|
[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
1-16811
|
|
25-1897152
|
(State or other
jurisdiction of
incorporation)
|
|
(Commission
File Number)
|
|
(IRS Employer
Identification No.)
|
600 Grant Street, Pittsburgh, PA
|
|
15219-2800
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
Page
|
||
PART I – FINANCIAL INFORMATION
|
|
||
|
Item 1.
|
Financial Statements:
|
|
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
Item 2.
|
||
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Item 3.
|
||
|
Item 4.
|
||
|
|
||
|
|||
|
Item 1.
|
||
|
Item 1A.
|
||
|
Item 2.
|
||
|
Item 4.
|
||
|
Item 6.
|
||
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(Dollars in millions, except per share amounts)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales:
|
|
|
|
|
|
|
|
|
||||||||
Net sales
|
|
$
|
3,242
|
|
|
$
|
2,787
|
|
|
$
|
6,063
|
|
|
$
|
5,199
|
|
Net sales to related parties (Note 20)
|
|
367
|
|
|
357
|
|
|
695
|
|
|
670
|
|
||||
Total (Note 5)
|
|
3,609
|
|
|
3,144
|
|
|
6,758
|
|
|
5,869
|
|
||||
Operating expenses (income):
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales (excludes items shown below)
|
|
3,121
|
|
|
2,723
|
|
|
5,929
|
|
|
5,282
|
|
||||
Selling, general and administrative expenses
|
|
92
|
|
|
67
|
|
|
170
|
|
|
148
|
|
||||
Depreciation, depletion and amortization
|
|
130
|
|
|
121
|
|
|
258
|
|
|
258
|
|
||||
Earnings from investees
|
|
(19
|
)
|
|
(16
|
)
|
|
(22
|
)
|
|
(20
|
)
|
||||
Gain associated with retained interest in U. S. Steel Canada Inc. (Note 23)
|
|
—
|
|
|
(72
|
)
|
|
—
|
|
|
(72
|
)
|
||||
Restructuring and other charges (Note 21)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
32
|
|
||||
Net gain on disposal of assets
|
|
(17
|
)
|
|
—
|
|
|
(16
|
)
|
|
(1
|
)
|
||||
Other expense (income), net
|
|
1
|
|
|
(5
|
)
|
|
1
|
|
|
(5
|
)
|
||||
Total
|
|
3,308
|
|
|
2,817
|
|
|
6,320
|
|
|
5,622
|
|
||||
Earnings before interest and income taxes
|
|
301
|
|
|
327
|
|
|
438
|
|
|
247
|
|
||||
Interest expense
|
|
43
|
|
|
55
|
|
|
93
|
|
|
113
|
|
||||
Interest income
|
|
(5
|
)
|
|
(4
|
)
|
|
(10
|
)
|
|
(8
|
)
|
||||
Loss on debt extinguishment (Note 9)
|
|
28
|
|
|
1
|
|
|
74
|
|
|
1
|
|
||||
Other financial (benefits) costs
|
|
(8
|
)
|
|
16
|
|
|
2
|
|
|
25
|
|
||||
Net periodic benefit cost (other than service cost) (Note 3)
(a)
|
|
17
|
|
|
14
|
|
|
34
|
|
|
32
|
|
||||
Net interest and other financial costs (Note 9)
|
|
75
|
|
|
82
|
|
|
193
|
|
|
163
|
|
||||
Earnings before income taxes
|
|
226
|
|
|
245
|
|
|
245
|
|
|
84
|
|
||||
Income tax provision (benefit) (Note 11)
|
|
12
|
|
|
(16
|
)
|
|
13
|
|
|
3
|
|
||||
Net earnings
|
|
214
|
|
|
261
|
|
|
232
|
|
|
81
|
|
||||
Less: Net earnings attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net earnings attributable to United States Steel Corporation
|
|
$
|
214
|
|
|
$
|
261
|
|
|
$
|
232
|
|
|
$
|
81
|
|
Earnings per common share
(Note 12):
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share attributable to United States Steel Corporation stockholders:
|
|
|
|
|
|
|
|
|
||||||||
-Basic
|
|
$
|
1.21
|
|
|
$
|
1.49
|
|
|
$
|
1.32
|
|
|
$
|
0.46
|
|
-Diluted
|
|
$
|
1.20
|
|
|
$
|
1.48
|
|
|
$
|
1.30
|
|
|
$
|
0.46
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(Dollars in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net earnings
|
|
$
|
214
|
|
|
$
|
261
|
|
|
$
|
232
|
|
|
$
|
81
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Changes in foreign currency translation adjustments
|
|
(87
|
)
|
|
82
|
|
|
(47
|
)
|
|
105
|
|
||||
Changes in pension and other employee benefit accounts
|
|
47
|
|
|
46
|
|
|
93
|
|
|
92
|
|
||||
Changes in derivative financial instruments
|
|
(3
|
)
|
|
(3
|
)
|
|
(19
|
)
|
|
(3
|
)
|
||||
Total other comprehensive (loss) income, net of tax
|
|
(43
|
)
|
|
125
|
|
|
27
|
|
|
194
|
|
||||
Comprehensive income including noncontrolling interest
|
|
171
|
|
|
386
|
|
|
259
|
|
|
275
|
|
||||
Comprehensive income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Comprehensive income attributable to United States Steel
Corporation |
|
$
|
171
|
|
|
$
|
386
|
|
|
$
|
259
|
|
|
$
|
275
|
|
(Dollars in millions)
|
|
June 30, 2018 |
|
December 31,
2017 |
||||
Assets
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents (Note 6)
|
|
$
|
1,231
|
|
|
$
|
1,553
|
|
Receivables, less allowance of $28 and $28
|
|
1,430
|
|
|
1,173
|
|
||
Receivables from related parties (Note 20)
|
|
226
|
|
|
206
|
|
||
Inventories (Note 13)
|
|
1,848
|
|
|
1,738
|
|
||
Other current assets
|
|
77
|
|
|
85
|
|
||
Total current assets
|
|
4,812
|
|
|
4,755
|
|
||
Property, plant and equipment
|
|
15,378
|
|
|
15,086
|
|
||
Less accumulated depreciation and depletion
|
|
10,977
|
|
|
10,806
|
|
||
Total property, plant and equipment, net
|
|
4,401
|
|
|
4,280
|
|
||
Investments and long-term receivables, less allowance of $11 and $11
|
|
498
|
|
|
480
|
|
||
Intangibles – net (Note 7)
|
|
162
|
|
|
167
|
|
||
Deferred income tax benefits (Note 11)
|
|
56
|
|
|
56
|
|
||
Other noncurrent assets
|
|
129
|
|
|
124
|
|
||
Total assets
|
|
$
|
10,058
|
|
|
$
|
9,862
|
|
Liabilities
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable and other accrued liabilities
|
|
$
|
2,239
|
|
|
$
|
2,096
|
|
Accounts payable to related parties (Note 20)
|
|
92
|
|
|
74
|
|
||
Payroll and benefits payable
|
|
386
|
|
|
347
|
|
||
Accrued taxes
|
|
135
|
|
|
132
|
|
||
Accrued interest
|
|
46
|
|
|
69
|
|
||
Current portion of long-term debt (Note 15)
|
|
4
|
|
|
3
|
|
||
Total current liabilities
|
|
2,902
|
|
|
2,721
|
|
||
Long-term debt, less unamortized discount and debt issuance costs (Note 15)
|
|
2,541
|
|
|
2,700
|
|
||
Employee benefits
|
|
692
|
|
|
759
|
|
||
Deferred income tax liabilities (Note 11)
|
|
6
|
|
|
6
|
|
||
