United States Steel (X) 10-K 24 Feb 10 2009 FY Annual report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net sales:
Net sales	$10,203	$22,466	$15,701
Net sales to related parties (Note 26)	845	1,288	1,172
Total	11,048	23,754	16,873
Operating expenses (income):
Cost of sales (excludes items shown below)	11,597	19,723	14,633
Selling, general and administrative expenses	618	625	589
Depreciation, depletion and amortization (Notes 1 and 13)	661	605	506
Loss (income) from investees	29	(93)	(26)
Net gain on disposals of assets (Notes 6 and 28)	(124)	(17)	(23)
Other income, net (Note 5)	(49)	(158)	(19)
Total	12,732	20,685	15,660
(Loss) income from operations	(1,684)	3,069	1,213
Interest expense	159	169	152
Interest income	(10)	(14)	(79)
Other financial costs (income) (Note 7)	12	(93)	32
Net interest and other financial costs	161	62	105
(Loss) income before income taxes and noncontrolling interests	(1,845)	3,007	1,108
Income tax (benefit) provision (Note 10)	(439)	853	218
Net (loss) income	(1,406)	2,154	890
Less: Net (loss) income attributable to noncontrolling interests	(5)	42	11
Net (loss) income attributable to United States Steel Corporation	($1,401)	$2,112	$879
Net (loss) income per share attributable to United States Steel Corporation shareholders:
- Basic	-10.42	18.04	7.44
- Diluted	-10.42	17.96	7.4

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$1,218	$724
Receivables, less allowance of $39 and $52 (Note 19)	1,423	2,106
Receivables from related parties (Note 26)	144	182
Inventories (Note 9)	1,679	2,492
Income Tax Receivable (Note 10)	214	0
Deferred income tax benefits (Note 10)	299	177
Other current assets	38	51
Total current assets	5,015	5,732
Investments and long-term receivables, less allowance of $22 and $10 (Note 11)	695	695
Property, plant and equipment, net (Note 12)	6,820	6,676
Intangibles-net (Note 13)	281	282
Goodwill (Note 13)	1,725	1,609
Assets held for sale (Note 6)	33	211
Deferred income tax benefits (Note 10)	535	666
Other noncurrent assets	318	216
Total assets	15,422	16,087
Current liabilities:
Accounts payable	1,396	1,440
Accounts payable to related parties (Note 26)	61	43
Bank checks outstanding	23	11
Payroll and benefits payable	854	967
Accrued taxes (Note 10)	89	203
Accrued interest	32	33
Short-term debt and current maturities of long-term debt (Note 16)	19	81
Total current liabilities	2,474	2,778
Long-term debt, less unamortized discount (Note 16)	3,345	3,064
Employee benefits (Note 20)	4,143	4,767
Deferred credits and other noncurrent liabilities	481	419
Total liabilities	10,443	11,028
Stockholders' Equity
Common stock issued-150,925,911 shares and 123,785,911 shares (par value $1 per share, authorized 400,000,000 shares) (Note 22)	151	124
Treasury stock, at cost (7,575,724 shares and 7,587,322 shares)	(608)	(612)
Additional paid-in capital	3,652	2,986
Retained earnings	4,209	5,666
Accumulated other comprehensive loss	(2,728)	(3,269)
Total United States Steel Corporation stockholders' equity	4,676	4,895
Noncontrolling interests	303	164
Total liabilities and stockholders' equity	$15,422	$16,087

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Receivables, allowance	$39	$52
Investments and long-term receivables, allowance	$22	$10
Common stock, issued	150,925,911	123,785,911
Common stock, par value	$1	$1
Common stock, authorized	400,000,000	400,000,000
Treasury stock, shares	7,575,724	7,587,322

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating activities:
Net (loss) income	($1,406)	$2,154	$890
Adjustments to reconcile net cash (used in) provided by operating activities:
Depreciation, depletion and amortization (Notes 1 and 13)	661	605	506
Provision for doubtful accounts	8	24	(14)
Pensions and other postretirement benefits	(203)	(502)	(157)
Deferred income taxes	(156)	366	182
Noncash other income (Note 5)	0	(150)	0
Net gain on disposals of assets (Notes 6 and 28)	(124)	(17)	(23)
Distributions received, net of equity investees income	41	(29)	24
Changes in:
Current receivables -sold	0	485	440
-repurchased	0	(635)	(290)
-operating turnover	735	(140)	72
Inventories	867	(376)	305
Current accounts payable and accrued expenses	(347)	81	(440)
Bank checks outstanding	12	(42)	(13)
Foreign currency translation of operating items	(148)	(117)	259
All other, net	(1)	(49)	(9)
Net cash (used in) provided by operating activities	(61)	1,658	1,732
Investing activities:
Capital expenditures	(472)	(735)	(692)
Capital expenditures - variable interest entities	(147)	(161)	0
Acquisition of noncontrolling interests of Clairton 1314B Partnership, L.P.	0	(104)	0
Acquisition of noncontrolling interests of Z-Line Company	(24)	0	0
Acquisition of pickle lines	0	(36)	0
Acquisition of Lone Star Technologies, Inc.	0	0	(1,993)
Acquisition of Stelco Inc.	0	(1)	(2,036)
Disposal of assets	366	24	42
Restricted cash, net	(59)	2	13
Investments, net	(38)	(21)	(9)
Net cash used in investing activities	(374)	(1,032)	(4,675)
Financing activities:
Revolving credit facilities -borrowings	0	359	0
-repayments	0	(44)	0
Issuance of long-term debt, net of refinancing costs	966	0	2,976
Repayment of long-term debt	(800)	(380)	(873)
Common stock issued	667	5	18
Common stock repurchased	0	(227)	(117)
Distributions from (to) noncontrolling interests	161	102	(14)
Dividends paid	(56)	(129)	(95)
Excess tax benefits from stock-based compensation	0	9	9
Net cash provided by (used in) financing activities	938	(305)	1,904
Effect of exchange rate changes on cash	(9)	2	18
Net increase (decrease) in cash and cash equivalents	494	323	(1,021)
Cash and cash equivalents at beginning of year	724	401	1,422
Cash and cash equivalents at end of year	$1,218	$724	$401

