CLIFFS NATURAL RESOURCES INC., 10-Q filed on 4/25/2013
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2013
Apr. 22, 2013
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
CLIFFS NATURAL RESOURCES INC. 
 
Entity Central Index Key
0000764065 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2013 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q1 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
153,095,713 
Trading Symbol
clf 
 
Statements Of Condensed Consolidated Operations (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
REVENUES FROM PRODUCT SALES AND SERVICES
 
 
Product
$ 1,082.6 
$ 1,148.6 
Freight and venture partners' cost reimbursements
57.9 
63.8 
TOTAL REVENUES
1,140.5 
1,212.4 
COST OF GOODS SOLD AND OPERATING EXPENSES
(902.6)
(920.6)
SALES MARGIN
237.9 
291.8 
OTHER OPERATING INCOME (EXPENSE)
 
 
Selling, general and administrative expenses
(48.4)
(59.5)
Exploration costs
(22.7)
(18.8)
Miscellaneous - net
1.5 
9.4 
OTHER OPERATING INCOME (EXPENSE)
(69.6)
(68.9)
OPERATING INCOME
168.3 
222.9 
OTHER INCOME (EXPENSE)
 
 
Interest expense, net
(49.1)
(45.1)
Other non-operating income
1.1 
1.8 
TOTAL OTHER INCOME (EXPENSE)
(48.0)
(43.3)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY LOSS FROM VENTURES
120.3 
179.6 
INCOME TAX BENEFIT
6.0 
213.2 
EQUITY LOSS FROM VENTURES
(5.5)
(6.9)
INCOME FROM CONTINUING OPERATIONS
120.8 
385.9 
INCOME FROM DISCONTINUED OPERATIONS, net of tax
5.5 
NET INCOME
120.8 
391.4 
INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
(13.8)
(15.6)
NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
107.0 
375.8 
PREFERRED STOCK DIVIDENDS
(9.9)
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS
$ 97.1 
$ 375.8 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - BASIC
 
 
Continuing operations
$ 0.66 
$ 2.60 
Discontinued operations
$ 0.00 
$ 0.04 
Earnings per Common Share Attributable to Cliffs Shareholders - Basic:
$ 0.66 
$ 2.64 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - DILUTED
 
 
Continuing operations
$ 0.66 
$ 2.59 
Discontinued operations
$ 0.00 
$ 0.04 
Earnings per Common Share Attributable to Cliffs Shareholders - Diluted:
$ 0.66 
$ 2.63 
AVERAGE NUMBER OF SHARES (IN THOUSANDS)
 
 
Basic
147,827 
142,226 
Diluted
148,081 
142,709 
CASH DIVIDENDS DECLARED PER DEPOSITARY SHARE
$ 0.34 
$ 0.00 
CASH DIVIDENDS DECLARED PER COMMON SHARE
$ 0.15 
$ 0.28 
Statements Of Condensed Consolidated Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Statement of Other Comprehensive Income [Abstract]
 
 
NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$ 107.0 
$ 375.8 
OTHER COMPREHENSIVE INCOME
 
 
Pension and OPEB liability, net of tax
6.5 
6.2 
Unrealized net gain on marketable securities, net of tax
2.6 
2.3 
Unrealized net gain on foreign currency translation
3.3 
10.9 
Unrealized net gain (loss) on derivative financial instruments, net of tax
(7.0)
3.8 
OTHER COMPREHENSIVE INCOME
5.4 
23.2 
OTHER COMPREHENSIVE INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST
(1.2)
(1.5)
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$ 111.2 
$ 397.5 
Statements Of Condensed Consolidated Financial Position (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
CURRENT ASSETS
 
 
Cash and cash equivalents
$ 287.2 
$ 195.2 
Accounts receivable, net
272.3 
329.0 
Inventories
630.1 
436.5 
Supplies and other inventories
270.0 
289.1 
Derivative assets
66.4 
78.6 
Other current assets
297.9 
321.6 
TOTAL CURRENT ASSETS
1,823.9 
1,650.0 
PROPERTY, PLANT AND EQUIPMENT, NET
11,236.3 
11,207.3 
OTHER ASSETS
 
 
Investments in ventures
131.8 
135.8 
Goodwill
167.6 
167.4 
Intangible assets, net
124.5 
129.0 
Deferred income taxes
137.3 
91.8 
Other non-current assets
200.5 
193.6 
TOTAL OTHER ASSETS
761.7 
717.6 
TOTAL ASSETS
13,821.9 
13,574.9 
CURRENT LIABILITIES
 
 
Accounts payable
299.9 
555.5 
Accrued expenses
470.5 
442.6 
Income taxes payable
81.5 
28.3 
Current portion of debt
94.1 
Deferred revenue
22.9 
35.9 
Other current liabilities
226.6 
225.1 
TOTAL CURRENT LIABILITIES
1,101.4 
1,381.5 
PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES
600.0 
618.3 
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
240.4 
252.8 
DEFERRED INCOME TAXES
1,114.4 
1,108.1 
LONG-TERM DEBT
3,433.0 
3,960.7 
OTHER LIABILITIES
473.7 
492.6 
TOTAL LIABILITIES
6,962.9 
7,814.0 
COMMITMENTS AND CONTINGENCIES (SEE NOTE 19)
   
   
CLIFFS SHAREHOLDERS' EQUITY
 
 
Preferred Stock - no par value, Class A - 3,000,000 shares authorized, 7 % Series A Mandatory Convertible, Class A, no par value and $1,000 per share liquidation preference (See Note 15), Issued and Outstanding - 731,250 shares (2012 - none)
731.3 
Common Shares - par value $0.125 per share, Authorized - 400,000,000 shares (2012- 400,000,000 shares); Issued - 159,545,469 shares (2012 - 149,195,469 shares); Outstanding - 153,095,702 shares (2012 - 142,495,902 shares)
19.8 
18.5 
Capital in excess of par value of shares
2,020.9 
1,774.7 
Retained earnings
3,291.7 
3,217.7 
Cost of 6,449,767 common shares in treasury (2012 - 6,699,567 shares)
(307.7)
(322.6)
Accumulated other comprehensive loss
(51.4)
(55.6)
TOTAL CLIFFS SHAREHOLDERS' EQUITY
5,704.6 
4,632.7 
NONCONTROLLING INTEREST
1,154.4 
1,128.2 
TOTAL EQUITY
6,859.0 
5,760.9 
TOTAL LIABILITIES AND EQUITY
$ 13,821.9 
$ 13,574.9 
Statements Of Condensed Consolidated Financial Position (Parenthetical) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Class of Stock [Line Items]
 
 
Preferred stock, par value
$ 0 
 
Cumulative Mandatory Convertible
7.00% 
 
Common shares, par value
$ 0.125 
$ 0.125 
Common shares, authorized (in shares)
400,000,000 
400,000,000 
Common shares, issued (in shares)
159,545,469 
149,195,469 
Common shares, outstanding
153,095,702 
142,495,902 
Common shares in treasury
6,449,767 
6,699,567 
Preferred Class A [Member]
 
 
Class of Stock [Line Items]
 
 
Preferred Stock, Liquidation Preference Per Share
$ 1,000 
 
Preferred stock, shares authorized (in shares)
3,000,000 
 
Preferred Shares, Issued and Outstanding, Shares
731,250 
Preferred Class B [Member]
 
 
Class of Stock [Line Items]
 
 
Preferred stock, shares authorized (in shares)
4,000,000 
 
Statements Of Condensed Consolidated Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
OPERATING ACTIVITIES
 
 
Net income
$ 120.8 
$ 391.4 
Adjustments to reconcile net income to net cash provided (used) by operating activities:
 
 
Depreciation, depletion and amortization
140.6 
117.3 
Derivatives and currency hedges
5.2 
(9.9)
Equity loss in ventures (net of tax)
5.5 
6.9 
Pensions and other postretirement benefits
(11.0)
(24.8)
Deferred income taxes
(46.3)
(248.5)
Changes in deferred revenue and below-market sales contracts
(14.9)
(23.3)
Other
5.2 
(5.7)
Changes in operating assets and liabilities:
 
 
Receivables and other assets
102.7 
(9.5)
Product inventories
(194.0)
(219.0)
Payables and accrued expenses
(139.2)
(103.9)
Net cash used by operating activities
(25.4)
(129.0)
INVESTING ACTIVITIES
 
 
Purchase of property, plant and equipment
(230.4)
(241.1)
Investments in ventures
(11.2)
Other investing activities
2.0 
0.3 
Net cash used by investing activities
(228.4)
(252.0)
FINANCING ACTIVITIES
 
 
Net proceeds from issuance of Series A, Mandatory Convertible Preferred Stock, Class A
709.4 
Net proceeds from issuance of common shares
285.6 
Repayment of term loan
(847.1)
(12.5)
Borrowings under revolving credit facility
297.0 
Repayment under revolving credit facility
(72.0)
Contributions by joint ventures, net
11.3 
30.0 
Common stock dividends
(22.9)
(39.7)
Other financing activities
(15.4)
1.0 
Net cash provided (used) by financing activities
345.9 
(21.2)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
(0.1)
2.9 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
92.0 
(399.3)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
195.2 
521.6 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$ 287.2 
$ 122.3 
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
BUSINESS SUMMARY AND SIGNIFICANT ACCOUNTING POLICIES
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with SEC rules and regulations and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments) necessary to present fairly, the financial position, results of operations, comprehensive income and cash flows for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its estimates on various assumptions and historical experience, which are believed to be reasonable; however, due to the inherent nature of estimates, actual results may differ significantly due to changed conditions or assumptions. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of results to be expected for the year ended December 31, 2013 or any other future period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2012.
Basis of Consolidation
The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly owned and majority-owned subsidiaries, including the following operations:
Name
 
Location
 
Ownership Interest
 
Operation
Northshore
 
Minnesota
 
100.0%
 
Iron Ore
United Taconite
 
Minnesota
 
100.0%
 
Iron Ore
Wabush
 
Newfoundland and Labrador/Quebec, Canada
 
100.0%
 
Iron Ore
Bloom Lake
 
Quebec, Canada
 
75.0%
 
Iron Ore
Tilden
 
Michigan
 
85.0%
 
Iron Ore
Empire
 
Michigan
 
79.0%
 
Iron Ore
Koolyanobbing
 
Western Australia
 
100.0%
 
Iron Ore
Pinnacle
 
West Virginia
 
100.0%
 
Coal
Oak Grove
 
Alabama
 
100.0%
 
Coal
CLCC
 
West Virginia
 
100.0%
 
Coal

Intercompany transactions and balances are eliminated upon consolidation.
Also included in our consolidated results are Cliffs Chromite Ontario Inc. and Cliffs Chromite Far North Inc. Cliffs Chromite Ontario, Inc. holds a 100 percent interest in each of the Black Label and Black Thor chromite deposits and, together with Cliffs Chromite Far North Inc., a 70 percent interest in the Big Daddy chromite deposit, all located in northern Ontario, Canada.
Equity Method Investments
Investments in unconsolidated ventures that we have the ability to exercise significant influence over, but not control, are accounted for under the equity method. The following table presents the detail of our investments in unconsolidated ventures and where those investments are classified in the Statements of Unaudited Condensed Consolidated Financial Position as of March 31, 2013 and December 31, 2012. Parentheses indicate a net liability.
 
 
 
 
 
 
 
 
(In Millions)
Investment
 
Classification
 
Accounting
Method
 
Interest
Percentage
 
March 31, 2013
 
December 31, 2012
Amapá
 
Investments in ventures
 
Equity Method
 
30
 
$
96.9

 
$
101.9

Cockatoo
 
Other liabilities
 
Equity Method
 
50
 
(25.4
)
 
(25.3
)
Hibbing
 
Investments in ventures (1)
 
Equity Method
 
23
 
1.4

 
(2.1
)
Other
 
Investments in ventures
 
Equity Method
 
Various
 
33.5

 
33.9

 
 
 
 
 
 
 
 
$
106.4

 
$
108.4

                                         
(1)     At December 31, 2012 the classification for Hibbing was Other liabilities.
Amapá
On December 27, 2012, our board of directors authorized the sale of our 30 percent interest in Amapá. Together with Anglo American plc., we will be selling our respective interest in a 100 percent sale transaction to a single entity. On March 28, 2013, an unknown event caused the Santana port shiploader to collapse into the Amazon river, preventing further ship loading by the mine operator, Anglo American. The investigation into the root cause of the collapse is ongoing as Anglo American develops a business continuation plan. The previously announced sale transaction remains in place, but without a projected close date until the port situation is clarified.
Cockatoo Island
In August 2011, we entered into a term sheet with our joint venture partner, HWE Cockatoo Pty Ltd., to sell our beneficial interest in the mining tenements and certain infrastructure of Cockatoo Island to Pluton Resources. On July 31, 2012, the parties entered into a definitive asset sale agreement, which was amended on August 31, 2012. On September 7, 2012, the closing date, Pluton Resources paid as consideration under the asset sale agreement, a nominal sum of AUD $4.00 and assumed ownership of the assets and responsibility for the environmental rehabilitation obligations and other assumed liabilities not inherently attached to the tenements acquired. With respect to those rehabilitation obligations and assumed liabilities that are inherently attached to the tenements, those obligations and liabilities will automatically transfer to, and be assumed by, Pluton Resources upon registration of each of the tenements in Pluton Resources' name. Registration of the tenements in Pluton Resources' name cannot occur until the requisite bonds and stamped transfer forms are lodged by Pluton Resources with the Department of Mining and Petroleum. This process is expected to be completed during the second quarter of 2013. As of March 31, 2013, our portion of the current estimated cost of the rehabilitation is approximately $24 million and will be extinguished upon registration of the tenements in Pluton Resources' name. Cliffs and HWE Cockatoo Pty Ltd. completed the current stage of mining, Stage 3, at Cockatoo Island on September 30, 2012.
Discontinued Operations
On July 10, 2012, we entered into a definitive share and asset sale agreement to sell our 45 percent economic interest in the Sonoma joint venture coal mine located in Queensland, Australia. Upon completion of the transaction on November 12, 2012, we collected approximately AUD $141.0 million in net cash proceeds. The assets sold included our interests in the Sonoma mine along with our ownership of the affiliated washplant and are reflected as Assets held for sale and Liabilities held for sale in the Statements of Unaudited Condensed Consolidated Financial Position and reflected the results of operations as discontinued operations in the Statements of Unaudited Condensed Consolidated Operations for periods presented prior to completion of the sale. The Sonoma operations previously were included in Other within our reportable segments.
Significant Accounting Policies
A detailed description of our significant accounting policies can be found in the audited financial statements for the fiscal year ended December 31, 2012, included in our Annual Report on Form 10-K filed with the SEC. The significant accounting policies requiring updates have been included within the disclosures below.
Other Intangible Assets and Liabilities
Other intangible assets are subject to periodic amortization on a straight-line basis over their estimated useful lives or on a units of production basis as follows:
Intangible Assets
 
Basis
 
Useful Life (years)
Permits - Asia Pacific Iron Ore
 
Units of production
 
Life of mine
Permits - All Other
 
Straight line
 
15 - 40
Utility contracts
 
Straight line
 
5
Leases - North American Coal
 
Units of production
 
Life of mine
Leases - All Other
 
Straight line
 
4.5 - 17.5

Earnings Per Share
We present both basic and diluted earnings per share amounts. Basic earnings per share amounts are calculated by dividing Net Income Attributable to Cliffs Shareholders less any paid or declared but unpaid dividends on our depositary shares by the weighted average number of common shares outstanding during the period presented. Diluted earnings per share amounts are calculated by dividing Net Income Attributable to Cliffs Shareholders by the weighted average number of common shares, common share equivalents under stock plans using the treasury stock method and the number of common shares that would be issued under an assumed conversion of our outstanding depositary shares, each representing a 1/40th interest in a share of our Series A Mandatory Convertible Preferred Stock, Class A, under the if-converted method. Our outstanding depositary shares are convertible into common shares based on the volume weighted average of closing prices of our common stock over the 20 consecutive trading day period ending on the third day immediately preceding the end of the reporting period. Common share equivalents are excluded from EPS computations in the periods in which they have an anti-dilutive effect. See NOTE 18 - EARNINGS PER SHARE for further information.
Recent Accounting Pronouncements
In February 2013, the FASB amended the guidance on the presentation of comprehensive income in order to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendment does not change the current requirements for reporting net income or other comprehensive income in financial statements. Rather, it requires the entity to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The new guidance is effective prospectively for reporting periods beginning after December 15, 2012. We adopted the provisions of guidance required for the period beginning January 1, 2013. Refer to NOTE 16 - SHAREHOLDERS' EQUITY for further information.
SEGMENT REPORTING
SEGMENT REPORTING
NOTE 2 - SEGMENT REPORTING
Our Company’s primary operations are organized and managed according to product category and geographic location: U.S. Iron Ore, Eastern Canadian Iron Ore, Asia Pacific Iron Ore, North American Coal, Latin American Iron Ore, Ferroalloys and our Global Exploration Group. The U.S. Iron Ore segment is comprised of our interests in five U.S. mines that provide iron ore to the integrated steel industry. The Eastern Canadian Iron Ore segment is comprised of two Eastern Canadian mines that primarily provide iron ore to the seaborne market for Asian steel producers. The Asia Pacific Iron Ore segment is located in Western Australia and provides iron ore to the seaborne market for Asian steel producers. The North American Coal segment is comprised of our six metallurgical coal mines and one thermal coal mine that provide metallurgical coal primarily to the integrated steel industry and thermal coal primarily to the energy industry. There are no intersegment revenues.
The Latin American Iron Ore operating segment is comprised of our 30 percent Amapá interest in Brazil. On March 28, 2013, an unknown event caused the Santana port shiploader to collapse into the Amazon river, preventing further ship loading by the mine operator, Anglo American. The investigation into the root cause of the collapse is ongoing as Anglo American develops a business continuation plan. The previously announced sale transaction remains in place, but without a projected close date until the port situation is clarified. The Ferroalloys operating segment is comprised of our interests in chromite deposits held in Northern Ontario, Canada and the Global Exploration Group is focused on early involvement in exploration activities to identify new projects for future development or projects that add significant value to existing operations. The Latin American Iron Ore, Ferroalloys and Global Exploration Group operating segments do not meet reportable segment disclosure requirements and, therefore, are not reported separately.
We evaluate segment performance based on sales margin, defined as revenues less cost of goods sold and operating expenses identifiable to each segment. This measure of operating performance is an effective measurement as we focus on reducing production costs throughout the Company.
The following table presents a summary of our reportable segments for the three months ended March 31, 2013 and 2012, including a reconciliation of segment sales margin to Income from Continuing Operations Before Income Taxes and Equity Loss from Ventures:
 
(In Millions)
 
Three Months Ended
March 31,
 
2013
 
2012
Revenues from product sales and services:
 
 
 
 
 
 
 
U.S. Iron Ore
$
410.1

 
36
%
 
$
441.7

 
36
%
Eastern Canadian Iron Ore
245.3

 
22
%
 
220.7

 
18
%
Asia Pacific Iron Ore
270.8

 
24
%
 
359.8

 
30
%
North American Coal
214.3

 
18
%
 
189.9

 
16
%
Other

 
%
 
0.3

 
%
Total revenues from product sales and services
$
1,140.5

 
100
%
 
$
1,212.4

 
100
%
 
 
 
 
 
 
 
 
Sales margin:
 
 
 
 
 
 
 
U.S. Iron Ore
$
157.3

 
 
 
$
166.9

 
 
Eastern Canadian Iron Ore
19.4

 
 
 
(14.3
)
 
 
Asia Pacific Iron Ore
61.3

 
 
 
125.0

 
 
North American Coal
1.8

 
 
 
14.5

 
 
Other
(1.9
)
 
 
 
(0.3
)
 
 
Sales margin
237.9

 
 
 
291.8

 
 
Other operating expense
(69.6
)
 
 
 
(68.9
)
 
 
Other income (expense)
(48.0
)
 
 
 
(43.3
)
 
 
Income from continuing operations before income taxes and equity loss from ventures
$
120.3

 
 
 
$
179.6

 
 
 
 
 
 
 
 
 
 
Depreciation, depletion and amortization:
 
 
 
 
 
 
 
U.S. Iron Ore
$
26.6

 
 
 
$
23.2

 
 
Eastern Canadian Iron Ore
41.1

 
 
 
37.9

 
 
Asia Pacific Iron Ore
36.4

 
 
 
30.0

 
 
North American Coal
32.5

 
 
 
20.1

 
 
Other
4.0

 
 
 
6.1

 
 
Total depreciation, depletion and amortization
$
140.6

 
 
 
$
117.3

 
 
 
 
 
 
 
 
 
 
Capital additions (1):
 
 
 
 
 
 
 
U.S. Iron Ore
$
11.7

 
 
 
$
34.8

 
 
Eastern Canadian Iron Ore
167.0

 
 
 
130.6

 
 
Asia Pacific Iron Ore
4.3

 
 
 
109.3

 
 
North American Coal
11.1

 
 
 
39.1

 
 
Other
1.6

 
 
 
39.6

 
 
Total capital additions
$
195.7

 
 
 
$
353.4

 
 
                                         
(1)    Includes capital lease additions and non-cash accruals. Refer to NOTE 20 - CASH FLOW INFORMATION.
A summary of assets by segment is as follows:
 
(In Millions)
 
March 31, 2013
 
December 31, 2012
Assets:
 
 
 
U.S. Iron Ore
$
1,848.4

 
$
1,735.1

Eastern Canadian Iron Ore
7,719.7

 
7,605.1

Asia Pacific Iron Ore
1,474.4

 
1,506.3

North American Coal
1,829.7

 
1,877.8

Other
599.3

 
570.9

Total segment assets
13,471.5

 
13,295.2

Corporate
350.4

 
279.7

Total assets
$
13,821.9

 
$
13,574.9

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
NOTE 3 - DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The following table presents the fair value of our derivative instruments and the classification of each in the Statements of Unaudited Condensed Consolidated Financial Position as of March 31, 2013 and December 31, 2012:
 
(In Millions)
 
Derivative Assets
 
Derivative Liabilities
 
March 31, 2013
 
December 31, 2012
 
March 31, 2013
 
December 31, 2012
Derivative
Instrument
Balance Sheet Location
 
Fair
Value
 
Balance
Sheet
Location
 
Fair
Value
 
Balance Sheet
Location
 
Fair
Value
 
Balance Sheet
Location
 
Fair
Value
Derivatives designated as hedging instruments under ASC 815:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Exchange Contracts
Derivative assets
 
$
13.1

 
Derivative assets
 
$
16.2

 
Other current liabilities
 
$
8.5

 
Other current liabilities
 
$
1.9

Total derivatives designated as hedging instruments under ASC 815
 
 
$
13.1

 
 
 
$
16.2

 
 
 
$
8.5

 
 
 
$
1.9

Derivatives not designated as hedging instruments under ASC 815:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer Supply Agreements
Derivative assets
 
$
49.4

 
Derivative assets
 
$
58.9

 
 
 
$

 
 
 
$

Provisional Pricing Arrangements
Derivative assets
 
3.9

 
Derivative assets
 
3.5

 
Other current liabilities
 
6.8

 
Other current liabilities
 
11.3

Total derivatives not designated as hedging instruments under ASC 815
 
 
$
53.3

 
 
 
$
62.4

 
 
 
$
6.8

 
 
 
$
11.3

Total derivatives
 
 
$
66.4

 
 
 
$
78.6

 
 
 
$
15.3

 
 
