CLIFFS NATURAL RESOURCES INC., 10-K filed on 2/16/2012
Annual Report
Document And Entity Information (USD $)
12 Months Ended
Dec. 31, 2011
Feb. 13, 2012
Jun. 30, 2011
Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2011 
 
 
Document Fiscal Year Focus
2011 
 
 
Document Fiscal Period Focus
FY 
 
 
Trading Symbol
clf 
 
 
Entity Registrant Name
CLIFFS NATURAL RESOURCES INC. 
 
 
Entity Central Index Key
0000764065 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
142,013,534 
 
Entity Public Float
 
 
$ 13,430,571,403 
Statements Of Consolidated Financial Position (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
CURRENT ASSETS
 
 
Cash and cash equivalents
$ 521.6 
$ 1,566.7 
Accounts receivable
304.2 
359.1 
Inventories
475.7 
269.2 
Supplies and other inventories
216.9 
148.1 
Deferred and refundable taxes
21.9 
43.2 
Derivative assets
82.1 
82.6 
Other current assets
168.3 
114.8 
TOTAL CURRENT ASSETS
1,790.7 
2,583.7 
PROPERTY, PLANT AND EQUIPMENT, NET
10,524.6 
3,979.2 
OTHER ASSETS
 
 
Investments in ventures
526.6 
514.8 
Goodwill
1,152.1 
196.5 
Intangible assets, net
147.0 
175.8 
Deferred income taxes
209.5 
140.3 
Other non-current assets
191.2 
187.9 
TOTAL OTHER ASSETS
2,226.4 
1,215.3 
TOTAL ASSETS
14,541.7 
7,778.2 
CURRENT LIABILITIES
 
 
Accounts payable
380.3 
266.5 
Accrued employment costs
144.2 
129.9 
Income taxes payable
265.4 
103.4 
State and local taxes payable
59.1 
38.9 
Below-market sales contracts - current
52.7 
57.1 
Current portion of term loan
74.8 
 
Accrued expenses
165.0 
56.5 
Accrued royalties
77.1 
80.2 
Deferred revenue
126.6 
215.6 
Other current liabilities
148.1 
80.6 
TOTAL CURRENT LIABILITIES
1,493.3 
1,028.7 
POSTEMPLOYMENT BENEFIT LIABILITIES
 
 
Pensions
394.7 
284.9 
Other postretirement benefits
271.1 
243.1 
TOTAL POSTEMPLOYMENT BENEFIT LIABILITIES
665.8 
528.0 
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
222.0 
184.9 
DEFERRED INCOME TAXES
1,062.4 
63.7 
LONG-TERM DEBT
3,608.7 
1,713.1 
BELOW-MARKET SALES CONTRACTS
111.8 
164.4 
OTHER LIABILITIES
338.0 
256.7 
TOTAL LIABILITIES
7,502.0 
3,939.5 
CLIFFS SHAREHOLDERS' EQUITY
 
 
Common Shares - par value $0.125 per share Authorized - 400,000,000 shares (2010 - 224,000,000); Issued - 149,195,469 shares (2010 - 138,845,469 shares); Outstanding - 142,021,718 shares (2010 - 135,456,999 shares)
18.5 
17.3 
Capital in excess of par value of shares
1,770.8 
896.3 
Retained earnings
4,424.3 
2,924.1 
Cost of 7,173,751 common shares in treasury (2010 - 3,388,470 shares)
(336.0)
(37.7)
Accumulated other comprehensive income (loss)
(92.6)
45.9 
TOTAL CLIFFS SHAREHOLDERS' EQUITY
5,785.0 
3,845.9 
NONCONTROLLING INTEREST
1,254.7 
(7.2)
TOTAL EQUITY
7,039.7 
3,838.7 
TOTAL LIABILITIES AND EQUITY
$ 14,541.7 
$ 7,778.2 
Statements Of Consolidated Financial Position (Parenthetical) (USD $)
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Preferred Class A [Member]
Dec. 31, 2010
Preferred Class A [Member]
Dec. 31, 2011
Preferred Class B [Member]
Dec. 31, 2010
Preferred Class B [Member]
Preferred stock, no par value
$ 0 
$ 0 
 
 
 
 
Preferred stock - no par value
 
 
3,000,000 
3,000,000 
4,000,000 
4,000,000 
Preferred stock, shares unissued
 
 
3,000,000 
3,000,000 
4,000,000 
4,000,000 
Common shares, par value
$ 0.125 
$ 0.125 
 
 
 
 
Common shares, authorized
400,000,000 
224,000,000 
 
 
 
 
Common shares, issued
149,195,469 
138,845,469 
 
 
 
 
Common shares, outstanding
142,021,718 
135,456,999 
 
 
 
 
Common shares in treasury
7,173,751 
3,388,470 
 
 
 
 
Statements Of Consolidated Operations (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
REVENUES FROM PRODUCT SALES AND SERVICES
 
 
 
Product
$ 6,551.7 
$ 4,416.8 
$ 2,216.2 
Freight and venture partners' cost reimbursements
242.6 
265.3 
125.8 
TOTAL REVENUES
6,794.3 
4,682.1 
2,342.0 
COST OF GOODS SOLD AND OPERATING EXPENSES
(4,105.7)
(3,155.6)
(2,030.3)
SALES MARGIN
2,688.6 
1,526.5 
311.7 
OTHER OPERATING INCOME (EXPENSE)
 
 
 
Selling, general and administrative expenses
(274.4)
(202.1)
(117.6)
Exploration costs
(80.5)
(33.7)
 
Impairment of goodwill
(27.8)
 
 
Consolidated Thompson acquisition costs
(25.4)
 
 
Miscellaneous - net
68.1 
(20.5)
42.0 
TOTAL OTHER OPERATING INCOME (EXPENSE)
(340.0)
(256.3)
(75.6)
OPERATING INCOME
2,348.6 
1,270.2 
236.1 
OTHER INCOME (EXPENSE)
 
 
 
Gain on acquisition of controlling interests
 
40.7 
 
Changes in fair value of foreign currency contracts, net
101.9 
39.8 
85.7 
Interest income
9.5 
9.9 
10.8 
Interest expense
(216.5)
(70.1)
(39.0)
Other non-operating income (expense)
(2.0)
12.5 
2.9 
TOTAL OTHER INCOME (EXPENSE)
(107.1)
32.8 
60.4 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY INCOME (LOSS) FROM VENTURES
2,241.5 
1,303.0 
296.5 
INCOME TAX EXPENSE
(420.1)
(293.5)
(22.5)
EQUITY INCOME (LOSS) FROM VENTURES
9.7 
13.5 
(65.5)
INCOME FROM CONTINUING OPERATIONS
1,831.1 
1,023.0 
208.5 
LOSS FROM DISCONTINUED OPERATIONS, net of tax
(18.5)
(3.1)
(3.4)
NET INCOME
1,812.6 
1,019.9 
205.1 
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
193.5 
 
 
NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$ 1,619.1 
$ 1,019.9 
$ 205.1 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - BASIC
 
 
 
Continuing operations
$ 11.68 
$ 7.56 
$ 1.67 
Discontinued operations
$ (0.13)
$ (0.02)
$ (0.03)
Earnings per common share attributable to Cliffs shareholders - Basic
$ 11.55 
$ 7.54 
$ 1.64 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - DILUTED
 
 
 
Continuing operations
$ 11.61 
$ 7.51 
$ 1.66 
Discontinued operations
$ (0.13)
$ (0.02)
$ (0.03)
Earnings per common share attributable to Cliffs shareholders - Diluted
$ 11.48 
$ 7.49 
$ 1.63 
AVERAGE NUMBER OF SHARES (IN THOUSANDS)
 
 
 
Basic
140,234 
135,301 
124,998 
Diluted
141,012 
136,138 
125,751 
CASH DIVIDENDS DECLARED PER SHARE
$ 0.84 
$ 0.51 
$ 0.26 
Statements Of Consolidated Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Statement of Income and Comprehensive Income [Abstract]
 
 
 
NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$ 1,619.1 
$ 1,019.9 
$ 205.1 
OTHER COMPREHENSIVE INCOME, NET OF TAX
 
 
 
Pension and OPEB liability
(121.4)
14.8 
21.8 
Unrealized net gain (loss) on marketable securities
(31.0)
4.2 
29.5 
Unrealized net gain (loss) on foreign currency translation
(2.2)
151.6 
231.7 
Unrealized net loss on derivative financial instruments
(1.5)
(1.3)
(15.1)
Unrealized gain on interest rate swap
 
 
1.7 
OTHER COMPREHENSIVE INCOME (LOSS)
(156.1)
169.3 
269.6 
LESS: COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE NONCONTROLLING INTEREST
17.6 
(0.8)
2.4 
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$ 1,480.6 
$ 1,188.4 
$ 477.1 
Statements Of Consolidated Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
OPERATING ACTIVITIES
 
 
 
Net income
$ 1,812.6 
$ 1,019.9 
$ 205.1 
Adjustments to reconcile net income to net cash provided (used) by operating activities:
 
 
 
Depreciation, depletion and amortization
426.9 
322.3 
236.6 
Goodwill impairment
27.8 
 
 
Derivatives and currency hedges
(69.0)
(39.0)
(204.5)
Foreign exchange loss (gains)
(6.2)
39.1 
(28.1)
Share-based compensation
13.9 
12.5 
10.1 
Equity (income) loss in ventures (net of tax)
(9.7)
(13.5)
65.5 
Pensions and other postretirement benefits
(26.3)
8.7 
27.3 
Deferred income taxes
(66.6)
15.2 
60.8 
Changes in deferred revenue and below-market sales contracts
(146.0)
39.3 
(33.4)
Gain on acquisition of controlling interests
 
(40.7)
 
Other
(0.1)
9.9 
3.8 
Changes in operating assets and liabilities:
 
 
 
Receivables and other assets
81.4 
(204.6)
(24.2)
Product inventories
(74.5)
61.2 
7.7 
Payables and accrued expenses
324.6 
89.7 
(141.0)
Net cash from operating activities
2,288.8 
1,320.0 
185.7 
INVESTING ACTIVITIES
 
 
 
Acquisition of controlling interests, net of cash acquired
 
(994.5)
 
Net settlements in Canadian dollar foreign exchange contracts
93.1 
 
 
Purchase of property, plant and equipment
(880.7)
(266.9)
(116.3)
Investments in ventures
(5.2)
(191.3)
(81.8)
Investment in marketable securities
 
(6.6)
(14.9)
Redemption of marketable securities
 
32.5 
5.4 
Proceeds from sale of assets
22.4 
59.1 
28.3 
Other investing activities
14.5 
 
 
Net cash used by investing activities
(5,304.4)
(1,367.7)
(179.3)
FINANCING ACTIVITIES
 
 
 
Net proceeds from issuance of common shares
853.7 
 
347.3 
Net proceeds from issuance of senior notes
998.1 
1,388.1 
 
Borrowings on term loan
1,250.0 
 
 
Repayment of term loan
(278.0)
 
 
Borrowings on bridge credit facility
750.0 
 
 
Repayment of bridge credit facility
(750.0)
 
 
Borrowings under revolving credit facility
250.0 
450.0 
279.7 
Repayment under revolving credit facility
(250.0)
(450.0)
(276.4)
Debt issuance costs
(54.8)
 
 
Repayment of 200 million term loan
 
(200.0)
 
Payments under share buyback program
(289.8)
 
 
Common stock dividends
(118.9)
(68.9)
(31.9)
Repayment of other borrowings
(1.0)
(16.7)
(9.7)
Other financing activities
(47.0)
(14.9)
(4.7)
Net cash from financing activities
1,975.1 
1,087.6 
304.3 
EFFECT OF EXCHANGE RATE CHANGES ON CASH
(4.6)
24.1 
13.0 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(1,045.1)
1,064.0 
323.7 
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
1,566.7 
502.7 
179.0 
CASH AND CASH EQUIVALENTS AT END OF YEAR
521.6 
1,566.7 
502.7 
Consolidated Thompson [Member]
 
 
 
INVESTING ACTIVITIES
 
 
 
Acquisition of controlling interests, net of cash acquired
(4,423.5)
 
 
Investment in Consolidated Thompson senior notes
(125.0)
 
 
FINANCING ACTIVITIES
 
 
 
Repayment of Consolidated Thompson convertible debentures
$ (337.2)
 
 
Statements Of Consolidated Changes In Equity (USD $)
In Millions, except Share data, unless otherwise specified
Common Shares [Member]
Capital In Excess of Par Value of Shares [Member]
Retained Earnings [Member]
Common Shares in Treasury [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Non- Controlling Interest [Member]
Total
Beginning Balance at Dec. 31, 2008
$ 16.8 
$ 442.2 
$ 1,799.9 
$ (113.8)
$ (394.6)
$ 3.3 
$ 1,753.8 
Beginning Balance (in shares) at Dec. 31, 2008
113,500,000 
 
 
 
 
 
 
Comprehensive income
 
 
 
 
 
 
 
Net income
 
 
205.1 
 
 
 
205.1 
Other comprehensive income (loss), net of tax
 
 
 
 
 
 
 
Pension and OPEB liability
 
 
 
 
24.2 
(2.4)
21.8 
Unrealized net gain on marketable securities
 
 
 
 
29.5 
 
29.5 
Unrealized net gain on foreign currency translation
 
 
 
 
231.7 
 
231.7 
Unrealized gain on interest rate swap
 
 
 
 
1.7 
 
1.7 
Reclassification of net gains on derivative financial instruments into net income
 
 
 
 
(15.1)
 
(15.1)
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
 
 
 
 
 
(2.4)
474.7 
Purchase of subsidiary shares from noncontrolling interest
 
 
 
 
 
0.1 
0.1 
Undistributed losses to noncontrolling interest
 
 
 
 
 
(7.5)
(7.5)
Capital contribution by noncontrolling interest to subsidiary
 
 
 
 
 
0.7 
0.7 
Equity Offering (in shares)
17,300,000 
 
 
 
 
 
 
Equity Offering (value)
 
254.5 
 
92.8 
 
 
347.3 
Purchase of additional noncontrolling interest
 
(5.4)
 
 
 
 
(5.4)
Stock and other incentive plans (in shares)
200,000 
 
 
 
 
 
 
Stock and other incentive plans
 
4.1 
 
0.9 
 
 
5.0 
Conversion of preferred stock
 
 
 
0.2 
 
 
0.2 
Common stock dividends
 
 
(31.9)
 
 
 
(31.9)
Ending Balance at Dec. 31, 2009
16.8 
695.4 
1,973.1 
(19.9)
(122.6)
(5.8)
2,537.0 
Ending Balance (in shares) at Dec. 31, 2009
131,000,000 
 
 
 
 
 
 
Comprehensive income
 
 
 
 
 
 
 
Net income
 
 
1,019.9 
 
 
 
1,019.9 
Other comprehensive income (loss), net of tax
 
 
 
 
 
 
 
Pension and OPEB liability
 
 
 
 
14.0 
0.8 
14.8 
Unrealized net gain on marketable securities
 
 
 
 
4.2 
 
4.2 
Unrealized net gain on foreign currency translation
 
 
 
 
151.6 
 
151.6 
Reclassification of net gains on derivative financial instruments into net income
 
 
 
 
(3.2)
 
(3.2)
Unrealized gain on derivative instruments
 
 
 
 
1.9 
 
1.9 
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
 
 
 
 
 
0.8 
1,189.2 
Purchase of subsidiary shares from noncontrolling interest
 
 
 
 
 
(0.5)
(0.5)
Undistributed losses to noncontrolling interest
 
 
 
 
 
(4.7)
(4.7)
Capital contribution by noncontrolling interest to subsidiary
 
 
 
 
 
3.0 
3.0 
Purchase of additional noncontrolling interest
 
(1.6)
 
 
 
 
(1.6)
Acquisition of controlling interest (in shares)
4,200,000 
 
 
 
 
 
 
Acquisition of controlling interest
0.5 
172.6 
 
 
 
 
173.1 
Stock and other incentive plans (in shares)
300,000 
 
 
 
 
 
 
Stock and other incentive plans
 
19.4 
 
(7.3)
 
 
12.1 
Common stock dividends
 
 
(68.9)
 
 
 
(68.9)
Other
 
10.5 
 
(10.5)
 
 
 
Ending Balance at Dec. 31, 2010
17.3 
896.3 
2,924.1 
(37.7)
45.9 
(7.2)
3,838.7 
Ending Balance (in shares) at Dec. 31, 2010
135,500,000 
 
 
 
 
 
135,456,999 
Comprehensive income
 
 
 
 
 
 
 
Net income
 
 
1,619.1 
 
 
193.5 
1,812.6 
Other comprehensive income (loss), net of tax
 
 
 
 
 
 
 
Pension and OPEB liability
 
 
 
 
(103.8)
(17.6)
(121.4)
Unrealized net gain on marketable securities
 
 
 
 
(31.0)
 
(31.0)
Unrealized net gain on foreign currency translation
 
 
 
 
(2.2)
 
(2.2)
Reclassification of net gains on derivative financial instruments into net income
 
 
 
 
(3.3)
 
(3.3)
Unrealized gain on derivative instruments
 
 
 
 
1.8 
 
1.8 
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
 
 
 
 
 
175.9 
1,656.5 
Purchase of subsidiary shares from noncontrolling interest
 
 
 
 
 
4.5 
4.5 
Capital contribution by noncontrolling interest to subsidiary
 
0.2 
 
 
 
6.1 
6.3 
Share buyback (in shares)
(4,000,000)
 
 
 
 
 
 
Share buyback
 
 
 
(289.8)
 
 
(289.8)
Equity Offering (in shares)
10,300,000 
 
 
 
 
 
 
Equity Offering (value)
1.2 
852.5 
 
 
 
 
853.7 
Acquisition of controlling interest
 
 
 
 
 
1,075.4 
1,075.4 
Stock and other incentive plans (in shares)
200,000 
 
 
 
 
 
 
Stock and other incentive plans
 
21.8 
 
(8.5)
 
 
13.3 
Common stock dividends
 
 
(118.9)
 
 
 
(118.9)
Ending Balance at Dec. 31, 2011
$ 18.5 
$ 1,770.8 
$ 4,424.3 
$ (336.0)
$ (92.6)
$ 1,254.7 
$ 7,039.7 
Ending Balance (in shares) at Dec. 31, 2011
142,000,000 
 
 
 
 
 
142,021,718 
Statements Of Consolidated Changes In Equity (Parenthetical)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
CASH DIVIDENDS DECLARED PER SHARE
$ 0.84 
$ 0.51 
$ 0.26 
Common Shares [Member]
 
 
 
CASH DIVIDENDS DECLARED PER SHARE
$ 0.84 
$ 0.51 
$ 0.26 
Business Summary And Significant Accounting Policies
Business Summary And Significant Accounting Policies

NOTE 1 — BUSINESS SUMMARY AND SIGNIFICANT ACCOUNTING POLICIES

Business Summary

We are an international mining and natural resources company, a major global iron ore producer and a significant producer of high and low-volatile metallurgical coal. In the U.S., we operate five iron ore mines in Michigan and Minnesota, five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia. We also operate two iron ore mines in Eastern Canada that primarily provide iron ore to the seaborne market for Asian steel producers. Our Asia Pacific operations are comprised of two iron ore mining complexes in Western Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore, and a 45 percent economic interest in Sonoma, a coking and thermal coal mine located in Queensland, Australia. In Latin America, we have a 30 percent interest in Amapá, a Brazilian iron ore project, and in Ontario, Canada we have a major chromite project in the pre-feasibility stage of exploration. In addition, our Global Exploration Group is focused on early involvement in exploration activities to identify new world-class projects for future development or projects that add significant value to existing operations. Our Company's operations are organized according to product category and geographic location: U.S. Iron Ore, Eastern Canadian Iron Ore, North American Coal, Asia Pacific Iron Ore, Asia Pacific Coal, Latin American Iron Ore, Ferroalloys, and our Global Exploration Group.

Accounting Policies

We consider the following policies to be beneficial in understanding the judgments that are involved in the preparation of our consolidated financial statements and the uncertainties that could impact our financial condition, results of operations and cash flows.

Use of Estimates

The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from estimates. On an ongoing basis, management reviews estimates. Changes in facts and circumstances may alter such estimates and affect results of operations and financial position in future periods.

Basis of Consolidation

The consolidated financial statements include our accounts and the accounts of our wholly owned and majority-owned subsidiaries, including the following subsidiaries:

 

Name

  

Location

   Ownership Interest     Operation  

Northshore

   Minnesota      100.0     Iron Ore   

United Taconite

   Minnesota      100.0     Iron Ore   

Wabush

   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   

Freewest

   Ontario, Canada      100.0     Chromite   

Spider

   Ontario, Canada      100.0     Chromite   

Intercompany transactions and balances are eliminated upon consolidation.

 

On May 12, 2011, we acquired all of the outstanding common shares of Consolidated Thompson for C$17.25 per share in an all-cash transaction, including net debt. The consolidated financial statements as of and for the year ended December 31, 2011 reflect our 100 percent interest in Consolidated Thompson since that date. Refer to NOTE 4 — ACQUISITIONS AND OTHER INVESTMENTS for further information.

Inventories

The following table presents the detail of our Inventories in the Statements of Consolidated Financial Position at December 31, 2011 and 2010:

 

     (In Millions)  
     2011      2010  

Segment

   Finished
Goods
     Work-in
Process
     Total
Inventory
     Finished
Goods
     Work-in
Process
     Total
Inventory
 

U.S. Iron Ore

   $ 100.2       $ 8.5       $ 108.7       $ 101.1       $ 9.7       $ 110.8   

Eastern Canadian Iron Ore

     96.2         43.0         139.2         43.5         21.2         64.7   

North American Coal

     19.7         110.5         130.2         16.1         19.8         35.9   

Asia Pacific Iron Ore

     57.2         21.6         78.8         34.7         20.4         55.1   

Other

     18.0         0.8         18.8         2.6         0.1         2.7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 291.3       $ 184.4       $ 475.7       $ 198.0       $ 71.2       $ 269.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

U.S. Iron Ore

U.S. Iron Ore product inventories are stated at the lower of cost or market. Cost of iron ore inventories is determined using the LIFO method. The excess of current cost over LIFO cost of iron ore inventories was $117.1 million and $112.4 million at December 31, 2011 and 2010, respectively. As of December 31, 2011, the product inventory balance for U.S. Iron Ore declined, resulting in liquidation of LIFO layers in 2011. The effect of the inventory reduction was a decrease in Cost of goods sold and operating expenses of $15.2 million in the Statements of Consolidated Operations for the year ended December 31, 2011. As of December 31, 2010, the product inventory balance for U.S. Iron Ore declined, resulting in liquidation of LIFO layers in 2010. The effect of the inventory reduction was a decrease in Cost of goods sold and operating expenses of $4.6 in the Statements of Consolidated Operations for the year ended December 31, 2010.

We had approximately 1.2 million tons and 0.8 million tons of finished goods stored at ports and customer facilities on the lower Great Lakes to service customers at December 31, 2011 and 2010, respectively. We maintain ownership of the inventories until title has transferred to the customer, usually when payment is made. Maintaining ownership of the iron ore products at ports on the lower Great Lakes reduces risk of non-payment by customers, as we retain title to the product until payment is received from the customer. We track the movement of the inventory and verify the quantities on hand.

Eastern Canadian Iron Ore

Iron ore pellet inventories are stated at the lower of cost or market. Similar to U.S. Iron Ore product inventories, the cost is determined using the LIFO method. The excess of current cost over LIFO cost of iron ore inventories was $21.9 million and $2.5 million at December 31, 2011 and 2010, respectively. As of December 31, 2011, the iron ore pellet inventory balance for Eastern Canadian Iron Ore increased to $47.1 million, resulting in an additional LIFO layer being added. As of December 31, 2010, the product inventory balance for Eastern Canadian Iron Ore increased to $43.5 million, resulting in an additional LIFO layer being added during the year. We primarily maintain ownership of these inventories until loading of the product at the port.

Iron ore concentrate inventories are stated at the lower of cost or market. The cost of iron ore concentrate inventories is determined using weighted average cost. As of December 31, 2011, the iron ore concentrate inventory balance for Eastern Canadian Iron Ore was $49.1 million as a result of the Consolidated Thompson acquisition. For the majority of the iron ore concentrate inventories, we maintain ownership of the inventories until title passes on the bill of lading date, which is upon the loading of the product at the port.

North American Coal

North American Coal product inventories are stated at the lower of cost or market. Cost of coal inventories includes labor, supplies and operating overhead and related costs and is calculated using the average production cost. We maintain ownership until coal is loaded into rail cars at the mine for domestic sales and until loaded in the vessels at the terminal for export sales. We recorded lower-of-cost-or-market inventory charges of $6.6 million and $26.1 million in Cost of goods sold and operating expenses in the Statements of Consolidated Operations for the years ended December 31, 2011 and 2010, respectively. These charges were a result of operational and geological issues at our Pinnacle and Oak Grove mines during the periods.

Asia Pacific Iron Ore

Asia Pacific Iron Ore product inventories are stated at the lower of cost or market. Costs, including an appropriate portion of fixed and variable overhead expenses, are assigned to the inventory on hand by the method most appropriate to each particular class of inventory, with the majority being valued on a weighted average basis. We maintain ownership of the inventories until title has transferred to the customer at the F.O.B. point, which is generally when the product is loaded into the vessel.

 

 

Capitalized Stripping Costs

Stripping costs during the development of a mine, before production begins, are capitalized as a part of the depreciable cost of building, developing and constructing a mine. These capitalized costs are amortized over the productive life of the mine using the units of production method. The productive phase of a mine is deemed to have begun when saleable minerals are extracted (produced) from an ore body, regardless of the level of production. The production phase does not commence with the removal of de minimis saleable mineral material that occurs in conjunction with the removal of overburden or waste material for purposes of obtaining access to an ore body. The stripping costs incurred in the production phase of a mine are variable production costs included in the costs of the inventory produced (extracted) during the period that the stripping costs are incurred.

Stripping costs related to expansion of a mining asset of proven and probable reserves are variable production costs that are included in the costs of the inventory produced during the period that the stripping costs are incurred.

 

Environmental Remediation Costs

We have a formal policy for environmental protection and restoration. Our mining and exploration activities are subject to various laws and regulations governing protection of the environment. We conduct our operations to protect the public health and environment and believe our operations are in compliance with applicable laws and regulations in all material respects. Our environmental liabilities, including obligations for known environmental remediation exposures at active and closed mining operations and other sites, have been recognized based on the estimated cost of investigation and remediation at each site. If the cost only can be estimated as a range of possible amounts with no specific amount being more likely, the minimum of the range is accrued. Future expenditures are not discounted unless the amount and timing of the cash disbursements reasonably can be estimated. It is possible that additional environmental obligations could be incurred, the extent of which cannot be assessed. Potential insurance recoveries have not been reflected in the determination of the liabilities. See NOTE 9 — ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS 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, North American Coal, Asia Pacific Iron Ore, Asia Pacific 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 North American Coal segment is comprised of our five 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. The Asia Pacific Iron Ore segment is located in Western Australia and provides iron ore to steel producers in China and Japan. There are no intersegment revenues.

The Asia Pacific Coal operating segment is comprised of our 45 percent economic interest in Sonoma, located in Queensland, Australia. The Latin American Iron Ore operating segment is comprised of our 30 percent Amapá interest in Brazil. The Ferroalloys operating segment is comprised of our interests in chromite deposits held by Freewest and Spider in Northern Ontario, Canada and the Global Exploration Group is focused on early involvement in exploration activities to identify new world-class projects for future development or projects that add significant value to existing operations. The Asia Pacific Coal, Latin American Iron Ore, Ferroalloys and Global Exploration Group operating segments do not meet reportable segment disclosure requirements and therefore are not separately reported.

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 years ended December 31, 2011, 2010 and 2009, including a reconciliation of segment sales margin to Income from Continuing Operations Before Income Taxes and Equity Income (Loss) from Ventures:

 

 

Included in the consolidated financial statements are the following amounts relating to geographic locations:

 

     (In Millions)  
     2011      2010      2009  

Revenue (1)

        

United States

   $ 2,774.1       $ 1,966.3       $ 1,049.5   

China

     2,123.4         1,262.0         711.5   

Canada

     914.3         696.5         236.6   

Japan

     460.4         311.1         157.4   

Other countries

     522.1         446.2         187.0   
  

 

 

    

 

 

    

 

 

 

Total revenue

   $ 6,794.3       $ 4,682.1       $ 2,342.0   
  

 

 

    

 

 

    

 

 

 

Property, Plant and Equipment, Net

        

United States

   $ 2,684.9       $ 2,498.8      

Australia

     1,138.3         973.7      

Canada

     6,701.4         506.7      
  

 

 

    

 

 

    

Total Property, Plant and Equipment, Net

   $ 10,524.6       $ 3,979.2      
  

 

 

    

 

 

    

(1) Revenue is attributed to countries based on the location of the customer and includes both Product sales and services.

Concentrations in Revenue

In 2011, we had one customer that individually accounted for more than 10 percent of our consolidated product revenue. In 2010 and 2009, we had two and one additional customers that individually accounted for more than 10 percent of our consolidated product revenue, respectively. Total revenue from those customers that accounted for more than 10 percent of our consolidated product revenues represents approximately $1.4 billion, $1.8 billion and $0.8 billion of our total consolidated product revenue in 2011, 2010 and 2009, respectively, and is attributable to our U.S. Iron Ore, Eastern Canadian Iron Ore and North American Coal business segments.

