Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 334

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 334
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  As it relates to future volume ofshipments, future selling prices and variable costs, we compared management’s estimates toavailable external third-party data regarding demand, selling prices and raw material prices.Specifically, as it relates to the estimate of the recoverable amount of ArcelorMittal Kryvyi RihCGU (representing the Company’s operations in Ukraine), we evaluated the reasonablenessof management’s assumption as it relates to the timing for the end of war and the length of thepost-war recovery period, by independently developing a reasonable range of point estimatesand comparing to management’s estimate.With the assistance of our valuation specialists, we evaluated the effects of climate-relatedmatters, including their impact on risk premiums and discount rates by considering, amongother factors, current legislation and regulations related to carbon emissions, as well as theCompany’s ongoing initiatives to transition to lower-carbon operations. Also, as part of ourprocedures, we compared expected decarbonization capital expenditures against approvedbudgets and where applicable, costs incurred to date.With the assistance of our valuation specialists, we evaluated the discounted cash flowsmethodology and assessed the discount rates used in the value in use estimates, bycomparing to underlying source information, testing the mathematical accuracy of thecalculation, developing an independent range of estimates and comparing the discount rateselected by management to our range.We also evaluated the adequacy of the disclosures in Note 5.3 of the consolidated financialstatements. |

Recoverability of Deferred Tax Assets (“DTAs”)

| Description of theMatter | The DTA balance as of December 31, 2024, was $8,942 million, which is primarily related tothe ArcelorMittal S.A. (parent company) tax integration. As explained in Note 10.4 to theconsolidated financial statements, ArcelorMittal S.A. has DTAs primarily related to tax lossesand other tax benefits carried forward. Under current tax law in Luxembourg, tax lossesaccumulated before January 1, 2017, do not expire and are recoverable against future taxableincome. The assessment of the likelihood of future taxable profits being available, andspecifically the length of the forecast periods utilized, requires significant managementjudgment.Auditing the recognition of ArcelorMittal S.A.’s DTA balances is subjective because theestimation requires significant judgment, including the availability of future taxable incomeagainst which tax deductions represented by the DTA can be offset. In addition, auditing therecognition of DTA