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions, except Share data in Thousands									Total stockholders' equity		Total
Balance at beginning of year (in shares) at Dec. 31, 2006	123,786	(5,241)
Balance at beginning of year at Dec. 31, 2006	$124	($317)	$2,942	$2,902	($1,555)		$269			$38
Net (loss) income				879						11	890
Changes during year, net of taxes					233	[1]
Changes during year							227
Common stock repurchased		(117)
Common stock issued	0		0
Partner contributions (distributions)										(14)
Dividends on common stock				(95)
Changes during year, equity investee net of taxes					(10)
Common stock repurchased (in shares)		(1,190)
Common stock issued (in shares)	0
Employee stock plans			13
Acquisition of noncontrolling interest										0
Cumulative effect of FASB Interpretation No. 48 adoption				(3)
Common stock reissued for employee/non-employee director stock plans		39
Acquisition of business with noncontrolling interest										53
Common stock reissued for employee/non-employee director stock plans (in shares)		640
Purchase price adjustment										0
Currency translation adjustment										0
Other										0
Balance at end of year at Dec. 31, 2007	124	(395)	2,955	3,683	(1,332)		496	(836)	5,531	88
Balance at end of year (in shares) at Dec. 31, 2007	123,786	(5,791)
Net (loss) income				2,112						42	2,154
Changes during year, net of taxes					(1,920)	[1]
Changes during year							(505)
Common stock repurchased		(227)
Common stock issued	0		0
Partner contributions (distributions)										102
Dividends on common stock				(129)
Changes during year, equity investee net of taxes					(8)
Common stock repurchased (in shares)		(2,015)
Common stock issued (in shares)	0
Employee stock plans			31
Acquisition of noncontrolling interest										(32)
Cumulative effect of FASB Interpretation No. 48 adoption				0
Common stock reissued for employee/non-employee director stock plans		10
Acquisition of business with noncontrolling interest										0
Common stock reissued for employee/non-employee director stock plans (in shares)		219
Purchase price adjustment										(25)
Currency translation adjustment										(9)
Other										(2)
Balance at end of year at Dec. 31, 2008	124	(612)	2,986	5,666	(3,260)		(9)	(3,269)	4,895	164	4,895
Balance at end of year (in shares) at Dec. 31, 2008	123,786	(7,587)
Net (loss) income				(1,401)						(5)	(1,406)
Changes during year, net of taxes					276	[1]
Changes during year							294
Common stock repurchased		0
Common stock issued	27		640
Partner contributions (distributions)										161
Dividends on common stock				(56)
Changes during year, equity investee net of taxes					(29)
Common stock repurchased (in shares)		0
Common stock issued (in shares)	27,140
Employee stock plans			26
Acquisition of noncontrolling interest										(28)
Cumulative effect of FASB Interpretation No. 48 adoption				0
Common stock reissued for employee/non-employee director stock plans		4
Acquisition of business with noncontrolling interest										0
Common stock reissued for employee/non-employee director stock plans (in shares)		11
Purchase price adjustment										0
Currency translation adjustment										5
Other										6
Balance at end of year at Dec. 31, 2009	$151	($608)	$3,652	$4,209	($3,013)		$285	($2,728)	$4,676	$303	$4,676
Balance at end of year (in shares) at Dec. 31, 2009	150,926	(7,576)
[1]Related income tax (provision) benefit: FAS 158 pension and other benefits adjustments (217 ) 1,110 (166 )

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Related income tax (provision) benefit, FAS 158 pension and other benefits adjustments	($217)	$1,110	($166)

Nature of Business and Signific

Nature of Business and Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Nature of Business and Significant Accounting Policies	1. Nature of Business and Significant Accounting Policies Nature of Business United States Steel Corporation (U. S. Steel or the Company) produces and sells steel mill products, including flat-rolled and tubular products, in North America and Europe. Operations in North America also include transportation services (railroad and barge operations), real estate operations and engineering consulting services. Significant Accounting Policies Principles applied in consolidation These financial statements include the accounts of U. S. Steel and its majority-owned subsidiaries. Additionally, variable interest entities for which U. S. Steel is the primary beneficiary are included in the consolidated financial statements and their impacts are either partially or completely offset by noncontrolling interest. Intercompany accounts, transactions and profits have been eliminated in consolidation. Investments in entities over which U. S. Steel has significant influence are accounted for using the equity method of accounting and are carried at U. S. Steels share of net assets plus loans, advances and our share of earnings less distributions. Differences in the basis of the investment and the underlying net asset value of the investee, if any, are amortized into earnings over the remaining useful life of the associated assets. Income from investees includes U. S. Steels share of income from equity method investments, which is generally recorded a month in arrears, except for significant and unusual items which are recorded in the period of occurrence. Gains or losses from changes in ownership of unconsolidated investees are recognized in the period of change. Intercompany profits and losses on transactions with equity investees have been eliminated in consolidation, subject to lower of cost or market inventory adjustments. U. S. Steel evaluates impairment of its equity method investments whenever circumstances indicate that a decline in value below carrying value is other than temporary. Under these circumstances, we adjust the investment down to its estimated fair value, which then becomes its new carrying value. Investments in companies whose equity has no readily determinable fair value are carried at cost and are periodically reviewed for impairment. Use of estimates Generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at year-end and the reported amounts of revenues and expenses during the year. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment; goodwill and intangible assets; valuation allowances for receivables, inventories and deferred income tax assets and liabilities; environmental liabilities; liabilities for potential tax deficiencies and potential litigation claims and settlements; and assets and obligations related to employee benefits. Actual results could differ materially from the estimates and assumptions used. Sales recognition Sales are recognized when products are shi

New Accounting Standards

New Accounting Standards
	12 Months Ended Dec. 31, 2009 USD / shares
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. The adoption of FAS 167 will result in the deconsolidation of certain of our current variable interest entities, including, Gateway Energy Coke Company, LLC due to the addition of the power criteria in paragraph 14 of FAS 167. In January 2010, the FASB updated ASC Topic 810 Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities to incorporate 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. The adoption of FAS 166 will result in any transactions under our receivables purchase agreementbeing accounted for as secured borrowing transactions as of January1, 2010. In January 2010, the FASB updated ASC Topic 860 Accounting for Transfers of Financial Assets to incorporate FAS 166. See note 19 for further details of our accounts receivable facility.

