2021
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 2021
OR
[ ] TRANSITION
REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF
1934
For the transition period from
to
Commission file number
333-151440
United
States Steel Corporation
Savings
Fund Plan for Salaried Employees
(Full title of the Plan)
United States Steel Corporation
600 Grant Street
Pittsburgh, PA 15219-2800
(Name of issuer of securities held pursuant to plan
and
the address of its principal executive offices)
United States Steel Corporation
Savings Fund Plan for Salaried Employees
Index to Financial Statements and Supplementary
Information
December 31, 2021, and
2020
Page (s)
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Report of Independent Registered Public Accounting Firm |
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Financial Statements |
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Statements of Net Assets Available for Benefits at December 31,
2021 and 2020 |
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Statement of Changes in Net Assets Available for Benefits for the
year ended December 31, 2021 |
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Notes to Financial Statements |
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Supplemental Schedule |
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Schedule H, line 4i - Schedule of Assets (Held at End of Year) at
December 31, 2021 |
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Note: Other schedules required by Section
2520.103-10 of the Department of Labor’s Rules and Regulations for
Reporting and Disclosure under ERISA have been omitted as they are
not applicable.
The Corporation
United States Steel Corporation is a Delaware corporation. It has
executive offices at 600 Grant Street, Pittsburgh, PA 15219-2800.
The terms "Corporation," "Company," "U. S. Steel" and "United
States Steel" when used herein refer to United States Steel
Corporation or United States Steel Corporation and subsidiaries as
required by the context. The term "Plan" when used herein refers to
United States Steel Corporation Savings Fund Plan For Salaried
Employees.
Report of Independent Registered Public Accounting
Firm
To
the Administrator and Plan Participants of
United States Steel Corporation Savings Fund Plan for Salaried
Employees
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available
for benefits of United States Steel Corporation Savings Fund Plan
for Salaried Employees (the “Plan”) as of December 31, 2021 and
2020 and the related statement of changes in net assets available
for benefits for the year ended December 31, 2021, including the
related notes (collectively referred to as the “financial
statements”). In our opinion, the financial statements present
fairly, in all material respects, the net assets available for
benefits of the Plan as of December 31, 2021 and 2020, and the
changes in net assets available for benefits for the year ended
December 31, 2021 in conformity with accounting principles
generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Plan’s
management. Our responsibility is to express an opinion on the
Plan’s financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be
independent with respect to the Plan in accordance with the U.S.
federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance
with the standards of the PCAOB. Those standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement,
whether due to error or fraud.
Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those
risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial
statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis
for our opinion.
Supplemental Information
The supplemental schedule of Form 5500, Schedule H, Part IV, Line
4i — Schedule of Assets (Held at End of Year) as of December 31,
2021 has been subjected to audit procedures performed in
conjunction with the audit of the Plan’s financial statements. The
supplemental schedule is the responsibility of the Plan’s
management. Our audit procedures included determining whether the
supplemental schedule reconciles to the financial statements or the
underlying accounting and other records, as applicable, and
performing procedures to test the completeness and accuracy of the
information presented in the supplemental schedule. In forming our
opinion on the supplemental schedule, we evaluated whether the
supplemental schedule, including its form and content, is presented
in conformity with the Department of Labor’s Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. In our opinion, the supplemental schedule is
fairly stated, in all material respects, in relation to the
financial statements as a whole.
/s/ PricewaterhouseCoopers LLP
Pittsburgh, Pennsylvania
June 17, 2022
We have served as the Plan’s auditor since at least 1981. We have
not been able to determine the specific year we began serving as
auditor of the Plan.
UNITED STATES STEEL CORPORATION SAVINGS FUND PLAN FOR SALARIED
EMPLOYEES
Statements of Net Assets Available for Benefits
($ in thousands)
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December 31, |
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2021 |
2020 |
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Assets |
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Investments: |
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Investments, at fair value (see Notes 9 & 11) |
$ |
1,575,864 |
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$ |
1,396,535 |
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Receivables: |
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Participant Loans (see Note 10) |
8,186 |
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9,481 |
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Investment Sales |
72 |
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514 |
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Total Receivables |
8,258 |
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9,995 |
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Net assets available for benefits |
$ |
1,584,122 |
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$ |
1,406,530 |
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The accompanying notes are an integral part of these financial
statements.