Deferred credits and other noncurrent liabilities
|
|
311
|
|
|
355
|
|
||
Total liabilities
|
|
6,452
|
|
|
6,541
|
|
||
Contingencies and commitments (Note 22)
|
|
|
|
|
||||
Stockholders’ Equity (Note 18):
|
|
|
|
|
||||
Common stock (177,179,937 and 176,424,554 shares issued) (Note 12)
|
|
177
|
|
|
176
|
|
||
Treasury stock, at cost (31,240 shares and 1,203,344 shares)
|
|
(1
|
)
|
|
(76
|
)
|
||
Additional paid-in capital
|
|
3,900
|
|
|
3,932
|
|
||
Retained earnings
|
|
347
|
|
|
133
|
|
||
Accumulated other comprehensive loss (Note 19)
|
|
(818
|
)
|
|
(845
|
)
|
||
Total United States Steel Corporation stockholders’ equity
|
|
3,605
|
|
|
3,320
|
|
||
Noncontrolling interests
|
|
1
|
|
|
1
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
10,058
|
|
|
$
|
9,862
|
|
|
|
Six Months Ended
June 30, |
||||||
(Dollars in millions)
|
|
2018
|
|
2017
|
||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
|
|
|
|
||||
Operating activities:
|
|
|
|
|
||||
Net earnings
|
|
$
|
232
|
|
|
$
|
81
|
|
Adjustments to reconcile to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation, depletion and amortization
|
|
258
|
|
|
258
|
|
||
Gain associated with retained interest in U. S. Steel Canada Inc. (Note 23)
|
|
—
|
|
|
(72
|
)
|
||
Restructuring and other charges (Note 21)
|
|
—
|
|
|
32
|
|
||
Loss on debt extinguishment (Note 9)
|
|
74
|
|
|
1
|
|
||
Provision for doubtful accounts
|
|
1
|
|
|
1
|
|
||
Pensions and other postretirement benefits
|
|
37
|
|
|
31
|
|
||
Deferred income taxes (Note 11)
|
|
(1
|
)
|
|
2
|
|
||
Net gain on disposal of assets
|
|
(16
|
)
|
|
(1
|
)
|
||
Equity investee earnings, net of distributions received
|
|
(19
|
)
|
|
(16
|
)
|
||
Changes in:
|
|
|
|
|
||||
Current receivables
|
|
(294
|
)
|
|
(172
|
)
|
||
Inventories
|
|
(123
|
)
|
|
(125
|
)
|
||
Current accounts payable and accrued expenses
|
|
175
|
|
|
98
|
|
||
Income taxes receivable/payable
|
|
(3
|
)
|
|
20
|
|
||
Bank checks outstanding
|
|
8
|
|
|
7
|
|
||
All other, net
|
|
(36
|
)
|
|
98
|
|
||
Net cash provided by operating activities
|
|
293
|
|
|
243
|
|
||
Investing activities:
|
|
|
|
|
||||
Capital expenditures
|
|
(381
|
)
|
|
(120
|
)
|
||
Disposal of assets
|
|
1
|
|
|
—
|
|
||
Investments, net
|
|
(1
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
|
(381
|
)
|
|
(120
|
)
|
||
Financing activities:
|
|
|
|
|
||||
Issuance of long-term debt, net of financing costs (Note 15)
|
|
640
|
|
|
—
|
|
||
Repayment of long-term debt (Note 15)
|
|
(874
|
)
|
|
(108
|
)
|
||
Dividends paid
|
|
(18
|
)
|
|
(18
|
)
|
||
Receipt from exercise of stock options
|
|
33
|
|
|
13
|
|
||
Taxes paid for equity compensation plans (Note 10)
|
|
(8
|
)
|
|
(10
|
)
|
||
Net cash used in financing activities
|
|
(227
|
)
|
|
(123
|
)
|
||
Effect of exchange rate changes on cash
|
|
(10
|
)
|
|
10
|
|
||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
|
(325
|
)
|
|
10
|
|
||
Cash, cash equivalents and restricted cash at beginning of year (Note 6)
|
|
1,597
|
|
|
1,555
|
|
||
Cash, cash equivalents and restricted cash at end of period (Note 6)
|
|
$
|
1,272
|
|
|
$
|
1,565
|
|
|
Three Months Ended June 30, 2017
|
|||||||||||
Statement of Operations
(In millions)
|
|
As Revised
|
|
Previously Reported
|
|
Effect of Change Higher/(Lower)
|
||||||
Cost of Sales
|
|
$
|
2,723
|
|
|
$
|
2,725
|
|
|
$
|
(2
|
)
|
Selling, general and administrative expenses
|
|
67
|
|
|
79
|
|
|
(12
|
)
|
|||
Net periodic benefit cost (other than service cost)
|
|
14
|
|
|
—
|
|
|
14
|
|
|
Six Months Ended June 30, 2017
|
|||||||||||
Statement of Operations
(In millions)
|
|
As Revised
|
|
Previously Reported
|
|
Effect of Change Higher/(Lower)
|
||||||
Cost of Sales
|
|
$
|
5,282
|
|
|
$
|
5,286
|
|
|
$
|
(4
|
)
|
Selling, general and administrative expenses
|
|
148
|
|
|
176
|
|
|
(28
|
)
|
|||
Net periodic benefit cost (other than service cost)
|
|
32
|
|
|
—
|
|
|
32
|
|
(In millions)
Three Months Ended June 30, 2018
|
|
Customer
Sales |
|
Intersegment
Sales |
|
Net
Sales |
|
Earnings
from investees |
|
Earnings (loss) before interest and income taxes
|
||||||||||
Flat-Rolled
|
|
$
|
2,435
|
|
|
$
|
59
|
|
|
$
|
2,494
|
|
|
$
|
17
|
|
|
$
|
224
|
|
USSE
|
|
848
|
|
|
15
|
|
|
863
|
|
|
—
|
|
|
115
|
|
|||||
Tubular
|
|
309
|
|
|
2
|
|
|
311
|
|
|
2
|
|
|
(35
|
)
|
|||||
Total reportable segments
|
|
3,592
|
|
|
76
|
|
|
3,668
|
|
|
19
|
|
|
304
|
|
|||||
Other Businesses
|
|
17
|
|
|
32
|
|
|
49
|
|
|
—
|
|
|
17
|
|
|||||
Reconciling Items and Eliminations
|
|
—
|
|
|
(108
|
)
|
|
(108
|
)
|
|
—
|
|
|
(20
|
)
|
|||||
Total
|
|
$
|
3,609
|
|
|
$
|
—
|
|
|
$
|
3,609
|
|
|
$
|
19
|
|
|
$
|
301
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Flat-Rolled
|
|
$
|
2,151
|
|
|
$
|
92
|
|
|
$
|
2,243
|
|
|
$
|
14
|
|
|
$
|
220
|
|
USSE
|
|
740
|
|
|
12
|
|
|
752
|
|
|
—
|
|
|
55
|
|
|||||
Tubular
|
|
234
|
|
|
—
|
|
|
234
|
|
|
2
|
|
|
(29
|
)
|
|||||
Total reportable segments
|
|
3,125
|
|
|
104
|
|
|
3,229
|
|
|
16
|
|
|
246
|
|
|||||
Other Businesses
|
|
19
|
|
|
29
|
|
|
48
|
|
|
—
|
|
|
9
|
|
|||||
Reconciling Items and Eliminations
|
|
—
|
|
|
(133
|
)
|
|
(133
|
)
|
|
—
|
|
|
72
|
|
|||||
Total
|
|
$
|
3,144
|
|
|
$
|
—
|
|
|
$
|
3,144
|
|
|
$
|
16
|
|
|
$
|
327
|
|
(In millions)
Six Months Ended June 30, 2018
|
|
Customer
Sales |
|
Intersegment
Sales |
|
Net
Sales |
|
Earnings
from investees |
|
Earnings (loss) before interest and income taxes
|
||||||||||
Flat-Rolled
|
|
$
|
4,482
|
|
|
$
|
116
|
|
|
$
|
4,598
|
|
|
$
|
19
|
|
|
$
|
257
|
|
USSE
|
|
1,671
|
|
|
16
|
|
|
1,687
|
|
|
—
|
|
|
225
|
|
|||||
Tubular
|
|
575
|
|
|
2
|
|
|
577
|
|
|
3
|
|
|
(62
|
)
|
|||||
Total reportable segments
|
|
6,728
|
|
|
134
|
|
|
6,862
|
|
|
22
|
|
|
420
|
|
|||||
Other Businesses
|
|
30
|
|
|
63
|
|
|
93
|
|
|
—
|
|
|
28
|
|
|||||