The following table represents the percentage of our total revenue contributed by each category of products and services in 2011, 2010 and 2009:

 

     2011     2010     2009  

Revenue Category

      

Iron ore

     85     81     81

Coal

     11        13        14   

Freight and venture partners' cost reimbursements

     4        6        5   
  

 

 

   

 

 

   

 

 

 

Total revenue

     100     100     100
  

 

 

   

 

 

   

 

 

 

 

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 Consolidated Financial Position as of December 31, 2011 and 2010:

 

    (In Millions)  
    Derivative Assets     Derivative Liabilities  
    December 31, 2011     December 31, 2010     December 31, 2011     December 31, 2010  

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

(current)

  $ 5.2      Derivative assets
(current)
  $ 2.8      Other current
liabilities
  $ 3.5        $ —     
   

 

 

     

 

 

     

 

 

     

 

 

 

Total derivatives designated as hedging instruments under ASC 815

    $ 5.2        $ 2.8        $ 3.5        $ —     
   

 

 

     

 

 

     

 

 

     

 

 

 

Derivatives not designated as hedging instruments under ASC 815:

               

Foreign Exchange Contracts

  Derivative assets
(current)
  $ 2.8      Derivative assets
(current)
  $ 34.2        $ —          $ —     
  Other non-
current assets
    —        Other non-
current assets
    2.0          —            —     

Customer Supply Agreements

  Derivative assets
(current)
    72.9      Derivative assets
(current)
    45.6          —            —     

Provisional Pricing Arrangements

  Derivative assets
(current)
    1.2          Other current
liabilities
    19.5          —     
  Accounts
receivable
    83.8          —            —         
   

 

 

     

 

 

     

 

 

     

 

 

 

Total derivatives not designated as hedging instruments under ASC 815

    $ 160.7        $ 81.8        $ 19.5        $ —     
   

 

 

     

 

 

     

 

 

     

 

 

 

Total derivatives

    $ 165.9        $ 84.6        $ 23.0        $ —     
   

 

 

     

 

 

     

 

 

     

 

 

 

Derivatives Designated as Hedging Instruments

Cash Flow Hedges

Australian Foreign Exchange Contracts

We are subject to changes in foreign currency exchange rates as a result of our operations in 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 and coal sales. We use foreign currency exchange forward contracts, call options and collar options to hedge our foreign currency exposure for a portion of our Australian dollar sales receipts. U.S. currency is converted to Australian dollars at the currency exchange rate in effect at the time of the transaction. The primary objective for the use of these instruments is to reduce exposure to changes in Australian and U.S. currency exchange rates and to protect against undue adverse movement in these exchange rates. Effective October 1, 2010, we elected hedge accounting for certain types of our foreign exchange contracts entered into subsequent to September 30, 2010. These instruments are subject to formal documentation, intended to achieve qualifying hedge treatment, and are tested for effectiveness at inception and at least once each reporting period. During the third quarter of 2011, we implemented a global foreign exchange hedging policy to apply to all of our operating segments and our consolidated subsidiaries that engage in foreign exchange risk mitigation. The policy allows for not more than 75 percent, but not less than 40 percent for up to 12 months and not less than 10 percent for up to 15 months, of forecasted net currency exposures that are probable to occur. For our Asia Pacific operations, the forecasted net currency exposures are in relation to anticipated operating costs designated as cash flow hedges on future sales. Prior to the implementation of this policy, our Asia Pacific operations had a policy in place that was specific to local operations and allowed no more than 75 percent of anticipated operating costs for up to 12 months and no more than 50 percent of operating costs for up to 24 months to be designated as cash flow hedges of future sales. 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 December 31, 2011, we had outstanding foreign currency exchange contracts with a notional amount of $400.0 million in the form of forward contracts with varying maturity dates ranging from January 2012 to December 2012. This compares with outstanding foreign currency exchange contracts with a notional amount of $70.0 million as of December 31, 2010.

Changes in fair value of highly effective hedges are recorded as a component of Accumulated other comprehensive income (loss) in the Statements of Consolidated Financial Position. Unrealized gains of $1.8 million were recorded as of December 31, 2011 related to these hedge contracts, based on the Australian to U.S. dollar spot rate of 1.02 as of December 31, 2011. Unrealized gains of $1.9 million were recorded as of December 31, 2010 related to the Australian dollar hedge contracts, based on the Australian to U.S. dollar spot rate of 1.02 at December 31, 2010. Any ineffectiveness is recognized immediately in income and as of December 31, 2011 and 2010, there was no ineffectiveness recorded for these foreign exchange contracts. Amounts recorded as a component of Accumulated other comprehensive income (loss) are reclassified into earnings in the same period the forecasted transaction affects earnings and are recorded as Product revenues in the Statements of Consolidated Operations. For the year ended December 31, 2011, we recorded realized gains of $6.5 million. Of the amounts remaining in Accumulated other comprehensive income (loss), we estimate that net gains of $1.2 million will be reclassified into earnings within the next 12 months.

The following summarizes the effect of our derivatives designated as hedging instruments on Accumulated other comprehensive income (loss) and the Statements of Consolidated Operations for the years ended December 31, 2011, 2010 and 2009:

 

      (In Millions)  

Derivatives in Cash Flow Hedging Relationships

   Amount of
Gain
Recognized in
OCI on
Derivative
(Effective Portion)
     Location of Gain
Reclassified from
Accumulated OCI
into Income
(Effective Portion)
   Amount of
Gain
Reclassified from
Accumulated

OCI into Income
(Effective Portion)
 
     Year ended
December 31,
          Year ended
December 31,
 
     2011      2010      2009           2011      2010      2009  

Australian Dollar Foreign Exchange Contracts
(hedge designation)

   $ 1.8       $ 1.9       $ —         Product revenue    $ 2.6       $ —         $ —     

Australian Dollar Foreign Exchange Contracts
(prior to de-designation)

     —           —           —         Product revenue      0.7         3.2         15.1   
  

 

 

    

 

 

    

 

 

       

 

 

    

 

 

    

 

 

 

Total

   $ 1.8       $ 1.9       $ —            $ 3.3       $ 3.2       $ 15.1   
  

 

 

    

 

 

    

 

 

       

 

 

    

 

 

    

 

 

 

Derivatives Not Designated as Hedging Instruments

Australian Dollar Foreign Exchange Contracts

Effective July 1, 2008, we discontinued hedge accounting for foreign exchange contracts entered into for all outstanding contracts at the time and continued to hold such instruments as economic hedges to manage currency risk as described above. The notional amount of the outstanding non-designated foreign exchange contracts was $15.0 million as of December 31, 2011. The contracts are in the form of collar options with maturity dates in January 2012. This compares with outstanding non-designated foreign exchange contracts with a notional amount of $230.0 million as of December 31, 2010.

As a result of discontinuing hedge accounting, the instruments prospectively are marked to fair value each reporting period through Changes in fair value of foreign currency contracts, net in the Statements of Consolidated Operations. For the year ended December 31, 2011, the change in fair value of our foreign currency contracts resulted in net gains of $8.8 million, based on the Australian to U.S. dollar spot rate of 1.02 at December 31, 2011. This compares with net gains of $39.8 million for the year ended December 31, 2010, based on the Australian to U.S. dollar spot rate of 1.02 at December 31, 2010. For the year ended December 31, 2009, the change in fair value of our foreign currency contracts resulted in net gains of $85.7 million, based on the Australian to U.S. dollar spot rate of 0.90 at December 31, 2009. The amounts that previously were recorded as a component of Accumulated other comprehensive income (loss) are reclassified to earnings with a corresponding realized gain or loss recognized in the same period the forecasted transaction affected earnings. The amounts that previously were recorded as a component of Accumulated other comprehensive income (loss) were all reclassified to earnings during the first half of 2011, with a corresponding realized gain or loss recognized in the same period the forecasted transactions affected earnings.

Canadian Dollar Foreign Exchange Contracts and Options

On January 11, 2011, we entered into a definitive agreement with Consolidated Thompson to acquire all of its common shares in an all-cash transaction, including net debt. We hedged a portion of the purchase price on the open market by entering into foreign currency exchange forward contracts and an option contract with a combined notional amount of C$4.7 billion. The hedge contracts were considered economic hedges, which do not qualify for hedge accounting. The forward contracts had various maturity dates and the option contract had a maturity date of April 14, 2011.

During the first half of 2011, swaps were executed in order to extend the maturity dates of certain of the forward contracts through the consummation of the Consolidated Thompson acquisition and the repayment of the Consolidated Thompson convertible debentures. These swaps and the maturity of the forward contracts resulted in net realized gains of $93.1 million recognized through Changes in fair value of foreign currency contracts, net in the Statements of Consolidated Operations for the year ended December 31, 2011.

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 price adjustment factors vary based on the agreement but typically include adjustments based upon changes in international pellet prices, changes in specified Producers Price indices including those for all commodities, industrial commodities, energy and steel. The 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. 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 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 marked to fair value as a revenue adjustment each reporting period until the pellets are consumed and the amounts are settled. We recognized $178.0 million, $120.2 million and $22.2 million as Product revenues in the Statements of Consolidated Operations for the years ended December 31, 2011, 2010 and 2009, respectively, related to the supplemental payments. Derivative assets, representing the fair value of the pricing factors, were $72.9 million and $45.6 million, respectively, on the December 31, 2011 and 2010 Statements of Consolidated Financial Position.

Provisional Pricing Arrangements

During 2010, the world's largest iron ore producers began to move away from the annual international benchmark pricing mechanism referenced in certain of our customer supply agreements, resulting in a shift in the industry toward shorter-term pricing arrangements linked to the spot market. This change has impacted certain of our U.S. Iron Ore and Eastern Canadian Iron Ore customer supply agreements for the 2011 contract year. We reached final pricing settlement with a majority of our U.S. Iron Ore customers for the 2011 contract year. However, in some cases we are still working to revise components of the pricing calculations referenced within our supply agreements to incorporate new pricing mechanisms as a result of the changes to historical benchmark pricing. As a result, we have recorded certain shipments made to our U.S. Iron Ore and Eastern Canadian Iron Ore customers in 2011 on a provisional basis until final settlement is reached. The pricing provisions are characterized as freestanding derivatives and are required to be accounted for separately once the product is shipped. The derivative instrument, which is settled and billed once final pricing settlement is reached, is marked to fair value as a revenue adjustment each reporting period based upon the estimated forward settlement until prices actually are settled. We recognized $809.1 million as an increase in Product revenues in the Statements of Consolidated Operations for the year ended December 31, 2011 under these pricing provisions for certain shipments to our U.S. Iron Ore and Eastern Canadian Iron Ore customers. For the year ended December 31, 2011, $309.4 million of the revenues were realized due to the pricing settlements that primarily occurred with our U.S. Iron Ore customers during 2011. This compares with an increase in Product revenues of $960.7 million and a reduction to Product revenues of $28.2 million, respectively, for the years ended December 31, 2010 and 2009 related to estimated forward price settlements for shipments to our Asia Pacific Iron Ore, U.S. Iron Ore and Eastern Canadian Iron Ore customers until prices actually settled.

As of December 31, 2011, we have recorded approximately $1.2 million as current Derivative assets and $19.5 million Other current liabilities, respectively, in the Statements of Consolidated Financial Position related to our estimate of final pricing in 2011 with our U.S. Iron Ore and Eastern Canadian Iron Ore customers. This amount represents the difference between the provisional price agreed upon with our customers and our estimate of the ultimate price settlement in 2012. As of December 31, 2011, we also have derivatives of $83.8 million classified as Accounts receivable in the Statements of Consolidated Financial Position to reflect the amount we provisionally have agreed upon with certain of our U.S. Iron Ore and Eastern Canadian Iron Ore customers until a final price settlement is reached. It also represents the amount we have invoiced for shipments made to such customers and expect to collect in cash in the short term to fund operations. In 2010, the derivative instrument was settled in the fourth quarter upon the settlement of pricing provisions with some of our U.S. Iron Ore customers and therefore is not reflected in the Statements of Consolidated Financial Position at December 31, 2010.

The following summarizes the effect of our derivatives that are not designated as hedging instruments in the Statements of Consolidated Operations for the years ended December 31, 2011, 2010 and 2009:

 

(In Millions)

 

Derivative Not Designated as Hedging
Instruments

   Location of Gain/(Loss)
Recognized in Income on
Derivative
   Amount of Gain/(Loss)
Recognized in Income on
Derivative
 
          Year ended December 31,  
          2011      2010      2009  

Foreign Exchange Contracts

   Product Revenues    $ 1.0       $ 11.1       $ 5.4   

Foreign Exchange Contracts

   Other Income (Expense)      101.9         39.8         85.7   

Customer Supply Agreements

   Product Revenues      178.0         120.2         22.2   

Provisional Pricing Arrangements

   Product Revenues      809.1         960.7         (28.2

United Taconite Purchase Provision

   Product Revenues      —           —           106.5   
     

 

 

    

 

 

    

 

 

 

Total

      $ 1,090.0       $ 1,131.8       $ 191.6   
     

 

 

    

 

 

    

 

 

 

Refer to NOTE 6 — FAIR VALUE OF FINANCIAL INSTRUMENTS for additional information

In the normal course of business, we enter into forward contracts designated as normal purchases for the purchase of commodities, primarily natural gas and diesel fuel, which are used in our U.S. Iron Ore and Eastern Canadian Iron Ore operations. Such contracts are in quantities expected to be delivered and used in the production process and are not intended for resale or speculative purposes.

 

Acquisitions And Other Investments
Acquisitions And Other Investments

NOTE 4 — ACQUISITIONS AND OTHER INVESTMENTS

Acquisitions

We allocate the cost of acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. Any excess of cost over the fair value of the net assets acquired is recorded as goodwill.

Consolidated Thompson

On May 12, 2011, we completed our acquisition of Consolidated Thompson by acquiring all of the outstanding common shares of Consolidated Thompson for C$17.25 per share in an all-cash transaction, including net debt, pursuant to the terms of an arrangement agreement dated as of January 11, 2011. Upon the acquisition: (a) each outstanding Consolidated Thompson common share was acquired for a cash payment of C$17.25; (b) each outstanding option and warrant that was "in the money" was acquired for cancellation for a cash payment of C$17.25 less the exercise price per underlying Consolidated Thompson common share; (c) each outstanding performance share unit was acquired for cancellation for a cash payment of C$17.25; (d) all outstanding Quinto Mining Corporation rights to acquire common shares of Consolidated Thompson were acquired for cancellation for a cash payment of C$17.25 per underlying Consolidated Thompson common share; and (e) certain Consolidated Thompson management contracts were eliminated that contained certain change of control provisions for contingent payments upon termination. The acquisition date fair value of the consideration transferred totaled $4.6 billion. Our full ownership of Consolidated Thompson has been included in the consolidated financial statements since the acquisition date, and the subsidiary is reported as a component of our Eastern Canadian Iron Ore segment.

The acquisition of Consolidated Thompson reflects our strategy to build scale by owning expandable and exportable steelmaking raw material assets serving international markets. Through our acquisition of Consolidated Thompson, we now own and operate an iron ore mine and processing facility near Bloom Lake in Quebec, Canada that produces iron ore concentrate of high quality. WISCO is a 25 percent partner in the Bloom Lake mine. Bloom Lake is designed to achieve an initial production rate of 8.0 million metric tons of iron ore concentrate per year. During the second quarter of 2011 and in January 2012, additional capital investments were approved in order to increase the initial production rate to 16.0 million metric tons of iron ore concentrate per year. We also own two additional development properties, Lamêlée and Peppler Lake, in Quebec. All three of these properties are in proximity to our existing Canadian operations and will allow us to leverage our port facilities and supply this iron ore to the seaborne market. The acquisition also is expected to further diversify our existing customer base.

 

The following table summarizes the consideration paid for Consolidated Thompson and the estimated fair values of the assets and liabilities assumed at the acquisition date. We are in the process of finalizing the valuation of the assets acquired and liabilities assumed related to the acquisition, most notably, mineral rights, deferred taxes, required liabilities to minority parties and goodwill, and the final allocation will be made when completed. We expect to finalize the purchase price allocation for the acquisition of Consolidated Thompson early in 2012. Accordingly, the provisional measurements noted below are preliminary and subject to modification in the future.

 

     (In Millions)  
     Initial
Allocation
    Revised
Allocation
    Change  

Consideration

      

Cash

   $ 4,554.0      $ 4,554.0      $ —     
  

 

 

   

 

 

   

 

 

 

Fair value of total consideration transferred

   $ 4,554.0      $ 4,554.0      $ —     
  

 

 

   

 

 

   

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed

      

ASSETS:

      

Cash

   $ 130.6      $ 130.6      $ —     

Accounts receivable

     102.8        102.4        (0.4

Product inventories

     134.2        134.2        —     

Other current assets

     35.1        35.1        —     

Mineral rights

     4,450.0        4,825.6        375.6   

Property, plant and equipment

     1,193.4        1,193.4        —     

Intangible assets

     2.1        2.1        —     
  

 

 

   

 

 

   

 

 

 

Total identifiable assets acquired

     6,048.2        6,423.4        375.2   

LIABILITIES:

      

Accounts payable

     (13.6     (13.6     —     

Accrued liabilities

     (130.0     (123.8     6.2   

Convertible debentures

     (335.7     (335.7     —     

Other current liabilities

     (41.8     (41.8     —     

Long-term deferred tax liabilities

     (831.5     (1,041.8     (210.3

Senior secured notes

     (125.0     (125.0     —     

Capital lease obligations

     (70.7     (70.7     —     

Other long-term liabilities

     (25.1     (25.1     —     
  

 

 

   

 

 

   

 

 

 

Total identifiable liabilities assumed

     (1,573.4     (1,777.5     (204.1
  

 

 

   

 

 

   

 

 

 

Total identifiable net assets acquired

     4,474.8        4,645.9        171.1   

Noncontrolling interest in Bloom Lake

     (947.6     (1,075.4     (127.8

Preliminary goodwill

     1,026.8        983.5        (43.3
  

 

 

   

 

 

   

 

 

 

Total net assets acquired

   $ 4,554.0      $ 4,554.0      $ —     
  

 

 

   

 

 

   

 

 

 

In the months subsequent to the initial purchase price allocation for Consolidated Thompson, we further refined the fair values of the assets acquired and liabilities assumed. Based on this process, the acquisition date fair value of the Consolidated Thompson mineral rights, deferred tax liability and noncontrolling interest in Bloom Lake were adjusted to $4,825.6 million, $1,041.8 million and $1,075.4 million, respectively, in the revised purchase price allocation during the fourth quarter of 2011. The change in mineral rights was caused by further refinements to the valuation model, most specifically as it related to potential tax structures that have value from a market participant standpoint and the risk premium used in determining the discount rate. The change in the deferred tax liability primarily was a result of the movement in the mineral rights value and obtaining additional detail of the acquired tax basis in the acquired assets and liabilities. Finally, the change in the noncontrolling interest in Bloom Lake was due to the change in mineral rights and a downward adjustment to the discount for lack of control being used in the valuation. These adjustments resulted in additional depletion expense of $4.9 million and a gain of $10.8 million of remeasurement on foreign deferred tax liabilities recorded as Cost of goods sold and operating expenses and Income tax expense, respectively, in the Statements of Consolidated Operations for the year ended December 31, 2011. Under the business combination guidance in ASC 805, prior periods, beginning with the period of acquisition, are required to be revised to reflect changes to the original purchase price allocation. In accordance with this guidance, we retrospectively recorded the adjustments to the fair value of the acquired assets and assumed liabilities and the resulting adjustments to Goodwill and Noncontrolling Interest back to the date of acquisition. Accordingly, such amounts are reflected in the Statements of Consolidated Operations for the year ended December 31, 2011, but have been excluded from the three months ended December 31, 2011 in the unaudited Quarterly Results of Operations in Note 20. A complete comparison of the initial and revised purchase price allocation has been provided in the table above.

The fair value of the noncontrolling interest in the assets acquired and liabilities assumed in Bloom Lake has been allocated proportionately, based upon WISCO's 25 percent interest in Bloom Lake. We then reduced the allocated fair value of WISCO's ownership interest in Bloom Lake to reflect the noncontrolling interest discount.

The $983.5 million of preliminary goodwill resulting from the acquisition has been assigned to our Eastern Canadian Iron Ore business segment through the Bloom Lake reporting unit. The preliminary goodwill recognized primarily is attributable to the proximity to our existing Canadian operations, which will allow us to leverage our port facilities and supply iron ore to the seaborne market. None of the preliminary goodwill is expected to be deductible for income tax purposes. Refer to NOTE 5 — GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES for further information.

Acquisition-related costs in the amount of $25.4 million have been charged directly to operations and are included within Consolidated Thompson acquisition costs in the Statements of Consolidated Operations for the year ended December 31, 2011. In addition, we recognized $15.7 million of deferred debt issuance costs, net of accumulated amortization of $1.9 million, associated with issuing and registering the debt required to fund the acquisition as of December 31, 2011. Of these costs, $1.7 million and $14.0 million, respectively, have been recorded in Other current assets and Other non-current assets in the Statements of Consolidated Financial Position at December 31, 2011. Upon the termination of the bridge credit facility that we entered into to provide a portion of the financing for Consolidated Thompson, $38.3 million of related debt issuance costs were recognized in Interest expense in the Statements of Consolidated Operations for the year ended December 31, 2011.

The Statements of Consolidated Operations for the year ended December 31, 2011 include incremental revenue of $571.0 million and income of $143.7 million related to the acquisition of Consolidated Thompson since the date of acquisition. Income during the period includes the impact of expensing an additional $59.8 million of costs due to stepping up the value of inventory in purchase accounting through Cost of goods sold and operating expenses for the year ended December 31, 2011.

The following unaudited consolidated pro forma information summarizes the results of operations for the years ended December 31, 2011 and 2010, as if the Consolidated Thompson acquisition and the related financing had been completed as of January 1, 2010. The pro forma information gives effect to actual operating results prior to the acquisition. The unaudited consolidated pro forma information does not purport to be indicative of the results that actually would have been obtained if the acquisition of Consolidated Thompson had occurred as of the beginning of the periods presented or that may be obtained in the future.

 

     (In Millions, Except
Per Common Share)
 
     2011      2010  

REVENUES FROM PRODUCT SALES AND SERVICES

   $ 7,002.7       $ 4,982.9   

NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS

   $ 1,612.3       $ 912.5   

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS — BASIC

   $ 11.50       $ 6.74   

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS — DILUTED

   $ 11.43       $ 6.70   

 

The 2011 pro forma Net Income Attributable to Cliffs Shareholders was adjusted to exclude $69.6 million of Cliffs and Consolidated Thompson acquisition-related costs and $59.8 million of non-recurring inventory purchase accounting adjustments incurred during the year ended December 31, 2011. The 2010 pro forma Net Income Attributable to Cliffs Shareholders was adjusted to include the $59.8 million of non-recurring inventory purchase accounting adjustments.

Wabush

On February 1, 2010, we acquired entities from our former partners that held their respective interests in Wabush, thereby increasing our ownership interest to 100 percent. Our full ownership of Wabush has been included in the consolidated financial statements since that date. The acquisition date fair value of the consideration transferred totaled $103.0 million, which consisted of a cash purchase price of $88.0 million and a working capital adjustment of $15.0 million. With Wabush's 5.5 million tons of production capacity, acquisition of the remaining interest has increased our Eastern Canadian Iron Ore equity production capacity by approximately 4.0 million tons and has added more than 50 million tons of additional reserves. Furthermore, acquisition of the remaining interest has provided us additional access to the seaborne iron ore markets serving steelmakers in Europe and Asia.

Prior to the acquisition date, we accounted for our 26.8 percent interest in Wabush as an equity-method investment. We initially recognized an acquisition date fair value of the previous equity interest of $39.7 million, and a gain of $47.0 million as a result of remeasuring our prior equity interest in Wabush held before the business combination. The gain was recognized in the first quarter of 2010 and was included in Gain on acquisition of controlling interests in the Statements of Unaudited Condensed Consolidated Operations for the three months ended March 31, 2010.

In the months subsequent to the initial purchase price allocation, we further refined the fair values of the assets acquired and liabilities assumed. Additionally, we also continued to ensure our existing interest in Wabush was incorporating all of the book basis, including amounts recorded in Accumulated other comprehensive income (loss). Based on this process, the acquisition date fair value of the previous equity interest was adjusted to $38.0 million. The changes required to finalize the U.S. and Canadian deferred tax valuations and to incorporate additional information on assumed asset retirement obligations offset to a net decrease of $1.7 million in the fair value of the equity interest from the initial purchase price allocation. Thus, the gain resulting from the remeasurement of our prior equity interest, net of amounts previously recorded in Accumulated other comprehensive income (loss) of $20.3 million, was adjusted to $25.1 million for the period ended December 31, 2010.

 

Under the business combination guidance in ASC 805, prior periods, beginning with the period of acquisition, are required to be revised to reflect changes to the original purchase price allocation. In accordance with this guidance, we retrospectively have recorded the adjustments to the fair value of the acquired assets and assumed liabilities and the resulting Goodwill and Gain on acquisition of controlling interests, made during the second half of 2010, back to the date of acquisition. Accordingly, such amounts are reflected in the Statements of Consolidated Operations for the year ended December 31, 2010, and have been excluded from the three months ended September 30, 2010 and December 31, 2010, respectively, in the unaudited Quarterly Results of Operations in Note 20. We finalized the purchase price allocation for the acquisition of Wabush during the fourth quarter of 2010. A comparison of the initial and final purchase price allocation has been provided in the following table.

 

     (In Millions)  
     Initial
Allocation
    Final
Allocation
    Change  

Consideration

      

Cash

   $ 88.0      $ 88.0      $ —     

Working capital adjustments

     15.0        15.0        —     
  

 

 

   

 

 

   

 

 

 

Fair value of total consideration transferred

     103.0        103.0        —     

Fair value of Cliffs' equity interest in Wabush held prior to acquisition of remaining interest

     39.7        38.0        (1.7
  

 

 

   

 

 

   

 

 

 
   $ 142.7      $ 141.0      $ (1.7
  

 

 

   

 

 

   

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed

      

ASSETS:

      

In-process inventories

   $ 21.8      $ 21.8      $ —     

Supplies and other inventories

     43.6        43.6        —     

Other current assets

     13.2        13.2        —     

Mineral rights

     85.1        84.4        (0.7

Plant and equipment

     146.3        147.8        1.5   

Intangible assets

     66.4        66.4        —     

Other assets

     16.3        19.3        3.0   
  

 

 

   

 

 

   

 

 

 

Total identifiable assets acquired

     392.7        396.5        3.8   

LIABILITIES:

      

Current liabilities

     (48.1     (48.1     —     

Pension and OPEB obligations

     (80.6     (80.6     —     

Mine closure obligations

     (39.6     (53.4     (13.8

Below-market sales contracts

     (67.7     (67.7     —     

Deferred taxes

     (20.5     —          20.5   

Other liabilities

     (8.9     (8.8     0.1   
  

 

 

   

 

 

   

 

 

 

Total identifiable liabilities assumed

     (265.4     (258.6     6.8   
  

 

 

   

 

 

   

 

 

 

Total identifiable net assets acquired

     127.3        137.9        10.6   

Goodwill

     15.4        3.1        (12.3
  

 

 

   

 

 

   

 

 

 

Total net assets acquired

   $ 142.7      $ 141.0      $ (1.7
  

 

 

   

 

 

   

 

 

 

The significant changes to the final purchase price allocation from the initial allocation primarily were due to the allocation of deferred taxes between the existing equity interest in Wabush and the acquired portion, and additional asset retirement obligations noted related to the Wabush operations.

Of the $66.4 million of acquired intangible assets, $54.7 million was assigned to the value of a utility contract that provides favorable rates compared with prevailing market rates and is being amortized on a straight-line basis over the five-year remaining life of the contract. The remaining $11.7 million was assigned to the value of an easement agreement that is anticipated to provide a fee to Wabush for rail traffic moving over Wabush lands and is being amortized over a 30-year period.

The $3.1 million of goodwill resulting from the acquisition was assigned to our Eastern Canadian Iron Ore business segment. The goodwill recognized primarily is attributable to the mine's port access and proximity to the seaborne iron ore markets. None of the goodwill is expected to be deductible for income tax purposes.

Refer to NOTE 5 — GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES for further information.

Freewest

During 2009, we acquired 29 million shares, or 12.4 percent, of Freewest, a Canadian-based mineral exploration company focused on acquiring, exploring and developing high-quality chromite, gold and base- metal properties in Canada. On January 27, 2010, we acquired all of the remaining outstanding shares of Freewest for C$1.00 per share, including its interest in the Ring of Fire properties in Northern Ontario Canada, which comprise three premier chromite deposits. As a result of the transaction, our ownership interest in Freewest increased from 12.4 percent as of December 31, 2009 to 100 percent as of the acquisition date. Our full ownership of Freewest has been included in the consolidated financial statements since the acquisition date. The acquisition of Freewest is consistent with our strategy to broaden our geographic and mineral diversification and allows us to apply our expertise in open-pit mining and mineral processing to a chromite ore resource base that could form the foundation of North America's only ferrochrome production operation. Assuming favorable results from pre-feasibility and feasibility studies and receipt of all applicable approvals, the planned mine is expected to allow us to produce 600 thousand metric tons of ferrochrome and to produce one million metric tons of chromite concentrate annually. Total purchase consideration for the remaining interest in Freewest was approximately $185.9 million, comprised of the issuance of 0.0201 of our common shares for each Freewest share, representing a total of 4.2 million common shares or $173.1 million, and $12.8 million in cash. The acquisition date fair value of the consideration transferred was determined based upon the closing market price of our common shares on the acquisition date.

Prior to the acquisition date, we accounted for our 12.4 percent interest in Freewest as an available-for-sale equity security. The acquisition date fair value of the previous equity interest was $27.4 million, which was determined based upon the closing market price of the 29 million previously owned shares on the acquisition date. We recognized a gain of $13.6 million in the first quarter of 2010 as a result of remeasuring our ownership interest in Freewest held prior to the business acquisition. The gain is included in Gain on acquisition of controlling interests in the Statements of Consolidated Operations for the year ended December 31, 2010.

