Hyperlink Question 5

Note 24 (F-50)
Question 1 Question 3 Question 1 Present Present Lease Lease
Year Period Balance
Question 2 2018 2017 1A 2018 2017 Payment Value Interest Obligation F-38 Note 18
Question 3 Total inventories 2,092 1,738 Earning (loss) before income taxes $ 812.00 $ 301.00 2018 264.06 Discount rate 4.00% Balance Sheet Adjustment DR CR Pension benefits $(666.00)
Question 4 Replacement cost 1,038 802 Income tax (benefit) provision $ (303.00) $ (86.00) 2019 1 66 63 11 55 209 Effective income tax rate -37.32% Property, plant and equipment, net 264.06 2018 Adj 2018 %Change Other benefits $(261.00)
Question 5 FIFO value 3,130 2,540 -Effect of tax reform $ (10.00) 2020 2 55 51 8 47 162 Short-term debt 55.44 Net liability $(927.00)
Question 6 Effective tax rates -37.32% -25.25% Effective tax rate -37.32% -25.25% 2021 3 45 40 6 39 123 Long-term debt 208.62 Sales 14,178 14,178
Asset turnover
2022 4 37 32 5 32 91 Average Net Operating Assets 5,650 5,914
Question 3'!A1 2023 5 28 23 4 24 67 Statement of Earnings Reclass The asset and liability are recognized in the Consolidated Balance Sheet as follow
1B 2018 2024 6 28 22 3 25 42 Depreciation Expense 55.44 2.51 2.40 -4.5% Pension benefits Other benefits
United States Steel Corporation Net Sales $ 12,758.00 2025 7 28 21 2 26 15 Interest Expense 10.56 Current liabilities $ (2.00) $ (52.00)
Consolidated Balance Sheets Sales to related paties $ 1,420.00 2026 8 16 12 1 15 - Operating Lease Expense 66.00 Net operating profit (Sales - Operating Exp) * Noncurrent liabilities $ (664.00) $ (209.00)
(in millions) Net Sales $ 14,178.00 303.00 264.06 after tax (NOPAT) (1 - (tax exp / Pretax Profit)) 1,692 1,707 Accumulated otehr comprehensive loss $ 2,460.00 $ (97.00)
2018 LIFO LIFO (Adjusted) 2017 LIFO (Adjusted) margin Sales 14,178 14,178 0.0% Net amount recognized $ 1,794.00 $ (358.00)
Prior Yr Current Yr 2018 Current Yr 2017 Total operating expense less: $ 13,054.00
Assets Gain from disposal of asset $ 6.00 United States Steel Corporation 11.93% 12.04% 0.9%
Current assets: Earning from investee $ 61.00 Consolidated Statements of Operations
Cash and cash equivalents $ 1,000.00 $ 1,000.00 $ 1,553.00 $ 1,553.00 Gain on equity investee transaction $ 38.00 (in millions) Return on Net Operating Asset Turnover *
Receivables, less allowance of $29 and $28 $ 1,435.00 $ 1,435.00 $ 1,173.00 $ 1,173.00 Other income $ 3.00 2018 Capital Stmt of Op (Adjusted) United States Steel Corporation Assets NOPAT Margin 29.94% 28.86% -3.6%
Receivables from related parties $ 224.00 $ 224.00 $ 206.00 $ 206.00 Net Operating Expense $ 12,946.00 Lease Reclass 2018 Consolidated Balance Sheets
Inventories $ 2,092.00 $ 802.00 $ 236.00 $ 3,130.00 $ 1,738.00 $ 802.00 $ 2,540.00 1-Effective tax rate 1.3732 Net sales: (in millions) Net Income – Pension benefits Other benefits
Other current assets $ 79.00 $ 79.00 $ 85.00 $ 85.00 NOPAT $ 1,691.78 Net sales 12,758 12,758 Capitalize Stmt of Op (Adjusted) Common Earnings Ratio Preferred Dividends 1,115 1,115 Service cost $ 49.00 $ 17.00
2018
Total current assets $ 4,830.00 $ 802.00 $ 236.00 $ 5,868.00 $ 4,755.00 $ 802.00 $ 5,557.00 Net sales to related parties 1,420 1,420 Lease Reclass 2018 NOPAT 1,692 1,707 Interest cost $ 233.00 $ 92.00