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Information	3. Segment Information U. S. Steel has three reportable segments: Flat-rolled Products (Flat-rolled), USSE and Tubular Products (Tubular). The results of several operating segments that do not constitute reportable segments are combined and disclosed in the Other Businesses category. The Flat-rolled segment includes the operating results of U. S. Steels North American integrated steel mills and equity investees involved in the production of slabs, rounds, strip mill plates, sheets, tin mill products as well as all iron ore and coke production facilities in the United States and Canada. The steel rounds and a portion of the hot-rolled sheets produced by Flat-rolled are supplied to the Tubular segment. These operations primarily serve North American customers in the service center, conversion, transportation (including automotive), construction, container, and appliance and electrical markets. The USSE segment includes the operating results of USSK, U. S. Steels integrated steel mill and coke production facilities in Slovakia; USSS, U. S. Steels integrated steel mill and other facilities in Serbia; and equity investees located in Europe. USSE primarily serves customers in the European construction, service center, conversion, container, transportation (including automotive), appliance and electrical, and oil, gas and petrochemical markets. USSE produces and sells sheet, slabs, strip mill plate, tin mill products and spiral welded pipe, as well as heating radiators and refractory ceramic materials. The Tubular segment includes the operating results of U. S. Steels tubular production facilities, primarily in the United States, and equity investees in the United States and Brazil. These operations produce and sell seamless and electric resistance welded (ERW) steel casing and tubing (commonly known as oil country tubular goods or OCTG), standard and line pipe and mechanical tubing and primarily serve customers in the oil, gas and petrochemical markets. Other Businesses includes transportation services (railroad and barge operations), real estate operations and engineering consulting services. 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. 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. Segment income from operations does not include net interest and other financial costs, the income tax provision, 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 it is not reviewed by the chief operating decision maker. The accounting principles applied at the operating segment level in determining income from operations are generally

Acquisitions

Acquisitions
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions	4. Acquisitions Z-Line Company As a result of the minority owners exercise of a put option, U. S. Steel acquired the minority owners 40 percent ownership interest in Z-Line Company (Z-Line), a partnership, on December23, 2009 for C$26 million (approximately $24 million). Z-line owned and operated a galvanizing/galvannealing line located within Hamilton Works in Ontario, Canada. The acquisition has been accounted for in accordance with ASC Topic 810, Consolidations. Clairton 1314B Partnership, L.P. On October31, 2008, U. S. Steel acquired the interests in the Clairton 1314B Partnership, L.P. (Clairton 1314B) held by unrelated parties for $104 million, and 1314B was terminated. The acquisition was accounted for in accordance with FAS 141, Business Combinations (FAS 141). U. S. Steel accounted for the purchase price of this acquisition, in excess of the acquired noncontrolling interests, 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 (see Note 5). Pickle Lines On August29, 2008, USSC paid C$38 million (approximately $36 million) to acquire three pickle lines in Nanticoke, Ontario. The acquisition of the pickle lines strengthens USSCs position as a premier supplier of flat-rolled steel products to the North American market. The acquisition was accounted for in accordance with FAS 141. The purchase price was allocated to property, plant and equipment. Stelco Inc. On October31, 2007, U. S. Steel paid $1,237 million to acquire all of the outstanding stock and stock equivalents of Stelco and the company was renamed U. S. Steel Canada Inc. U. S. Steel also paid $785 million to retire substantially all of the outstanding debt of Stelco and made a $34million contribution to Stelcos main pension plans at closing. USSC operates two integrated steel plants in Ontario, Canada and produces a variety of steel products for customers in the automotive, steel service center, and pipe and tubular industries within North America. The acquisition has strengthened U. S. Steels position as a premier supplier of flat- rolled steel products and has provided us with greater flexibility to respond to the requirements of an expanded customer base. It also generated annual, sustainable synergies through sourcing of semi-finished products and the leveraging of best practices. The results of operations of USSC are included in U. S. Steels consolidated statement of operations as of the date of acquisition. USSC is principally being reported as part of U. S. Steels Flat-rolled segment. In connection with the acquisition, U. S. Steel assumed Stelcos pension funding obligations under a pension agreement entered into by Stelco and the Province of Ontario totaling C$545 million. In addition, we committed to the Canadian government to make capital investments through 2012 of at least C$200 million. The total purchase price of $2,037 million reflects the $2,056 million of payments detailed above, net of cash acquired of $32 million, and including direct acquisition costs of $13 million. The purchase price

Other Income

Other Income
	12 Months Ended Dec. 31, 2009 USD / shares
Other Income	5. Other Income Other income for 2009 primarily consists of a refund of $34 million associated with the recovery of black lung excise taxes that were paid on coal export sales from 1990 to 1992. Of the $34 million of cash received, $24 million represents interest. Other income for the year ended December31, 2008 primarily consists of the recognition of a $150 million noncash deferred gain established to address U. S. Steels obligation to fund operating cash shortfalls of Clairton 1314B and to cover certain indemnifications related to the partnership. U. S. Steel was the sole general partner and there were two unaffiliated limited partners of Clairton 1314B. With the acquisition of the remaining interests (see Note 4), the partnership was terminated and we no longer have the related obligation.

Assets Held for Sale

Assets Held for Sale
	12 Months Ended Dec. 31, 2009 USD / shares
Assets Held for Sale	6. Assets Held for Sale As of December31, 2009, U. S. Steel had classified certain assets at Hamilton Works, consisting primarily of property, plant and equipment, as held for sale in accordance with ASC Topic 360 on impairment and disposal of long-lived assets. On January31, 2009, U. S. Steel completed the 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 gain of approximately $97 million, net of a $10 million pension curtailment charge (see Note 20). 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.

Net Interest and Other Financia

Net Interest and Other Financial Costs
	12 Months Ended Dec. 31, 2009 USD / shares
Net Interest and Other Financial Costs	7. Net Interest and Other Financial Costs (In millions) 2009 2008 2007 Interest income: Interest income $ 10 $ 14 $ 52 Interest on deposits for National retiree benefits(a) - - 27 Total interest income 10 14 79 Interest expense and other financial costs: Interest incurred 174 185 129 Less interest capitalized 15 14 7 Net interest incurred 159 171 122 Interest on liability for National retiree benefits(a) - - 27 Interest on tax issues - (2 ) 3 Total interest expense 159 169 152 Foreign currency gains(b) (8 ) (103 ) (4 ) Loss on debt extinguishment - - 26 (c) Financial costs on: Sale of receivables 3 4 4 $750 million Amended Credit Agreement 4 1 - Inventory facility - - 2 Amortization of discounts and deferred financing costs 13 5 4 Total other financial costs (income) 12 (93 ) 32 Net interest and other financial costs $ 161 $ 62 $ 105 (a) Interest related to the short-term investment of funds held to provide assistance for health care costs to certain retirees of National Steel Corporation. This funding obligation ceased in 2007. (b) The functional currency for USSE is the euro and the functional currency for USSC is the C$. Foreign currency net gains are a result of transactions denominated in currencies other than the euro (principally the U.S. dollar, Slovak koruna (prior to July8, 2008) or Serbian dinar or the C$ (principally the U.S. dollar)), respectively. Additionally, foreign currency net gains include the impacts of the remeasurement of a U.S. dollar-denominated intercompany loan to a European subsidiary and impacts of Euro-U.S. dollar derivatives activity. (c) Charge related to the premium and fees paid on the redemption of the 9.75% Senior Notes and the redemption of the Senior Quarterly Income Debt Securities. The Slovak Republic entered into the Eurozone effective January1, 2009. The entry was approved by the European Council on June19, 2008, and the definitive exchange rate of 30.126 Slovak koruna per euro was established on July8, 2008. The setting of the definitive exchange rate significantly reduced the companys exposure to fluctuations between the Slovak koruna and the euro.