 

The following table summarizes the consideration paid for Freewest and the fair values of the assets acquired and liabilities assumed at the acquisition date. We finalized the purchase price allocation in the fourth quarter of 2010. Under the business combination guidance in ASC 805, prior periods, beginning with the period of acquisition, are required to be revised to reflect changes to the original purchase price allocation. In accordance with this guidance, we retrospectively have recorded the adjustments to the fair value of the acquired assets and assumed liabilities and the resulting Goodwill, made during the fourth quarter of 2010, back to the date of acquisition. We adjusted the initial purchase price allocation for the acquisition of Freewest in the fourth quarter of 2010 as follows:

 

     (In Millions)  
     Initial
Allocation
    Final
Allocation
    Change  

Consideration

      

Equity instruments (4.2 million Cliffs common shares)

   $ 173.1      $ 173.1      $ —     

Cash

     12.8        12.8        —     
  

 

 

   

 

 

   

 

 

 

Fair value of total consideration transferred

     185.9        185.9        —     

Fair value of Cliffs' ownership interest in Freewest held prior to acquisition of remaining interest

     27.4        27.4        —     
  

 

 

   

 

 

   

 

 

 
   $ 213.3      $ 213.3      $ —     
  

 

 

   

 

 

   

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed

      

ASSETS:

      

Cash

   $ 7.7      $ 7.7      $ —     

Other current assets

     1.4        1.4        —     

Mineral rights

     252.8        244.0        (8.8

Marketable securities

     12.1        12.1        —     
  

 

 

   

 

 

   

 

 

 

Total identifiable assets acquired

     274.0        265.2        (8.8

LIABILITIES:

      

Accounts payable

     (3.3     (3.3     —     

Long-term deferred tax liabilities

     (57.4     (54.3     3.1   
  

 

 

   

 

 

   

 

 

 

Total identifiable liabilities assumed

     (60.7     (57.6     3.1   
  

 

 

   

 

 

   

 

 

 

Total identifiable net assets acquired

     213.3        207.6        (5.7

Goodwill

     —          5.7        5.7   
  

 

 

   

 

 

   

 

 

 

Total net assets acquired

   $ 213.3      $ 213.3      $ —     
  

 

 

   

 

 

   

 

 

 

The significant changes to the final purchase price allocation from the initial allocation primarily were due to changes to the fair value adjustment for mineral rights that resulted from the finalization of certain assumptions used in the valuation models utilized to determine the fair values.

The $5.7 million of goodwill resulting from the finalization of the purchase price allocation was assigned to our Ferroalloys operating segment. The goodwill recognized primarily is attributable to obtaining a controlling interest in Freewest. None of the goodwill is expected to be deductible for income tax purposes. Refer to NOTE 5 — GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES for further information.

Spider

During the second quarter of 2010, we commenced a formal cash offer to acquire all of the outstanding common shares of Spider, a Canadian-based mineral exploration company, for C$0.19 per share. As of June 30, 2010, we held 27.4 million shares of Spider, representing approximately four percent of its issued and outstanding shares. On July 6, 2010, all of the conditions to acquire the remaining common shares of Spider had been satisfied or waived, and we consequently acquired all of the common shares that validly were tendered as of that date. When combined with our prior ownership interest, the additional shares acquired increased our ownership percentage to 52 percent on the date of acquisition, representing a majority of the common shares outstanding on a fully diluted basis. Our 52 percent ownership of Spider was included in the consolidated financial statements since the July 6, 2010 acquisition date, and Spider was included as a component of our Ferroalloys operating segment. The acquisition date fair value of the consideration transferred totaled a cash purchase price of $56.9 million. Subsequent to the acquisition date, we extended the cash offer to permit additional shares to be tendered and taken up, thereby increasing our ownership percentage in Spider to 85 percent as of July 26, 2010. Effective October 6, 2010, we completed the acquisition of the remaining shares of Spider through an amalgamation, bringing our ownership percentage to 100 percent as of December 31, 2010. As noted above, through our acquisition of Freewest during the first quarter of 2010, we acquired an interest in the Ring of Fire properties in Northern Ontario, which comprise three premier chromite deposits. The Spider acquisition allowed us to obtain majority ownership of the "Big Daddy" chromite deposit, based on Spider's ownership percentage in this deposit of 26.5 percent at the time of the closing acquisition date.

Prior to the July 6, 2010 acquisition date, we accounted for our four percent interest in Spider as an available-for-sale equity security. The acquisition date fair value of the previous equity interest was $4.9 million, which was determined based upon the closing market price of the 27.4 million previously owned shares on the acquisition date. The acquisition date fair value of the 48 percent noncontrolling interest in Spider was estimated to be $51.9 million, which was determined based upon the closing market price of the 290.5 million shares of noncontrolling interest on the acquisition date.

The following table summarizes the consideration paid for Spider and the fair values of the assets acquired and liabilities assumed at the acquisition date. We finalized the purchase price allocation in the fourth quarter of 2010. Under the business combination guidance in ASC 805, prior periods, beginning with the period of acquisition, are required to be revised to reflect changes to the original purchase price allocation. In accordance with this guidance, we retrospectively have recorded the adjustments to the fair value of the acquired assets and assumed liabilities and the resulting Goodwill, made during the fourth quarter of 2010, back to the date of acquisition. We adjusted the initial purchase price allocation for the acquisition of Spider in the fourth quarter of 2010 as follows:

 

     (In Millions)  
     Initial
Allocation
    Final
Allocation
    Change  

Consideration

      

Cash

   $ 56.9      $ 56.9      $ —     
  

 

 

   

 

 

   

 

 

 

Fair value of total consideration transferred

     56.9        56.9        —     

Fair value of Cliffs' ownership interest in Spider held prior to acquisition of remaining interest

     4.9        4.9        —     
  

 

 

   

 

 

   

 

 

 
   $ 61.8      $ 61.8      $ —     
  

 

 

   

 

 

   

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed

      

ASSETS:

      

Cash

   $ 9.0      $ 9.0      $ —     

Other current assets

     4.5        4.5        —     

Mineral rights

     31.0        35.3        4.3   
  

 

 

   

 

 

   

 

 

 

Total identifiable assets acquired

     44.5        48.8        4.3   

LIABILITIES:

      

Other current liabilities

     (5.2     (5.2     —     

Long-term deferred tax liabilities

     (2.7     (5.1     (2.4
  

 

 

   

 

 

   

 

 

 

Total identifiable liabilities assumed

     (7.9     (10.3     (2.4
  

 

 

   

 

 

   

 

 

 

Total identifiable net assets acquired

     36.6        38.5        1.9   

Goodwill

     77.1        75.2        (1.9

Noncontrolling interest in Spider

     (51.9     (51.9     —     
  

 

 

   

 

 

   

 

 

 

Total net assets acquired

   $ 61.8      $ 61.8      $ —     
  

 

 

   

 

 

   

 

 

 

 

The significant changes to the final purchase price allocation from the initial allocation primarily were due to changes to the fair value adjustment for mineral rights that resulted from the finalization of certain assumptions used in the valuation models utilized to determine the fair values.

The $75.2 million of goodwill resulting from the acquisition was assigned to our Ferroalloys operating segment. The goodwill recognized primarily is attributable to obtaining majority ownership of the "Big Daddy" chromite deposit. When combined with the interest we acquired in the Ring of Fire properties through our acquisition of Freewest, we now control three premier chromite deposits in Northern Ontario, Canada. None of the goodwill is expected to be deductible for income tax purposes. Refer to NOTE 5 — GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES for further information.

CLCC

On July 30, 2010, we acquired the coal operations of privately owned INR and since that date, the operations acquired from INR have been conducted through our wholly owned subsidiary known as CLCC. Our full ownership of CLCC has been included in the consolidated financial statements since the acquisition date, and the subsidiary is reported as a component of our North American Coal segment. The acquisition date fair value of the consideration transferred totaled $775.9 million, which consisted of a cash purchase price of $757 million and a working capital adjustment of $18.9 million.

CLCC is a producer of high-volatile metallurgical and thermal coal located in southern West Virginia. CLCC's operations include two underground continuous mining method metallurgical coal mines and one open surface thermal coal mine. The acquisition includes a metallurgical and thermal coal mining complex with a coal preparation and processing facility as well as a large, long-life reserve base with an estimated 59 million tons of metallurgical coal and 62 million tons of thermal coal. This reserve base increases our total global reserve base to over 166 million tons of metallurgical coal and over 67 million tons of thermal coal. This acquisition represented an opportunity for us to add complementary high-quality coal products and provided certain advantages, including among other things, long-life mine assets, operational flexibility and new equipment.

 

The following table summarizes the consideration paid for CLCC and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. We finalized the purchase price allocation in the second quarter of 2011. Under the business combination guidance in ASC 805, prior periods, beginning with the period of acquisition, are required to be revised to reflect changes to the original purchase price allocation. In accordance with this guidance, we retrospectively have recorded the adjustments to the fair value of the acquired assets and assumed liabilities and the resulting Goodwill back to the date of acquisition. We adjusted the initial purchase price allocation for the acquisition of CLCC as follows:

 

     (In Millions)  
     Initial
Allocation
    Final
Allocation
    Change  

Consideration

      

Cash

   $ 757.0      $ 757.0        —     

Working capital adjustments

     17.5        18.9        1.4   
  

 

 

   

 

 

   

 

 

 

Fair value of total consideration transferred

   $ 774.5      $ 775.9      $ 1.4   
  

 

 

   

 

 

   

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed

      

ASSETS:

      

Product inventories

   $ 20.0      $ 20.0      $ —     

Other current assets

     11.8        11.8        —     

Land and mineral rights

     640.3        639.3        (1.0

Plant and equipment

     111.1        112.3        1.2   

Deferred taxes

     16.5        15.9        (0.6

Intangible assets

     7.5        7.5        —     

Other non-current assets

     0.8        0.8        —     
  

 

 

   

 

 

   

 

 

 

Total identifiable assets acquired

     808.0        807.6        (0.4

LIABILITIES:

      

Current liabilities

     (22.8     (24.1     (1.3

Mine closure obligations

     (2.8     (2.8     —     

Below-market sales contracts

     (32.6     (32.6     —     
  

 

 

   

 

 

   

 

 

 

Total identifiable liabilities assumed

     (58.2     (59.5     (1.3
  

 

 

   

 

 

   

 

 

 

Total identifiable net assets acquired

     749.8        748.1        (1.7

Goodwill

     24.7        27.8        3.1   
  

 

 

   

 

 

   

 

 

 

Total net assets acquired

   $ 774.5      $ 775.9      $ 1.4   
  

 

 

   

 

 

   

 

 

 

As our fair value estimates remain materially unchanged from 2010, there were no significant changes to the purchase price allocation from the initial allocation reported during the third quarter of 2010.

Of the $7.5 million of acquired intangible assets, $5.4 million was assigned to the value of in-place permits and will be amortized on a straight-line basis over the life of the mine. The remaining $2.1 million was assigned to the value of favorable mineral leases and will be amortized on a straight-line basis over the corresponding mine life.

The $27.8 million of goodwill resulting from the acquisition was assigned to our North American Coal business segment. The goodwill recognized primarily is attributable to the addition of complementary high-quality coal products to our existing operations and operational flexibility. None of the goodwill was expected to be deductible for income tax purposes. After performing our annual goodwill impairment test in the fourth quarter of 2011, we determined that the goodwill resulting from the acquisition was impaired as the carrying value exceeded its fair value. The impairment charge was recorded as Impairment of Goodwill in the Statements of Consolidated Operations for the year ended December 31, 2011. Refer to NOTE 5 — GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES for further information.

 

With regard to each of the 2010 acquisitions discussed above, pro forma results of operations have not been presented because the effects of these business combinations, individually and in the aggregate, were not material to our consolidated results of operations.

Goodwill And Other Intangible Assets And Liabilities
Goodwill And Other Intangible Assets And Liabilities

NOTE 5 — GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES

Goodwill

Goodwill represents the excess purchase price paid over the fair value of the net assets of acquired companies and is not subject to amortization. We assign goodwill arising from acquired companies to the reporting units that are expected to benefit from the synergies of the acquisition. Our reporting units are either at the operating segment level or a component one level below our operating segments that constitutes a business for which management generally reviews production and financial results of that component. Decisions are often made as to capital expenditures, investments and production plans at the component level as part of the ongoing management of the related operating segment. We have determined that our Asia Pacific Iron Ore and Ferroalloys operating segments constitute separate reporting units, that our Bloom Lake and Wabush mines within our Eastern Canadian Iron Ore operating segment constitute reporting units, that CLCC within our North American Coal operating segment constitutes a reporting unit and that our Northshore mine within our U.S. Iron Ore operating segment constitutes a reporting unit. Goodwill is allocated among and evaluated for impairment at the reporting unit level in the fourth quarter of each year or as circumstances occur that potentially indicate that the carrying amount of these assets may not be recoverable. There were no such events or changes in circumstances during 2011.

After performing our annual goodwill impairment test in the fourth quarter of 2011, we determined that $27.8 million of goodwill associated with our CLCC reporting unit was impaired as the carrying value with this reporting unit exceeded its fair value. The fair value was determined using a combination of a discounted cash flow model and valuations of comparable businesses. The impairment charge for the CLCC reporting unit was driven by our overall outlook on coal pricing in light of economic conditions, increases in our anticipated costs to bring the Lower War Eagle mine into production and increases in our anticipated sustaining capital cost for the lives of the CLCC mines that are currently operating. No impairment charges were identified in connection with our annual goodwill impairment test with respect to our other identified reporting units. The following table summarizes changes in the carrying amount of goodwill allocated by operating segment during 2011 and 2010:

 

    (In Millions)  
    December 31, 2011     December 31, 2010  
    U.S.
Iron
Ore
    Eastern
Canadian
Iron Ore
    North
American
Coal
    Asia
Pacific
Iron
Ore
    Other     Total     U.S.
Iron
Ore
    Eastern
Canadian
Iron Ore
    North
American
Coal
    Asia
Pacific
Iron
Ore
    Other     Total  

Beginning Balance

  $ 2.0      $ 3.1      $ 27.9      $ 82.6      $ 80.9      $ 196.5      $ 2.0      $ —        $ —        $ 72.6      $ —        $ 74.6   

Arising in business combinations

    —          983.5        (0.1     —          —          983.4        —          3.1        27.9        —          80.9        111.9   

Impairment

    —          —          (27.8     —          —          (27.8     —          —          —          —          —          —     

Impact of foreign currency translation

    —          —          —          0.4        —          0.4        —          —          —          10.0        —          10.0   

Other

    —          (0.4     —          —          —          (0.4     —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending Balance

  $ 2.0      $ 986.2      $ —        $ 83.0      $ 80.9      $ 1,152.1      $ 2.0      $ 3.1      $ 27.9      $ 82.6      $ 80.9      $ 196.5   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The increase in the balance of goodwill as of December 31, 2011 is due to the assignment of $983.5 million to Goodwill during 2011 based on preliminary purchase price allocation for the acquisition of Consolidated Thompson. The balance of $1,152.1 million and $196.5 million as of December 31, 2011 and 2010, respectively, is presented as Goodwill in the Statements of Consolidated Financial Position. Refer to NOTE 4 — ACQUISITIONS AND OTHER INVESTMENTS for additional information.

 

Other Intangible Assets and Liabilities

Following is a summary of intangible assets and liabilities at December 31, 2011 and 2010:

 

        (In Millions)  
        December 31, 2011     December 31, 2010  
   

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   $ 134.3      $ (23.2   $ 111.1      $ 132.4      $ (16.3   $ 116.1   

Utility contracts

  Intangible assets, net     54.7        (21.3     33.4        54.7        (10.2     44.5   

Easements (1)

  Intangible assets, net     —          —          —          11.7        (0.4     11.3   

Leases

  Intangible assets, net     5.5        (3.0     2.5        5.2        (2.9     2.3   

Unpatented technology (2)

  Intangible assets, net     —          —          —          4.0        (2.4     1.6   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total intangible assets

    $ 194.5      $ (47.5   $ 147.0      $ 208.0      $ (32.2   $ 175.8   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Below-market sales contracts

  Below-market sales contracts - current   $ (77.0   $ 24.3      $ (52.7   $ (77.0   $ 19.9      $ (57.1

Below-market sales contracts

  Below-market sales contracts     (252.3     140.5        (111.8     (252.3     87.9        (164.4
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total below-market sales contracts

    $ (329.3   $ 164.8      $ (164.5   $ (329.3   $ 107.8      $ (221.5
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The intangible assets are subject to periodic amortization on a straight-line basis over their estimated useful lives as follows:

 

Intangible Asset

   Useful Life (years)

Permits

   15 - 28

Utility contracts

   5

Leases

   1.5 - 4.5

Amortization expense relating to intangible assets was $17.7 million, $18.8 million and $8.2 million, respectively, for the years ended December 31, 2011, 2010 and 2009, and is recognized in Cost of goods sold and operating expenses in the Statements of Consolidated Operations. The estimated amortization expense relating to intangible assets for each of the five succeeding fiscal years is as follows:

 

     (In Millions)  
     Amount  

Year Ending December 31

  

2012

   $ 18.0   

2013

     17.9   

2014

     17.9   

2015

     6.0   

2016

     6.0   
  

 

 

 

Total

   $ 65.8   
  

 

 

 

 

The below-market sales contracts are classified as a liability and recognized over the terms of the underlying contracts, which range from 3.5 to 8.5 years. For the years ended December 31, 2011, 2010 and 2009, we recognized $57.0 million, $62.4 million and $30.3 million, respectively, in Product revenues related to the below-market sales contracts. The following amounts will be recognized in Product revenues for each of the five succeeding fiscal years:

 

     (In Millions)  
     Amount  

Year Ending December 31

  

2012

   $ 48.8   

2013

     45.3   

2014

     23.0   

2015

     23.0   

2016

     23.1   
  

 

 

 

Total

   $ 163.2   
  

 

 

 
Fair Value Of Financial Instruments
Fair Value Of Financial Instruments

NOTE 6 — FAIR VALUE OF FINANCIAL INSTRUMENTS

The following represents the assets and liabilities of the Company measured at fair value at December 31, 2011 and 2010:

 

     (In Millions)  
     December 31, 2011  

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

   $ 351.2       $ —         $ —        $ 351.2   

Derivative assets

     —           —           157.9  (1)      157.9   

International marketable securities

     27.1         —           —          27.1   

Foreign exchange contracts

     —           8.0         —          8.0   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 378.3       $ 8.0       $ 157.9      $ 544.2   
  

 

 

    

 

 

    

 

 

   

 

 

 

Liabilities:

          

Derivative liabilites

   $ —         $ —         $ 19.5      $ 19.5   

Foreign exchange contracts

     —           3.5         —          3.5   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ —         $ 3.5       $ 19.5      $ 23.0   
  

 

 

    

 

 

    

 

 

   

 

 

 

(1) Derivative assets includes $83.8 million classifed as Accounts receivable on the Statement of Consolidated Financial Position as of December 31, 2011. Refer to NOTE 3 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES for further information.

 

     (In Millions)  
     December 31, 2010  

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

   $ 1,307.2       $ —         $ —         $ 1,307.2   

Derivative assets

     —           —           45.6         45.6   

U.S. marketable securities

     22.0         —           —           22.0   

International marketable securities

     63.9         —           —           63.9   

Foreign exchange contracts

     —           39.0         —           39.0   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 1,393.1       $ 39.0       $ 45.6       $ 1,477.7   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

There were no financial instruments measured at fair value that were in a liability position at December 31, 2010.

Financial assets classified in Level 1 at December 31, 2011 and 2010 include money market funds and available-for-sale marketable securities. The valuation of these instruments is determined using a market approach, taking into account current interest rates, creditworthiness and liquidity risks in relation to current market conditions, and 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 for substantially the full term of the financial instrument. Level 2 securities primarily include derivative financial instruments valued using financial models that use as their basis readily observable market parameters. At December 31, 2011 and 2010, 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 December 31, 2011 and 2010 include an embedded 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 mark this provision to fair value as a revenue adjustment 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 December 31, 2011 also consisted of freestanding derivatives related to certain supply agreements with our U.S. Iron Ore and Eastern Canadian Iron Ore customers. In 2011, we reached final pricing settlement with a majority of our U.S. Iron Ore customers. However, in some cases we still are working to revise components of the pricing calculations referenced within our supply agreements to incorporate new pricing mechanisms as a result of the changes to historical benchmark pricing. As a result, we have recorded certain shipments made during 2011 on a provisional basis until final settlement is reached. The pricing provisions are characterized as freestanding derivatives and are required to be accounted for separately once the product is shipped. The derivative instrument, which is settled and billed once final pricing settlement is reached, is marked to fair value as a revenue adjustment each reporting period.

In the second quarter of 2011 and the third quarter of 2010, we revised the inputs used to determine the fair value of these derivatives to include 2011 published pricing indices and settlements realized by other companies in the industry. Prior to this change, the fair value primarily was determined based on significant unobservable inputs to develop the forward price expectation of the final price settlement for 2011. Based on these changes to the determination of the fair value, we transferred $20.0 million of derivative assets from a Level 3 classification to a Level 2 classification within the fair value hierarchy in the second quarter of 2011. A similar revision to the inputs used to determine the fair value of these derivatives was made in the third quarter of 2010 and, based on the changes, we transferred $161.8 million of derivative assets from a Level 3 classification to a Level 2 classification within the fair value hierarchy at that time.

Due to pending revisions to the terms of certain of our customer supply agreements that were initiated during the fourth quarter of 2011, the fair value determination for these derivatives has again been primarily based on significant unobservable inputs to develop the forward price expectation of the final price settlement for 2011. Based on these changes to the determination of the fair value, we transferred $49.0 million of derivative assets from a Level 2 classification to a Level 3 classification within the fair value hierarchy in the fourth quarter of 2011. The fair value of our derivatives is determined using a market approach and takes into account current market conditions and other risks, including nonperformance risk.

 

Substantially all of the financial assets and liabilities are carried at fair value or contracted amounts that approximate fair value. We had no financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2011 and 2010.

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 year ended December 31, 2011. As noted above, there was a transfer from Level 3 to Level 2 in each of the second quarter of 2011 and the third quarter of 2010, and a transfer from Level 2 to Level 3 in the fourth quarter of 2011, as reflected in the table below. 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 years ended December 31, 2011 and 2010.

 

             (In Millions)          
             Derivative Assets (Level 3)           
     Year Ended
December 31,
 
             2011                     2010          

Beginning balance — January 1

   $ 45.6      $ 63.2   

Total gains

    

Included in earnings

     403.0        851.7   

Included in other comprehensive income

     —          —     

Settlements

     (319.7     (707.5

Transfers into Level 3

     49.0        —     

Transfers out of Level 3

     (20.0     (161.8
  

 

 

   

 

 

 

Ending balance — December 31

   $ 157.9      $ 45.6   
  

 

 

   

 

 

 

Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date

   $ 403.0      $ 120.2   
  

 

 

   

 

 

 

 

     (In Millions)  
     Derivative Liabilities (Level 3)  
     Year Ended
December 31,
 
             2011                     2010          

Beginning balance — January 1

   $ —        $ —     

Total losses

    

Included in earnings

     (19.5     —     

Included in other comprehensive income

     —          —     

Settlements

     —          —     

Transfers into Level 3

     —          —     
  

 

 

   

 

 

 

Ending balance — December 31

   $ (19.5   $ —     
  

 

 

   

 

 

 

Total losses for the period included in earnings attributable to the change in unrealized losses on assets still held at the reporting date

   $ (19.5   $   —     
  

 

 

   

 

 

 

Gains and losses included in earnings are reported in Product revenue in the Statements of Consolidated Operations for the years ended December 31, 2011 and 2010.

 

The carrying amount and fair value of our long-term receivables and long-term debt at December 31, 2011 and 2010 were as follows:

 

     (In Millions)  
     December 31, 2011      December 31, 2010  
     Carrying
Value
     Fair
Value
     Carrying
Value
     Fair
Value
 

Long-term receivables:

           

Customer supplemental payments

   $ 22.3       $ 20.8       $ 22.3       $ 19.5   

ArcelorMittal USA — Receivable

     26.5         30.7         32.8         38.9   

Other

     10.0         10.0         8.1         8.1   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total long-term receivables (1)

   $ 58.8       $ 61.5       $ 63.2       $ 66.5   
  

 

 

    

 

 

    

 

 

    

 

 

 

Long-term debt:

           

Term loan — $1.25 billion

   $ 897.2       $ 897.2       $ —         $ —     

Senior notes — $700 million

     699.3         726.4         —           —     

Senior notes — $1.3 billion

     1,289.2         1,399.4         990.3         972.5   

Senior notes — $400 million

     398.0         448.8         397.8         422.8   

Senior notes — $325 million

     325.0         348.7         325.0         355.6   

Customer Borrowings

     5.1         5.1         4.0         4.0   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total long-term debt

   $ 3,613.8       $ 3,825.6       $ 1,717.1       $ 1,754.9   
  

 

 

    

 

 

    

 

 

    

 

 

 

(1) Includes current portion.

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 2013, 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 December 31, 2011 and 2010, a receivable of $22.3 million had been recorded in Other non-current assets in the Statement of Consolidated Financial Position reflecting the terms of this deferred payment arrangement. The fair value of the receivable of $20.8 million and $19.5 million at December 31, 2011 and 2010, respectively, is based on a discount rate of 4.5 percent, 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 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 $26.5 million and $32.8 million at December 31, 2011 and 2010, respectively. The fair value of the receivable of $30.7 million and $38.9 million at December 31, 2011 and 2010, respectively, is based on a discount rate of 2.58 percent, 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 7 — DEBT AND CREDIT FACILITIES for further information.

 

Debt And Credit Facilities
Debt And Credit Facilities

NOTE 7 — DEBT AND CREDIT FACILITIES

The following represents a summary of our long-term debt as of December 31, 2011 and 2010:

 

     ($ in Millions)
      December 31, 2011

Debt Instrument

   Type    Average
Annual
Interest Rate
    Final
Maturity
     Total
Face
Amount
   Total
Long-term
Debt

$1.25 Billion Term Loan

   Variable      1.40     2016       $ 972.0  (6)       $ 897.2  (6)   

$700 Million 4.875% 2021 Senior Notes

   Fixed      4.88     2021         700.0           699.3  (5)   

$1.3 Billion Senior Notes:

                 

$500 Million 4.80% 2020 Senior Notes

   Fixed      4.80     2020         500.0           499.1  (4)   

$800 Million 6.25% 2040 Senior Notes

   Fixed      6.25     2040         800.0           790.1  (3)   

$400 Million 5.90% 2020 Senior Notes

   Fixed      5.90     2020         400.0           398.0  (2)   

$325 Million Private Placement Senior Notes:

                 

Series 2008A — Tranche A

   Fixed      6.31     2013         270.0           270.0     

Series 2008A — Tranche B

   Fixed      6.59     2015         55.0           55.0     

$1.75 Billion Credit Facility:

                 

Revolving Loan

   Variable      —          2016         1,750.0           —   (1)   
          

 

 

      

 

 

   

Total

           $ 5,447.0         $ 3,608.7     
          

 

 

      

 

 

   
      December 31, 2010

Debt Instrument

   Type    Average
Annual
Interest Rate
    Final
Maturity
     Total
Face
Amount
   Total
Long-term
Debt

$1 Billion Senior Notes:

                 

$500 Million 4.80% 2020 Senior Notes

   Fixed      4.80     2020       $ 500.0         $ 499.0  (4)   

$500 Million 6.25% 2040 Senior Notes

   Fixed      6.25     2040         500.0           491.3  (3)   

$400 Million 5.90% 2020 Senior Notes

   Fixed      5.90     2020         400.0           397.8  (2)   

$325 Million Private Placement Senior Notes:

                 

Series 2008A — Tranche A

   Fixed      6.31     2013         270.0           270.0     

Series 2008A — Tranche B

   Fixed      6.59     2015         55.0           55.0     

$600 Million Credit Facility:

                 

Revolving Loan

   Variable      —          2012         600.0           —    (1)   
          

 

 

      

 

 

   

Total

           $ 2,325.0         $ 1,713.1     
          

 

 

      

 

 

   

 

 

 

 

 

Credit Facility

On August 11, 2011, we entered into a five-year unsecured amended and restated multicurrency credit agreement, or amended credit agreement, with a syndicate of financial institutions in order to amend the terms of our existing multicurrency credit agreement. The former $800 million multicurrency credit agreement consisted of a $600 million revolving credit facility and a $200 million term loan. The $200 million term loan was paid in its entirety in March 2010, reducing the multicurrency credit agreement to a $600 million revolving credit facility. The amended credit agreement provides for, among other things, a $1.75 billion revolving credit facility and allows for the designation of certain foreign subsidiaries as borrowers under the amended credit agreement, if certain conditions are satisfied. Borrowings under the amended credit agreement bear interest at a floating rate based upon a base rate or the LIBOR rate plus a margin based upon our leverage ratio. Certain of our material domestic subsidiaries have guaranteed our obligations and the obligations of other borrowers under the amended credit agreement. Previously, we had amended the terms of our $800 million multicurrency credit agreement, effective October 29, 2009. The 2009 amendment resulted in, among other things, an increase in the sub-limit for letters of credit from $50 million to $150 million, the addition of multi-currency letters of credit, and more liberally defined financial covenants and debt restrictions. An increase of 50 basis points to the annual LIBOR margin resulted from this 2009 amendment.

Proceeds from the amended credit agreement are used to refinance existing indebtedness, to finance general working capital needs and for other general corporate purposes, including the funding of acquisitions. We have the ability to request an increase in available revolving credit borrowings under the amended credit agreement by an additional amount of up to $250 million by obtaining the agreement of the existing financial institutions to increase their lending commitments or by adding additional lenders.