Investments and long-term receivables, less allowance of $5 and $11 $ 513.00 $ 513.00 $ 480.00 $ 480.00 Total 14,178 14,178 Note 24 (F-50) and Note 17 (F-37) Debt Op leases Total Assets Expected return on plan assets $ (361.00) $ (82.00)
Property, plant and equipment, net $ 4,865.00 $ 4,865.00 $ 4,280.00 $ 4,280.00 1C 2018 2017 Operating expenses (income): Five years of debt 2019 65 66 131 Current assets: 0.66 0.65 -0.9% Amortization - prior service cost $ - $ 29.00
Intangibles - net $ 158.00 $ 158.00 $ 167.00 $ 167.00 Cash $ 1,000.00 $ 1,553.00 Cost of sales (excludes items shown below) 12,305 12,305 maturities: 2020 4 55 59 Cash and cash equivalents 1,000 1,000 actuarial losses $ 152.00 $ 4.00
Deferred income tax benefits $ 445.00 $ 445.00 $ 56.00 $ 56.00 Account receivable, less allowance $ 1,435.00 $ 1,173.00 Selling, general and administrative expenses 336 (11) 325 2021 4 45 49 Receivables, less allowance of $29 and $28 1,435 1,435 Capital Structure Average Net Operating Assets 5,650 5,914 Multiemployer plans $ 60.00 $ -
Other noncurrent assets $ 171.00 $ 171.00 $ 124.00 $ 124.00 Receivable from related parties $ 224.00 $ 206.00 Depreciation, depletion and amortization 521 521 2022 10 37 47 Receivables from related parties 224 224 Leverage Average Common Equity 4,202 4,202 Settlement, termination and curtailment losses/gain $ 10.00 $ -
Total assets $ 10,982.00 $ 802.00 $ 236.00 $ 12,020.00 $ 9,862.00 $ 802.00 $ 10,664.00 Inventories $ 2,092.00 $ 1,738.00 Earnings from investees (61) (61) 2023 229 28 257 Inventories 2,092 2,092 Net periodic benefit cost (benefit) $ 143.00 $ 60.00
$ - Other current assset $ 79.00 $ 85.00 Gain on equity investee transactions (38) (38) 312 231 543 Other current assets 79 79 1.34 1.41 4.7% Total $ 203.00
Liabilities $ - Property, Plant and Equipment $ 4,865.00 $ 4,280.00 Gain associated with U.S. Steel Canada, Inc. - - Total current assets 4,830 0 0 4,830
Current liabilities: $ - Goodwill and other intangible $ 158.00 $ 167.00 Restructuring and other charges - - Investments and long-term receivables, less allowance of $5 and $11 513 513 Return on Common Return on Net Operating Assets *
Accounts payable and other accrued liabilities $ 2,454.00 $ 2,454.00 $ 2,148.00 $ 2,148.00 Receivable due after one year $ 24.00 $ 20.00 Impairment of intangible assets - - Property, plant and equipment, net 4,865 264 5,129 Equity (ROCE) Common Earnings Ratio * 26.53% 26.53% 0.0%
Accounts payable to related parties $ 81.00 $ 81.00 $ 74.00 $ 74.00 Other non-current asset $ 171.00 $ 124.00 Net (gain) loss on disposals of assets (6) (6) Intangibles - net 158 158 Capital Structure Leverage
Payroll and benefits payable $ 440.00 $ 440.00 $ 347.00 $ 347.00 Operating asset $ 10,048.0 $ 9,346.0 Other income, net (3) (3) Additional Information 2,018 Adjustment Adj 2018 Deferred income tax benefits 445 445
Accrued taxes $ 118.00 $ 118.00 $ 132.00 $ 132.00 Total 13,054 - (11) 13,043 Cash flow from operations 938 55 993 Other noncurrent assets 171 171 Sustainable Growth ROCE x (1- dividend payout rate) 25.68% 25.68% 0.0%
Accrued interest $ 39.00 $ 39.00 $ 69.00 $ 69.00 Account payable and other accrued liabili $ 2,454.00 $ 2,148.00 Earnings (loss) before interest and income taxes 1,124 - 11 1,135 Capital expenditures (from Stmt of Cash F 1,001 1,001 Total assets 10,982 264 0 11,246 Rate
Short-term debt and current maturities of long-term debt $ 65.00 $ 65.00 $ 3.00 $ 3.00 Accrued payable to related parties $ 81.00 $ 74.00 Interest expense 168 11 179 Dividends 36 36
