000076406512/312021Q2false00007640652021-01-012021-06-30xbrli:shares00007640652021-07-26iso4217:USD00007640652021-06-3000007640652020-12-31iso4217:USDxbrli:shares00007640652021-04-012021-06-3000007640652020-04-012020-06-3000007640652020-01-012020-06-300000764065clf:AKSteelMember2021-01-012021-06-300000764065clf:AKSteelMember2020-01-012020-06-300000764065clf:ArcelorMittalUSAMember2021-01-012021-06-300000764065clf:ArcelorMittalUSAMember2020-01-012020-06-3000007640652019-12-3100007640652020-06-300000764065us-gaap:CommonStockMember2020-12-310000764065us-gaap:AdditionalPaidInCapitalMember2020-12-310000764065us-gaap:RetainedEarningsMember2020-12-310000764065us-gaap:TreasuryStockMember2020-12-310000764065us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000764065us-gaap:NoncontrollingInterestMember2020-12-310000764065us-gaap:RetainedEarningsMember2021-01-012021-03-310000764065us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000764065us-gaap:NoncontrollingInterestMember2021-01-012021-03-3100007640652021-01-012021-03-310000764065us-gaap:CommonStockMember2021-01-012021-03-310000764065us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000764065us-gaap:TreasuryStockMember2021-01-012021-03-310000764065us-gaap:CommonStockMember2021-03-310000764065us-gaap:AdditionalPaidInCapitalMember2021-03-310000764065us-gaap:RetainedEarningsMember2021-03-310000764065us-gaap:TreasuryStockMember2021-03-310000764065us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000764065us-gaap:NoncontrollingInterestMember2021-03-3100007640652021-03-310000764065us-gaap:RetainedEarningsMember2021-04-012021-06-300000764065us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000764065us-gaap:NoncontrollingInterestMember2021-04-012021-06-300000764065us-gaap:CommonStockMember2021-04-012021-06-300000764065us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300000764065us-gaap:TreasuryStockMember2021-04-012021-06-300000764065us-gaap:CommonStockMember2021-06-300000764065us-gaap:AdditionalPaidInCapitalMember2021-06-300000764065us-gaap:RetainedEarningsMember2021-06-300000764065us-gaap:TreasuryStockMember2021-06-300000764065us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000764065us-gaap:NoncontrollingInterestMember2021-06-300000764065us-gaap:CommonStockMember2019-12-310000764065us-gaap:AdditionalPaidInCapitalMember2019-12-310000764065us-gaap:RetainedEarningsMember2019-12-310000764065us-gaap:TreasuryStockMember2019-12-310000764065us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000764065us-gaap:NoncontrollingInterestMember2019-12-310000764065us-gaap:RetainedEarningsMember2020-01-012020-03-310000764065us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310000764065us-gaap:NoncontrollingInterestMember2020-01-012020-03-3100007640652020-01-012020-03-310000764065us-gaap:CommonStockMember2020-01-012020-03-310000764065us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310000764065us-gaap:TreasuryStockMember2020-01-012020-03-3100007640652019-10-012019-12-310000764065us-gaap:CommonStockMember2020-03-310000764065us-gaap:AdditionalPaidInCapitalMember2020-03-310000764065us-gaap:RetainedEarningsMember2020-03-310000764065us-gaap:TreasuryStockMember2020-03-310000764065us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310000764065us-gaap:NoncontrollingInterestMember2020-03-3100007640652020-03-310000764065us-gaap:RetainedEarningsMember2020-04-012020-06-300000764065us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300000764065us-gaap:NoncontrollingInterestMember2020-04-012020-06-300000764065us-gaap:CommonStockMember2020-04-012020-06-300000764065us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300000764065us-gaap:TreasuryStockMember2020-04-012020-06-300000764065us-gaap:CommonStockMember2020-06-300000764065us-gaap:AdditionalPaidInCapitalMember2020-06-300000764065us-gaap:RetainedEarningsMember2020-06-300000764065us-gaap:TreasuryStockMember2020-06-300000764065us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000764065us-gaap:NoncontrollingInterestMember2020-06-30clf:segments0000764065us-gaap:OtherNoncurrentAssetsMember2021-06-300000764065us-gaap:OtherNoncurrentAssetsMember2020-12-31clf:business00007640652020-01-012020-12-310000764065us-gaap:CommonStockMemberclf:ArcelorMittalUSAMember2020-12-092020-12-090000764065us-gaap:SeriesBPreferredStockMemberclf:ArcelorMittalUSAMember2020-12-092020-12-090000764065clf:ArcelorMittalUSAMember2020-12-092020-12-090000764065us-gaap:CommonStockMemberclf:ArcelorMittalUSAMember2020-12-090000764065us-gaap:SeriesBPreferredStockMemberclf:ArcelorMittalUSAMember2020-12-090000764065clf:ArcelorMittalUSAMember2020-12-090000764065clf:ArcelorMittalUSAMember2020-12-102021-06-300000764065clf:ArcelorMittalUSAMember2021-06-300000764065us-gaap:OtherOperatingIncomeExpenseMember2021-04-012021-06-30xbrli:pure0000764065clf:AKSteelMember2020-03-132020-03-130000764065clf:AKSteelMember2020-03-130000764065us-gaap:CommonStockMemberclf:AKSteelMember2020-03-130000764065us-gaap:RevolvingCreditFacilityMemberclf:AKSteelMember2020-03-132020-03-130000764065clf:AKSteelMemberclf:A7.502023AKSeniorNotesMember2020-12-310000764065clf:A7.502023AKSeniorNotesMemberclf:AKSteelMember2020-03-132020-03-130000764065clf:AKSteelMember2020-03-142021-03-310000764065clf:AKSteelMember2021-03-310000764065us-gaap:CustomerRelationshipsMemberclf:AKSteelMember2021-01-012021-06-300000764065us-gaap:TechnologyBasedIntangibleAssetsMemberclf:AKSteelMember2021-01-012021-06-300000764065us-gaap:TrademarksAndTradeNamesMemberclf:AKSteelMember2021-01-012021-06-300000764065clf:AKSteelMember2021-06-300000764065clf:AKSteelMember2020-04-012020-06-300000764065us-gaap:IntersegmentEliminationMember2020-04-012020-06-300000764065us-gaap:IntersegmentEliminationMember2020-01-012020-06-300000764065us-gaap:FairValueAdjustmentToInventoryMember2020-04-012020-06-300000764065us-gaap:FairValueAdjustmentToInventoryMember2020-01-012020-06-300000764065us-gaap:AcquisitionRelatedCostsMember2020-04-012020-06-300000764065us-gaap:AcquisitionRelatedCostsMember2020-01-012020-06-300000764065us-gaap:SalesMemberclf:CustomerSupplyAgreementMember2020-04-012020-06-300000764065us-gaap:SalesMemberclf:CustomerSupplyAgreementMember2020-01-012020-06-300000764065clf:SteelmakingMemberclf:AutomotiveMember2021-04-012021-06-300000764065clf:SteelmakingMemberclf:AutomotiveMember2020-04-012020-06-300000764065clf:SteelmakingMemberclf:AutomotiveMember2021-01-012021-06-300000764065clf:SteelmakingMemberclf:AutomotiveMember2020-01-012020-06-300000764065clf:SteelmakingMemberclf:InfrastructureAndManufacturingMember2021-04-012021-06-300000764065clf:SteelmakingMemberclf:InfrastructureAndManufacturingMember2020-04-012020-06-300000764065clf:SteelmakingMemberclf:InfrastructureAndManufacturingMember2021-01-012021-06-300000764065clf:SteelmakingMemberclf:InfrastructureAndManufacturingMember2020-01-012020-06-300000764065clf:SteelmakingMemberclf:DistributorsAndConvertersMember2021-04-012021-06-300000764065clf:SteelmakingMemberclf:DistributorsAndConvertersMember2020-04-012020-06-300000764065clf:SteelmakingMemberclf:DistributorsAndConvertersMember2021-01-012021-06-300000764065clf:SteelmakingMemberclf:DistributorsAndConvertersMember2020-01-012020-06-300000764065clf:SteelmakingMemberclf:SteelProducersMember2021-04-012021-06-300000764065clf:SteelmakingMemberclf:SteelProducersMember2020-04-012020-06-300000764065clf:SteelmakingMemberclf:SteelProducersMember2021-01-012021-06-300000764065clf:SteelmakingMemberclf:SteelProducersMember2020-01-012020-06-300000764065clf:SteelmakingMember2021-04-012021-06-300000764065clf:SteelmakingMember2020-04-012020-06-300000764065clf:SteelmakingMember2021-01-012021-06-300000764065clf:SteelmakingMember2020-01-012020-06-300000764065clf:OtherBusinessesMemberclf:AutomotiveMember2021-04-012021-06-300000764065clf:OtherBusinessesMemberclf:AutomotiveMember2020-04-012020-06-300000764065clf:OtherBusinessesMemberclf:AutomotiveMember2021-01-012021-06-300000764065clf:OtherBusinessesMemberclf:AutomotiveMember2020-01-012020-06-300000764065clf:OtherBusinessesMemberclf:InfrastructureAndManufacturingMember2021-04-012021-06-300000764065clf:OtherBusinessesMemberclf:InfrastructureAndManufacturingMember2020-04-012020-06-300000764065clf:OtherBusinessesMemberclf:InfrastructureAndManufacturingMember2021-01-012021-06-300000764065clf:OtherBusinessesMemberclf:InfrastructureAndManufacturingMember2020-01-012020-06-300000764065clf:OtherBusinessesMemberclf:DistributorsAndConvertersMember2021-04-012021-06-300000764065clf:OtherBusinessesMemberclf:DistributorsAndConvertersMember2020-04-012020-06-300000764065clf:OtherBusinessesMemberclf:DistributorsAndConvertersMember2021-01-012021-06-300000764065clf:OtherBusinessesMemberclf:DistributorsAndConvertersMember2020-01-012020-06-300000764065clf:OtherBusinessesMember2021-04-012021-06-300000764065clf:OtherBusinessesMember2020-04-012020-06-300000764065clf:OtherBusinessesMember2021-01-012021-06-300000764065clf:OtherBusinessesMember2020-01-012020-06-300000764065clf:SteelmakingMemberclf:HotRolledSteelMember2021-04-012021-06-30utr:T0000764065clf:SteelmakingMemberclf:HotRolledSteelMember2020-04-012020-06-300000764065clf:SteelmakingMemberclf:ColdRolledSteelMember2021-04-012021-06-300000764065clf:SteelmakingMemberclf:ColdRolledSteelMember2020-04-012020-06-300000764065clf:CoatedSteelMemberclf:SteelmakingMember2021-04-012021-06-300000764065clf:CoatedSteelMemberclf:SteelmakingMember2020-04-012020-06-300000764065clf:SteelmakingMemberclf:StainlessAndElectricalSteelMember2021-04-012021-06-300000764065clf:SteelmakingMemberclf:StainlessAndElectricalSteelMember2020-04-012020-06-300000764065clf:SteelmakingMemberclf:PlateSteelMember2021-04-012021-06-300000764065clf:SteelmakingMemberclf:PlateSteelMember2020-04-012020-06-300000764065clf:SteelmakingMemberclf:OtherSteelProductsMember2021-04-012021-06-300000764065clf:SteelmakingMemberclf:OtherSteelProductsMember2020-04-012020-06-300000764065clf:SteelmakingMemberclf:IronProductsMember2021-04-012021-06-300000764065clf:SteelmakingMemberclf:IronProductsMember2020-04-012020-06-300000764065clf:SteelmakingMemberclf:OtherMember2021-04-012021-06-300000764065clf:SteelmakingMemberclf:OtherMember2020-04-012020-06-300000764065clf:OtherBusinessesMemberclf:OtherMember2021-04-012021-06-300000764065clf:OtherBusinessesMemberclf:OtherMember2020-04-012020-06-300000764065clf:SteelmakingMemberclf:HotRolledSteelMember2021-01-012021-06-300000764065clf:SteelmakingMemberclf:HotRolledSteelMember2020-01-012020-06-300000764065clf:SteelmakingMemberclf:ColdRolledSteelMember2021-01-012021-06-300000764065clf:SteelmakingMemberclf:ColdRolledSteelMember2020-01-012020-06-300000764065clf:CoatedSteelMemberclf:SteelmakingMember2021-01-012021-06-300000764065clf:CoatedSteelMemberclf:SteelmakingMember2020-01-012020-06-300000764065clf:SteelmakingMemberclf:StainlessAndElectricalSteelMember2021-01-012021-06-300000764065clf:SteelmakingMemberclf:StainlessAndElectricalSteelMember2020-01-012020-06-300000764065clf:SteelmakingMemberclf:PlateSteelMember2021-01-012021-06-300000764065clf:SteelmakingMemberclf:PlateSteelMember2020-01-012020-06-300000764065clf:SteelmakingMemberclf:OtherSteelProductsMember2021-01-012021-06-300000764065clf:SteelmakingMemberclf:OtherSteelProductsMember2020-01-012020-06-300000764065clf:SteelmakingMemberclf:IronProductsMember2021-01-012021-06-300000764065clf:SteelmakingMemberclf:IronProductsMember2020-01-012020-06-300000764065clf:SteelmakingMemberclf:OtherMember2021-01-012021-06-300000764065clf:SteelmakingMemberclf:OtherMember2020-01-012020-06-300000764065clf:OtherBusinessesMemberclf:OtherMember2021-01-012021-06-300000764065clf:OtherBusinessesMemberclf:OtherMember2020-01-012020-06-300000764065clf:CorporateandOtherSegmentsMember2021-04-012021-06-300000764065clf:CorporateandOtherSegmentsMember2020-04-012020-06-300000764065clf:CorporateandOtherSegmentsMember2021-01-012021-06-300000764065clf:CorporateandOtherSegmentsMember2020-01-012020-06-300000764065clf:EBITDACalculationMember2021-04-012021-06-300000764065clf:EBITDACalculationMember2020-04-012020-06-300000764065clf:EBITDACalculationMember2021-01-012021-06-300000764065clf:EBITDACalculationMember2020-01-012020-06-300000764065clf:AdjustedEBITDACalculationMember2021-04-012021-06-300000764065clf:AdjustedEBITDACalculationMember2020-04-012020-06-300000764065clf:AdjustedEBITDACalculationMember2021-01-012021-06-300000764065clf:AdjustedEBITDACalculationMember2020-01-012020-06-300000764065clf:SteelmakingMemberus-gaap:OperatingSegmentsMember2021-06-300000764065clf:SteelmakingMemberus-gaap:OperatingSegmentsMember2020-12-310000764065clf:OtherBusinessesMemberus-gaap:OperatingSegmentsMember2021-06-300000764065clf:OtherBusinessesMemberus-gaap:OperatingSegmentsMember2020-12-310000764065us-gaap:OperatingSegmentsMember2021-06-300000764065us-gaap:OperatingSegmentsMember2020-12-310000764065us-gaap:CorporateNonSegmentMember2021-06-300000764065us-gaap:CorporateNonSegmentMember2020-12-310000764065us-gaap:CorporateNonSegmentMember2021-04-012021-06-300000764065us-gaap:CorporateNonSegmentMember2020-04-012020-06-300000764065us-gaap:CorporateNonSegmentMember2021-01-012021-06-300000764065us-gaap:CorporateNonSegmentMember2020-01-012020-06-300000764065clf:LandlandimprovementsandmineralrightsMember2021-06-300000764065clf:LandlandimprovementsandmineralrightsMember2020-12-310000764065us-gaap:BuildingMember2021-06-300000764065us-gaap:BuildingMember2020-12-310000764065us-gaap:EquipmentMember2021-06-300000764065us-gaap:EquipmentMember2020-12-310000764065us-gaap:OtherAssetsMember2021-06-300000764065us-gaap:OtherAssetsMember2020-12-310000764065us-gaap:ConstructionInProgressMember2021-06-300000764065us-gaap:ConstructionInProgressMember2020-12-310