 
$
13.2


Derivatives Designated as Hedging Instruments
Cash Flow Hedges
Australian and Canadian Dollar Foreign Exchange Contracts
We are subject to changes in foreign currency exchange rates as a result of our operations in Australia and Canada. With respect to Australia, foreign exchange risk arises from our exposure to fluctuations in foreign currency exchange rates because the functional currency of our Asia Pacific operations is the Australian dollar. Our Asia Pacific operations receive funds in U.S. currency for their iron ore sales. The functional currency of our Canadian operations is the U.S. dollar; however, the production costs for these operations primarily are incurred in the Canadian dollar.
We use foreign currency exchange contracts to hedge our foreign currency exposure for a portion of our U.S. dollar sales receipts in our Australian functional currency entities and our Canadian dollar operating costs. For our Australian operations, U.S. dollars are converted to Australian dollars at the currency exchange rate in effect during the period the transaction occurred. For our Canadian operations, U.S. dollars are converted to Canadian dollars at the exchange rate in effect for the period the operating costs are incurred. The primary objective for the use of these instruments is to reduce exposure to changes in Australian and U.S. currency exchange rates and U.S. and Canadian currency exchange rates, respectively, and to protect against undue adverse movement in these exchange rates. These instruments qualify for hedge accounting treatment, and are tested for effectiveness at inception and at least once each reporting period. If and when any of our hedge contracts are determined not to be highly effective as hedges, the underlying hedged transaction is no longer likely to occur, or the derivative is terminated, hedge accounting is discontinued.
As of March 31, 2013, we had outstanding Australian and Canadian foreign currency exchange contracts with notional amounts of $378.0 million and $557.3 million, respectively, in the form of forward contracts with varying maturity dates ranging from April 2013 to March 2014. This compares with outstanding Australian and Canadian foreign currency exchange contracts with a notional amount of $400.0 million and $630.4 million, respectively, as of December 31, 2012.
Changes in fair value of highly effective hedges are recorded as a component of Accumulated other comprehensive loss in the Statements of Unaudited Condensed Consolidated Financial Position. Any ineffectiveness is recognized immediately in income and as of March 31, 2013 and 2012, there was no material ineffectiveness recorded for these foreign exchange contracts. Amounts recorded as a component of Accumulated other comprehensive loss are reclassified into earnings in the same period the forecasted transaction affects earnings. Of the amounts remaining in Accumulated other comprehensive loss related to Australian hedge contracts and Canadian hedge contracts, we estimate that gains of $8.1 million and losses of $5.0 million (net of tax), respectively, will be reclassified into earnings within the next 12 months.
The following summarizes the effect of our derivatives designated as hedging instruments, net of tax in Accumulated other comprehensive loss in the Statements of Unaudited Condensed Consolidated Operations for the three months ended March 31, 2013 and 2012:

(In Millions)
Derivatives in Cash Flow
Amount of Gain (Loss)
Recognized in OCI on Derivative
 
Location of Gain
Reclassified
from Accumulated OCI into Earnings
 
Amount of Gain
Reclassified
from Accumulated
OCI into Earnings
Hedging Relationships
(Effective Portion)
 
(Effective Portion)
 
(Effective Portion)
 
Three Months Ended
March 31,
 
 
 
Three Months Ended
March 31,
 
2013
 
2012
 
 
 
2013
 
2012
Australian Dollar Foreign
Exchange Contracts
(hedge designation)
$
3.2

 
$
3.0

 
Product revenues
 
$
1.8

 
$
3.1

Canadian Dollar Foreign Exchange Contracts (hedge designation)
(8.2
)
 
0.7

 
Cost of goods sold and operating expenses
 
0.2

 
0.5

Total
$
(5.0
)
 
$
3.7

 
 
 
$
2.0

 
$
3.6


Derivatives Not Designated as Hedging Instruments
Customer Supply Agreements
Most of our U.S. Iron Ore long-term supply agreements are comprised of a base price with annual price adjustment factors, some of which are subject to annual price collars in order to limit the percentage increase or decrease in prices for our iron ore pellets during any given year. The base price is the primary component of the purchase price for each contract. The inflation-indexed price adjustment factors are integral to the iron ore supply contracts and vary based on the agreement, but typically include adjustments based upon changes in the Platts 62 percent Fe market rate and/or international pellet prices and changes in specified Producers Price Indices, including those for all commodities, industrial commodities, energy and steel. The pricing adjustments generally operate in the same manner, with each factor typically comprising a portion of the price adjustment, although the weighting of each factor varies based upon the specific terms of each agreement. In most cases, these adjustment factors have not been finalized at the time our product is sold. In these cases, we historically have estimated the adjustment factors at each reporting period based upon the best third-party information available. The estimates are then adjusted to actual when the information has been finalized. The price adjustment factors have been evaluated to determine if they contain embedded derivatives. The price adjustment factors share the same economic characteristics and risks as the host contract and are integral to the host contract as inflation adjustments; accordingly, they have not been separately valued as derivative instruments.
Certain supply agreements with one U.S. Iron Ore customer provide for supplemental revenue or refunds to the customer based on the customer’s average annual steel pricing at the time the product is consumed in the customer’s blast furnace. The supplemental pricing is characterized as a freestanding derivative and is required to be accounted for separately once the product is shipped. The derivative instrument, which is finalized based on a future price, is adjusted to fair value as a revenue adjustment each reporting period until the pellets are consumed and the amounts are settled. We recognized $24.1 million and $39.2 million, respectively, as Product revenues in the Statements of Unaudited Condensed Consolidated Operations for the three months ended March 31, 2013 and 2012, respectively, related to the supplemental payments. Derivative assets, representing the fair value of the pricing factors, were $49.4 million and $58.9 million, respectively, in the March 31, 2013 and December 31, 2012 Statements of Unaudited Condensed Consolidated Financial Position.
Provisional Pricing Arrangements
Certain of our U.S. Iron Ore, Eastern Canadian Iron Ore and Asia Pacific Iron Ore customer supply agreements specify provisional price calculations, where the pricing mechanisms generally are based on market pricing, with the final sales price to be based on market inputs at a specified point in time in the future, per the terms of the supply agreements. The difference between the provisionally agreed-upon price and the estimated final sales price is characterized as a derivative and is required to be accounted for separately once the revenue has been recognized. The derivative instrument is adjusted to fair value through Product revenues each reporting period based upon current market data and forward-looking estimates provided by management until the final sales price is determined. We have recorded $3.9 million and $3.5 million, respectively, as Derivative assets and $6.8 million and $11.3 million, respectively, as derivative liabilities included in Other current liabilities in the Statements of Unaudited Condensed Consolidated Financial Position at March 31, 2013 and December 31, 2012, respectively, related to our estimate of final sales price with our U.S. Iron Ore and Asia Pacific Iron Ore customers at March 31, 2013 and related to our U.S. Iron Ore and Eastern Canadian Iron Ore customers at December 31, 2012. These amounts represent the difference between the provisional price agreed upon with our customers based on the supply agreement terms and our estimate of the final sales price based on the price calculations established in the supply agreements. As a result, we recognized a net $2.9 million as a decrease and a net $3.0 million as an increase in Product revenues in the Statements of Unaudited Condensed Consolidated Operations for the three months ended March 31, 2013 and 2012, respectively, related to these arrangements.
The following summarizes the effect of our derivatives that are not designated as hedging instruments in the Statements of Unaudited Condensed Consolidated Operations for the three months ended March 31, 2013 and 2012:
(In Millions)
Derivatives Not Designated as Hedging Instruments
Location of Gain (Loss) Recognized in
Income on Derivative
Amount of Gain/(Loss) Recognized in Income on Derivative
 
 
Three Months Ended
March 31,
 
 
2013
 
2012
Foreign Exchange Contracts
Other income (expense)
$

 
$
0.3

Customer Supply Agreements
Product revenues
24.1

 
39.2

Provisional Pricing Arrangements
Product revenues
(2.9
)
 
3.0

Total
 
$
21.2

 
$
42.5


Refer to NOTE 8 - FAIR VALUE OF FINANCIAL INSTRUMENTS for additional information.
INVENTORIES
Inventories
NOTE 4 - INVENTORIES
The following table presents the detail of our Inventories in the Statements of Unaudited Condensed Consolidated Financial Position as of March 31, 2013 and December 31, 2012:

(In Millions)

March 31, 2013
 
December 31, 2012
Segment
Finished Goods
 
Work-in Process
 
Total Inventory
 
Finished Goods
 
Work-in
Process
 
Total
Inventory
U.S. Iron Ore
$
293.9

 
$
27.2

 
$
321.1

 
$
147.2

 
$
22.9

 
$
170.1

Eastern Canadian Iron Ore
101.0

 
38.4

 
139.4

 
62.6

 
44.2

 
106.8

Asia Pacific Iron Ore
73.5

 
16.4

 
89.9

 
36.7

 
37.2

 
73.9

North American Coal
49.5

 
30.2

 
79.7

 
36.7

 
49.0

 
85.7

Total
$
517.9

 
$
112.2

 
$
630.1

 
$
283.2

 
$
153.3

 
$
436.5


We recorded lower-of-cost-or-market inventory charges of $2.0 million and $1.3 million in Cost of goods sold and operating expenses in the Statements of Unaudited Condensed Consolidated Operations for the three months ended March 31, 2013 and 2012, respectively, for our North American Coal operations. These charges were a result of market declines and operational and geological issues.
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT
NOTE 5 - PROPERTY, PLANT AND EQUIPMENT
The following table indicates the value of each of the major classes of our consolidated depreciable assets as of March 31, 2013 and December 31, 2012:
 
(In Millions)
 
March 31,
2013
 
December 31, 2012
Land rights and mineral rights
$
7,922.8

 
$
7,920.8

Office and information technology
114.8

 
92.4

Buildings
190.7

 
162.0

Mining equipment
1,342.9

 
1,290.7

Processing equipment
2,081.9

 
1,937.4

Railroad equipment
242.1

 
240.8

Electric power facilities
61.4

 
58.7

Port facilities
114.7

 
114.3

Interest capitalized during construction
20.8

 
20.8

Land improvements
48.7

 
43.9

Other
53.1

 
39.0

Construction in progress
1,013.2

 
1,123.9

 
13,207.1

 
13,044.7

Allowance for depreciation and depletion
(1,970.8
)
 
(1,837.4
)
 
$
11,236.3

 
$
11,207.3


We recorded depreciation and depletion expense of $135.9 million and $111.4 million in the Statements of Unaudited Condensed Consolidated Operations for the periods ended March 31, 2013 and 2012, respectively.
The accumulated amount of capitalized interest included within construction in progress at March 31, 2013 is $24.2 million of which $7.1 million was capitalized during 2013. At December 31, 2012, $17.1 million of capitalized interest was included within construction in progress of which $15.4 million was capitalized during 2012.
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS
NOTE 6 - DISCONTINUED OPERATIONS
The table below sets forth selected financial information related to operating results of our business classified as discontinued operations. While the reclassification of revenues and expenses related to discontinued operations for prior periods have no impact upon previously reported net income, the Statements of Unaudited Condensed Consolidated Operations present the revenues and expenses that were reclassified from the specified line items to discontinued operations. During the fourth quarter of 2012, we sold our 45 percent economic interest in Sonoma. The Sonoma operations previously were included in Other within our reportable segments.
The following table presents detail of our operations related to our Sonoma operations in the Statements of Unaudited Condensed Consolidated Operations:
 
(In Millions)
 
Three Months Ended March 31,
 
2013
 
2012
REVENUES FROM PRODUCT SALES AND SERVICES
 
 
 
Product
$

 
$
52.4

 
 
 
 
INCOME FROM DISCONTINUED OPERATIONS, net of tax
$

 
$
5.5


We recorded income from discontinued operations of $5.5 million, net of $2.4 million in tax expense in Income from Discontinued Operations, net of tax in the Statements of Unaudited Condensed Consolidated Operations for the three months ended March 31, 2012 related to our sale of the Sonoma operations, which was completed as of November 12, 2012.
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES
NOTE 7 - GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES
Goodwill
The following table summarizes changes in the carrying amount of goodwill allocated by operating segment for the three months ended March 31, 2013 and the year ended December 31, 2012:
 
(In Millions)
 
March 31, 2013
 
December 31, 2012
 
U.S. Iron Ore
 
Eastern Canadian Iron Ore
 
Asia Pacific
Iron Ore
 
North American Coal
 
Other
 
Total
 
U.S. Iron Ore
 
Eastern
Canadian Iron Ore
 
Asia Pacific Iron Ore
 
North American Coal
 
Other
 
Total
Beginning Balance
$
2.0

 
$

 
$
84.5

 
$

 
$
80.9

 
$
167.4

 
$
2.0

 
$
986.2

 
$
83.0

 
$

 
$
80.9

 
$
1,152.1

Arising in business combinations

 

 

 

 

 

 

 
13.8

 

 

 

 
13.8

Impairment

 

 

 

 

 

 

 
(1,000.0
)
 

 

 

 
(1,000.0
)
Impact of foreign currency translation

 

 
0.2

 

 

 
0.2

 

 

 
1.5

 

 

 
1.5

Ending Balance
$
2.0

 
$

 
$
84.7

 
$

 
$
80.9

 
$
167.6

 
$
2.0

 
$

 
$
84.5

 
$

 
$
80.9

 
$
167.4

Accumulated Goodwill Impairment Loss
$

 
$
(1,000.0
)
 
$

 
$
(27.8
)
 
$

 
$
(1,027.8
)
 
$

 
$
(1,000.0
)
 
$

 
$
(27.8
)
 
$

 
$
(1,027.8
)

Other Intangible Assets and Liabilities
Following is a summary of intangible assets and liabilities as of March 31, 2013 and December 31, 2012:
 
 
 
(In Millions)
 
 
 
March 31, 2013
 
December 31, 2012
 
Classification
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Definite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Permits
Intangible assets, net
 
$
136.2

 
$
(33.5
)
 
$
102.7

 
$
136.1

 
$
(31.7
)
 
$
104.4

Utility contracts
Intangible assets, net
 
54.7

 
(35.2
)
 
19.5

 
54.7

 
(32.4
)
 
22.3

Leases
Intangible assets, net
 
5.7

 
(3.4
)
 
2.3

 
5.7

 
(3.4
)
 
2.3

Total intangible assets
 
 
$
196.6

 
$
(72.1
)
 
$
124.5

 
$
196.5

 
$
(67.5
)
 
$
129.0

Below-market sales contracts
Other current liabilities
 
$
(46.0
)
 
$
1.9

 
$
(44.1
)
 
$
(46.0
)
 
$

 
$
(46.0
)
Below-market sales contracts
Other liabilities
 
(250.7
)
 
181.6

 
(69.1
)
 
(250.7
)
 
181.6

 
(69.1
)
Total below-market sales contracts
 
 
$
(296.7
)
 
$
183.5

 
$
(113.2
)
 
$
(296.7
)
 
$
181.6

 
$
(115.1
)

Amortization expense relating to intangible assets was $4.7 million and $4.8 million, respectively, for the three months ended March 31, 2013 and 2012, and is recognized in Cost of goods sold and operating expenses in the Statements of Unaudited Condensed Consolidated Operations. The estimated amortization expense relating to intangible assets for each of the five succeeding years is as follows:

(In Millions)

Amount
Year Ending December 31

2013 (remaining nine months)
$
14.5

2014
18.8

2015
7.8

2016
7.7

2017
7.9

2018
7.7

Total
$
64.4


The below-market sales contracts are classified as a liability and recognized over the term of the underlying contracts, which have remaining lives ranging from one to four years. For each of the three months ended March 31, 2013 and 2012, we recognized $1.9 million in Product revenues related to the below-market sales contracts. The following amounts are estimated to be recognized in Product revenues for the remainder of this year and each of the three succeeding fiscal years:
 
(In Millions)
 
Amount
Year Ending December 31
 
2013 (remaining nine months)
$
44.1

2014
23.1

2015
23.0

2016
23.0

Total
$
113.2

FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS
NOTE 8 - FAIR VALUE OF FINANCIAL INSTRUMENTS
The following represents the assets and liabilities of the Company measured at fair value at March 31, 2013 and December 31, 2012:
 
(In Millions)
 
March 31, 2013
Description
Quoted Prices in Active
Markets for Identical Assets/Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents
$
135.0

 
$

 
$

 
$
135.0

Derivative assets

 

 
53.3

 
53.3

Marketable securities
30.0

 

 

 
30.0

Foreign exchange contracts

 
13.1

 

 
13.1

Total
$
165.0

 
$
13.1

 
$
53.3

 
$
231.4

Liabilities:

 

 

 

Derivative liabilities
$

 
$

 
$
6.8

 
$
6.8

Foreign exchange contracts

 
8.5

 

 
8.5

Total
$

 
$
8.5

 
$
6.8

 
$
15.3

 
(In Millions)
 
December 31, 2012
Description
Quoted Prices in Active
Markets for Identical
Assets/Liabilities (Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents
$
100.0

 
$

 
$

 
$
100.0

Derivative assets

 

 
62.4

 
62.4

Marketable securities
27.0

 

 

 
27.0

Foreign exchange contracts

 
16.2

 

 
16.2

Total
$
127.0

 
$
16.2

 
$
62.4

 
$
205.6

Liabilities:

 

 

 

Derivative liabilities
$

 
$

 
$
11.3

 
$
11.3

Foreign exchange contracts

 
1.9

 

 
1.9

Total
$

 
$
1.9

 
$
11.3

 
$
13.2

Financial assets classified in Level 1 at March 31, 2013 and December 31, 2012 include money market funds and available-for-sale marketable securities. The valuation of these instruments is based upon unadjusted quoted prices for identical assets in active markets.
The valuation of financial assets and liabilities classified in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable. Level 2 securities primarily include derivative financial instruments valued using financial models that use as their basis readily observable market parameters. At March 31, 2013 and December 31, 2012, such derivative financial instruments included our existing foreign currency exchange contracts. The fair value of the foreign currency exchange contracts is based on forward market prices and represents the estimated amount we would receive or pay to terminate these agreements at the reporting date, taking into account creditworthiness, nonperformance risk and liquidity risks associated with current market conditions.
The derivative financial assets classified within Level 3 at March 31, 2013 and December 31, 2012 included a freestanding derivative instrument related to certain supply agreements with one of our U.S. Iron Ore customers. The agreements include provisions for supplemental revenue or refunds based on the customer’s annual steel pricing at the time the product is consumed in the customer’s blast furnaces. We account for this provision as a derivative instrument at the time of sale and adjust this provision to fair value as an adjustment to Product revenues each reporting period until the product is consumed and the amounts are settled. The fair value of the instrument is determined using a market approach based on an estimate of the annual realized price of hot-rolled steel at the steelmaker’s facilities, and takes into consideration current market conditions and nonperformance risk.
The Level 3 derivative assets and liabilities at March 31, 2013 and December 31, 2012, also consisted of derivatives related to certain provisional pricing arrangements with our U.S. Iron Ore and Asia Pacific Iron Ore customers at March 31, 2013 and our U.S. Iron Ore and Eastern Canadian Iron Ore customers at December 31, 2012. These provisional pricing arrangements specify provisional price calculations, where the pricing mechanisms generally are based on market pricing, with the final sales price to be based on market inputs at a specified point in time in the future, per the terms of the supply agreements. The difference between the provisionally agreed-upon price and the estimated final sales price is characterized as a derivative and is required to be accounted for separately once the revenue has been recognized. The derivative instrument is adjusted to fair value through Product revenues each reporting period based upon current market data and forward-looking estimates provided by management until the final sales price is determined.
The following table illustrates information about quantitative inputs and assumptions for the derivative assets and derivative liabilities categorized in Level 3 of the fair value hierarchy:
Qualitative/Quantitative Information About Level 3 Fair Value Measurements
($ in millions)
Fair Value at
 
Balance Sheet Location
 
Valuation Technique
 
Unobservable Input
 
Range
(Weighted Average)
3/31/2013
Provisional Pricing Arrangements
$
3.9

 
Derivative assets
 
Market Approach
 
Managements
Estimate of 62% Fe
 
$137
 
$
6.8

 
Other current liabilities
 
 
 
 
 
 
Customer Supply Agreement
$
49.4

 
Derivative assets
 
Market Approach
 
Hot-Rolled Steel Estimate
 
$600 - $645 ($630)

The significant unobservable input used in the fair value measurement of the reporting entity’s provisional pricing arrangements is management’s estimate of 62 percent Fe price based upon current market data, including historical seasonality and forward-looking estimates determined by management. Significant increases or decreases in this input would result in a significantly higher or lower fair value measurement, respectively.
The significant unobservable input used in the fair value measurement of the reporting entity’s customer supply agreements is the future hot-rolled steel price that is estimated based on current market data, analysts' projections, projections provided by the customer and forward-looking estimates determined by management. Significant increases or decreases in this input would result in a significantly higher or lower fair value measurement, respectively.
These significant estimates are determined by a collaboration of our commercial, finance and treasury departments and are reviewed by management.
Substantially all of the financial assets and liabilities are carried at fair value or contracted amounts that approximate fair value.
We recognize any transfers between levels as of the beginning of the reporting period, including both transfers into and out of levels. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2013 and 2012. The following table represents a reconciliation of the changes in fair value of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2013 and 2012.
 
(In Millions)
 
Derivative Assets
(Level 3)
 
Derivative Liabilities
(Level 3)
 
Three Months Ended
March 31,
 
Three Months Ended
March 31,
 
2013
 
2012
 
2013
 
2012
Beginning balance - January 1
$
62.4

 
$
157.9

 
$
(11.3
)
 
$
(19.5
)
Total gains

 

 
 
 
 
Included in earnings
28.0

 
43.3

 
(6.8
)
 
(1.1
)
Included in other comprehensive income

 

 

 

Settlements
(37.1
)
 
(132.0
)
 
11.3

 
19.5

Transfers into Level 3

 

 

 

Transfers out of Level 3

 

 

 

Ending balance - March 31
$
53.3

 
$
69.2

 
$
(6.8
)
 
$
(1.1
)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) on assets (liabilities) still held at the reporting date
$
28.0

 
$
43.3

 
$
(6.8
)
 
$
(1.1
)

Gains and losses included in earnings are reported in Product revenues in the Statements of Unaudited Condensed Consolidated Operations for the three months ended March 31, 2013 and 2012.
The carrying amount for certain financial instruments (e.g. Accounts receivable, net, Accounts payable and Accrued expenses) approximate fair value and, therefore, have been excluded from the table below. A summary of the carrying amount and fair value of other financial instruments at March 31, 2013 and December 31, 2012 were as follows:
 
 
 
(In Millions)
 
 
 
March 31, 2013
 
December 31, 2012
 
Classification
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Other receivables:
 
 
 
 
 
 
 
 
 
Customer supplemental payments
Level 2
 
$
16.7

 
$
16.1

 
$
22.3

 
$
21.3

ArcelorMittal USA—Receivable
Level 2
 
17.4

 
19.1

 
19.3

 
21.3

Other
Level 2
 
10.5

 
10.5

 
10.9

 
10.9

Total receivables
 
 
$
44.6

 
$
45.7

 
$
52.5

 
$
53.5

Long-term debt:
 
 
 
 
 
 
 
 
 
Term loan—$1.25 billion
Level 2
 
$

 
$

 
$
753.0

 
$
753.0

Senior notes—$700 million
Level 2
 
699.4

 
751.4

 
699.4

 
759.4

Senior notes—$1.3 billion
Level 2
 
1,289.4

 
1,513.2

 
1,289.4

 
1,524.7

Senior notes—$400 million
Level 2
 
398.3

 
458.8

 
398.2

 
464.3

Senior notes—$500 million
Level 2
 
495.9

 
527.7

 
495.7

 
528.4

Revolving loan
Level 2
 
550.0

 
550.0

 
325.0

 
325.0

Total long-term debt
 
 
$
3,433.0

 
$
3,801.1

 
$
3,960.7

 
$
4,354.8


The fair value of the receivables and debt are based on the fair market yield curves for the remainder of the term expected to be outstanding.
The terms of one of our U.S. Iron Ore pellet supply agreements require supplemental payments to be paid by the customer during the period 2009 through 2012, with the option to defer a portion of the 2009 monthly amount up to $22.3 million in exchange for interest payments until the deferred amount is repaid in 2013. Interest is payable by the customer quarterly and began in September 2009 at the higher of 9 percent or the prime rate plus 350 basis points. As of March 31, 2013 and December 31, 2012, the receivable of $16.7 million and $22.3 million, respectively, classified as current and was recorded in Other current assets in the Statements of Unaudited Condensed Consolidated Financial Position as all supplemental payments to be paid by the customer are due by the end of 2013. The fair value of the receivable of $16.1 million and $21.3 million at March 31, 2013 and December 31, 2012, respectively, is based on a discount rate of 2.14 percent and 2.81 percent, respectively, which represents the estimated credit-adjusted risk-free interest rate for the period the receivable is outstanding.
In 2002, we entered into an agreement with Ispat that restructured the ownership of the Empire mine and increased our ownership from 46.7 percent to 79.0 percent in exchange for the assumption of all mine liabilities. Under the terms of the agreement, we indemnified Ispat from obligations of Empire in exchange for certain future payments to Empire and to us by Ispat of $120.0 million, recorded at a present value of $17.4 million and $19.3 million at March 31, 2013 and December 31, 2012, respectively, of which $10.0 million was recorded in Other current assets for each respective period. The fair value of the receivable of $19.1 million and $21.3 million at March 31, 2013 and December 31, 2012, respectively, is based on a discount rate of 2.24 percent and 2.85 percent, respectively, which represents the estimated credit-adjusted risk-free interest rate for the period the receivable is outstanding.
The fair value of long-term debt was determined using quoted market prices or discounted cash flows based upon current borrowing rates. The term loan and revolving loan are variable rate interest and approximate fair value. See NOTE 9 - DEBT AND CREDIT FACILITIES for further information.
Items Measured at Fair Value on a Non-Recurring Basis
The following table presents information about the impairment charges on both financial and nonfinancial assets that were measured on a fair value basis for the year ended December 31, 2012. The table also indicates the fair value hierarchy of the valuation techniques used to determine such fair value. We had no financial assets and liabilities measured at fair value on a non-recurring basis at March 31, 2013.
 