As a condition of agreeing to the amended credit agreement terms, $250 million was drawn against the revolving credit facility on August 11, 2011, in order to pay down a portion of the term loan. All amounts outstanding under the revolving credit facility were repaid in full on December 12, 2011. The weighted average annual interest rate under the revolving credit facility during the time the borrowings were outstanding was 1.84 percent.

Loans are drawn with a choice of interest rates and maturities, subject to the terms of the agreement. Under the amended credit agreement described above, interest rates are either (a) (1) a range from LIBOR plus 0.75 percent to LIBOR plus 2.00 percent based on the leverage ratio, or (2) the highest of the prime rate, (b) the Federal Funds Effective Rate plus 0.50 percent, or (c) the one-month LIBOR rate, plus 1.0 percent based on the leverage ratio.

The amended credit agreement has two 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 million private placement senior notes due 2013 remain outstanding, or otherwise (ii) the then applicable maximum multiple under the $270 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). Prior to the amendment to our multicurrency credit agreement in August 2011, the debt to earnings ratio of Total Funded Debt to Consolidated EBITDA for the preceding four quarters could not exceed 3.25 to 1.0 on the last day of any fiscal quarter. Prior to the amendment to our multicurrency credit agreement in October 2009, the interest coverage ratio was calculated based on Consolidated EBIT to Interest Expense for the preceding four quarters and could not be less than 3.0 to 1.0 on the last day of any fiscal quarter. The amended credit agreement provided for more flexible financial covenants and debt restrictions through the amendment of certain customary covenants. As of December 31, 2011 and 2010, we were in compliance with the financial covenants in the amended credit agreement.

 

$1 Billion Senior Notes — 2011 Offering

On March 23, 2011 and April 1, 2011, respectively, we completed a $1 billion public offering of senior notes consisting of two tranches: a 10-year tranche of $700 million aggregate principal amount at 4.875 percent senior notes due April 1, 2021, and an additional issuance of $300 million aggregate principal amount of our 6.25 percent senior notes due October 1, 2040, of which $500 million aggregate principal amount previously was issued during September 2010. Interest is fixed and is payable on April 1 and October 1 of each year, beginning on October 1, 2011, for both series of senior notes until maturity. The senior notes are unsecured obligations and rank equally in right of payment with all our other existing and future unsecured and unsubordinated indebtedness. There are no subsidiary guarantees of the interest and principal amounts. The net proceeds from the senior notes offering were used to fund a portion of the acquisition of Consolidated Thompson and to pay the related fees and expenses.

The senior notes may be redeemed any time at our option not less than 30 days nor more than 60 days after prior notice is sent to the holders of the applicable series of notes. The senior notes are redeemable at a redemption price equal to the greater of (1) 100 percent of the principal amount of the notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semi-annual basis at the treasury rate plus 25 basis points with respect to the 2021 senior notes and 40 basis points with respect to the 2040 senior notes, plus, in each case, accrued and unpaid interest to the date of redemption. However, if the 2021 senior notes are redeemed on or after the date that is three months prior to their maturity date, the 2021 senior notes will be redeemed at a redemption price equal to 100 percent of the principal amount of the notes to be redeemed plus accrued and unpaid interest to the date of redemption.

In addition, if a change of control triggering event occurs with respect to the senior notes, as defined in the agreement, we will be required to offer to purchase the notes of the applicable series at a purchase price equal to 101 percent of the principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

The terms of the senior notes contain certain customary covenants; however, there are no financial covenants.

$1 Billion Senior Notes — 2010 Offering

On September 20, 2010, we completed a $1 billion public offering of senior notes consisting of two tranches: a 10-year tranche of $500 million aggregate principal amount at 4.80 percent due October 1, 2020, and a 30-year tranche of $500 million aggregate principal amount at 6.25 percent due October 1, 2040. Interest is fixed and is payable on April 1 and October 1 of each year, beginning on April 1, 2011, for both series of senior notes until maturity. The senior notes are unsecured obligations and rank equally in right of payment with all of our other existing and future senior unsecured and unsubordinated indebtedness. There are no subsidiary guarantees of the interest and principal amounts.

A portion of the net proceeds from the senior notes offering was used on September 22, 2010 to repay $350 million outstanding under our credit facility. The net proceeds were used for general corporate purposes, including funding of capital expenditures and were used to fund a portion of the acquisition of Consolidated Thompson and related expenses.

The senior notes may be redeemed any time at our option not less than 30 days nor more than 60 days after prior notice is sent to the holders of the applicable series of notes. The senior notes are redeemable at a redemption price equal to the greater of (1) 100 percent of the principal amount of the notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semi-annual basis at the treasury rate plus 35 basis points with respect to the 2020 senior notes and 40 basis points with respect to the 2040 senior notes, plus, in each case, accrued and unpaid interest to the date of redemption. In addition, if a change of control triggering event occurs with respect to the notes, we will be required to offer to purchase the notes at a purchase price equal to 101 percent of the principal amount, plus accrued and unpaid interest to the date of purchase.

The terms of the senior notes contain certain customary covenants; however, there are no financial covenants.

 

$400 Million Senior Notes Offering

On March 17, 2010, we completed a $400 million public offering of senior notes due March 15, 2020. Interest at a fixed rate of 5.90 percent is payable on March 15 and September 15 of each year, beginning on September 15, 2010, until maturity on March 15, 2020. The senior notes are unsecured obligations and rank equally in right of payment with all of our other existing and future senior unsecured and unsubordinated indebtedness. There are no subsidiary guarantees of the interest and principal amounts.

A portion of the net proceeds from the senior notes offering was used on March 31, 2010 to repay our $200 million term loan under our credit facility, as well as to repay on May 27, 2010 our share of Amapá's remaining debt outstanding of $100.8 million. In addition, we used the remainder of the net proceeds to help fund the acquisitions of Spider and CLCC during the third quarter of 2010.

The senior notes may be redeemed any time at our option not less than 30 days nor more than 60 days after prior notice is sent to the holders of the applicable series of notes. The senior notes are redeemable at a redemption price equal to the greater of (1) 100 percent of the principal amount of the notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semi-annual basis, plus accrued and unpaid interest to the date of redemption. In addition, if a change of control triggering event occurs, we will be required to offer to purchase the notes at a purchase price equal to 101 percent of the principal amount, plus accrued and unpaid interest to the date of purchase.

The terms of the senior notes contain certain customary covenants; however, there are no financial covenants.

$325 Million Private Placement Senior Notes

On June 25, 2008, we entered into a $325 million private placement consisting of $270 million of 6.31 percent Five-Year Senior Notes due June 15, 2013, and $55 million of 6.59 percent Seven-Year Senior Notes due June 15, 2015. Interest is paid on the notes for both tranches on June 15 and December 15 until their respective maturities. The notes are unsecured obligations with interest and principal amounts guaranteed by certain of our domestic subsidiaries. The notes and guarantees were not required to be registered under the Securities Act of 1933, as amended, and were placed with qualified institutional investors. We used the proceeds to repay senior unsecured indebtedness and for general corporate purposes.

The terms of the private placement senior notes contain customary covenants that require compliance with certain financial covenants based on: (1) debt to earnings ratio (Total Funded Debt to Consolidated EBITDA, as those terms are defined in the note purchase agreement, for the preceding four quarters cannot exceed 3.25 to 1.0 on the last day of any fiscal quarter) and (2) interest coverage ratio (Consolidated EBITDA to Interest Expense, as those terms are defined in the note purchase 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 of December 31, 2011 and 2010, we were in compliance with the financial covenants in the note purchase agreement.

Bridge Credit Agreement

On March 4, 2011, we entered into an unsecured bridge credit agreement with a syndicate of banks in order to provide a portion of the financing for the acquisition of Consolidated Thompson. The bridge credit agreement provided for a bridge credit facility with an original maturity date of May 10, 2012. On May 10, 2011, we borrowed $750 million under the bridge credit facility to fund a portion of the cash required upon the consummation of the acquisition of Consolidated Thompson. The borrowings under the bridge credit facility were repaid using a portion of the net proceeds obtained from the public offering of our common shares that was completed on June 13, 2011, and the bridge credit facility was terminated. The borrowings under the bridge credit facility bore interest at a floating rate based upon a base rate or the LIBOR rate plus a margin determined by our credit rating and the length of time the borrowings were outstanding. The weighted average annual interest rate under the bridge credit facility during the time the borrowings were outstanding was 2.56 percent. Refer to NOTE 13 — CAPITAL STOCK for additional information on the public offering of our common shares.

 

Term Loan

On March 4, 2011, we entered into an unsecured term loan agreement with a syndicate of banks in order to provide a portion of the financing for the acquisition of Consolidated Thompson. The term loan agreement provided for a $1.25 billion term loan. The term loan has a maturity date of five years from the date of funding and requires principal payments on each three-month anniversary of the date following the funding. On May 10, 2011, we borrowed $1.25 billion under the term loan agreement to fund a portion of the cash required upon the consummation of the acquisition of Consolidated Thompson. Effective August 11, 2011, we amended the term loan agreement to modify certain definitions, representations, warranties and covenants, including the financial covenants, to conform to certain provisions under the amended credit agreement. In addition, a portion of the $1.75 billion revolving credit facility, provided for under the amended credit agreement, was used to repay $250 million of the outstanding term loan, as discussed above. The $250 million payment was in addition to two scheduled quarterly principal payments totaling $28.0 million, reducing the total outstanding amount under the term loan to $972.0 million, of which $897.2 million is characterized as long-term debt as of December 31, 2011. Borrowings under the term loan bear interest at a floating rate based upon a base rate or the LIBOR rate plus a margin depending on the leverage ratio.

Short-Term Facilities

On March 31, 2010, Cliffs Natural Resources Pty Ltd entered into a A$40 million ($40.8 million) bank contingent instrument facility and cash advance facility to replace the then existing A$40 million multi-option facility, which was extended through June 30, 2011 and subsequently renewed until June 30, 2012. The facility, which is renewable annually at the bank's discretion, provides A$40 million 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 December 31, 2011, the outstanding bank guarantees under this facility totaled A$24.7 million ($25.2 million), thereby reducing borrowing capacity to A$15.3 million ($15.6 million). We have provided a guarantee of the facility, along with certain of our Australian subsidiaries. The facility agreement contains customary covenants that require compliance with certain financial covenants: (1) debt to earnings ratio and (2) interest coverage ratio, both based on the financial performance of the Company on a consolidated basis. As of December 31, 2011 and 2010, we were in compliance with these financial covenants.

Consolidated Thompson Senior Secured Notes

The Consolidated Thompson senior secured notes were included among the liabilities assumed in the acquisition of Consolidated Thompson. On April 13, 2011, we purchased the outstanding Consolidated Thompson senior secured notes directly from the note holders for $125 million, including accrued and unpaid interest. The senior secured notes had a face amount of $100 million, a stated interest rate of 8.5 percent and were scheduled to mature in 2017. The transaction initially was recorded as an investment in Consolidated Thompson senior secured notes during the second quarter of 2011. However, upon the completion of the acquisition of Consolidated Thompson and consolidation into our financial statements, the Consolidated Thompson senior secured notes and our investment in the notes were eliminated as intercompany transactions. During August 2011, Consolidated Thompson, our wholly owned subsidiary, provided for the redemption and release of the Consolidated Thompson senior secured notes, resulting in the cancellation of the notes. Refer to NOTE 4 — ACQUISITIONS AND OTHER INVESTMENTS for additional information.

Consolidated Thompson Convertible Debentures

Included among the liabilities assumed in the acquisition of Consolidated Thompson were the Consolidated Thompson convertible debentures, which, as a result of the acquisition, were able to be converted by their holders into cash in accordance with the cash change-of-control provision of the convertible debenture indenture. The convertible debentures allowed the debenture holders to convert at a premium conversion ratio beginning on the 10th trading day prior to the closing of the acquisition and ending on the 30th day subsequent to the mailing of an offer to purchase the convertible debentures, which was the cash change-of-control conversion period as defined by the convertible debenture indenture. On May 12, 2011, following the closing of the acquisition, Consolidated Thompson commenced the offer to purchase all of the outstanding convertible debentures in accordance with its obligations under the convertible debenture indenture by mailing the offer to purchase to the debenture holders. Additionally, on May 13, 2011, Consolidated Thompson gave notice that it was exercising its right to redeem any convertible debentures that remained outstanding on June 13, 2011, after giving effect to any conversions that occurred during the cash change-of-control conversion period. As previously disclosed, Consolidated Thompson received sufficient consents from the debenture holders, pursuant to a consent solicitation, to amend the convertible debenture indenture to give Consolidated Thompson such a redemption right. As a result of these events, no convertible debentures remain outstanding. Refer to NOTE 4 — ACQUISITIONS AND OTHER INVESTMENTS for additional information.

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 December 31, 2011, these letter of credit obligations totaled $95.0 million. All of these standby letters of credit are outside of the letters of credit provided for under the amended credit agreement.

Debt Maturities

Maturities of debt instruments based on the principal amounts outstanding at December 31, 2011, total approximately $74.8 million in 2012, $369.7 million in 2013, $124.6 million in 2014, $428.8 million in 2015, $299.1 million in 2016 and $2.4 billion thereafter.

Refer to NOTE 6 — FAIR VALUE OF FINANCIAL INSTRUMENTS for further information.

Lease Obligations
Lease Obligations

NOTE 8 — 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 $26.3 million, $24.2 million and $25.5 million in 2011, 2010 and 2009, respectively. Capital lease assets were $406.0 million and $283.2 million at December 31, 2011 and 2010, respectively. Corresponding accumulated amortization of capital leases included in respective allowances for depreciation were $110.6 million and $92.7 million at December 31, 2011 and 2010, respectively.

In October 2011, our North American Coal segment entered into the second phase of the sale-leaseback arrangement initially executed in December 2010 for the sale of the new longwall plow system at our Pinnacle mine in West Virginia. The first and second phases of the leaseback arrangement are for a period of five years. The 2010 sale-leaseback arrangement was specific to the assets at the time of the agreement and did not include the longwall plow system assets. Both phases of the leaseback arrangement have been accounted for as a capital lease. We recorded assets and liabilities under the capital lease of $75.9 million, reflecting the lower of the present value of the minimum lease payments or the fair value of the asset.

 

Future minimum payments under capital leases and non-cancellable operating leases at December 31, 2011 are as follows:

 

     (In Millions)  
     Capital
Leases
    Operating
Leases
 

2012

   $ 87.1      $ 24.2   

2013

     60.2        23.9   

2014

     55.2        18.9   

2015

     44.0        12.0   

2016

     28.9        7.8   

2017 and thereafter

     73.4        25.0   
  

 

 

   

 

 

 

Total minimum lease payments

   $ 348.8      $ 111.8   
    

 

 

 

Amounts representing interest

     64.2     
  

 

 

   

Present value of net minimum lease payments

   $ 284.6 (1)   
  

 

 

   

Total minimum capital lease payments of $348.8 million include $161.0 million for our Asia Pacific Iron Ore segment, $105.5 million for our Eastern Canadian Iron Ore Segment, $71.6 million for our North American Coal segment, $9.7 million for our U.S. Iron Ore segment and $1.0 million for our Corporate segment, respectively. Total minimum operating lease payments of $111.8 million include $40.4 million for our U.S. Iron Ore segment, $22.0 million for our Asia Pacific Iron Ore segment, $38.7 million for Corporate and $10.7 million for our Eastern Canadian Iron Ore, North American Coal and Other segments.

Environmental And Mine Closure Obligations
Environmental And Mine Closure Obligations

NOTE 9 — ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS

We had environmental and mine closure liabilities of $235.7 million and $199.1 million at December 31, 2011 and 2010, respectively. Payments in 2011 were $1.9 million compared with $10.6 million in 2010. The following is a summary of the obligations at December 31, 2011 and 2010:

 

     (In Millions)  
     December 31,  
     2011      2010  

Environmental

   $ 15.5       $ 13.7   

Mine closure

     

LTVSMC

     16.5         17.1   

Operating mines:

     

U.S Iron Ore

     74.3         62.7   

Eastern Canadian Iron Ore

     68.0         49.3   

North American Coal

     36.3         34.7   

Asia Pacific Iron Ore

     16.3         15.4   

Other

     8.8         6.2   
  

 

 

    

 

 

 

Total mine closure

     220.2         185.4   
  

 

 

    

 

 

 

Total environmental and mine closure obligations

     235.7         199.1   

Less current portion

     13.7         14.2   
  

 

 

    

 

 

 

Long term environmental and mine closure obligations

   $ 222.0       $ 184.9   
  

 

 

    

 

 

 

Environmental

Our mining and exploration activities are subject to various laws and regulations governing the protection of the environment. We conduct our operations to protect the public health and environment and believe our operations are in compliance with applicable laws and regulations in all material respects. Our environmental liabilities of $15.5 million and $13.7 million at December 31, 2011 and 2010, respectively, including obligations for known environmental remediation exposures at various active and closed mining operations and other sites, have been recognized based on the estimated cost of investigation and remediation at each site. If the cost only can be estimated as a range of possible amounts with no specific amount being more likely, the minimum of the range is accrued. Future expenditures are not discounted unless the amount and timing of the cash disbursements readily are known. Potential insurance recoveries have not been reflected. Additional environmental obligations could be incurred, the extent of which cannot be assessed.

As discussed in further detail below, the environmental liability recorded at December 31, 2011 and 2010 primarily is comprised of remediation obligations related to the Rio Tinto mine site in Nevada where we are named as a PRP.

The Rio Tinto Mine Site

The Rio Tinto Mine Site is a historic underground copper mine located near Mountain City, Nevada, where tailings were placed in Mill Creek, a tributary to the Owyhee River. Site investigation and remediation work is being conducted in accordance with a Consent Order between the Nevada DEP and the RTWG composed of Cliffs, Atlantic Richfield Company, Teck Cominco American Incorporated, and E. I. du Pont de Nemours and Company. The Consent Order provides for technical review by the U.S. Department of the Interior Bureau of Indian Affairs, the U.S. Fish & Wildlife Service, U.S. Department of Agriculture Forest Service, the NDEP and the Shoshone-Paiute Tribes of the Duck Valley Reservation (collectively, "Rio Tinto Trustees"). The Consent Order is currently projected to continue with the objective of supporting the selection of the final remedy for the site. Costs are shared pursuant to the terms of a Participation Agreement between the parties of the RTWG, who have reserved the right to renegotiate any future participation or cost sharing following the completion of the Consent Order.

The Rio Tinto Trustees have made available for public comment their plans for the assessment of NRD. The RTWG commented on the plans and also are in discussions with the Rio Tinto Trustees informally about those plans. The notice of plan availability is a step in the damage assessment process. The studies presented in the plan may lead to a NRD claim under CERCLA. There is no monetized NRD claim at this time.

The focus of the RTWG has been on development of alternatives for remediation of the mine site. A draft of the alternative studies was reviewed with NDEP, the EPA and the Rio Tinto Trustees, and such alternatives have been reduced to the following: (1) tailings stabilization and long-term water treatment; and (2) removal of the tailings. As of December 31, 2011, the estimated costs of the available remediation alternatives currently range from approximately $10.0 million to $30.5 million in total for all potentially responsible parties. In recognition of the potential for an NRD claim, the parties are actively pursuing a global settlement that would include the EPA and encompass both the remedial action and the NRD issues. We are working to finalize the Consent Decree and the remaining documents. While a global settlement with the EPA has not been finalized, we expect an agreement will be reached in early 2012.

On May 29, 2009, the RTWG entered into a Rio Tinto Mine Site Work and Cost Allocation Agreement (the "Allocation Agreement") to resolve differences over the allocation of any negotiated remedy. The Allocation Agreement contemplates that the RTWG will enter into an insured fixed-price cleanup or IFC, pursuant to which a contractor would assume responsibility for the implementation and funding of the remedy in exchange for a fixed price. We are obligated to fund 32.5 percent of the IFC. In the event an IFC is not implemented, the RTWG has agreed on allocation percentages in the Allocation Agreement, with Cliffs being committed to fund 32.5 percent of any remedy. We have an environmental liability of $10.0 million and $9.2 million in the Statements of Consolidated Financial Position as of December 31, 2011 and 2010, respectively, related to this issue.

Mine Closure

Our mine closure obligation of $220.2 million and $185.4 million at December 31, 2011 and 2010, respectively, includes our four consolidated U.S. operating iron ore mines, our two Eastern Canadian operating iron ore mines, our six operating North American coal mines, our Asia Pacific operating iron ore mines, the coal mine at Sonoma and a closed operation formerly known as LTVSMC.

 

Management periodically performs an assessment of the obligation to determine the adequacy of the liability in relation to the closure activities still required at the LTVSMC site. The LTVSMC closure liability was $16.5 million and $17.1 million at December 31, 2011 and 2010, respectively.

The accrued closure obligation for our active mining operations provides for contractual and legal obligations associated with the eventual closure of the mining operations. We performed a detailed assessment of our asset retirement obligations related to our active mining locations most recently in 2011, expect for Asia Pacific Iron Ore, in accordance with our accounting policy, which requires us to perform an in-depth evaluation of the liability every three years in addition to routine annual assessments. The assessment for Asia Pacific Iron Ore was delayed until 2012 due to new legislation in Australia. For the assessments performed in 2011, we determined the obligations based on detailed estimates adjusted for factors that a market participant would consider (i.e., inflation, overhead and profit), escalated at an assumed 3.5 percent rate of inflation to the estimated closure dates, and then discounted using the current credit-adjusted risk-free interest rate based on the corresponding life of mine. The estimate also incorporates incremental increases in the closure cost estimates and changes in estimates of mine lives. The closure date for each location was determined based on the exhaustion date of the remaining iron ore reserves. 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 years ended December 31, 2011 and 2010:

 

     (In Millions)  
     December 31,  
     2011     2010  

Asset retirement obligation at beginning of period

   $ 168.3      $ 103.9   

Accretion expense

     16.1        13.1   

Exchange rate changes

     0.1        2.5   

Revision in estimated cash flows

     5.9        1.0   

Payments

     (0.7     (8.4

Acquired through business combinations

     14.0        56.2   
  

 

 

   

 

 

 

Asset retirement obligation at end of period

   $ 203.7      $ 168.3   
  

 

 

   

 

 

 
Pensions And Other Postretirement Benefits
Pensions And Other Postretirement Benefits

NOTE 10 — PENSIONS AND OTHER POSTRETIREMENT BENEFITS

We offer defined benefit pension plans, defined contribution pension plans and other postretirement benefit plans, primarily consisting of retiree healthcare benefits, to most employees in North America as part of a total compensation and benefits program. This includes employees of CLCC who became employees of the Company through the July 2010 acquisition. Upon the acquisition of the remaining 73.2 percent interest in Wabush in February 2010, we fully consolidated the related Canadian plans into our pension and OPEB obligations. We do not have employee retirement benefit obligations at our Asia Pacific Iron Ore operations. The defined benefit pension plans largely are noncontributory and benefits generally are based on employees' years of service and average earnings for a defined period prior to retirement or a minimum formula.

On October 6, 2008, the USW ratified four-year labor contracts, which replaced the labor agreements that expired on September 1, 2008. The agreements cover approximately 2,400 USW-represented employees at our Empire and Tilden mines in Michigan and our United Taconite and Hibbing mines in Minnesota, or 32 percent of our total workforce. The changes enhanced the minimum pension formula by increasing the benefit dollar multipliers and renewed the lump sum special payments for certain employees retiring in the near future. The changes also included renewal of payments to surviving spouses of certain retirees. These agreements are effective through August 31, 2012.

In addition, we currently provide various levels of retirement health care and OPEB to most full-time employees who meet certain length of service and age requirements (a portion of which are pursuant to collective bargaining agreements). Most plans require retiree contributions and have deductibles, co-pay requirements and benefit limits. Most bargaining unit plans require retiree contributions and co-pays for major medical and prescription drug coverage. There is an annual limit on our cost for medical coverage under the U.S. salaried plans. The annual limit applies to each covered participant and equals $7,000 for coverage prior to age 65 and $3,000 for coverage after age 65, with the retiree's participation adjusted based on the age at which the retiree's benefits commence. For participants at our Northshore operation, the annual limit ranges from $4,020 to $4,500 for coverage prior to age 65, and equals $2,000 for coverage after age 65. Covered participants pay an amount for coverage equal to the excess of (i) the average cost of coverage for all covered participants, over (ii) the participant's individual limit, but in no event will the participant's cost be less than 15 percent of the average cost of coverage for all covered participants. For Northshore participants, the minimum participant cost is a fixed dollar amount. We do not provide OPEB for most U.S. salaried employees hired after January 1, 1993. OPEB are provided through programs administered by insurance companies whose charges are based on benefits paid.

Our North American Coal segment is required under an agreement with the UMWA to pay amounts into the UMWA pension trusts based principally on hours worked by UMWA-represented employees. This agreement covers 810 UMWA-represented employees at our Pinnacle Complex in West Virginia and our Oak Grove mine in Alabama, or 11 percent of our total workforce. These multi-employer pension trusts provide benefits to eligible retirees through a defined benefit plan. The UMWA 1993 Benefit Plan is a defined contribution plan that was created as the result of negotiations for the NBCWA of 1993. The plan provides healthcare insurance to orphan UMWA retirees who are not eligible to participate in the UMWA Combined Benefit Fund or the 1992 Benefit Fund or whose last employer signed the 1993 or later NBCWA and who subsequently goes out of business. Contributions to the trust were at rates of $6.50, $6.42 and $5.27 per hour worked in 2011, 2010 and 2009, respectively. These amounted to $9.5 million, $10.3 million and $6.1 million in 2011, 2010 and 2009, respectively.

Pursuant to the four-year labor agreements reached with the USW for U.S. employees, effective January 1, 2009, negotiated plan changes removed the cap on our share of future bargaining unit retirees' healthcare premiums and provided a maximum on the amount retirees will contribute for health care benefits during the term of the respective agreement. The agreements also provide that we and our partners fund an estimated $90 million into bargaining unit pension plans and VEBAs during the term of the agreements.

In December 2003, The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 was enacted. This act introduced a prescription drug benefit under Medicare Part D as well as a federal subsidy to sponsors of retiree healthcare benefit plans that provide a benefit that at least actuarially is equivalent to Medicare Part D. Our measures of the accumulated postretirement benefit obligation and net periodic postretirement benefit cost as of December 31, 2004 and for periods thereafter reflect amounts associated with the subsidy. We elected to adopt the retroactive transition method for recognizing the OPEB cost reduction in 2004. The following table summarizes the annual costs related to the retirement plans for 2011, 2010 and 2009:

 

     (In Millions)  
     2011      2010      2009  

Defined benefit pension plans

   $ 37.8       $ 45.6       $ 50.8   

Defined contribution pension plans

     5.7         4.2         2.1   

Other postretirement benefits

     26.8         24.2         25.5   
  

 

 

    

 

 

    

 

 

 

Total

   $ 70.3       $ 74.0       $ 78.4   
  

 

 

    

 

 

    

 

 

 

The following tables and information provide additional disclosures for our consolidated plans.

 

Obligations and Funded Status

The following tables and information provide additional disclosures for the years ended December 31, 2011 and 2010:

     (In Millions)  
     Pension Benefits     Other Benefits  

Change in benefit obligations:

   2011     2010     2011     2010  

Benefit obligations — beginning of year

   $ 1,022.3      $ 750.8      $ 440.2      $ 333.0   

Service cost (excluding expenses)

     23.6        18.5        11.1        7.5   

Interest cost

     51.4        52.9        22.3        22.0   

Plan amendments

     —          3.7        —          —     

Actuarial loss

     117.3        57.5        36.5        43.6   

Benefits paid

     (67.3     (67.0     (25.5     (28.2

Participant contributions

     —          —          4.6        6.2   

Federal subsidy on benefits paid

     —          —          0.9        0.9   

Exchange rate gain

     (5.9     10.2        (1.7     2.9   

Acquired through business combinations

     —          195.7        —          52.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Benefit obligations — end of year

   $ 1,141.4      $ 1,022.3      $ 488.4      $ 440.2   
  

 

 

   

 

 

   

 

 

   

 

 

 

Change in plan assets:

                        

Fair value of plan assets — beginning of year

   $ 734.3      $ 483.4      $ 174.2      $ 136.7   

Actual return on plan assets

     10.8        87.1        1.9        20.1   

Participant contributions

     —          —          1.6        1.6   

Employer contributions

     70.1        45.6        23.2        23.7   

Asset transfers

     —          —          —          —     

Benefits paid

     (67.3     (67.0     (7.4     (7.9

Exchange rate gain

     (3.8     8.9        —          —     

Acquired through business combinations

     —          176.3        —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Fair value of plan assets — end of year

   $ 744.1      $ 734.3      $ 193.5      $ 174.2   
  

 

 

   

 

 

   

 

 

   

 

 

 

Funded status at December 31:

                        

Fair value of plan assets

   $ 744.1      $ 734.3      $ 193.5      $ 174.2   

Benefit obligations

     (1,141.4     (1,022.3     (488.4     (440.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Funded status (plan assets less benefit obligations)

   $ (397.3   $ (288.0   $ (294.9   $ (266.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Amount recognized at December 31

   $ (397.3   $ (288.0   $ (294.9   $ (266.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts recognized in Statements of Financial Position:

                        

Current liabilities

   $ (2.6   $ (3.1   $ (23.8   $ (22.9

Noncurrent liabilities

     (394.7     (284.9     (271.1     (243.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Net amount recognized

   $ (397.3   $ (288.0   $ (294.9   $ (266.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts recognized in accumulated other comprehensive income:

                        

Net actuarial loss

   $ 409.1      $ 269.3      $ 182.9      $ 152.3   

Prior service cost

     18.8        24.2        8.1        11.8   

Transition asset

     —          —          (3.0     (5.7
  

 

 

   

 

 

   

 

 

   

 

 

 

Net amount recognized

   $ 427.9      $ 293.5      $ 188.0      $ 158.4   
  

 

 

   

 

 

   

 

 

   

 

 

 

The estimated amounts that will be amortized from accumulated other
comprehensive income into net periodic benefit cost in 2012:

                        

Net actuarial loss

   $ 29.5        $ 11.4     

Prior service cost

     3.9          3.0     

Transition asset

     —            (3.0  
  

 

 

     

 

 

   

Net amount recognized

   $ 33.4        $ 11.4     
  

 

 

     

 

 

   

 

 

     (In Millions)  
     2011  
     Pension Plans     Other Benefits  
     Salaried     Hourly     Mining     SERP     Total     Salaried     Hourly     Total  

Fair value of plan assets

   $ 289.1      $ 451.8      $ 3.2        $—        $ 744.1      $ —        $ 193.5      $ 193.5   

Benefit obligation

     (419.3     (708.0     (5.3     (8.8     (1,141.4     (70.7     (417.7     (488.4

Funded status

   $ (130.2   $ (256.2   $ (2.1   $ (8.8   $ (397.3   $ (70.7   $ (224.2   $ (294.9
     2010  
     Pension Plans     Other Benefits  
     Salaried     Hourly     Mining     SERP     Total     Salaried     Hourly     Total  

Fair value of plan assets

   $ 275.3      $ 456.7      $ 2.3        $—        $ 734.3      $ —        $ 174.2      $ 174.2   

Benefit obligation

     (373.8     (635.3     (4.4     (8.8     (1,022.3     (63.7     (376.5     (440.2

Funded status

   $ (98.5   $ (178.6   $ (2.1   $ (8.8   $ (288.0   $ (63.7   $ (202.3   $ (266.0

The accumulated benefit obligation for all defined benefit pension plans was $1,114.7 million and $997.2 million at December 31, 2011 and 2010, respectively. The increase in the accumulated benefit obligation primarily is a result of a decrease in the discount rates and actual asset returns lower than the previously assumed rate.