000764065clf:SteelmakingMember2021-06-300000764065clf:SteelmakingMember2020-12-310000764065clf:OtherBusinessesMember2021-06-300000764065clf:OtherBusinessesMember2020-12-310000764065us-gaap:CustomerRelationshipsMember2021-06-300000764065us-gaap:CustomerRelationshipsMember2020-12-310000764065us-gaap:TechnologyBasedIntangibleAssetsMember2021-06-300000764065us-gaap:TechnologyBasedIntangibleAssetsMember2020-12-310000764065us-gaap:TrademarksAndTradeNamesMember2021-06-300000764065us-gaap:TrademarksAndTradeNamesMember2020-12-310000764065clf:MiningPermitsMember2021-06-300000764065clf:MiningPermitsMember2020-12-310000764065clf:A98752025SeniorSecuredNotesMemberclf:ClevelandCliffsInc.Member2021-06-300000764065clf:A6.752026SeniorSecuredNotesMemberclf:ClevelandCliffsInc.Member2021-06-300000764065clf:A1.502025ConvertibleSeniorNotesMemberclf:ClevelandCliffsInc.Member2021-06-300000764065clf:A7.002027SeniorNotesMemberclf:ClevelandCliffsInc.Member2021-06-300000764065clf:AKSteelMemberclf:A7002027AKSeniorNotesMember2021-06-300000764065clf:A5.8752027SeniorNotesMemberclf:ClevelandCliffsInc.Member2021-06-300000764065clf:A46252029SeniorNotesMemberclf:ClevelandCliffsInc.Member2021-06-300000764065clf:ClevelandCliffsInc.Memberclf:A48752031SeniorNotesMember2021-06-300000764065clf:A6.252040SeniorNotesMemberclf:ClevelandCliffsInc.Member2021-06-300000764065clf:AKSteelMemberclf:IndustrialRevenueBondsMember2021-06-300000764065clf:EDCRevolvingCreditFacilityMemberclf:ClevelandCliffsInc.Member2021-06-300000764065us-gaap:RevolvingCreditFacilityMemberclf:ClevelandCliffsInc.Member2021-06-300000764065us-gaap:RevolvingCreditFacilityMemberclf:ClevelandCliffsInc.Member2021-06-300000764065clf:A4.8752024SeniorSecuredNotesMemberclf:ClevelandCliffsInc.Member2020-12-310000764065clf:A98752025SeniorSecuredNotesMemberclf:ClevelandCliffsInc.Member2020-12-310000764065clf:A6.752026SeniorSecuredNotesMemberclf:ClevelandCliffsInc.Member2020-12-310000764065clf:AKSteelMemberclf:A7.6252021AKSeniorNotesMember2020-12-310000764065clf:A6.3752025SeniorNotesMemberclf:ClevelandCliffsInc.Member2020-12-310000764065clf:AKSteelMemberclf:A63752025AKSeniorNotesMember2020-12-310000764065clf:A1.502025ConvertibleSeniorNotesMemberclf:ClevelandCliffsInc.Member2020-12-310000764065clf:A5.752025SeniorNotesMemberclf:ClevelandCliffsInc.Member2020-12-310000764065clf:A7.002027SeniorNotesMemberclf:ClevelandCliffsInc.Member2020-12-310000764065clf:AKSteelMemberclf:A7002027AKSeniorNotesMember2020-12-310000764065clf:A5.8752027SeniorNotesMemberclf:ClevelandCliffsInc.Member2020-12-310000764065clf:A6.252040SeniorNotesMemberclf:ClevelandCliffsInc.Member2020-12-310000764065clf:AKSteelMemberclf:IndustrialRevenueBondsMember2020-12-310000764065clf:ClevelandCliffsInc.Member2020-12-310000764065clf:EDCRevolvingCreditFacilityMemberclf:ClevelandCliffsInc.Member2020-12-310000764065us-gaap:RevolvingCreditFacilityMemberclf:ClevelandCliffsInc.Member2020-12-310000764065us-gaap:RevolvingCreditFacilityMemberclf:ClevelandCliffsInc.Member2020-12-310000764065clf:A5.752025SeniorNotesMember2021-04-012021-06-300000764065clf:A98752025SeniorSecuredNotesMember2021-04-012021-06-300000764065clf:A98752025SeniorSecuredNotesMember2021-03-112021-03-1100007640652021-02-110000764065us-gaap:SeniorNotesMember2021-03-122021-03-120000764065clf:A98752025SeniorSecuredNotesMember2021-01-012021-06-300000764065clf:A4.8752024SeniorSecuredNotesMember2021-04-012021-06-300000764065clf:A4.8752024SeniorSecuredNotesMember2021-01-012021-06-300000764065clf:A7.6252021AKSeniorNotesMember2021-04-012021-06-300000764065clf:A7.6252021AKSeniorNotesMember2021-01-012021-06-300000764065clf:A7.502023AKSeniorNotesMember2021-04-012021-06-300000764065clf:A7.502023AKSeniorNotesMember2021-01-012021-06-300000764065clf:A6.3752025SeniorNotesMember2021-04-012021-06-300000764065clf:A6.3752025SeniorNotesMember2021-01-012021-06-300000764065clf:A63752025AKSeniorNotesMember2021-04-012021-06-300000764065clf:A63752025AKSeniorNotesMember2021-01-012021-06-300000764065clf:A5.752025SeniorNotesMember2021-01-012021-06-3000007640652020-04-242020-04-240000764065us-gaap:SeniorNotesMember2020-04-012020-06-300000764065clf:IndustrialRevenueBondsMember2020-06-012020-06-010000764065clf:A7.6252021AKSeniorNotesMember2020-03-132020-03-130000764065clf:A7.502023AKSeniorNotesMember2020-03-132020-03-130000764065clf:A7.6252021AKSeniorNotesMember2020-03-272020-03-270000764065clf:A7.502023AKSeniorNotesMember2020-03-272020-03-270000764065clf:A7.6252021AKSeniorNotesMember2020-04-012020-06-300000764065clf:A7.6252021AKSeniorNotesMember2020-01-012020-06-300000764065clf:A7.502023AKSeniorNotesMember2020-04-012020-06-300000764065clf:A7.502023AKSeniorNotesMember2020-01-012020-06-300000764065clf:A4.8752024SeniorSecuredNotesMember2020-04-012020-06-300000764065clf:A4.8752024SeniorSecuredNotesMember2020-01-012020-06-300000764065clf:A6.3752025SeniorNotesMember2020-04-012020-06-300000764065clf:A6.3752025SeniorNotesMember2020-01-012020-06-300000764065clf:A1.502025ConvertibleSeniorNotesMember2020-04-012020-06-300000764065clf:A1.502025ConvertibleSeniorNotesMember2020-01-012020-06-300000764065clf:A5.752025SeniorNotesMember2020-04-012020-06-300000764065clf:A5.752025SeniorNotesMember2020-01-012020-06-300000764065clf:A7.002027SeniorNotesMember2020-04-012020-06-300000764065clf:A7.002027SeniorNotesMember2020-01-012020-06-300000764065clf:A5.8752027SeniorNotesMember2020-04-012020-06-300000764065clf:A5.8752027SeniorNotesMember2020-01-012020-06-300000764065clf:A6.252040SeniorNotesMember2020-04-012020-06-300000764065clf:A6.252040SeniorNotesMember2020-01-012020-06-300000764065us-gaap:RevolvingCreditFacilityMember2021-01-012021-06-300000764065us-gaap:RevolvingCreditFacilityMember2021-06-300000764065us-gaap:LetterOfCreditMember2021-06-300000764065us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SeniorNotesMember2021-06-300000764065us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2021-06-300000764065us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SeniorNotesMember2020-12-310000764065us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2020-12-310000764065us-gaap:CarryingReportedAmountFairValueDisclosureMemberclf:IndustrialRevenueBondsMemberus-gaap:FairValueInputsLevel1Member2021-06-300000764065clf:IndustrialRevenueBondsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300000764065us-gaap:CarryingReportedAmountFairValueDisclosureMemberclf:IndustrialRevenueBondsMemberus-gaap:FairValueInputsLevel1Member2020-12-310000764065clf:IndustrialRevenueBondsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310000764065us-gaap:CarryingReportedAmountFairValueDisclosureMemberclf:EDCRevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2021-06-300000764065clf:EDCRevolvingCreditFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2021-06-300000764065us-gaap:CarryingReportedAmountFairValueDisclosureMemberclf:EDCRevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2020-12-310000764065clf:EDCRevolvingCreditFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2020-12-310000764065us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2021-06-300000764065us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2021-06-300000764065us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2020-12-310000764065us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2020-12-310000764065us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300000764065us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300000764065us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310000764065us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310000764065us-gaap:PensionPlansDefinedBenefitMember2021-04-012021-06-300000764065us-gaap:PensionPlansDefinedBenefitMember2020-04-012020-06-300000764065us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-06-300000764065us-gaap:PensionPlansDefinedBenefitMember2020-01-012020-06-300000764065us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-04-012021-06-300000764065us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-04-012020-06-300000764065us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-06-300000764065us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-012020-06-300000764065us-gaap:PensionPlansDefinedBenefitMember2021-01-042021-01-040000764065clf:ArcelorMittalMember2021-02-110000764065us-gaap:CommonStockMember2021-02-110000764065us-gaap:CommonStockMemberclf:AKSteelMember2021-01-012021-06-300000764065us-gaap:CommonStockMemberclf:AKSteelMember2020-03-132020-03-130000764065us-gaap:SeriesBPreferredStockMemberclf:ArcelorMittalUSAMember2021-01-012021-06-3000007640652021-04-290000764065us-gaap:SeriesAPreferredStockMember2021-06-300000764065us-gaap:SeriesBPreferredStockMember2021-06-3000007640652020-07-012020-09-300000764065us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-12-310000764065us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-12-310000764065us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2020-12-310000764065us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310000764065us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310000764065us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2021-01-012021-03-310000764065us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-03-310000764065us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-03-310000764065us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2021-03-310000764065us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-04-012021-06-300000764065us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-04-012021-06-300000764065us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2021-04-012021-06-300000764065us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-06-300000764065us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-06-300000764065us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2021-06-300000764065us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-12-310000764065us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2019-12-310000764065us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2019-12-310000764065us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-03-310000764065us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-03-310000764065us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2020-01-012020-03-310000764065us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-03-310000764065us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-03-310000764065us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2020-03-310000764065us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-04-012020-06-300000764065us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-04-012020-06-300000764065us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2020-04-012020-06-300000764065us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-06-300000764065us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-06-300000764065us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2020-06-300000764065us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000764065us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300000764065us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300000764065us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300000764065clf:HibbingTaconiteCompanyMember2021-06-300000764065clf:USSteelCanadaMemberclf:HibbingTaconiteCompanyMember2021-06-300000764065clf:ArcelorMittalMemberclf:HibbingTaconiteCompanyMember2020-12-090000764065clf:HibbingTaconiteCompanyMember2020-06-300000764065us-gaap:TradeAccountsReceivableMember2021-06-300000764065us-gaap:TradeAccountsReceivableMember2020-12-310000764065us-gaap:AccountsPayableMember2021-06-300000764065us-gaap:AccountsPayableMember2020-12-310000764065clf:SunCokeMiddletownMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-04-012021-06-300000764065clf:SunCokeMiddletownMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-01-012021-06-300000764065clf:SunCokeMiddletownMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-04-012020-06-300000764065clf:SunCokeMiddletownMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-01-012020-06-300000764065clf:SunCokeMiddletownMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-06-300000764065clf:SunCokeMiddletownMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-12-310000764065us-gaap:StockCompensationPlanMember2020-04-012020-06-300000764065us-gaap:StockCompensationPlanMember2020-01-012020-06-300000764065us-gaap:ConvertibleDebtSecuritiesMember2020-01-012020-06-300000764065us-gaap:ConvertibleDebtSecuritiesMember2020-04-012020-06-30clf:area00007640652012-09-2600007640652012-09-262012-09-260000764065us-gaap:SeriesBPreferredStockMemberus-gaap:SubsequentEventMember2021-07-272021-07-27
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             .
Commission File Number: 1-8944
CLF-20210630_G1.JPG
CLEVELAND-CLIFFS INC.
(Exact Name of Registrant as Specified in Its Charter)
Ohio 34-1464672
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
200 Public Square, Cleveland, Ohio 44114-2315
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, Including Area Code: (216) 694-5700
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common shares, par value $0.125 per share CLF New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes                                           No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes                                           No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes                                          No  
The number of shares outstanding of the registrant’s common shares, par value $0.125 per share, was 499,734,892 as of July 26, 2021.