Reconciling Items and Eliminations
|
|
—
|
|
|
(197
|
)
|
|
(197
|
)
|
|
—
|
|
|
(10
|
)
|
|||||
Total
|
|
$
|
6,758
|
|
|
$
|
—
|
|
|
$
|
6,758
|
|
|
$
|
22
|
|
|
$
|
438
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Flat-Rolled
|
|
$
|
4,016
|
|
|
$
|
113
|
|
|
$
|
4,129
|
|
|
$
|
17
|
|
|
$
|
132
|
|
USSE
|
|
1,413
|
|
|
24
|
|
|
1,437
|
|
|
—
|
|
|
142
|
|
|||||
Tubular
|
|
405
|
|
|
1
|
|
|
406
|
|
|
3
|
|
|
(86
|
)
|
|||||
Total reportable segments
|
|
5,834
|
|
|
138
|
|
|
5,972
|
|
|
20
|
|
|
188
|
|
|||||
Other Businesses
|
|
35
|
|
|
60
|
|
|
95
|
|
|
—
|
|
|
22
|
|
|||||
Reconciling Items and Eliminations
|
|
—
|
|
|
(198
|
)
|
|
(198
|
)
|
|
—
|
|
|
37
|
|
|||||
Total
|
|
$
|
5,869
|
|
|
$
|
—
|
|
|
$
|
5,869
|
|
|
$
|
20
|
|
|
$
|
247
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Items not allocated to segments:
|
|
|
|
|
|
|
|
|
||||||||
Gain on equity investee transactions
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
18
|
|
|
$
|
—
|
|
Granite City Works restart costs
|
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
||||
Granite City Works adjustment to temporary idling charges
|
|
(2
|
)
|
|
—
|
|
|
8
|
|
|
—
|
|
||||
Loss on shutdown of certain tubular assets
(a)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
||||
Gain associated with retained interest in U. S. Steel Canada Inc. (Note 23)
|
|
—
|
|
|
72
|
|
|
—
|
|
|
72
|
|
||||
Total reconciling items
|
|
$
|
(20
|
)
|
|
$
|
72
|
|
|
$
|
(10
|
)
|
|
$
|
37
|
|
(In millions)
Three Months Ended June 30, 2018
|
|
Flat-Rolled
|
USSE
|
Tubular
|
Other Businesses
|
Total
|
||||||||||
Semi-finished
|
|
$
|
1
|
|
$
|
52
|
|
$
|
—
|
|
$
|
—
|
|
$
|
53
|
|
Hot-rolled sheets
|
|
640
|
|
339
|
|
—
|
|
—
|
|
979
|
|
|||||
Cold-rolled sheets
|
|
735
|
|
104
|
|
—
|
|
—
|
|
839
|
|
|||||
Coated sheets
|
|
797
|
|
310
|
|
—
|
|
—
|
|
1,107
|
|
|||||
Tubular products
|
|
—
|
|
13
|
|
299
|
|
—
|
|
312
|
|
|||||
All Other
(a)
|
|
262
|
|
30
|
|
10
|
|
17
|
|
319
|
|
|||||
Total
|
|
$
|
2,435
|
|
$
|
848
|
|
$
|
309
|
|
$
|
17
|
|
$
|
3,609
|
|
(In millions)
Three Months Ended June 30, 2017
|
|
Flat-Rolled
|
USSE
|
Tubular
|
Other Businesses
|
Total
|
||||||||||
Semi-finished
|
|
$
|
—
|
|
$
|
77
|
|
$
|
—
|
|
$
|
—
|
|
$
|
77
|
|
Hot-rolled sheets
|
|
562
|
|
280
|
|
—
|
|
—
|
|
842
|
|
|||||
Cold-rolled sheets
|
|
579
|
|
77
|
|
—
|
|
—
|
|
656
|
|
|||||
Coated sheets
|
|
756
|
|
272
|
|
—
|
|
—
|
|
1,028
|
|
|||||
Tubular products
|
|
—
|
|
10
|
|
226
|
|
—
|
|
236
|
|
|||||
All Other
(a)
|
|
254
|
|
24
|
|
8
|
|
19
|
|
305
|
|
|||||
Total
|
|
$
|
2,151
|
|
$
|
740
|
|
$
|
234
|
|
$
|
19
|
|
$
|
3,144
|
|
(In millions)
Six Months Ended June 30, 2018
|
|
Flat-Rolled
|
USSE
|
Tubular
|
Other Businesses
|
Total
|
||||||||||
Semi-finished
|
|
$
|
10
|
|
$
|
89
|
|
$
|
—
|
|
$
|
—
|
|
$
|
99
|
|
Hot-rolled sheets
|
|
1,212
|
|
692
|
|
—
|
|
—
|
|
1,904
|
|
|||||
Cold-rolled sheets
|
|
1,374
|
|
202
|
|
—
|
|
—
|
|
1,576
|
|
|||||
Coated sheets
|
|
1,503
|
|
607
|
|
—
|
|
—
|
|
2,110
|
|
|||||
Tubular products
|
|
—
|
|
25
|
|
558
|
|
—
|
|
583
|
|
|||||
All Other
(a)
|
|
383
|
|
56
|
|
17
|
|
30
|
|
486
|
|
|||||
Total
|
|
$
|
4,482
|
|
$
|
1,671
|
|
$
|
575
|
|
$
|
30
|
|
$
|
6,758
|
|
(In millions)
Six Months Ended June 30, 2017
|
|
Flat-Rolled
|
USSE
|
Tubular
|
Other Businesses
|
Total
|
||||||||||
Semi-finished
|
|
$
|
1
|
|
$
|
104
|
|
$
|
—
|
|
$
|
—
|
|
$
|
105
|
|
Hot-rolled sheets
|
|
982
|
|
589
|
|
—
|
|
—
|
|
1,571
|
|
|||||
Cold-rolled sheets
|
|
1,185
|
|
156
|
|
—
|
|
—
|
|
1,341
|
|
|||||
Coated sheets
|
|
1,504
|
|
507
|
|
—
|
|
—
|
|
2,011
|
|
|||||
Tubular products
|
|
—
|
|
19
|
|
388
|
|
—
|
|
407
|
|
|||||
All Other
(a)
|
|
344
|
|
38
|
|
17
|
|
35
|
|
434
|
|
|||||
Total
|
|
$
|
4,016
|
|
$
|
1,413
|
|
$
|
405
|
|
$
|
35
|
|
$
|
5,869
|
|
(In millions)
|
|
June 30, 2018
|
|
June 30, 2017
|
||||
Cash and cash equivalents
|
|
$
|
1,231
|
|
|
$
|
1,522
|
|
Restricted cash in other current assets
|
|
5
|
|
|
1
|
|
||
Restricted cash in other noncurrent assets
|
|
36
|
|
|
42
|
|
||
Total cash, cash equivalents and restricted cash
|
|
$
|
1,272
|
|
|
$
|
1,565
|
|
|
|
|
|
As of June 30, 2018
|
|
As of December 31, 2017
|
||||||||||||||||||||
(In millions)
|
|
Useful
Lives |
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net
Amount |
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net
Amount |
||||||||||||
Customer relationships
|
|
22 Years
|
|
$
|
132
|
|
|
$
|
67
|
|
|
$
|
65
|
|
|
$
|
132
|
|
|
$
|
64
|
|
|
$
|
68
|
|
Patents
|
|
10-15 Years
|
|
22
|
|
|
6
|
|
|
16
|
|
|
22
|
|
|
5
|
|
|
17
|
|
||||||
Other
|
|
4-20 Years
|
|
14
|
|
|
8
|
|
|
6
|
|
|
15
|
|
|
8
|
|
|
7
|
|
||||||
Total amortizable intangible assets
|
|
|
|
$
|
168
|
|
|
$
|
81
|
|
|
$
|
87
|
|
|
$
|
169
|
|
|
$
|
77
|
|
|
$
|
92
|
|
|
|
Pension
Benefits |
|
Other
Benefits |
||||||||||||
(In millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Service cost
|
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
4
|
|
|
$
|
5
|
|
Interest cost
|
|
58
|
|
|
59
|
|
|
23
|
|
|
24
|
|
||||
Expected return on plan assets
|
|
(90
|
)
|
|
(97
|
)
|
|
(21
|
)
|
|
(17
|
)
|
||||
Amortization of prior service cost
|
|
—
|
|
|
—
|
|
|
8
|
|
|
7
|
|
||||
Amortization of actuarial net loss
|
|
38
|
|
|
37
|
|
|
1
|
|
|
1
|
|
||||
Net periodic benefit cost, excluding below
|
|
18
|
|
|
11
|
|
|
15
|
|
|
20
|
|
||||
Multiemployer plans
|
|
15
|
|
|
14
|
|
|
—
|
|
|
—
|
|
||||
Net periodic benefit cost
|
|
$
|
33
|
|
|
$
|
25
|
|
|
$
|
15
|
|
|
$
|
20
|
|
|
|
Pension
Benefits |
|
Other
Benefits |
||||||||||||
(In millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Service cost
|
|
$
|
25
|
|
|
$
|
24
|
|
|
$
|
8
|
|
|
$
|
9
|
|
Interest cost
|
|
116
|
|
|
118
|
|
|
46
|
|
|
47
|
|
||||
Expected return on plan assets
|
|
(180
|
)
|
|
(194
|