Components of Net Periodic Benefit Cost

 

     (In Millions)  
     Pension Benefits     Other Benefits  
     2011     2010     2009     2011     2010     2009  

Service cost

   $ 23.6      $ 18.5      $ 14.3      $ 11.1      $ 7.5      $ 5.4   

Interest cost

     51.4        52.9        42.6        22.3        22.0        18.9   

Expected return on plan assets

     (61.2     (53.3     (37.1     (16.1     (12.9     (9.1

Amortization:

            

Net asset

     —          —          —          (3.0     (3.0     (3.0

Prior service costs (credits)

     4.4        4.4        4.2        3.7        1.7        1.8   

Net actuarial loss

     19.6        23.1        26.8        8.8        8.9        11.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic benefit cost

   $ 37.8      $ 45.6      $ 50.8      $ 26.8      $ 24.2      $ 25.5   

Acquired through business combinations

     —          17.7        —          —          2.4        —     

Current year actuarial (gain)/loss

     165.3        (3.1     12.1        46.8        34.6        2.2   

Amortization of net loss

     (19.6     (23.1     (26.8     (8.8     (8.9     (11.5

Current year prior service cost

     —          3.7        3.0        —          —          —     

Amortization of prior service (cost) credit

     (4.4     (4.4     (4.2     (3.7     (1.7     (1.8

Amortization of transition asset

     —          —          —          3.0        3.0        3.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recognized in other comprehensive income

   $ 141.3      $ (9.2   $ (15.9   $ 37.3      $ 29.4      $ (8.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recognized in net periodic cost and other comprehensive income

   $ 179.1      $ 36.4      $ 34.9      $ 64.1      $ 53.6      $ 17.4   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Additional Information

 

    (In Millions)  
    Pension Benefits     Other Benefits  
    2011     2010     2009     2011     2010     2009  

Effect of change in mine ownership & noncontrolling interest

  $ 53.3      $ 49.9      $ 50.9      $ 12.5      $ 10.7      $ 10.1   

Actual return on plan assets

    10.8        87.1        63.0        1.9        20.1        27.8   

 

Assumptions

For our U.S. plans, we used a discount rate as of December 31, 2011 of 4.28 percent, compared with a discount rate of 5.11 percent as of December 31, 2010. The U.S. discount rates are determined by matching the projected cash flows used to determine the PBO and APBO to a projected yield curve of over 425 Aa graded bonds in the 10th to 90th percentiles. These bonds are either noncallable or callable with make-whole provisions. The duration matching produced rates ranging from 4.12 percent to 4.43 percent for our plans. Based upon these results, we selected a December 31, 2011 discount rate of 4.28 percent for our plans.

For our Canadian plans, we used a discount rate as of December 31, 2011 of 4.00 percent for the pension plans and 4.25 percent for the other postretirement benefit plans. Similar to the U.S. plans, the Canadian discount rates are determined by matching the projected cash flows used to determine the PBO and APBO to a projected yield curve of over 225 corporate bonds in the 10th to 90th percentiles. The corporate bonds are either Aa graded, or (for maturities of 10 or more years) A or Aaa graded with an appropriate credit spread adjustment. These bonds are either noncallable or callable with make whole provisions.

Weighted-average assumptions used to determine benefit obligations at December 31 were:

 

     Pension Benefits     Other Benefits  
       2011         2010         2011         2010    

U.S. plan discount rate

     4.28     5.11     4.28     5.11

Canadian plan discount rate

     4.00        5.00        4.25        5.00   

Rate of compensation increase

     4.00        4.00        4.00        4.00   

U.S. expected return on plan assets

     8.25        8.50        8.25        8.50   

Canadian expected return on plan assets

     7.25        7.50        7.25        7.50   

Weighted-average assumptions used to determine net benefit cost for the years 2011, 2010 and 2009 were:

 

     Pension Benefits     Other Benefits  
     2011     2010     2009     2011     2010     2009  

U.S. plan discount rate

     5.11     5.66     6.00     5.11     5.66     6.00

Canadian plan discount rate

     5.00        5.75/5.50 (2)      (1     5.00        6.00/5.75 (3)      (1

U.S. expected return on plan assets

     8.50        8.50        8.50        8.50        8.50        8.50   

Canadian expected return on plan assets

     7.50        7.50        (1     7.50        7.50        (1

Rate of compensation increase

     4.00        4.00        4.00        4.00        4.00        4.00   

(1) The Canadian plans were not consolidated into our pension and OPEB obligations prior to the acquisition of the remaining 73.2 percent interest in Wabush in February 2010.

 

(2) 5.75% from January 1, 2010 through January 31, 2010, and 5.50% from February 1, 2010 through December 31, 2010.

 

(3) 6.00% from January 1, 2010 through January 31, 2010, and 5.75% from February 1, 2010 through December 31, 2010.

Assumed health care cost trend rates at December 31 were:

 

     2011     2010  

U.S. plan health care cost trend rate assumed for next year

     7.50     8.00

Canadian plan health care cost trend rate assumed for next year

     8.00        8.50   

Ultimate health care cost trend rate

     5.00        5.00   

U.S. plan year that the ultimate rate is reached

     2017        2017   

Canadian plan year that the ultimate rate is reached

     2018        2018   

 

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A change of one percentage point in assumed health care cost trend rates would have the following effects:

 

     (In Millions)  
     Increase      Decrease  

Effect on total of service and interest cost

   $ 5.7       $ (4.4

Effect on postretirement benefit obligation

     60.0         (48.3

Plan Assets

Our financial objectives with respect to our pension and VEBA plan assets are to fully fund the actuarial accrued liability for each of the plans, to maximize investment returns within reasonable and prudent levels of risk, and to maintain sufficient liquidity to meet benefit obligations on a timely basis.

Our investment objective is to outperform the expected Return on Asset ("ROA") assumption used in the plans' actuarial reports over a full market cycle, which is considered a period during which the U.S. economy experiences the effects of both an upturn and a downturn in the level of economic activity. In general, these periods tend to last between three and five years. The expected ROA takes into account historical returns and estimated future long-term returns based on capital market assumptions applied to the asset allocation strategy.

The asset allocation strategy is determined through a detailed analysis of assets and liabilities by plan, which defines the overall risk that is acceptable with regard to the expected level and variability of portfolio returns, surplus (assets compared to liabilities), contributions and pension expense.

The asset allocation review process involves simulating the effect of financial market performance for various asset allocation scenarios and factoring in the current funded status and likely future funded status levels by taking into account expected growth or decline in the contributions over time. The modeling is then adjusted by simulating unexpected changes in inflation and interest rates. The process also includes quantifying the effect of investment performance and simulated changes to future levels of contributions, determining the appropriate asset mix with the highest likelihood of meeting financial objectives and regularly reviewing our asset allocation strategy.

The asset allocation strategy varies by plan. The following table reflects the actual asset allocations for pension and VEBA plan assets as of December 31, 2011 and 2010, as well as the 2012 weighted average target asset allocations as of December 31, 2011. Equity investments include securities in large-cap, mid-cap and small-cap companies located in the U.S. and worldwide. Fixed income investments primarily include corporate bonds and government debt securities. Alternative investments include hedge funds, private equity, structured credit and real estate.

 

     Pension Assets     VEBA Assets  

Asset Category

   2012
Target
Allocation
    Percentage of
Plan Assets at
December 31,
    2012
Target

Allocation
    Percentage of
Plan Assets at
December 31,
 
     2011     2010       2011     2010  

Equity securities

     43.1     41.7     42.0     41.8     42.0     44.4

Fixed income

     30.2        31.1        30.6        32.1        33.5        37.4   

Hedge funds

     13.8        13.5        14.4        14.9        14.6        13.8   

Private equity

     5.3        5.2        5.0        6.2        4.5        4.3   

Structured credit

     3.8        6.0        5.4        —          —          —     

Real estate

     3.8        2.2        2.1        5.0        5.3        —     

Cash

     —          0.3        0.5        —          0.1        0.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     100.0     100.0     100.0     100.0     100.0     100.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Pension

The fair values of our pension plan assets at December 31, 2011 and 2010 by asset category are as follows:

 

     (In Millions)  
     December 31, 2011  

Asset Category

   Quoted Prices in Active
Markets for Identical
Assets/Liabilities
(Level 1)
     Significant Other
Observable
Inputs

(Level 2)
     Significant
Unobservable
Inputs

(Level 3)
     Total  

Equity securities:

           

U.S. large-cap

   $ 191.1       $    —         $    —         $ 191.1   

U.S. small/mid-cap

     29.2         —           —           29.2   

International

     90.0         —           —           90.0   

Fixed income

     231.1         —           —           231.1   

Hedge funds

     —           —           100.7         100.7   

Private equity

     8.6         —           30.1         38.7   

Structured credit

     —           —           44.9         44.9   

Real estate

     —           —           16.5         16.5   

Cash

     1.9         —           —           1.9   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 551.9       $ —         $ 192.2       $ 744.1   
  

 

 

    

 

 

    

 

 

    

 

 

 
     (In Millions)  
     December 31, 2010  

Asset Category

   Quoted Prices in Active
Markets for Identical
Assets/Liabilities
(Level 1)
     Significant  Other
Observable
Inputs

(Level 2)
     Significant
Unobservable
Inputs

(Level 3)
     Total  

Equity securities:

           

U.S. large-cap

   $ 122.4       $    —         $    —         $ 122.4   

U.S. small/mid-cap

     21.7         —           —           21.7   

International

     164.5         —           —           164.5   

Fixed income

     224.7         —           —           224.7   

Hedge funds

     —           —           105.8         105.8   

Private equity

     11.8         —           25.0         36.8   

Structured credit

     —           —           39.7         39.7   

Real estate

     —           —           15.5         15.5   

Cash

     3.2         —           —           3.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 548.3       $ —         $ 186.0       $ 734.3   
  

 

 

    

 

 

    

 

 

    

 

 

 

Following is a description of the inputs and valuation methodologies used to measure the fair value of our plan assets.

Equity Securities

Equity securities classified as Level 1 investments include U.S. large, small and mid-cap investments and international equity. These investments are comprised of securities listed on an exchange, market or automated quotation system for which quotations are readily available. The valuation of these securities is determined using a market approach, and is based upon unadjusted quoted prices for identical assets in active markets.

Fixed Income

Fixed income securities classified as Level 1 investments include bonds and government debt securities. These investments are comprised of securities listed on an exchange, market or automated quotation system for which quotations are readily available. The valuation of these securities is determined using a market approach, and is based upon unadjusted quoted prices for identical assets in active markets.

Hedge Funds

Hedge funds are alternative investments comprised of direct or indirect investment in offshore hedge funds of funds with an investment objective to achieve an attractive risk-adjusted return with moderate volatility and moderate directional market exposure over a full market cycle. The valuation techniques used to measure fair value attempt to maximize the use of observable inputs and minimize the use of unobservable inputs. Considerable judgment is required to interpret the factors used to develop estimates of fair value. Valuations of the underlying investment funds are obtained and reviewed. The securities that are valued by the funds are interests in the investment funds and not the underlying holdings of such investment funds. Thus, the inputs used to value the investments in each of the underlying funds may differ from the inputs used to value the underlying holdings of such funds.

In determining the fair value of a security, the fund managers may consider any information that is deemed relevant, which may include one or more of the following factors regarding the portfolio security, if appropriate: type of security or asset; cost at the date of purchase; size of holding; last trade price; most recent valuation; fundamental analytical data relating to the investment in the security; nature and duration of any restriction on the disposition of the security; evaluation of the factors that influence the market in which the security is purchased or sold; financial statements of the issuer; discount from market value of unrestricted securities of the same class at the time of purchase; special reports prepared by analysts; information as to any transactions or offers with respect to the security; existence of merger proposals or tender offers affecting the security; price and extent of public trading in similar securities of the issuer or compatible companies and other relevant matters; changes in interest rates; observations from financial institutions; domestic or foreign government actions or pronouncements; other recent events; existence of shelf registration for restricted securities; existence of any undertaking to register the security; and other acceptable methods of valuing portfolio securities.

Hedge fund investments in the SEI Opportunity Collective Fund are valued monthly and recorded on a one-month lag; investments in the SEI Special Situations Fund are valued quarterly. For alternative investment values reported on a lag, current market information is reviewed for any material changes in values at the reporting date. Share repurchases for the SEI Opportunity Collective Fund are available quarterly with notice of 65 business days. For the SEI Special Situations Fund, redemption requests are considered semi-annually subject to notice of 95 days; however, share repurchases are not permitted for a two-year lock-up period following investment, which will expire in April 2012 for the plans' initial investments.

Private Equity Funds

Private equity funds are alternative investments that represent direct or indirect investments in partnerships, venture funds or a diversified pool of private investment vehicles (fund of funds).

Investment commitments are made in private equity funds of funds based on an asset allocation strategy, and capital calls are made over the life of the funds to fund the commitments. Until commitments are funded, the committed amount is reserved and invested in a selection of public equity mutual funds, including U.S. large-, small- and mid-cap investments and international equity, designed to approximate overall equity market returns. As of December 31, 2011, remaining commitments total $13.0 million, of which $10.5 million is reserved for both our pension and other benefits. Refer to the valuation methodologies for equity securities above for further information.

The valuation of investments in private equity funds of funds initially is performed by the underlying fund managers. In determining the fair value, the fund managers may consider any information that is deemed relevant, which may include: type of security or asset; cost at the date of purchase; size of holding; last trade price; most recent valuation; fundamental analytical data relating to the investment in the security; nature and duration of any restriction on the disposition of the security; evaluation of the factors that influence the market in which the security is purchased or sold; financial statements of the issuer; discount from market value of unrestricted securities of the same class at the time of purchase; special reports prepared by analysts; information as to any transactions or offers with respect to the security; existence of merger proposals or tender offers affecting the security; price and extent of public trading in similar securities of the issuer or compatible companies and other relevant matters; changes in interest rates; observations from financial institutions; domestic or foreign government actions or pronouncements; other recent events; existence of shelf registration for restricted securities; existence of any undertaking to register the security; and other acceptable methods of valuing portfolio securities.

The valuations are obtained from the underlying fund managers, and the valuation methodology and process is reviewed for consistent application and adherence to policies. Considerable judgment is required to interpret the factors used to develop estimates of fair value.

Private equity investments are valued quarterly and recorded on a one-quarter lag. For alternative investment values reported on a lag, current market information is reviewed for any material changes in values at the reporting date. Capital distributions for the funds do not occur on a regular frequency. Liquidation of these investments would require sale of the partnership interest.

Structured Credit

Structured credit investments are alternative investments comprised of collateralized debt obligations and other structured credit investments that are priced based on valuations provided by independent, third-party pricing agents, if available. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value structured credit investments at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value of such securities. Such methodologies generally consider such factors as security prices, yields, maturities, call features, ratings and developments relating to specific securities in arriving at valuations. Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available are valued at the last quoted sale price on the primary exchange or market on which they are traded. Debt obligations with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

Structured credit investments are valued monthly and recorded on a one-month lag. For alternative investment values reported on a lag, current market information is reviewed for any material changes in values at the reporting date. Redemption requests are considered quarterly subject to notice of 90 days.

Real Estate

The real estate portfolio for the pension plans is an alternative investment comprised of three funds with strategic categories of real estate investments. All real estate holdings are appraised externally at least annually, and appraisals are conducted by reputable, independent appraisal firms that are members of the Appraisal Institute. All external appraisals are performed in accordance with the Uniform Standards of Professional Appraisal Practices. The property valuations and assumptions of each property are reviewed quarterly by the investment advisor and values are adjusted if there has been a significant change in circumstances relating to the property since the last external appraisal. The valuation methodology utilized in determining the fair value is consistent with the best practices prevailing within the real estate appraisal and real estate investment management industries, including the Real Estate Information Standards, and standards promulgated by the National Council of Real Estate Investment Fiduciaries, the National Association of Real Estate Investment Fiduciaries, and the National Association of Real Estate Managers. In addition, the investment advisor may cause additional appraisals to be performed. Two of the funds' fair values are updated monthly, and there is no lag in reported values. Redemption requests for these two funds are considered on a quarterly basis, subject to notice of 45 days.

Effective October 1, 2009, one of the real estate funds began an orderly wind-down over a three to four year period. The decision to wind down the fund primarily was driven by real estate market factors that adversely affected the availability of new investor capital. Third-party appraisals of this fund's assets were eliminated; however, internal valuation updates for all assets and liabilities of the fund are prepared quarterly. The fund's asset values are recorded on a one-quarter lag, and current market information is reviewed for any material changes in values at the reporting date. Distributions from sales of properties will be made on pro-rata basis. Repurchase requests will not be honored during the wind-down period.

 

During 2011, a new real estate fund of funds investment was added for the Empire, Tilden, Hibbing and United Taconite VEBA plans as a result of the asset allocation review process. This fund invests in pooled investment vehicles that in turn invest in commercial real estate properties. Valuations are performed quarterly and financial statements are prepared on a semi-annual basis, with annual audited statements. Asset values for this fund are reported with a one-quarter lag and current market information is reviewed for any material changes in values at the reporting date. In most cases, values are based on valuations reported by underlying fund managers or other independent third-party sources, but the fund has discretion to use other valuation methods, subject to compliance with ERISA. Valuations are typically estimates only and subject to upward or downward revision based on each underlying fund's annual audit. Withdrawals are permitted on the last business day of each quarter subject to a 65-day prior written notice.

The following represents the effect of fair value measurements using significant unobservable inputs (Level 3) on changes in plan assets for the years ended December 31, 2011 and 2010:

 

     (In Millions)  
     Year Ended December 31, 2011  
     Hedge Funds     Private Equity
Funds
    Structured
Credit Fund
     Real
Estate
    Total  

Beginning balance — January 1, 2011

   $ 105.8      $ 25.0      $ 39.7       $ 15.5      $ 186.0   

Actual return on plan assets:

           

Relating to assets still held at the reporting date

     (2.4     2.6        5.2         1.6        7.0   

Relating to assets sold during the period

     0.5        3.0        —           0.5        4.0   

Purchases

     35.8        4.4        —           —          40.2   

Sales

     (39.0     (4.9     —           (1.1     (45.0
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Ending balance — December 31, 2011

   $ 100.7      $ 30.1      $ 44.9       $ 16.5      $ 192.2   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 
     (In Millions)  
     Year Ended December 31, 2010  
     Hedge Funds      Private Equity
Funds
     Structured
Credit Fund
     Real
Estate
    Total  

Beginning balance — January 1, 2010

   $ 71.4       $ 18.2       $ 39.1       $ 14.4      $ 143.1   

Acquired through business combination

     17.0         —           —           —          17.0   

Actual return on plan assets:

             

Relating to assets still held at the reporting date

     2.4         3.4         0.5         1.5        7.8   

Relating to assets sold during the period

     —           0.1         —           —          0.1   

Purchases, sales and settlements

     15.0         3.3         0.1         (0.4     18.0   

Transfers in (out) of Level 3

     —           —           —           —          —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Ending balance — December 31, 2010

   $ 105.8       $ 25.0       $ 39.7       $ 15.5      $ 186.0   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

The expected return on plan assets takes into account historical returns and the weighted average of estimated future long-term returns based on capital market assumptions for each asset category. The expected return is net of investment expenses paid by the plans.

 

VEBA

Assets for other benefits include VEBA trusts pursuant to bargaining agreements that are available to fund retired employees' life insurance obligations and medical benefits. The fair values of our other benefit plan assets at December 31, 2011 and 2010 by asset category are as follows:

 

     (In Millions)  
     December 31, 2011  

Asset Category

   Quoted Prices in Active
Markets for Identical
Assets/Liabilities
(Level 1)
     Significant Other
Observable
Inputs

(Level 2)
     Significant
Unobservable
Inputs

(Level 3)
     Total  

Equity securities:

           

U.S. large-cap

   $ 46.5       $  —         $ —         $ 46.5   

U.S. small/mid-cap

     7.9         —           —           7.9   

International

     26.8         —           —           26.8   

Fixed income

     64.9         —           —           64.9   

Hedge funds

     —           —           28.3         28.3   

Private equity

     1.9         —           6.8         8.7   

Real estate

     —           —           10.2         10.2   

Cash

     0.2         —           —           0.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 148.2       $ —         $ 45.3       $ 193.5   
  

 

 

    

 

 

    

 

 

    

 

 

 
     (In Millions)  
     December 31, 2010  

Asset Category

   Quoted Prices in Active
Markets for Identical
Assets/Liabilities
(Level 1)
     Significant  Other
Observable
Inputs

(Level 2)
     Significant
Unobservable
Inputs

(Level 3)
     Total  

Equity securities:

           

U.S. large-cap

   $ 38.5       $  —         $ —         $ 38.5   

U.S. small/mid-cap

     11.7         —           —           11.7   

International

     27.2         —           —           27.2   

Fixed income

     65.2         —           —           65.2   

Hedge funds

     —           —           24.0         24.0   

Private equity

     2.5         —           4.9         7.4   

Cash

     0.2         —           —           0.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 145.3       $ —         $ 28.9       $ 174.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Refer to the pension asset discussion above for further information regarding the inputs and valuation methodologies used to measure the fair value of each respective category of plan assets.

The following represents the effect of fair value measurements using significant unobservable inputs (Level 3) on changes in plan assets for the year ended December 31, 2011 and 2010:

 

     (In Millions)  
     Year Ended December 31, 2011  
      Hedge Funds     Private Equity
Funds
    Real
Estate
     Total  

Beginning balance — January 1

   $ 24.0      $ 4.9      $ —         $ 28.9   

Actual return on plan assets:

         

Relating to assets still held at the reporting date

     (0.4     1.4        0.4         1.4   

Purchases

     7.7        0.9        9.8         18.4   

Sales

     (3.0     (0.4     —           (3.4
  

 

 

   

 

 

   

 

 

    

 

 

 

Ending balance — December 31

   $ 28.3      $ 6.8      $ 10.2       $ 45.3   
  

 

 

   

 

 

   

 

 

    

 

 

 

 

 

      (In Millions)  
     Year Ended December 31, 2010  
     Hedge Funds      Private Equity
Funds
     Total  

Beginning balance — January 1

   $ 14.6       $ 3.1       $ 17.7   

Actual return on plan assets:

        

Relating to assets still held at the reporting date

     0.1         1.0         1.1   

Purchases, sales and settlements

     9.3         0.8         10.1   
  

 

 

    

 

 

    

 

 

 

Ending balance — December 31

   $ 24.0       $ 4.9       $ 28.9   
  

 

 

    

 

 

    

 

 

 

The expected return on plan assets takes into account historical returns and the weighted average of estimated future long-term returns based on capital market assumptions for each asset category. The expected return is net of investment expenses paid by the plans.

Contributions

Annual contributions to the pension plans are made within income tax deductibility restrictions in accordance with statutory regulations. In the event of plan termination, the plan sponsors could be required to fund additional shutdown and early retirement obligations that are not included in the pension obligations. The Company currently has no intention to shutdown, terminate or withdraw from any of its employee benefit plans.

 

      (In Millions)  
      Pension
Benefits
     Other Benefits  

Company Contributions

      VEBA      Direct
Payments
     Total  

2010

     45.6         17.4         21.1         38.5   

2011

     70.1         17.4         20.0         37.4   

2012 (Expected)*

     66.3         17.4         23.8         41.2   

* Pursuant to the bargaining agreement, benefits can be paid from VEBA trusts that are at least 70 percent funded (no VEBA trusts are 70 percent funded at December 31, 2011).

VEBA plans are not subject to minimum regulatory funding requirements. Amounts contributed are pursuant to bargaining agreements.

Contributions by participants to the other benefit plans were $4.6 million and $6.2 million for years ended December 31, 2011 and 2010, respectively.

Estimated Cost for 2012

For 2012, we estimate net periodic benefit cost as follows:

 

     (In Millions)  

Defined benefit pension plans

   $ 54.5   

Other postretirement benefits

     29.4   
  

 

 

 

Total

   $ 83.9   
  

 

 

 

 

Estimated Future Benefit Payments

 

     (In Millions)  
     Pension
Benefits
     Other Benefits  
      Gross
Company
Benefits
     Less
Medicare
Subsidy
     Net
Company
Payments
 

          2012

   $ 73.3       $ 24.8       $ 1.0       $ 23.8   

          2013

     76.9         25.8         1.1         24.7   

          2014

     75.0         27.3         1.2         26.1   

          2015

     76.8         28.6         1.3         27.3   

          2016

     77.1         29.5         1.4         28.1   

2017-2021

     396.4         152.7         9.6         143.1   

Other Potential Benefit Obligations

While the foregoing reflects our obligation, our total exposure in the event of non-performance is potentially greater. Following is a summary comparison of the total obligation:

 

     (In Millions)  
     December 31, 2011  
     Defined
Benefit
Pensions
    Other
Benefits
 

Fair value of plan assets

   $ 744.1      $ 193.5   

Benefit obligation

     1,141.4        488.4   
  

 

 

   

 

 

 

Underfunded status of plan

   $ (397.3   $ (294.9
  

 

 

   

 

 

 

Additional shutdown and early retirement benefits

   $ 40.0      $ 19.3   
  

 

 

   

 

 

 
Stock Compensation Plans
Stock Compensation Plans

NOTE 11 — STOCK COMPENSATION PLANS

At December 31, 2011, we have two share-based compensation plans, which are described below. The compensation cost that has been charged against income for those plans was $15.9 million, $15.5 million and $12.2 million in 2011, 2010 and 2009, respectively, which primarily was recorded in Selling, general and administrative expenses in the Statements of Consolidated Operations. The total income tax benefit recognized in the Statements of Consolidated Operations for share-based compensation arrangements was $5.6 million, $5.4 million and $4.3 million for 2011, 2010 and 2009, respectively. Cash flows resulting from the tax benefits for tax deductions in excess of the compensation expense are classified as financing cash flows. Accordingly, we classified $4.5 million, $3.3 million and $3.5 million in excess tax benefits as cash from financing activities rather than cash from operating activities on our Statements of Consolidated Cash Flows for the years ended December 31, 2011, 2010 and 2009, respectively.

Employees' Plans

On May 11, 2010, our shareholders approved and adopted an amendment and restatement of the ICE Plan to increase the authorized number of shares available for issuance under the plan and to provide an annual limitation on the number of shares available to grant to any one participant in any fiscal year of 500,000 common shares. As of December 31, 2011, our ICE Plan authorized up to 11,000,000 of our common shares to be issued as stock options, SARs, restricted shares, restricted share units, retention units, deferred shares and performance shares or performance units. Any of the foregoing awards may be made subject to attainment of performance goals over a performance period of one or more years. Each stock option and SAR will reduce the common shares available under the ICE Plan by one common share. Each other award will reduce the common shares available under the ICE Plan by two common shares. The performance shares and performance share units are intended to meet the requirements of section 162(m) of the Internal Revenue Code for deduction.

 

For the outstanding plan year agreements, each performance share or performance share unit, if earned, entitles the holder to receive a number of common shares, or cash based on Cliffs' common share price on the date of vesting, within the range between a threshold and maximum number of shares, with the actual number of common shares earned dependent upon whether the Company achieves certain objectives and performance goals as established by the Compensation Committee of the Board of Directors. The restricted share units and retention units are subject to continued employment, will vest at the end of the performance period for the performance shares and performance share units, or at a different vesting period specified by the Compensation Committee, and are payable in shares or cash for the 2009, 2010 and 2011 plan years at a time determined by the Compensation Committee at its discretion.

The performance share grants vest over a period of three years and are intended to be paid out in common shares. Performance is measured on the basis of two factors: 1) relative TSR for the period, as measured against a predetermined peer group of mining and metals companies, and 2) three-year cumulative free cash flow. The final payout for the 2011 to 2013 performance period varies from zero to 200 percent of the original grant, compared to the 2009 and 2010 plan year agreements where the maximum payout is 150 percent of the performance shares awarded.