TABLE OF CONTENTS
Page Number
DEFINITIONS
1
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Statements of Unaudited Condensed Consolidated Financial Position as of June 30, 2021 and December 31, 2020
3
Statements of Unaudited Condensed Consolidated Operations for the Three and Six Months Ended June 30, 2021 and 2020
4
Statements of Unaudited Condensed Consolidated Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2021 and 2020
5
Statements of Unaudited Condensed Consolidated Cash Flows for the Six Months Ended June 30, 2021 and 2020
6
Statements of Unaudited Condensed Consolidated Changes in Equity for the Three and Six Months Ended June 30, 2021 and 2020
7
Notes to Unaudited Condensed Consolidated Financial Statements
8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
Signatures


DEFINITIONS
    The following abbreviations or acronyms are used in the text. References in this report to the “Company,” “we,” “us,” “our” and “Cliffs” are to Cleveland-Cliffs Inc. and subsidiaries, collectively, unless stated otherwise or the context indicates otherwise.
Abbreviation or acronym Term
4.625% 2029 Senior Notes 4.625% Senior Guaranteed Notes due 2029 issued by Cleveland-Cliffs Inc. on February 17, 2021 in an aggregate principal amount of $500 million
4.875% 2031 Senior Notes 4.875% Senior Guaranteed Notes due 2031 issued by Cleveland-Cliffs Inc. on February 17, 2021 in an aggregate principal amount of $500 million
ABL Facility Asset-Based Revolving Credit Agreement, dated as of March 13, 2020, among Cleveland-Cliffs Inc., the lenders party thereto from time to time and Bank of America, N.A., as administrative agent, as amended as of March 27, 2020, and December 9, 2020, and as may be further amended from time to time
Acquisitions The AK Steel Merger and AM USA Transaction, together
Adjusted EBITDA EBITDA, excluding certain items such as EBITDA of noncontrolling interests, extinguishment of debt, severance, acquisition-related costs, acquisition-related loss on equity method investment, amortization of inventory step-up and impacts of discontinued operations
AK Steel AK Steel Holding Corporation (n/k/a Cleveland-Cliffs Steel Holding Corporation) and its consolidated subsidiaries, including AK Steel Corporation (n/k/a Cleveland-Cliffs Steel Corporation), its direct, wholly owned subsidiary, collectively, unless stated otherwise or the context indicates otherwise
AK Steel Merger The merger of Merger Sub with and into AK Steel, with AK Steel surviving the merger as a wholly owned subsidiary of Cleveland-Cliffs Inc., subject to the terms and conditions set forth in the AK Steel Merger Agreement, consummated on March 13, 2020
AK Steel Merger Agreement Agreement and Plan of Merger, dated as of December 2, 2019, among Cleveland-Cliffs Inc., AK Steel and Merger Sub
AM USA Transaction The acquisition of ArcelorMittal USA, consummated on December 9, 2020
AM USA Transaction Agreement Transaction Agreement, dated as of September 28, 2020, by and between Cleveland-Cliffs Inc. and ArcelorMittal
AOCI Accumulated Other Comprehensive Income (Loss)
ArcelorMittal ArcelorMittal S.A., a company organized under the laws of Luxembourg and the former ultimate parent company of ArcelorMittal USA
ArcelorMittal USA Substantially all of the operations of the former ArcelorMittal USA LLC, its subsidiaries and certain affiliates, and Kote and Tek, collectively
ASC Accounting Standards Codification
ASU Accounting Standards Update
Board The Board of Directors of Cleveland-Cliffs Inc.
CARES Act Coronavirus Aid, Relief, and Economic Security Act
CERCLA Comprehensive Environmental Response, Compensation and Liability Act of 1980
COVID-19 A novel strain of coronavirus that the World Health Organization declared a global pandemic in March 2020
Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act
EAF Electric arc furnace
EBITDA Earnings before interest, taxes, depreciation and amortization
EDC Export Development Canada
EPA U.S. Environmental Protection Agency
EPS Earnings per share
Exchange Act Securities Exchange Act of 1934, as amended
FASB Financial Accounting Standards Board
Fe Iron
FMSH Act Federal Mine Safety and Health Act of 1977, as amended
GAAP Accounting principles generally accepted in the United States
GHG Greenhouse gas
HBI Hot briquetted iron
Hibbing Iron ore mining property owned by Hibbing Taconite Company, an unincorporated joint venture between subsidiaries of Cliffs and U.S. Steel
HRC Hot-rolled coil steel
IRB Industrial Revenue Bond
Kote and Tek I/N Kote L.P. (n/k/a Cleveland-Cliffs Kote L.P.) and I/N Tek L.P. (n/k/a Cleveland-Cliffs Tek L.P.), former joint ventures between subsidiaries of the former ArcelorMittal USA LLC and Nippon Steel Corporation
Long ton 2,240 pounds
Merger Sub Pepper Merger Sub Inc., a direct, wholly owned subsidiary of Cliffs prior to the AK Steel Merger
Metric ton 2,205 pounds
MSHA U.S. Mine Safety and Health Administration
Net ton 2,000 pounds
NPDES National Pollutant Discharge Elimination System, authorized by the Clean Water Act
OPEB Other postretirement benefits
Platts 62% price Platts IODEX 62% Fe Fines CFR North China
1