)
|
|
(41
|
)
|
|
(33
|
)
|
||||
Amortization of prior service cost
|
|
—
|
|
|
—
|
|
|
15
|
|
|
14
|
|
||||
Amortization of actuarial net loss
|
|
76
|
|
|
74
|
|
|
2
|
|
|
2
|
|
||||
Net periodic benefit cost, excluding below
|
|
37
|
|
|
22
|
|
|
30
|
|
|
39
|
|
||||
Multiemployer plans
|
|
29
|
|
|
29
|
|
|
—
|
|
|
—
|
|
||||
Settlement, termination and curtailment losses
(a)
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||
Net periodic benefit cost
|
|
$
|
66
|
|
|
$
|
55
|
|
|
$
|
30
|
|
|
$
|
39
|
|
|
|
2018
|
|
2017
|
||||||||
Grant Details
|
|
Shares
(a)
|
Fair Value
(b)
|
|
Shares
(a)
|
Fair Value
(b)
|
||||||
Stock Options
|
|
—
|
|
$
|
—
|
|
|
632,050
|
|
$
|
17.43
|
|
Restricted Stock Units
|
|
728,945
|
|
$
|
41.52
|
|
|
336,120
|
|
$
|
36.59
|
|
Performance Awards
(c)
|
|
|
|
|
|
|
||||||
TSR
|
|
79,190
|
|
$
|
61.57
|
|
|
156,770
|
|
$
|
42.45
|
|
ROCE
(d)
|
|
247,510
|
|
$
|
43.50
|
|
|
—
|
|
$
|
—
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Dollars in millions, except per share amounts)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Earnings attributable to United States Steel Corporation stockholders
|
|
$
|
214
|
|
|
$
|
261
|
|
|
$
|
232
|
|
|
$
|
81
|
|
Weighted-average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
177,027
|
|
|
174,797
|
|
|
176,594
|
|
|
174,521
|
|
||||
Effect of stock options, restricted stock units and performance awards
|
|
1,876
|
|
|
1,231
|
|
|
1,891
|
|
|
1,798
|
|
||||
Adjusted weighted-average shares outstanding, diluted
|
|
178,903
|
|
|
176,028
|
|
|
178,485
|
|
|
176,319
|
|
||||
Basic earnings per common share
|
|
$
|
1.21
|
|
|
$
|
1.49
|
|
|
$
|
1.32
|
|
|
$
|
0.46
|
|
Diluted earnings per common share
|
|
$
|
1.20
|
|
|
$
|
1.48
|
|
|
$
|
1.30
|
|
|
$
|
0.46
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Securities granted under the 2016 Omnibus Incentive Compensation Plan, as amended
|
|
1,832
|
|
|
3,538
|
|
|
1,572
|
|
|
1,669
|
|
(In millions)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Raw materials
|
|
$
|
556
|
|
|
$
|
527
|
|
Semi-finished products
|
|
832
|
|
|
796
|
|
||
Finished products
|
|
404
|
|
|
356
|
|
||
Supplies and sundry items
|
|
56
|
|
|
59
|
|
||
Total
|
|
$
|
1,848
|
|
|
$
|
1,738
|
|
Hedge Contracts
|
Classification
|
|
June 30, 2018
|
|
June 30, 2017
|
||||
Natural gas (in mmbtus)
|
Commodity purchase swaps
|
|
13,845,000
|
|
|
7,756,000
|
|
||
Tin (in metric tons)
|
Commodity purchase swaps
|
|
705
|
|
|
480
|
|
||
Zinc (in metric tons)
|
Commodity purchase swaps
|
|
13,468
|
|
|
41,790
|
|
||
Hot-rolled coils (in tons)
|
Sales swaps
|
|
60,000
|
|
|
138,000
|
|
||
Foreign currency (in thousands of dollars)
|
Foreign exchange forwards
|
|
$
|
324,000
|
|
|
$
|
216,000
|
|
(In millions) Designated as Hedging Instruments
|
Balance Sheet Location
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Sales swaps
|
Accounts payable
|
|
$
|
12
|
|
|
$
|
—
|
|
Commodity purchase swaps
|
Accounts receivable
|
|
1
|
|
|
4
|
|
||
Commodity purchase swaps
|
Accounts payable
|
|
8
|
|
|
2
|
|
||
Commodity purchase swaps
|
Investments and long-term receivables
|
|
—
|
|
|
1
|
|
||
Commodity purchase swaps
|
Other long-term liabilities
|
|
1
|
|
|
1
|
|
||
|
|
|
|
|
|
||||
Not Designated as Hedging Instruments
|
|
|
|
|
|
||||
Sales swaps
|
Accounts payable
|
|
—
|
|
|
2
|
|
||
Commodity purchase swaps
|
Accounts payable
|
|
—
|
|
|
1
|
|
||
Foreign exchange forwards
|
Accounts receivable
|
|
11
|
|
|
—
|
|
||
Foreign exchange forwards
|
Accounts payable
|
|
—
|
|
|
11
|
|
|
|
Gain (Loss) on Derivatives in AOCI
|
|
|
|
Amount of Gain (Loss) Recognized in Income
|
||||||||||||
(In millions)
|
|
Three Months Ended June 30, 2018
|
|
Three Months Ended June 30, 2017
|
|
Location of Reclassification from AOCI
(a)
|
|
Three Months Ended June 30, 2018
|
|
Three Months Ended June 30, 2017
|
||||||||
Sales swaps
(b)
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
Net sales
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
Commodity purchase swaps
|
|
—
|
|
|
(3
|
)
|
|
Cost of sales
(c)
|
|
(2
|
)
|
|
(4
|
)
|
|
|
Gain (Loss) on Derivatives in AOCI
|
|
|
|
Amount of Gain (Loss) Recognized in Income
|
||||||||||||
(In millions)
|
|
Six Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2017
|
|
Location of Reclassification from AOCI
(a)
|
|
Six Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2017
|
||||||||
Sales swaps
(b)
|
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
Net sales
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
Commodity purchase swaps
|
|
(7
|
)
|
|
(3
|
)
|
|
Cost of sales
(c)
|
|
1
|
|
|
(3
|
)
|
|
|
|
Amount of Gain (Loss) Recognized in Income
|
||||||
(In millions)
|
Consolidated Statement of Operations Location
|
|
Three Months Ended June 30, 2018
|
|
Three Months Ended June 30, 2017
|
||||
Sales swaps
(a)
|
Net sales
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
Foreign exchange forwards
|
Other financial costs
|
|
19
|
|
|
(11
|
)
|
|
|
|
Amount of Gain (Loss) Recognized in Income
|
||||||
(In millions)
|
Consolidated Statement of Operations Location
|
|
Six Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2017
|
||||
Sales swaps
(a)
|
Net sales
|
|
$
|
—
|
|
|
$
|
2
|
|
Commodity purchase swaps
|
Cost of sales
|
|
—
|
|
|
3
|
|
||
Foreign exchange forwards
|
Other financial costs
|
|
13
|
|
|
(13
|
)
|
(In millions)
|
|
Interest
Rates %
|
|
Maturity
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
2037 Senior Notes
|
|
6.650
|
|
2037
|
|
$
|
350
|
|
|
$
|
350
|
|
2026 Senior Notes
|
|
6.250
|
|
2026
|
|
650
|
|
|
—
|
|
||
2025 Senior Notes
|
|
6.875
|
|
2025
|
|
750
|
|
|
750
|
|
||
2021 Senior Secured Notes
|
|
8.375
|
|
2021
|
|
—
|
|
|
780
|
|
||
2020 Senior Notes
|
|
7.375
|
|
2020
|
|
401
|
|
|
432
|
|
||
Environmental Revenue Bonds