(In Millions)
 
December 31, 2012
Description
Quoted Prices in Active
Markets for Identical Assets/Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Investment in ventures impairment -
     Amapá
$

 
$

 
$
72.5

 
$
72.5


Financial Assets
On December 27, 2012, the board of directors approved the sale of our 30 percent investment in Amapá, which is recorded as an equity method investment in the Statements of Unaudited Condensed Consolidated Operations. The carrying value of the investment was reduced to fair value of $72.5 million as of December 31, 2012, resulting in an impairment charge of $365.4 million, which was recorded in the fourth quarter of 2012. We believe the sum of the sale proceeds approximates fair value. The fair value of the proceeds (and therefore the portion of the equity method investment measured at fair value) was determined using a probability-weighted cash flow approach.
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES
NOTE 9 - DEBT AND CREDIT FACILITIES
The following represents a summary of our long-term debt as of March 31, 2013 and December 31, 2012:
($ in Millions)
 
March 31, 2013
 
Debt Instrument
Type
 
Annual Effective Interest Rate
 
Final Maturity
 
Total Face Amount
 
Total Debt
 
$700 Million 4.875% 2021 Senior Notes
Fixed
 
4.89%
 
2021
 
$
700.0

 
$
699.4

(2)
$1.3 Billion Senior Notes:
 
 
 
 
 
 
 
 
 
 
$500 Million 4.80% 2020 Senior Notes
Fixed
 
4.83%
 
2020
 
500.0

 
499.2

(3)
$800 Million 6.25% 2040 Senior Notes
Fixed
 
6.34%
 
2040
 
800.0

 
790.2

(4)
$400 Million 5.90% 2020 Senior Notes
Fixed
 
5.98%
 
2020
 
400.0

 
398.3

(5)
$500 Million 3.95% 2018 Senior Notes
Fixed
 
4.14%
 
2018
 
500.0

 
495.9

(6)
$1.75 Billion Credit Facility:
 
 
 
 
 
 
 
 
 
 
Revolving Loan
Variable
 
2.65%
 
2017
 
1,750.0

 
550.0

(7)
Total debt
 
 
 
 
 
 
$
4,650.0

 
$
3,433.0

 
Less current portion
 
 
 
 
 
 
 
 

 
Long-term debt
 
 
 
 
 
 
 
 
$
3,433.0

 
($ in Millions)
 
December 31, 2012
 
Debt Instrument
Type
 
Annual Effective Interest Rate
 
Final Maturity
 
Total Face Amount
 
Total Debt
 
$1.25 Billion Term Loan
Variable
 
1.83%
 
2016
 
$
847.1

(1)
$
847.1

(1)
$700 Million 4.875% 2021 Senior Notes
Fixed
 
4.88%
 
2021
 
700.0

 
699.4

(2)
$1.3 Billion Senior Notes:
 
 
 
 
 
 
 
 
 
 
$500 Million 4.80% 2020 Senior Notes
Fixed
 
4.80%
 
2020
 
500.0

 
499.2

(3)
$800 Million 6.25% 2040 Senior Notes
Fixed
 
6.25%
 
2040
 
800.0

 
790.2

(4)
$400 Million 5.90% 2020 Senior Notes
Fixed
 
5.90%
 
2020
 
400.0

 
398.2

(5)
$500 Million 3.95% 2018 Senior Notes
Fixed
 
4.14%
 
2018
 
500.0

 
495.7

(6)
$1.75 Billion Credit Facility:
 
 
 
 
 
 
 
 
 
 
Revolving Loan
Variable
 
2.02%
 
2017
 
1,750.0

 
325.0

(7)
Total debt
 
 
 
 
 
 
$
5,497.1

 
$
4,054.8

 
Less current portion
 
 
 
 
 
 
 
 
94.1

 
Long-term debt
 
 
 
 
 
 
 
 
$
3,960.7

 
                                         
(1)
As of March 31, 2013, the term loan was repaid in full. During the first quarter of 2013, repayments totaling $847.1 million were made. As of December 31, 2012, $402.8 million had been paid down on the original $1.25 billion term loan and, of the remaining term loan $94.1 million, was classified as Current portion of debt. The current classification was based upon the principal payment terms of the arrangement requiring principal payments on each three-month anniversary following the funding of the term loan.
(2)
As of March 31, 2013 and December 31, 2012, the $700 million 4.875 percent senior notes were recorded at a par value of $700 million less unamortized discounts of $0.6 million, based on an imputed interest rate of 4.89 percent.
(3)
As of March 31, 2013 and December 31, 2012, the $500 million 4.80 percent senior notes were recorded at a par value of $500 million less unamortized discounts of $0.8 million, based on an imputed interest rate of 4.83 percent.
(4)
As of March 31, 2013 and December 31, 2012, the $800 million 6.25 percent senior notes were recorded at par value of $800 million less unamortized discounts of $9.8 million, based on an imputed interest rate of 6.34 percent.
(5)
As of March 31, 2013 and December 31, 2012, the $400 million 5.90 percent senior notes were recorded at a par value of $400 million less unamortized discounts of $1.7 million and $1.8 million, respectively, based on an imputed interest rate of 5.98 percent.
(6)
As of March 31, 2013 and December 31, 2012, the $500 million 3.95 percent senior notes were recorded at a par value of $500 million less unamortized discounts of $4.1 million and $4.3 million, respectively, based on an imputed interest rate of 4.14 percent.
(7)
As of March 31, 2013 and December 31, 2012, $550.0 million and $325.0 million revolving loans were drawn under the credit facility, respectively, and the principal amount of letter of credit obligations totaled $27.7 million for each period, thereby reducing available borrowing capacity to $1.2 billion and $1.4 billion for each period, respectively.
Credit Facility and Term Loan
On February 8, 2013, we amended the Term Loan Agreement among Cliffs Natural Resources Inc. and various lenders dated March 4, 2011, as amended, or term loan, and the Amended and Restated Multicurrency Credit Agreement among Cliffs Natural Resources Inc. and various lenders dated August 11, 2011 (as further amended by Amendment No. 1 as of October 16, 2012), or amended credit agreement, to effect the following:
Suspend the current Funded Debt to EBITDA ratio requirement for all quarterly measurement periods in 2013, after which point it will revert back to the period ending March 31, 2014 until maturity.
Require a Minimum Tangible Net Worth of approximately $4.6 billion as of each of the three-month periods ended March 31, 2013, June 30, 2013, September 30, 2013 and December 31, 2013. Minimum Tangible Net Worth, in accordance with the amended credit agreement and term loan, is defined as total equity less goodwill and intangible assets.
Maintain a Maximum Total Funded Debt to Capitalization of 52.5 percent from the amendments' effective date until the period ending December 31, 2013.
The amended agreements retain the Minimum Interest Coverage Ratio requirement of 2.5 to 1.0, as defined above.
During February 2013, we repaid the $847.1 million outstanding balance under the term loan through the use of proceeds from the 2013 public equity offerings. Additionally, as a result of the term loan repayment, the remaining deferred financing costs of $7.1 million were expensed. Upon the repayment of the term loan, the financial covenants associated with the term loan no longer are applicable.
Per the terms of the amended credit agreement, we are subject to higher borrowing costs. The applicable interest rate is determined by reference to the former Funded Debt to EBITDA ratio. Based on the amended terms, borrowing costs could increase as much as 0.5 percent relative to the outstanding borrowings, as well as 0.1 percent on unborrowed amounts. Furthermore, the amended credit agreement places certain restrictions upon our declaration and payment of dividends, our ability to consummate acquisitions and the debt levels of our subsidiaries.
As of March 31, 2013, we were in compliance with all applicable financial covenants related to the amended credit agreement.
At December 31, 2012, prior to the amendments made on February 8, 2013 that are discussed above, the terms of the term loan and amended credit agreement each contained customary covenants that require compliance with certain financial covenants based on: (1) debt to earnings ratio (Total Funded Debt to EBITDA, as those terms are defined in the amended credit agreement), as of the last day of each fiscal quarter cannot exceed (i) 3.5 to 1.0, if none of the $270.0 million private placement senior notes due 2013 remain outstanding, or otherwise (ii) the then applicable maximum multiple under the $270.0 million private placement senior notes due 2013 and (2) interest coverage ratio (Consolidated EBITDA to Interest Expense, as those terms are defined in the amended credit agreement), for the preceding four quarters must not be less than 2.5 to 1.0 on the last day of any fiscal quarter. As the $270.0 million private placement senior notes due 2013 were repaid on December 28, 2012 with proceeds from the 2012 public debt offering, the financial covenant relating to the outstanding notes no longer was applicable. As of December 31, 2012, we were in compliance with the financial covenants related to both the term loan and the amended credit agreement.
Short-Term Facilities
Asia Pacific Iron Ore maintains a bank contingent instrument and cash advance facility. The facility, which is renewable annually at the bank’s discretion, provides A$40.0 million ($41.7 million at March 31, 2013 and $41.6 million at December 31, 2012) in credit for contingent instruments, such as performance bonds, and the ability to request a cash advance facility to be provided at the discretion of the bank. As of March 31, 2013, the outstanding bank guarantees under this facility totaled A$34.0 million ($35.4 million), thereby reducing borrowing capacity to A$6.0 million ($6.3 million). As of December 31, 2012, the outstanding bank guarantees under this facility totaled A$25.0 million ($26.0 million), thereby reducing borrowing capacity to A$15.0 million ($15.6 million). We have provided a guarantee of the facility, along with certain of our Australian subsidiaries. The terms of the short-term facility contain certain customary covenants; however, there are no financial covenants.
Letters of Credit
In conjunction with our acquisition of Consolidated Thompson, we issued standby letters of credit with certain financial institutions in order to support Consolidated Thompson’s and Bloom Lake’s general business obligations. In addition, we issued standby letters of credit with certain financial institutions during the third quarter of 2011 in order to support Wabush’s obligations. As of March 31, 2013 and December 31, 2012, these letter of credit obligations totaled $95.0 million and $96.9 million, respectively. All of these standby letters of credit are in addition to the letters of credit provided for under the amended credit agreement.
Debt Maturities
The following represents a summary of our maturities of debt instruments, excluding borrowings on the amended credit agreement, based on the principal amounts outstanding at March 31, 2013:
 
(In Millions)
 
Maturities of Debt
2013 (April 1 - December 31)
$

2014

2015

2016

2017

2018 and thereafter
2,900.0

Total maturities of debt
$
2,900.0

LEASE OBLIGATIONS
LEASE OBLIGATIONS
NOTE 10 - LEASE OBLIGATIONS
We lease certain mining, production and other equipment under operating and capital leases. The leases are for varying lengths, generally at market interest rates and contain purchase and/or renewal options at the end of the terms. Our operating lease expense was $6.8 million and $6.3 million, respectively, for the three months ended March 31, 2013 and 2012.
Future minimum payments under capital leases and non-cancellable operating leases at March 31, 2013 are as follows:
 
(In Millions)
 
Capital Leases
 
Operating Leases
2013 (April 1 - December 31)
$
56.8

 
$
18.8

2014
69.5

 
19.7

2015
58.2

 
13.0

2016
42.2

 
8.1

2017
34.8

 
7.4

2018 and thereafter
91.8

 
21.5

Total minimum lease payments
$
353.3

 
$
88.5

Amounts representing interest
76.7

 
 
Present value of net minimum lease payments
$
276.6

(1)
 
                                         
(1)
The total is comprised of $53.5 million and $223.1 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at March 31, 2013.
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
NOTE 11 - ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
We had environmental and mine closure liabilities of $252.4 million and $265.1 million at March 31, 2013 and December 31, 2012, respectively. The following is a summary of the obligations as of March 31, 2013 and as of the year ended December 31, 2012:
 
(In Millions)
 
March 31, 2013
 
December 31, 2012
Environmental
$
15.4

 
$
15.7

Mine closure
 
 
 
LTVSMC
18.7

 
18.3

Operating mines:
 
 
 
U.S. Iron Ore
83.1

 
81.2

Eastern Canadian Iron Ore
73.4

 
88.9

Asia Pacific Iron Ore
22.7

 
22.4

North American Coal
39.1

 
38.6

Total mine closure
237.0

 
249.4

Total environmental and mine closure obligations
252.4

 
265.1

Less current portion
12.0

 
12.3

Long term environmental and mine closure obligations
$
240.4

 
$
252.8


Mine Closure
Our mine closure obligations are for our four consolidated U.S. operating iron ore mines, our two Eastern Canadian operating iron ore mines, our Asia Pacific operating iron ore mine, our six operating North American coal mines and a closed operation formerly known as LTVSMC.
The accrued closure obligation for our active mining operations provides for contractual and legal obligations associated with the eventual closure of the mining operations. The accretion of the liability and amortization of the related asset is recognized over the estimated mine lives for each location.
The following represents a rollforward of our asset retirement obligation liability related to our active mining locations for the three months ended March 31, 2013 and the year ended December 31, 2012:
 
(In Millions)
 
 
March 31, 2013
 
December 31, 2012
(1)
Asset retirement obligation at beginning of period
$
231.1

 
$
194.9

 
Accretion expense
4.5

 
17.6

 
Exchange rate changes

 
0.3

 
Revision in estimated cash flows
(17.2
)
 
18.2

 
Payments
(0.1
)
 
0.1

 
Asset retirement obligation at end of period
$
218.3

 
$
231.1

 

                                         
(1)
Represents a 12-month rollforward of our asset retirement obligation at December 31, 2012.
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
NOTE 12 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS
The following are the components of defined benefit pension and OPEB expense for the three months ended March 31, 2013 and 2012:
 
(In Millions)
 
Pension Benefits
 
Other Benefits
 
Three Months Ended
March 31,
 
Three Months Ended
March 31,
 
2013
 
2012
 
2013
 
2012
Service cost
$
9.9

 
$
8.0

 
$
3.1

 
$
3.6

Interest cost
11.5

 
12.0

 
4.3

 
5.2

Expected return on plan assets
(13.1
)
 
(14.8
)
 
(5.0
)
 
(4.3
)
Amortization:
 
 
 
 
 
 
 
Prior service costs
0.7

 
1.0

 
(0.9
)
 
0.7

Net actuarial loss
6.8

 
7.4

 
2.8

 
2.9

Net periodic benefit cost
$
15.8

 
$
13.6

 
$
4.3

 
$
8.1


We made pension contributions of $3.7 million and $14.4 million for the three months ended March 31, 2013 and 2012, respectively. The OPEB contributions, made annually in the first quarter, were $14.1 million and $21.9 million for the three months ended March 31, 2013 and 2012, respectively.
STOCK COMPENSATION PLANS
STOCK COMPENSATION PLANS
NOTE 13 - STOCK COMPENSATION PLANS
Employees’ Plans
On March 11, 2013, the Compensation and Organization Committee (“Committee”) of the board of directors approved a grant under our shareholder-approved 2012 Equity Plan for the 2013 to 2015 performance period. A total of 1.0 million shares were granted under the award, consisting of 0.8 million performance shares and 0.2 million restricted share units.
The 2012 Equity Plan was approved by our board of directors on March 13, 2012 and our shareholders approved it on May 8, 2012, effective as of March 13, 2012. The 2012 Equity Plan replaced the ICE Plan. The maximum number of shares that may be issued under the 2012 Equity Plan is 6.0 million. A total of 23.6 thousand shares were granted under the 2012 Equity Plan during 2012.
The ICE Plan was terminated on May 8, 2012 and no additional grants will be issued from the ICE Plan after this date. Upon termination of the ICE Plan, all awards previously granted under the ICE Plan shall continue in full force and effect in accordance with the terms of the award.
For the outstanding ICE Plan awards, each performance share, if earned, entitles the holder to receive common shares or cash within a range between a threshold and maximum number of our common shares, with the actual number of common shares earned dependent upon whether the Company achieves certain objectives and performance goals as established by the Committee. The performance share or unit grants vest over a period of three years and are intended to be paid out in common shares or cash in certain circumstances. Performance for the 2011 to 2013 performance period is measured on the basis of two factors: 1) relative TSR for the period and 2) three-year cumulative free cash flow. The relative TSR for the 2011 to 2013 performance period is measured against the constituents of the S&P Metals and Mining ETF Index on the last day of trading of the performance period. Performance for the 2012 to 2014 and for the 2013 to 2015 performance periods are measured only on the basis of relative TSR for the period and measured against the constituents of the S&P Metals and Mining ETF Index on the last day of trading of the performance period. The final payouts for the 2011 to 2013 performance period, the 2012 to 2014 performance period and the 2013 to 2015 performance period will vary from zero to 200 percent of the original grant. The restricted share units are subject to continued employment, are retention based, will vest at the end of the respective performance period, and are payable in common shares or cash in certain circumstances at a time determined by the Committee at its discretion.
Upon the occurrence of a change in control, all performance shares, restricted share units, restricted stock, performance units and retention units granted to a participant will vest and become nonforfeitable and will be paid out in cash.
Determination of Fair Value
The fair value of each grant is estimated on the date of grant using a Monte Carlo simulation to forecast relative TSR performance. A correlation matrix of historic and projected stock prices was developed for both the Company and our predetermined peer group of mining and metals companies. The fair value assumes that performance goals will be achieved.
The expected term of the grant represents the time from the grant date to the end of the service period for each of the three plan-year agreements. We estimate the volatility of our common shares and that of the peer group of mining and metals companies using daily price intervals for all companies. The risk-free interest rate is the rate at the grant date on zero-coupon government bonds, with a term commensurate with the remaining life of the performance plans.
The following assumptions were utilized to estimate the fair value for the first quarter of 2013 performance share grants:
Grant Date
Grant Date Market Price
 
Average Expected Term (Years)
 
Expected Volatility
 
Risk-Free Interest Rate
 
Dividend Yield
 
Fair Value
 
Fair Value (Percent of Grant Date Market Price)
March 11, 2013
$
23.83

 
2.81
 
52.9%
 
0.40%
 
2.52%
 
$
17.01

 
71.38%

The fair value of the restricted share units is determined based on the closing price of the Company’s common shares on the grant date. The restricted share units granted under either the ICE Plan or 2012 Equity Plan vest over a period of three years.
INCOME TAXES
Income Taxes
NOTE 14 - INCOME TAXES
Our 2013 estimated annual effective tax rate before discrete items is approximately 1.4 percent. This estimated annual effective tax rate differs from the U.S. statutory rate of 35 percent primarily due to deductions for percentage depletion in excess of cost depletion related to U.S. operations, income not subject to tax and foreign taxes and benefits derived from operations outside the U.S., which are taxed at rates lower than the U.S. statutory rate of 35 percent. There were discrete items booked in the first quarter of approximately $7.7 million primarily related to adjustments to deferred tax balances, including the reversal of a previously recorded valuation allowance for which it was determined the benefit of the associated deferred tax asset is realizable.
CAPITAL STOCK
CAPITAL STOCK
NOTE 15 - CAPITAL STOCK
Depositary Shares
On February 21, 2013, we issued 29.25 million depositary shares, comprised of the 27.0 million depositary share offering and the exercise of an underwriters' over-allotment option to purchase an additional 2.25 million depositary shares. Each depositary share represents a 1/40th interest in a share of our 7.00 percent Series A Mandatory Convertible Preferred Stock, Class A, without par value, or Preferred Share, at a price of $25 per depositary share for total net proceeds of approximately $709.4 million, after underwriter fees and discounts. Each Preferred Share has an initial liquidation preference of $1,000 per share (equivalent to a $25 liquidation preference per depositary share). When and if declared by our board of directors, we will pay cumulative dividends on each Preferred Share at an annual rate of 7.00 percent on the liquidation preference. We will pay declared dividends in cash on February 1, May 1, August 1 and November 1 of each year, commencing on May 1, 2013 and to, and including February 1, 2016. Holders of the depositary shares are entitled to a proportional fractional interest in the rights and preferences of the Preferred Shares, including conversion, dividend, liquidation and voting rights, subject to the provisions of the deposit agreement.
The Preferred Shares may be converted, at the option of the holder, at the minimum conversion rate of 28.1480 of our common shares (equivalent to 0.7037 of our common shares per depositary share) at any time prior to February 1, 2016 or other than during a fundamental change conversion period, subject to anti-dilution adjustments. If not converted prior to that time, each Preferred Share will convert automatically on February 1, 2016 into between 28.1480 and 34.4840 common shares, par value $0.125 per share, subject to anti-dilution adjustments. The number of common shares issuable on conversion will be determined based on the average VWAP per share of our common shares during the 20 trading day period beginning on, and including, the 23rd scheduled trading day prior to February 1, 2016, subject to customary anti-dilution adjustments. Upon conversion, a minimum of 20.6 million common shares and a maximum of 25.2 million common shares will be issued.
If certain fundamental changes involving the Company occur, holders of the Preferred Shares may convert their shares into a number of common shares at the conversion rate that will be adjusted under certain circumstances, and such holders also will be entitled to a fundamental change dividend make-whole amount. The Preferred Shares are not redeemable.
Common Stock Public Offering
On February 21, 2013, we issued 10.35 million common shares, comprised of the 9.0 million common share offering and the exercise of an underwriters' over-allotment option to purchase an additional 1.35 million common shares. The offering resulted in an increase in the number of our common shares issued and outstanding as of March 31, 2013. We received net proceeds of approximately $285.6 million at a closing price of $29.00 per common share.
Dividends
On March 20, 2013, our board of directors declared the quarterly cash dividend of $13.6111 per Preferred Share, which is equivalent to approximately $0.34 per depositary share. The cash dividend will be payable on May 1, 2013 to our shareholders of record as of the close of business on April 15, 2013.
A $0.28 per common share cash dividend was paid on March 1, 2012 to our shareholders of record as of the close of business on February 15, 2012. On March 13, 2012, our board of directors increased the quarterly common share dividend by 123 percent to $0.625 per share. The increased cash dividend of $0.625 per share was paid on June 1, 2012, August 31, 2012 and December 3, 2012 to our common shareholders of record as of the close of business on April 27, 2012, August 15, 2012 and November 23, 2012, respectively. On February 11, 2013, our board of directors approved a reduction to our quarterly cash dividend rate by 76 percent to $0.15 per share. Our board of directors took this step in order to improve the future cash flows available for investment in the Phase II expansion at Bloom Lake, as well as to preserve our investment-grade credit ratings. The decreased dividend of $0.15 per share was paid on March 1, 2013 to our common shareholders of record as of the close of business on February 22, 2013.
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
NOTE 16 - SHAREHOLDERS' EQUITY
The following table reflects the changes in shareholders' equity attributable to both Cliffs and the noncontrolling interests primarily related to Bloom Lake, Tilden and Empire of which Cliffs owns 75 percent, 85 percent and 79 percent, respectively, for the three months ended March 31, 2013 and March 31, 2012:
 