Statement of Changes in Net Assets Available for
Benefits
($ in thousands)
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Year Ended December 31, |
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2021 |
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Additions |
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Earnings on investments: |
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Interest |
$ |
3,244 |
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Dividends |
29,723 |
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Net appreciation in fair value of investments |
206,483 |
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Total earnings on investments |
239,450 |
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Contributions received from: |
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Employers (see Note 1) |
32,620 |
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Participants (including rollovers) |
39,200 |
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Total contributions |
71,820 |
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Total additions |
311,270 |
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Deductions |
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Benefit payments directly to participants or
beneficiaries |
133,210 |
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Administration expenses |
471 |
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Total deductions |
133,681 |
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Net additions |
177,589 |
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Net transfers to the plan (see Note 4) |
3 |
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Net assets available for benefits: |
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Beginning of year |
1,406,530 |
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End of year |
$ |
1,584,122 |
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The accompanying notes are an integral part of these financial
statements.
UNITED STATES STEEL CORPORATION SAVINGS FUND PLAN FOR SALARIED
EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2021 and 2020
1. Plan
description
-
The following description provides general information regarding
the United States Steel Corporation Savings Fund Plan for Salaried
Employees (the Plan), a defined contribution plan which covers
substantially all domestic non-union salaried employees of United
States Steel Corporation (the Company or the Plan Sponsor) and
designated Employing Companies. Eligibility begins in the month
following the month of hire. The Plan is subject to the provisions
of the Employee Retirement Income Security Act of 1974, as amended
(ERISA). Participants should refer to the Summary Plan Description
and the Plan Text for a complete description of the Plan. These
documents are available from the United States Steel and Carnegie
Pension Fund (the Plan Administrator).
a.Contributions
-
The Plan receives (1) Participant contributions (a) as pre-tax,
after-tax and/or Roth 401(k) savings, and/or (b) rollover
contributions, and (2) Employer contributions, as matching
contributions and/or non-contributory defined contribution
Retirement Account contributions. Each component of contributions
is described in further detail below. Eligible employees may save
from 1 percent to 16 percent of base salary (35 percent if annual
base salary in the immediately preceding year is equal to or less
than the threshold amount for determining highly compensated
employees for the year preceding the year in which savings occur)
in half percent increments on a pre-tax basis, an after-tax basis,
as after-tax Roth 401(k) savings or a combination thereof. Other
qualified plan limits include:
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2021 |
2020 |
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Dollar Limit on IRC Sec. 401(k) pre-tax contributions |
$ |
19,500 |
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$ |
19,500 |
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Dollar Limit on IRC Sec. 414(v) catch-up contributions |
$ |
6,500 |
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$ |
6,500 |
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Maximum covered compensation [IRC 401(a)(17)] |
$ |
290,000 |
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$ |
285,000 |
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Highly Compensated Employee Definition |
$ |
130,000 |
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$ |
130,000 |
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The Plan has an auto-enrollment feature where eligible employees
are automatically enrolled in the Plan at a pre-tax contribution
percentage of 3 percent per pay period, unless they select a
different pre-tax contribution percentage amount or make an
affirmative election not to contribute to the Plan. Additionally,
the Plan has an auto-escalation feature where the initial 3 percent
pre-tax contribution percentage will automatically increase by 1
percent on the enrollment anniversary date each year until the
contribution percentage reaches 6 percent. Participants may, at any
time, change their contribution percentage or suspend any future
deductions from their pay. The auto-escalation feature is available
to all participants, even if they were not automatically enrolled.
The annual increase feature applies to Roth 401(k) savings where a
participant has a Roth 401(k) savings election, but not a pre-tax
savings election.