|
|
5.750 - 6.875
|
|
2019 - 2042
|
|
400
|
|
|
400
|
|
||
Fairfield Caster Lease
|
|
|
|
2022
|
|
23
|
|
|
24
|
|
||
Other capital leases and all other obligations
|
|
|
|
2019
|
|
1
|
|
|
1
|
|
||
Fourth Amended and Restated Credit Agreement
|
|
Variable
|
|
2023
|
|
—
|
|
|
—
|
|
||
Third Amended and Restated Credit Agreement
|
|
Variable
|
|
2020
|
|
—
|
|
|
—
|
|
||
USSK Credit Agreement
|
|
Variable
|
|
2021
|
|
—
|
|
|
—
|
|
||
USSK credit facilities
|
|
Variable
|
|
2018
|
|
—
|
|
|
—
|
|
||
Total Debt
|
|
|
|
|
|
2,575
|
|
|
2,737
|
|
||
Less unamortized discount and debt issuance costs
|
|
|
|
|
|
30
|
|
|
34
|
|
||
Less short-term debt and long-term debt due within one year
|
|
|
|
|
|
4
|
|
|
3
|
|
||
Long-term debt
|
|
|
|
|
|
$
|
2,541
|
|
|
$
|
2,700
|
|
Year
|
Redemption Price
|
|
2021
|
103.125
|
%
|
2022
|
101.563
|
%
|
2023 and thereafter
|
100.000
|
%
|
(In millions)
|
|
June 30, 2018
|
|
December 31, 2017
|
|
||||
Balance at beginning of year
|
|
$
|
69
|
|
|
$
|
79
|
|
|
Obligations settled
|
|
(2
|
)
|
|
(8
|
)
|
|
||
Change in estimate of obligations
|
|
—
|
|
|
(6
|
)
|
|
||
Foreign currency translation effects
|
|
—
|
|
|
2
|
|
|
||
Accretion expense
|
|
1
|
|
|
2
|
|
|
||
Balance at end of period
|
|
$
|
68
|
|
|
$
|
69
|
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
(In millions)
|
|
Fair
Value |
|
Carrying
Amount |
|
Fair
Value |
|
Carrying
Amount |
||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Long-term debt
(a)
|
|
$
|
2,567
|
|
|
$
|
2,517
|
|
|
$
|
2,851
|
|
|
$
|
2,678
|
|
Six Months Ended June 30, 2018 (In millions)
|
|
Total
|
|
Retained Earnings
|
|
Accumulated
Other Comprehensive (Loss) Income |
|
Common
Stock |
|
Treasury
Stock |
|
Paid-in
Capital |
|
Non-
Controlling Interest |
||||||||||||||
Balance at beginning of year
|
|
$
|
3,321
|
|
|
$
|
133
|
|
|
$
|
(845
|
)
|
|
$
|
176
|
|
|
$
|
(76
|
)
|
|
$
|
3,932
|
|
|
$
|
1
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net earnings
|
|
232
|
|
|
232
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pension and other benefit adjustments
|
|
93
|
|
|
|
|
93
|
|
|
|
|
|
|
|
|
|
||||||||||||
Currency translation adjustment
|
|
(47
|
)
|
|
|
|
(47
|
)
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative financial instruments
|
|
(19
|
)
|
|
|
|
(19
|
)
|
|
|
|
|
|
|
|
|
||||||||||||
Employee stock plans
|
|
44
|
|
|
|
|
|
|
1
|
|
|
75
|
|
|
(32
|
)
|
|
|
||||||||||
Dividends paid on common stock
|
|
(18
|
)
|
|
(18
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at June 30, 2018
|
|
$
|
3,606
|
|
|
$
|
347
|
|
|
$
|
(818
|
)
|
|
$
|
177
|
|
|
$
|
(1
|
)
|
|
$
|
3,900
|
|
|
$
|
1
|
|
Six Months Ended June 30, 2017 (In millions)
|
|
Total
|
|
Accumulated Deficit
|
|
Accumulated
Other Comprehensive (Loss) Income |
|
Common
Stock |
|
Treasury
Stock |
|
Paid-in
Capital |
|
Non-
Controlling Interest |
||||||||||||||
Balance at beginning of year
|
|
$
|
2,275
|
|
|
$
|
(250
|
)
|
|
$
|
(1,497
|
)
|
|
$
|
176
|
|
|
$
|
(182
|
)
|
|
$
|
4,027
|
|
|
$
|
1
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net earnings
|
|
81
|
|
|
81
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pension and other benefit adjustments
|
|
92
|
|
|
|
|
92
|
|
|
|
|
|
|
|
|
|
||||||||||||
Currency translation adjustment
|
|
105
|
|
|
|
|
105
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative financial instruments
|
|
(3
|
)
|
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
||||||||||||
Employee stock plans
|
|
19
|
|
|
|
|
|
|
|
|
86
|
|
|
(67
|
)
|
|
|
|||||||||||
Dividends paid on common stock
|
|
(18
|
)
|
|
|
|
|
|
|
|
|
|
|
(18
|
)
|
|
|
|||||||||||
Other
|
|
4
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance at June 30, 2017
|
|
$
|
2,555
|
|
|
$
|
(165
|
)
|
|
$
|
(1,303
|
)
|
|
$
|
176
|
|
|
$
|
(96
|
)
|
|
$
|
3,942
|
|
|
$
|
1
|
|
(In millions)
(a)
|
|
Pension and
Other Benefit Items |
|
Foreign
Currency Items |
|
Unrealized Gain (Loss) on Derivatives
|
|
Total
|
||||||||
Balance at December 31, 2017
|
|
$
|
(1,309
|
)
|
|
$
|
463
|
|
|
$
|
1
|
|
|
$
|
(845
|
)
|
Other comprehensive income before reclassifications
|
|
186
|
|
|
(47
|
)
|
|
(18
|
)
|
|
121
|
|
||||
Amounts reclassified from AOCI
(b)
|
|
(93
|
)
|
|
—
|
|
|
(1
|
)
|
|
(94
|
)
|
||||
Net current-period other comprehensive income
|
|
93
|
|
|
(47
|
)
|
|
(19
|
)
|
|
27
|
|
||||
Balance at June 30, 2018
|
|
$
|
(1,216
|
)
|
|
$
|
416
|
|
|
$
|
(18
|
)
|
|
$
|
(818
|
)
|
|
|
|
Amount reclassified from AOCI
|
||||||||||||||
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In millions)
(a)
|
Details about AOCI components
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Amortization of pension and other benefit items
|
|
|
|
|
|
|
|
|
||||||||
|
Prior service costs
(b)
|
|
$
|
(8
|
)
|
|
$
|
(7
|
)
|
|
$
|
(15
|
)
|
|
$
|
(14
|
)
|
|
Actuarial losses
(b)
|
|
(39
|
)
|
|
(38
|
)
|
|
(78
|
)
|
|
(76
|
)
|
||||
|
Settlement, termination and curtailment losses
(b)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||
|
Total pensions and other benefits items
|
|
(47
|
)
|
|
(45
|
)
|
|
(93
|
)
|
|
(94
|
)
|
||||
|
Derivative reclassifications to Consolidated Statements of Operations
|
|
2
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
|
Total before tax
|
|
(45
|
)
|
|
(45
|
)
|
|
(94
|
)
|
|
(94
|
)
|
||||
|
Tax benefit
(c)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Net of tax
|
|
$
|
(45
|
)
|
|
$
|
(45
|
)
|
|
$
|
(94
|
)
|
|
$
|
(94
|
)
|
|
|
Employee Related
|
|
Exit
|
|
|
||||||
(in millions)
|
|
Costs
|
|
Costs
|
|
Total
|
||||||
Balance at December 31, 2017
|
|
$
|
4
|
|
|
$
|
34
|
|
|
$
|
38
|
|
Cash payments/utilization
|
|
(2
|
)
|
|
(14
|
)
|
|
(16
|
)
|
|||
Balance at June 30, 2018
|
|
$
|
2
|
|
|
$
|
20
|
|
|
$
|
22
|
|
(in millions)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Accounts payable