Abbreviation or acronym Term
RCRA Resource Conservation and Recovery Act
RI/FS Remedial Investigation/Feasibility Study
SEC U.S. Securities and Exchange Commission
Section 232 Section 232 of the Trade Expansion Act of 1962, as amended
Securities Act Securities Act of 1933, as amended
SunCoke Middletown Middletown Coke Company, LLC, a subsidiary of SunCoke Energy, Inc.
Topic 805 ASC Topic 805, Business Combinations
Topic 815 ASC Topic 815, Derivatives and Hedging
U.S. United States of America
U.S. Steel United States Steel Corporation and its subsidiaries, collectively, unless stated otherwise or the context indicates otherwise
USMCA United States-Mexico-Canada Agreement
VIE Variable interest entity
2

PART I
Item 1.
Financial Statements
Statements of Unaudited Condensed Consolidated Financial Position
Cleveland-Cliffs Inc. and Subsidiaries
(In Millions)
June 30,
2021
December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents $ 73  $ 112 
Accounts receivable, net 2,062  1,169 
Inventories 4,280  3,828 
Other current assets 159  189 
Total current assets 6,574  5,298 
Non-current assets:
Property, plant and equipment, net 8,982  8,743 
Goodwill 1,070  1,406 
Deferred income taxes 333  537 
Other non-current assets 787  787 
TOTAL ASSETS $ 17,746  $ 16,771 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 1,665  $ 1,575 
Accrued employment costs 550  460 
Pension and OPEB liabilities, current 151  151 
Other current liabilities 620  743 
Total current liabilities 2,986  2,929 
Non-current liabilities:
Long-term debt 5,368  5,390 
Pension and OPEB liabilities, non-current 3,841  4,113 
Other non-current liabilities 1,272  1,260 
TOTAL LIABILITIES 13,467  13,692 
Commitments and contingencies (See Note 18)
Series B Participating Redeemable Preferred Stock - no par value
Authorized, Issued and Outstanding - 583,273 shares
738  738 
Equity:
Common shares - par value $0.125 per share
Authorized - 1,200,000,000 shares (2020 - 600,000,000 shares);
Issued - 506,832,537 shares (2020 - 506,832,537 shares);
Outstanding - 499,701,762 shares (2020 - 477,517,372 shares)
63  63 
Capital in excess of par value of shares 5,491  5,431 
Retained deficit (2,168) (2,989)
Cost of 7,130,775 common shares in treasury (2020 - 29,315,165 shares)
(87) (354)
Accumulated other comprehensive loss (66) (133)
Total Cliffs shareholders' equity 3,233  2,018 
Noncontrolling interest 308  323 
TOTAL EQUITY 3,541  2,341 
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY $ 17,746  $ 16,771 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3

Statements of Unaudited Condensed Consolidated Operations
Cleveland-Cliffs Inc. and Subsidiaries
(In Millions, Except Per Share Amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2021 2020 2021 2020
Revenues $ 5,045  $ 1,093  $ 9,094  $ 1,452 
Operating costs:
Cost of goods sold (3,848) (1,208) (7,609) (1,564)
Selling, general and administrative expenses (104) (62) (199) (90)
Acquisition-related costs (1) (19) (14) (61)
Miscellaneous – net (25) (12) (28) (24)
Total operating costs (3,978) (1,301) (7,850) (1,739)
Operating income (loss) 1,067  (208) 1,244  (287)
Other income (expense):
Interest expense, net (85) (69) (177) (100)
Gain (loss) on extinguishment of debt (22) 130  (88) 133 
Net periodic benefit credits other than service cost component 46  15  93  21 
Other non-operating income 4  —  4  — 
Total other income (expense) (57) 76  (168) 54 
Income (loss) from continuing operations before income taxes 1,010  (132) 1,076  (233)
Income tax benefit (expense) (216) 25  (225) 76 
Income (loss) from continuing operations 794  (107) 851  (157)
Income (loss) from discontinued operations, net of tax 1  (1) 1  — 
Net income (loss) 795  (108) 852  (157)
Income attributable to noncontrolling interest (15) (16) (31) (19)
Net income (loss) attributable to Cliffs shareholders $ 780  $ (124) $ 821  $ (176)
Earnings (loss) per common share attributable to Cliffs shareholders - basic
Continuing operations $ 1.40  $ (0.31) $ 1.48  $ (0.51)
Discontinued operations   —    — 
$ 1.40  $ (0.31) $ 1.48  $ (0.51)
Earnings (loss) per common share attributable to Cliffs shareholders - diluted
Continuing operations $ 1.33  $ (0.31) $ 1.42  $ (0.51)
Discontinued operations   —    — 
$ 1.33  $ (0.31) $ 1.42  $ (0.51)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4

Statements of Unaudited Condensed Consolidated Comprehensive Income (Loss)
Cleveland-Cliffs Inc. and Subsidiaries
(In Millions)
Three Months Ended
June 30,
Six Months Ended
June 30,
2021 2020 2021 2020
Net income (loss) $ 795  $ (108) $ 852  $ (157)
Other comprehensive income (loss):
Changes in pension and OPEB, net of tax 7  14  12 
Changes in foreign currency translation   (1) — 
Changes in derivative financial instruments, net of tax 47  54 
Total other comprehensive income 54  11  67  13 
Comprehensive income (loss) 849  (97) 919  (144)
Comprehensive income attributable to noncontrolling interests (15) (16) (31) (19)
Comprehensive income (loss) attributable to Cliffs shareholders $ 834  $ (113) $ 888  $ (163)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5

Statements of Unaudited Condensed Consolidated Cash Flows
Cleveland-Cliffs Inc. and Subsidiaries
(In Millions)
Six Months Ended
June 30,
2021 2020
OPERATING ACTIVITIES
Net income (loss) $ 852  $ (157)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
Depreciation, depletion and amortization 425  112 
Amortization of inventory step-up 118  59 
Deferred income taxes 225  (73)
Loss (gain) on extinguishment of debt 88  (133)
Other 24  (20)
Changes in operating assets and liabilities, net of business combination:
Receivables and other assets (903) 366 
Inventories (557) (126)
Pension and OPEB payments and contributions (223) (17)
Payables, accrued expenses and other liabilities 83  (309)
Net cash provided (used) by operating activities 132  (298)
INVESTING ACTIVITIES
Purchase of property, plant and equipment (298) (283)
Acquisition of AK Steel, net of cash acquired   (869)
Acquisition of ArcelorMittal USA, net of cash acquired 54  — 
Other investing activities 2  — 
Net cash used by investing activities (242) (1,152)
FINANCING ACTIVITIES
Proceeds from issuance of common shares 322  — 
Proceeds from issuance of debt 1,000  1,763 
Debt issuance costs (17) (58)
Repayments of debt (1,339) (1,000)
Borrowings under credit facilities 2,680  800 
Repayments under credit facilities (2,490) (250)
Repayments of leased liabilities (46) (5)
Other financing activities (39) (79)
Net cash provided by financing activities 71  1,171 
Net decrease in cash and cash equivalents (39) (279)
Cash and cash equivalents at beginning of period 112  353 
Cash and cash equivalents at end of period $ 73  $ 74 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
6