(In Millions)
 
Cliffs
Shareholders’
Equity
 
Noncontrolling
Interest
 
Total Equity
December 31, 2012
$
4,632.7

 
$
1,128.2

 
$
5,760.9

Comprehensive income
 
 
 
 
 
Net income
107.0

 
13.8

 
120.8

Other comprehensive income
4.2

 
1.2

 
5.4

Total comprehensive income
111.2

 
15.0

 
126.2

Issuance of common shares
263.7

 

 
263.7

Issuance of Preferred Shares
731.3

 

 
731.3

Stock and other incentive plans
(1.5
)
 

 
(1.5
)
Common and Preferred Shares dividends
(32.8
)
 

 
(32.8
)
Capital contribution by noncontrolling
    interest to subsidiary

 
11.2

 
11.2

March 31, 2013
$
5,704.6

 
$
1,154.4

 
$
6,859.0

 
(In Millions)
 
Cliffs
Shareholders’
Equity
 
Noncontrolling
Interest
 
Total Equity
December 31, 2011
$
5,785.0

 
$
1,254.7

 
$
7,039.7

Comprehensive income
 
 
 
 
 
Net income
375.8

 
15.6

 
391.4

Other comprehensive income
21.7

 
1.5

 
23.2

Total comprehensive income
397.5

 
17.1

 
414.6

Stock and other incentive plans
(2.8
)
 

 
(2.8
)
Common shares dividends
(39.7
)
 

 
(39.7
)
Undistributed gains to noncontrolling interest

 
7.8

 
7.8

Capital contribution by noncontrolling interest
    to subsidiary

 
22.3

 
22.3

Acquisition of controlling interest

 
(8.0
)
 
(8.0
)
March 31, 2012
$
6,140.0

 
$
1,293.9

 
$
7,433.9

The following table reflects the changes in Accumulated other comprehensive income (loss) related to Cliffs shareholders’ equity for March 31, 2013 and March 31, 2012:
 
(In Millions)
 
Postretirement Benefit Liability, net of tax
 
Unrealized Net Gain on Securities, net of tax
 
Unrealized Net Gain on Foreign Currency Translation
 
Net Unrealized Gain (Loss) on Derivative Financial Instruments, net of tax
 
Accumulated Other Comprehensive Income (Loss)
Balance December 31, 2012
$
(382.7
)
 
$
2.1

 
$
316.3

 
$
8.7

 
$
(55.6
)
Other comprehensive income (loss) before reclassifications
(1.1
)
 
2.5

 
3.3

 
(5.0
)
 
(0.3
)
Amounts reclassified from accumulated other comprehensive income (loss)
6.4

 
0.1

 

 
(2.0
)
 
4.5

Balance March 31, 2013
$
(377.4
)
 
$
4.7

 
$
319.6

 
$
1.7

 
$
(51.4
)
 
(In Millions)
 
Postretirement Benefit Liability, net of tax
 
Unrealized Net Gain on Securities, net of tax
 
Unrealized Net Gain on Foreign Currency Translation
 
Net Unrealized Gain on Derivative Financial Instruments, net of tax
 
Accumulated Other Comprehensive Income (Loss)
Balance December 31, 2011
$
(408.9
)
 
$
2.6

 
$
312.5

 
$
1.2

 
$
(92.6
)
Change during 2012
4.7

 
2.3

 
10.9

 
3.8

 
21.7

Balance March 31, 2012
$
(404.2
)
 
$
4.9

 
$
323.4

 
$
5.0

 
$
(70.9
)

The following table reflects the details about Accumulated other comprehensive income (loss) components related to Cliffs shareholders’ equity for March 31, 2013:
Details about Accumulated Other Comprehensive Income (Loss) Components
 
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
 
Affected Line Item in the Statement of Unaudited Condensed Consolidated Operations
Amortization of Pension and Postretirement Benefit Liability:
 
 
 
 
Prior-service costs
 
$
(0.2
)
 
(1)
Net actuarial loss
 
9.6

 
(1)
 
 
9.4

 
Total before taxes
 
 
(3.0
)
 
Income tax benefit
 
 
$
6.4

 
Net of taxes
 
 
 
 
 
Unrealized gain (loss) on securities:
 
 
 
 
Impairment
 
$
0.1

 
Other non-operating income
 
 
0.1

 
Total before taxes
 
 

 
Income tax benefit
 
 
$
0.1

 
Net of taxes
 
 
 
 
 
Unrealized gain (loss) on derivative financial instruments:
 
 
 
 
Australian dollar foreign exchange contracts
 
$
(2.6
)
 
Product revenues
Canadian dollar foreign exchange contracts
 
(0.3
)
 
Cost of goods sold and operating expenses
 
 
(2.9
)
 
Total before taxes
 
 
0.9

 
Income tax benefit
 
 
$
(2.0
)
 
Net of taxes
 
 
 
 
 
Total Reclassifications for the Period
 
$
4.5

 
 

                                         
(1)
These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See NOTE 12 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS for further information.
RELATED PARTIES
RELATED PARTIES
NOTE 17 - RELATED PARTIES
Three of our five U.S. iron ore mines and one of our two Eastern Canadian iron ore mines are owned with various joint venture partners that are integrated steel producers or their subsidiaries. We are the manager of each of the mines we co-own and rely on our joint venture partners to make their required capital contributions and to pay for their share of the iron ore pellets and concentrate that we produce. The joint venture partners are also our customers. The following is a summary of the mine ownership of these iron ore mines at March 31, 2013:
Mine
 
Cliffs Natural Resources
 
ArcelorMittal
 
U.S. Steel Canada
 
WISCO
Empire
 
79.0
 
21.0
 
 
Tilden
 
85.0
 
 
15.0
 
Hibbing
 
23.0
 
62.3
 
14.7
 
Bloom Lake
 
75.0
 
 
 
25.0

ArcelorMittal has a unilateral right to put its interest in the Empire mine to us, but has not exercised this right to date.
Product revenues from related parties were as follows:
 
(In Millions)
 
Three Months Ended
March 31,
 
2013
 
2012
Product revenues from related parties
$
288.6

 
$
331.9

Total product revenues
1,082.6

 
1,148.6

Related party product revenue as a percent of total product revenue
26.7
%
 
28.9
%

Amounts due from related parties recorded in Accounts receivable, net and Derivative assets, including customer supply agreements and provisional pricing arrangements, were $119.6 million and $149.8 million at March 31, 2013 and December 31, 2012, respectively. Amounts due to related parties recorded in Other current liabilities, including provisional pricing arrangements and liabilities to minority parties were $20.2 million at December 31, 2012. No amounts were due to related parties at March 31, 2013.
EARNINGS PER SHARE
EARNINGS PER SHARE
NOTE 18 - EARNINGS PER SHARE
The following table summarizes the computation of basic and diluted earnings per share:
 
(In Millions, Except Per Share Amounts)
 
Three Months Ended
March 31,
 
2013
 
2012
Net Income from Continuing Operations attributable to
Cliffs shareholders
$
107.0

 
$
370.3

Income from Discontinued Operations, net of tax

 
5.5

NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$
107.0

 
$
375.8

PREFERRED STOCK DIVIDENDS
(9.9
)
 

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS
$
97.1

 
$
375.8

Weighted Average Number of Shares:
 
 
 
Basic
147.8

 
142.2

Depositary Shares

 

Employee Stock Plans
0.3

 
0.5

Diluted
148.1

 
142.7

Earnings per Common Share Attributable to Cliffs
Shareholders - Basic:
 
 
 
Continuing operations
$
0.66

 
$
2.60

Discontinued operations

 
0.04

 
$
0.66

 
$
2.64

Earnings per Common Share Attributable to Cliffs
Shareholders - Diluted:
 
 
 
Continuing operations
$
0.66

 
$
2.59

Discontinued operations

 
0.04

 
$
0.66

 
$
2.63


The diluted earnings per share calculation excludes depositary shares that were anti-dilutive totaling 12.9 million for the three months ended March 31, 2013.
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
NOTE 19 - COMMITMENTS AND CONTINGENCIES
Purchase Commitments
In 2011, we began to incur capital commitments related to the expansion of the Bloom Lake mine. The Phase II expansion project includes expansion of the mine and the mine’s processing capabilities. The capital investment also includes common infrastructure necessary to sustain current operations and support the expansion. As previously announced, at the Bloom Lake mine we are delaying certain components of the Phase II expansion, including the completion of the concentrator and load-out facility. Common infrastructure projects necessary to sustain current operations and support the expansion are continuing as planned. We expect to complete Phase II construction in 2014, which will depend on seaborne iron ore pricing, customer demand and other market conditions. Through March 31, 2013, approximately $1.2 billion of the total capital investment required for the Bloom Lake expansion project had been committed, of which a total of approximately $889 million had been expended. Of the remaining committed capital, expenditures of approximately $311 million are expected to be made during the remainder of 2013.
Contingencies
Litigation
We are currently a party to various claims and legal proceedings incidental to our operations. If management believes that a loss arising from these matters is probable and can reasonably be estimated, we record the amount of the loss, or the minimum estimated liability when the loss is estimated using a range, and no point within the range is more probable than another. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary. Based on currently available information, management believes that the ultimate outcome of these matters, individually and in the aggregate, will not have a material effect on our financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties, and unfavorable rulings could occur. An unfavorable ruling could include monetary damages, additional funding requirements or an injunction. If an unfavorable ruling were to occur, there exists the possibility of a material impact on the financial position and results of operations of the period in which the ruling occurs, or future periods. However, we believe that any pending litigation will not result in a material liability in relation to our unaudited condensed consolidated financial statements.
CASH FLOW INFORMATION
Cash Flow Information
NOTE 20 - CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures for the three months ended March 31, 2013 and 2012 is as follows:
 
(In Millions)
 
Three Months Ended March 31,
 
2013
 
2012
Capital additions
$
195.7

 
$
353.4

Cash paid for capital expenditures
230.4

 
241.1

Difference
$
(34.7
)
 
$
112.3

Non-cash accruals
$
(34.7
)
 
$
59.5

Capital leases

 
52.8

Total
$
(34.7
)
 
$
112.3


Non-Cash Financing Activities - Declared Dividends
On March 20, 2013, our board of directors declared the quarterly cash dividend of $13.6111 per Preferred Share, which is equivalent to approximately $0.34 per depositary share. The cash dividend of $9.9 million will be payable on May 1, 2013 to our shareholders of record as of the close of business on April 15, 2013.
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
NOTE 21 - SUBSEQUENT EVENTS
We have evaluated subsequent events through the date of financial statement issuance.
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Mar. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Basis Of Consolidation
Equity Method Investments
Discontinued Operations
Other Intangible Assets and Liabilities
Earnings Per Share
Depositary Share Interest in a Share of 7% Series A Mandatory Convertible Preferred Stock, Class A
0.025 
Trading Day Window Determining Number of Common Shares Issuable on Conversion
20 
Recent Accounting Pronouncements
Basis of Consolidation
The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly owned and majority-owned subsidiaries, including the following operations:
Name
 
Location
 
Ownership Interest
 
Operation
Northshore
 
Minnesota
 
100.0%
 
Iron Ore
United Taconite
 
Minnesota
 
100.0%
 
Iron Ore
Wabush
 
Newfoundland and Labrador/Quebec, Canada
 
100.0%
 
Iron Ore
Bloom Lake
 
Quebec, Canada
 
75.0%
 
Iron Ore
Tilden
 
Michigan
 
85.0%
 
Iron Ore
Empire
 
Michigan
 
79.0%
 
Iron Ore
Koolyanobbing
 
Western Australia
 
100.0%
 
Iron Ore
Pinnacle
 
West Virginia
 
100.0%
 
Coal
Oak Grove
 
Alabama
 
100.0%
 
Coal
CLCC
 
West Virginia
 
100.0%
 
Coal

Intercompany transactions and balances are eliminated upon consolidation.
Also included in our consolidated results are Cliffs Chromite Ontario Inc. and Cliffs Chromite Far North Inc. Cliffs Chromite Ontario, Inc. holds a 100 percent interest in each of the Black Label and Black Thor chromite deposits and, together with Cliffs Chromite Far North Inc., a 70 percent interest in the Big Daddy chromite deposit, all located in northern Ontario, Canada.
Equity Method Investments
Investments in unconsolidated ventures that we have the ability to exercise significant influence over, but not control, are accounted for under the equity method. The following table presents the detail of our investments in unconsolidated ventures and where those investments are classified in the Statements of Unaudited Condensed Consolidated Financial Position as of March 31, 2013 and December 31, 2012. Parentheses indicate a net liability.
 
 
 
 
 
 
 
 
(In Millions)
Investment
 
Classification
 
Accounting
Method
 
Interest
Percentage
 
March 31, 2013
 
December 31, 2012
Amapá
 
Investments in ventures
 
Equity Method
 
30
 
$
96.9

 
$
101.9

Cockatoo
 
Other liabilities
 
Equity Method
 
50
 
(25.4
)
 
(25.3
)
Hibbing
 
Investments in ventures (1)
 
Equity Method
 
23
 
1.4

 
(2.1
)
Other
 
Investments in ventures
 
Equity Method
 
Various
 
33.5

 
33.9

 
 
 
 
 
 
 
 
$
106.4

 
$
108.4

                                         
(1)     At December 31, 2012 the classification for Hibbing was Other liabilities.
Amapá
On December 27, 2012, our board of directors authorized the sale of our 30 percent interest in Amapá. Together with Anglo American plc., we will be selling our respective interest in a 100 percent sale transaction to a single entity. On March 28, 2013, an unknown event caused the Santana port shiploader to collapse into the Amazon river, preventing further ship loading by the mine operator, Anglo American. The investigation into the root cause of the collapse is ongoing as Anglo American develops a business continuation plan. The previously announced sale transaction remains in place, but without a projected close date until the port situation is clarified.
Cockatoo Island
In August 2011, we entered into a term sheet with our joint venture partner, HWE Cockatoo Pty Ltd., to sell our beneficial interest in the mining tenements and certain infrastructure of Cockatoo Island to Pluton Resources. On July 31, 2012, the parties entered into a definitive asset sale agreement, which was amended on August 31, 2012. On September 7, 2012, the closing date, Pluton Resources paid as consideration under the asset sale agreement, a nominal sum of AUD $4.00 and assumed ownership of the assets and responsibility for the environmental rehabilitation obligations and other assumed liabilities not inherently attached to the tenements acquired. With respect to those rehabilitation obligations and assumed liabilities that are inherently attached to the tenements, those obligations and liabilities will automatically transfer to, and be assumed by, Pluton Resources upon registration of each of the tenements in Pluton Resources' name. Registration of the tenements in Pluton Resources' name cannot occur until the requisite bonds and stamped transfer forms are lodged by Pluton Resources with the Department of Mining and Petroleum. This process is expected to be completed during the second quarter of 2013. As of March 31, 2013, our portion of the current estimated cost of the rehabilitation is approximately $24 million and will be extinguished upon registration of the tenements in Pluton Resources' name. Cliffs and HWE Cockatoo Pty Ltd. completed the current stage of mining, Stage 3, at Cockatoo Island on September 30, 2012.
Discontinued Operations
On July 10, 2012, we entered into a definitive share and asset sale agreement to sell our 45 percent economic interest in the Sonoma joint venture coal mine located in Queensland, Australia. Upon completion of the transaction on November 12, 2012, we collected approximately AUD $141.0 million in net cash proceeds. The assets sold included our interests in the Sonoma mine along with our ownership of the affiliated washplant and are reflected as Assets held for sale and Liabilities held for sale in the Statements of Unaudited Condensed Consolidated Financial Position and reflected the results of operations as discontinued operations in the Statements of Unaudited Condensed Consolidated Operations for periods presented prior to completion of the sale. The Sonoma operations previously were included in Other within our reportable segments.
Other Intangible Assets and Liabilities
Other intangible assets are subject to periodic amortization on a straight-line basis over their estimated useful lives or on a units of production basis as follows:
Intangible Assets
 
Basis
 
Useful Life (years)
Permits - Asia Pacific Iron Ore
 
Units of production
 
Life of mine
Permits - All Other
 
Straight line
 
15 - 40
Utility contracts
 
Straight line
 
5
Leases - North American Coal
 
Units of production
 
Life of mine
Leases - All Other
 
Straight line
 
4.5 - 17.5
Earnings Per Share
We present both basic and diluted earnings per share amounts. Basic earnings per share amounts are calculated by dividing Net Income Attributable to Cliffs Shareholders less any paid or declared but unpaid dividends on our depositary shares by the weighted average number of common shares outstanding during the period presented. Diluted earnings per share amounts are calculated by dividing Net Income Attributable to Cliffs Shareholders by the weighted average number of common shares, common share equivalents under stock plans using the treasury stock method and the number of common shares that would be issued under an assumed conversion of our outstanding depositary shares, each representing a 1/40th interest in a share of our Series A Mandatory Convertible Preferred Stock, Class A, under the if-converted method. Our outstanding depositary shares are convertible into common shares based on the volume weighted average of closing prices of our common stock over the 20 consecutive trading day period ending on the third day immediately preceding the end of the reporting period. Common share equivalents are excluded from EPS computations in the periods in which they have an anti-dilutive effect. See NOTE 18 - EARNINGS PER SHARE for further information.
Recent Accounting Pronouncements
In February 2013, the FASB amended the guidance on the presentation of comprehensive income in order to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendment does not change the current requirements for reporting net income or other comprehensive income in financial statements. Rather, it requires the entity to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The new guidance is effective prospectively for reporting periods beginning after December 15, 2012. We adopted the provisions of guidance required for the period beginning January 1, 2013. Refer to NOTE 16 - SHAREHOLDERS' EQUITY for further information.
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly owned and majority-owned subsidiaries, including the following operations:
Name
 
Location
 
Ownership Interest
 
Operation
Northshore
 
Minnesota
 
100.0%
 
Iron Ore
United Taconite
 
Minnesota
 
100.0%
 
Iron Ore
Wabush
 
Newfoundland and Labrador/Quebec, Canada
 
100.0%
 
Iron Ore
Bloom Lake
 
Quebec, Canada
 
75.0%
 
Iron Ore
Tilden
 
Michigan
 
85.0%
 
Iron Ore
Empire
 
Michigan
 
79.0%
 
Iron Ore
Koolyanobbing
 
Western Australia
 
100.0%
 
Iron Ore
Pinnacle
 
West Virginia
 
100.0%
 
Coal
Oak Grove
 
Alabama
 
100.0%
 
Coal
CLCC
 
West Virginia
 
100.0%
 
Coal
The following table presents the detail of our investments in unconsolidated ventures and where those investments are classified in the Statements of Unaudited Condensed Consolidated Financial Position as of March 31, 2013 and December 31, 2012. Parentheses indicate a net liability.
 
 
 
 
 
 
 
 
(In Millions)
Investment
 
Classification
 
Accounting
Method
 
Interest
Percentage
 
March 31, 2013
 
December 31, 2012
Amapá
 
Investments in ventures
 
Equity Method
 
30
 
$
96.9

 
$
101.9

Cockatoo
 
Other liabilities
 
Equity Method
 
50
 
(25.4
)
 
(25.3
)
Hibbing
 
Investments in ventures (1)
 
Equity Method
 
23
 
1.4

 
(2.1
)
Other
 
Investments in ventures
 
Equity Method
 
Various
 
33.5

 
33.9

 
 
 
 
 
 
 
 
$
106.4

 
$
108.4

                                         
(1)     At December 31, 2012 the classification for Hibbing was Other liabilities.
Other intangible assets are subject to periodic amortization on a straight-line basis over their estimated useful lives or on a units of production basis as follows:
Intangible Assets
 
Basis
 
Useful Life (years)
Permits - Asia Pacific Iron Ore
 
Units of production
 
Life of mine
Permits - All Other
 
Straight line
 
15 - 40
Utility contracts
 
Straight line
 
5
Leases - North American Coal
 
Units of production
 
Life of mine
Leases - All Other
 
Straight line
 
4.5 - 17.5
SEGMENT REPORTING (Tables)
The following table presents a summary of our reportable segments for the three months ended March 31, 2013 and 2012, including a reconciliation of segment sales margin to Income from Continuing Operations Before Income Taxes and Equity Loss from Ventures:
 
(In Millions)
 
Three Months Ended
March 31,
 
2013
 
2012
Revenues from product sales and services:
 
 
 
 
 
 
 
U.S. Iron Ore
$
410.1

 
36
%
 
$
441.7

 
36
%
Eastern Canadian Iron Ore
245.3

 
22
%
 
220.7

 
18
%
Asia Pacific Iron Ore
270.8

 
24
%
 
359.8

 
30
%
North American Coal
214.3

 
18
%
 
189.9

 
16
%
Other

 
%
 
0.3

 
%
Total revenues from product sales and services
$
1,140.5

 
100
%
 
$
1,212.4

 
100
%
 
 
 
 
 
 
 
 
Sales margin:
 
 
 
 
 
 
 
U.S. Iron Ore
$
157.3

 
 
 
$
166.9

 
 
Eastern Canadian Iron Ore
19.4

 
 
 
(14.3
)
 
 
Asia Pacific Iron Ore
61.3

 
 
 
125.0

 
 
North American Coal
1.8

 
 
 
14.5

 
 
Other
(1.9
)
 
 
 
(0.3
)
 
 
Sales margin
237.9

 
 
 
291.8

 
 
Other operating expense
(69.6
)
 
 
 
(68.9
)
 
 
Other income (expense)
(48.0
)
 
 
 
(43.3
)
 
 
Income from continuing operations before income taxes and equity loss from ventures
$
120.3

 
 
 
$
179.6

 
 
 
 
 
 
 
 
 
 
Depreciation, depletion and amortization:
 
 
 
 
 
 
 
U.S. Iron Ore
$
26.6

 
 
 
$
23.2

 
 
Eastern Canadian Iron Ore
41.1

 
 
 
37.9

 
 
Asia Pacific Iron Ore
36.4

 
 
 
30.0

 
 
North American Coal
32.5

 
 
 
20.1

 
 
Other
4.0

 
 
 
6.1

 
 
Total depreciation, depletion and amortization
$
140.6

 
 
 
$
117.3

 
 
 
 
 
 
 
 
 
 
Capital additions (1):
 
 
 
 
 
 
 
U.S. Iron Ore
$
11.7

 
 
 
$
34.8

 
 
Eastern Canadian Iron Ore
167.0

 
 
 
130.6

 
 
Asia Pacific Iron Ore
4.3

 
 
 
109.3

 
 
North American Coal
11.1

 
 
 
39.1

 
 
Other
1.6

 
 
 
39.6

 
 
Total capital additions
$
195.7

 
 
 
$
353.4

 
 
                                         
(1)    Includes capital lease additions and non-cash accruals. Refer to NOTE 20 - CASH FLOW INFORMATION.
A summary of assets by segment is as follows:
 
(In Millions)
 
March 31, 2013
 
December 31, 2012
Assets:
 
 
 
U.S. Iron Ore
$
1,848.4

 
$
1,735.1

Eastern Canadian Iron Ore
7,719.7

 
7,605.1

Asia Pacific Iron Ore
1,474.4

 
1,506.3

North American Coal
1,829.7

 
1,877.8

Other
599.3

 
570.9

Total segment assets
13,471.5

 
13,295.2

Corporate
350.4

 
279.7

Total assets
$
13,821.9

 
$
13,574.9

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
The following table presents the fair value of our derivative instruments and the classification of each in the Statements of Unaudited Condensed Consolidated Financial Position as of March 31, 2013 and December 31, 2012:
 
(In Millions)
 
Derivative Assets
 
Derivative Liabilities
 
March 31, 2013
 
December 31, 2012
 
March 31, 2013
 
December 31, 2012
Derivative
Instrument
Balance Sheet Location
 
Fair
Value
 
Balance
Sheet
Location
 
Fair
Value
 
Balance Sheet
Location
 
Fair
Value
 
Balance Sheet
Location
 
Fair
Value
Derivatives designated as hedging instruments under ASC 815:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Exchange Contracts
Derivative assets
 