Total current liabilities $ 3,197.00 $ 3,197.00 $ 2,773.00 $ - $ 2,773.00 Payroll and benefit payable $ 440.00 $ 347.00 Interest income (23) (23) Dividend payout rate 3.23% 3.23% Liabilities Operating Cycle 2018 Adj 2018 %Change
Long-term debt, less unamortized discount and debt issuance costs $ 2,316.00 $ 2,316.00 $ 2,700.00 $ 2,700.00 Accrued tax $ 118.00 $ 132.00 Loss on debt extinguishment 98 98 Current portion of financing debt 65 55 120 Current liabilities:
Employee benefits $ 980.00 $ 980.00 $ 759.00 $ 759.00 Accrued interest $ 39.00 $ 69.00 Other financial costs - - Effective tax rate -37.32% -37.32% Accounts payable and other accrued liabilities 2,454 2,454 Accounts Receivable Average A/R, Net * 365 605,535 605,535
Deferred income tax liabilities $ 14.00 $ 202.00 $ 88 $ 304.08 $ 6.00 $ 202.00 $ 208.00 Employee benefit $ 980.00 $ 759.00 Net periodic benefit cost 69 69 NOPAT (calculated in question 1) #REF! 15 #REF! Accounts payable to related parties 81 81 Turnover (days) Sales 14,178 14,178
Deferred credits and other noncurrent liabilities $ 272.00 $ 272.00 $ 303.00 $ 303.00 Deferred income tax liabilities $ 14.00 $ 6.00 Net interest and other financial costs 312 - 11 323 Purchases (End inv + COGS - beg inv) 12,305 12,305 Payroll and benefits payable 440 440
Total liabilities $ 6,779.00 $ 202.00 $ 88.00 $ 7,069.00 $ 6,541.00 $ 202.00 $ 6,743.00 Deferred credit $ 272.00 $ 303.00 Earnings (loss) before income taxes 812 - - 812 Current portion of financing debt + divide 101 - 101 Accrued taxes 118 118 42.7 42.7 0.0%
$ - $ - Operating liabilities $ 4,398.00 $ 3,838.00 Income tax benefit provision (303) (303) Net Operating Assets 5,650 264 5,914 Accrued interest 39 39
Stockholdes' Equity $ - $ - Net operating asset $ 5,650.0 $ 5,508.0 Net earnings (loss) 1,115 - - 1,115 Short-term debt and current maturities of long-term debt 65 55 120 Inventory Turnover Average Inventory * 365 763,580 763,580 0.0%
Common stock $ 177.00 $ 177.00 $ 176.00 $ 176.00 Less: Net earnings attributable to noncontrolling interest - - Total current liabilities 3,197 55 0 3,252 (days) Cost of Goods Sold 12,305 12,305 0.0%
Treasury stock $ (78.00) $ (78.00) $ (76.00) $ (76.00) Earnings (loss) attributable to United States Steel Corp 1,115 - - 1,115 Long-term debt, less unamortized discount and debt issuance costs 2,316 209 2,525
Additional paid-in-capital $ 3,917.00 $ 3,917.00 $ 3,932.00 $ 3,932.00 1D 2018 Earnings (loss) per common share Employee benefits 980 980 62.1 62.1 0.0%
Retained earnings $ 1,212.00 $ 600.00 $ 148.00 $ 1,960.00 $ 133.00 $ 600.00 $ 733.00 Profitability Deferred income tax liabilities 14 14
Accumulated other comprehensive loss $ (1,026.00) $ (1,026.00) $ (845.00) $ (845.00) Asset turnover Deferred credits and other noncurrent liabilities 272 272 Gross Operating Cycle AR Turnover + Inv Turnover 104.8 104.8 0.0%
Total United States Steel Corporation stockholders' equity $ 4,202.00 $ 600.00 $ 148.00 $ 4,950.00 $ 3,320.00 $ 600.00 $ 3,920.00 14,178 Sales Total liabilities 6,779 264 0 7,043
2.541
Noncontrolling interest $ 1.00 $ 1.00 $ 1.00 $ 1.00 5,579 Average Total Net Operating Assets
Total liabilities and stockholders' equity $ 10,982.00 $ 802.00 $ 236.00 $ 12,020.00 $ 9,862.00 $ 802.00 $ 10,664.00 Stockholdes' Equity Accounts Payable Average A/P * 365 925,275 925,275