Savings on the first 6 percent of base salary are matched by
company contributions on a dollar-for-dollar basis. Matching
company contributions, which vest when a participant attains three
years of continuous service, are initially invested in United
States Steel Corporation common stock, whereas each participating
employee has the option of having savings invested in full
increments of 1 percent among thirty active investment options as
of December 31, 2021 (see Notes 1(f), 9 and 11). Eligible
participants may also contribute amounts representing the direct
rollover of pre-tax funds from a qualified retirement plan
sponsored by any previous employer or a conduit IRA, or from the
United States Steel Corporation Plan for Employee Pension Benefits
(Revision of 2003). The Plan allows direct rollovers of a lump-sum
distribution from a designated Roth account under a qualified
401(k) plan sponsored by any of the employee’s previous employers.
All investments are participant directed.
Separate investment elections may be made for Employee Savings
(pre-tax savings, after-tax savings, Roth 401(k) savings, catch-up
contributions and Roth 401(k) catch-up contributions), Retirement
Account contributions, rollover account contributions and Roth
401(k) rollover account contributions. All contributions are
deposited in the trust on a monthly basis (more frequently in the
case of employee contributions for eligible employees paid on a
more frequent basis). Monies deposited are reinvested by Fidelity
Management Trust Company (the "Trustee”) in the investment options
specified.
Eligible employees under the Plan (except for union-represented
guardworkers at U. S. Steel Tubular Products, Inc.'s Lone
Star Plant at Lone Star Tubular Operations until October 31, 2020)
participate in a non-contributory defined contribution Retirement
Account maintained under the Plan. With respect to the defined
contribution Retirement Account, the Employing Companies make
contributions, depending on age and base salary, to the employee’s
account on a monthly basis. Percentages are based upon the age of
the participant as of the first day of the month and eligible
salary at the time of the contribution, as noted
below:
UNITED STATES STEEL CORPORATION SAVINGS FUND PLAN FOR SALARIED
EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2021 and 2020
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Age |
Percentage of Monthly Base Salary |
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Less than 35 |
4.75% |
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35 to less than 40 |
6% |
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40 to less than 45 |
7.25% |
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45 and above |
8.5% |
Participants become fully vested in the value of the Retirement
Account after attaining three years of continuous
service.
b.Payment
of benefits -
Unmatched after-tax savings can be withdrawn at any time. Pre-tax
savings and earnings thereon and Roth 401(k) savings and earnings
thereon are available only for withdrawal at termination of
employment or age 59½, except under certain financial hardship
conditions. Vested company contributions and earnings are available
for withdrawal, upon vesting, except that vested company
contributions and a participant’s matched after-tax savings cannot
be withdrawn in a partial withdrawal within 24 months after the
contribution is made. Terminated employees with a vested account
balance of more than $1,000 (including any unpaid loan balance) may
defer distribution until age 70 ½ (age 72 if the participant was
born after June 30, 1949). A participant who terminates employment
for any reason, and who, on the effective date of termination, had
three or more years of continuous service, is entitled to receive
his or her entire account balance, including all company
contributions. A participant who terminates employment for any
reason with less than three years of continuous service will
forfeit nonvested company contributions unless termination is by
reason of permanent layoff, total and permanent disability,
involuntary termination of employment under circumstances which
would satisfy paragraph 2.1 (a) of the United States Steel
Corporation Supplemental Unemployment Benefit Program for Non-Union
Employees, or death. Forfeiture occurs as of the date on which the
participant (i) incurs five consecutive one-year breaks in
continuous service, or (ii) if earlier, receives a distribution of
the entire vested portion of his account.
c.Forfeited
accounts -
Any forfeited nonvested company contributions ($1.093 million
in 2021 and $859 thousand in 2020), from either matching company
contributions or Retirement Account contributions, are credited to
the Company and applied to reduce any subsequent company
contributions required under the Plan and forfeitures or starting
January 1, 2015 be applied to plan expenses. In 2021 and 2020,
company contributions were reduced by $1.010 million and
$1.150 million, respectively, from forfeited nonvested
accounts.
d.Participant
accounts -
Under the investment transfer provisions, and absent any trade
restrictions under Section 16b of the Securities Exchange Act, a
participant can elect to transfer funds (including matching company
contributions) between investments on a daily basis. Transfer
requests made before the time that markets close on a day stock
markets are open are processed after markets close that same day.