$
13.1

 
Derivative assets
 
$
16.2

 
Other current liabilities
 
$
8.5

 
Other current liabilities
 
$
1.9

Total derivatives designated as hedging instruments under ASC 815
 
 
$
13.1

 
 
 
$
16.2

 
 
 
$
8.5

 
 
 
$
1.9

Derivatives not designated as hedging instruments under ASC 815:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer Supply Agreements
Derivative assets
 
$
49.4

 
Derivative assets
 
$
58.9

 
 
 
$

 
 
 
$

Provisional Pricing Arrangements
Derivative assets
 
3.9

 
Derivative assets
 
3.5

 
Other current liabilities
 
6.8

 
Other current liabilities
 
11.3

Total derivatives not designated as hedging instruments under ASC 815
 
 
$
53.3

 
 
 
$
62.4

 
 
 
$
6.8

 
 
 
$
11.3

Total derivatives
 
 
$
66.4

 
 
 
$
78.6

 
 
 
$
15.3

 
 
 
$
13.2

The following summarizes the effect of our derivatives designated as hedging instruments, net of tax in Accumulated other comprehensive loss in the Statements of Unaudited Condensed Consolidated Operations for the three months ended March 31, 2013 and 2012:

(In Millions)
Derivatives in Cash Flow
Amount of Gain (Loss)
Recognized in OCI on Derivative
 
Location of Gain
Reclassified
from Accumulated OCI into Earnings
 
Amount of Gain
Reclassified
from Accumulated
OCI into Earnings
Hedging Relationships
(Effective Portion)
 
(Effective Portion)
 
(Effective Portion)
 
Three Months Ended
March 31,
 
 
 
Three Months Ended
March 31,
 
2013
 
2012
 
 
 
2013
 
2012
Australian Dollar Foreign
Exchange Contracts
(hedge designation)
$
3.2

 
$
3.0

 
Product revenues
 
$
1.8

 
$
3.1

Canadian Dollar Foreign Exchange Contracts (hedge designation)
(8.2
)
 
0.7

 
Cost of goods sold and operating expenses
 
0.2

 
0.5

Total
$
(5.0
)
 
$
3.7

 
 
 
$
2.0

 
$
3.6

The following summarizes the effect of our derivatives that are not designated as hedging instruments in the Statements of Unaudited Condensed Consolidated Operations for the three months ended March 31, 2013 and 2012:
(In Millions)
Derivatives Not Designated as Hedging Instruments
Location of Gain (Loss) Recognized in
Income on Derivative
Amount of Gain/(Loss) Recognized in Income on Derivative
 
 
Three Months Ended
March 31,
 
 
2013
 
2012
Foreign Exchange Contracts
Other income (expense)
$

 
$
0.3

Customer Supply Agreements
Product revenues
24.1

 
39.2

Provisional Pricing Arrangements
Product revenues
(2.9
)
 
3.0

Total
 
$
21.2

 
$
42.5

INVENTORIES (Tables)
Schedule Of Inventories
The following table presents the detail of our Inventories in the Statements of Unaudited Condensed Consolidated Financial Position as of March 31, 2013 and December 31, 2012:

(In Millions)

March 31, 2013
 
December 31, 2012
Segment
Finished Goods
 
Work-in Process
 
Total Inventory
 
Finished Goods
 
Work-in
Process
 
Total
Inventory
U.S. Iron Ore
$
293.9

 
$
27.2

 
$
321.1

 
$
147.2

 
$
22.9

 
$
170.1

Eastern Canadian Iron Ore
101.0

 
38.4

 
139.4

 
62.6

 
44.2

 
106.8

Asia Pacific Iron Ore
73.5

 
16.4

 
89.9

 
36.7

 
37.2

 
73.9

North American Coal
49.5

 
30.2

 
79.7

 
36.7

 
49.0

 
85.7

Total
$
517.9

 
$
112.2

 
$
630.1

 
$
283.2

 
$
153.3

 
$
436.5

PROPERTY, PLANT AND EQUIPMENT (Tables)
Value Of Each Of The Major Classes Of Consolidated Depreciable Assets
The following table indicates the value of each of the major classes of our consolidated depreciable assets as of March 31, 2013 and December 31, 2012:
 
(In Millions)
 
March 31,
2013
 
December 31, 2012
Land rights and mineral rights
$
7,922.8

 
$
7,920.8

Office and information technology
114.8

 
92.4

Buildings
190.7

 
162.0

Mining equipment
1,342.9

 
1,290.7

Processing equipment
2,081.9

 
1,937.4

Railroad equipment
242.1

 
240.8

Electric power facilities
61.4

 
58.7

Port facilities
114.7

 
114.3

Interest capitalized during construction
20.8

 
20.8

Land improvements
48.7

 
43.9

Other
53.1

 
39.0

Construction in progress
1,013.2

 
1,123.9

 
13,207.1

 
13,044.7

Allowance for depreciation and depletion
(1,970.8
)
 
(1,837.4
)
 
$
11,236.3

 
$
11,207.3

DISCONTINUED OPERATIONS (Tables)
Discontinued Operations, Statements of Consolidated Financial Position and Statements of Consolidated Operations Information
The following table presents detail of our operations related to our Sonoma operations in the Statements of Unaudited Condensed Consolidated Operations:
 
(In Millions)
 
Three Months Ended March 31,
 
2013
 
2012
REVENUES FROM PRODUCT SALES AND SERVICES
 
 
 
Product
$

 
$
52.4

 
 
 
 
INCOME FROM DISCONTINUED OPERATIONS, net of tax
$

 
$
5.5

GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES (Tables)
The following table summarizes changes in the carrying amount of goodwill allocated by operating segment for the three months ended March 31, 2013 and the year ended December 31, 2012:
 
(In Millions)
 
March 31, 2013
 
December 31, 2012
 
U.S. Iron Ore
 
Eastern Canadian Iron Ore
 
Asia Pacific
Iron Ore
 
North American Coal
 
Other
 
Total
 
U.S. Iron Ore
 
Eastern
Canadian Iron Ore
 
Asia Pacific Iron Ore
 
North American Coal
 
Other
 
Total
Beginning Balance
$
2.0

 
$

 
$
84.5

 
$

 
$
80.9

 
$
167.4

 
$
2.0

 
$
986.2

 
$
83.0

 
$

 
$
80.9

 
$
1,152.1

Arising in business combinations

 

 

 

 

 

 

 
13.8

 

 

 

 
13.8

Impairment

 

 

 

 

 

 

 
(1,000.0
)
 

 

 

 
(1,000.0
)
Impact of foreign currency translation

 

 
0.2

 

 

 
0.2

 

 

 
1.5

 

 

 
1.5

Ending Balance
$
2.0

 
$

 
$
84.7

 
$

 
$
80.9

 
$
167.6

 
$
2.0

 
$

 
$
84.5

 
$

 
$
80.9

 
$
167.4

Accumulated Goodwill Impairment Loss
$

 
$
(1,000.0
)
 
$

 
$
(27.8
)
 
$

 
$
(1,027.8
)
 
$

 
$
(1,000.0
)
 
$

 
$
(27.8
)
 
$

 
$
(1,027.8
)
Following is a summary of intangible assets and liabilities as of March 31, 2013 and December 31, 2012:
 
 
 
(In Millions)
 
 
 
March 31, 2013
 
December 31, 2012
 
Classification
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Definite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Permits
Intangible assets, net
 
$
136.2

 
$
(33.5
)
 
$
102.7

 
$
136.1

 
$
(31.7
)
 
$
104.4

Utility contracts
Intangible assets, net
 
54.7

 
(35.2
)
 
19.5

 
54.7

 
(32.4
)
 
22.3

Leases
Intangible assets, net
 
5.7

 
(3.4
)
 
2.3

 
5.7

 
(3.4
)
 
2.3

Total intangible assets
 
 
$
196.6

 
$
(72.1
)
 
$
124.5

 
$
196.5

 
$
(67.5
)
 
$
129.0

Below-market sales contracts
Other current liabilities
 
$
(46.0
)
 
$
1.9

 
$
(44.1
)
 
$
(46.0
)
 
$

 
$
(46.0
)
Below-market sales contracts
Other liabilities
 
(250.7
)
 
181.6

 
(69.1
)
 
(250.7
)
 
181.6

 
(69.1
)
Total below-market sales contracts
 
 
$
(296.7
)
 
$
183.5

 
$
(113.2
)
 
$
(296.7
)
 
$
181.6

 
$
(115.1
)
The estimated amortization expense relating to intangible assets for each of the five succeeding years is as follows:

(In Millions)

Amount
Year Ending December 31

2013 (remaining nine months)
$
14.5

2014
18.8

2015
7.8

2016
7.7

2017
7.9

2018
7.7

Total
$
64.4

The following amounts are estimated to be recognized in Product revenues for the remainder of this year and each of the three succeeding fiscal years:
 
(In Millions)
 
Amount
Year Ending December 31
 
2013 (remaining nine months)
$
44.1

2014
23.1

2015
23.0

2016
23.0

Total
$
113.2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
The following represents the assets and liabilities of the Company measured at fair value at March 31, 2013 and December 31, 2012:
 
(In Millions)
 
March 31, 2013
Description
Quoted Prices in Active
Markets for Identical Assets/Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents
$
135.0

 
$

 
$

 
$
135.0

Derivative assets

 

 
53.3

 
53.3

Marketable securities
30.0

 

 

 
30.0

Foreign exchange contracts

 
13.1

 

 
13.1

Total
$
165.0

 
$
13.1

 
$
53.3

 
$
231.4

Liabilities:

 

 

 

Derivative liabilities
$

 
$

 
$
6.8

 
$
6.8

Foreign exchange contracts

 
8.5

 

 
8.5

Total
$

 
$
8.5

 
$
6.8

 
$
15.3

 
(In Millions)
 
December 31, 2012
Description
Quoted Prices in Active
Markets for Identical
Assets/Liabilities (Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents
$
100.0

 
$

 
$

 
$
100.0

Derivative assets

 

 
62.4

 
62.4

Marketable securities
27.0

 

 

 
27.0

Foreign exchange contracts

 
16.2

 

 
16.2

Total
$
127.0

 
$
16.2

 
$
62.4

 
$
205.6

Liabilities:

 

 

 

Derivative liabilities
$

 
$

 
$
11.3

 
$
11.3

Foreign exchange contracts

 
1.9

 

 
1.9

Total
$

 
$
1.9

 
$
11.3

 
$
13.2

The following table illustrates information about quantitative inputs and assumptions for the derivative assets and derivative liabilities categorized in Level 3 of the fair value hierarchy:
Qualitative/Quantitative Information About Level 3 Fair Value Measurements
($ in millions)
Fair Value at
 
Balance Sheet Location
 
Valuation Technique
 
Unobservable Input
 
Range
(Weighted Average)
3/31/2013
Provisional Pricing Arrangements
$
3.9

 
Derivative assets
 
Market Approach
 
Managements
Estimate of 62% Fe
 
$137
 
$
6.8

 
Other current liabilities
 
 
 
 
 
 
Customer Supply Agreement
$
49.4

 
Derivative assets
 
Market Approach
 
Hot-Rolled Steel Estimate
 
$600 - $645 ($630)
The following table represents a reconciliation of the changes in fair value of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2013 and 2012.
 
(In Millions)
 
Derivative Assets
(Level 3)
 
Derivative Liabilities
(Level 3)
 
Three Months Ended
March 31,
 
Three Months Ended
March 31,
 
2013
 
2012
 
2013
 
2012
Beginning balance - January 1
$
62.4

 
$
157.9

 
$
(11.3
)
 
$
(19.5
)
Total gains

 

 
 
 
 
Included in earnings
28.0

 
43.3

 
(6.8
)
 
(1.1
)
Included in other comprehensive income

 

 

 

Settlements
(37.1
)
 
(132.0
)
 
11.3

 
19.5

Transfers into Level 3

 

 

 

Transfers out of Level 3

 

 

 

Ending balance - March 31
$
53.3

 
$
69.2

 
$
(6.8
)
 
$
(1.1
)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) on assets (liabilities) still held at the reporting date
$
28.0

 
$
43.3

 
$
(6.8
)
 
$
(1.1
)
A summary of the carrying amount and fair value of other financial instruments at March 31, 2013 and December 31, 2012 were as follows:
 
 
 
(In Millions)
 
 
 
March 31, 2013
 
December 31, 2012
 
Classification
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Other receivables:
 
 
 
 
 
 
 
 
 
Customer supplemental payments
Level 2
 
$
16.7

 
$
16.1

 
$
22.3

 
$
21.3

ArcelorMittal USA—Receivable
Level 2
 
17.4

 
19.1

 
19.3

 
21.3

Other
Level 2
 
10.5

 
10.5

 
10.9

 
10.9

Total receivables
 
 
$
44.6

 
$
45.7

 
$
52.5

 
$
53.5

Long-term debt:
 
 
 
 
 
 
 
 
 
Term loan—$1.25 billion
Level 2
 
$

 
$

 
$
753.0

 
$
753.0

Senior notes—$700 million
Level 2
 
699.4

 
751.4

 
699.4

 
759.4

Senior notes—$1.3 billion
Level 2
 
1,289.4

 
1,513.2

 
1,289.4

 
1,524.7

Senior notes—$400 million
Level 2
 
398.3

 
458.8

 
398.2

 
464.3

Senior notes—$500 million
Level 2
 
495.9

 
527.7

 
495.7

 
528.4

Revolving loan
Level 2
 
550.0

 
550.0

 
325.0

 
325.0

Total long-term debt
 
 
$
3,433.0

 
$
3,801.1

 
$
3,960.7

 
$
4,354.8

The following table presents information about the impairment charges on both financial and nonfinancial assets that were measured on a fair value basis for the year ended December 31, 2012. The table also indicates the fair value hierarchy of the valuation techniques used to determine such fair value. We had no financial assets and liabilities measured at fair value on a non-recurring basis at March 31, 2013.
 
(In Millions)
 
December 31, 2012
Description
Quoted Prices in Active
Markets for Identical Assets/Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Investment in ventures impairment -
     Amapá
$

 
$

 
$
72.5

 
$
72.5

DEBT AND CREDIT FACILITIES (Tables)
The following represents a summary of our long-term debt as of March 31, 2013 and December 31, 2012:
($ in Millions)
 
March 31, 2013
 
Debt Instrument
Type
 
Annual Effective Interest Rate
 
Final Maturity
 
Total Face Amount
 
Total Debt
 
$700 Million 4.875% 2021 Senior Notes
Fixed
 
4.89%
 
2021
 
$
700.0

 
$
699.4

(2)
$1.3 Billion Senior Notes:
 
 
 
 
 
 
 
 
 
 
$500 Million 4.80% 2020 Senior Notes
Fixed
 
4.83%
 
2020
 
500.0

 
499.2

(3)
$800 Million 6.25% 2040 Senior Notes
Fixed
 
6.34%
 
2040
 
800.0

 
790.2

(4)
$400 Million 5.90% 2020 Senior Notes
Fixed
 
5.98%
 
2020
 
400.0

 
398.3

(5)
$500 Million 3.95% 2018 Senior Notes
Fixed
 
4.14%
 
2018
 
500.0

 
495.9

(6)
$1.75 Billion Credit Facility:
 
 
 
 
 
 
 
 
 
 
Revolving Loan
Variable
 
2.65%
 
2017
 
1,750.0

 
550.0

(7)
Total debt
 
 
 
 
 
 
$
4,650.0

 
$
3,433.0

 
Less current portion
 
 
 
 
 
 
 
 

 
Long-term debt
 
 
 
 
 
 
 
 
$
3,433.0

 
($ in Millions)
 
December 31, 2012
 
Debt Instrument
Type
 
Annual Effective Interest Rate
 
Final Maturity
 
Total Face Amount
 
Total Debt
 
$1.25 Billion Term Loan
Variable
 
1.83%
 
2016
 
$
847.1

(1)
$
847.1

(1)
$700 Million 4.875% 2021 Senior Notes
Fixed
 
4.88%
 
2021
 
700.0

 
699.4

(2)
$1.3 Billion Senior Notes:
 
 
 
 
 
 
 
 
 
 
$500 Million 4.80% 2020 Senior Notes
Fixed
 
4.80%
 
2020
 
500.0

 
499.2

(3)
$800 Million 6.25% 2040 Senior Notes
Fixed
 
6.25%
 
2040
 
800.0

 
790.2

(4)
$400 Million 5.90% 2020 Senior Notes
Fixed
 
5.90%
 
2020
 
400.0

 
398.2

(5)
$500 Million 3.95% 2018 Senior Notes
Fixed
 
4.14%
 
2018
 
500.0

 
495.7

(6)
$1.75 Billion Credit Facility:
 
 
 
 
 
 
 
 
 
 
Revolving Loan
Variable
 
2.02%
 
2017
 
1,750.0

 
325.0

(7)
Total debt
 
 
 
 
 
 
$
5,497.1

 
$
4,054.8

 
Less current portion
 
 
 
 
 
 
 
 
94.1

 
Long-term debt
 
 
 
 
 
 
 
 
$
3,960.7

 
                                         
(1)
As of March 31, 2013, the term loan was repaid in full. During the first quarter of 2013, repayments totaling $847.1 million were made. As of December 31, 2012, $402.8 million had been paid down on the original $1.25 billion term loan and, of the remaining term loan $94.1 million, was classified as Current portion of debt. The current classification was based upon the principal payment terms of the arrangement requiring principal payments on each three-month anniversary following the funding of the term loan.
(2)
As of March 31, 2013 and December 31, 2012, the $700 million 4.875 percent senior notes were recorded at a par value of $700 million less unamortized discounts of $0.6 million, based on an imputed interest rate of 4.89 percent.
(3)
As of March 31, 2013 and December 31, 2012, the $500 million 4.80 percent senior notes were recorded at a par value of $500 million less unamortized discounts of $0.8 million, based on an imputed interest rate of 4.83 percent.
(4)
As of March 31, 2013 and December 31, 2012, the $800 million 6.25 percent senior notes were recorded at par value of $800 million less unamortized discounts of $9.8 million, based on an imputed interest rate of 6.34 percent.
(5)
As of March 31, 2013 and December 31, 2012, the $400 million 5.90 percent senior notes were recorded at a par value of $400 million less unamortized discounts of $1.7 million and $1.8 million, respectively, based on an imputed interest rate of 5.98 percent.
(6)
As of March 31, 2013 and December 31, 2012, the $500 million 3.95 percent senior notes were recorded at a par value of $500 million less unamortized discounts of $4.1 million and $4.3 million, respectively, based on an imputed interest rate of 4.14 percent.
(7)
As of March 31, 2013 and December 31, 2012, $550.0 million and $325.0 million revolving loans were drawn under the credit facility, respectively, and the principal amount of letter of credit obligations totaled $27.7 million for each period, thereby reducing available borrowing capacity to $1.2 billion and $1.4 billion for each period, respectively.
Debt Maturities
The following represents a summary of our maturities of debt instruments, excluding borrowings on the amended credit agreement, based on the principal amounts outstanding at March 31, 2013:
 
(In Millions)
 
Maturities of Debt
2013 (April 1 - December 31)
$

2014

2015

2016

2017

2018 and thereafter
2,900.0

Total maturities of debt
$
2,900.0

LEASE OBLIGATIONS (Tables)
Schedule Of Future Minimum Lease Payments For Capital Leases And Operating Leases
Future minimum payments under capital leases and non-cancellable operating leases at March 31, 2013 are as follows:
 
(In Millions)
 
Capital Leases
 
Operating Leases
2013 (April 1 - December 31)
$
56.8

 
$
18.8

2014
69.5

 
19.7

2015
58.2

 
13.0

2016
42.2

 
8.1

2017
34.8

 
7.4

2018 and thereafter
91.8

 
21.5

Total minimum lease payments
$
353.3

 
$
88.5

Amounts representing interest
76.7

 
 
Present value of net minimum lease payments
$
276.6

(1)
 
                                         
(1)
The total is comprised of $53.5 million and $223.1 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at March 31, 2013.
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS (Tables)
The following is a summary of the obligations as of March 31, 2013 and as of the year ended December 31, 2012:
 
(In Millions)
 
March 31, 2013
 
December 31, 2012
Environmental
$
15.4

 
$
15.7

Mine closure
 
 
 
LTVSMC
18.7

 
18.3

Operating mines:
 
 
 
U.S. Iron Ore
83.1

 
81.2

Eastern Canadian Iron Ore
73.4

 
88.9

Asia Pacific Iron Ore
22.7

 
22.4

North American Coal
39.1

 
38.6

Total mine closure
237.0

 
249.4

Total environmental and mine closure obligations
252.4

 
265.1

Less current portion
12.0

 
12.3

Long term environmental and mine closure obligations
$
240.4

 
$
252.8

The following represents a rollforward of our asset retirement obligation liability related to our active mining locations for the three months ended March 31, 2013 and the year ended December 31, 2012:
 
(In Millions)
 
 
March 31, 2013
 
December 31, 2012
(1)
Asset retirement obligation at beginning of period
$
231.1

 
$
194.9

 
Accretion expense
4.5

 
17.6

 
Exchange rate changes

 
0.3

 
Revision in estimated cash flows
(17.2
)
 
18.2

 
Payments
(0.1
)
 
0.1

 
Asset retirement obligation at end of period
$
218.3

 
$
231.1

 
PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Tables)
Schedule of Net Benefit Costs [Table Text Block]
The following are the components of defined benefit pension and OPEB expense for the three months ended March 31, 2013 and 2012:
 
(In Millions)
 
Pension Benefits
 
Other Benefits
 
Three Months Ended
March 31,
 
Three Months Ended
March 31,
 
2013
 
2012
 
2013
 
2012
Service cost
$
9.9

 
$
8.0

 
$
3.1

 
$
3.6

Interest cost
11.5

 
12.0

 
4.3

 
5.2

Expected return on plan assets
(13.1
)
 
(14.8
)
 
(5.0
)
 
(4.3
)
Amortization:
 
 
 
 
 
 
 
Prior service costs
0.7

 
1.0

 
(0.9
)
 
0.7

Net actuarial loss
6.8

 
7.4

 
2.8

 
2.9

Net periodic benefit cost
$
15.8

 
$
13.6

 
$
4.3

 
$
8.1

STOCK COMPENSATION PLANS (Tables)
Schedule Of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions
The following assumptions were utilized to estimate the fair value for the first quarter of 2013 performance share grants:
Grant Date
Grant Date Market Price
 
Average Expected Term (Years)
 
Expected Volatility
 
Risk-Free Interest Rate
 
Dividend Yield
 
Fair Value
 
Fair Value (Percent of Grant Date Market Price)
March 11, 2013
$
23.83

 
2.81
 
52.9%
 
0.40%
 
2.52%
 
$
17.01

 
71.38%
SHAREHOLDERS' EQUITY Shareholders' Equity (Tables)
The following table reflects the changes in shareholders' equity attributable to both Cliffs and the noncontrolling interests primarily related to Bloom Lake, Tilden and Empire of which Cliffs owns 75 percent, 85 percent and 79 percent, respectively, for the three months ended March 31, 2013 and March 31, 2012:
 
(In Millions)
 
Cliffs
Shareholders’
Equity
 
Noncontrolling
Interest
 
Total Equity
December 31, 2012
$
4,632.7

 
$
1,128.2

 
$
5,760.9

Comprehensive income
 
 
 
 
 
Net income
107.0

 
13.8

 
120.8

Other comprehensive income
4.2

 
1.2

 
5.4

Total comprehensive income
111.2

 
15.0

 
126.2

Issuance of common shares
263.7

 

 
263.7

Issuance of Preferred Shares
731.3

 

 
731.3

Stock and other incentive plans
(1.5
)
 

 
(1.5
)
Common and Preferred Shares dividends
(32.8
)
 

 
(32.8
)
Capital contribution by noncontrolling
    interest to subsidiary

 
11.2

 
11.2

March 31, 2013
$
5,704.6

 
$
1,154.4

 
$
6,859.0

 
(In Millions)
 