NOPAT margin Common stock 177 177 Turnover Purchases 12,305 12,305
1,692 NOPAT Treasury stock (78) (78)
0.119
United States Steel Corporation 14,178 Sales Additional paid-in-capital 3,917 3,917 75.2 75.2 0.0%
Consolidated Statements of Operations Retained earnings 1,212 1,212
(in millions) Return on operating assets Accumulated other comprehensive loss (1,026) (1,026) Deferred Revenue Average Deferred Revenues * 365 N/A N/A
2018 LIFO LIFO (Adjusted) 2.54 Asset Turnover * Total United States Steel Corporation stockholders' equity 4,202 0 0 4,202 Turnover Revenues *
0.303
Prior Yr Current Yr 2018 0.12 NOPAT margin Noncontrolling interest 1 1
Net sales: Total liabilities and stockholders' equity 10,982.00 264.00 0.00 11,246.00 Gross Operating Cycle -
Net sales $ 12,758.00 $ 12,758.00 Financing Cost Ratio Net Operating Cycle Accounts Payable Turnover - 29.6 29.6 0.0%
Net sales to related parties $ 1,420.00 $ 1,420.00 1,115 Net Income – Deferred Revenue Turnover
Total $ 14,178.00 $ 14,178.00 0.00 0.659 Preferred Dividends 2018 Adj 2018 %Change
Operating expenses (income): $ - 1,692 NOPAT
Cost of sales (excludes items shown below) $ 12,305.00 $ (236.00) $ 12,069.00 Ability of Cash Flow Cash Flow from Operations 938 993
Selling, general and administrative expenses $ 336.00 $ 336.00 Capital structure leverage from Operations to Current Portion of Financing 101 156
Depreciation, depletion and amortization $ 521.00 $ 521.00 5,579.00 Average Total Operating Assets Cover Current Debt Debt + Dividends
1.483
Earnings from investees $ (61.00) $ (61.00) 3,761 Average Common Equity and Dividends 9.29 6.35 -31.6%
Gain on equity investee transactions $ (38.00) $ (38.00)
Gain associated with U.S. Steel Canada, Inc. $ - $ - Return on common equity Cash Flow from Operations -
Free Cash Flow
Restructuring and other charges $ - $ - 0.30 Return on Assets * Capital Expenditures (63) (8) -87.996%
Impairment of intangible assets $ - $ - 0.66 0.296 Financing Cost Ratio *
Net (gain) loss on disposals of assets $ (6.00) $ (6.00) 1.48 Capital Structure Leverage Current Ratio Current Assets 4,830 4,830
Other income, net $ (3.00) $ (3.00) Current Liabilities 3,197 3,252
Total $ 13,054.00 $ (236.00) $ 12,818.00 Sustainable growth rate 0.296 ROCE*
0.287
Earnings (loss) before interest and income taxes $ 1,124.00 $ 236.00 $ 1,360.00 0.968 (1-dividend payout rate) 1.51 1.49 -1.7%
Interest expense $ 168.00 $ 168.00
Interest income $ (23.00) $ (23.00) Quick Ratio Current Monetary Assets 2,659 2,659
Loss on debt extinguishment $ 98.00 $ 98.00 Current Monetary Liabilities 3,197 3,252
Other financial costs $ - $ -
Net periodic benefit cost $ 69.00 $ 69.00 0.83 0.82 -1.7%
Net interest and other financial costs $ 312.00 $ - $ 312.00
Earnings (loss) before income taxes $ 812.00 $ 236.00 $ 1,048.00 Total Debt to Equity Total Liabilities 6,779 7,043
Income tax benefit provision $ (303.00) $ 88 $ (214.92) Shareholder's Equity 4,202 4,202
Net earnings (loss) $ 1,115.00 $ 148 $ 1,262.92
Less: Net earnings attributable to noncontrolling interests $ - $ - 1.61 1.68 3.9%
Earnings (loss) attributable to United States Steel Corporation $ 1,115.00 $ 148 $ 1,263
Earnings (loss) per common share Financing Debt to Equity Financing Liabilities 2,381 2,645
Shareholder's Equity 4,202 4,202