All other transfer requests are processed after markets close on
the next day that the stock markets are open. Transfers are
permitted on a daily basis but may be subject to fund specific
restrictions and limited by other pending transfers.
In addition, Fidelity has implemented an excessive trading policy
in the mutual funds it offers under the Plan that also applies to
certain non-Fidelity funds at the request of the applicable fund
manager or Plan Sponsor. Final regulations under ERISA section
408(b)(2) require Fidelity to disclose to participants the
following information: 1) a description of any compensation that
will be charged directly against the amount invested in connection
with the acquisition, sale, transfer of, or withdrawal from an
investment; 2) a description of the annual operating expenses if
the return is not fixed; and 3) a description of any ongoing
expenses in addition to annual operating expenses.
All or part of the taxable portion of a lump-sum distribution from
the United States Steel Corporation Plan for Employee Pension
Benefits may be rolled over into an eligible participant’s account
within 60 days following receipt of the distribution. Eligible
participants may also roll over assets from the qualified plans of
their immediately preceding employer (or from a conduit IRA solely
containing such assets and earnings). Rollovers into the Plan for
2021 and 2020 totaled $13.5 million and $12.4 million, of
which $9.7 million and $10.4 million were transferred
from the United States Steel Corporation Plan for Employee Pension
Benefits, respectively.
e. Notes
receivable from participants -
The loan program enables participants to borrow up to 50 percent of
the value of their vested account (other than the Retirement
Account and the Retiree Health Care Account) subject to certain
provisions. The maximum loan amount is $50,000 and the minimum loan
amount is $500. Repayments of loans are made in level monthly
installments over a period of not less than twelve months or more
than 60 months. A maximum of two loans can be outstanding at any
one time. The interest rate on loans is the Prime Rate as provided
by Reuters as of market close on the last business day of the prior
month plus one percent and remains fixed for the duration of the
loan. The loans bear interest at rates that range from 4.25 to 6.50
percent on loans outstanding December 31, 2021 and 2020. Prepayment
of the entire outstanding loan can be made at any time without
penalty. When payments are not timely received, the loan amount
outstanding at that time becomes subject to taxation. Loans are
recorded at net realizable value in the financial
statements.
UNITED STATES STEEL CORPORATION SAVINGS FUND PLAN FOR SALARIED
EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2021 and 2020
f. Investment
options -
Please refer to the Summary Plan Description for details on the
investment options offered by the Plan.
2. Accounting
policies:
a.Basis
of accounting
-
Financial statements are prepared under the accrual method of
accounting in accordance with accounting principles generally
accepted in the United States of America (US GAAP).
b.Use
of estimates
-
The preparation of the financial statements in conformity with US
GAAP requires management to make estimates and assumptions that
affect the reported amount of assets, liabilities, and changes
therein, and disclosure of contingent assets and liabilities.
Actual results could differ from those estimates.
c.Investment
valuation
-
The Plan’s investments are stated at fair value as defined by
Accounting Standards Codification (ASC) Topic 820,
Fair Value Measurement
(see Note 11).
d.Net
appreciation/depreciation -
The Plan presents in the accompanying Statements of Changes in Net
Assets Available for Benefits the net appreciation/depreciation in
the fair value of its investments which consists of the net
realized gains or losses and the net unrealized appreciation or
depreciation on those investments.
e.Investment
by the trustee
-
The Trustee shall invest any monies received with respect to any
investment option in the appropriate shares, units or other
investments as soon as practicable. Purchases and sales of
securities are recorded on a trade-date basis.
f.Administrative
expenses
- Plan administrative costs may include legal, accounting, trustee,
recordkeeping, and other administrative fees and expenses
associated with maintaining the Plan. Beginning January 1, 2021, an
annual administrative fee of $35 was added to cover the Plan’s
administrative costs. The administrative fee is deducted in
quarterly increments ($8.75 per quarter) from all participant
accounts.