Income and Dividends Per Common

Income and Dividends Per Common Share
	12 Months Ended Dec. 31, 2009 USD / shares
Income and Dividends Per Common Share	8. Income and Dividends Per Common Share Basic net income or loss per common share is based on the weighted average number of common shares outstanding during the period. Diluted net income per common share assumes the exercise of stock options and the vesting of restricted stock, restricted stock units and performance awards 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 year ended December31, 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 3,122,034 potentially dilutive shares for the year ended December31, 2009. Securities convertible under our Senior Convertible Notes represented 27,058,719 potentially dilutive shares for the year ended December31, 2009. Securities granted under our 2005 Stock Incentive Plan representing 553,127 and 232,797 shares were outstanding at December31, 2008 and 2007, respectively, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive. (Dollars in millions, except per share amounts) 2009 2008 2007 Net (loss) income attributable to United States Steel Corporation shareholders $ (1,401 ) $ 2,112 $ 879 Plus income effect of assumed conversion-interest on convertible notes - - - Net (loss) income after assumed conversion $ (1,401 ) $ 2,112 $ 879 Weighted-average shares outstanding (in thousands): Basic 134,469 117,102 118,090 Effect of convertible notes - - - Effect of stock options - 351 482 Effect of dilutive restricted stock, performance awards and restricted stock units - 168 243 Adjusted weighted-average shares outstanding, diluted 134,469 117,621 118,815 Basic earnings per common share $ (10.42 ) $ 18.04 $ 7.44 Diluted earnings per common share $ (10.42 ) $ 17.96 $ 7.40 Quarterly dividends on common stock in 2009 were 30 cents per share for the first quarter and five cents per share for the second, third and fourth quarters. Quarterly dividends on common stock in 2008 were 25 cents per share for the first and second quarters and 30 cents per share for the third and fourth quarters. Quarterly dividends on common stock in 2007 were 20 cents per share for each quarter.

Inventories

Inventories
	12 Months Ended Dec. 31, 2009 USD / shares
Inventories	9. Inventories (In millions) December31, 2009 December31, 2008 Raw materials $ 492 $ 1,322 Semi-finished products 741 552 Finished products 336 518 Supplies and sundry items 110 100 Total $ 1,679 $ 2,492 Current acquisition costs were estimated to exceed the above inventory values at December31 by approximately $1.1 billion in both 2009 and 2008. Cost of sales was reduced and income from operations was improved by $135million, $145million and $29 million in 2009, 2008 and 2007, respectively, as a result of liquidations of LIFO inventories. During the year ended December31, 2009 and 2008, we recorded lower of cost or market related charges totaling approximately $165 million and $90 million, respectively. Inventory includes $101 million and $96million of land held for residential/commercial development as of December31,2009 and 2008, respectively. From time to time, U. S. Steel has coke swap agreements with other steel manufacturers designed to reduce transportation costs. U. S. Steel shipped approximately 149,000 tons and received approximately 162,000 tons of coke under the swap agreements during 2009. U. S. Steel shipped approximately 1,000,000 tons and received approximately 936,000 tons of coke under the swap agreements during 2008. U. S. Steel also has iron ore pellet swap agreements with an iron ore mining and processing company to obtain iron ore pellets. U. S. Steel shipped and received approximately 1,015,000 tons and 1,936,000 tons of iron ore pellets during 2009 and 2008, respectively. The coke and iron ore pellet swaps are recorded at cost as nonmonetary transactions. There was no income statement impact related to these swaps.

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes	10. Income Taxes Provisions (benefits) for income taxes 2009 2008 2007 (In millions) Current Deferred Total Current Deferred Total Current Deferred Total Federal $ (277 ) $ (103 ) $ (380 ) $ 385 $ 248 $ 633 $ (23 ) $ 151 $ 128 Stateandlocal (8 ) (53 ) (61 ) 62 34 96 (3 ) 33 30 Foreign 2 - 2 40 84 124 62 (2 ) 60 Total $ (283 ) $ (156 ) $ (439 ) $ 487 $ 366 $ 853 $ 36 $ 182 $ 218 A reconciliation of the federal statutory tax rate of 35 percent to total provisions follows: (In millions) 2009 2008 2007 Statutory rate applied to income (loss) before income taxes $ (646 ) $ 1,052 $ 388 Effects of foreign operations 298 (114 ) (120 ) Noncontrolling interests 2 (15 ) (4 ) Excess percentage depletion (29 ) (79 ) (47 ) State and local income taxes after federal income tax effects (40 ) 62 20 Adjustments of prior years federal income taxes (24 ) (15 ) (1 ) Tax credits (5 ) (20 ) (18 ) Deduction for domestic production activities - (26 ) - Other 5 8 - Total (benefits) provisions $ (439 ) $ 853 $ 218 The effective tax benefit rate for 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. Income tax receivable The income tax receivable of $214 million at December31, 2009 reflects the federal income tax refund that we expect to receive in 2010 as a result of carrying back our 2009 losses to prior years. Unrecognized tax benefits The total amount of unrecognized tax benefits was $106 million, $99 million and $68 million as of December31, 2009, 2008 and 2007, respectively. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $77 million as of December31, 2009. Unrecognized tax benefits are the differences between a tax position taken, or expected to be taken, in a tax return and the benefit recognized for accounting purposes pursuant to the guidance in ASC Topic 740 on income taxes. U. S. Steel records interest related to uncertain tax positions as a part of net interest and other financial costs in the Statement of Operations. Any penalties are recognized as part of selling, general and administrative expenses. As of December31, 2009, 2008 and 2007, U. S. Steel had accrued liabi

