 2009 and December31, 2008, respectively. |
25.Contingencies and Commitment
25.Contingencies and Commitments | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
25.Contingencies and Commitments | 25. Contingencies and Commitments U.S.Steel is the subject of, or party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment. Certain of these matters are discussed below. The ultimate resolution of these contingencies could, individually or in the aggregate, be material to the consolidated financial statements. However, management believes that U.S.Steel will remain a viable and competitive enterprise even though it is possible that these contingencies could be resolved unfavorably. U.S.Steel accrues for estimated costs related to existing lawsuits, claims and proceedings when it is probable that it will incur these costs in the future. Asbestos matters As of September30, 2009, U.S. Steel was a defendant in approximately 465 active cases involving approximately 3,025 plaintiffs. Many of these cases involve multiple defendants (typically from fifty to more than one hundred). Approximately 2,550, or about 84percent, of these claims are currently pending in jurisdictions which permit filings with massive numbers of plaintiffs. Based upon U.S.Steels experience in such cases, it believes that the actual number of plaintiffs who ultimately assert claims against U.S.Steel will likely be a small fraction of the total number of plaintiffs. During the nine months ended September30, 2009, U.S.Steel paid approximately $7 million in settlements. These settlements and other dispositions resolved approximately 180 claims. New case filings in the first nine months of 2009 added approximately 155 claims. At December31, 2008, U. S. Steel was a defendant in approximately 450 active cases involving approximately 3,050 plaintiffs. During 2008, U. S. Steel paid approximately $13 million in settlements. These settlements and other dispositions resolved approximately 400 claims. New case filings in the year ended December31, 2008 added approximately 450 claims. Most claims filed in 2008 and 2009 involved individual or small groups of claimants as many jurisdictions no longer permit the filing of mass complaints. Historically, these claims against U.S.Steel fall into three major groups: (1)claims made by persons who allegedly were exposed to asbestos at U.S.Steel facilities (referred to as premises claims); (2)claims made by industrial workers allegedly exposed to products manufactured by U.S.Steel; and (3)claims made under certain federal and general maritime laws by employees of former operations of U. S. Steel. In general, the only insurance available to U. S. Steel with respect to asbestos claims is excess casualty insurance, which has multi-million dollar retentions. To date, U.S.Steel has received minimal payments under these policies relating to asbestos claims. These asbestos cases allege a variety of respiratory and other diseases based on alleged exposure to asbestos. U.S.Steel is currently a defendant in cases in which a total of approximately 195 plaintiffs allege that they are suffering from mesothelioma. The potential for damages against defendants may be greater in cases in which the plaintiffs can prove meso |
26.Subsequent Event
26.Subsequent Event | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
26.Subsequent Event | 26. Subsequent Event On October9, 2009, USSC entered into an agreement with an unaffiliated third party providing for the sale of USSCs 44.6 percent interest in the Wabush Mines Joint Venture (Wabush) for approximately $53 million. Wabush owns and operates iron ore mining and pellet facilities in Newfoundland and Labrador and Quebec, Canada. On October12, 2009, Cliffs Natural Resources Inc., one of the other owners of Wabush, exercised its right of first refusal and is now obligated to purchase USSCs interest in Wabush. Completion of the transaction is subject to customary closing conditions, including regulatory approvals and third party consents, and is scheduled to occur in the fourth quarter of 2009. |
Document Information
Document Information | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2009-09-30 |
Entity Information
Entity Information (USD $) | ||
9 Months Ended
Sep. 30, 2009 | Oct. 23, 2009
| |
Entity [Text Block] | ||
Trading Symbol | X | |
Entity Registrant Name | UNITED STATES STEEL CORP | |
Entity Central Index Key | 0001163302 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 143,350,425 |