Beginning January 1, 2021, for one investment option, a quarterly
revenue credit is allocated to accounts if held during the prior
quarter. Revenue credits may help reduce overall net cost to invest
and represent the allocation of a portion of the revenue associated
with the option based in part on a Participant's average daily
balance in the fund.
g.Payment
of benefits -
Benefits are recorded when paid.
h.Income
recognition
- Interest income is recorded on the accrual basis. Dividends are
recorded on the ex-dividend date.
i.Participant
loans
- Notes receivable from participants are measured at their unpaid
principal balance plus any accrued but unpaid interest. Interest
income is recorded on the accrual basis. Loans in default are
classified as benefit payments to the participants based upon the
terms of the Plan.
j.Excess
contributions payable
- Amounts payable to participants for contributions in excess of
amounts allowed by the IRS are recorded as a liability with a
corresponding reduction to contributions.
k.Subsequent
events
- The Plan has evaluated subsequent events through June 17,
2022, the date on which the financial statements were available to
be issued.
3.Plan
amendments
-
Effective July 28, 2021 as of the closing of the sale of Transtar,
LLC and subsidiaries (Transtar), the Plan was amended to indicate
that Transtar salaried employees are no longer eligible, are fully
vested (if not already), and have the right to termination
withdrawals.
Effective January 1, 2021 (except as otherwise noted), the Plan was
amended and restated to add/increase fees and update
references to default investment options resulting from investment
option changes.
Effective January 1, 2021, Plan provisions regarding timely
elections by transferred and reemployed employees were clarified
and unnecessary language related to the 2020 cessation and
subsequent restoration of company matching and retirement account
contributions was removed.
4.Transfers
to the plan -
Net transfers to the plan total $7 thousand in 2021 and $196
thousand in 2020. For both years the transfers were primarily
related to voluntary direct plan transfers from the USS 401(k) Plan
for USW-Represented Employees for employees who transferred from
union positions to eligible non-represented positions.
UNITED STATES STEEL CORPORATION SAVINGS FUND PLAN FOR SALARIED
EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2021 and 2020
5.Employer-related
investments
-
Purchases and sales of Company common stock in accordance with
provisions of the Plan are permitted under ERISA.
6.Tax
status
-
The Internal Revenue Service (IRS) has determined and informed the
Plan Sponsor by letter dated January 30, 2014, that the Plan, as
amended and restated effective January 1, 2013, continues to
qualify under §401(a) of the Internal Revenue Code (IRC) of 1986,
as amended, and its related trust is exempt from tax under §501(a)
of the IRC of 1986, as amended. The Plan has been amended
subsequent to the amendments taken into account by the IRS in
conjunction with its issuance of the January 30, 2014 determination
letter. The Plan Sponsor and Tax Counsel for the Plan believe the
Plan is designed and is currently being operated in compliance with
the applicable requirements of the IRC and therefore, believe that
the Plan is qualified, and the related trust is
tax-exempt.
US GAAP requires plan management to evaluate tax positions taken by
the Plan and recognize a tax liability (or asset) if the Plan has
taken an uncertain position that more likely than not would not be
sustained upon examination by the IRS. The Plan Sponsor has
analyzed the tax positions taken by the Plan, and has concluded
that as of December 31, 2021, and 2020, there were no uncertain
positions taken or expected to be taken that would require
recognition of a liability (or asset) or disclosure in the
financial statements. The Plan is subject to routine audits by
taxing jurisdictions; however, there are currently no active audits
in progress for any tax periods. The Plan Sponsor believes it is no
longer subject to examinations by the IRS for the years prior to
2018.
7.Plan
termination
-
The Plan Sponsor believes the existence of the Plan is in the best
interest of its employees and, although it has no intention of
discontinuing it, the Plan Sponsor has the right under the Plan to
terminate the Plan in whole or in part at any time for any reason.
However, in the event of Plan termination, participants would
become 100% vested in their employer contributions and the net
value of the assets of the Plan shall be allocated among the
participants and beneficiaries of the Plan in compliance with
ERISA.
8.Risks
and uncertainties
- Investments are exposed to various risks, such as interest rate,
market and credit risks. Due to the level of risk associated with
these investments and the level of uncertainty related to changes
in the value of these investments, it is at least reasonably
possible that changes in the near term could materially affect
participants’ account balances and the amounts reported in the
Statements of Net Assets Available for Benefits and the Statements
of Changes in Net Assets Available for Benefits.