Cliffs
Shareholders’
Equity
 
Noncontrolling
Interest
 
Total Equity
December 31, 2011
$
5,785.0

 
$
1,254.7

 
$
7,039.7

Comprehensive income
 
 
 
 
 
Net income
375.8

 
15.6

 
391.4

Other comprehensive income
21.7

 
1.5

 
23.2

Total comprehensive income
397.5

 
17.1

 
414.6

Stock and other incentive plans
(2.8
)
 

 
(2.8
)
Common shares dividends
(39.7
)
 

 
(39.7
)
Undistributed gains to noncontrolling interest

 
7.8

 
7.8

Capital contribution by noncontrolling interest
    to subsidiary

 
22.3

 
22.3

Acquisition of controlling interest

 
(8.0
)
 
(8.0
)
March 31, 2012
$
6,140.0

 
$
1,293.9

 
$
7,433.9

The following table reflects the changes in Accumulated other comprehensive income (loss) related to Cliffs shareholders’ equity for March 31, 2013 and March 31, 2012:
 
(In Millions)
 
Postretirement Benefit Liability, net of tax
 
Unrealized Net Gain on Securities, net of tax
 
Unrealized Net Gain on Foreign Currency Translation
 
Net Unrealized Gain (Loss) on Derivative Financial Instruments, net of tax
 
Accumulated Other Comprehensive Income (Loss)
Balance December 31, 2012
$
(382.7
)
 
$
2.1

 
$
316.3

 
$
8.7

 
$
(55.6
)
Other comprehensive income (loss) before reclassifications
(1.1
)
 
2.5

 
3.3

 
(5.0
)
 
(0.3
)
Amounts reclassified from accumulated other comprehensive income (loss)
6.4

 
0.1

 

 
(2.0
)
 
4.5

Balance March 31, 2013
$
(377.4
)
 
$
4.7

 
$
319.6

 
$
1.7

 
$
(51.4
)
 
(In Millions)
 
Postretirement Benefit Liability, net of tax
 
Unrealized Net Gain on Securities, net of tax
 
Unrealized Net Gain on Foreign Currency Translation
 
Net Unrealized Gain on Derivative Financial Instruments, net of tax
 
Accumulated Other Comprehensive Income (Loss)
Balance December 31, 2011
$
(408.9
)
 
$
2.6

 
$
312.5

 
$
1.2

 
$
(92.6
)
Change during 2012
4.7

 
2.3

 
10.9

 
3.8

 
21.7

Balance March 31, 2012
$
(404.2
)
 
$
4.9

 
$
323.4

 
$
5.0

 
$
(70.9
)
The following table reflects the details about Accumulated other comprehensive income (loss) components related to Cliffs shareholders’ equity for March 31, 2013:
Details about Accumulated Other Comprehensive Income (Loss) Components
 
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
 
Affected Line Item in the Statement of Unaudited Condensed Consolidated Operations
Amortization of Pension and Postretirement Benefit Liability:
 
 
 
 
Prior-service costs
 
$
(0.2
)
 
(1)
Net actuarial loss
 
9.6

 
(1)
 
 
9.4

 
Total before taxes
 
 
(3.0
)
 
Income tax benefit
 
 
$
6.4

 
Net of taxes
 
 
 
 
 
Unrealized gain (loss) on securities:
 
 
 
 
Impairment
 
$
0.1

 
Other non-operating income
 
 
0.1

 
Total before taxes
 
 

 
Income tax benefit
 
 
$
0.1

 
Net of taxes
 
 
 
 
 
Unrealized gain (loss) on derivative financial instruments:
 
 
 
 
Australian dollar foreign exchange contracts
 
$
(2.6
)
 
Product revenues
Canadian dollar foreign exchange contracts
 
(0.3
)
 
Cost of goods sold and operating expenses
 
 
(2.9
)
 
Total before taxes
 
 
0.9

 
Income tax benefit
 
 
$
(2.0
)
 
Net of taxes
 
 
 
 
 
Total Reclassifications for the Period
 
$
4.5

 
 
RELATED PARTIES (Tables)
The following is a summary of the mine ownership of these iron ore mines at March 31, 2013:
Mine
 
Cliffs Natural Resources
 
ArcelorMittal
 
U.S. Steel Canada
 
WISCO
Empire
 
79.0
 
21.0
 
 
Tilden
 
85.0
 
 
15.0
 
Hibbing
 
23.0
 
62.3
 
14.7
 
Bloom Lake
 
75.0
 
 
 
25.0
Product revenues from related parties were as follows:
 
(In Millions)
 
Three Months Ended
March 31,
 
2013
 
2012
Product revenues from related parties
$
288.6

 
$
331.9

Total product revenues
1,082.6

 
1,148.6

Related party product revenue as a percent of total product revenue
26.7
%
 
28.9
%
EARNINGS PER SHARE (Tables) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Earnings Per Share [Abstract]
 
 
Net Income from Continuing Operations attributable to Cliffs shareholders
$ 107.0 
$ 370.3 
Earnings Per Share Computation
 
The following table summarizes the computation of basic and diluted earnings per share:
 
(In Millions, Except Per Share Amounts)
 
Three Months Ended
March 31,
 
2013
 
2012
Net Income from Continuing Operations attributable to
Cliffs shareholders
$
107.0

 
$
370.3

Income from Discontinued Operations, net of tax

 
5.5

NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$
107.0

 
$
375.8

PREFERRED STOCK DIVIDENDS
(9.9
)
 

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS
$
97.1

 
$
375.8

Weighted Average Number of Shares:
 
 
 
Basic
147.8

 
142.2

Depositary Shares

 

Employee Stock Plans
0.3

 
0.5

Diluted
148.1

 
142.7

Earnings per Common Share Attributable to Cliffs
Shareholders - Basic:
 
 
 
Continuing operations
$
0.66

 
$
2.60

Discontinued operations

 
0.04

 
$
0.66

 
$
2.64

Earnings per Common Share Attributable to Cliffs
Shareholders - Diluted:
 
 
 
Continuing operations
$
0.66

 
$
2.59

Discontinued operations

 
0.04

 
$
0.66

 
$
2.63

CASH FLOW INFORMATION (Tables)
Supplemental Cash Flow Disclosures
A reconciliation of capital additions to cash paid for capital expenditures for the three months ended March 31, 2013 and 2012 is as follows:
 
(In Millions)
 
Three Months Ended March 31,
 
2013
 
2012
Capital additions
$
195.7

 
$
353.4

Cash paid for capital expenditures
230.4

 
241.1

Difference
$
(34.7
)
 
$
112.3

Non-cash accruals
$
(34.7
)
 
$
59.5

Capital leases

 
52.8

Total
$
(34.7
)
 
$
112.3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details)
3 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2013
Empire [Member]
Mar. 31, 2013
Black Label And Black Thor Chromite Deposits [Member]
Mar. 31, 2013
Big Daddy Chromite Deposit [Member]
Mar. 31, 2013
CLCC [Member]
Mar. 31, 2013
Wabush [Member]
Mar. 31, 2013
Bloom Lake [Member]
Mar. 31, 2013
Asia Pacific Iron Ore [Member]
Cockatoo [Member]
USD ($)
Dec. 31, 2012
Asia Pacific Iron Ore [Member]
Cockatoo [Member]
AUD ($)
Mar. 31, 2013
Equity Method Investments [Member]
Amapa [Member]
Mar. 31, 2013
Other Liabilities [Member]
Cockatoo [Member]
Dec. 31, 2012
Sonoma [Member]
Asia Pacific Coal [Member]
AUD ($)
Jul. 10, 2012
Sonoma [Member]
Asia Pacific Coal [Member]
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Fiscal Year End Date
--12-31 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership Interest
 
79.00% 
100.00% 
70.00% 
100.00% 
100.00% 
75.00% 
 
 
 
 
 
45.00% 
Ownership interest, equity method investment
 
 
 
 
 
 
 
 
 
30.00% 
50.00% 
 
 
Total percentage of Amapa sold
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
Proceeds from sale of economic interest (in AUD)
 
 
 
 
 
 
 
 
$ 4.00 
 
 
$ 141,000,000 
 
Estimated rehabilitation costs
 
 
 
 
 
 
 
$ 24,000,000 
 
 
 
 
 
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Schedule Of Subsidiaries) (Details)
3 Months Ended
Mar. 31, 2013
Northshore [Member]
 
Related Party Transaction [Line Items]
 
Location
Minnesota 
Ownership Interest
100.00% 
Operation
Iron Ore 
United Taconite [Member]
 
Related Party Transaction [Line Items]
 
Location
Minnesota 
Ownership Interest
100.00% 
Operation
Iron Ore 
Wabush [Member]
 
Related Party Transaction [Line Items]
 
Location
Newfoundland and Labrador/Quebec, Canada 
Ownership Interest
100.00% 
Operation
Iron Ore 
Bloom Lake [Member]
 
Related Party Transaction [Line Items]
 
Location
Quebec, Canada 
Ownership Interest
75.00% 
Operation
Iron Ore 
Tilden [Member]
 
Related Party Transaction [Line Items]
 
Location
Michigan 
Ownership Interest
85.00% 
Operation
Iron Ore 
Empire [Member]
 
Related Party Transaction [Line Items]
 
Location
Michigan 
Ownership Interest
79.00% 
Operation
Iron Ore 
Koolyanobbing [Member]
 
Related Party Transaction [Line Items]
 
Location
Western Australia 
Ownership Interest
100.00% 
Operation
Iron Ore 
Pinnacle [Member]
 
Related Party Transaction [Line Items]
 
Location
West Virginia 
Ownership Interest
100.00% 
Operation
Coal 
Oak Grove [Member]
 
Related Party Transaction [Line Items]
 
Location
Alabama 
Ownership Interest
100.00% 
Operation
Coal 
CLCC [Member]
 
Related Party Transaction [Line Items]
 
Location
West Virginia 
Ownership Interest
100.00% 
Operation
Coal 
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Investments In Unconsolidated Ventures) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Schedule of Equity Method Investments [Line Items]
 
 
Investment
$ 106.4 
$ 108.4 
Amapa [Member] |
Investments In Ventures [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Interest Percentage
30.00% 
 
Total percentage of Amapa sold
100.00% 
 
Investment
96.9 
101.9 
Cockatoo [Member] |
Other Liabilities [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Interest Percentage
50.00% 
 
Investment
(25.4)
(25.3)
Hibbing [Member] |
Investments In Ventures [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Investment
1.4 1
 
Hibbing [Member] |
Other Liabilities [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Investment
 
(2.1)1
Other Equity Investees [Member] |
Investments In Ventures [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Investment
$ 33.5 
$ 33.9 
Hibbing [Member] |
Hibbing [Member] |
Investments In Ventures [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Interest Percentage
23.00% 1
 
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Schedule of Intangible Asset Lives (Details) (All Other Segments [Member])
3 Months Ended
Mar. 31, 2013
Permits [Member] |
Minimum [Member]
 
Finite-Lived Intangible Assets [Line Items]
 
Finite-Lived Intangible Asset, Useful Life
15 years 
Permits [Member] |
Maximum [Member]
 
Finite-Lived Intangible Assets [Line Items]
 
Finite-Lived Intangible Asset, Useful Life
40 years 
Utility Contracts [Member]
 
Finite-Lived Intangible Assets [Line Items]
 
Finite-Lived Intangible Asset, Useful Life
5 years 
Leases [Member] |
Minimum [Member]
 
Finite-Lived Intangible Assets [Line Items]
 
Finite-Lived Intangible Asset, Useful Life
4 years 6 months 
Leases [Member] |
Maximum [Member]
 
Finite-Lived Intangible Assets [Line Items]
 
Finite-Lived Intangible Asset, Useful Life
17 years 6 months 
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Capital Stock (Details)
3 Months Ended
Mar. 31, 2013
Class of Stock [Line Items]
 
Depositary Share Interest in a Share of 7% Series A Mandatory Convertible Preferred Stock, Class A
0.025 
Trading Day Window Determining Number of Common Shares Issuable on Conversion
20 
SEGMENT REPORTING (Narrative) (Details)
3 Months Ended
Mar. 31, 2013
Facility
U.S. Iron Ore [Member]
 
Segment Reporting Information [Line Items]
 
Number of mines (in number of facilities)
Eastern Canadian Iron Ore [Member]
 
Segment Reporting Information [Line Items]
 
Number of mines (in number of facilities)
North American Coal [Member] |
Metallurgical Coal Mines [Member]
 
Segment Reporting Information [Line Items]
 
Number of mines (in number of facilities)
North American Coal [Member] |
Thermal Coal Mines [Member]
 
Segment Reporting Information [Line Items]
 
Number of mines (in number of facilities)
Latin American Iron Ore [Member] |
Amapa [Member]
 
Segment Reporting Information [Line Items]
 
Interest Percentage
30.00% 
SEGMENT REPORTING (Schedule Of Segment Reporting Information, By Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Segment Reporting Information [Line Items]
 
 
Revenues from product sales and services
$ 1,140.5 
$ 1,212.4 
Revenues from product sales and services, percent
100.00% 
100.00% 
Sales margin
237.9 
291.8 
Other operating expense
(69.6)
(68.9)
Other income (expense)
(48.0)
(43.3)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY LOSS FROM VENTURES
120.3 
179.6 
Depreciation, depletion and amortization
140.6 
117.3 
Capital additions
195.7 1
353.4 1
U.S. Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues from product sales and services
410.1 
441.7 
Revenues from product sales and services, percent
36.00% 
36.00% 
Sales margin
157.3 
166.9 
Depreciation, depletion and amortization
26.6 
23.2 
Capital additions
11.7 1
34.8 1
Eastern Canadian Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues from product sales and services
245.3 
220.7 
Revenues from product sales and services, percent
22.00% 
18.00% 
Sales margin
19.4 
(14.3)
Depreciation, depletion and amortization
41.1 
37.9 
Capital additions
167.0 1
130.6 1
Asia Pacific Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues from product sales and services
270.8 
359.8 
Revenues from product sales and services, percent
24.00% 
30.00% 
Sales margin
61.3 
125.0 
Depreciation, depletion and amortization
36.4 
30.0 
Capital additions
4.3 1
109.3 1
North American Coal [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues from product sales and services
214.3 
189.9 
Revenues from product sales and services, percent
18.00% 
16.00% 
Sales margin
1.8 
14.5 
Depreciation, depletion and amortization
32.5 
20.1 
Capital additions
11.1 1
39.1 1
All Other Segments [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Revenues from product sales and services
0.3 
Revenues from product sales and services, percent
0.00% 
0.00% 
Sales margin
(1.9)
(0.3)
Depreciation, depletion and amortization
4.0 
6.1 
Capital additions
$ 1.6 1
$ 39.6 1
SEGMENT REPORTING Segment Reporting (Summary of Assets by Segment) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
Assets
$ 13,821.9 
$ 13,574.9 
U.S. Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
1,848.4 
1,735.1 
Eastern Canadian Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
7,719.7 
7,605.1 
Asia Pacific Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
1,474.4 
1,506.3 
North American Coal [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
1,829.7 
1,877.8 
All Other Segments [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
599.3 
570.9 
Total Segment Assets [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
13,471.5 
13,295.2 
Corporate [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
$ 350.4 
$ 279.7 
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Derivative [Line Items]
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
$ (5.0)
$ 3.7 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
2.0 
3.6 
 
Amount of gain/(loss) recognized in income on derivative
(2.0)
 
 
Derivative assets
66.4 
 
78.6 
Australian Dollar Foreign Exchange Contract Hedge Designation [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
3.2 
3.0 
 
Australian Dollar Foreign Exchange Contract Hedge Designation [Member] |
Product Revenues [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
1.8 
3.1 
 
Australian Dollar Foreign Exchange Contract Hedge Designation [Member] |
Designated as Hedging Instrument [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amounts of outstanding exchange rate contracts
378.0 
 
400.0 
Australian Dollar Foreign Exchange Contract Hedge Designation [Member] |
Designated as Hedging Instrument [Member] |
Accumulated Other Comprehensive Income (Loss) [Member]
 
 
 
Derivative [Line Items]
 
 
 
Amount that will be reclassified to product revenues in the next 12 months upon settlement of the related contracts
8.1 
 
 
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
(8.2)
0.7 
 
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member] |
Cost Of Goods Sold And Operating Expenses [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
0.2 
0.5 
 
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member] |
Designated as Hedging Instrument [Member]
 
 
 
Derivative [Line Items]
 
 
 
Notional amounts of outstanding exchange rate contracts
557.3 
 
630.4 
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member] |
Designated as Hedging Instrument [Member] |
Accumulated Other Comprehensive Income (Loss) [Member]
 
 
 
Derivative [Line Items]
 
 
 
Amount that will be reclassified to product revenues in the next 12 months upon settlement of the related contracts
(5.0)
 
 
Customer Supply Agreement [Member] |
Not Designated as Hedging Instrument [Member] |
Product Revenues [Member]
 
 
 
Derivative [Line Items]
 
 
 
Amount of gain/(loss) recognized in income on derivative
24.1 
39.2 
 
Customer Supply Agreement [Member] |
Not Designated as Hedging Instrument [Member] |
Derivative Assets [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative assets
49.4 
 
58.9 
Provisional Pricing Arrangements [Member] |
Not Designated as Hedging Instrument [Member] |
U.S. Iron Ore and Asia Pacific Iron Ore [Member] |
Product Revenues [Member]
 
 
 
Derivative [Line Items]
 
 
 
Amount of gain/(loss) recognized in income on derivative
(2.9)
 
 
Provisional Pricing Arrangements [Member] |
Not Designated as Hedging Instrument [Member] |
U.S. Iron Ore and Asia Pacific Iron Ore [Member] |
Derivative Assets [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative assets
3.9 
 
 
Provisional Pricing Arrangements [Member] |
Not Designated as Hedging Instrument [Member] |
U.S. Iron Ore and Asia Pacific Iron Ore [Member] |
Other Current Liabilities [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative liabilities
6.8 
 
 
Provisional Pricing Arrangements [Member] |
Not Designated as Hedging Instrument [Member] |
U.S. Iron Ore, Eastern Canadian Iron Ore And Asia Pacific Iron Ore [Member] |
Product Revenues [Member]
 
 
 
Derivative [Line Items]
 
 
 
Amount of gain/(loss) recognized in income on derivative
 
3.0 
 
Provisional Pricing Arrangements [Member] |
Not Designated as Hedging Instrument [Member] |
U.S. Iron Ore and Eastern Canadian Iron Ore [Member] |
Derivative Assets [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative assets
 
 
3.5 
Provisional Pricing Arrangements [Member] |
Not Designated as Hedging Instrument [Member] |
U.S. Iron Ore and Eastern Canadian Iron Ore [Member] |
Other Current Liabilities [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative liabilities
 
 
$ 11.3 
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule Of Derivative Instruments In Statement Of Financial Position, Fair Value) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
$ 66.4 
$ 78.6 
Derivative liability, fair value
15.3 
13.2 
Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
13.1 
16.2 
Derivative liability, fair value
8.5 
1.9 
Not Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
53.3 
62.4 
Derivative liability, fair value
6.8 
11.3 
Significant Other Observable Inputs (Level 2) [Member] |
Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Derivative Assets (Current) [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
13.1 
16.2 
Significant Other Observable Inputs (Level 2) [Member] |
Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability, fair value
8.5 
1.9 
Market Approach [Member] |
Managements Estimate Of 62% Fee [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Not Designated as Hedging Instrument [Member] |
Provisional Pricing Arrangements [Member] |
Derivative Assets (Current) [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
3.9 
3.5 
Market Approach [Member] |
Managements Estimate Of 62% Fee [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Not Designated as Hedging Instrument [Member] |
Provisional Pricing Arrangements [Member] |
Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability, fair value
6.8 
11.3 
Market Approach [Member] |
Hot-Rolled Steel Estimate [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Not Designated as Hedging Instrument [Member] |
Customer Supply Agreement [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability, fair value
   
   
Market Approach [Member] |
Hot-Rolled Steel Estimate [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Not Designated as Hedging Instrument [Member] |
Customer Supply Agreement [Member] |
Derivative Assets (Current) [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
$ 49.4 
$ 58.9 
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Statements Of Financial Performance Location Table) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Derivative [Line Items]
 
 
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
$ (5.0)
$ 3.7 
Amount of Gain Reclassified from Accumulated OCI into Income (Effective Portion)
2.0 
3.6 
Australian Dollar Foreign Exchange Contract Hedge Designation [Member]
 
 
Derivative [Line Items]
 
 
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
3.2 
3.0 
Australian Dollar Foreign Exchange Contract Hedge Designation [Member] |
Product Revenues [Member]
 
 
Derivative [Line Items]
 
 
Amount of Gain Reclassified from Accumulated OCI into Income (Effective Portion)
1.8 
3.1 
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member]
 
 
Derivative [Line Items]
 
 
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
(8.2)
0.7 
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member] |
Cost Of Goods Sold And Operating Expenses [Member]
 
 
Derivative [Line Items]
 
 
Amount of Gain Reclassified from Accumulated OCI into Income (Effective Portion)
$ 0.2 
$ 0.5 
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule Of Derivatives Not Designated As Hedging Instruments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Derivatives, Fair Value [Line Items]
 
 
Amount of Gain/(Loss) Recognized in Income on Derivative
$ 21.2 
$ 42.5 
Foreign Exchange Contract [Member] |
Other Income (Expense) [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Amount of Gain/(Loss) Recognized in Income on Derivative
0.3 
Customer Supply Agreements [Member] |
Product Revenues [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Amount of Gain/(Loss) Recognized in Income on Derivative
24.1 
39.2 
Provisional Pricing Arrangements [Member] |
Product Revenues [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Amount of Gain/(Loss) Recognized in Income on Derivative
$ (2.9)
$ 3.0 
INVENTORIES (Schedule Of Inventories) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2013
U.S. Iron Ore [Member]
Dec. 31, 2012
U.S. Iron Ore [Member]
Mar. 31, 2013
Eastern Canadian Iron Ore [Member]
Dec. 31, 2012
Eastern Canadian Iron Ore [Member]
Mar. 31, 2013
Asia Pacific Iron Ore [Member]
Dec. 31, 2012
Asia Pacific Iron Ore [Member]
Mar. 31, 2013
North American Coal [Member]
Dec. 31, 2012
North American Coal [Member]
Mar. 31, 2013
Cost Of Goods Sold And Operating Expenses [Member]
North American Coal [Member]
Mar. 31, 2012
Cost Of Goods Sold And Operating Expenses [Member]
North American Coal [Member]
Inventory, Net [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
Finished Goods
$ 517.9 
$ 283.2 
$ 293.9 
$ 147.2 
$ 101.0 
$ 62.6 
$ 73.5 
$ 36.7 
$ 49.5 
$ 36.7 
 
 
Work-in Process
112.2 
153.3 
27.2 
22.9 
38.4 
44.2 
16.4 
37.2 
30.2 
49.0 
 
 
Total Inventory
630.1 
436.5 
321.1 
170.1 
139.4 
106.8 
89.9 
73.9 
79.7 
85.7 
 
 
Lower-of-cost-or-market inventory charges
 
 
 
 
 
 
 
 
 
 
$ 2.0 
$ 1.3 
PROPERTY, PLANT AND EQUIPMENT (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Construction in Progress [Member]
Dec. 31, 2012
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
 
 
 
 
Depreciation And Depletion
$ 135.9 
$ 111.4 
 
 
Accumulated amount of capitalized interest included within construction in progress
 