Statements of Unaudited Condensed Consolidated Changes in Equity
Cleveland-Cliffs Inc. and Subsidiaries
(In Millions)
Number
of
Common
Shares Outstanding
Par Value of
Common
Shares Issued
Capital in
Excess of
Par Value
of Shares
Retained
Deficit
Common
Shares
in
Treasury
AOCI Non-controlling Interests Total
December 31, 2020 478  $ 63  $ 5,431  $ (2,989) $ (354) $ (133) $ 323  $ 2,341 
Comprehensive income       41    13  16  70 
Issuance of common stock 20    78    244      322 
Stock and other incentive plans 1    (22)   17      (5)
Acquisition of ArcelorMittal USA - Measurement period adjustments             (1) (1)
Net distributions to noncontrolling interests             (8) (8)
March 31, 2021 499  $ 63  $ 5,487  $ (2,948) $ (93) $ (120) $ 330  $ 2,719 
Comprehensive income       780    54  15  849 
Stock and other incentive plans 1    4    6      10 
Acquisition of ArcelorMittal USA - Measurement period adjustments             (13) (13)
Net distributions to noncontrolling interests             (24) (24)
June 30, 2021 500  $ 63  $ 5,491  $ (2,168) $ (87) $ (66) $ 308  $ 3,541 
(In Millions)
Number
of
Common
Shares Outstanding
Par Value of Common
Shares Issued
Capital in
Excess of
Par Value
of Shares
Retained
Deficit
Common
Shares
in
Treasury
AOCI Non-controlling Interests Total
December 31, 2019 271  $ 37  $ 3,873  $ (2,842) $ (391) $ (319) $ —  $ 358 
Comprehensive income (loss) —  —  —  (52) —  (47)
Stock and other incentive plans —  (24) —  26  —  — 
Acquisition of AK Steel 127  16  602  —  —  —  330  948 
Common stock dividends ($0.06 per share)
—  —  —  (24) —  —  —  (24)
Net distributions to noncontrolling interests —  —  —  —  —  —  (6) (6)
March 31, 2020 399  $ 53  $ 4,451  $ (2,918) $ (365) $ (317) $ 327  $ 1,231 
Comprehensive income —  —  —  (124) —  11  16  (97)
Stock and other incentive plans —  —  (7) —  —  — 
Net distributions to noncontrolling interests —  —  —  —  —  —  (18) (18)
June 30, 2020 399  $ 53  $ 4,444  $ (3,042) $ (356) $ (306) $ 325  $ 1,118 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
7

Notes to Unaudited Condensed Consolidated Financial Statements
Cleveland-Cliffs Inc. and Subsidiaries

NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Business, Consolidation and Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with SEC rules and regulations and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations, comprehensive income (loss), cash flows and changes in equity for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its estimates on various assumptions and historical experience, which are believed to be reasonable; however, due to the inherent nature of estimates, actual results may differ significantly due to changed conditions or assumptions. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021 or any other future period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2020 and in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021.
Business Operations
We are vertically integrated from the mining of iron ore and coal; to production of metallics and coke; through iron making, steelmaking, rolling and finishing; and to downstream tubular components, stamping and tooling. We have the unique advantage as a steel producer of being fully or partially self-sufficient with our production of raw materials for steel manufacturing, which includes iron ore pellets, HBI and coking coal.
We are organized into four operating segments based on differentiated products, Steelmaking, Tubular, Tooling and Stamping, and European Operations. We primarily operate through one reportable segment – the Steelmaking segment.
Basis of Consolidation
The unaudited condensed consolidated financial statements consolidate our accounts and the accounts of our wholly owned subsidiaries, all subsidiaries in which we have a controlling interest and VIEs for which we are the primary beneficiary. All intercompany transactions and balances are eliminated upon consolidation.
Investments in Affiliates
We have investments in several businesses accounted for using the equity method of accounting. We review an investment for impairment when circumstances indicate that a loss in value below its carrying amount is other than temporary.
As of June 30, 2021 and December 31, 2020, our investment in affiliates of $116 million and $105 million, respectively, was classified in Other non-current assets.
Significant Accounting Policies
A detailed description of our significant accounting policies can be found in the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC. There have been no material changes in our significant accounting policies and estimates from those disclosed therein.
8

Recent Accounting Pronouncements
Issued and Not Effective
In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). This update requires certain convertible instruments to be accounted for as a single liability measured at its amortized cost. Additionally, the update requires the use of the "if-converted" method, removing the treasury stock method, when calculating diluted shares. The two methods of adoption are the full and modified retrospective approaches. We expect to utilize the modified retrospective approach. Using this approach, the guidance shall be applied to transactions outstanding as of the beginning of the fiscal year in which the amendment is adopted. The final rule is effective for fiscal years beginning after December 15, 2021. Early adoption is permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We expect the adoption of this update to decrease our diluted EPS unless the additional shares under the if-converted method are anti-dilutive. We expect to adopt the update at the required adoption date of January 1, 2022.
NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION
Allowance for Credit Losses
The following is a roll forward of our allowance for credit losses associated with Accounts receivable, net:
(In Millions)
2021 2020
Allowance for credit losses as of January 1 $ (5) $ — 
Increase in allowance   (4)
Allowance for credit losses as of June 30 $ (5) $ (4)
Inventories
The following table presents the detail of our Inventories in the Statements of Unaudited Condensed Consolidated Financial Position:
(In Millions)
June 30,
2021
December 31,
2020
Product inventories
Finished and semi-finished goods $ 2,452  $ 2,125 
Raw materials 1,558  1,431 
Total product inventories 4,010  3,556 
Manufacturing supplies and critical spares 270  272 
Inventories $ 4,280  $ 3,828 
Cash Flow Information
A reconciliation of capital additions to cash paid for capital expenditures is as follows:
(In Millions)
Six Months Ended
June 30,
2021 2020
Capital additions $ 329  $ 231 
Less:
Non-cash accruals 16  (92)
Right-of-use assets - finance leases 15  40 
Cash paid for capital expenditures including deposits $ 298  $ 283 
9

Cash payments (receipts) for income taxes and interest are as follows:
(In Millions)
Six Months Ended
June 30,
2021 2020
Taxes paid on income $ 8  $ — 
Income tax refunds (15) (60)
Interest paid on debt obligations net of capitalized interest1
148  67 
1 Capitalized interest was $3 million and $23 million for the six months ended June 30, 2021 and 2020, respectively.
NOTE 3 - ACQUISITIONS
In 2020, we acquired two major steelmakers, AK Steel and ArcelorMittal USA, vertically integrating our legacy iron ore business with steel production. Our fully-integrated portfolio includes custom-made pellets and HBI; flat-rolled carbon steel, stainless, electrical, plate, tinplate and long steel products; and carbon and stainless steel tubing, hot and cold stamping and tooling. The AK Steel Merger combined Cliffs, a producer of iron ore pellets, with AK Steel, a producer of flat-rolled carbon, stainless and electrical steel products, to create a vertically integrated producer of value-added iron ore and steel products. The AM USA Transaction transformed us into a fully-integrated steel enterprise with the size and scale to expand product offerings and improve through-the-cycle margins.
We now have a presence across the entire steel manufacturing process, from mining to pelletizing to the development and production of finished high value steel products. The combination is expected to create significant opportunities to generate additional value from market trends across the entire steel value chain and enable more consistent, predictable performance through normal market cycles.
Acquisition of ArcelorMittal USA
Overview
On December 9, 2020, pursuant to the terms of the AM USA Transaction Agreement, we purchased ArcelorMittal USA from ArcelorMittal. In connection with the closing of the AM USA Transaction, as contemplated by the terms of the AM USA Transaction Agreement, ArcelorMittal’s former joint venture partner in Kote and Tek exercised its put right pursuant to the terms of the Kote and Tek joint venture agreements. As a result, we purchased all of such joint venture partner’s interests in Kote and Tek. Following the closing of the AM USA Transaction, we own 100% of the interests in Kote and Tek.
We incurred acquisition-related costs excluding severance costs of $2 million for the six months ended June 30, 2021, which were recorded in Acquisition-related costs on the Statements of Unaudited Condensed Consolidated Operations.
The AM USA Transaction was accounted for under the acquisition method of accounting for business combinations.
The fair value of the total purchase consideration was determined as follows:
(In Millions)
Fair value of Cliffs common shares issued $ 990 
Fair value of Series B Participating Redeemable Preferred Stock issued 738 
Fair value of settlement of a pre-existing relationship 237 
Cash consideration 639 
Total purchase consideration $ 2,604 
10

The fair value of Cliffs common shares issued is calculated as follows:
Number of Cliffs common shares issued 78,186,671
Closing price of Cliffs common share as of December 9, 2020 $ 12.66 
Fair value of Cliffs common shares issued (in millions) $ 990 
The fair value of Cliffs Series B Participating Redeemable Preferred Stock issued is calculated as follows:
Number of Cliffs Series B Participating Redeemable Preferred Stock issued 583,273 
Redemption price per share as of December 9, 2020 $ 1,266 
Fair value of Cliffs Series B Participating Redeemable Preferred Stock issued (in millions) $ 738 
The fair value of the estimated cash consideration is comprised of the following:
(In Millions)
Cash consideration pursuant to the AM USA Transaction Agreement $ 505 
Cash consideration for purchase of the remaining JV partner's interest of Kote and Tek 182 
Total cash consideration receivable (48)
Total cash consideration $ 639 
The cash portion of the purchase price was subject to customary working capital adjustments, and the working capital adjustments were finalized during the second quarter of 2021. If the Company decides to make any elections under Section 338(h)(10) of the Internal Revenue Code of 1986, as amended, the final cash consideration could potentially change.
The fair value of the settlement of a pre-existing relationship is comprised of the following:
(In Millions)
Accounts receivable $ 97 
Freestanding derivative asset from customer supply agreement 140 
Total fair value of settlement of a pre-existing relationship $ 237 
Valuation Assumption and Preliminary Purchase Price Allocation
We estimated fair values at December 9, 2020 for the preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed in connection with the AM USA Transaction. During the measurement period, we will continue to obtain information to assist in finalizing the fair value of assets acquired and liabilities assumed, which may differ materially from these preliminary estimates. If we determine any measurement period adjustments are material, we will apply those adjustments, including any related impacts to net income, in the reporting period in which the adjustments are determined. We are in the process of conducting a valuation of the assets acquired and liabilities assumed related to the AM USA Transaction, most notably, inventories, personal and real property, mineral reserves, deferred taxes, asset retirement obligations and the final allocation will be made when completed, including the result of any identified goodwill. Accordingly, the provisional measurements noted below are preliminary and subject to modification in the future.
11