|
|
$
|
12
|
|
|
$
|
26
|
|
Payroll and benefits payable
|
|
2
|
|
|
4
|
|
||
Deferred credits and other noncurrent liabilities
|
|
8
|
|
|
8
|
|
||
Total
|
|
$
|
22
|
|
|
$
|
38
|
|
Period ended
|
|
Opening
Number of Claims |
|
Claims
Dismissed, Settled and Resolved (a) |
|
New
Claims |
|
Closing
Number of Claims |
December 31, 2015
|
|
3,455
|
|
415
|
|
275
|
|
3,315
|
December 31, 2016
|
|
3,315
|
|
225
|
|
250
|
|
3,340
|
December 31, 2017
|
|
3,340
|
|
275
|
|
250
|
|
3,315
|
June 30, 2018
|
|
3,315
|
|
1,160
|
|
145
|
|
2,300
|
(In millions)
|
Six Months Ended June 30, 2018
|
||
Beginning of period
|
$
|
179
|
|
Accruals for environmental remediation deemed probable and reasonably estimable
|
2
|
|
|
Obligations settled
|
(2
|
)
|
|
End of period
|
$
|
179
|
|
(In millions)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Accounts payable
|
|
$
|
30
|
|
|
$
|
29
|
|
Deferred credits and other noncurrent liabilities
|
|
149
|
|
|
150
|
|
||
Total
|
|
$
|
179
|
|
|
$
|
179
|
|
(1)
|
Projects with Ongoing Study and Scope Development -
Projects which are still in the development phase. For these projects, the extent of remediation that may be required is not yet known, the remediation methods and plans are not yet developed, and/or cost estimates cannot be determined. Therefore, significant costs, in addition to the accrued liabilities for these projects, are reasonably possible. There are six environmental remediation projects where additional costs for completion are not currently estimable, but could be material. These projects are at Fairfield Works, Lorain Tubular, USS-POSCO Industries (UPI), the Fairless Plant, Cherryvale Zinc and the former steelmaking plant at Joliet, Illinois. As of
June 30, 2018
, accrued liabilities for these projects totaled
$1 million
for the costs of studies, investigations, interim measures, design and/or remediation. It is reasonably possible that additional liabilities associated with future requirements regarding studies, investigations, design and remediation for these projects could be as much as
$30 million
to
$50 million
.
|
(2)
|
Significant Projects with Defined Scope -
Projects with significant accrued liabilities with a defined scope. As of
June 30, 2018
, there are
three
significant projects with defined scope greater than or equal to
$5 million
each, with a total accrued liability of
$135 million
. These projects are Gary Resource Conservation and Recovery Act (RCRA) (accrued liability of
$26 million
), the former Geneva facility (accrued liability of
$62 million
), and the former Duluth facility St. Louis River Estuary (accrued liability of
$47 million
).
|
(3)
|
Other Projects with a Defined Scope -
Projects with relatively small accrued liabilities for which we believe that, while additional costs are possible, they are not likely to be significant, and also include those projects for which we do not yet possess sufficient information to estimate potential costs to U. S. Steel. There are
two
other environmental remediation projects which each had an accrued liability of between
$1 million
and
$5 million
. The total accrued liability for these projects at
June 30, 2018
was
$4 million
. These projects have progressed through a significant portion of the design phase and material additional costs are not expected.
|
Remainder of 2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Later
Years |
|
Total
|
$296
|
|
$579
|
|
$480
|
|
$309
|
|
$300
|
|
$1,166
|
|
$3,130
|
(In millions)
|
|
2018
|
|
2017
|
||||
Net sales
|
|
$
|
571
|
|
|
$
|
533
|
|
Cost of sales
|
|
511
|
|
|
468
|
|
||
Operating income
|
|
38
|
|
|
43
|
|
||
Net earnings
|
|
33
|
|
|
38
|
|
||
Net earnings attributable to significant equity investments
|
|
33
|
|
|
38
|
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended June 30,
|
|
|
||||||||||||||
(Dollars in millions, excluding intersegment sales)
|
|
2018
|
|
2017
|
|
%
Change
|
|
2018
|
|
2017
|
|
%
Change
|
||||||||||
Flat-Rolled Products (Flat-Rolled)
|
|
$
|
2,435
|
|
|
$
|
2,151
|
|
|
13
|
%
|
|
$
|
4,482
|
|
|
$
|
4,016
|
|
|
12
|
%
|
U. S. Steel Europe (USSE)
|
|
848
|
|
|
740
|
|
|
15
|
%
|
|
1,671
|
|
|
1,413
|
|
|
18
|
%
|
||||
Tubular Products (Tubular)
|
|
309
|
|
|
234
|
|
|
32
|
%
|
|
575
|
|
|
405
|
|
|
42
|
%
|
||||
Total sales from reportable segments
|
|
3,592
|
|
|
3,125
|
|
|
15
|
%
|
|
6,728
|
|
|
5,834
|
|
|
15
|
%
|
||||
Other Businesses
|
|
17
|
|
|
19
|
|
|
(11
|
)%
|
|
30
|
|
|
35
|
|
|
(14
|
)%
|
||||
Net sales
|
|
$
|
3,609
|
|
|
$
|
3,144
|
|
|
15
|
%
|
|
$
|
6,758
|
|
|
$
|
5,869
|
|
|
15
|
%
|
|
|
Three Months Ended
June 30, |
|
%
Change |
|
Six Months Ended June 30,
|
|
%
Change |
||||||||||||||
(Dollars in millions)
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||||||||||
Flat-Rolled
|
|
$
|
224
|
|
|
$
|
220
|
|
|
2
|
%
|
|
$
|
257
|
|
|
$
|
132
|
|
|
95
|
%
|
USSE
|
|
115
|
|
|
55
|
|
|
109
|
%
|
|
225
|
|
|
142
|
|
|
58
|
%
|
||||
Tubular
|
|
(35
|
)
|
|
(29
|
)
|
|
(21
|
)%
|
|
(62
|
)
|
|
(86
|
)
|
|
28
|
%
|
||||
Total earnings from reportable segments
|
|
304
|
|
|
246
|
|
|
24
|
%
|
|
420
|
|
|
188
|
|
|
123
|
%
|
||||
Other Businesses
|
|
17
|
|
|
9
|
|
|
89
|
%
|
|
28
|
|
|
22
|
|
|
27
|
%
|
||||
Segment earnings before interest and income taxes
|
|
321
|
|
|
255
|
|
|
26
|
%
|
|
448
|
|
|
210
|
|
|
113
|
%
|
||||
Items not allocated to segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gain on equity investee transactions
|
|
18
|
|
|
—
|
|
|
|
|
|
18
|
|
|
—
|
|
|
|
|||||
Granite City Works restart costs
|
|
(36
|
)
|
|
—
|
|
|
|
|
|
(36
|
)
|
|
—
|
|
|
|
|||||
Granite City Works adjustment to temporary idling charges
|
|
(2
|
)
|
|
—
|
|
|
|
|
|
8
|
|
|
—
|
|
|
|
|||||
Gain associated with retained interest in U. S. Steel Canada Inc.