Investments and Long-Term Recei

Investments and Long-Term Receivables
	12 Months Ended Dec. 31, 2009 USD / shares
Investments and Long-Term Receivables	11. Investments and Long-Term Receivables December31, (In millions) 2009 2008 Equity method investments $ 668 $ 672 Receivables due after one year, less allowance of $22 and $10 21 18 Other 6 5 Total $ 695 $ 695 Investees accounted for using the equity method include: Investee Country December31,2009 Ownership Acero Prime, S. R. L. de CV Mexico 40 % Apolo Tubulars S.A. Brazil 50 % Arnaud Railway Company(c) Canada 44.6 % Baycoat Canada 50 % Baycoat Limited Canada 50 % Chrome Deposit Corporation UnitedStates 50 % D.C. Chrome Limited Canada 50 % Double Eagle Steel Coating Company United States 50 % Double G Coatings Company L.P. United States 50 % Feralloy Processing Company United States 49 % Hibbing Development Company United States 24.1 % Hibbing Taconite Company(a) United States 14.7 % Knoll Lake Minerals Limited(c) Canada 26 % Leeds Retail Center LLC United States 38 % Northern Land Company Limited(c) Canada 22.3 % PRO-TEC Coating Company United States 50 % Serbian Roll Services Company, d.o.o. Serbia 50 % Strategic Investment Partners I(b) United States 7.4 % Strategic Investment Partners II(b) United States 3.6 % Swan Point Development Company, LLC United States 50 % Tilden Mining Company, LLC(a) United States 15 % United Spiral Pipe, LLC United States 35 % USS-POSCO Industries United States 50 % U. S. Steel Kosice (UK), Limited Great Britain 50 % Wabush Lake Railway Company Ltd.(c) Canada 44.6 % Wabush Mines(c) Canada 44.6 % Worthington Specialty Processing UnitedStates 49 % (a) Hibbing Taconite Company (HTC) is an unincorporated joint venture that is owned, in part, by Hibbing Development Company (HDC), which is accounted for using the equity method. Through HDC we are able to influence the activities of HTC, and as such, its activities are accounted for using the equity method. Tilden Mining Company, LLC is a limited liability company and in accordance with ASC Topic 323 Partnerships and Unincorporated Joint Ventures, (ASC 323) its financial activities are accounted for using the equity method. (b) Strategic Investment Partners I and II are limited partnerships and in accordance with ASC 323, the financial activities are acccounted for using the equity method. (c) Represents Wabush Mines Joint Venture and related entities which were sold on February1, 2010. Dividends and partnership distributions received from equity investees were $12million in 2009, $63million in 2008 and $50million in 2007. For discussion of transactions and related receivable and payable balances between U. S. Steel and its investees, see Note26.

Property, Plant and Equipment

Property, Plant and Equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Property, Plant and Equipment	12. Property, Plant and Equipment December31, (In millions) UsefulLives 2009 2008 Land and depletable property - $ 248 $ 278 Buildings 35years 1,353 1,331 Machinery and equipment 4-22years 13,921 13,342 Information technology 5-6years 333 219 Leased machinery and equipment 3-25years 175 175 Total 16,030 15,345 Less accumulated depreciation and depletion 9,210 8,669 Net $ 6,820 $ 6,676 Amounts in accumulated depreciation and depletion for assets acquired under capital leases (including sale-leasebacks accounted for as financings) were $145million and $136million at December31,2009 and 2008, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Intangible Assets	13. Goodwill and Intangible Assets The changes in the carrying amount of goodwill by segment for the years ended December31, 2009 and December31, 2008 are as follows: Flat-rolled Segment Tubular Segment Total Balance at January1, 2008 $ 867 $ 845 $ 1,712 Goodwill from acquisitions 56 4 60 Currency translation (163 ) - (163 ) Balance at December31, 2008 $ 760 $ 849 $ 1,609 Goodwill from acquisitions - - - Currency translation 116 - 116 Balance at December31, 2009 $ 876 $ 849 $ 1,725 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. Goodwill impairment tests in 2008 and 2007 also indicated that goodwill was not impaired for either reporting unit. Accordingly, there are no accumulated impairment losses for goodwill. 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. Although considered, 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 hori

Stock-Based Compensation Plans

Stock-Based Compensation Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation Plans	14. Stock-Based Compensation Plans On April26, 2005, U. S. Steels stockholders approved the 2005 Stock Incentive Plan (the 2005 Stock Plan). The aggregate number of shares of U. S. Steel common stock that may be issued under the 2005 Stock Plan is 6,750,000 shares during the 10-year life of the plan. Generally, a share issued under the Plan pursuant to an award other than a stock option will reduce the number of shares available under the Stock Plan by 1.42 shares. The purposes of the 2005 Stock Plan are to attract, retain and motivate employees and non-employee directors of outstanding ability, and to align their interests with those of the stockholders of U. S. Steel. The Compensation Organization Committee of the Board of Directors (the Compensation Committee) administers the plan pursuant to which they may make grants of stock options, restricted stock, restricted stock units (RSUs), performance shares, and other stock-based awards. Also, shares related to awards (i)that are forfeited, (ii)that terminate without shares having been issued or (iii)for which payment is made in cash or property other than shares are again available for awards under the plan; provided, however, that shares delivered to U. S. Steel or withheld for purposes of satisfying the exercise price or tax withholding obligations shall not again be available for awards. The following table summarizes the total stock-based compensation awards granted during the years 2009, 2008 and 2007: StockOptions Restricted Stock Restricted StockUnits Performance Awards 2009 Grants 1,026,580 - 564,210 116,410 2008 Grants 281,200 1,000 118,420 32,870 2007 Grants 234,930 199,585 - 62,800 Stock-based compensation expense The following table summarizes the total compensation expense recognized for stock-based compensation awards: (In millions, except per share amounts) Year Ended December31, 2009 Year Ended December31, 2008 Year Ended December31, 2007 Stock-based compensation expense recognized: Cost of sales $ 10 $ 11 $ 7 Selling, general and administrative expenses 27 24 16 Total 37 35 23 Related deferred income tax benefit 14 13 9 Decrease in net income $ 23 $ 22 $ 14 Decrease in basic earnings per share $ 0.17 $ 0.19 $ 0.12 Decrease in diluted earnings per share $ 0.17 $ 0.18 $ 0.12 As of December31, 2009, total future compensation cost related to nonvested stock-based compensation arrangements was $37million, and the average period over which this cost is expected to be recognized is approximately 12 months. Stock options 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 2009, 2008 and 2007 awards vest ratably ov