9.Stable
value common collective trust
- The Plan invests in a stable value common collective trust, the
Fidelity Managed Income Portfolio II - Class 3 (MIP II). MIP II is
managed by the Trustee and invests in assets (typically
fixed-income securities or bond funds and may include derivative
instruments such as futures contracts and swap agreements), enters
into “wrap” contracts issued by third parties, and invests in cash
equivalents represented by shares in money market funds. The Plan’s
investment in MIP II is presented at the net asset value of units
of a bank collective trust. The net asset value, as provided by the
Trustee, is based on the fair value of the underlying investments
held by MIP II less its liabilities.
As an investment option in the Plan, there are no restrictions on
redemptions for this fund. If the Plan were to initiate a full
redemption of the collective trust, then the investment adviser
reserves the right to temporarily delay withdrawal from the trust
in order to ensure that securities liquidations will be carried out
in an orderly business manner. There are no unfunded commitments
related to this investment.
10.Related
party and party-in-interest transactions
- Certain investments of the Plan are mutual funds and common
collective trusts managed by Fidelity Investments. Therefore, these
transactions qualify as party-in-interest transactions. The Trustee
collects management fees by offsetting the investment return in an
amount as noted by the investment’s expense ratio. Therefore, the
Plan is not directly billed for these fees.
One investment fund option available to participants is Company
common stock. As a result, transactions related to this investment
fund qualify as party-in-interest transactions (see Note 5).
Dividends received for 2021 were $0.585 million and 2020 were
$0.347 million. Purchases and sales for 2021 were
$57.7 million and $87.6 million, respectively, and
purchases and sales for 2020 were $36.5 million and
$32.9 million, respectively. The total realized gains and
unrealized gains during 2021 were $26.7 million and
$34.6 million, respectively.
The Plan also holds notes receivable totaling $8.2 million and
$9.5 million in 2021 and 2020, respectively, representing
participant loans that qualify as party-in-interest
transactions.
11.Fair
value measurement
- ASC Topic 820 establishes a single definition of fair value,
creates a three-tier hierarchy as a framework for measuring fair
value based on inputs used to value the Plan’s investments, and
requires additional disclosure about fair value. The hierarchy
gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (level 1) and the
lowest priority to unobservable inputs (level 3). The three levels
of the fair value hierarchy are summarized below.
UNITED STATES STEEL CORPORATION SAVINGS FUND PLAN FOR SALARIED
EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2021 and 2020
•Level
1 - Inputs to the valuation methodology are unadjusted quoted
prices for identical assets or liabilities in active markets that
the Partnership has the ability to access.
•Level
2 - Inputs to the valuation methodology include
▪Quoted
prices for similar assets or liabilities in active
markets;
▪
Quoted prices for identical or similar assets or liabilities in
inactive markets;
▪
Inputs other than quoted prices that are observable for the asset
or liability;
▪Inputs
that are derived principally from or corroborated by observable
market data by correlation or other means.
If the asset or liability has a specified (contractual) term, the
level 2 input must be observable for substantially the full term of
the asset or liability.
•Level
3 - Inputs to the valuation methodology are unobservable and
significant to the fair value measurement.
The Plan’s assets are classified as follows:
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Level 1 |
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Interest-bearing cash |
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Common stock |
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Mutual Funds |
An instrument’s level is based on the lowest level of any input
that is significant to the fair value measurement. Interest-bearing
cash is an investment in a short-term money market fund that is
valued at $1 per share, which approximates fair value. Common stock
is valued at the closing price reported on the active market on
which the individual securities are traded. Mutual funds are valued
at the daily closing price as reported by the fund. Mutual funds
held by the Plan are open-ended mutual funds that are registered
with the U.S. Securities and Exchange Commission. These funds are
required to publish their daily net asset value and to transact at
that price. The mutual funds held by the Plan are deemed to be
actively traded.