 
24.2 
17.1 
Interest costs capitalized during the period
 
 
$ 7.1 
$ 15.4 
PROPERTY, PLANT AND EQUIPMENT (Value Of Each Of The Major Classes Of Consolidated Depreciable Assets) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 13,207.1 
$ 13,044.7 
Allowance for depreciation and depletion
(1,970.8)
(1,837.4)
Property, plant and equipment, net
11,236.3 
11,207.3 
Land Rights And Mineral Rights [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
7,922.8 
7,920.8 
Office And Information Technology [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
114.8 
92.4 
Buildings [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
190.7 
162.0 
Mining Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
1,342.9 
1,290.7 
Processing Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
2,081.9 
1,937.4 
Railroad Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
242.1 
240.8 
Electric Power Facilities [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
61.4 
58.7 
Port Facilities [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
114.7 
114.3 
Interest Capitalized During Construction [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
20.8 
20.8 
Land Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
48.7 
43.9 
Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
53.1 
39.0 
Construction in Progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 1,013.2 
$ 1,123.9 
DISCONTINUED OPERATIONS (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Sonoma [Member]
Mar. 31, 2012
Sonoma [Member]
Jul. 10, 2012
Asia Pacific Coal [Member]
Sonoma [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
Percentage Of Ownership Interests
 
 
 
 
45.00% 
Statements of Consolidated Operations
 
 
 
 
 
REVENUES FROM PRODUCT SALES AND SERVICES
 
 
$ 0 
$ 52.4 
 
INCOME FROM DISCONTINUED OPERATIONS, net of tax
5.5 
5.5 
 
Tax effect of discontinued operation, tax expense (benefit)
 
 
 
$ 2.4 
 
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Impairment of goodwill
$ 0 
 
$ 1,000.0 
Product revenues
1,082.6 
1,148.6 
 
Minimum [Member]
 
 
 
Below-market sales contracts, remaining contract life
1 year 
 
 
Maximum [Member]
 
 
 
Below-market sales contracts, remaining contract life
4 years 
 
 
Cost Of Goods Sold And Operating Expenses [Member]
 
 
 
Amortization expense relating to intangible assets
4.7 
4.8 
 
Product Revenues [Member] |
Product Revenues [Member]
 
 
 
Product revenues
$ 1.9 
$ 1.9 
 
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES (Schedule Of Goodwill) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Goodwill [Roll Forward]
 
 
Beginning Balance
$ 167.4 
$ 1,152.1 
Arising in business combinations
13.8 
Impairment
(1,000.0)
Impact of foreign currency translation
0.2 
1.5 
Ending Balance
167.6 
167.4 
Accumulated Goodwill Impairment Loss
(1,027.8)
(1,027.8)
U.S. Iron Ore [Member]
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
2.0 
2.0 
Arising in business combinations
Impairment
Impact of foreign currency translation
Ending Balance
2.0 
2.0 
Accumulated Goodwill Impairment Loss
Eastern Canadian Iron Ore [Member]
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
986.2 
Arising in business combinations
13.8 
Impairment
(1,000.0)
Impact of foreign currency translation
Ending Balance
Accumulated Goodwill Impairment Loss
(1,000.0)
(1,000.0)
Asia Pacific Iron Ore [Member]
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
84.5 
83.0 
Arising in business combinations
Impairment
Impact of foreign currency translation
0.2 
1.5 
Ending Balance
84.7 
84.5 
Accumulated Goodwill Impairment Loss
North American Coal [Member]
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
Arising in business combinations
Impairment
Impact of foreign currency translation
Ending Balance
Accumulated Goodwill Impairment Loss
(27.8)
(27.8)
Other Segment [Member]
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
80.9 
80.9 
Arising in business combinations
Impairment
Impact of foreign currency translation
Ending Balance
80.9 
80.9 
Accumulated Goodwill Impairment Loss
$ 0 
$ 0 
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES (Schedule Of Finite-Lived Intangible Assets By Major Class) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
$ 196.6 
$ 196.5 
Definite lived intangible assets - Accumulated Amortization
(72.1)
(67.5)
Definite lived intangible assets - Net Carrying Amount
124.5 
129.0 
Permits [Member] |
Intangible Assets, Net [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
136.2 
136.1 
Definite lived intangible assets - Accumulated Amortization
(33.5)
(31.7)
Definite lived intangible assets - Net Carrying Amount
102.7 
104.4 
Utility Contracts [Member] |
Intangible Assets, Net [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
54.7 
54.7 
Definite lived intangible assets - Accumulated Amortization
(35.2)
(32.4)
Definite lived intangible assets - Net Carrying Amount
19.5 
22.3 
Leases [Member] |
Intangible Assets, Net [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
5.7 
5.7 
Definite lived intangible assets - Accumulated Amortization
(3.4)
(3.4)
Definite lived intangible assets - Net Carrying Amount
2.3 
2.3 
Below Market Sales Contracts [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
(296.7)
(296.7)
Definite lived intangible assets - Accumulated Amortization
183.5 
181.6 
Definite lived intangible assets - Net Carrying Amount
(113.2)
(115.1)
Below Market Sales Contracts [Member] |
Other Current Liabilities [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
(46.0)
(46.0)
Definite lived intangible assets - Accumulated Amortization
1.9 
   
Definite lived intangible assets - Net Carrying Amount
(44.1)
(46.0)
Below Market Sales Contracts [Member] |
Other Liabilities [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
(250.7)
(250.7)
Definite lived intangible assets - Accumulated Amortization
181.6 
181.6 
Definite lived intangible assets - Net Carrying Amount
$ (69.1)
$ (69.1)
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES (Estimated Amortization Expense Relating To Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Estimated amortization expense, intangible assets [Abstract]
 
2013 (remaining nine months)
$ 14.5 
2014
18.8 
2015
7.8 
2016
7.7 
2017
7.9 
2018
7.7 
Total
$ 64.4 
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES (Schedule Of Earnings To Be Recognized On Below Market Sales Contract) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Estimated recognition of product revenues, below-market sales contracts [Abstract]
 
2013 (remaining nine months)
$ 44.1 
2014
23.1 
2015
23.0 
2016
23.0 
Total
$ 113.2 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Mar. 31, 2013
Empire [Member]
Dec. 31, 2012
Empire [Member]
Dec. 31, 2002
Empire [Member]
Dec. 31, 2002
Prior [Member]
Empire [Member]
Dec. 31, 2002
Current [Member]
Empire [Member]
Mar. 31, 2013
Other Current Assets [Member]
Empire [Member]
Dec. 31, 2012
Other Current Assets [Member]
Empire [Member]
Mar. 31, 2013
U.S. Iron Ore [Member]
Dec. 31, 2012
U.S. Iron Ore [Member]
Dec. 31, 2012
Amapa [Member]
Dec. 31, 2012
Equity Method Investments [Member]
Amapa [Member]
Mar. 31, 2013
Equity Method Investments [Member]
Amapa [Member]
Fair Value, Assets And Liabilities Components [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transfer of derivative assets from level 3 to level 2
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transfer of derivative assets from level 2 to level 3
 
 
 
 
 
 
 
 
 
 
 
 
 
Management Estimate of 62% Fe
62.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum deferred portion of supplemental payments
 
 
 
 
 
 
 
 
 
 
22.3 
 
 
 
 
Supply agreement, customer receivable, stated interest rate
9.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Supply agreement, customer receivable, description of variable rate basis
prime rate 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other current assets
297.9 
 
321.6 
 
 
 
 
 
 
 
16.7 
22.3 
 
 
 
Supply agreement, customer receivable, basis spread on variable rate
3.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of the receivable
 
 
 
19.1 
21.3 
 
 
 
 
 
16.1 
21.3 
 
 
 
Estimated credit-adjusted risk-free interest rate
 
 
 
2.24% 
2.85% 
 
 
 
 
 
2.14% 
2.81% 
 
 
 
Interest Percentage
 
 
 
 
 
 
46.70% 
 
 
 
 
 
 
 
30.00% 
Equity Method Investments, Fair Value Disclosure
 
 
 
 
 
 
 
 
 
 
 
 
72.5 
 
 
Percent ownership interest after transaction
 
 
 
 
 
 
 
79.00% 
 
 
 
 
 
 
 
Long term accounts notes and loans receivable net noncurrent
 
 
 
17.4 
19.3 
120.0 
 
 
10.0 
10.0 
 
 
 
 
 
Impairment of equity method investment
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 365.4 
 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value Of Assets And Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Assets:
 
 
Cash equivalents
$ 135.0 
$ 100.0 
Derivative assets
53.3 
62.4 
Marketable Securities
30.0 
27.0 
Foreign exchange contracts
13.1 
16.2 
Total
231.4 
205.6 
Liabilities:
 
 
Derivative liabilities
6.8 
11.3 
Foreign exchange contracts
8.5 
1.9 
Total
15.3 
13.2 
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member]
 
 
Assets:
 
 
Cash equivalents
135.0 
100.0 
Derivative assets
   
   
Marketable Securities
30.0 
27.0 
Foreign exchange contracts
   
   
Total
165.0 
127.0 
Liabilities:
 
 
Derivative liabilities
   
   
Foreign exchange contracts
   
   
Total
   
   
Significant Other Observable Inputs (Level 2) [Member]
 
 
Assets:
 
 
Cash equivalents
   
   
Derivative assets
   
   
Marketable Securities
   
   
Foreign exchange contracts
13.1 
16.2 
Total
13.1 
16.2 
Liabilities:
 
 
Derivative liabilities
   
   
Foreign exchange contracts
8.5 
1.9 
Total
8.5 
1.9 
Significant Unobservable Inputs (Level 3) [Member]
 
 
Assets:
 
 
Cash equivalents
   
   
Derivative assets
53.3 
62.4 
Marketable Securities
   
   
Foreign exchange contracts
   
   
Total
53.3 
62.4 
Liabilities:
 
 
Derivative liabilities
6.8 
11.3 
Foreign exchange contracts
   
   
Total
$ 6.8 
$ 11.3 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule Of Quantitative Inputs And Assumptions For Level 3 Assets And Liabilities) (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative asset, fair value
$ 66,400,000 
$ 78,600,000 
Derivative liability, fair value
15,300,000 
13,200,000 
Management Estimate of 62% Fe
62.00% 
 
Not Designated as Hedging Instrument [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative asset, fair value
53,300,000 
62,400,000 
Derivative liability, fair value
6,800,000 
11,300,000 
Significant Unobservable Inputs (Level 3) [Member] |
Not Designated as Hedging Instrument [Member] |
Managements Estimate Of 62% Fee [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Management Estimate of 62% Fe
62.00% 
 
Significant Unobservable Inputs (Level 3) [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach [Member] |
Provisional Pricing Arrangements [Member] |
Managements Estimate Of 62% Fee [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value measurement with unobservable inputs derivative asset range
137 
 
Significant Unobservable Inputs (Level 3) [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach [Member] |
Provisional Pricing Arrangements [Member] |
Managements Estimate Of 62% Fee [Member] |
Derivative Financial Instruments Current Assets [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative asset, fair value
3,900,000 
3,500,000 
Significant Unobservable Inputs (Level 3) [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach [Member] |
Provisional Pricing Arrangements [Member] |
Managements Estimate Of 62% Fee [Member] |
Other Current Liabilities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative liability, fair value
6,800,000 
11,300,000 
Significant Unobservable Inputs (Level 3) [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach [Member] |
Customer Supply Agreement [Member] |
Hot-Rolled Steel Estimate [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative liability, fair value
   
   
Fair value measurement with unobservable inputs derivative asset range
630 
 
Significant Unobservable Inputs (Level 3) [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach [Member] |
Customer Supply Agreement [Member] |
Hot-Rolled Steel Estimate [Member] |
Derivative Financial Instruments Current Assets [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative asset, fair value
49,400,000 
58,900,000 
Significant Unobservable Inputs (Level 3) [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach [Member] |
Customer Supply Agreement [Member] |
Hot-Rolled Steel Estimate [Member] |
Minimum [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value measurement with unobservable inputs derivative asset range
600 
 
Significant Unobservable Inputs (Level 3) [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach [Member] |
Customer Supply Agreement [Member] |
Hot-Rolled Steel Estimate [Member] |
Maximum [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value measurement with unobservable inputs derivative asset range
$ 645 
 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, Assets and Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
 
 
Beginning balance - January 1
$ 62.4 
$ 157.9 
Total gains
 
 
Included in earnings
28.0 
43.3 
Included in other comprehensive income
Settlements
(37.1)
(132.0)
Transfers into Level 3
Transfers out of Level 3
Ending balance - December 31
53.3 
69.2 
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) on assets (liabilities) still held at the reporting date
28.0 
43.3 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
 
 
Beginning balance - January 1
(11.3)
(19.5)
Total gains
 
 
Included in earnings
(6.8)
(1.1)
Included in other comprehensive income
Settlements
11.3 
19.5 
Transfers into Level 3
Transfers out of Level 3
Ending balance - December 31
(6.8)
(1.1)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) on assets (liabilities) still held at the reporting date
$ (6.8)
$ (1.1)
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Value And Fair Value Of Financial Instruments Disclosure) (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Long-term debt:
 
 
Long-term debt, face amount
$ 4,650,000,000 
$ 5,497,100,000 
Total long-term debt, carrying value
3,433,000,000 
3,960,700,000 
Term Loan - $1.25 Billion [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Term Loan Original Amount
1,250,000,000 
Long-term debt:
 
 
Long-term debt, face amount
 
847,100,000 
Senior Notes - $700 Million [Member]
 
 
Long-term debt:
 
 
Long-term debt, face amount
700,000,000 
700,000,000 
Senior Notes - $1.3 Billion [Member]
 
 
Long-term debt:
 
 
Long-term debt, face amount
1,300,000,000.0 
1,300,000,000.0 
Senior Notes - $400 Million [Member]
 
 
Long-term debt:
 
 
Long-term debt, face amount
400,000,000 
400,000,000 
Senior Notes - $500 Million [Member]
 
 
Long-term debt:
 
 
Long-term debt, face amount
500,000,000.0 
500,000,000.0 
Revolving Loan [Member]
 
 
Long-term debt:
 
 
Long-term debt, face amount
1,750,000,000.00 
1,750,000,000.00 
Revolving loan, carrying value
550,000,000 1
325,000,000 1
Significant Other Observable Inputs (Level 2) [Member] |
Carrying Value [Member]
 
 
Receivables:
 
 
Receivables, carrying value
44,600,000 
52,500,000 
Long-term debt:
 
 
Total long-term debt, carrying value
3,433,000,000 
3,960,700,000 
Significant Other Observable Inputs (Level 2) [Member] |
Carrying Value [Member] |
Customer Supplemental Payments [Member]
 
 
Receivables:
 
 
Receivables, carrying value
16,700,000 
22,300,000 
Significant Other Observable Inputs (Level 2) [Member] |
Carrying Value [Member] |
ArcelorMittal USA - Receivable [Member]
 
 
Receivables:
 
 
Receivables, carrying value
17,400,000 
19,300,000 
Significant Other Observable Inputs (Level 2) [Member] |
Carrying Value [Member] |
Other Credit Receivable [Member]
 
 
Receivables:
 
 
Receivables, carrying value
10,500,000 
10,900,000 
Significant Other Observable Inputs (Level 2) [Member] |
Fair Value [Member]
 
 
Receivables:
 
 
Receivables, fair value
45,700,000 
53,500,000 
Long-term debt:
 
 
Total long-term debt, fair value
3,801,100,000 
4,354,800,000 
Significant Other Observable Inputs (Level 2) [Member] |
Fair Value [Member] |
Customer Supplemental Payments [Member]
 
 
Receivables:
 
 
Receivables, fair value
16,100,000 
21,300,000 
Significant Other Observable Inputs (Level 2) [Member] |
Fair Value [Member] |
ArcelorMittal USA - Receivable [Member]
 
 
Receivables:
 
 
Receivables, fair value
19,100,000 
21,300,000 
Significant Other Observable Inputs (Level 2) [Member] |
Fair Value [Member] |
Other Credit Receivable [Member]
 
 
Receivables:
 
 
Receivables, fair value
10,500,000 
10,900,000 
Significant Other Observable Inputs (Level 2) [Member] |
Term Loan - $1.25 Billion [Member] |
Carrying Value [Member]
 
 
Long-term debt:
 
 
Term loan, carrying value
753,000,000 
Significant Other Observable Inputs (Level 2) [Member] |
Term Loan - $1.25 Billion [Member] |
Fair Value [Member]
 
 
Long-term debt:
 
 
Term loan, fair value
753,000,000 
Significant Other Observable Inputs (Level 2) [Member] |
Senior Notes - $700 Million [Member] |
Carrying Value [Member]
 
 
Long-term debt:
 
 
Senior notes, carrying value
699,400,000 
699,400,000 
Significant Other Observable Inputs (Level 2) [Member] |
Senior Notes - $700 Million [Member] |
Fair Value [Member]
 
 
Long-term debt:
 
 
Senior notes, fair value
751,400,000 
759,400,000 
Significant Other Observable Inputs (Level 2) [Member] |
Senior Notes - $1.3 Billion [Member] |
Carrying Value [Member]
 
 
Long-term debt:
 
 
Senior notes, carrying value
1,289,400,000 
1,289,400,000 
Significant Other Observable Inputs (Level 2) [Member] |
Senior Notes - $1.3 Billion [Member] |
Fair Value [Member]
 
 
Long-term debt:
 
 
Senior notes, fair value
1,513,200,000 
1,524,700,000 
Significant Other Observable Inputs (Level 2) [Member] |
Senior Notes - $400 Million [Member] |
Carrying Value [Member]
 
 
Long-term debt:
 
 
Senior notes, carrying value
398,300,000 
398,200,000 
Significant Other Observable Inputs (Level 2) [Member] |
Senior Notes - $400 Million [Member] |
Fair Value [Member]
 
 
Long-term debt:
 
 
Senior notes, fair value
458,800,000 
464,300,000 
Significant Other Observable Inputs (Level 2) [Member] |
Senior Notes - $500 Million [Member] |
Carrying Value [Member]
 
 
Long-term debt:
 
 
Senior notes, carrying value
495,900,000 
495,700,000.0 
Significant Other Observable Inputs (Level 2) [Member] |
Senior Notes - $500 Million [Member] |
Fair Value [Member]
 
 
Long-term debt:
 
 
Senior notes, fair value
527,700,000 
528,400,000.0 
Significant Other Observable Inputs (Level 2) [Member] |
Revolving Loan [Member] |
Carrying Value [Member]
 
 
Long-term debt:
 
 
Revolving loan, carrying value
550,000,000 
325,000,000 
Significant Other Observable Inputs (Level 2) [Member] |
Revolving Loan [Member] |
Fair Value [Member]
 
 
Long-term debt:
 
 
Revolving loan, fair value
$ 550,000,000 
$ 325,000,000 
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS (Impairment Charges on Financial and Nonfinancial Assets) (Details) (Amapa [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
ASSETS:
 
Equity Method Investments, Fair Value Disclosure
$ 72.5 
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member]
 
ASSETS:
 
Equity Method Investments, Fair Value Disclosure
Significant Other Observable Inputs (Level 2) [Member]
 
ASSETS:
 
Equity Method Investments, Fair Value Disclosure
Significant Unobservable Inputs (Level 3) [Member]
 
ASSETS:
 
Equity Method Investments, Fair Value Disclosure
72.5 
Equity Method Investments [Member]
 
ASSETS:
 
Impairment of equity method investment
$ 365.4 
DEBT AND CREDIT FACILITIES (Narrative) (Details)
3 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2013
USD ($)
Dec. 31, 2012
USD ($)
Mar. 31, 2013
Term Loan [Member]
USD ($)
Dec. 31, 2012
Unsecured Credit Facility [Member]
Quarter
Mar. 31, 2013
Revolving Loan [Member]
USD ($)
Dec. 31, 2012
Revolving Loan [Member]
USD ($)
Mar. 31, 2013
Revolving Loan [Member]
Maximum [Member]
Mar. 31, 2013
Letter of Credit [Member]
USD ($)
Mar. 31, 2013
Senior Notes - $500 Million [Member]
USD ($)
Dec. 31, 2012
Senior Notes - $500 Million [Member]
USD ($)
Dec. 31, 2012
$270 Million Senior Notes [Member]
USD ($)
Mar. 31, 2013
10-year Tranche - $700 million 4.88% Senior Notes due 2021 [Member]
USD ($)
Dec. 31, 2012
10-year Tranche - $700 million 4.88% Senior Notes due 2021 [Member]
USD ($)
Mar. 31, 2013
10-year Tranche - $500 million 4.80% Senior Notes due 2020 [Member]
USD ($)
Dec. 31, 2012
10-year Tranche - $500 million 4.80% Senior Notes due 2020 [Member]
USD ($)
Mar. 31, 2013
$800 Million 6.25% 2040 Senior Notes [Member]
USD ($)
Dec. 31, 2012
$800 Million 6.25% 2040 Senior Notes [Member]
USD ($)
Mar. 31, 2013
$400 Million 5.90% 2020 Senior Notes [Member]
USD ($)
Dec. 31, 2012
$400 Million 5.90% 2020 Senior Notes [Member]
USD ($)
Mar. 31, 2013
Term Loan - $1.25 Billion [Member]
USD ($)
Dec. 31, 2012
Term Loan - $1.25 Billion [Member]
USD ($)
Mar. 31, 2013
Bank Contingent Instrument Facility and Cash Advance Facility [Member]
USD ($)
Mar. 31, 2013
Bank Contingent Instrument Facility and Cash Advance Facility [Member]
AUD ($)
Dec. 31, 2012
Bank Contingent Instrument Facility and Cash Advance Facility [Member]
USD ($)
Dec. 31, 2012
Bank Contingent Instrument Facility and Cash Advance Facility [Member]
AUD ($)
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term Loan Original Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 1,250,000,000 
 
 
 
 
Long-term Debt, Gross
3,433,000,000 
4,054,800,000 
 
 
 
 
 
 
495,900,000 1
495,700,000 1
 
699,400,000 
699,400,000 2
499,200,000 3
499,200,000 3
790,200,000 4
790,200,000 4
398,300,000 5
398,200,000 5
 
847,100,000 6
 
 
 
 
Revolving credit facility, borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
41,700,000 
40,000,000 
41,600,000 
 
Financial covenant, debt to earnings ratio
 
 
 
3.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
4,650,000,000 
5,497,100,000 
 
 
1,750,000,000.00 
1,750,000,000.00 
 
 
500,000,000.0 
500,000,000.0 
270,000,000 
700,000,000 
700,000,000 
500,000,000 
500,000,000 
800,000,000 
800,000,000 
400,000,000 
400,000,000 
 
847,100,000 
 
 
 
 
Number of preceding quarters to calculate financial covenant
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial covenant, interest coverage ratio
 
 
 
2.50 
2.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Extinguishment of Debt, Amount
 
 
847,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Finance Costs, Net
 
 
7,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stated interest rate
 
 
 
 
 
 
 
 
3.95% 
 
 
4.875% 
 
4.80% 
 
6.25% 
 
5.90% 
 
 
 
 
 
 
 
Credit facility, amount outstanding
 
 
 
 
550,000,000 7
325,000,000 7
 
27,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
35,400,000 
34,000,000 
26,000,000 
25,000,000 
Credit facility remaining capacity
 
 
 
 
1,200,000,000 
1,400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,300,000 
6,000,000 
15,600,000 
15,000,000 
Letters of credit outstanding
95,000,000 
96,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Unamortized Discount
 
 
 
 
 
 
 
 
4,100,000 
4,300,000 
 
600,000 
 
800,000 
 
9,800,000 
 
1,700,000 
1,800,000 
 
 
 
 
 
 
Debt Instrument, Minimum Tangible Net Worth Required Under Agreement, as of the End of Each Fiscal Quarter in the Next Fiscal Year
 
 
 
 
 
$ 4,600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Maximum Total Funded Debt to Capitalization Required Until the End of the Next Fiscal Year End
 
 
 
 
52.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potential Increase in Borrowing Costs on Outstanding Borrowings
 
 
 
 
 
 
0.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potential Increase in Borrowing Costs on Unused Borrowing Capacity
 
 
 
 
0.10% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEBT AND CREDIT FACILITIES (Schedule Of Long-Term Debt) (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Total Face Amount
$ 4,650,000,000 
$ 5,497,100,000 
Long-term Debt, Gross
3,433,000,000 
4,054,800,000 
Current portion of long-term debt
94,100,000 
Long-term debt noncurrent portion
3,433,000,000 
3,960,700,000 
$1.25 Billion Term Loan [Member]
 
 
Debt Instrument [Line Items]
 