Derivative Instruments

Derivative Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
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 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 have a non-cash impact on income when remeasured at the end of each quarter. An $892million U.S. dollar-denominated intercompany loan (the Intercompany Loan) from a U.S. subsidiary to a European subsidiary was the primary exposure at December31, 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 12 months to exchange euros for U.S. dollars to manage our exposure to foreign currency exchange rate fluctuations. The gains and losses recognized on these euro forward sales contracts may also partially offset gains and losses recognized on the Intercompany Loan. As of December31, 2009, U. S. Steel held euro forward sales contracts with a total notional value of approximately $185million. 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 foreign currency forward contracts as hedges. Therefore, changes in the fair value of these 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 the purchases of natural gas and certain nonferrous metals used in the production process. Historically, the forward physical purchase contracts for natural gas and nonferrous metals have qualified for the normal purchases and normal sales exemption in ASC Topic 815. However, due to reduced natural gas consumption in 2009, we net settled some of our excess natural gas purchase contracts for certain facilities. Therefore, the remaining contracts for natural gas at those facilities no longer met the exemption criteria and were therefore subject to mark-to-market accounting. As of December31, 2009, there are no longer natural gas purchase contracts subject to mark-to-market accounting. Fixed-price forward physical purchase contracts entered into for 2010 to partially manage our exposure to natural gas price risk qualify for the normal purchases normal sales exemption. As of December31, 2008, U. S. Steel held commodity contracts for natural gas with a

Debt

Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Debt	16. Debt (In millions) Interest Rates % Maturity December31, 2009 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 n/a - 475 Three-year Term Loan Variable n/a - 180 Province Note (C$150 million) 1.00 2015 142 122 Environmental Revenue Bonds 4.75-6.88 2011-2030 458 458 Fairfield Caster Lease 2010-2012 29 37 Other capital leases and all other obligations 2010-2014 30 35 Amended Credit Agreement, $750 million Variable 2012 - - USSK Revolver, 200million Variable 2011 288 282 USSK credit facilities, 70million and 60million ($101 million and $85 million at December31, 2009 and 2008, respectively) Variable 2011-2012 - - USSS credit facilities, 40million and 800million Serbian Dinar ($69 million and $70 million at December31, 2009 and 2008, respectively) Variable 2010 - - Total 3,410 3,189 Less Province Note fair value adjustment 40 38 Less unamortized discount 6 6 Less short-term debt and long-term debt due within one year 19 81 Long-term debt $ 3,345 $ 3,064 Senior Notes On May21, 2007, U. S. Steel issued a total of $1,100million of senior notes consisting of $350million at 6.65 percent due 2037, $450million at 6.05 percent due 2017, and $300million at 5.65 percent due 2013, collectively, the Senior Notes (and individually, the 2037 Senior Notes, the 2017 Senior Notes and the 2013 Senior Notes, respectively). Interest is payable semi-annually on June1 and December1 of each year. The Senior Notes are not listed on any national securities exchange. Proceeds from the sale of the Senior Notes were used to finance a portion of the Lone Star acquisition. The Senior Notes restrict our ability to create certain liens, to enter into sale leaseback transactions, and to consolidate, merge or transfer all, or substantially all, of our assets. On December10, 2007, U. S. Steel issued $500million of 7.00 percent Senior Notes due 2018 (the 2018 Senior Notes). Interest is payable semi-annually on February1 and August1 of each year. The 2018 Senior Notes are not listed on any national securities exchange. Proceeds from the sale of the 2018 Senior Notes were used to redeem a term loan to finance a portion of the Stelco acquisition and for general corporate purposes. The 2018 Senior Notes restrict our ability to create certain liens, to enter into sale leaseback transactions, and to consolidate, merge or transfer all, or substantia

2008 Collective Bargaining Agre

2008 Collective Bargaining Agreements
	12 Months Ended Dec. 31, 2009 USD / shares
2008 Collective Bargaining Agreements	17. 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 agreements provided for a payment to be made to each covered USW active member by October1, 2008, which resulted in U. S. Steel recognizing a charge of $105million in 2008. 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 during the contract period, 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 $75million 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 the 2009 contribution until 2012. See Note 20 for further details. Effective January1, 2009, the 2008 CBAs also revised the profit sharing to include income from operations from Texas Operations. At the same time the profit sharing formula was 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.

Variable Interest Entities

Variable Interest Entities
	12 Months Ended Dec. 31, 2009 USD / shares
Variable Interest Entities	18. Variable Interest Entities In accordance with ASC Topic 810 on consolidation, U. S. Steel consolidates the following entities: 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. At December31, 2009, DRB was financed primarily through a secured, non-recourse lot development loan of approximately $1million. 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 for the years ended December31, 2009 and 2008. During 2007, the consolidation of DRB increased income from operations by $8million, which was partially offset by noncontrolling interest of $4million. The assets of DRB consolidated by U. S. Steel totaled $12million and $13million at December31, 2009 and 2008, respectively. The assets are primarily comprised of inventory of $9million as of December31, 2009 and December31, 2008. Total liabilities of DRB consolidated by U. S. Steel totaled $2million and $3million at December31, 2009 and 2008, respectively. The liabilities of DRB consolidated by U. S. Steel are primarily comprised of accounts payable and accrued development costs of $1million and $2million as of December31, 2009 and December31, 2008, respectively. Chicago Lakeside Development, LLC Chicago Lakeside Development, LLC (CLD) was established in 2006 to develop 275 acres of land that U. S. Steel owns in Chicago, Illinois. In December 2008, the partnership was dissolved. The title to the 275 acres of land remained with U. S. Steel upon the dissolution of the partnership. This event did not result in any material financial statement impacts. The consolidation of CLD reduced income from operations by $4million for the year ended December31, 2008, which was partially offset by noncontrolling interests of $3million. During the year ended December31, 2007, the consolidation of CLD reduced income from operations by $7million, which was partially offset by noncontrolling interests of $4million. Gateway Energy Coke Company, LLC In 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, which is a significant factor in the agreement. Under this arrangement, 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. Af