|
|
—
|
|
|
72
|
|
|
|
|
|
—
|
|
|
72
|
|
|
|
|||||
Loss on shutdown of certain tubular assets
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
(35
|
)
|
|
|
|||||
Total earnings before interest and income taxes
|
|
$
|
301
|
|
|
$
|
327
|
|
|
(8
|
)%
|
|
$
|
438
|
|
|
$
|
247
|
|
|
77
|
%
|
|
|
Three Months Ended
June 30, |
|
%
Change |
|
Six Months Ended June 30,
|
|
%
Change |
||||||||||||||
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||||||||||
Earnings before interest and taxes ($ millions)
|
|
$
|
224
|
|
|
$
|
220
|
|
|
2
|
%
|
|
$
|
257
|
|
|
$
|
132
|
|
|
95
|
%
|
Gross margin
|
|
15
|
%
|
|
15
|
%
|
|
—
|
%
|
|
12
|
%
|
|
9
|
%
|
|
3
|
%
|
||||
Raw steel production (mnt)
|
|
2,841
|
|
|
2,711
|
|
|
5
|
%
|
|
5,626
|
|
|
5,425
|
|
|
4
|
%
|
||||
Capability utilization
|
|
67
|
%
|
|
64
|
%
|
|
3
|
%
|
|
67
|
%
|
|
64
|
%
|
|
3
|
%
|
||||
Steel shipments (mnt)
|
|
2,584
|
|
|
2,497
|
|
|
3
|
%
|
|
5,118
|
|
|
4,901
|
|
|
4
|
%
|
||||
Average realized steel price per ton
|
|
$
|
819
|
|
|
$
|
742
|
|
|
10
|
%
|
|
$
|
780
|
|
|
$
|
731
|
|
|
7
|
%
|
|
|
Three Months Ended
June 30, |
|
%
Change |
|
Six Months Ended June 30,
|
|
%
Change |
||||||||||||||
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||||||||||
Earnings before interest and taxes ($ millions)
|
|
$
|
115
|
|
|
$
|
55
|
|
|
109
|
%
|
|
$
|
225
|
|
|
$
|
142
|
|
|
58
|
%
|
Gross margin
|
|
18
|
%
|
|
11
|
%
|
|
7
|
%
|
|
17
|
%
|
|
14
|
%
|
|
3
|
%
|
||||
Raw steel production (mnt)
|
|
1,308
|
|
|
1,285
|
|
|
2
|
%
|
|
2,600
|
|
|
2,543
|
|
|
2
|
%
|
||||
Capability utilization
|
|
105
|
%
|
|
103
|
%
|
|
2
|
%
|
|
105
|
%
|
|
103
|
%
|
|
2
|
%
|
||||
Steel shipments (mnt)
|
|
1,156
|
|
|
1,157
|
|
|
—
|
%
|
|
2,283
|
|
|
2,266
|
|
|
1
|
%
|
||||
Average realized steel price per ton
|
|
$
|
707
|
|
|
$
|
620
|
|
|
14
|
%
|
|
$
|
707
|
|
|
$
|
607
|
|
|
16
|
%
|
|
|
Three Months Ended
June 30, |
|
%
Change |
|
Six Months Ended June 30,
|
|
%
Change |
||||||||||||||
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||||||||||
Loss before interest and taxes ($ millions)
|
|
$
|
(35
|
)
|
|
$
|
(29
|
)
|
|
(21
|
)%
|
|
$
|
(62
|
)
|
|
$
|
(86
|
)
|
|
28
|
%
|
Gross margin
|
|
(5
|
)%
|
|
(5
|
)%
|
|
—
|
%
|
|
(5
|
)%
|
|
(11
|
)%
|
|
6
|
%
|
||||
Steel shipments (mnt)
|
|
201
|
|
|
180
|
|
|
12
|
%
|
|
382
|
|
|
324
|
|
|
18
|
%
|
||||
Average realized steel price per ton
|
|
$
|
1,449
|
|
|
$
|
1,234
|
|
|
17
|
%
|
|
$
|
1,420
|
|
|
$
|
1,173
|
|
|
21
|
%
|
|
|
Three Months Ended
June 30, |
|
%
Change
|
|
Six Months Ended June 30,
|
|
%
Change |
||||||||||||||
(Dollars in millions)
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||||||||||
Interest expense
|
|
$
|
43
|
|
|
$
|
55
|
|
|
(22
|
)%
|
|
$
|
93
|
|
|
$
|
113
|
|
|
(18
|
)%
|
Interest income
|
|
(5
|
)
|
|
(4
|
)
|
|
25
|
%
|
|
(10
|
)
|
|
(8
|
)
|
|
25
|
%
|
||||
Loss on debt extinguishment
|
|
28
|
|
|
1
|
|
|
100
|
%
|
|
74
|
|
|
1
|
|
|
100
|
%
|
||||
Other financial costs
|
|
(8
|
)
|
|
16
|
|
|
(150
|
)%
|
|
2
|
|
|
25
|
|
|
(92
|
)%
|
||||
Net periodic benefit cost (other than service cost)
|
|
17
|
|
|
14
|
|
|
21
|
%
|
|
34
|
|
|
32
|
|
|
6
|
%
|
||||
Total net interest and other financial costs
|
|
$
|
75
|
|
|
$
|
82
|
|
|
(9
|
)%
|
|
$
|
193
|
|
|
$
|
163
|
|
|
18
|
%
|
|
|
Three Months Ended
June 30, |
|
Twelve Months Ended
June 30, |
||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Accounts Receivable Turnover
|
|
2.2
|
|
|
2.2
|
|
|
8.5
|
|
|
8.3
|
|
Inventory Turnover
|
|
1.7
|
|
|
1.6
|
|
|
6.4
|
|
|
5.9
|
|
Cash Conversion Cycle
|
2018
|
|
|
2017
|
||||||||
|
$ millions
|
|
Days
|
|
|
$ millions
|
|
Days
|
||||
Accounts receivable, net
(a)
|
$
|
1,656
|
|
|
41
|
|
|
$
|
1,379
|
|
|
43
|
|
|
|
|
|
|
|
|
|
||||
+ Inventories
(b)
|
$
|
1,848
|
|
|
53
|
|
|
$
|
1,738
|
|
|
58
|
|
|
|
|
|
|
|
|
|
||||
- Accounts Payable and Other Accrued Liabilities
(c)
|
$
|
2,318
|
|
|
65
|
|
|
$
|
2,163
|
|
|
71
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
= Cash Conversion Cycle
(d)
|
|
|
29
|
|
|
|
|
30
|
(Dollars in millions)
|
|
|
||
|
Cash and cash equivalents
|
$
|
1,231
|
|
|
Amount available under $1.5 Billion Credit Facility Agreement
|
1,500
|
|
|
|
Amount available under USSK credit facilities
|
290
|
|
|
|
Total estimated liquidity
|
$
|
3,021
|
|
UNITED STATES STEEL CORPORATION
|
||||||||||
RECONCILIATION OF ADJUSTED EBITDA GUIDANCE
|
||||||||||
|
|
|
Year Ended
|
Year Ended
|
||||||
|
|
Quarter Ended
|
Dec. 31
|
Dec. 31
|
||||||
|
|
Sept. 30
|
2018
|
2018
|
||||||
(Dollars in millions)
|
2018
|
(Low end of range)
|
(High end of range)
|
|||||||
Reconciliation to Projected Adjusted EBITDA Included in Guidance
|
|
|
|
|||||||
|
Projected net earnings attributable to United States Steel Corporation included in Guidance
|
$
|
288
|
|
$
|
925
|
|
$
|
975
|
|
|
Estimated income tax expense
|
22
|
|
50
|
|
50
|
|
|||
|
Estimated net interest and other financial costs
|
61
|
|
315
|
|
315
|
|
|||
|
Estimated depreciation, depletion and amortization
|
129
|
|
520
|
|
520
|
|
|||
|
Gain on equity investee transactions
|
—
|
|
(18
|
)
|
(18
|
)
|
|||
|
Granite City Works blast furnace B restart costs
|
—
|
|
36
|
|
36
|
|
|||
|
Estimated Granite City Works blast furnace A restart costs
|
25
|
|
30
|
|
30
|
|
|||
|
Granite City works adjustment to temporary idling charges
|
—
|
|
(8
|
)
|
(8
|
)
|
|||
|
Projected adjusted EBITDA included in Guidance
|
$
|
525
|
|
$
|
1,850
|
|
$
|
1,900
|
|
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 4.