0.57 0.63 11.1%

Long Term Ability of Five Years of Financing Debt

Cash Flow from Maturities + Five Years of
Adjusting Journal Entries DR CR Operations to Cover Dividends (cur div paid * 5) 492 723
Debt and Dividends Cash Flow from Operations 938 993
2017
LIFO Reserve 802 0.52 0.73 38.8%
Deferred income taxes 202
Retained earnings 600

2018
LIFO Reserve 236
Cost of sales 236
Income tax provision 88
Deferred income taxes 88

2018 Adj 2018 Accounts Receivable Average A/R, Net * 365

Accounts receivable turnover (days) 39.1 39.1 Turnover (days) Sales
Inventory turnover (days) 56.8 85.7
Accounts payable turnover (days) 68.6 68.6 Inventory Turnover Average Inventory * 365

Deferred revenue turnover (days) - - (days) Cost of Goods Sold

Net operating cycle 27.3 56.3
Accounts Payable Average A/P * 365
Turnover Purchases
Purchases (for AP turnover)
Ending inventory 2,092 3,130 Deferred Revenue Average Deferred Revenues * 365
+ Cost of goods sold 12,305 12,069 Turnover Revenues *
- Beginning inventory 1,738 2,540
Total purchases 12,659 12,659
United States Steel Corporation
Consolidated Balance Sheets
(in millions)
2018

Assets
Current assets:
Cash and cash equivalents $ 1,000.00
Receivables, less allowance of $29 and $28 $ 1,435.00
Receivables from related parties $ 224.00
Inventories $ 2,092.00
Other current assets $ 79.00
Total current assets $ 4,830.00
Investments and long-term receivables, less allowance of $5 and $11 $ 513.00
Property, plant and equipment, net $ 4,865.00
Intangibles - net $ 158.00
Deferred income tax benefits $ 445.00
Other noncurrent assets $ 171.00
Total assets $ 10,982.00

Liabilities
Current liabilities:
Accounts payable and other accrued liabilities $ 2,454.00
Accounts payable to related parties $ 81.00
Payroll and benefits payable $ 440.00
Accrued taxes $ 118.00
Accrued interest $ 39.00
Short-term debt and current maturities of long-term debt $ 65.00
Total current liabilities $ 3,197.00
Long-term debt, less unamortized discount and debt issuance costs $ 2,316.00
Employee benefits $ 980.00
Deferred income tax liabilities $ 14.00
Deferred credits and other noncurrent liabilities $ 272.00
Total liabilities $ 6,779.00
Stockholdes' Equity
Common stock $ 177.00
Treasury stock $ (78.00)
Additional paid-in-capital $ 3,917.00
Retained earnings $ 1,212.00
Accumulated other comprehensive loss $ (1,026.00)
Total United States Steel Corporation stockholders' equity $ 4,202.00
Noncontrolling interest $ 1.00
Total liabilities and stockholders' equity $ 10,982.00