The preliminary purchase price allocation to assets acquired and liabilities assumed in the AM USA Transaction was:
(In Millions)
Initial Allocation of Consideration Measurement Period Adjustments Updated Allocation
Cash and cash equivalents $ 35  $ —  $ 35 
Accounts receivable, net 349  (1) 348 
Inventories 2,115  14  2,129 
Other current assets 34  (4) 30 
Property, plant and equipment 4,017  379  4,396 
Other non-current assets 158  164 
Accounts payable (758) 25  (733)
Accrued employment costs (271) (1) (272)
Pension and OPEB liabilities, current (109) —  (109)
Other current liabilities (398) (7) (405)
Pension and OPEB liabilities, non-current (3,195) —  (3,195)
Other non-current liabilities (598) (80) (678)
Noncontrolling interest (13) 13  — 
Net identifiable assets acquired 1,366  344  1,710 
Goodwill 1,230  (336) 894 
Total net assets acquired $ 2,596  $ $ 2,604 
During the period subsequent to the AM USA Transaction, we made certain measurement period adjustments to the acquired assets and liabilities assumed due to clarification of information utilized to determine fair value during the measurement period. The measurement period adjustment related to the revaluation of the Company's previously held equity method investment, which is now being consolidated post-acquisition, resulted in a loss of $18 million, within Miscellaneous – net for the three and six months ended June 30, 2021.
The goodwill resulting from the acquisition of ArcelorMittal USA primarily represents the growth opportunities in the automotive, construction, appliances, infrastructure and machinery and equipment markets, as well as any synergistic benefits to be realized from the AM USA Transaction, and was assigned to our flat steel operations within our Steelmaking segment. Goodwill from the AM USA Transaction is expected to be deductible for U.S. federal income tax purposes.
Acquisition of AK Steel
Overview
On March 13, 2020, pursuant to the AK Steel Merger Agreement, we completed the acquisition of AK Steel, in which we were the acquirer. As a result of the AK Steel Merger, each share of AK Steel common stock issued and outstanding immediately prior to the effective time of the AK Steel Merger (other than excluded shares) was converted into the right to receive 0.400 Cliffs common shares and, if applicable, cash in lieu of any fractional Cliffs common shares.
The AK Steel Merger was accounted for under the acquisition method of accounting for business combinations. The acquisition date fair value of the consideration transferred totaled $1,535 million. The following tables summarize the consideration paid for AK Steel and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.
12

The fair value of the total purchase consideration was determined as follows:
(In Millions)
Fair value of AK Steel debt $ 914 
Fair value of Cliffs common shares issued for AK Steel outstanding common stock1
618 
Other1
Total purchase consideration $ 1,535 
1 Included as non-cash investing activities in the Statement of Unaudited Condensed Consolidated Cash Flows for the six months ended June 30, 2020.
The fair value of Cliffs common shares issued for outstanding shares of AK Steel common stock and with respect to Cliffs common shares underlying converted AK Steel equity awards that vested upon completion of the AK Steel Merger is calculated as follows:
(In Millions, Except Per Share Amounts)
Number of shares of AK Steel common stock issued and outstanding 317 
Exchange ratio 0.400 
Number of Cliffs common shares issued to AK Steel stockholders 127 
Price per share of Cliffs common shares $ 4.87 
Fair value of Cliffs common shares issued for AK Steel outstanding common stock $ 618 
The fair value of AK Steel's debt included in the consideration is calculated as follows:
(In Millions)
Credit Facility $ 590 
7.50% Senior Secured Notes due July 2023
324 
Fair value of debt included in consideration $ 914 
13

Valuation Assumption and Purchase Price Allocation
The allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed in connection with the AK Steel Merger is based on estimated fair values at March 13, 2020, and was finalized during the quarter ended March 31, 2021. The following is a summary of the purchase price allocation to assets acquired and liabilities assumed in the AK Steel Merger:
(In Millions)
Initial Allocation of Consideration Measurement Period Adjustments Final Allocation of Consideration as of March 31, 2021
Cash and cash equivalents $ 38  $ $ 39 
Accounts receivable, net 666  (2) 664 
Inventories 1,563  (243) 1,320 
Other current assets 68  (16) 52 
Property, plant and equipment 2,184  90  2,274 
Deferred income taxes —  69  69 
Other non-current assets 475  (4) 471 
Accounts payable (636) (8) (644)
Accrued employment costs (94) (93)
Pension and OPEB liabilities, current (75) (3) (78)
Other current liabilities (236) (227)
Long-term debt (1,179) —  (1,179)
Pension and OPEB liabilities, non-current (873) (871)
Other non-current liabilities (507) 72  (435)
Noncontrolling interest —  (1) (1)
Net identifiable assets acquired 1,394  (33) 1,361 
Goodwill 141  33  174 
Total net assets acquired $ 1,535  $ —  $ 1,535 
During the period subsequent to the AK Steel Merger, we made certain measurement period adjustments to the acquired assets and liabilities assumed due to clarification of information utilized to determine fair value during the measurement period.
The goodwill resulting from the acquisition of AK Steel was assigned to our downstream Tubular and Tooling and Stamping operating segments. Goodwill is calculated as the excess of the purchase price over the net identifiable assets recognized and primarily represents the growth opportunities in light weighting solutions to automotive customers, as well as any synergistic benefits to be realized. Goodwill from the AK Steel Merger is not expected to be deductible for income tax purposes.
The purchase price allocated to identifiable intangible assets and liabilities acquired was:
(In Millions) Weighted Average Life (In Years)
Intangible assets:
Customer relationships $ 77  18
Developed technology 60  17
Trade names and trademarks 11  10
Total identifiable intangible assets $ 148  17
Intangible liabilities:
Above-market supply contracts $ (71) 12
The above-market supply contracts relate to the long-term coke and energy supply agreements with SunCoke Energy, which includes SunCoke Middletown, a consolidated VIE. Refer to NOTE 16 - VARIABLE INTEREST ENTITIES for further information.
14

Pro Forma Results
The following table provides unaudited pro forma financial information, prepared in accordance with Topic 805, for the three and six months ended June 30, 2020, as if AK Steel had been acquired as of January 1, 2019:
(In Millions)
Three Months Ended
June 30, 2020
Six Months Ended
June 30, 2020
Revenues $ 979  $ 2,428 
Net loss attributable to Cliffs shareholders (125) (164)
The unaudited pro forma financial information has been calculated after applying our accounting policies and adjusting the historical results with pro forma adjustments, net of tax, that assume the AK Steel Merger occurred on January 1, 2019. Significant pro forma adjustments include the following:
1.The elimination of intercompany revenues between Cliffs and AK Steel of $114 million and $259 million for the three and six months ended June 30, 2020, respectively.
2.The 2020 pro forma Net loss was adjusted to exclude $36 million and $59 million of non-recurring inventory acquisition accounting adjustments incurred during the three and six months ended June 30, 2020, respectively.
3.The elimination of nonrecurring transaction costs incurred by Cliffs and AK Steel in connection with the AK Steel Merger of $2 million and $28 million for the three and six months ended June 30, 2020, respectively.
4.Total other pro forma adjustments included expense of $12 million and $1 million for the three and six months ended June 30, 2020, respectively, primarily due to reduced interest and amortization expense, offset partially by additional depreciation expense and pension and OPEB expense.
5.The income tax impact of pro forma transaction adjustments that affect Net loss attributable to Cliffs shareholders at a statutory rate of 24.3% resulted in an income tax benefit of $2 million and an income tax expense of $3 million for the three and six months ended June 30, 2020, respectively.
The unaudited pro forma financial information does not reflect the potential realization of synergies or cost savings, nor does it reflect other costs relating to the integration of AK Steel. This unaudited pro forma financial information should not be considered indicative of the results that would have actually occurred if the AK Steel Merger had been consummated on January 1, 2019, nor are they indicative of future results.
NOTE 4 - REVENUES
We generate our revenue through product sales, in which shipping terms indicate when we have fulfilled our performance obligations and transferred control of products to our customer. Our revenue transactions consist of a single performance obligation to transfer promised goods. Our contracts with customers define the mechanism for determining the sales price, which is generally fixed upon transfer of control, but the contracts generally do not impose a specific quantity on either party. Quantities to be delivered to the customer are determined at a point near the date of delivery through purchase orders or other written instructions we receive from the customer. Spot market sales are made through purchase orders or other written instructions. We consider our performance obligation to be complete and recognize revenue when control transfers in accordance with shipping terms.
Revenue is measured as the amount of consideration we expect to receive in exchange for transferring product. We reduce the amount of revenue recognized for estimated returns and other customer credits, such as discounts and volume rebates, based on the expected value to be realized. Payment terms are consistent with terms standard to the markets we serve. Sales taxes collected from customers are excluded from revenues.
Prior to the AM USA Transaction, we had a supply agreement with ArcelorMittal USA, which included supplemental revenue or refunds based on the HRC price in the year the iron ore was consumed in ArcelorMittal USA's blast furnaces. As control transferred prior to consumption, the supplemental revenue was recorded in accordance with Topic 815. All sales occurring subsequent to the AM USA Transaction are intercompany and eliminated in consolidation. Included within Revenues related to Topic 815 for the supplemental revenue portion of the supply agreement is derivative revenue of $31 million and $6 million for the three and six months ended June 30, 2020, respectively.
15