Sale of Accounts Receivable

Sale of Accounts Receivable
	12 Months Ended Dec. 31, 2009 USD / shares
Sale of Accounts Receivable	19. 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. If U. S. Steel decides to access this facility, USSR then sells senior undivided interests in up to $500million 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. 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. 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. The adoption of FAS 166 will result in any Receivables Purchase Agreement transactions being accounted for as secured borrowing transactions as of January1, 2010. In January 2010, the FASB updated ASC 860 Accounting for Transfers of Financial Assets to incorporate FAS 166. At December31, 2009 and 2008, $500million, of 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. The Receivables Purchase Agreement expires on September25, 2010. USSR pays the conduits a discount based on the conduits borrowing costs plus incremental fees. We incurred costs of $3million and $4million in 2009 and 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: (In millions) 2009 2008 Proceeds from: Collections reinvested $ - $ 1,058 The table below summarizes the trade receivables at

Pensions and Other Benefits

Pensions and Other Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Pensions and Other Benefits	20. Pensions and Other Benefits U. S. Steel has non-contributory defined benefit pension plans that cover more than half of its employees in North America and defined benefit retiree health care and life insurance plans (Other Benefits) that cover the majority of its employees in North America upon their retirement. Benefits under the defined benefit pension plans are based upon years of service and final average pensionable earnings, or a minimum benefit based upon years of service, whichever is greater. In addition, pension benefits for most salaried employees in the United States under these plans are based upon a percent of total career pensionable earnings. Most salaried employees in the UnitedStates, including those not participating in the defined benefit pension plans of the Company, participate in defined contribution plans (401(k)plans) whereby the Company matches a certain percentage of salary based on the amount contributed by the participant and years of service with the company and for those without defined benefit coverage, also provides a company provided retirement account benefit based on salary and attained age. Approximately 48 percent of U. S. Steels union employees in the United States are currently covered by the Steelworkers Pension Trust (SPT), a multi-employer pension plan, to which U. S. Steel contributes on the basis of a fixed dollar amount for each hour. As a result of the 2008 CBAs (see below), the flat dollar contribution rate per hour increased to $2.65 from $1.80. The majority of employees and retirees added with the purchase of USSC at the end of October 2007 participate in defined benefit plans covering both pensions and retiree health and life insurance. Pension benefits provided to salaried employees are based on final average pensionable earnings. Pension benefits for union employees are based upon years of service multiplied by a flat dollar rate. Most union employees and retirees added with the acquisition of Lone Star in June 2007 participate in defined benefit pension plans. As a result of the 2008 CBAs, these defined benefit pension plans were frozen at December31, 2008 and active participants are now covered by the SPT. Salaried employees added with the acquisition of Lone Star primarily participate in defined contribution pension plans. U. S. Steels defined benefit retiree health care and life insurance plans cover most employees in the United States upon their retirement. Health care benefits are provided through hospital, surgical, major medical and drug benefit provisions or through health maintenance organizations, both subject to various cost sharing features, and in most cases domestically, an employer cap on total costs. Upon their retirement, most salaried employees in the United States are provided with only a flat dollar pre-Medicare benefit and a death benefit. The majority of U. S. Steels European employees are covered by government-sponsored programs into which U. S. Steel makes required contributions. Also, U. S. Steel sponsors defined benefit plans for most European employees covering benefit payments due to employees upon their retirement, some of which ar

Asset Retirement Obligations

Asset Retirement Obligations
	12 Months Ended Dec. 31, 2009 USD / shares
Asset Retirement Obligations	21. Asset Retirement Obligations U. S. Steels 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 for the years ended December31,2009 and 2008: December31, (In millions) 2009 2008 Balance at beginning of year $ 48 $ 40 Additional obligations incurred 4 Obligations settled (7 ) Revisions in estimated closure costs (1 ) Foreign currency translation effects 1 2 Accretion expense 3 3 Balance at end of year $ 45 $ 48 Certain AROs related to disposal costs 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 fair value.

Common Stock Repurchase Program

Common Stock Repurchase Program, Common Stock and Preferred Stock
	12 Months Ended Dec. 31, 2009 USD / shares
Common Stock Repurchase Program, Common Stock and Preferred Stock	22. Common Stock Repurchase Program, Common Stock and Preferred Stock Common Stock Issued In May 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. Common Stock Repurchase Program In 2005, U. S. Steel commenced a Common Stock Repurchase Program that allows for the repurchase of its common stock from time to time in the open market or privately negotiated transactions. U. S. Steel did not repurchase any shares of common stock during 2009 as U.S.Steel suspended the program in late 2008. During 2008, U. S. Steel repurchased 2,014,900shares of common stock for $227 million under the program.

Stockholder Rights Plan

Stockholder Rights Plan
	12 Months Ended Dec. 31, 2009 USD / shares
Stockholder Rights Plan	23. Stockholder Rights Plan Effective December31,2001, U. S. Steel adopted a Stockholder Rights Plan and declared a dividend distribution of one right for each share of its common stock (Voting Stock). Each right becomes exercisable, at a price of $110, after any person or group has acquired, obtained the right to acquire or made a tender or exchange offer for 15 percent or more of the outstanding voting power represented by the outstanding Voting Stock, except pursuant to a qualifying all-cash tender offer for all outstanding shares of Voting Stock which results in the offeror owning shares of Voting Stock representing a majority of the voting power (other than Voting Stock beneficially owned by the offeror immediately prior to the offer). If the rights become exercisable, each right will entitle the holder, other than the acquiring person or group, to purchase one one-hundredth of a share of Series A Junior Preferred Stock or, upon the acquisition by any person of 15 percent or more of the outstanding voting power represented by the outstanding Voting Stock (or, in certain circumstances, other property), common stock having a market value of twice the exercise price. After a person or group acquires 15 percent or more of the outstanding voting power, if U. S. Steel engages in a merger or other business combination where it is not the surviving corporation or where it is the surviving corporation and the Voting Stock is changed or exchanged, or if 50 percent or more of U. S. Steels assets, earnings power or cash flow are sold or transferred, each right will entitle the holder to purchase common stock of the acquiring entity having a market value of twice the exercise price. The rights and the exercise price are subject to adjustment. The rights will expire on December31,2011, unless such date is extended or the rights are earlier redeemed by U. S. Steel before they become exercisable. Under certain circumstances, the Board of Directors has the option to exchange one share of the respective class of Voting Stock for each exercisable right.