Upon the occurrence of a change in control, all performance shares, restricted share units, restricted stock and retention units granted to a participant will vest and become nonforfeitable and will be paid out in cash.

Following is a summary of our Performance Share Award Agreements currently outstanding:

 

Performance

Share

Plan Year

   Performance
Shares
Outstanding
    Forfeitures (1)      Grant Date      Performance Period  

2011

     169,632        18,848         March 8, 2011         1/1/2011-12/31/2013   

2011

     2,090        —           April 14, 2011         1/1/2011-12/31/2013   

2011

     1,290        —           May 2, 2011         1/1/2011-12/31/2013   

2010

     209,853        23,317         March 8, 2010         1/1/2010-12/31/2012   

2010

     12,480 (2)      —           March 8, 2010         1/1/2010-12/31/2012   

2010

     480        —           April 6, 2010         1/1/2010-12/31/2012   

2010

     590        —           April 12, 2010         1/1/2010-12/31/2012   

2010

     2,130        —           April 26, 2010         1/1/2010-12/31/2012   

2010

     12,080        —           May 3, 2010         1/1/2010-12/31/2012   

2010

     550        —           June 14, 2010         1/1/2010-12/31/2012   

2010

     670        —           August 16, 2010         1/1/2010-12/31/2012   

2009

     372,881        22,089         March 9, 2009         1/1/2009-12/31/2011   

2009

     3,825        —           August 31, 2009         1/1/2009-12/31/2011   

2009

     44,673 (2)      —           December 17, 2009         1/1/2009-12/31/2011   

(1) The 2011 and 2010 awards are based on assumed forfeitures. The 2009 awards reflect actual forfeitures.

 

(2) Represents the target payout as of December 31, 2011 related to the 67,009 shares awarded on December 17, 2009 and the 18,720 shares awarded on March 8, 2010 based upon the Compensation Committee's ability to exercise negative discretion. For accounting purposes, a grant date has not yet been determined for these awards.

Throughout 2011, the Committee approved grants under our shareholder-approved ICE Plan for the performance period of 2011 to 2013. A total of 307,940 shares were granted, consisting of performance shares, restricted share units, and restricted stock.

The performance shares awarded under the ICE Plan to the Company's Chief Executive Officer on December 17, 2009 and March 8, 2010 of 67,009 shares and 18,720 shares, respectively, met the aggregate value-added performance objective under the award terms as of December 31, 2010. The number of shares paid out under these particular awards at the end of each incentive period will be determined by the Compensation Committee based upon the achievement of certain other performance factors evaluated solely at the Compensation Committee's discretion and may be reduced from the 67,009 shares and 18,720 shares granted. Based on the Compensation Committee's ability to exercise negative discretion, the targeted payout for the awards was 44,673 shares and 12,480 shares, respectively, as of December 31, 2011. These other performance factors are in addition to the aggregate value-added performance objective. As a result of this uncertainty, a grant date has not yet been determined for this award for purposes of measuring and recognizing compensation cost.

Nonemployee Directors

The Directors' Plan authorizes us to issue up to 800,000 common shares to nonemployee Directors. Under the Share Ownership Guidelines in effect for 2011, or Guidelines, a Director is required by the end of five years from date of election or September 1, 2010, whichever is later, to hold common shares with a market value of at least $250,000. If, as of December 1 annually, the nonemployee Director does not meet the Guidelines, the nonemployee Director must take a portion of the annual retainer in common shares with a market value of $24,000 ("Required Retainer") until such time as the nonemployee Director reaches the ownership required by the Guidelines. Once the nonemployee Director meets the Guidelines, the nonemployee Director may elect to receive the Required Retainer in cash.

The Directors' Plan also provides for an Annual Equity Grant or Equity Grant. The Equity Grant is awarded at our annual meeting each year to all nonemployee Directors elected or re-elected by the shareholders. The value of the Equity Grant is payable in restricted shares with a three-year vesting period from the date of grant. The closing market price of our common shares on our annual meeting date is divided into the Equity Grant to determine the number of restricted shares awarded. Effective April 1, 2011, nonemployee Directors receive an annual retainer fee of $60,000 and effective May 17, 2011, an annual equity award of $80,000. In July 2009, the Directors' annual retainer fee was reduced by 10 percent in conjunction with the Company's compensation reductions across the organization. Such reductions were reinstated to their previous levels effective January 1, 2010. The Directors' Plan offers the nonemployee Director the opportunity to defer all or a portion of the Directors' annual retainer, chair retainers, meeting fees, and the Equity Grant into the Directors' Plan. A Director who is 69 or older at the Equity Grant date will receive common shares with no restrictions.

For the last three years, Equity Grant shares have been awarded to elected or re-elected Directors as follows:

 

Year of Grant

   Unrestricted
Equity
Grant
Shares
     Restricted
Equity
Grant
Shares
     Deferred
Equity
Grant
Shares
 

2009

     7,788         15,118         2,596   

2010

     3,963         7,926         1,321   

2011

     1,850         6,475         1,850   

Other Information

We adopted the fair value recognition provisions of ASC 718 effective January 1, 2006 using the modified prospective transition method. The following table summarizes the share-based compensation expense that we recorded for continuing operations in 2011, 2010 and 2009:

 

     (In Millions, except  per
share amount)
 
     2011     2010     2009  

Cost of goods sold and operating expenses

   $ 2.7      $ 2.8      $ 1.2   

Selling, general and administrative expenses

     13.2        12.7        11.0   

Reduction of operating income from continuing operations before income taxes and equity income (loss) from ventures

     15.9        15.5        12.2   

Income tax benefit

     (5.6     (5.4     (4.3
  

 

 

   

 

 

   

 

 

 

Reduction of net income attributable to Cliffs shareholders

   $ 10.3      $ 10.1      $ 7.9   
  

 

 

   

 

 

   

 

 

 

Reduction of earnings per share attributable to Cliffs shareholders:

      

Basic

   $ 0.07      $ 0.07      $ 0.06   
  

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.07      $ 0.07      $ 0.06   
  

 

 

   

 

 

   

 

 

 

 

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 its 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 estimated 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 2011 performance share grants:

 

Period (1)

   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)
 

First Quarter

   $96.70      2.81         94.4     1.17     0.58   $77.90      80.60

Second Quarter

   $93.85      2.81         94.4     1.17     0.58   $75.64      80.60

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 the ICE Plan vest over a period of three years.

 

Stock options, restricted stock, deferred stock allocation and performance share activity under our long-term equity plans and Directors' Plans are as follows:

 

     2011      2010      2009  
     Shares     Weighted-
Average
Exercise
Price
     Shares     Weighted-
Average
Exercise
Price
     Shares     Weighted-
Average
Exercise
Price
 

Stock options:

              

Options outstanding at beginning of year

     —          —           —          —           2,500      $ 5.42   

Granted during the year

     —             —             —       

Exercised

     —          —           —          —           (2,500     5.42   

Cancelled or expired

     —             —             —       
  

 

 

      

 

 

      

 

 

   

Options outstanding at end of year

     —          —           —          —           —          —     

Options exercisable at end of year

     —          —           —          —           —          —     

Restricted awards:

              

Outstanding and restricted at beginning of year

     371,712           290,702           315,684     

Granted during the year

     125,059           133,666           184,904     

Vested

     (61,330        (50,156        (201,486  

Cancelled

     (10,275        (2,500        (8,400  
  

 

 

      

 

 

      

 

 

   

Outstanding and restricted at end of year

     425,166           371,712           290,702     

Performance shares:

              

Outstanding at beginning of year

     843,238           823,393           594,115     

Granted during the year (1)

     263,816           376,524           555,046     

Issued (2)

     (215,870        (343,321        (312,336  

Forfeited/cancelled

     (13,749        (13,358        (13,432  
  

 

 

      

 

 

      

 

 

   

Outstanding at end of year

     877,435           843,238           823,393     

Vested or expected to vest as of December 31, 2011

     833,224               

Directors' retainer and voluntary shares:

              

Outstanding at beginning of year

     2,509           4,596           2,183     

Granted during the year

     1,815           2,075           4,602     

Vested

     (1,713        (4,162        (2,189  
  

 

 

      

 

 

      

 

 

   

Outstanding at end of year

     2,611           2,509           4,596     

Reserved for future grants or awards at end of year:

              

Employee plans

     6,760,871               

Directors' plans

     115,189               
  

 

 

             

Total

     6,876,060               
  

 

 

             

 

 

A summary of our outstanding share-based awards as of December 31, 2011 is shown below:

 

     Shares     Weighted
Average
Grant Date
Fair Value
 

Outstanding, beginning of year

     1,217,459      $ 26.03   

Granted

     390,690      $ 88.60   

Vested

     (278,913   $ 42.73   

Forfeited/expired

     (24,024   $ 61.61   
  

 

 

   

Outstanding, end of year

     1,305,212      $ 43.19   
  

 

 

   

The total compensation cost related to outstanding awards not yet recognized is $26.0 million at December 31, 2011. The weighted average remaining period for the awards outstanding at December 31, 2011 is approximately 2.0 years.

Income Taxes
Income Taxes

NOTE 12 — INCOME TAXES

Income from Continuing Operations Before Income Taxes and Equity Income (Loss) from Ventures includes the following components:

 

     (In Millions)  
     2011      2010      2009  

United States

   $ 1,506.5       $ 602.1       $ 136.6   

Foreign

     735.0         700.9         159.9   
  

 

 

    

 

 

    

 

 

 
   $ 2,241.5       $ 1,303.0       $ 296.5   
  

 

 

    

 

 

    

 

 

 

The components of the provision (benefit) for income taxes on continuing operations consist of the following:

 

     (In Millions)  
     2011     2010     2009  

Current provision (benefit):

      

United States federal

   $ 246.8      $ 109.6      $ (44.5

United States state & local

     2.8        2.6        3.4   

Foreign

     237.1        166.1        2.8   
  

 

 

   

 

 

   

 

 

 
     486.7        278.3        (38.3

Deferred provision (benefit):

      

United States federal

     23.8        61.1        13.2   

United States state & local

     4.7        5.2        (6.1

Foreign

     (95.1     (51.1     53.7   
  

 

 

   

 

 

   

 

 

 
     (66.6     15.2        60.8   
  

 

 

   

 

 

   

 

 

 

Total provision on continuing operations

   $ 420.1      $ 293.5      $ 22.5   
  

 

 

   

 

 

   

 

 

 

 

Reconciliation of our income tax attributable to continuing operations computed at the U.S. federal statutory rate is as follows:

 

     (In Millions)  
     2011     2010     2009  

Tax at U.S. statutory rate of 35 percent

   $ 784.5      $ 456.0      $ 103.8   

Increase (decrease) due to:

      

Foreign exchange remeasurement

     (62.6     —          —     

Non-taxable income related to noncontrolling interests

     (63.6     —          —     

Impact of tax law change

     —          16.1        —     

Percentage depletion in excess of cost depletion

     (153.4     (103.1     (66.2

Impact of foreign operations

     (49.4     (89.1     (44.3

Legal entity restructuring

     —          (87.4     —     

Income not subject to tax

     (67.5     —          —     

Non-taxable hedging income

     (32.4     —          —     

State taxes, net

     7.5        3.1        (2.1

Manufacturer's deduction

     (11.9     —          (0.1

Valuation allowance

     49.5        83.3        39.0   

Tax uncertainties

     17.7        —          —     

Other items — net

     1.7        14.6        (7.6
  

 

 

   

 

 

   

 

 

 

Income tax expense

   $ 420.1      $ 293.5      $ 22.5   
  

 

 

   

 

 

   

 

 

 

The components of income taxes for other than continuing operations consisted of the following:

 

     (In Millions)  
     2011     2010     2009  

Other comprehensive (income) loss:

      

Minimum pension/OPEB liability

   $ (60.2   $ 14.0      $ (4.7

Mark-to-market adjustments

     (17.7     1.7        (12.3
  

 

 

   

 

 

   

 

 

 
   $ (77.9   $ 15.7      $ (17.0

Paid in capital — stock based compensation

   $ (4.6   $ (4.0   $ 3.5   

Discontinued Operations

   $ (9.2   $ (1.5   $ (1.7

 

Significant components of our deferred tax assets and liabilities as of December 31, 2011 and 2010 are as follows:

 

     (In Millions)  
     2011     2010  

Deferred tax assets:

    

Pensions

   $ 154.8      $ 108.5   

Postretirement benefits other than pensions

     109.8        92.0   

Alternative minimum tax credit carryforwards

     228.5        153.4   

Capital loss carryforwards

     3.8        1.3   

Development

     —          0.9   

Asset retirement obligations

     42.9        42.0   

Operating loss carryforwards

     260.7        134.2   

Product inventories

     30.1        21.0   

Properties

     44.8        38.7   

Lease liabilities

     38.8        36.9   

Other liabilities

     149.3        85.4   
  

 

 

   

 

 

 

Total deferred tax assets before valuation allowance

     1,063.5        714.3   

Deferred tax asset valuation allowance

     223.9        172.7   
  

 

 

   

 

 

 

Net deferred tax assets

     839.6        541.6   

Deferred tax liabilities:

    

Properties

     1,345.0        222.6   

Investment in ventures

     155.9        72.7   

Intangible assets

     13.5        14.8   

Income tax uncertainties

     56.7        37.5   

Financial derivatives

     1.3        11.7   

Deferred revenue

     —          45.3   

Other assets

     98.2        58.3   
  

 

 

   

 

 

 

Total deferred tax liabilities

     1,670.6        462.9   
  

 

 

   

 

 

 

Net deferred tax (liabilities) assets

   $ (831.0   $ 78.7   
  

 

 

   

 

 

 

The deferred tax amounts are classified in the Statements of Consolidated Financial Position as current or long-term in accordance with the asset or liability to which they relate. Following is a summary:

 

     (In Millions)  
     2011     2010  

Deferred tax assets:

    

United States

    

Current

   $ 17.7      $ 2.1   

Long-term

     162.8        134.5   
  

 

 

   

 

 

 

Total United States

     180.5        136.6   

Foreign

    

Current

     4.2        —     

Long-term

     46.7        5.8   
  

 

 

   

 

 

 

Total deferred tax assets

     231.4        142.4   

Deferred tax liabilities:

    

Foreign

    

Long-term

     1,062.4        63.7   
  

 

 

   

 

 

 

Total deferred tax liabilities

     1,062.4        63.7   
  

 

 

   

 

 

 

Net deferred tax (liabilities) assets

   $ (831.0   $ 78.7   
  

 

 

   

 

 

 

The PPACA and the Reconciliation Act were signed into law in March 2010. As a result of these two acts, tax benefits available to employers that receive the Medicare Part D subsidy related to qualified postretirement drug benefit are reduced beginning in years ending after December 31, 2012. The income tax effect related to the acts for the year ended December 31, 2010 was a reduction of $16.1 million to deferred tax asset related to the postretirement prescription drug benefits computed after the elimination of the deduction for the Medicare Part D subsidy beginning in taxable years ending after December 31, 2012.

We completed a legal entity restructuring during 2010 that resulted in a change to deferred tax liabilities of $78.0 million on certain foreign investments to a deferred tax asset of $9.4 million for tax basis in excess of book basis on foreign investments as of December 31, 2010. A valuation allowance of $9.4 million was recorded against this asset due to the uncertainty of realization.

At December 31, 2011 and 2010, we had $228.5 million and $153.4 million, respectively, of deferred tax assets related to U.S. alternative minimum tax credits that can be carried forward indefinitely.

We had gross state and foreign net operating loss carry forwards of $147.1 million, and $780.5 million, respectively, at December 31, 2011. We acquired $211.0 million of foreign net operating loss carryforwards as a result of the acquisition of Consolidated Thompson stock in 2011. We had U.S. federal, state and foreign net operating loss carry forwards at December 31, 2010 of $87.6 million, $338.9 million and $234.4 million, respectively. State net operating losses will begin to expire in 2022, and the foreign net operating losses will begin to expire in 2026. We had foreign tax credit carryforwards of $5.8 million at December 31, 2011 and December 31, 2010. The foreign tax credit carryforwards will begin to expire in 2020.

We had a $51.2 million change in the valuation allowance of certain deferred tax assets where management believes that realization of the related deferred tax assets is not more likely than not. Of this amount, $41.1 million increase relates to ordinary losses of certain foreign and state operations for which future utilization is currently uncertain and $10.1 million increase relates to certain foreign assets where tax basis exceeds book basis.

At December 31, 2011 and 2010, cumulative undistributed earnings of foreign subsidiaries included in consolidated retained earnings amounted to $1.7 billion and $1.0 billion, respectively. These earnings are indefinitely reinvested in international operations. Accordingly, no provision has been made for U.S. deferred taxes related to future repatriation of these earnings, nor is it practical to estimate the amount of income taxes that would have to be provided if we were to conclude that such earnings will be remitted in the foreseeable future.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

     (In Millions)  
     2011     2010      2009  

Unrecognized tax benefits balance as of January 1

   $ 79.8      $ 75.2       $ 53.7   

Increases for tax positions in prior years

     42.1        1.9         23.8   

Increases for tax positions in current year

     29.5        —           2.5   

Increase due to foreign exchange

     —          0.7         4.7   

Settlements

     (3.5     —           (9.1

Lapses in statutes of limitations

     (45.8     —           (0.4

Other

     —          2.0         —     
  

 

 

   

 

 

    

 

 

 

Unrecognized tax benefits balance as of December 31

   $ 102.1      $ 79.8       $ 75.2   
  

 

 

   

 

 

    

 

 

 

At December 31, 2011 and 2010, we had $102.1 million and $79.8 million, respectively, of unrecognized tax benefits recorded in Other liabilities in the Statements of Consolidated Financial Position. During the third quarter of 2011, we recognized a $39.0 million tax benefit for the reduction in the amount of unrecognized tax benefits to reflect the closure of the U.S. federal audit for the years 2007 and 2008. Additionally, we recognized a tax benefit of $5.7 million for previously recorded uncertain tax positions to reflect the expiration of the statute of limitations in a foreign jurisdiction. If the $102.1 million were recognized, the full amount would impact the effective tax rate. We do not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months. We recognized potential accrued interest and penalties of $4.1 million and $2.1 million related to unrecognized tax benefits in income tax expense in 2011 and 2010, respectively. At December 31, 2011 and 2010, we had $2.5 million and $11.6 million, respectively, of accrued interest and penalties related to the unrecognized tax benefits recorded in Other liabilities in the Statements of Consolidated Financial Position.

 

Tax years that remain subject to examination are years 2009 and forward for the U.S., 1993 and forward for Canada, and 2007 and forward for Australia.

Capital Stock
Capital Stock

NOTE 13 — CAPITAL STOCK

Share Repurchase Plan

On August 15, 2011, our Board of Directors approved a new share repurchase plan that authorized us to purchase up to four million of our outstanding common shares. The new share repurchase plan replaced the previously existing share repurchase plan and allowed for the purchase of common shares from time to time in open market purchases or privately negotiated transactions. During the second half of 2011, all of the common shares were repurchased at a cost of approximately $289.8 million in the aggregate, or an average price of approximately $72.44 per share, thus terminating the plan.

Public Offering

On June 13, 2011, we completed a public offering of our common shares. The total number of shares sold was 10.35 million, comprised of the 9.0 million share offering and the exercise of an underwriters' over-allotment option to purchase an additional 1.35 million shares. The offering resulted in an increase in the number of our common shares issued and outstanding as of December 31, 2011. We received net proceeds of approximately $854 million at a closing price of $85.63 per share.

Dividends

On May 11, 2010, our Board of Directors increased our quarterly common share dividend from $0.0875 to $0.14 per share. The increased cash dividend was paid on June 1, 2010, September 1, 2010, and December 1, 2010 to shareholders on record as of May 14, 2010, August 13, 2010, and November 19, 2010, respectively. In addition, the increased cash dividend was paid on March 1, 2011 and June 1, 2011 to shareholders on record as of February 15, 2011 and April 29, 2011, respectively. On July 12, 2011, our Board of Directors increased the quarterly common share dividend by 100 percent to $0.28 per share. The increased cash dividend was paid on September 1, 2011 and December 1, 2011 to shareholders on record as of the close of business on August 15, 2011 and November 18, 2011, respectively.

Amendment to the Second Amended Articles of Incorporation

On May 25, 2011, our shareholders approved an amendment to our Second Amended Articles of Incorporation to increase the number of authorized Common Shares from 224,000,000 to 400,000,000, which resulted in an increase in the total number of authorized shares from 231,000,000 to 407,000,000. The total number of authorized shares includes 3,000,000 and 4,000,000 shares, respectively, of Class A and Class B preferred stock, none of which are issued and outstanding.

 

Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)

NOTE 14 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The components of Accumulated other comprehensive income (loss) within Cliffs shareholders' equity and related tax effects allocated to each are shown below as of December 31, 2011, 2010 and 2009:

 

     (In Millions)  
     Pre-tax
Amount
    Tax
Benefit
(Provision)
    After-tax
Amount
 

As of December 31, 2009:

      

Postretirement benefit liability

   $ (451.9   $ 132.8      $ (319.1

Foreign currency translation adjustments

     163.1        —          163.1   

Unrealized net gain on derivative financial instruments

     5.7        (1.7     4.0   

Unrealized loss on securities

     43.1        (13.7     29.4   
  

 

 

   

 

 

   

 

 

 
   $ (240.0   $ 117.4      $ (122.6
  

 

 

   

 

 

   

 

 

 

As of December 31, 2010:

      

Postretirement benefit liability

   $ (452.0   $ 146.9      $ (305.1

Foreign currency translation adjustments

     329.9        (15.2     314.7   

Unrealized net gain on derivative financial instruments

     3.9        (1.2     2.7   

Unrealized gain on securities

     46.9        (13.3     33.6   
  

 

 

   

 

 

   

 

 

 
   $ (71.3   $ 117.2      $ 45.9   
  

 

 

   

 

 

   

 

 

 

As of December 31, 2011:

      

Postretirement benefit liability

   $ (615.9   $ 207.0      $ (408.9

Foreign currency translation adjustments

     312.5        —          312.5   

Unrealized net gain on derivative financial instruments

     1.7        (0.5     1.2   

Unrealized gain on securities

     2.5        0.1        2.6   
  

 

 

   

 

 

   

 

 

 
   $ (299.2   $ 206.6      $ (92.6
  

 

 

   

 

 

   

 

 

 

The following table reflects the changes in Accumulated other comprehensive income (loss) related to Cliffs shareholders' equity for 2011, 2010 and 2009:

 

     Postretirement
Benefit
Liability
    Unrealized
Net Gain
(Loss) on
Securities
    Foreign
Currency
Translation
    Interest
Rate
Swap
    Net Gain
(Loss) on
Derivative
Financial
Instruments
    Accumulated
Other
Comprehensive
Income (Loss)
 

Balance December 31, 2008

   $ (343.3   $ (0.1   $ (68.6   $ (1.7   $ 19.1      $ (394.6

Change during 2009

     24.2        29.5        231.7        1.7        (15.1     272.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance December 31, 2009

     (319.1     29.4        163.1        —          4.0        (122.6

Change during 2010

     14.0        4.2        151.6        —          (1.3     168.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance December 31, 2010

     (305.1     33.6        314.7        —          2.7        45.9   

Change during 2011

     (103.8     (31.0     (2.2     —          (1.5     (138.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance December 31, 2011

   $ (408.9   $ 2.6      $ 312.5      $ —        $ 1.2      $ (92.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Earnings Per Share
Earnings Per Share

NOTE 15 — EARNINGS PER SHARE

The following table summarizes the computation of basic and diluted earnings per share attributable to Cliffs shareholders:

 

     (In Millions)  
     Year Ended December 31,  
     2011     2010     2009  

Net income from continuing operations attributable to Cliffs shareholders

   $ 1,637.6      $ 1,023.0      $ 208.5   

Loss from discontinued operations

     (18.5     (3.1     (3.4
  

 

 

   

 

 

   

 

 

 

Net income attributable to Cliffs shareholders

   $ 1,619.1      $ 1,019.9      $ 205.1   
  

 

 

   

 

 

   

 

 

 

Weighted average number of shares:

      

Basic

     140.2        135.3        125.0   

Employee stock plans

     0.8        0.8        0.8   
  

 

 

   

 

 

   

 

 

 

Diluted

     141.0        136.1        125.8   
  

 

 

   

 

 

   

 

 

 

Earnings per common share attributable to Cliffs shareholders — Basic:

      

Continuing operations

   $ 11.68      $ 7.56      $ 1.67   

Discontinued operations

     (0.13     (0.02     (0.03
  

 

 

   

 

 

   

 

 

 
   $ 11.55      $ 7.54      $ 1.64   
  

 

 

   

 

 

   

 

 

 

Earnings per common share attributable to Cliffs shareholders — Diluted:

      

Continuing operations

   $ 11.61      $ 7.51      $ 1.66   

Discontinued operations

     (0.13     (0.02     (0.03
  

 

 

   

 

 

   

 

 

 
   $ 11.48      $ 7.49      $ 1.63   
  

 

 

   

 

 

   

 

 

 
Commitments And Contingencies
Commitments And Contingencies

NOTE 16 — COMMITMENTS AND CONTINGENCIES

We have total contractual obligations and binding commitments of approximately $11.0 billion as of December 31, 2011 compared with $5.7 billion as of December 31, 2010, primarily related to purchase commitments, principal and interest payments on long-term debt, lease obligations, pension and OPEB funding minimums, and mine closure obligations. Such future commitments total approximately $1.4 billion in 2012, $1.0 billion in 2013, $0.6 billion in 2014, $0.9 billion in 2015, $0.6 billion in 2016 and $6.5 billion thereafter.

Purchase Commitments

In 2011, we incurred capital commitments related to the expansion of our Bloom Lake mine. The expansion project requires a capital investment of over $1.3 billion for the expansion of the mine and the mine's processing capabilities in order to ramp-up production capacity from 8.0 million to 16.0 million metric tons of iron ore concentrate per year. The capital investment also includes the common infrastructure necessary to support the mine's future production levels. As of December 31, 2011, approximately $445 million of the total capital investment required for the Bloom Lake expansion project has been committed, of which approximately $165 million had been expended during 2011. Of the remaining committed capital, expenditures of approximately $280 million are expected to be made during the 2012.

As a result of the significant tornado damage to the above-ground operations at our Oak Grove mine during the second quarter of 2011, we incurred capital commitments to repair the damage done to the preparation plant and the overland conveyor system. As of December 31, 2011, the project requires a capital investment of approximately $52 million, all of which has been committed. As of December 31, 2011, $46 million in capital expenditures had been expended related to this commitment. Of the committed capital, expenditures of $6 million are scheduled to be made during 2012.

In March 2011, we incurred capital commitments related to bringing Lower War Eagle, a high volatile metallurgical coal mine in West Virginia, into production. The project requires a capital investment of approximately $97 million, of which $55 million has been committed as of December 31, 2011. Capital expenditures related to this commitment were approximately $40 million as of December 31, 2011. Of the committed capital, expenditures of approximately $15 million are scheduled to be made during 2012.

In 2010, our Board of Directors approved a capital project at our Koolyanobbing Operation in Western Australia. The project is expected to increase the production capacity at the Koolyanobbing Operation to approximately 11 million metric tons annually. The improvements consist of enhancements to the existing rail infrastructure and upgrades to various other existing operational constraints. The expansion project requires a capital investment of approximately $275 million, of which approximately $259 million has been committed, that will be required to meet the timing of the proposed expansion. As of December 31, 2011, $202 million in capital expenditures had been expended related to this commitment. Of the committed capital, expenditures of $57 million are scheduled to be made during 2012.

In 2011, the rail service provider for one of the rail lines used by our Koolyanobbing operations entered into an agreement to upgrade the existing rail line. The upgrade is being performed to enhance safety and improve functionality of the rail. The improvements include the replacement of 62 miles of rail and associated parts. As a result, our portion of the related purchase commitment is approximately $33 million for replacements and improvements to the rail structure. As of December 31, 2011, our capital expenditures related to this purchase were approximately $25 million. Remaining expenditures of approximately $8 million are expected to be made in 2012.

We incurred capital commitments related to an expansion project at our Empire and Tilden mines in Michigan's Upper Peninsula in 2010. The expansion project requires a capital investment of approximately $264 million, of which $178 million has been committed as of December 31, 2011, and is expected to allow for production capacity at the Empire mine to produce at three million tons annually through 2014 and increase Tilden mine production capacity by an additional two million tons annually. As of December 31, 2011, capital expenditures related to this commitment were approximately $142 million. Of the committed capital, expenditures of approximately $36 million are scheduled to be made during 2012.

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 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 consolidated financial statements.

Environmental Matters

We had environmental liabilities of $15.5 million and $13.7 million at December 31, 2011 and 2010, respectively, including obligations for known environmental remediation exposures at active and closed mining operations and other sites. These amounts have been recognized based on the estimated cost of investigation and remediation at each site, and include site studies, design and implementation of remediation plans, legal and consulting fees, and post-remediation monitoring and related activities. If the cost can only be estimated as a range of possible amounts with no specific amount being more likely, the minimum of the range is accrued. Future expenditures are not discounted unless the amount and timing of the cash disbursements are readily known. Potential insurance recoveries have not been reflected. Additional environmental obligations could be incurred, the extent of which cannot be assessed. The amount of our ultimate liability with respect to these matters may be affected by several uncertainties, primarily the ultimate cost of required remediation and the extent to which other responsible parties contribute. Refer to NOTE 9 — ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS for further information.

Tax Matters

The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We also recognize tax benefits to the extent that it is more likely than not that our positions will be sustained when challenged by the taxing authorities. To the extent we prevail in matters for which liabilities have been established, or are required to pay amounts in excess of our liabilities, our effective tax rate in a given period could be materially affected. An unfavorable tax settlement would require use of our cash and result in an increase in our effective tax rate in the year of resolution. A favorable tax settlement would be recognized as a reduction in our effective tax rate in the year of resolution. Refer to NOTE 12 — INCOME TAXES for further information.