 
Type
 
Variable 
Final Maturity
 
2016 
Total Face Amount
 
847,100,000 
Long-term Debt, Gross
 
847,100,000 1
Total amounts paid down on original loan
 
402,800,000 
Term Loan Original Amount
1,250,000,000 
Current portion of long-term debt
 
94,100,000 
Imputed interest rate
 
1.83% 
$700 million 4.875% 2021 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Stated interest rate
4.875% 
 
Type
Fixed 
Fixed 
Final Maturity
2021 
2021 
Total Face Amount
700,000,000 
700,000,000 
Long-term Debt, Gross
699,400,000 
699,400,000 2
Debt Instrument, Unamortized Discount
600,000 
 
Imputed interest rate
4.89% 
4.88% 
$500 million 4.80% 2020 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Stated interest rate
4.80% 
 
Type
Fixed 
Fixed 
Final Maturity
2020 
2020 
Total Face Amount
500,000,000 
500,000,000 
Long-term Debt, Gross
499,200,000 3
499,200,000 3
Debt Instrument, Unamortized Discount
800,000 
 
Imputed interest rate
4.83% 
4.80% 
$800 Million 6.25% 2040 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Stated interest rate
6.25% 
 
Type
Fixed 
Fixed 
Final Maturity
2040 
2040 
Total Face Amount
800,000,000 
800,000,000 
Long-term Debt, Gross
790,200,000 4
790,200,000 4
Debt Instrument, Unamortized Discount
9,800,000 
 
Imputed interest rate
6.34% 
6.25% 
$400 Million 5.90% 2020 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Stated interest rate
5.90% 
 
Type
Fixed 
Fixed 
Final Maturity
2020 
2020 
Total Face Amount
400,000,000 
400,000,000 
Long-term Debt, Gross
398,300,000 5
398,200,000 5
Debt Instrument, Unamortized Discount
1,700,000 
1,800,000 
Imputed interest rate
5.98% 
5.90% 
Series 2008A - Tranche A [Member]
 
 
Debt Instrument [Line Items]
 
 
Total Face Amount
 
270,000,000 
$500 Million 3.95% 2018 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Stated interest rate
3.95% 
 
Type
Fixed 
Fixed 
Final Maturity
2018 
2018 
Total Face Amount
500,000,000.0 
500,000,000.0 
Long-term Debt, Gross
495,900,000 6
495,700,000 6
Debt Instrument, Unamortized Discount
4,100,000 
4,300,000 
Imputed interest rate
4.14% 
4.14% 
Revolving Loan [Member]
 
 
Debt Instrument [Line Items]
 
 
Type
Variable 
Variable 
Final Maturity
2017 
2017 
Total Face Amount
1,750,000,000.00 
1,750,000,000.00 
Imputed interest rate
2.65% 
2.02% 
Credit facility, amount outstanding
550,000,000 7
325,000,000 7
Credit facility remaining capacity
1,200,000,000 
1,400,000,000 
Letter of Credit [Member]
 
 
Debt Instrument [Line Items]
 
 
Credit facility, amount outstanding
$ 27,700,000 
 
DEBT AND CREDIT FACILITIES DEBT AND CREDIT FACILITIES (Schedule of Debt Maturities) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Debt Disclosure [Abstract]
 
Debt Maturities Remainder 2013
$ 0 
Debt Maturities 2014
Debt Maturities 2015
Debt Maturities 2016
Debt Maturities 2017
Debt Maturities 2018 and After
2,900.0 
Long-term Debt, Maturities, Total
$ 2,900.0 
LEASE OBLIGATIONS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Leases [Abstract]
 
 
Operating lease expense
$ 6.8 
$ 6.3 
Total minimum capital lease payments
353.3 
 
Total minimum operating lease payments
$ 88.5 
 
LEASE OBLIGATIONS (Future Minimum Lease Payments) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Capital Leases
 
2013
$ 56.8 
2014
69.5 
2015
58.2 
2016
42.2 
2017
34.8 
2018 and thereafter
91.8 
Total minimum lease payments
353.3 
Amounts representing interest
76.7 
Present value of net minimum lease payments
276.6 1
Operating Leases
 
2013
18.8 
2014
19.7 
2015
13.0 
2016
8.1 
2017
7.4 
2018 and thereafter
21.5 
Total minimum lease payments
88.5 
Other Current Liabilities [Member]
 
Capital Leases
 
Present value of net minimum lease payments
53.5 
Other Liabilities [Member]
 
Capital Leases
 
Present value of net minimum lease payments
$ 223.1 
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2013
LTV Steel Mining Company [Member]
Facility
Mar. 31, 2013
U.S. Iron Ore [Member]
Facility
Mar. 31, 2013
Eastern Canadian Iron Ore [Member]
Facility
Mar. 31, 2013
Asia Pacific Iron Ore [Member]
Facility
Mar. 31, 2013
North American Coal [Member]
Facility
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
Total environmental and mine closure obligations
$ 252.4 
$ 265.1 
 
 
 
 
 
Environmental remediation
15.4 
15.7 
 
 
 
 
 
Mine Reclamation and Closing Liability, current and noncurrent
$ 237.0 
$ 249.4 
 
 
 
 
 
Mine closure obligation, number of mines (in number of facilities)
 
 
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS (Summary Of Mine Closure Obligations) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Loss Contingencies [Line Items]
 
 
Environmental
$ 15.4 
$ 15.7 
Mine Reclamation and Closing Liability, current and noncurrent
237.0 
249.4 
Total environmental and mine closure obligations
252.4 
265.1 
Less current portion
12.0 
12.3 
Long term environmental and mine closure obligations
240.4 
252.8 
Previously Owned Or Operating Facilities [Member] |
LTV Steel Mining Company [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine closure
18.7 
18.3 
Owned Or Operating Facilities [Member] |
U.S. Iron Ore [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine closure
83.1 
81.2 
Owned Or Operating Facilities [Member] |
Eastern Canadian Iron Ore [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine closure
73.4 
88.9 
Owned Or Operating Facilities [Member] |
Asia Pacific Iron Ore [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine closure
22.7 
22.4 
Owned Or Operating Facilities [Member] |
North American Coal [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine closure
$ 39.1 
$ 38.6 
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS (Asset Retirement Obligation Disclosure) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Asset Retirement Obligation [Roll Forward]
 
 
Asset retirement obligation at beginning of period
$ 231.1 
$ 194.9 
Accretion expense
4.5 
17.6 
Exchange rate changes
   
0.3 
Revision in estimated cash flows
(17.2)
18.2 
Payments
(0.1)
0.1 
Asset retirement obligation at end of period
$ 218.3 
$ 231.1 
PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Pension Plans, Defined Benefit [Member]
 
 
Definted Benefit Plan Disclosure [Line Items]
 
 
Pension Contributions
$ 3.7 
$ 14.4 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
Definted Benefit Plan Disclosure [Line Items]
 
 
Other Postretirement Benefit Expense
$ 14.1 
$ 21.9 
PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Estimated Net Periodic Benefit Cost) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Pension Plans, Defined Benefit [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Service Cost
$ 9.9 
$ 8.0 
Defined Benefit Plan, Interest Cost
11.5 
12.0 
Defined Benefit Plan, Expected Return on Plan Assets
(13.1)
(14.8)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)
0.7 
1.0 
Defined Benefit Plan, Amortization of Gains (Losses)
6.8 
7.4 
Defined Benefit Plan, Net Periodic Benefit Cost
15.8 
13.6 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Service Cost
3.1 
3.6 
Defined Benefit Plan, Interest Cost
4.3 
5.2 
Defined Benefit Plan, Expected Return on Plan Assets
(5.0)
(4.3)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)
(0.9)
0.7 
Defined Benefit Plan, Amortization of Gains (Losses)
2.8 
2.9 
Defined Benefit Plan, Net Periodic Benefit Cost
$ 4.3 
$ 8.1 
STOCK COMPENSATION PLANS (Narrative) (Details)
3 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Plan Year Agreements
 
ICE Plan and 2012 Equity Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Performance/vesting period
3 years 
 
2012 Equity Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Number of shares granted under the award
1,000,000 
 
Number of performance shares granted
800,000 
 
Number of restricted shares granted
200,000 
 
Number of shares granted
 
23,600 
2012 Equity Plan [Member] |
Maximum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Maximum number of shares that may be issued (in shares)
6,000,000 
 
Two Thousand And Eleven To Two Thousand And Thirteen And The Two Thousand And Twelve To Two Thousand Fourteen and Two Thousand Thirteen to Two Thousand Fifteen Performance Periods [Member] |
ICE Plan and 2012 Equity Plan [Member] |
Minimum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Payout rate, as a percentage of the original grant
0.00% 
 
Two Thousand And Eleven To Two Thousand And Thirteen And The Two Thousand And Twelve To Two Thousand Fourteen and Two Thousand Thirteen to Two Thousand Fifteen Performance Periods [Member] |
ICE Plan and 2012 Equity Plan [Member] |
Maximum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Payout rate, as a percentage of the original grant
200.00% 
 
STOCK COMPENSATION PLANS (Assumptions Utilized To Estimate Fair Value For Performance Share Grants) (Details) (Performance Shares [Member], USD $)
3 Months Ended
Mar. 31, 2013
Performance Shares [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Grant Date Market Price
$ 23.83 
Average Expected Term (Years)
2 years 9 months 21 days 
Expected Volatility
52.90% 
Risk-Free Interest Rate
0.40% 
Dividend Yield
2.52% 
Fair Value
$ 17.01 
Fair Value (Percent of Grant Date Market Price)
71.38% 
INCOME TAXES (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Statutory Tax Rate [Line Items]
 
Document Fiscal Year Focus
2013 
Effective Income Tax Rate, Continuing Operations
1.40% 
Discrete Tax Items
$ 7.7 
United States [Member]
 
Statutory Tax Rate [Line Items]
 
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate
35.00% 
CAPITAL STOCK (Details) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 2 Months Ended 3 Months Ended
Mar. 13, 2012
Feb. 21, 2013
Mar. 31, 2013
Feb. 11, 2013
Mar. 31, 2012
Mar. 1, 2013
Dec. 31, 2012
Dec. 3, 2012
Aug. 31, 2012
Jun. 1, 2012
Mar. 1, 2012
Mar. 31, 2013
Minimum [Member]
Mar. 31, 2013
Maximum [Member]
Feb. 21, 2013
Common Shares [Member]
Feb. 21, 2013
Over Allotment Option [Member]
Mar. 31, 2013
Preferred Class A [Member]
Mar. 20, 2013
Preferred Class A [Member]
Feb. 21, 2013
Preferred Class A [Member]
Mar. 31, 2013
Common Stock from when Mandatory Convertible Preferred Stock Converts on February 1, 2016 [Member]
Mar. 31, 2013
Depositary Share [Member]
Mar. 20, 2013
Depositary Share [Member]
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depositary Shares Issued During Period, New Issues
 
29,250,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depositary Share Offering included in Depositary Share Issuance
 
27,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Shares included in Depositary Share Issuance due to Exercise of
 
2,250,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depositary Share Interest in a Share of 7% Series A Mandatory Convertible Preferred Stock, Class A
 
 
0.025 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Series A Mandatory Convertible Preferred Stock, Class A, Percentage
 
 
0.07 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock, Liquidation Preference Per Share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,000 
 
 
 
 
 
Depositary Share Liquidation Preference per Share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 25 
 
Number of Common Shares each Share of Manadatory Convertible Stock Converts to on February 1, 2016
 
 
 
 
 
 
 
 
 
 
 
28.1480 
34.4840 
 
 
 
 
 
 
 
 
Number of Depositary Shares each Share of Manadatory Convertible Stock Converts to on February 1, 2016
 
 
 
 
 
 
 
 
 
 
 
0.7037 
 
 
 
 
 
 
 
 
 
Common Stock, Par or Stated Value Per Share
 
 
$ 0.125 
 
 
 
$ 0.125 
 
 
 
 
 
 
 
 
 
 
 
$ 0.125 
 
 
Trading Day Window Determining Number of Common Shares Issuable on Conversion
 
 
20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Common Shares Mandatory Convertible Stock Converts to on February 1, 2016
 
 
 
 
 
 
 
 
 
 
 
20,600,000 
25,200,000 
 
 
 
 
 
 
 
 
Net proceeds from issuance of Series A, Mandatory Convertible Preferred Stock, Class A
 
$ 709.4 
$ 709.4 
 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends payable, per share
 
 
 
 
 
$ 0.15 
 
$ 0.625 
$ 0.625 
$ 0.625 
$ 0.28 
 
 
 
 
 
$ 13.6111 
 
 
 
$ 0.34 
Percentage increase in dividends payable
123.00% 
 
 
76.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of common shares, public offering (in shares)
 
10,350,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares, issued (in shares)
 
 
159,545,469 
 
 
 
149,195,469 
 
 
 
 
 
 
9,000,000 
1,350,000 
 
 
 
 
 
 
Net proceeds from issuance of common shares
 
$ 285.6 
$ 285.6 
 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Closing price per share (in usd per share)
 
$ 29.00 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 25 
 
 
 
SHAREHOLDERS' EQUITY Schedule of Shareholders' Equity (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Dec. 31, 2011
Stockholders' Equity Attributable to Parent
$ 5,704.6 
 
$ 4,632.7 
 
Dividends, Stock
(32.8)
 
 
 
Stockholders' Equity Attributable to Noncontrolling Interest
1,154.4 
 
1,128.2 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
6,859.0 
7,433.9 
5,760.9 
7,039.7 
NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
107.0 
375.8 
 
 
INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
(13.8)
(15.6)
 
 
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
120.8 
391.4 
 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
111.2 
397.5 
 
 
Other Comprehensive Income (Loss), Net of Tax
5.4 
23.2 
 
 
OTHER COMPREHENSIVE INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST
(1.2)
(1.5)
 
 
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest
126.2 
414.6 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
(1.5)
(2.8)
 
 
Dividends, Common Stock
 
(39.7)
 
 
Undistributed Gains To Noncontrolling Interest
 
7.8 
 
 
Capital Contribution By Noncontrolling Interest
11.2 
22.3 
 
 
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests
 
(8.0)
 
 
Cliffs Shareholders Equity [Member]
 
 
 
 
Stockholders' Equity Attributable to Parent
5,704.6 
6,140.0 
4,632.7 
5,785.0 
Dividends, Stock
(32.8)
 
 
 
NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
107.0 
375.8 
 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
4.2 
21.7 
 
 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
111.2 
397.5 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
(1.5)
(2.8)
 
 
Dividends, Common Stock
 
(39.7)
 
 
Undistributed Gains To Noncontrolling Interest
 
 
 
Capital Contribution By Noncontrolling Interest
 
 
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests
 
 
 
Noncontrolling Interest [Member]
 
 
 
 
Dividends, Stock
 
 
 
Stockholders' Equity Attributable to Noncontrolling Interest
1,154.4 
1,293.9 
1,128.2 
1,254.7 
INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
13.8 
15.6 
 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest
1.2 
1.5 
 
 
OTHER COMPREHENSIVE INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST
15.0 
17.1 
 
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
 
 
Dividends, Common Stock
 
 
 
Undistributed Gains To Noncontrolling Interest
 
7.8 
 
 
Capital Contribution By Noncontrolling Interest
11.2 
22.3 
 
 
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests
 
(8.0)
 
 
Common Stock [Member]
 
 
 
 
Stock Issued During Period, Value, New Issues
263.7 
 
 
 
Common Stock [Member] |
Cliffs Shareholders Equity [Member]
 
 
 
 
Stock Issued During Period, Value, New Issues
263.7 
 
 
 
Common Stock [Member] |
Noncontrolling Interest [Member]
 
 
 
 
Stock Issued During Period, Value, New Issues
 
 
 
Preferred Class A [Member]
 
 
 
 
Stock Issued During Period, Value, New Issues
731.3 
 
 
 
Preferred Class A [Member] |
Cliffs Shareholders Equity [Member]
 
 
 
 
Stock Issued During Period, Value, New Issues
731.3 
 
 
 
Preferred Class A [Member] |
Noncontrolling Interest [Member]
 
 
 
 
Stock Issued During Period, Value, New Issues
$ 0 
 
 
 
SHAREHOLDERS' EQUITY Accumulate Other Comprehensive Income (Loss) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Dec. 31, 2011
Accumulated other comprehensive loss
$ (51.4)
 
$ (55.6)
 
Other Comprehensive Income (Loss), Net of Tax
5.4 
23.2 
 
 
Postretirement Benefit Liability [Member]
 
 
 
 
Accumulated other comprehensive loss
(377.4)
(404.2)
(382.7)
(408.9)
Other Comprehensive Income (Loss) before Reclassifications
(1.1)
 
 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
6.4 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
 
4.7 
 
 
Investments Impairment Charge [Member]
 
 
 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
0.1 
 
 
 
Accumulated Net Unrealized Investment Gain (Loss) [Member]
 
 
 
 
Accumulated other comprehensive loss
4.7 
4.9 
2.1 
2.6 
Other Comprehensive Income (Loss) before Reclassifications
2.5 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
 
2.3 
 
 
Foreign Currency Translation Adjustment [Member]
 
 
 
 
Accumulated other comprehensive loss
319.6 
323.4 
316.3 
312.5 
Other Comprehensive Income (Loss) before Reclassifications
3.3 
 
 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
 
Other Comprehensive Income (Loss), Net of Tax
 
10.9 
 
 
Gain (Loss) on Derivatives [Member]
 
 
 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
(2.0)
 
 
 
Unrealized Gain Loss On Derivatives [Member]
 
 
 
 
Accumulated other comprehensive loss
1.7 
5.0 
8.7 
1.2 
Other Comprehensive Income (Loss) before Reclassifications
(5.0)
 
 
 
Other Comprehensive Income (Loss), Net of Tax
 
3.8 
 
 
Accumulated Other Comprehensive Income (Loss) [Member]
 
 
 
 
Accumulated other comprehensive loss
(51.4)
(70.9)
(55.6)
(92.6)
Other Comprehensive Income (Loss) before Reclassifications
(0.3)
 
 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
4.5 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
 
$ 21.7 
 
 
SHAREHOLDERS' EQUITY Details of Accumulated Other Comprehensive Income (Loss) Components (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Details of Accumulated Other Comprehensive Income (Loss) Components [Line Items]
 
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax
$ 9.4 
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss), Tax
(3.0)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
6.4 
Available-for-sale Securities, Gross Realized Gain (Loss)
0.1 
Available-for-sale Securities, Tax on Realized Gain (Loss)
Gain (Loss) on Sale of Securities, Net
0.1 
Amount of gain/(loss) recognized in income on derivative
(2.0)
Gain (Loss) on Derivative Instruments, Net, Pretax
(2.9)
Tax on Derivative Instruments Gain/Loss Reclassified from Accumulated OCI in to Earnings
0.9 
Total Amount Reclassified from Accumulated Other Comprehensive Income (Loss) During the Period
4.5 
Postretirement Benefit Liability [Member]
 
Details of Accumulated Other Comprehensive Income (Loss) Components [Line Items]
 
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)
(0.2)1
Defined Benefit Plan, Amortization of Gains (Losses)
9.6 1
Investments Impairment Charge [Member]
 
Details of Accumulated Other Comprehensive Income (Loss) Components [Line Items]
 
Available-for-sale Securities, Gross Realized Gain (Loss)
0.1 
Australian Hedge Contracts [Member] |
Realized Gain Loss On Derivatives [Member]
 
Details of Accumulated Other Comprehensive Income (Loss) Components [Line Items]
 
Amount of gain/(loss) recognized in income on derivative
(2.6)
Canadian Hedge Contracts [Member] |
Realized Gain Loss On Derivatives [Member]
 
Details of Accumulated Other Comprehensive Income (Loss) Components [Line Items]
 
Amount of gain/(loss) recognized in income on derivative
$ (0.3)
SHAREHOLDERS' EQUITY Narrative (Details)
Mar. 31, 2013
Bloom Lake [Member]
 
Percentage Of Ownership Interests
75.00% 
Tilden [Member]
 
Percentage Of Ownership Interests
85.00% 
Empire [Member]
 
Percentage Of Ownership Interests
79.00% 
RELATED PARTIES (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2013
U.S. Iron Ore [Member]
Facility
Mar. 31, 2013
Eastern Canadian Iron Ore [Member]
Facility
Mar. 31, 2013
Joint Venture Partners [Member]
U.S. Iron Ore [Member]
Facility
Mar. 31, 2013
Joint Venture Partners [Member]
Eastern Canadian Iron Ore [Member]
Facility
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Number of mines (in number of facilities)
 
 
Accounts receivable and derivative assets related parties
$ 119.6 
$ 149.8 
 
 
 
 
Other current liabilities related parties
$ 0 
$ 20.2 
 
 
 
 
RELATED PARTIES (Summary Of Other Ownership Interests) (Details)
Mar. 31, 2013
Empire [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
79.00% 
Tilden [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
85.00% 
Bloom Lake [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
75.00% 
Arcelor Mittal [Member] |
Empire [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
21.00% 
Arcelor Mittal [Member] |
Tilden [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
0.00% 
Arcelor Mittal [Member] |
Hibbing [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
62.30% 
Arcelor Mittal [Member] |
Bloom Lake [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
0.00% 
U. S. Steel Canada [Member] |
Empire [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
0.00% 
U. S. Steel Canada [Member] |
Tilden [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
15.00% 
U. S. Steel Canada [Member] |
Hibbing [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
14.70% 
U. S. Steel Canada [Member] |
Bloom Lake [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
0.00% 
WISCO [Member] |
Empire [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
0.00% 
WISCO [Member] |
Tilden [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
0.00% 
WISCO [Member] |
Hibbing [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
0.00% 
WISCO [Member] |
Bloom Lake [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
25.00% 
Equity Method Investments [Member] |
Hibbing [Member] |
Hibbing [Member]
 
Related Party Transaction [Line Items]
 
Ownership interest, equity method investment
23.00% 1
EARNINGS PER SHARE (Earnings Per Share Computation) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Earnings Per Share [Abstract]
 
 
Income from Discontinued Operations, net of tax
$ 0 
$ 5.5 
NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
107.0 
375.8 
PREFERRED STOCK DIVIDENDS
(9.9)
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS
$ 97.1 
$ 375.8 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
12,900,000 
 
Weighted Average Number of Shares:
 
 
Basic
147,827,000 
142,226,000 
Employee Stock Plans
254,000 
483,000 
Depositary Shares
Diluted
148,081,000 
142,709,000 
Earnings per Common Share Attributable to Cliffs Shareholders - Basic:
 
 
Continuing operations
$ 0.66 
$ 2.60 
Discontinued operations
$ 0.00 
$ 0.04 
Earnings per Common Share Attributable to Cliffs Shareholders - Basic:
$ 0.66 
$ 2.64 
Earnings per Common Share Attributable to Cliffs Shareholders - Diluted:
 
 
Continuing operations
$ 0.66 
$ 2.59 
Discontinued operations
$ 0.00 
$ 0.04 
Earnings per Common Share Attributable to Cliffs Shareholders - Diluted:
$ 0.66 
$ 2.63 
COMMITMENTS AND CONTINGENCIES (Details) (Bloom Lake [Member], USD $)
3 Months Ended
Mar. 31, 2013
Bloom Lake [Member]
 
Related Party Transaction [Line Items]
 
Capital investment committed
$ 1,200,000,000 
Capital expenditures related to commitment
889,000,000 
Capital investment, future payments
$ 311,000,000 
CASH FLOW INFORMATION (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 1, 2013
Dec. 3, 2012
Aug. 31, 2012
Jun. 1, 2012
Mar. 1, 2012
Mar. 20, 2013
Preferred Class A [Member]
Mar. 20, 2013
Depositary Share [Member]
Dividends Payable [Line Items]
 
 
 
 
 
 
 
 
 
Dividends payable, per share
 
 
$ 0.15 
$ 0.625 
$ 0.625 
$ 0.625 
$ 0.28 
$ 13.6111 
$ 0.34 
Preferred stock cash dividend
$ 9.9 
$ 0