United States Steel Corporation

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Consolidated Statement of Financial Position Current assets Less Cash ... United States Government securities, at cost (approximates market) Receivables, less estimated bad debts Inventories (details on page 36) Total Current liabilities Working capital Accounts payable Accrued taxes, less United States Government securities of $154,000,000 at December 31, 1960 and $153,300,000 at December 31, 1959. Dividends payable . . . . . . . . . Long-term debt due within one year . Total Miscellaneous investments, less estimated losses United States Government securities set aside for property additions and replacements ..... . Plant and equipment, less depreciation (details on page 35) Operating parts and supplies . . . Costs applicable to future periods. . Total assets less current liabilities Deduct Long-term debt (details on page 36) Reserves for insurance, contingencies and accident and hospital expenses (details on page 35) . . . . . . . . . . . . . . Excess of assets over liabilities and reserves Ownership evidenced by Preferred stock, 7% cumulative, par value $100 (authorized 4,000,000 shares; outstanding 3,602,811 shares) . . . . Common stock (authorized 90,000,000 shares; outstanding 54,033,307 shares at December 31, 1960 and 53,961,007 shares at December 31, 1959) ..... . Par value $16% per share. . . . . . . . $ 900,555,117 Income reinvested in business (see page 31 for addition of $116,935,122 in 1960). 2,041,031,287 Total 32 Dec. 31, 1960 Dec. 31, 1959 $ 276,501,195 $ 258,430,638 175,218,208 257,015,168 218,523,857 311,985,387 725,599,116 596,341,886 1,395,842,376 1,423,773,079 373,065,094 452,895,240 336,194,106 275,756,872 46,835,794 46,793,037 31,652,777 32,789,544 787,747,771 808,234,693 608,094,605 615,538,386 43,036,483 41,402,425 300,000,000 495,000,000 2,787,553,310 2,511,840,798 48,898,855 49,924,902 51,518,319 37,196,216 3,839,101,572 3,750,902,727 422,778,670 454,447,447 114,455,398 112,727,898 $3,301,867,504 $3,183,727,382 $ 360,281,100 $ 360,281,100 2,941,586,404 2,823,446,282 $3,301,867,504 $3,183,727,382
Common stock Under the Stock Option Incentive Plan approved by stockholders in 1951 which made available up to 2,600,000 shares, options to purchase common stock have been granted at various times beginning in 1951 to key management employes, such shares of stock to be made available from authorized unissued or reacquired common stock at market price on the date the options are granted. An option may be exercised in whole at any time, or in part, from time to time during the option period, except that during the first year of the option period it may be exercised only in the event of death or retirement of the optionee. The option period begins on the date the option is granted and ends ten years thereafter, except in cases of death, retirement or other earlier termination. During 1960, options for 294,200 shares were granted to 199 employes at the then market price of $82.00 per share. By exercise of options granted in prior years, 62 optionees purchased 2,500 shares at $20.50 per share, 20,400 shares at $18.50 per share, 30,450 shares at $48.00 per share and 18,950 shares at $55.00 per share during 1960. At December 31, 1960, 277 optionees held options to purchase 518,705 shares at prices ranging from $18.50 to $82.00 per share for a total of $35,759,810 on options granted at various .times beginning in 1951, and 267,500 shares were available for future options. U. S. Government securities set aside for property additions and replacements At December 31, 1960, completion of authorized additions to and replacements of facilities required an estimated further expenditure of $500,000,000. To the 'end of 1959, $495,000,000 of U. S. Government securities had been set aside to cover in part such authorjzed expenditures. During 1960, $195,000,000 was used for such purpose leaving a balance of $300,000,000 set aside at December 31, 1960. Wear and exhaustion of facilities For a number of years, U. S. Steel has followed the policy of reflecting accelerated depreciation on the 33 Notes to Financia.l Statements cost of new facilities in the first few years of their lives when the economic usefulness is greatest. As permitted under the Internal Revenue Code the declining balance method of depreciation is being applied to the cost of certain facilities; and the cost of certain other facilities is covered by Certificates of Necessity under the Defense Production Act of 1950 and is being written off at the rate of 20 per cent per year. The effect thereof is to charge to income a greater portion of their cost in the earlier years of life and, therefore, follows the principle of accelerated depreciation. The amount included in wear and exhaustion for the cost of facilities not covered by the declining balance method of depreciation or Certificates of Necessity is for the most part related to U. S. Steel's rate of operations. Reserves for insurance, contingencies and accident and hospital expenses U. S. Steel is, for the most part, a self-insurer of its assets against fire, windstorm, marine and related losses. The insurance reserve of $50,000,000 is held available for absorbing possible losses of this character, and is considered adequate for this purpose. The reserves for contingencies and accident and hospital expenses of $64,455,398, provided mainly in previous years by charges to operations, are held for exceptional unanticipated losses other than those covered by the insurance reserve. Other items Products and Services Sold - Products and services sold includes interest, dividends and other income of $49,637,579 in 1960 and $45,077,476 in 1959. Wages and Salaries - Wages and salaries totaled $1,503,971,235 in 1960 of which $1,453,317,932 was included in costs of products and services sold and the balance was charged to construction. Products and Services Bought - Products and services bought reflects the changes during the year in inventories and deferred costs. These items increased during 1960 approximately $143,000,000.
Page 1: Annual Report 1960 @ United States
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Page 13 and 14: Analog computor, right, in new Elec
Page 16 and 17: 3 2 Lost-T ime Accidents Steel Prod
Page 18 and 19: projected insurance costs in excess
Page 20 and 21: for the 1957 Year Class, under prov
Page 22 and 23: no one of them holds of record as m
Page 24 and 25: This modern continuous quenching an
Page 26 and 27: Statistics adequate to measure accu
Page 31 and 32: Plant & Equipment Expenditures VS.
Page 33: Consolidated Statement of Income 19
Page 37 and 38: Plant and equipment (at cost) Detai
Page 40 and 41: United States Steel and Carnegie Pe
Page 42 and 43: American Bridge Division, 525 Willi

United States Steel Corporation

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