Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

United States Steel Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net sales	19,123)	18,964)	8,765)	11,506)	12,758)
Net sales to related parties	1,942)	1,311)	976)	1,431)	1,420)
Net sales	21,065)	20,275)	9,741)	12,937)	14,178)
Cost of sales	(16,777)	(14,533)	(9,558)	(12,082)	(12,305)
Gross profit	4,288)	5,742)	183)	855)	1,873)
Selling, general and administrative expenses	(422)	(426)	(274)	(289)	(336)
Depreciation, depletion and amortization	(791)	(791)	(643)	(616)	(521)
Earnings (loss) from investees	243)	170)	(117)	79)	61)
Gain on sale of Transtar	—)	506)	—)	—)	—)
Asset impairment charges	(163)	(273)	(263)	—)	—)
Restructuring and other charges	(48)	(128)	(138)	(275)	—)
Gain on equity investee transactions	6)	111)	31)	—)	38)
Net gains on sale of assets	12)	7)	149)	1)	6)
Other gains (losses), net	35)	28)	(3)	15)	3)
Earnings (loss) before interest and income taxes	3,160)	4,946)	(1,075)	(230)	1,124)
Interest expense	(159)	(313)	(280)	(142)	(168)
Interest income	44)	4)	7)	17)	23)
Loss on debt extinguishment	—)	(292)	—)	—)	(98)
Foreign currency net gain (loss)	(11)	(17)	15)	17)	19)
Amended Credit Agreement	(5)	(6)	(3)	(5)	(5)
USSK Credit Facility	(3)	(4)	(2)	(1)	(3)
Other	(4)	(5)	21)	(10)	(3)
Financial costs	(12)	(15)	16)	(16)	(11)
Amortization of discounts and deferred financing costs	(9)	(14)	(15)	(7)	(8)
Other financial benefits (costs)	(32)	(46)	16)	(6)	—)
Net periodic benefit income (costs), other than service cost	246)	45)	25)	(91)	(69)
Net interest and other financial benefits (costs)	99)	(602)	(232)	(222)	(312)
Earnings (loss) before income taxes	3,259)	4,344)	(1,307)	(452)	812)
Income tax (expense) benefit	(735)	(170)	142)	(178)	303)
Net earnings (loss)	2,524)	4,174)	(1,165)	(630)	1,115)
Net earnings attributable to noncontrolling interests	—)	—)	—)	—)	—)
Net earnings (loss) attributable to United States Steel Corporation	2,524)	4,174)	(1,165)	(630)	1,115)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Net Sales: Net sales showed a fluctuating trend with a notable decline from 2018 to 2020, decreasing from approximately $14.2 billion to $9.7 billion. However, there was a strong recovery in 2021 and 2022, with sales increasing substantially to over $20 billion in both years. Sales to related parties followed a similar pattern, with a slight dip in 2020 and a marked increase by 2022.
Cost of Sales and Gross Profit: Cost of sales trended downward from 2018 to 2020, aligning with the decrease in net sales. From 2021 onwards, costs increased significantly, peaking in 2022 at approximately $16.8 billion. Gross profit declined sharply from $1.9 billion in 2018 to a low of $183 million in 2020 but rebounded sharply in 2021 to over $5.7 billion before decreasing to $4.3 billion in 2022. This suggests improved operational efficiency or pricing power in 2021 and 2022 despite higher costs.
Operating Expenses and Depreciation: Selling, general and administrative expenses remained relatively stable, fluctuating slightly around $300–$400 million during the period. Depreciation, depletion, and amortization expenses steadily increased from $521 million in 2018 to $791 million by 2021 and remained constant through 2022, indicating ongoing asset investment or aging asset base.
Investments and Gains: Earnings (loss) from investees were positive in most years except for 2020, where a loss of $117 million was reported. There was a significant non-recurring gain on sale of Transtar assets in 2021 amounting to $506 million, which contributed substantially to that year's earnings. Other gains and losses showed minor fluctuations but generally reflected small net gains.
Impairments and Restructuring: Asset impairment charges were absent in 2018 and 2019 but appeared in 2020 through 2022, with charges diminishing over time from $263 million in 2020 to $163 million in 2022. Restructuring and other charges were significant in 2019, modestly reduced in subsequent years, and decreased to $48 million by 2022, indicating ongoing efforts to streamline operations.
Earnings before Interest and Taxes: This metric declined into negative territory in 2019 and 2020, reflecting operational challenges, but recovered strongly in 2021 with earnings of $4.9 billion before decreasing somewhat to $3.2 billion in 2022. This pattern corresponds with the gross profit and net sales trends, emphasizing the recovery post-2020.
Interest and Financial Expenses: Interest expense varied over the years, peaking in 2021 at $313 million and falling back to $159 million in 2022. Interest income showed a decreasing trend until 2021, then jumped to $44 million in 2022. Various financial costs, losses on debt extinguishment, and credit facility expenses fluctuated with no consistent trend but were generally small relative to interest expense. Notably, net periodic benefit income shifted from a cost in earlier years to a substantial income of $246 million in 2022, improving overall financial results.
Income Taxes: Income tax expense was volatile, with benefits reported in 2018 and 2020, and significant expenses in 2019, 2021, and particularly in 2022, where tax expense increased to $735 million, indicating higher taxable earnings or changes in tax positions.
Net Earnings: Net earnings experienced a pronounced downward trend in 2019 and 2020, resulting in losses of $630 million and $1.2 billion respectively. However, there was a remarkable turnaround in 2021 with net earnings exceeding $4.1 billion, followed by a decrease to $2.5 billion in 2022. This reflects strong recovery efforts and improved profitability, despite increased costs and tax expenses.

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United States Steel Corp. (NYSE:X)

Income Statement