Fair Value of Financial Instrum

Fair Value of Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value of Financial Instruments	24. Fair Value of Financial Instruments ASC Topic 820 requires the disclosure of the estimated fair value of financial instruments including those financial instruments for which the fair value option was not elected. The following methods and assumptions were used to estimate the fair value of those financial instruments for which the fair value option was not elected. Current assets and current liabilities: The fair value approximates the carrying value due to the short-term maturity of the instruments. Investments and long-term receivables: The fair value is 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. Long-term debt instruments: The fair value is based on the yield on public debt where available or current borrowing rates available for financings with similar terms and maturities. 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 December31,2009 and 2008 were: December31,2009 December31,2008 (In millions) Fair Value Carrying Amount Fair Value Carrying Amount Financial assets: Cash and cash equivalents $ 1,218 $ 1,218 $ 724 $ 724 Receivables 1,423 1,423 2,106 2,106 Receivables from related parties 144 144 182 182 Investments and long-term receivables(a) 26 26 23 23 Total financial assets $ 2,811 $ 2,811 $ 3,035 $ 3,035 Financial liabilities: Accounts payable(b) $ 1,419 $ 1,419 $ 1,451 $ 1,451 Accounts payable to related parties 61 61 43 43 Accrued interest 32 32 33 33 Debt(c) 4,004 3,307 2,650 3,075 Total financial liabilities $ 5,516 $ 4,819 $ 4,177 $ 4,602 (a) Excludes equity method investments. (b) Includes bank checks outstanding. (c) Excludes capital lease obligations. Financial guarantees are U. S. Steels only unrecognized financial instrument. For details relating to financial guarantees see Note28.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Cash Flow Information	25. Supplemental Cash Flow Information (In millions) 2009 2008 2007 Net cash provided by operating activities included: Interest and other financial costs paid (net of amount capitalized) $ (169 ) $ (155 ) $ (189 ) Income taxes refunded (paid) 21 (359 ) (142 )(a) Interest on tax settlements received from Marathon 13 Noncash investing and financing activities: U. S. Steel common stock issued for employee stock plans $ 26 $ 31 $ 34 (a) Includes amounts paid to the FDIC in lieu of taxing authorities in accordance with an agreement between Lone Star and the FDIC.

Transactions with Related Parti

Transactions with Related Parties
	12 Months Ended Dec. 31, 2009 USD / shares
Transactions with Related Parties	26. Transactions with Related Parties Net sales to related parties and receivables from related parties primarily reflect sales of steel products to equity and certain other investees. Generally, transactions are conducted under long-term market-based contractual arrangements. Sales and service transactions with equity investees were $845million, $1,288million and $1,172million in 2009, 2008 and 2007, respectively. Purchases from equity investees for outside processing services amounted to $318 million, $361million and $46 million during 2009, 2008 and 2007, respectively. Purchases of taconite pellets from equity investees, all of which were acquired in the Stelco acquisition, amounted to $168 million, $175 million and $31 million for the years ended December31, 2009, 2008 and 2007, respectively. Accounts payable to related parties include balances due to PRO-TEC Coating Company (PRO-TEC) of $58 million and $42 million at December31, 2009 and 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 $3million and $1million at December31, 2009 and 2008, respectively.

Leases

Leases
	12 Months Ended Dec. 31, 2009 USD / shares
Leases	27. Leases Future minimum commitments for capital leases (including sale-leasebacks accounted for as financings) and for operating leases having initial non-cancelable lease terms in excess of one year are as follows: (In millions) Capital Leases Operating Leases 2010 $ 22 45 2011 23 41 2012 21 29 2013 17 2014 17 Later years 40 Sublease rentals (16 ) Total minimum lease payments 66 $ 173 Less imputed interest costs 8 Present value of net minimum lease payments included in long-term debt (see Note 16) $ 58 Operating lease rental expense: (In millions) 2009 2008 2007 Minimum rentals $ 74 $ 96 $ 94 Contingent rentals 9 11 8 Sublease rentals (5 ) (5 ) (5 ) Net rental expense $ 78 $ 102 $ 97 U. S. Steel leases a wide variety of facilities and equipment under operating leases, including land and building space, office equipment, production equipment and transportation equipment. Most long-term leases include renewal options and, in certain leases, purchase options. See the discussion of residual value guarantees under other contingencies in Note28. Contingent rental payments are determined based on operating lease agreements that include floating rental charges that are directly associated to variable operating components.

Contingencies and Commitments

Contingencies and Commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Contingencies and Commitments	28. 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 December31, 2009, U. S. Steel was a defendant in approximately 440 active cases involving approximately 3,040 plaintiffs. Many of these cases involve multiple defendants (typically from fifty to more than one hundred). Almost 2,560, or approximately 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 2009, U. S. Steel paid approximately $7 million in settlements. These settlements and other dispositions resolved approximately 200 claims. New case filings in 2009 added approximately 190 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 2008 added approximately 450 claims. Most claims filed in 2009 and 2008 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 210 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 mesothelioma. In many cases in which claims have been asserted

Subsequent Event

Subsequent Event
	12 Months Ended Dec. 31, 2009 USD / shares
Subsequent Event	29. Subsequent Event On February1, 2010, USSC completed the previously announced sale of its 44.6 percent interest in the Wabush Mines Joint Venture (Wabush) for approximately $58 million. Wabush owns and operates iron ore mining and pellet facilities in Newfoundland and Labrador and Quebec, Canada. U. S. Steel recognized an immaterial loss on the sale.

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES	SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007 (Millions of Dollars) Additions Deductions Description Balanceat Beginning of Period Chargedto Costs and Expenses Chargedto Other Accounts Chargedto Costs and Expenses Chargedto Other Accounts Balanceat End of Period Year ended December31, 2009: Reserves deducted in the balance sheet from the assets to which they apply: Allowance for doubtful accounts $ 52 $ 9 $ $ $ 22 $ 39 Investments and long-term receivables reserve 10 12 22 Deferred tax valuation allowance: State Foreign 328 29 218 575 Year ended December31, 2008: Reserves deducted in the balance sheet from the assets to which they apply: Allowance for doubtful accounts $ 42 $ 30 $ $ 11 $ 9 $ 52 Investments and long-term receivables reserve 6 4 10 Deferred tax valuation allowance: State 1 1 Foreign 392 23 87 328 Year ended December31, 2007: Reserves deducted in the balance sheet from the assets to which they apply: Allowance for doubtful accounts $ 58 $ $ 14 $ 26 $ 4 $ 42 Investments and long-term receivables reserve 6 6 Deferred tax valuation allowance: State 1 1 Foreign 90 302 392

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 22, 2010	Jun. 30, 2009
Trading Symbol	X
Entity Registrant Name	UNITED STATES STEEL CORP
Entity Central Index Key	0001163302
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		143,370,146
Entity Public Float			$5,100,000,000