Common collective trusts are valued at the net asset value of units
of the bank collective trust. Refer to Note 9 for a description of
the stable value common collective trust. The net asset value is
used as a practical expedient to estimate fair value. This
practical expedient would not be used if it is determined to be
probable that the fund will sell the investment for an amount
different from the reported net asset value. Participant
transactions (purchases and sales) may occur daily. If the Plan
initiates a full redemption of the collective trust, the issuer
reserves the right to require 12 months’ notification in order to
ensure that securities liquidations will be carried out in an
orderly business manner.
The preceding valuation methods described may produce a fair value
calculation that may not be indicative of net realizable value or
reflective of future fair values. Furthermore, although the Plan
believes its valuation methods are appropriate and consistent with
other market participants, the use of different methodologies or
assumptions to determine the fair value of certain financial
instruments could result in a different fair value measurement at
the reporting date.
There were no Level 2 or 3 assets at December 31, 2021 or December
31, 2020.
There were no transfers to Level 3 during the year ended December
31, 2021.
UNITED STATES STEEL CORPORATION SAVINGS FUND PLAN FOR SALARIED
EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2021 and 2020
The following is a summary of the Plan’s assets carried at fair
value:
|
|
|
|
|
|
|
|
|
|
Investments at Fair Value at December 31, 2021 |
|
($ in thousands) |
|
Asset Classes |
Total |
Quoted Prices
(Level 1) |
|
|
Interest-bearing cash |
$ |
21,350 |
|
$ |
21,350 |
|
|
Common stock |
169,779 |
|
169,779 |
|
|
Mutual Funds |
276,404 |
|
276,404 |
|
|
Total assets in the fair value hierarchy |
$ |
467,533 |
|
$ |
467,533 |
|
|
Investments measured at net asset value
(a)
|
1,108,331 |
|
|
|
Investments at fair value |
$ |
1,575,864 |
|
|
|
|
|
|
|
|
|
|
|
|
Investments at Fair Value at December 31, 2020 |
|
($ in thousands) |
|
Asset Classes |
Total |
Quoted Prices
(Level 1) |
|
|
Interest-bearing cash |
$ |
26,507 |
|
$ |
26,507 |
|
|
Common stock |
138,217 |
|
138,217 |
|
|
Mutual Funds |
1,030,637 |
|
1,030,637 |
|
|
Total assets in the fair value hierarchy |
$ |
1,195,361 |
|
$ |
1,195,361 |
|
|
Investments measured at net asset value
(a)
|
201,174 |
|
|
|
Investments at fair value |
$ |
1,396,535 |
|
|
(a)In
accordance with Subtopic 820-10, certain investments that were
measured at net asset value per share (or its equivalent) have not
been classified in the fair value hierarchy. The fair value amounts
presented in this table are intended to permit reconciliation of
the fair value hierarchy to the line items presented in the
Statements of Net Assets Available for Benefits. These investments
represent holdings in the stable value common collective
trust.
UNITED STATES STEEL CORPORATION SAVINGS FUND PLAN FOR SALARIED
EMPLOYEES
EIN 25-1897152/PN 003
Schedule H, Line 4i - Schedule of Assets (Held at End of
Year)
December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
(b) |
(c) |
(e) |
|
|
Identity of Issuer, Borrower, Lessor or Similar Party |
Description of Investment, Including Maturity Date, Rate of
Interest, Collateral, Par or Maturity Value |
Current Value |
|
* |
U. S. Steel Stock Fund - Common Stock |
Employer-related security |
169,767,880 |
|
|
* |
U. S. Steel Stock Fund - Stock Purchase Account |
Employer-related security |
10,678 |
|
|
|
T. Rowe Price Emerging Markets Stock Fund I Class |
Mutual fund |
33,483,683 |
|
|
|
Vanguard Windsor II Fund - Admiral Shares |
