UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported):
June 30, 2003
United States Steel Corporation
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(Exact name of registrant as specified in its charter)
Delaware 1-16811 25-1897152
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
600 Grant Street, Pittsburgh, PA 15219-2800
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(Address of principal executive (Zip Code)
offices)
(412) 433-1121
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(Registrant's telephone number,
including area code)
2
Item 2. Acquisition or Disposition of Assets
On June 30, 2003, United States Steel Corporation (U. S. Steel) completed the
sale of the mines and related assets of U. S. Steel Mining Company, LLC (USM) to
a newly formed company, PinnOak Resources, LLC (PinnOak), which is not
affiliated with U. S. Steel. PinnOak and its affiliated companies acquired the
coal reserves and related assets of USM's Pinnacle No. 50 mine complex located
near Pineville, West Virginia, and the Oak Grove mine complex located near
Birmingham, Alabama. In conjunction with the sale, U. S. Steel and PinnOak
entered into a long-term coal supply agreement, which runs through
December 31, 2006.
The gross proceeds from the sale are estimated to be $58 million, of which
$50 million was received at closing and an estimated $8 million that primarily
relates to an adjustment to the purchase price based on inventory levels at
June 30, 2003, will be received in the fourth quarter. U. S. Steel recognized
a pretax gain of $7 million on the sale in the second quarter of 2003. In
addition, as a result of exiting the coal mining business, U. S. Steel
recognized the present value of obligations related to a multiemployer health
care benefit plan created by the Coal Industry Retiree Health Benefit Act of
1992 in the amount of $85 million. This will be accounted for as an
extraordinary loss, net of tax benefits.
Item 7. Financial Statements and Exhibits
The pro forma financial statements reflecting the sale of USM's assets as
required by this item were previously reported by U. S. Steel in the Form 8-K
dated May 20, 2003, and appear on pages S-26 to S-35 of Exhibit 99.2.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
UNITED STATES STEEL CORPORATION
By /s/ Larry G. Schultz
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Larry G. Schultz
Vice President and Controller
Dated: July 15, 2003