The following table represents our Revenues by market:
(In Millions)
Three Months Ended
June 30,
Six Months Ended
June 30,
2021 2020 2021 2020
Steelmaking:
Automotive $ 1,130  $ 309  $ 2,428  $ 411 
Infrastructure and manufacturing 1,312  191  2,286  230 
Distributors and converters 1,948  139  3,225  191 
Steel producers
532  384  902 528 
Total Steelmaking 4,922  1,023  8,841  1,360 
Other Businesses:
Automotive 96  49  201  65 
Infrastructure and manufacturing 11  13  21  17 
Distributors and converters 16  31  10 
Total Other Businesses 123  70  253  92 
Total revenues $ 5,045  $ 1,093  $ 9,094  $ 1,452 
The following tables represent our Revenues by product line:
(Dollars in Millions, Sales Volumes in Thousands)
Three Months Ended June 30,
2021 2020
Revenue
Volume1
Revenue
Volume1
Steelmaking:
Hot-rolled steel $ 1,485  1,386  $ 42  63 
Cold-rolled steel 773  720  88  123 
Coated steel 1,379  1,247  301  333 
Stainless and electrical steel 397  168  208  95 
Plate steel 321  273  —  — 
Other steel products 345  411  —  — 
Iron products 155  849  377  3,718 
Other 67  N/A N/A
Total Steelmaking 4,922  1,023 
Other Businesses:
Other 123  N/A 70  N/A
Total revenues $ 5,045  $ 1,093 
1 All steel product volumes are stated in net tons. Iron product volumes are stated in long tons.
16

(Dollars in Millions, Sales Volumes in Thousands)
Six Months Ended June 30,
2021 2020
Revenue
Volume1
Revenue
Volume1
Steelmaking:
Hot-rolled steel $ 2,404  2,568  $ 61  94 
Cold-rolled steel 1,417  1,468  116  163 
Coated steel 2,703  2,616  391  432 
Stainless and electrical steel 760  335  264  122 
Plate steel 572  548  —  — 
Other steel products 635  814  —  — 
Iron products 225  1,449  519  5,069 
Other 125  N/A N/A
Total steelmaking 8,841  1,360 
Other Businesses:
Other 253  N/A 92  N/A
Total revenues $ 9,094  $ 1,452 
1 All steel product volumes are stated in net tons. Iron product volumes are stated in long tons.
NOTE 5 - SEGMENT REPORTING
We are vertically integrated from the mining of iron ore and coal; to production of metallics and coke; through iron making, steelmaking, rolling, finishing; and to downstream tubing, stamping and tooling. We are organized into four operating segments based on our differentiated products - Steelmaking, Tubular, Tooling and Stamping, and European Operations. Our previous Mining and Pelletizing segment is included within the Steelmaking operating segment as iron ore pellets are a primary raw material for our steel products. We have one reportable segment - Steelmaking. The operating segment results of our Tubular, Tooling and Stamping, and European Operations that do not constitute reportable segments are combined and disclosed in the Other Businesses category. Our Steelmaking segment is the largest flat-rolled steel producer supported by being the largest iron ore pellet producer in North America, primarily serving the automotive, infrastructure and manufacturing, and distributors and converters markets. Our Other Businesses primarily include the operating segments that provide customer solutions with carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components, and complex assemblies. All intersegment transactions were eliminated in consolidation.
We evaluate performance on an operating segment basis, as well as a consolidated basis, based on Adjusted EBITDA, which is a non-GAAP measure. This measure is used by management, investors, lenders and other external users of our financial statements to assess our operating performance and to compare operating performance to other companies in the steel industry. In addition, management believes Adjusted EBITDA is a useful measure to assess the earnings power of the business without the impact of capital structure and can be used to assess our ability to service debt and fund future capital expenditures in the business.
17

Our results by segment are as follows:
(In Millions)
Three Months Ended
June 30,
Six Months Ended
June 30,
2021 2020 2021 2020
Revenues:
Steelmaking $ 4,922  $ 1,023  $ 8,841  $ 1,360 
Other Businesses 123  70 253  92 
Total revenues $ 5,045  $ 1,093  $ 9,094  $ 1,452 
Adjusted EBITDA:
Steelmaking $ 1,395  $ (54) $ 1,932  $ (10)
Other Businesses 8  19 
Corporate and eliminations (43) (30) (78) (53)
Total Adjusted EBITDA $ 1,360  $ (82) $ 1,873  $ (59)
The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
(In Millions)
Three Months Ended
June 30,
Six Months Ended
June 30,
2021 2020 2021 2020
Net income (loss) $ 795  $ (108) $ 852  $ (157)
Less:
Interest expense, net (85) (69) (177) (100)
Income tax benefit (expense) (216) 25  (225) 76 
Depreciation, depletion and amortization (208) (77) (425) (112)
1,304  13  1,679  (21)
Less:
EBITDA of noncontrolling interests1
21  21  43  25 
Gain (loss) on extinguishment of debt (22) 130  (88) 133 
Severance costs (1) (17) (12) (36)
Acquisition-related costs excluding severance costs   (2) (2) (25)
Acquisition-related loss on equity method investment (18) —  (18) — 
Amortization of inventory step-up (37) (36) (118) (59)
Impact of discontinued operations 1  (1) 1  — 
Total Adjusted EBITDA $ 1,360  $ (82) $ 1,873  $ (59)
1 EBITDA of noncontrolling interests includes the following:
Net income attributable to noncontrolling interests $ 15  $ 16  $ 31  $ 19 
Depreciation, depletion and amortization 6  12 
EBITDA of noncontrolling interests $ 21  $ 21  $ 43  $ 25 
18

The following summarizes our assets by segment:
(In Millions)
June 30,
2021
December 31,
2020
Assets:
Steelmaking $ 16,966  $ 15,849 
Other Businesses 324  239 
Total segment assets 17,290  16,088 
Corporate 456  683 
Total assets $ 17,746  $ 16,771 
The following table summarizes our capital additions by segment:
(In Millions)
Three Months Ended
June 30,
Six Months Ended
June 30,
2021 2020 2021 2020
Capital additions1:
Steelmaking $ 146  $ 66  $ 279  $ 220 
Other Businesses 21  32  10 
Corporate   —  18 
Total capital additions $ 167  $ 73  $ 329  $ 231 
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
NOTE 6 - PROPERTY, PLANT AND EQUIPMENT
The following table indicates the carrying value of each of the major classes of our depreciable assets:
(In Millions)
June 30,
2021
December 31,
2020
Land, land improvements and mineral rights $ 1,274  $ 1,213 
Buildings 865  703 
Equipment 8,104  6,786 
Other 205  151 
Construction in progress 430  1,364 
Total property, plant and equipment1
10,878  10,217 
Allowance for depreciation and depletion (1,896) (1,474)
Property, plant and equipment, net $ 8,982  $ 8,743 
1 Includes right-of-use assets related to finance leases of $376 million and $361 million as of June 30, 2021 and December 31, 2020, respectively.
We recorded depreciation and depletion expense of $208 million and $423 million for the three and six months ended June 30, 2021, respectively, and $75 million and $111 million for the three and six months ended June 30, 2020, respectively.
19

NOTE 7 - GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES
Goodwill
The following is a summary of Goodwill by segment:
(In Millions)
June 30,
2021
December 31,
2020
Steelmaking $ 896  $ 1,232 
Other Businesses 174  174 
Total goodwill $ 1,070  $ 1,406 
The decrease of $336 million in the balance of Goodwill in our Steelmaking segment as of June 30, 2021, compared to December 31, 2020, is due to the change in estimated identified goodwill as a result of measurement period adjustments to the preliminary purchase price allocation for the acquisition of ArcelorMittal USA. Refer to NOTE 3 - ACQUISITIONS for further details.
Intangible Assets and Liabilities
The following is a summary of our intangible assets and liabilities:
(In Millions)
June 30, 2021
December 31, 2020
Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount
Intangible assets1:
Customer relationships $ 77  $ (6) $ 71  $ 77  $ (3) $ 74 
Developed technology 60  (5) 55  60  (3) 57 
Trade names and trademarks 11  (1) 10  11  (1) 10 
Mining permits 72  (25) 47  72  (25) 47 
Total intangible assets $ 220  $ (37) $ 183  $ 220  $ (32) $ 188 
Intangible liabilities2:
Above-market supply contracts $ (71) $ 10  $ (61) $ (71) $ $ (64)
1 Intangible assets are classified as Other non-current assets. Amortization related to mining permits is recognized in Cost of goods sold. Amortization of all other intangible assets is recognized in Selling, general and administrative expenses.
2 Intangible liabilities are classified as Other non-current liabilities. Amortization of all intangible liabilities is recognized in Cost of goods sold.
Amortization expense related to intangible assets was $2 million and $5 million for the three and six months ended June 30, 2021, respectively, and $3 million and $4 million for the three and six months ended June 30, 2020, respectively. Estimated future amortization expense is $5 million for the remainder of 2021 and $10 million annually for the years 2022 through 2026.
Income from amortization related to the intangible liabilities was $2 million and $3 million for the three and six months ended June 30, 2021, respectively, and $1 million and $3 million for the three and six months ended June 30, 2020, respectively. Estimated future income from amortization is $4 million for the remainder of 2021 and $5 million annually for the years 2022 through 2026.
20