Mutual fund |
57,762,917 |
|
|
|
Vanguard Explorer Fund - Admiral Shares |
Mutual fund |
57,056,266 |
|
|
|
Janus Henderson Enterprise Fund Class N |
Mutual fund |
97,225,086 |
|
|
* |
Fidelity Real Estate Investment Portfolio |
Mutual fund |
30,875,973 |
|
|
* |
Fidelity Low Priced Stock Pool |
Common/Collective Trust |
19,951,101 |
|
|
* |
Fidelity® Contrafund® Commingled Pool |
Common/Collective Trust |
156,621,517 |
|
|
* |
Fidelity Freedom Index Income Fund |
Common/Collective Trust |
6,206,239 |
|
|
|
State Street Global All Cap Equity Ex-U.S. Index Fund Class II -
CIT |
Common/Collective Trust |
4,648,293 |
|
|
|
State Street Russell Small/Mid Cap Index Fund CIT |
Common/Collective Trust |
3,161,303 |
|
|
|
State Street S&P 500® Index Securities Lending Series Fund
Class II |
Common/Collective Trust |
228,866,396 |
|
|
|
State Street U.S. Bond Index Securities Lending Series Fund Class
XIV |
Common/Collective Trust |
65,927,537 |
|
|
|
State Street U.S. Inflation Protected Bond Index Securities Lending
Series Fund Class II |
Common/Collective Trust |
25,234,958 |
|
|
* |
Fidelity® Diversified International Commingled Pool |
Common/Collective Trust |
55,532,776 |
|
|
* |
FIAM Index Target Date 2005 Commingled Pool Class T |
Common/Collective Trust |
2,866,987 |
|
|
* |
FIAM Index Target Date 2010 Commingled Pool Class T |
Common/Collective Trust |
5,736,665 |
|
|
* |
FIAM Index Target Date 2015 Commingled Pool Class T |
Common/Collective Trust |
8,063,172 |
|
|
* |
FIAM Index Target Date 2020 Commingled Pool Class T |
Common/Collective Trust |
24,167,951 |
|
|
* |
FIAM Index Target Date 2025 Commingled Pool Class T |
Common/Collective Trust |
47,208,868 |
|
|
* |
FIAM Index Target Date 2030 Commingled Pool Class T |
Common/Collective Trust |
58,470,212 |
|
|
* |
FIAM Index Target Date 2035 Commingled Pool Class T |
Common/Collective Trust |
56,682,104 |
|
|
* |
FIAM Index Target Date 2040 Commingled Pool Class T |
Common/Collective Trust |
41,165,074 |
|
|
* |
FIAM Index Target Date 2045 Commingled Pool Class T |
Common/Collective Trust |
39,646,772 |
|
|
* |
FIAM Index Target Date 2050 Commingled Pool Class T |
Common/Collective Trust |
37,170,020 |
|
|
* |
FIAM Index Target Date 2055 Commingled Pool Class T |
Common/Collective Trust |
19,529,245 |
|
|
* |
FIAM Index Target Date 2060 Commingled Pool Class T |
Common/Collective Trust |
4,428,026 |
|
|
* |
FIAM Index Target Date 2065 Commingled Pool Class T |
Common/Collective Trust |
190,795 |
|
|
* |
Fidelity Managed Income Portfolio II - Class 3 |
Common/Collective Trust |
196,854,709 |
|
|
|
Vanguard Treasury Money Market |
Interest-bearing cash |
21,351,098 |
|
|
* |
Participant Loans |
Maturity dates of 0 - 5 years with interest rates ranging from
4.25% to 6.5% |
8,185,908 |
|
|
|
Total Investments at 12/31/21 |
|
$ |
1,584,050,209 |
|
|
|
* Party-in-interest |
|
|
|
|
|
|
|
|
|
All investments are participant directed. |
|
|
UNITED STATES STEEL CORPORATION SAVINGS FUND PLAN FOR SALARIED
EMPLOYEES
Index to Exhibits
The following exhibit is filed as part of this Form
11-K.
|
|
|
|
|
|
|
|
|
|
Exhibit Number |
|
Exhibit Description |
|
23.1 |
|
|
|
|
|
|
|
|
|
|
|
SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities Exchange
Act of 1934, the administrator of the United States Steel
Corporation Savings Fund Plan For Salaried Employees has duly
caused this annual report to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Pittsburgh,
Commonwealth of Pennsylvania, on June 17, 2022.
UNITED STATES STEEL AND CARNEGIE PENSION FUND, AS PLAN
ADMINISTRATOR
|
|
|
|
|
|
|
By: |
/s/ Tiffany L. Green |
|
Tiffany L. Green, |
|
Comptroller |
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