Cash Flow Information
Cash Flow Information

NOTE 17 — CASH FLOW INFORMATION

A reconciliation of capital additions to cash paid for capital expenditures for the years ended December 31, 2011, 2010 and 2009 is as follows:

 

Cash payments for interest and income taxes in 2011, 2010 and 2009 are as follows:

 

     (In Millions)  
   2011      2010      2009  

Taxes paid on income

   $ 275.3       $ 208.3       $ 64.8   

Interest paid on debt obligations

     175.1         34.2         25.3   

Non-cash investing activities as of December 31, 2010 include the issuance of 4.2 million of our common shares valued at $173.1 million as part of the purchase consideration for the acquisition of the remaining interest in Freewest. Non-cash items as of December 31, 2010 also include gains of $38.6 million primarily related to the remeasurement of our previous ownership interest in Freewest and Wabush held prior to each business acquisition. Refer to NOTE 4 — ACQUISITIONS AND OTHER INVESTMENTS for further information.

Related Parties
Related Parties

NOTE 18 — RELATED PARTIES

We co-own three of our five U.S. iron ore mines and one of our two Eastern Canadian iron ore mines 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 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 December 31, 2011:

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 to related parties were as follows:

 

     (In Millions)  
      2011     2010     2009  

Product revenues to related parties

   $ 2,192.4      $ 1,165.5      $ 593.8   

Total product revenues

     6,551.7        4,416.8        2,216.2   

Related party product revenue as a percent of total product revenue

     33.5     26.4     26.8

Amounts due from related parties recorded in Accounts receivable and Derivative assets, including customer supply agreements and provisional pricing arrangements, were $180.4 million and $52.4 million at December 31, 2011 and 2010, respectively. Amounts due to related parties recorded in Other current liabilities, including provisional pricing arrangements and liabilities to minority parties, were $43.0 million at December 31, 2011.

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 percent in exchange for 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 $26.5 million and $32.8 million at December 31, 2011 and 2010, respectively. Of these amounts, $16.5 million and $22.8 million were classified as Other non-current assets at December 31, 2011 and 2010, respectively, with the balances current, over the 12-year life of the supply agreement.

Supply agreements with one of our customers include provisions for supplemental revenue or refunds based on the customer's annual steel pricing for the year the product is consumed in the customer's blast furnace. The supplemental pricing is characterized as an embedded derivative. Refer to NOTE 3 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES for further information.

Subsequent Events
Subsequent Events

NOTE 19 — SUBSEQUENT EVENTS

Canadian Dollar Foreign Exchange Contracts

In January 2012, in accordance with our policy, we began to enter into Canadian dollar foreign currency exchange contracts in the form of forward contracts that qualify for hedge accounting. Subsequent to December 31, 2011, we have entered into contracts with a notional amount of approximately C$200 million with varying maturity dates.

We have evaluated subsequent events through the date of financial statement issuance.

 

Quarterly Results Of Operations (Unaudited)
Quarterly Results of Operations (Unaudited)

NOTE 20 – QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The sum of quarterly EPS may not equal EPS for the year due to discrete quarterly calculations.

 

Immaterial Errors

The accounting for our 79 percent interest in the Empire mine previously was based upon the assessment that the mining venture functions as a captive cost company, supplying product only to the venture partners effectively on a cost basis. Upon the execution of the partnership arrangement in 2002, the underlying notion of the arrangement was for the partnership to provide pellets to the venture partners at an agreed upon rate to cover operating and capital costs. Furthermore, any gains or losses generated by the mining venture throughout the life of the partnership were expected to be minimal and the mine has historically been in a net loss position. The partnership arrangement provides that the venture partners share profits and losses on an ownership percentage basis of 79 percent and 21 percent, with the noncontrolling interest partner limited on the losses produced by the mining venture to its equity interest. Therefore, the noncontrolling interest partner cannot have a negative ownership interest in the mining venture. Under our captive cost company arrangements, the noncontrolling interests' revenue amounts are stated at an amount that is offset entirely by an equal amount included in Cost of goods sold and operating expenses, resulting in no sales margin attributable to noncontrolling interest participants. In addition, under the Empire partnership arrangement, the noncontrolling interest net losses historically were recorded in the Statements of Unaudited Condensed Consolidated Operations through Cost of goods sold and operating expenses. This was based on the assumption that the partnership would operate in a net liability position, and as mentioned, the noncontrolling partner is limited on the partnership losses that can be allocated to its ownership interest. Due to a change in the partnership pricing arrangement to align with the industry's shift towards shorter-term pricing arrangements linked to the spot market, the partnership began to generate profits. The change in partnership pricing was a result of the negotiated settlement with ArcelorMittal USA effective beginning for the three months ended March 31, 2011. The modification of the pricing mechanism changed the nature of our cost sharing arrangement, and we determined that we should have been recording a noncontrolling interest adjustment in accordance with ASC 810 in the Statements of Unaudited Condensed Consolidated Operations and in the Statements of Unaudited Condensed Consolidated Financial Position to the extent that the partnership was in a net asset position, beginning in the first quarter of 2011.

In accordance with applicable GAAP, management has quantitatively and qualitatively evaluated the materiality of the error and has determined the error to be immaterial to the quarterly reports previously filed for the periods ended March 31, 2011 and June 30, 2011, and also immaterial for the quarterly report for the period ended September 30, 2011. Accordingly, all of the resulting adjustments were recorded prospectively in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2011 and the Statements of Unaudited Condensed Consolidated Financial Position as of September 30, 2011. The adjustment to record the noncontrolling interest related to the Empire mining venture of $84.0 million, resulted in an increase to Income From Continuing Operations of $16.1 million, as a result of reductions in income tax expenses, and a decrease to Net Income Attributable To Cliffs Shareholders of $67.9 million in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2011. The adjustments resulted in a decrease to basic and diluted earnings per common share of $0.47 per common share for the three months ended September 30, 2011, and $0.49 and $0.48 per common share for the nine months ended September 30, 2011. In addition, Retained Earnings was decreased by $67.9 million and Noncontrolling Interest was increased by $84.0 million in the Statements of Unaudited Condensed Consolidated Financial Position as of September 30, 2011.

In addition to the noncontrolling interest adjustment, the application of consolidation accounting for the Empire partnership arrangement also resulted in several financial statement line item reclassifications in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2011. Under the captive cost company accounting, we historically recorded the reimbursements for our venture partners' cost through Freight and venture partners' cost reimbursements, with a corresponding offset in Cost of goods sold and operating expenses in the Statements of Unaudited Condensed Consolidated Operations. Accordingly, we have reclassified $46.0 million of revenues from Freight and venture partners' cost reimbursements to Product Revenues in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2011. We also reclassified $54.1 million related to the ArcelorMittal USA price re-opener settlement recorded during the first quarter of 2011 from Cost of goods sold and operating expenses to Product revenues in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2011.

The impact of the prospective adjustments in the Statements of Unaudited Condensed Consolidated Operations for each of the prior interim periods of 2011 have been included within the table below. The prior period amounts included within the accompanying Consolidated Financial Statements have not been retrospectively adjusted for these impacts due to management's materiality assessment as discussed above.

 

 

     (In Millions, Except Per Share Amounts)  
     Three Months Ended     Six Months Ended  
     March 31, 2011     June 30, 2011     June 30, 2011  

Revenues from Product Sales and Services

      

Product

   $ 54.1      $ 46.0      $ 100.1   

Freight and venture partners' cost reimbursements

     —          (46.0     (46.0
  

 

 

   

 

 

   

 

 

 
     54.1        —          54.1   

Cost of Goods Sold and Operating Expenses

     (54.1     —          (54.1

Income from Continuing Operations

     8.4        7.7        16.1   

LESS: Income Attributable to Noncontrolling Interest

     45.9        38.1        84.0   
  

 

 

   

 

 

   

 

 

 

Net Income Attributable to Cliffs Shareholders

   $ (37.5   $ (30.4   $ (67.9

Earnings per Common Share Attributable to Cliffs Shareholders - Basic and Diluted

   $ (0.28   $ (0.22   $ (0.49

Retrospective Adjustments

During the fourth quarter of 2011, we retrospectively recorded adjustments to the Consolidated Thompson purchase price allocation back to the date of acquisition that occurred during the second quarter of 2011. The financial statements for the three and six months ended June 30, 2011 have been retrospectively adjusted for these changes, resulting in a decrease to Income From Continuing Operations Before Income Taxes and Equity Income (Loss) from Ventures of $0.5 million and an increase to Net Income Attributable to Cliffs Shareholders in the Statements of Unaudited Condensed Consolidated Operations of $1.4 million. The adjustments resulted in an increase to basic and diluted earnings per common share of $0.01 per common share. In addition, the financial statements for the three and nine months ended September 30, 2011 have been retrospectively adjusted, resulting in a decrease to Income From Continuing Operations Before Income Taxes and Equity Income (Loss) from Ventures of $2.0 million and $2.5 million, respectively, and an increase to Net Income Attributable to Cliffs Shareholders in the Statements of Unaudited Condensed Consolidated Operations of $11.7 million and $13.1 million, respectively. The adjustments resulted in an increase to basic and diluted earnings per common share of $0.08 per common share for the three months ended September 30, 2011 and an increase to basic and diluted earnings per common share $0.09 per common share for the nine months ended September 30, 2011. Accordingly, such amounts are reflected in the consolidated financial statements as of and for the year ended December 31, 2011. Refer to NOTE 4 — ACQUISITIONS AND OTHER INVESTMENTS for additional information.

During the second half of 2010, we retrospectively recorded adjustments to the Wabush purchase price allocation back to the date of acquisition that occurred during the first quarter of 2010. Therefore, the financial statements for the three months ended March 31, 2010 have been retrospectively adjusted for these changes, resulting in a decrease to Income From Continuing Operations Before Income Taxes and Equity Income (Loss) from Ventures of $22.0 million and a decrease to Net Income Attributable to Cliffs Shareholders of $16.1 million, respectively, in the Statements of Unaudited Condensed Consolidated Operations. The adjustments resulted in a decrease to basic and diluted earnings per common share of $0.12 per common share, respectively. In addition, Retained Earnings in the Statements of Unaudited Condensed Consolidated Financial Position as of March 31, 2010 has been decreased by $16.1 million for the effect of these retrospective adjustments. Accordingly, such amounts are reflected in the consolidated financial statements as of and for the period ended December 31, 2010.

As a result of acquiring the remaining ownership interests in Freewest and Wabush during the first quarter of 2010, our first quarter results were impacted by realized gains of $38.6 million primarily related to the increase in fair value of our previous ownership interest in each investment held prior to the business acquisitions. The fair value of our previous 12.4 percent interest in Freewest was $27.4 million on January 27, 2010, the date of acquisition, resulting in a gain of $13.6 million being recognized in 2010. The fair value of our previous 26.8 percent equity interest in Wabush was $38.0 million on February 1, 2010, resulting in a gain of $25.0 million also being recognized in 2010. Refer to NOTE 4 — ACQUISITIONS AND OTHER INVESTMENTS for additional information.

Schedule II - Valuation And Qualifying Accounts
Schedule II - Valuation and Qualifying Accounts

Cliffs Natural Resources Inc. and Subsidiaries

Schedule II — Valuation and Qualifying Accounts

(Dollars in Millions)

 

            Additions                

Classification

   Balance at
Beginning
of Year
     Charged
to Cost
and
Expenses
     Charged
to Other
Accounts
     Acquisition      Deductions      Balance at
End of
Year
 

Year Ended December 31, 2011:

                 

Deferred Tax Valuation Allowance

   $ 172.7       $ 49.1       $ 2.1       $ —         $ —         $ 223.9   

Year Ended December 31, 2010:

                 

Deferred Tax Valuation Allowance

   $ 89.4       $ 94.3       $ —         $ —         $ 11.0       $ 172.7   

Year Ended December 31, 2009:

                 

Deferred Tax Valuation Allowance

   $ 17.6       $ 53.8       $ 1.7       $ 16.8       $ 0.5       $ 89.4   
Business Summary And Significant Accounting Policies (Policy)

Use of Estimates

The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from estimates. On an ongoing basis, management reviews estimates. Changes in facts and circumstances may alter such estimates and affect results of operations and financial position in future periods.

Basis of Consolidation

The consolidated financial statements include our accounts and the accounts of our wholly owned and majority-owned subsidiaries, including the following subsidiaries:

 

Name

  

Location

   Ownership Interest     Operation  

Northshore

   Minnesota      100.0     Iron Ore   

United Taconite

   Minnesota      100.0     Iron Ore   

Wabush

   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   

Freewest

   Ontario, Canada      100.0     Chromite   

Spider

   Ontario, Canada      100.0     Chromite   

Intercompany transactions and balances are eliminated upon consolidation.

 

On May 12, 2011, we acquired all of the outstanding common shares of Consolidated Thompson for C$17.25 per share in an all-cash transaction, including net debt. The consolidated financial statements as of and for the year ended December 31, 2011 reflect our 100 percent interest in Consolidated Thompson since that date. Refer to NOTE 4 — ACQUISITIONS AND OTHER INVESTMENTS for further information.

Inventories

The following table presents the detail of our Inventories in the Statements of Consolidated Financial Position at December 31, 2011 and 2010:

 

     (In Millions)  
     2011      2010  

Segment

   Finished
Goods
     Work-in
Process
     Total
Inventory
     Finished
Goods
     Work-in
Process
     Total
Inventory
 

U.S. Iron Ore

   $ 100.2       $ 8.5       $ 108.7       $ 101.1       $ 9.7       $ 110.8   

Eastern Canadian Iron Ore

     96.2         43.0         139.2         43.5         21.2         64.7   

North American Coal

     19.7         110.5         130.2         16.1         19.8         35.9   

Asia Pacific Iron Ore

     57.2         21.6         78.8         34.7         20.4         55.1   

Other

     18.0         0.8         18.8         2.6         0.1         2.7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 291.3       $ 184.4       $ 475.7       $ 198.0       $ 71.2       $ 269.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

U.S. Iron Ore

U.S. Iron Ore product inventories are stated at the lower of cost or market. Cost of iron ore inventories is determined using the LIFO method. The excess of current cost over LIFO cost of iron ore inventories was $117.1 million and $112.4 million at December 31, 2011 and 2010, respectively. As of December 31, 2011, the product inventory balance for U.S. Iron Ore declined, resulting in liquidation of LIFO layers in 2011. The effect of the inventory reduction was a decrease in Cost of goods sold and operating expenses of $15.2 million in the Statements of Consolidated Operations for the year ended December 31, 2011. As of December 31, 2010, the product inventory balance for U.S. Iron Ore declined, resulting in liquidation of LIFO layers in 2010. The effect of the inventory reduction was a decrease in Cost of goods sold and operating expenses of $4.6 in the Statements of Consolidated Operations for the year ended December 31, 2010.

We had approximately 1.2 million tons and 0.8 million tons of finished goods stored at ports and customer facilities on the lower Great Lakes to service customers at December 31, 2011 and 2010, respectively. We maintain ownership of the inventories until title has transferred to the customer, usually when payment is made. Maintaining ownership of the iron ore products at ports on the lower Great Lakes reduces risk of non-payment by customers, as we retain title to the product until payment is received from the customer. We track the movement of the inventory and verify the quantities on hand.

Eastern Canadian Iron Ore

Iron ore pellet inventories are stated at the lower of cost or market. Similar to U.S. Iron Ore product inventories, the cost is determined using the LIFO method. The excess of current cost over LIFO cost of iron ore inventories was $21.9 million and $2.5 million at December 31, 2011 and 2010, respectively. As of December 31, 2011, the iron ore pellet inventory balance for Eastern Canadian Iron Ore increased to $47.1 million, resulting in an additional LIFO layer being added. As of December 31, 2010, the product inventory balance for Eastern Canadian Iron Ore increased to $43.5 million, resulting in an additional LIFO layer being added during the year. We primarily maintain ownership of these inventories until loading of the product at the port.

Iron ore concentrate inventories are stated at the lower of cost or market. The cost of iron ore concentrate inventories is determined using weighted average cost. As of December 31, 2011, the iron ore concentrate inventory balance for Eastern Canadian Iron Ore was $49.1 million as a result of the Consolidated Thompson acquisition. For the majority of the iron ore concentrate inventories, we maintain ownership of the inventories until title passes on the bill of lading date, which is upon the loading of the product at the port.

North American Coal

North American Coal product inventories are stated at the lower of cost or market. Cost of coal inventories includes labor, supplies and operating overhead and related costs and is calculated using the average production cost. We maintain ownership until coal is loaded into rail cars at the mine for domestic sales and until loaded in the vessels at the terminal for export sales. We recorded lower-of-cost-or-market inventory charges of $6.6 million and $26.1 million in Cost of goods sold and operating expenses in the Statements of Consolidated Operations for the years ended December 31, 2011 and 2010, respectively. These charges were a result of operational and geological issues at our Pinnacle and Oak Grove mines during the periods.

Asia Pacific Iron Ore

Asia Pacific Iron Ore product inventories are stated at the lower of cost or market. Costs, including an appropriate portion of fixed and variable overhead expenses, are assigned to the inventory on hand by the method most appropriate to each particular class of inventory, with the majority being valued on a weighted average basis. We maintain ownership of the inventories until title has transferred to the customer at the F.O.B. point, which is generally when the product is loaded into the vessel.

Business Summary And Significant Accounting Policies (Tables)

Name

  

Location

   Ownership Interest     Operation  

Northshore

   Minnesota      100.0     Iron Ore   

United Taconite

   Minnesota      100.0     Iron Ore   

Wabush

   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   

Freewest

   Ontario, Canada      100.0     Chromite   

Spider

   Ontario, Canada      100.0     Chromite   
     (In Millions)  
     2011      2010  

Segment

   Finished
Goods
     Work-in
Process
     Total
Inventory
     Finished
Goods
     Work-in
Process
     Total
Inventory
 

U.S. Iron Ore

   $ 100.2       $ 8.5       $ 108.7       $ 101.1       $ 9.7       $ 110.8   

Eastern Canadian Iron Ore

     96.2         43.0         139.2         43.5         21.2         64.7   

North American Coal

     19.7         110.5         130.2         16.1         19.8         35.9   

Asia Pacific Iron Ore

     57.2         21.6         78.8         34.7         20.4         55.1   

Other

     18.0         0.8         18.8         2.6         0.1         2.7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 291.3       $ 184.4       $ 475.7       $ 198.0       $ 71.2       $ 269.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     (In Millions)  
     December 31,  
     2011     2010  

Land rights and mineral rights

   $ 7,918.9      $ 3,019.9   

Office and information technology

     67.0        60.4   

Buildings

     132.2        107.6   

Mining equipment

     1,323.8        628.5   

Processing equipment

     1,441.8        658.8   

Railroad equipment

     164.3        122.9   

Electric power facilities

     57.9        54.4   

Port facilities

     64.1        64.0   

Interest capitalized during construction

     22.5        19.4   

Land improvements

     30.4        25.0   

Other

     43.2        36.0   

Construction in progress

     615.4        140.0   
  

 

 

   

 

 

 
     11,881.5        4,936.9   

Allowance for depreciation and depletion

     (1,356.9     (957.7
  

 

 

   

 

 

 
   $ 10,524.6      $ 3,979.2   
  

 

 

   

 

 

 
     (In Millions)  
     December 31,  
     2011      2010  

Land rights

   $ 37.3       $ 36.8   
  

 

 

    

 

 

 

Mineral rights:

     

Cost

   $ 7,881.6       $ 2,983.1   

Less depletion

     533.9         376.4   
  

 

 

    

 

 

 

Net mineral rights

   $ 7,347.7       $ 2,606.7   
  

 

 

    

 

 

 
     (In Millions)  
     Year Ended December 31,  
     2011      2010      2009  

Reimbursements for:

        

Freight

   $ 128.4       $ 83.6       $ 22.4   

Venture partners' cost

     95.9         139.8         71.3   
  

 

 

    

 

 

    

 

 

 

Total reimbursements

   $ 224.3       $ 223.4       $ 93.7   
  

 

 

    

 

 

    

 

 

 

Asset Class

  

Basis

  

Life

Buildings

   Straight line    45 Years

Mining equipment

   Straight line/Double declining balance    10 to 20 Years

Processing equipment

   Straight line    15 to 45 Years

Information technology

   Straight line    2 to 7 Years

Asset Class

  

Basis

  

Life

Buildings

   Straight line    30 Years

Mining equipment

   Straight line    2 to 22 Years

Processing equipment

   Straight line    2 to 30 Years

Information technology

   Straight line    2 to 3 Years

Asset Class

  

Basis

  

Life

Plant and equipment

   Straight line    5 - 10 Years

Plant and equipment and mine assets

   Production output    10 Years

Motor vehicles, furniture & equipment

   Straight line    3 5 Years
Segment Reporting (Tables)
     (In Millions)  
     2011      2010      2009  

Revenue (1)

        

United States

   $ 2,774.1       $ 1,966.3       $ 1,049.5   

China

     2,123.4         1,262.0         711.5   

Canada

     914.3         696.5         236.6   

Japan

     460.4         311.1         157.4   

Other countries

     522.1         446.2         187.0   
  

 

 

    

 

 

    

 

 

 

Total revenue

   $ 6,794.3       $ 4,682.1       $ 2,342.0   
  

 

 

    

 

 

    

 

 

 

Property, Plant and Equipment, Net

        

United States

   $ 2,684.9       $ 2,498.8      

Australia

     1,138.3         973.7      

Canada

     6,701.4         506.7      
  

 

 

    

 

 

    

Total Property, Plant and Equipment, Net

   $ 10,524.6       $ 3,979.2      
  

 

 

    

 

 

    

(1) Revenue is attributed to countries based on the location of the customer and includes both Product sales and services.
     2011     2010     2009  

Revenue Category

      

Iron ore

     85     81     81

Coal

     11        13        14   

Freight and venture partners' cost reimbursements

     4        6        5   
  

 

 

   

 

 

   

 

 

 

Total revenue

     100     100     100
  

 

 

   

 

 

   

 

 

 
Derivative Instruments And Hedging Activities (Tables)
    (In Millions)  
    Derivative Assets     Derivative Liabilities  
    December 31, 2011     December 31, 2010     December 31, 2011     December 31, 2010  

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

(current)

  $ 5.2      Derivative assets
(current)
  $ 2.8      Other current
liabilities
  $ 3.5        $ —     
   

 

 

     

 

 

     

 

 

     

 

 

 

Total derivatives designated as hedging instruments under ASC 815

    $ 5.2        $ 2.8        $ 3.5        $ —     
   

 

 

     

 

 

     

 

 

     

 

 

 

Derivatives not designated as hedging instruments under ASC 815:

               

Foreign Exchange Contracts

  Derivative assets
(current)
  $ 2.8      Derivative assets
(current)
  $ 34.2        $ —          $ —     
  Other non-
current assets
    —        Other non-
current assets
    2.0          —            —     

Customer Supply Agreements

  Derivative assets
(current)
    72.9      Derivative assets
(current)
    45.6          —            —     

Provisional Pricing Arrangements

  Derivative assets
(current)
    1.2          Other current
liabilities
    19.5          —     
  Accounts
receivable
    83.8          —            —         
   

 

 

     

 

 

     

 

 

     

 

 

 

Total derivatives not designated as hedging instruments under ASC 815

    $ 160.7        $ 81.8        $ 19.5        $ —     
   

 

 

     

 

 

     

 

 

     

 

 

 

Total derivatives

    $ 165.9        $ 84.6        $ 23.0        $ —     
   

 

 

     

 

 

     

 

 

     

 

 

 
      (In Millions)  

Derivatives in Cash Flow Hedging Relationships

   Amount of
Gain
Recognized in
OCI on
Derivative
(Effective Portion)
     Location of Gain
Reclassified from
Accumulated OCI
into Income
(Effective Portion)
   Amount of
Gain
Reclassified from
Accumulated

OCI into Income
(Effective Portion)
 
     Year ended
December 31,
          Year ended
December 31,
 
     2011      2010      2009           2011      2010      2009  

Australian Dollar Foreign Exchange Contracts
(hedge designation)

   $ 1.8       $ 1.9       $ —         Product revenue    $ 2.6       $ —         $ —     

Australian Dollar Foreign Exchange Contracts
(prior to de-designation)

     —           —           —         Product revenue      0.7         3.2         15.1   
  

 

 

    

 

 

    

 

 

       

 

 

    

 

 

    

 

 

 

Total

   $ 1.8       $ 1.9       $ —            $ 3.3       $ 3.2       $ 15.1   
  

 

 

    

 

 

    

 

 

       

 

 

    

 

 

    

 

 

 

(In Millions)

 

Derivative Not Designated as Hedging
Instruments

   Location of Gain/(Loss)
Recognized in Income on
Derivative
   Amount of Gain/(Loss)
Recognized in Income on
Derivative
 
          Year ended December 31,  
          2011      2010      2009  

Foreign Exchange Contracts

   Product Revenues    $ 1.0       $ 11.1       $ 5.4   

Foreign Exchange Contracts

   Other Income (Expense)      101.9         39.8         85.7   

Customer Supply Agreements

   Product Revenues      178.0         120.2         22.2   

Provisional Pricing Arrangements

   Product Revenues      809.1         960.7         (28.2

United Taconite Purchase Provision

   Product Revenues      —           —           106.5   
     

 

 

    

 

 

    

 

 

 

Total

      $ 1,090.0       $ 1,131.8       $ 191.6   
     

 

 

    

 

 

    

 

 

 
Acquisitions And Other Investments (Tables)
     (In Millions)  
     Initial
Allocation
    Final
Allocation
    Change  

Consideration

      

Cash

   $ 88.0      $ 88.0      $ —     

Working capital adjustments

     15.0        15.0        —     
  

 

 

   

 

 

   

 

 

 

Fair value of total consideration transferred

     103.0        103.0        —     

Fair value of Cliffs' equity interest in Wabush held prior to acquisition of remaining interest

     39.7        38.0        (1.7
  

 

 

   

 

 

   

 

 

 
   $ 142.7      $ 141.0      $ (1.7
  

 

 

   

 

 

   

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed

      

ASSETS:

      

In-process inventories

   $ 21.8      $ 21.8      $ —     

Supplies and other inventories

     43.6        43.6        —     

Other current assets

     13.2        13.2        —     

Mineral rights

     85.1        84.4        (0.7

Plant and equipment

     146.3        147.8        1.5   

Intangible assets

     66.4        66.4        —     

Other assets

     16.3        19.3        3.0   
  

 

 

   

 

 

   

 

 

 

Total identifiable assets acquired

     392.7        396.5        3.8   

LIABILITIES:

      

Current liabilities

     (48.1     (48.1     —     

Pension and OPEB obligations

     (80.6     (80.6     —     

Mine closure obligations

     (39.6     (53.4     (13.8

Below-market sales contracts

     (67.7     (67.7     —     

Deferred taxes

     (20.5     —          20.5   

Other liabilities

     (8.9     (8.8     0.1   
  

 

 

   

 

 

   

 

 

 

Total identifiable liabilities assumed

     (265.4     (258.6     6.8   
  

 

 

   

 

 

   

 

 

 

Total identifiable net assets acquired

     127.3        137.9        10.6   

Goodwill

     15.4        3.1        (12.3
  

 

 

   

 

 

   

 

 

 

Total net assets acquired

   $ 142.7      $ 141.0      $ (1.7
  

 

 

   

 

 

   

 

 

 
     (In Millions)  
     Initial
Allocation
    Revised
Allocation
    Change  

Consideration

      

Cash

   $ 4,554.0      $ 4,554.0      $ —     
  

 

 

   

 

 

   

 

 

 

Fair value of total consideration transferred

   $ 4,554.0      $ 4,554.0      $ —     
  

 

 

   

 

 

   

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed

      

ASSETS:

      

Cash

   $ 130.6      $ 130.6      $ —     

Accounts receivable

     102.8        102.4        (0.4

Product inventories

     134.2        134.2        —     

Other current assets

     35.1        35.1        —     

Mineral rights

     4,450.0        4,825.6        375.6   

Property, plant and equipment

     1,193.4        1,193.4        —     

Intangible assets

     2.1        2.1        —     
  

 

 

   

 

 

   

 

 

 

Total identifiable assets acquired

     6,048.2        6,423.4        375.2   

LIABILITIES:

      

Accounts payable

     (13.6     (13.6     —     

Accrued liabilities

     (130.0     (123.8     6.2   

Convertible debentures

     (335.7     (335.7     —     

Other current liabilities

     (41.8     (41.8     —     

Long-term deferred tax liabilities

     (831.5     (1,041.8     (210.3

Senior secured notes

     (125.0     (125.0     —     

Capital lease obligations

     (70.7     (70.7     —     

Other long-term liabilities

     (25.1     (25.1     —     
  

 

 

   

 

 

   

 

 

 

Total identifiable liabilities assumed

     (1,573.4     (1,777.5     (204.1
  

 

 

   

 

 

   

 

 

 

Total identifiable net assets acquired

     4,474.8        4,645.9        171.1   

Noncontrolling interest in Bloom Lake

     (947.6     (1,075.4     (127.8

Preliminary goodwill

     1,026.8        983.5        (43.3
  

 

 

   

 

 

   

 

 

 

Total net assets acquired

   $ 4,554.0      $ 4,554.0      $ —     
  

 

 

   

 

 

   

 

 

 
     (In Millions, Except
Per Common Share)
 
     2011      2010  

REVENUES FROM PRODUCT SALES AND SERVICES

   $ 7,002.7       $ 4,982.9   

NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS

   $ 1,612.3       $ 912.5   

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS — BASIC

   $ 11.50       $ 6.74   

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS — DILUTED

   $ 11.43       $ 6.70   
     (In Millions)  
     Initial
Allocation
    Final
Allocation
    Change  