NOTE 8 - DEBT AND CREDIT FACILITIES
The following represents a summary of our long-term debt:
(In Millions)
June 30, 2021
Debt Instrument
Issuer1
Annual Effective
Interest Rate
Total Principal Amount Unamortized
Debt Issuance Costs
Unamortized Premiums (Discounts) Total Debt
Senior Secured Notes:
9.875% 2025 Senior Secured Notes
Cliffs 10.57% $ 607  $ (4) $ (15) $ 588 
6.75% 2026 Senior Secured Notes
Cliffs 6.99% 845  (18) (8) 819 
Senior Unsecured Notes:
1.50% 2025 Convertible Senior Notes
Cliffs 6.26% 296  (3) (45) 248 
7.00% 2027 Senior Notes
Cliffs 9.24% 73    (7) 66 
7.00% 2027 AK Senior Notes
AK Steel 9.24% 56    (5) 51 
5.875% 2027 Senior Notes
Cliffs 6.49% 556  (4) (17) 535 
4.625% 2029 Senior Notes
Cliffs 4.63% 500  (8)   492 
4.875% 2031 Senior Notes
Cliffs 4.88% 500  (9)   491 
6.25% 2040 Senior Notes
Cliffs 6.34% 263  (2) (3) 258 
IRBs due 2024 to 2028 AK Steel Various 92    2  94 
EDC Revolving Facilities3
* Various 80      56 
ABL Facility3
Cliffs2
2.24% 3,500      1,670 
Total long-term debt $ 5,368 
* Our subsidiaries, Fleetwood Metal Industries Inc. and The Electromac Group Inc., are the borrowers under the EDC Revolving Facilities.
1 Unless otherwise noted, references in this column and throughout this NOTE 8 - DEBT AND CREDIT FACILITIES to "Cliffs" are to Cleveland-Cliffs Inc., and references to "AK Steel" are to AK Steel Corporation (n/k/a Cleveland-Cliffs Steel Corporation).
2 Refers to Cleveland-Cliffs Inc. as borrower under our ABL Facility.
3 The total principal amounts for the indicated credit facilities are stated at their respective maximum borrowing capacities.
21

(In Millions)
December 31, 2020
Debt Instrument
Issuer1
Annual Effective
Interest Rate
Total Principal Amount Unamortized
Debt Issuance Costs
Unamortized
Premiums
(Discounts)
Total Debt
Senior Secured Notes:
4.875% 2024 Senior Notes
Cliffs 5.00% $ 395  $ (3) $ (1) $ 391 
9.875% 2025 Senior Secured Notes
Cliffs 10.57% 955  (8) (25) 922 
6.75% 2026 Senior Secured Notes
Cliffs 6.99% 845  (20) (9) 816 
Senior Unsecured Notes:
7.625% 2021 AK Senior Notes
AK Steel 7.33% 34  —  —  34 
7.50% 2023 AK Senior Notes
AK Steel 6.17% 13  —  —  13 
6.375% 2025 Senior Notes
Cliffs 8.11% 64  —  (4) 60 
6.375% 2025 AK Senior Notes
AK Steel 8.11% 29  —  (2) 27 
1.50% 2025 Convertible Senior Notes
Cliffs 6.26% 296  (4) (49) 243 
5.75% 2025 Senior Notes
Cliffs 6.01% 396  (3) (4) 389 
7.00% 2027 Senior Notes
Cliffs 9.24% 73  —  (8) 65 
7.00% 2027 AK Senior Notes
AK Steel 9.24% 56  —  (6) 50 
5.875% 2027 Senior Notes
Cliffs 6.49% 556  (4) (18) 534 
6.25% 2040 Senior Notes
Cliffs 6.34% 263  (2) (3) 258 
IRBs due 2024 to 2028 AK Steel Various 92  —  94 
EDC Revolving Facility3
* 3.25% 40  —  —  18 
ABL Facility3
Cliffs2
2.15% 3,500  —  —  1,510 
Total debt 5,424 
Less: current debt 34 
Total long-term debt $ 5,390 
* Our subsidiaries, Fleetwood Metal Industries Inc. and The Electromac Group Inc., are the borrowers under the EDC Revolving Facility.
1 Unless otherwise noted, references in this column and throughout this NOTE 8 - DEBT AND CREDIT FACILITIES to "Cliffs" are to Cleveland-Cliffs Inc., and references to "AK Steel" are to AK Steel Corporation (n/k/a Cleveland-Cliffs Steel Corporation).
2 Refers to Cleveland-Cliffs Inc. as borrower under our ABL Facility.
3 The total principal amounts for the indicated credit facilities are stated at their respective maximum borrowing capacities.
Debt Extinguishments - 2021
On June 28, 2021, we redeemed all of the $396 million aggregate principal amount outstanding of the 5.75% 2025 Senior Notes using available liquidity. During the second quarter of 2021, we also repurchased $25 million aggregate principal amount of 9.875% 2025 Senior Secured Notes.
On March 11, 2021, we purchased an aggregate principal amount of $322 million of the 9.875% 2025 Senior Secured Notes using the net proceeds from the February 11, 2021 issuance of 20 million common shares and cash on hand. On March 12, 2021, we fully redeemed the 4.875% 2024 Senior Secured Notes, 7.625% 2021 AK Senior Notes, 7.50% 2023 AK Senior Notes, 6.375% 2025 Senior Notes and 6.375% 2025 AK Senior Notes, which totaled an aggregate principal amount of $535 million.
22

The following is a summary of the debt extinguished and the respective impact on extinguishment:
(In Millions)
Three Months Ended
June 30, 2021
Six Months Ended
June 30, 2021
Debt Instrument
Debt Extinguished
(Loss) on Extinguishment Debt Extinguished (Loss) on Extinguishment
9.875% 2025 Senior Secured Notes
$ 25  $ (5) $ 347  $ (47)
4.875% 2024 Senior Secured Notes
    395  (14)
7.625% 2021 AK Senior Notes
    34   
7.50% 2023 AK Senior Notes
    13   
6.375% 2025 Senior Notes
    64  (7)
6.375% 2025 AK Senior Notes
    29  (3)
5.75% 2025 Senior Notes
396  (17) 396  (17)
$ 421  $ (22) $ 1,278  $ (88)
Debt Extinguishments - 2020
On April 24, 2020, we used the net proceeds from the offering of the additional 9.875% 2025 Senior Secured Notes to repurchase $736 million aggregate principal amount of our outstanding senior notes of various series, which resulted in debt reduction of $181 million. During the second quarter of 2020, we also repurchased an additional $12 million aggregate principal amount of our outstanding senior notes of various series with cash on hand. On June 1, 2020, we redeemed $7 million aggregate principal amount of our outstanding 2020 IRBs.
On March 13, 2020, in connection with the AK Steel Merger, we purchased $364 million aggregate principal amount of 7.625% 2021 AK Senior Notes and $311 million aggregate principal amount of 7.50% 2023 AK Senior Notes upon early settlement of tender offers made by Cliffs. The net proceeds from the offering of 6.75% 2026 Senior Secured Notes, along with a portion of the ABL Facility borrowings, were used to fund such purchases. As the 7.625% 2021 AK Senior Notes and 7.50% 2023 AK Senior Notes were recorded at fair value just prior to being purchased, there was no gain or loss on extinguishment. Additionally, in connection with the final settlement of the tender offers, we purchased $9 million aggregate principal amount of the 7.625% 2021 AK Senior Notes and $57 million aggregate principal amount of the 7.50% 2023 AK Senior Notes with cash on hand.
The following is a summary of the debt extinguished and the respective impact on extinguishment:
(In Millions)
Three Months Ended
June 30, 2020
Six Months Ended
June 30, 2020
Debt Instrument Debt Extinguished Gain on Extinguishment Debt Extinguished Gain on Extinguishment
7.625% 2021 AK Senior Notes
$ —  $ —  $ 373  $ — 
7.50% 2023 AK Senior Notes
—  —  367 
4.875% 2024 Senior Secured Notes
6.375% 2025 Senior Notes
168  21  168  21 
1.50% 2025 Convertible Senior Notes
20  20 
5.75% 2025 Senior Notes
77  16  77  16 
7.00% 2027 Senior Notes
247  29  247  29 
5.875% 2027 Senior Notes
194  49  194  49 
6.25% 2040 Senior Notes
36  13  36  13 
$ 748  $ 130  $ 1,488  $ 133 
ABL Facility
As of June 30, 2021, we were in compliance with the ABL Facility liquidity requirements and, therefore, the springing financial covenant requiring a minimum fixed charge coverage ratio of 1.0 to 1.0 was not applicable.
23

The following represents a summary of our borrowing capacity under the ABL Facility:
(In Millions)
June 30,
2021
Available borrowing base on ABL Facility1
$ 3,500 
Borrowings (1,670)
Letter of credit obligations2
(235)
Borrowing capacity available $ 1,595 
1 As of June 30, 2021, the ABL Facility has a maximum borrowing base of $3.5 billion. The available borrowing base is determined by applying customary advance rates to eligible accounts receivable, inventory and certain mobile equipment.
2 We issued standby letters of credit with certain financial institutions in order to support business obligations including, but not limited to, workers' compensation, employee severance, insurance, operating agreements, IRBs and environmental obligations.
Debt Maturities
The following represents a summary of our maturities of debt instruments based on the principal amounts outstanding at June 30, 2021:
(In Millions)
Maturities of Debt
2021 (remaining period of year) $ — 
2022 — 
2023 56 
2024 62 
2025 2,573 
Thereafter 2,823 
Total maturities of debt $ 5,514 
NOTE 9 - FAIR VALUE MEASUREMENTS
The carrying values of certain financial instruments (e.g., Accounts receivable, net, Accounts payable and Other current liabilities) approximate fair value and, therefore, have been excluded from the table below. A summary of the carrying value and fair value of other financial instruments were as follows:
(In Millions)
June 30, 2021 December 31, 2020
Classification
Carrying
Value
Fair Value
Carrying
Value
Fair
Value
Senior Notes Level 1 $ 3,548  $ 4,446  $ 3,802  $ 4,446 
IRBs due 2024 to 2028 Level 1 94  94  94  91 
EDC Revolving Facilities - outstanding balance Level 2 56  56  18  18 
ABL Facility - outstanding balance Level 2 1,670  1,670  1,510  1,510 
Total long-term debt $ 5,368  $ 6,266  $ 5,424  $ 6,065 
The fair value of long-term debt was determined using quoted market prices.
NOTE 10 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS
We offer defined benefit pension plans, defined contribution pension plans and OPEB plans to a significant portion of our employees and retirees. Benefits are also provided through multiemployer plans for certain union members.
24

The following are the components of defined benefit pension and OPEB costs (credits):
Defined Benefit Pension Costs (Credits)