United States Steel Corporation

Consolidated Statements of Operations
(in millions)
2018

Net sales:
Net sales $ 12,758.00
Net sales to related parties $ 1,420.00
Total $ 14,178.00
Operating expenses (income):
Cost of sales (excludes items shown below) $ 12,305.00
Selling, general and administrative expenses $ 336.00
Depreciation, depletion and amortization $ 521.00
Earnings from investees $ (61.00)
Gain on equity investee transactions $ (38.00)
Gain associated with U.S. Steel Canada, Inc. $ -
Restructuring and other charges $ -
Impairment of intangible assets $ -
Net (gain) loss on disposals of assets $ (6.00)
Other income, net $ (3.00)
Total $ 13,054.00
Earnings (loss) before interest and income taxes $ 1,124.00
Interest expense $ 168.00
Interest income $ (23.00)
Loss on debt extinguishment $ 98.00
Other financial costs $ -
Net periodic benefit cost $ 69.00
Net interest and other financial costs $ 312.00
Earnings (loss) before income taxes $ 812.00
Income tax benefit provision $ (303.00)
Net earnings (loss) $ 1,115.00
Less: Net earnings attributable to noncontrolling interests $ -
Earnings (loss) attributable to United States Steel Corporation $ 1,115.00
Earnings (loss) per common share
 LIFO LIFO (Adjusted) 2017
Prior Yr Current Yr 2018 Current Yr

$ 1,000.00 $ 1,553.00
$ 1,435.00 $ 1,173.00
$ 224.00 $ 206.00
802 236 $ 3,130.00 $ 1,738.00
$ 79.00 $ 85.00
$ 4,830.00 $ 4,755.00
$ 513.00 $ 480.00
$ 4,865.00 $ 4,280.00
$ 158.00 $ 167.00
$ 445.00 $ 56.00
$ 171.00 $ 124.00
$ 10,982.00 $ 9,862.00
$ -
$ -
$ -
$ 2,454.00 $ 2,148.00
$ 81.00 $ 74.00
$ 440.00 $ 347.00
$ 118.00 $ 132.00
$ 39.00 $ 69.00
$ 65.00 $ 3.00
$ 3,197.00 $ 2,773.00
$ 2,316.00 $ 2,700.00
$ 980.00 $ 759.00
202 88 $ 304.08 $ 6.00
$ 272.00 $ 303.00
202 88 $ 7,069.00 $ 6,541.00
 $ -
$ -
$ 177.00 $ 176.00
$ (78.00) $ (76.00)
$ 3,917.00 $ 3,932.00
600 148 $ 1,960.00 $ 133.00
$ (1,026.00) $ (845.00)
$ 4,202.00 $ 3,320.00
$ 1.00 $ 1.00
600 236 $ 11,818.00 $ 9,862.00

LIFO (Adjusted)
Current Yr 2018

$ 12,758.00
$ 1,420.00
$ 14,178.00
$ -
-236 $ 12,069.00
$ 336.00
$ 521.00
$ (61.00)
$ (38.00)
$ -
$ -
$ -
$ (6.00)
$ (3.00)
$ 12,818.00
$ 1,124.00
$ 168.00
$ (23.00)
$ 98.00
$ -
$ 69.00
$ 312.00
236 $ 1,048.00
88 $ (214.92)
148 $ 1,262.92
$ -
$ 1,263
 LIFO (Adjusted)
Current Yr 2017

$ 1,553.00
$ 1,173.00
$ 206.00
802 $ 2,540.00 LIFO Reserve 802
$ 85.00 Deffered tax liability 88
$ 4,755.00 Retained earning 148
$ 480.00
$ 4,280.00
$ 167.00
$ 56.00
$ 124.00
$ 10,664.00

$ 2,148.00
$ 74.00
$ 347.00
$ 132.00
$ 69.00
$ 3.00
$ 2,773.00
$ 2,700.00
$ 759.00
202 $ 208.00
$ 303.00
$ 6,743.00
 $ 176.00
$ (76.00)
$ 3,932.00
600 $ 733.00
$ (845.00)
$ 3,320.00
$ 1.00
$ 10,664.00