|
CONTROLS AND PROCEDURES
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended June 30,
|
||||||||||||
(Dollars in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
SEGMENT EARNINGS (LOSS) BEFORE INTEREST AND INCOME TAXES:
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled
|
|
$
|
224
|
|
|
$
|
220
|
|
|
$
|
257
|
|
|
$
|
132
|
|
U. S. Steel Europe
|
|
115
|
|
|
55
|
|
|
225
|
|
|
142
|
|
||||
Tubular
|
|
(35
|
)
|
|
(29
|
)
|
|
(62
|
)
|
|
(86
|
)
|
||||
Total reportable segments
|
|
304
|
|
|
246
|
|
|
420
|
|
|
188
|
|
||||
Other Businesses
|
|
17
|
|
|
9
|
|
|
28
|
|
|
22
|
|
||||
Items not allocated to segments:
|
|
|
|
|
|
|
|
|
||||||||
Gain on equity investee transactions
|
|
18
|
|
|
—
|
|
|
18
|
|
|
—
|
|
||||
Granite City Works restart costs
|
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
||||
Granite City Works adjustment to temporary idling charges
|
|
(2
|
)
|
|
—
|
|
|
8
|
|
|
—
|
|
||||
Gain associated with retained interest in U. S. Steel Canada Inc.
|
|
—
|
|
|
72
|
|
|
—
|
|
|
72
|
|
||||
Loss on shutdown of certain tubular assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
||||
Total earnings before interest and income taxes
|
|
$
|
301
|
|
|
$
|
327
|
|
|
$
|
438
|
|
|
$
|
247
|
|
CAPITAL EXPENDITURES
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled
|
|
$
|
142
|
|
|
$
|
47
|
|
|
318
|
|
|
72
|
|
||
U. S. Steel Europe
|
|
17
|
|
|
20
|
|
|
38
|
|
|
34
|
|
||||
Tubular
|
|
13
|
|
|
4
|
|
|
24
|
|
|
11
|
|
||||
Other Businesses
|
|
1
|
|
|
2
|
|
|
1
|
|
|
3
|
|
||||
Total
|
|
$
|
173
|
|
|
$
|
73
|
|
|
$
|
381
|
|
|
$
|
120
|
|
OPERATING STATISTICS
|
|
|
|
|
|
|
|
|
||||||||
Average realized price: ($/net ton)
(a)
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled
|
|
$
|
819
|
|
|
$
|
742
|
|
|
780
|
|
|
731
|
|
||
U. S. Steel Europe
|
|
707
|
|
|
620
|
|
|
707
|
|
|
607
|
|
||||
Tubular
|
|
1,449
|
|
|
1,234
|
|
|
1,420
|
|
|
1,173
|
|
||||
Steel Shipments:
(a)(b)
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled
|
|
2,584
|
|
|
2,497
|
|
|
5,118
|
|
|
4,901
|
|
||||
U. S. Steel Europe
|
|
1,156
|
|
|
1,157
|
|
|
2,283
|
|
|
2,266
|
|
||||
Tubular
|
|
201
|
|
|
180
|
|
|
382
|
|
|
324
|
|
||||
Intersegment Shipments:
(b)
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled to Tubular
|
|
65
|
|
|
94
|
|
|
132
|
|
|
94
|
|
||||
U. S. Steel Europe to Flat-Rolled
|
|
22
|
|
|
25
|
|
|
22
|
|
|
47
|
|
||||
Raw Steel Production:
(b)
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled
|
|
2,841
|
|
|
2,711
|
|
|
5,626
|
|
|
5,425
|
|
||||
U. S. Steel Europe
|
|
1,308
|
|
|
1,285
|
|
|
2,600
|
|
|
2,543
|
|
||||
Raw Steel Capability Utilization:
(c)
|
|
|
|
|
|
|
|
|
||||||||
Flat-Rolled
|
|
67
|
%
|
|
64
|
%
|
|
67
|
%
|
|
64
|
%
|
||||
U. S. Steel Europe
|
|
105
|
%
|
|
103
|
%
|
|
105
|
%
|
|
103
|
%
|
(a)
|
Excludes intersegment transfers.
|
(b)
|
Thousands of net tons.
|
(c)
|
Based on annual raw steel production capability of 17.0 million net tons for Flat-Rolled and 5.0 million net tons for USSE.
|
Period ended
|
|
Opening
Number of Claims |
|
Claims
Dismissed, Settled and Resolved (a) |
|
New
Claims |
|
Closing
Number of Claims |
December 31, 2015
|
|
3,455
|
|
415
|
|
275
|
|
3,315
|
December 31, 2016
|
|
3,315
|
|
225
|
|
250
|
|
3,340
|
December 31, 2017
|
|
3,340
|
|
275
|
|
250
|
|
3,315
|
June 30, 2018
|
|
3,315
|
|
1,160
|
|
145
|
|
2,300
|
Period
|
|
(a) Total Number of Shares (or Units) Purchased
|
|
(b)
Average Price Paid per Share (or Unit)
|
|
(c)
Total Number of Shares (or Units) Purchased as Part of Publicly Announced
Plans or Programs
|
|
(d)
Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the
Plans or Programs
|
||
June 1, 2018 - June 30, 2018
|
|
3,137
|
|
$
|
37.615
|
|
|
—
|
|
—
|
Item 4.
|
MINE SAFETY DISCLOSURES
|
Item 5.
|
OTHER INFORMATION
|
Item 6.
|
EXHIBITS
|
|
|
|
10.1
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
95
|
|
|
|
|
|
101 INS
|
|
XBRL Instance Document
|
|
|
|
101 SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101 CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101 DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101 LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101 PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
UNITED STATES STEEL CORPORATION
|
||
|
|
|
By
|
|
/s/ Colleen M. Darragh
|
|
|
|
|
|
Colleen M. Darragh
|
|
|
Vice President & Controller
|
1.
|
I have reviewed this quarterly report on Form 10-Q of United States Steel Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
August 2, 2018
|
|
/s/ David B. Burritt
|
|
|
David B. Burritt
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of United States Steel Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
August 2, 2018
|
|
/s/ Kevin P. Bradley
|
|
|
Kevin P. Bradley
|
|
|
Executive Vice President
|
|
|
and Chief Financial Officer
|
(1)
|
The Quarterly Report on Form 10-Q of United States Steel Corporation for the period ending
June 30, 2018
, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the foregoing report fairly presents, in all material respects, the financial condition and results of operations of United States Steel Corporation.
|
/s/ David B. Burritt
|
David B. Burritt
|
President and Chief Executive Officer
|
(1)
|
The Quarterly Report on Form 10-Q of United States Steel Corporation for the period ending
June 30, 2018
, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the foregoing report fairly presents, in all material respects, the financial condition and results of operations of United States Steel Corporation.
|
/s/ Kevin P. Bradley
|
Kevin P. Bradley
|
Executive Vice President
|
and Chief Financial Officer
|
Mine (Federal Mine Safety and
Health Administration (MSHA) ID)
|
Total # of
Significant &
Substantial
violations
under
§104(a)
(a)
|
|
Total # of
orders
under
§104(b)
(a)
|
|
Total # of
unwarrantable
failure
citations and
orders under
§104(d) (a) |
|
Total # of
violations
under
§110(b)(2)
(a)
|
|
Total # of
orders
under
§107(a)
(a)
|
|
Total dollar
value of
proposed
assessments
from
MSHA
|
|
Total # of
mining
related
fatalities
|
|
Received
Notice of
Pattern of
Violations
under
§104(e)
(a)
(yes/no)?
|
|
Received Notice
of Potential to
have Pattern
under
§104(e)
(a)
(yes/no)?
|
|
Total # of Legal
Actions Pending
with the Mine
Safety and
Health Review
Commission as
of Last Day of
Period (b) |
|
Legal
Actions
Initiated
During
Period
|
|
Legal
Actions
Resolved
During
Period
|
|
Mt. Iron
(2100820, 2100282)
|
20
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
$162,848
|
|
—
|
|
no
|
|
no
|
|
120
|
|
45
|
|
93
|
Keewatin
(2103352)
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
$28,637
|
|
—
|
|
no
|
|
no
|
|
32
|
|
23
|
|
10
|
(a)
|
References to Section numbers are to sections of the Federal Mine Safety and Health Act of 1977.
|
(b)
|
Includes all legal actions pending before the Federal Mine Safety and Health Review Commission, together with the Administrative Law Judges thereof, for each of our iron ore operations. These actions may have been initiated in prior quarters. All of the legal actions were initiated by us to contest citations, orders or proposed assessments issued by the Federal Mine Safety and Health administration, and if we are successful, may result in the reduction or dismissal of those citations, orders or assessments. As of the last day of the period, all 152 legal actions were to contest citations and proposed assessments.
|