Consideration

      

Equity instruments (4.2 million Cliffs common shares)

   $ 173.1      $ 173.1      $ —     

Cash

     12.8        12.8        —     
  

 

 

   

 

 

   

 

 

 

Fair value of total consideration transferred

     185.9        185.9        —     

Fair value of Cliffs' ownership interest in Freewest held prior to acquisition of remaining interest

     27.4        27.4        —     
  

 

 

   

 

 

   

 

 

 
   $ 213.3      $ 213.3      $ —     
  

 

 

   

 

 

   

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed

      

ASSETS:

      

Cash

   $ 7.7      $ 7.7      $ —     

Other current assets

     1.4        1.4        —     

Mineral rights

     252.8        244.0        (8.8

Marketable securities

     12.1        12.1        —     
  

 

 

   

 

 

   

 

 

 

Total identifiable assets acquired

     274.0        265.2        (8.8

LIABILITIES:

      

Accounts payable

     (3.3     (3.3     —     

Long-term deferred tax liabilities

     (57.4     (54.3     3.1   
  

 

 

   

 

 

   

 

 

 

Total identifiable liabilities assumed

     (60.7     (57.6     3.1   
  

 

 

   

 

 

   

 

 

 

Total identifiable net assets acquired

     213.3        207.6        (5.7

Goodwill

     —          5.7        5.7   
  

 

 

   

 

 

   

 

 

 

Total net assets acquired

   $ 213.3      $ 213.3      $ —     
  

 

 

   

 

 

   

 

 

 
     (In Millions)  
     Initial
Allocation
    Final
Allocation
    Change  

Consideration

      

Cash

   $ 56.9      $ 56.9      $ —     
  

 

 

   

 

 

   

 

 

 

Fair value of total consideration transferred

     56.9        56.9        —     

Fair value of Cliffs' ownership interest in Spider held prior to acquisition of remaining interest

     4.9        4.9        —     
  

 

 

   

 

 

   

 

 

 
   $ 61.8      $ 61.8      $ —     
  

 

 

   

 

 

   

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed

      

ASSETS:

      

Cash

   $ 9.0      $ 9.0      $ —     

Other current assets

     4.5        4.5        —     

Mineral rights

     31.0        35.3        4.3   
  

 

 

   

 

 

   

 

 

 

Total identifiable assets acquired

     44.5        48.8        4.3   

LIABILITIES:

      

Other current liabilities

     (5.2     (5.2     —     

Long-term deferred tax liabilities

     (2.7     (5.1     (2.4
  

 

 

   

 

 

   

 

 

 

Total identifiable liabilities assumed

     (7.9     (10.3     (2.4
  

 

 

   

 

 

   

 

 

 

Total identifiable net assets acquired

     36.6        38.5        1.9   

Goodwill

     77.1        75.2        (1.9

Noncontrolling interest in Spider

     (51.9     (51.9     —     
  

 

 

   

 

 

   

 

 

 

Total net assets acquired

   $ 61.8      $ 61.8      $ —     
  

 

 

   

 

 

   

 

 

 
     (In Millions)  
     Initial
Allocation
    Final
Allocation
    Change  

Consideration

      

Cash

   $ 757.0      $ 757.0        —     

Working capital adjustments

     17.5        18.9        1.4   
  

 

 

   

 

 

   

 

 

 

Fair value of total consideration transferred

   $ 774.5      $ 775.9      $ 1.4   
  

 

 

   

 

 

   

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed

      

ASSETS:

      

Product inventories

   $ 20.0      $ 20.0      $ —     

Other current assets

     11.8        11.8        —     

Land and mineral rights

     640.3        639.3        (1.0

Plant and equipment

     111.1        112.3        1.2   

Deferred taxes

     16.5        15.9        (0.6

Intangible assets

     7.5        7.5        —     

Other non-current assets

     0.8        0.8        —     
  

 

 

   

 

 

   

 

 

 

Total identifiable assets acquired

     808.0        807.6        (0.4

LIABILITIES:

      

Current liabilities

     (22.8     (24.1     (1.3

Mine closure obligations

     (2.8     (2.8     —     

Below-market sales contracts

     (32.6     (32.6     —     
  

 

 

   

 

 

   

 

 

 

Total identifiable liabilities assumed

     (58.2     (59.5     (1.3
  

 

 

   

 

 

   

 

 

 

Total identifiable net assets acquired

     749.8        748.1        (1.7

Goodwill

     24.7        27.8        3.1   
  

 

 

   

 

 

   

 

 

 

Total net assets acquired

   $ 774.5      $ 775.9      $ 1.4   
  

 

 

   

 

 

   

 

 

 
Goodwill And Other Intangible Assets And Liabilities (Tables)
    (In Millions)  
    December 31, 2011     December 31, 2010  
    U.S.
Iron
Ore
    Eastern
Canadian
Iron Ore
    North
American
Coal
    Asia
Pacific
Iron
Ore
    Other     Total     U.S.
Iron
Ore
    Eastern
Canadian
Iron Ore
    North
American
Coal
    Asia
Pacific
Iron
Ore
    Other     Total  

Beginning Balance

  $ 2.0      $ 3.1      $ 27.9      $ 82.6      $ 80.9      $ 196.5      $ 2.0      $ —        $ —        $ 72.6      $ —        $ 74.6   

Arising in business combinations

    —          983.5        (0.1     —          —          983.4        —          3.1        27.9        —          80.9        111.9   

Impairment

    —          —          (27.8     —          —          (27.8     —          —          —          —          —          —     

Impact of foreign currency translation

    —          —          —          0.4        —          0.4        —          —          —          10.0        —          10.0   

Other

    —          (0.4     —          —          —          (0.4     —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending Balance

  $ 2.0      $ 986.2      $ —        $ 83.0      $ 80.9      $ 1,152.1      $ 2.0      $ 3.1      $ 27.9      $ 82.6      $ 80.9      $ 196.5   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
        (In Millions)  
        December 31, 2011     December 31, 2010  
   

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   $ 134.3      $ (23.2   $ 111.1      $ 132.4      $ (16.3   $ 116.1   

Utility contracts

  Intangible assets, net     54.7        (21.3     33.4        54.7        (10.2     44.5   

Easements (1)

  Intangible assets, net     —          —          —          11.7        (0.4     11.3   

Leases

  Intangible assets, net     5.5        (3.0     2.5        5.2        (2.9     2.3   

Unpatented technology (2)

  Intangible assets, net     —          —          —          4.0        (2.4     1.6   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total intangible assets

    $ 194.5      $ (47.5   $ 147.0      $ 208.0      $ (32.2   $ 175.8   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Below-market sales contracts

  Below-market sales contracts - current   $ (77.0   $ 24.3      $ (52.7   $ (77.0   $ 19.9      $ (57.1

Below-market sales contracts

  Below-market sales contracts     (252.3     140.5        (111.8     (252.3     87.9        (164.4
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total below-market sales contracts

    $ (329.3   $ 164.8      $ (164.5   $ (329.3   $ 107.8      $ (221.5
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Intangible Asset

   Useful Life (years)

Permits

   15 - 28

Utility contracts

   5

Leases

   1.5 - 4.5
     (In Millions)  
     Amount  

Year Ending December 31

  

2012

   $ 18.0   

2013

     17.9   

2014

     17.9   

2015

     6.0   

2016

     6.0   
  

 

 

 

Total

   $ 65.8   
  

 

 

 
     (In Millions)  
     Amount  

Year Ending December 31

  

2012

   $ 48.8   

2013

     45.3   

2014

     23.0   

2015

     23.0   

2016

     23.1   
  

 

 

 

Total

   $ 163.2   
  

 

 

 
Fair Value Of Financial Instruments (Tables)
     (In Millions)  
     December 31, 2011      December 31, 2010  
     Carrying
Value
     Fair
Value
     Carrying
Value
     Fair
Value
 

Long-term receivables:

           

Customer supplemental payments

   $ 22.3       $ 20.8       $ 22.3       $ 19.5   

ArcelorMittal USA — Receivable

     26.5         30.7         32.8         38.9   

Other

     10.0         10.0         8.1         8.1   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total long-term receivables (1)

   $ 58.8       $ 61.5       $ 63.2       $ 66.5   
  

 

 

    

 

 

    

 

 

    

 

 

 

Long-term debt:

           

Term loan — $1.25 billion

   $ 897.2       $ 897.2       $ —         $ —     

Senior notes — $700 million

     699.3         726.4         —           —     

Senior notes — $1.3 billion

     1,289.2         1,399.4         990.3         972.5   

Senior notes — $400 million

     398.0         448.8         397.8         422.8   

Senior notes — $325 million

     325.0         348.7         325.0         355.6   

Customer Borrowings

     5.1         5.1         4.0         4.0   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total long-term debt

   $ 3,613.8       $ 3,825.6       $ 1,717.1       $ 1,754.9   
  

 

 

    

 

 

    

 

 

    

 

 

 
             (In Millions)          
             Derivative Assets (Level 3)           
     Year Ended
December 31,
 
             2011                     2010          

Beginning balance — January 1

   $ 45.6      $ 63.2   

Total gains

    

Included in earnings

     403.0        851.7   

Included in other comprehensive income

     —          —     

Settlements

     (319.7     (707.5

Transfers into Level 3

     49.0        —     

Transfers out of Level 3

     (20.0     (161.8
  

 

 

   

 

 

 

Ending balance — December 31

   $ 157.9      $ 45.6   
  

 

 

   

 

 

 

Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date

   $ 403.0      $ 120.2   
  

 

 

   

 

 

 
Debt And Credit Facilities (Tables)
Schedule Of Long-term Debt
Lease Obligations (Tables)
Future Minimum Lease Payments
     (In Millions)  
     Capital
Leases
    Operating
Leases
 

2012

   $ 87.1      $ 24.2   

2013

     60.2        23.9   

2014

     55.2        18.9   

2015

     44.0        12.0   

2016

     28.9        7.8   

2017 and thereafter

     73.4        25.0   
  

 

 

   

 

 

 

Total minimum lease payments

   $ 348.8      $ 111.8   
    

 

 

 

Amounts representing interest

     64.2     
  

 

 

   

Present value of net minimum lease payments

   $ 284.6 (1)   
  

 

 

   
Environmental And Mine Closure Obligations (Tables)
     (In Millions)  
     December 31,  
     2011      2010  

Environmental

   $ 15.5       $ 13.7   

Mine closure

     

LTVSMC

     16.5         17.1   

Operating mines:

     

U.S Iron Ore

     74.3         62.7   

Eastern Canadian Iron Ore

     68.0         49.3   

North American Coal

     36.3         34.7   

Asia Pacific Iron Ore

     16.3         15.4   

Other

     8.8         6.2   
  

 

 

    

 

 

 

Total mine closure

     220.2         185.4   
  

 

 

    

 

 

 

Total environmental and mine closure obligations

     235.7         199.1   

Less current portion

     13.7         14.2   
  

 

 

    

 

 

 

Long term environmental and mine closure obligations

   $ 222.0       $ 184.9   
  

 

 

    

 

 

 
     (In Millions)  
     December 31,  
     2011     2010  

Asset retirement obligation at beginning of period

   $ 168.3      $ 103.9   

Accretion expense

     16.1        13.1   

Exchange rate changes

     0.1        2.5   

Revision in estimated cash flows

     5.9        1.0   

Payments

     (0.7     (8.4

Acquired through business combinations

     14.0        56.2   
  

 

 

   

 

 

 

Asset retirement obligation at end of period

   $ 203.7      $ 168.3   
  

 

 

   

 

 

 
Pensions And Other Postretirement Benefits (Tables)
     (In Millions)  
     2011      2010      2009  

Defined benefit pension plans

   $ 37.8       $ 45.6       $ 50.8   

Defined contribution pension plans

     5.7         4.2         2.1   

Other postretirement benefits

     26.8         24.2         25.5   
  

 

 

    

 

 

    

 

 

 

Total

   $ 70.3       $ 74.0       $ 78.4   
  

 

 

    

 

 

    

 

 

 
     (In Millions)  
     Pension Benefits     Other Benefits  

Change in benefit obligations:

   2011     2010     2011     2010  

Benefit obligations — beginning of year

   $ 1,022.3      $ 750.8      $ 440.2      $ 333.0   

Service cost (excluding expenses)

     23.6        18.5        11.1        7.5   

Interest cost

     51.4        52.9        22.3        22.0   

Plan amendments

     —          3.7        —          —     

Actuarial loss

     117.3        57.5        36.5        43.6   

Benefits paid

     (67.3     (67.0     (25.5     (28.2

Participant contributions

     —          —          4.6        6.2   

Federal subsidy on benefits paid

     —          —          0.9        0.9   

Exchange rate gain

     (5.9     10.2        (1.7     2.9   

Acquired through business combinations

     —          195.7        —          52.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Benefit obligations — end of year

   $ 1,141.4      $ 1,022.3      $ 488.4      $ 440.2   
  

 

 

   

 

 

   

 

 

   

 

 

 

Change in plan assets:

                        

Fair value of plan assets — beginning of year

   $ 734.3      $ 483.4      $ 174.2      $ 136.7   

Actual return on plan assets

     10.8        87.1        1.9        20.1   

Participant contributions

     —          —          1.6        1.6   

Employer contributions

     70.1        45.6        23.2        23.7   

Asset transfers

     —          —          —          —     

Benefits paid

     (67.3     (67.0     (7.4     (7.9

Exchange rate gain

     (3.8     8.9        —          —     

Acquired through business combinations

     —          176.3        —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Fair value of plan assets — end of year

   $ 744.1      $ 734.3      $ 193.5      $ 174.2   
  

 

 

   

 

 

   

 

 

   

 

 

 

Funded status at December 31:

                        

Fair value of plan assets

   $ 744.1      $ 734.3      $ 193.5      $ 174.2   

Benefit obligations

     (1,141.4     (1,022.3     (488.4     (440.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Funded status (plan assets less benefit obligations)

   $ (397.3   $ (288.0   $ (294.9   $ (266.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Amount recognized at December 31

   $ (397.3   $ (288.0   $ (294.9   $ (266.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts recognized in Statements of Financial Position:

                        

Current liabilities

   $ (2.6   $ (3.1   $ (23.8   $ (22.9

Noncurrent liabilities

     (394.7     (284.9     (271.1     (243.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Net amount recognized

   $ (397.3   $ (288.0   $ (294.9   $ (266.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts recognized in accumulated other comprehensive income:

                        

Net actuarial loss

   $ 409.1      $ 269.3      $ 182.9      $ 152.3   

Prior service cost

     18.8        24.2        8.1        11.8   

Transition asset

     —          —          (3.0     (5.7
  

 

 

   

 

 

   

 

 

   

 

 

 

Net amount recognized

   $ 427.9      $ 293.5      $ 188.0      $ 158.4   
  

 

 

   

 

 

   

 

 

   

 

 

 

The estimated amounts that will be amortized from accumulated other
comprehensive income into net periodic benefit cost in 2012:

                        

Net actuarial loss

   $ 29.5        $ 11.4     

Prior service cost

     3.9          3.0     

Transition asset

     —            (3.0  
  

 

 

     

 

 

   

Net amount recognized

   $ 33.4        $ 11.4     
  

 

 

     

 

 

   
     (In Millions)  
     2011  
     Pension Plans     Other Benefits  
     Salaried     Hourly     Mining     SERP     Total     Salaried     Hourly     Total  

Fair value of plan assets

   $ 289.1      $ 451.8      $ 3.2        $—        $ 744.1      $ —        $ 193.5      $ 193.5   

Benefit obligation

     (419.3     (708.0     (5.3     (8.8     (1,141.4     (70.7     (417.7     (488.4

Funded status

   $ (130.2   $ (256.2   $ (2.1   $ (8.8   $ (397.3   $ (70.7   $ (224.2   $ (294.9
     2010  
     Pension Plans     Other Benefits  
     Salaried     Hourly     Mining     SERP     Total     Salaried     Hourly     Total  

Fair value of plan assets

   $ 275.3      $ 456.7      $ 2.3        $—        $ 734.3      $ —        $ 174.2      $ 174.2   

Benefit obligation

     (373.8     (635.3     (4.4     (8.8     (1,022.3     (63.7     (376.5     (440.2

Funded status

   $ (98.5   $ (178.6   $ (2.1   $ (8.8   $ (288.0   $ (63.7   $ (202.3   $ (266.0
     (In Millions)  
     Pension Benefits     Other Benefits  
     2011     2010     2009     2011     2010     2009  

Service cost

   $ 23.6      $ 18.5      $ 14.3      $ 11.1      $ 7.5      $ 5.4   

Interest cost

     51.4        52.9        42.6        22.3        22.0        18.9   

Expected return on plan assets

     (61.2     (53.3     (37.1     (16.1     (12.9     (9.1

Amortization:

            

Net asset

     —          —          —          (3.0     (3.0     (3.0

Prior service costs (credits)

     4.4        4.4        4.2        3.7        1.7        1.8   

Net actuarial loss

     19.6        23.1        26.8        8.8        8.9        11.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic benefit cost

   $ 37.8      $ 45.6      $ 50.8      $ 26.8      $ 24.2      $ 25.5   

Acquired through business combinations

     —          17.7        —          —          2.4        —     

Current year actuarial (gain)/loss

     165.3        (3.1     12.1        46.8        34.6        2.2   

Amortization of net loss

     (19.6     (23.1     (26.8     (8.8     (8.9     (11.5

Current year prior service cost

     —          3.7        3.0        —          —          —     

Amortization of prior service (cost) credit

     (4.4     (4.4     (4.2     (3.7     (1.7     (1.8

Amortization of transition asset

     —          —          —          3.0        3.0        3.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recognized in other comprehensive income

   $ 141.3      $ (9.2   $ (15.9   $ 37.3      $ 29.4      $ (8.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recognized in net periodic cost and other comprehensive income

   $ 179.1      $ 36.4      $ 34.9      $ 64.1      $ 53.6      $ 17.4   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    (In Millions)  
    Pension Benefits     Other Benefits  
    2011     2010     2009     2011     2010     2009  

Effect of change in mine ownership & noncontrolling interest

  $ 53.3      $ 49.9      $ 50.9      $ 12.5      $ 10.7      $ 10.1   

Actual return on plan assets

    10.8        87.1        63.0        1.9        20.1        27.8   
     2011     2010  

U.S. plan health care cost trend rate assumed for next year

     7.50     8.00

Canadian plan health care cost trend rate assumed for next year

     8.00        8.50   

Ultimate health care cost trend rate

     5.00        5.00   

U.S. plan year that the ultimate rate is reached

     2017        2017   

Canadian plan year that the ultimate rate is reached

     2018        2018   
     (In Millions)  
     Increase      Decrease  

Effect on total of service and interest cost

   $ 5.7       $ (4.4

Effect on postretirement benefit obligation

     60.0         (48.3
     Pension Assets     VEBA Assets  

Asset Category

   2012
Target
Allocation
    Percentage of
Plan Assets at
December 31,
    2012
Target

Allocation
    Percentage of
Plan Assets at
December 31,
 
     2011     2010       2011     2010  

Equity securities

     43.1     41.7     42.0     41.8     42.0     44.4

Fixed income

     30.2        31.1        30.6        32.1        33.5        37.4   

Hedge funds

     13.8        13.5        14.4        14.9        14.6        13.8   

Private equity

     5.3        5.2        5.0        6.2        4.5        4.3   

Structured credit

     3.8        6.0        5.4        —          —          —     

Real estate

     3.8        2.2        2.1        5.0        5.3        —     

Cash

     —          0.3        0.5        —          0.1        0.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     100.0     100.0     100.0     100.0     100.0     100.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     (In Millions)  
     December 31, 2011  

Asset Category

   Quoted Prices in Active
Markets for Identical
Assets/Liabilities
(Level 1)
     Significant Other
Observable
Inputs

(Level 2)
     Significant
Unobservable
Inputs

(Level 3)
     Total  

Equity securities:

           

U.S. large-cap

   $ 191.1       $    —         $    —         $ 191.1   

U.S. small/mid-cap

     29.2         —           —           29.2   

International

     90.0         —           —           90.0   

Fixed income

     231.1         —           —           231.1   

Hedge funds

     —           —           100.7         100.7   

Private equity

     8.6         —           30.1         38.7   

Structured credit

     —           —           44.9         44.9   

Real estate

     —           —           16.5         16.5   

Cash

     1.9         —           —           1.9   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 551.9       $ —         $ 192.2       $ 744.1   
  

 

 

    

 

 

    

 

 

    

 

 

 
     (In Millions)  
     December 31, 2010  

Asset Category

   Quoted Prices in Active
Markets for Identical
Assets/Liabilities
(Level 1)
     Significant  Other
Observable
Inputs

(Level 2)
     Significant
Unobservable
Inputs

(Level 3)
     Total  

Equity securities:

           

U.S. large-cap

   $ 122.4       $    —         $    —         $ 122.4   

U.S. small/mid-cap

     21.7         —           —           21.7   

International

     164.5         —           —           164.5   

Fixed income

     224.7         —           —           224.7   

Hedge funds

     —           —           105.8         105.8   

Private equity

     11.8         —           25.0         36.8   

Structured credit

     —           —           39.7         39.7   

Real estate

     —           —           15.5         15.5   

Cash

     3.2         —           —           3.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 548.3       $ —         $ 186.0       $ 734.3   
  

 

 

    

 

 

    

 

 

    

 

 

 
     (In Millions)  
     Year Ended December 31, 2011  
     Hedge Funds     Private Equity
Funds
    Structured
Credit Fund
     Real
Estate
    Total  

Beginning balance — January 1, 2011

   $ 105.8      $ 25.0      $ 39.7       $ 15.5      $ 186.0   

Actual return on plan assets:

           

Relating to assets still held at the reporting date

     (2.4     2.6        5.2         1.6        7.0   

Relating to assets sold during the period

     0.5        3.0        —           0.5        4.0   

Purchases

     35.8        4.4        —           —          40.2   

Sales

     (39.0     (4.9     —           (1.1     (45.0
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Ending balance — December 31, 2011

   $ 100.7      $ 30.1      $ 44.9       $ 16.5      $ 192.2   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 
     (In Millions)  
     Year Ended December 31, 2010  
     Hedge Funds      Private Equity
Funds
     Structured
Credit Fund
     Real
Estate
    Total  

Beginning balance — January 1, 2010

   $ 71.4       $ 18.2       $ 39.1       $ 14.4      $ 143.1   

Acquired through business combination

     17.0         —           —           —          17.0   

Actual return on plan assets:

             

Relating to assets still held at the reporting date

     2.4         3.4         0.5         1.5        7.8   

Relating to assets sold during the period

     —           0.1         —           —          0.1   

Purchases, sales and settlements

     15.0         3.3         0.1         (0.4     18.0   

Transfers in (out) of Level 3

     —           —           —           —          —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Ending balance — December 31, 2010

   $ 105.8       $ 25.0       $ 39.7       $ 15.5      $ 186.0   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
     (In Millions)  

Defined benefit pension plans

   $ 54.5   

Other postretirement benefits

     29.4   
  

 

 

 

Total

   $ 83.9   
  

 

 

 
     (In Millions)  
     Pension
Benefits
     Other Benefits  
      Gross
Company
Benefits
     Less
Medicare
Subsidy
     Net
Company
Payments
 

          2012

   $ 73.3       $ 24.8       $ 1.0       $ 23.8   

          2013

     76.9         25.8         1.1         24.7   

          2014

     75.0         27.3         1.2         26.1   

          2015

     76.8         28.6         1.3         27.3   

          2016

     77.1         29.5         1.4         28.1   

2017-2021

     396.4         152.7         9.6         143.1   
     (In Millions)  
     December 31, 2011  
     Defined
Benefit
Pensions
    Other
Benefits
 

Fair value of plan assets

   $ 744.1      $ 193.5   

Benefit obligation

     1,141.4        488.4   
  

 

 

   

 

 

 

Underfunded status of plan

   $ (397.3   $ (294.9
  

 

 

   

 

 

 

Additional shutdown and early retirement benefits

   $ 40.0      $ 19.3   
  

 

 

   

 

 

 
      (In Millions)  
      Pension
Benefits
     Other Benefits  

Company Contributions

      VEBA      Direct
Payments
     Total  

2010

     45.6         17.4         21.1         38.5   

2011

     70.1         17.4         20.0         37.4   

2012 (Expected)*

     66.3         17.4         23.8         41.2   
     Pension Benefits     Other Benefits  
       2011         2010         2011         2010    

U.S. plan discount rate

     4.28     5.11     4.28     5.11

Canadian plan discount rate

     4.00        5.00        4.25        5.00   

Rate of compensation increase

     4.00        4.00        4.00        4.00   

U.S. expected return on plan assets

     8.25        8.50        8.25        8.50   

Canadian expected return on plan assets

     7.25        7.50        7.25        7.50   
     Pension Benefits     Other Benefits  
     2011     2010     2009     2011     2010     2009  

U.S. plan discount rate

     5.11     5.66     6.00     5.11     5.66     6.00

Canadian plan discount rate

     5.00        5.75/5.50 (2)      (1     5.00        6.00/5.75 (3)      (1

U.S. expected return on plan assets

     8.50        8.50        8.50        8.50        8.50        8.50   

Canadian expected return on plan assets

     7.50        7.50        (1     7.50        7.50        (1

Rate of compensation increase

     4.00        4.00        4.00        4.00        4.00        4.00   
     (In Millions)  
     December 31, 2011  

Asset Category

   Quoted Prices in Active
Markets for Identical
Assets/Liabilities
(Level 1)
     Significant Other
Observable
Inputs

(Level 2)
     Significant
Unobservable
Inputs

(Level 3)
     Total  

Equity securities:

           

U.S. large-cap

   $ 46.5       $  —         $ —         $ 46.5   

U.S. small/mid-cap

     7.9         —           —           7.9   

International

     26.8         —           —           26.8   

Fixed income

     64.9         —           —           64.9   

Hedge funds

     —           —           28.3         28.3   

Private equity

     1.9         —           6.8         8.7   

Real estate

     —           —           10.2         10.2   

Cash

     0.2         —           —           0.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 148.2       $ —         $ 45.3       $ 193.5   
  

 

 

    

 

 

    

 

 

    

 

 

 
     (In Millions)  
     December 31, 2010  

Asset Category

   Quoted Prices in Active
Markets for Identical
Assets/Liabilities
(Level 1)
     Significant  Other
Observable
Inputs

(Level 2)
     Significant
Unobservable
Inputs

(Level 3)
     Total  

Equity securities:

           

U.S. large-cap

   $ 38.5       $  —         $ —         $ 38.5   

U.S. small/mid-cap

     11.7         —           —           11.7   

International

     27.2         —           —           27.2   

Fixed income

     65.2         —           —           65.2   

Hedge funds

     —           —           24.0         24.0   

Private equity

     2.5         —           4.9         7.4   

Cash

     0.2         —           —           0.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 145.3       $ —         $ 28.9       $ 174.2   
  

 

 

    

 

 

    

 

 

    

 

 

 
Stock Compensation Plans (Tables)

Performance

Share

Plan Year

   Performance
Shares
Outstanding
    Forfeitures (1)      Grant Date      Performance Period  

2011

     169,632        18,848         March 8, 2011         1/1/2011-12/31/2013   

2011

     2,090        —           April 14, 2011         1/1/2011-12/31/2013   

2011

     1,290        —           May 2, 2011         1/1/2011-12/31/2013   

2010

     209,853        23,317         March 8, 2010         1/1/2010-12/31/2012   

2010

     12,480 (2)      —           March 8, 2010         1/1/2010-12/31/2012   

2010

     480        —           April 6, 2010         1/1/2010-12/31/2012   

2010

     590        —           April 12, 2010         1/1/2010-12/31/2012   

2010

     2,130        —           April 26, 2010         1/1/2010-12/31/2012   

2010

     12,080        —           May 3, 2010         1/1/2010-12/31/2012   

2010

     550        —           June 14, 2010         1/1/2010-12/31/2012   

2010

     670        —           August 16, 2010         1/1/2010-12/31/2012   

2009

     372,881        22,089         March 9, 2009         1/1/2009-12/31/2011   

2009

     3,825        —           August 31, 2009         1/1/2009-12/31/2011   

2009

     44,673 (2)      —           December 17, 2009         1/1/2009-12/31/2011   

Year of Grant

   Unrestricted
Equity
Grant
Shares
     Restricted
Equity
Grant
Shares
     Deferred
Equity
Grant
Shares
 

2009

     7,788         15,118         2,596   

2010

     3,963         7,926         1,321   

2011

     1,850         6,475         1,850   
     (In Millions, except  per
share amount)
 
     2011     2010     2009  

Cost of goods sold and operating expenses

   $ 2.7      $ 2.8      $ 1.2   

Selling, general and administrative expenses

     13.2        12.7        11.0   

Reduction of operating income from continuing operations before income taxes and equity income (loss) from ventures

     15.9        15.5        12.2   

Income tax benefit

     (5.6     (5.4     (4.3
  

 

 

   

 

 

   

 

 

 

Reduction of net income attributable to Cliffs shareholders

   $ 10.3      $ 10.1      $ 7.9   
  

 

 

   

 

 

   

 

 

 

Reduction of earnings per share attributable to Cliffs shareholders:

      

Basic

   $ 0.07      $ 0.07      $ 0.06   
  

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.07      $ 0.07      $ 0.06   
  

 

 

   

 

 

   

 

 

 

Period (1)

   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)
 

First Quarter

   $96.70      2.81         94.4     1.17     0.58   $77.90      80.60

Second Quarter

   $93.85      2.81         94.4     1.17     0.58   $75.64      80.60
     2011      2010      2009  
     Shares     Weighted-
Average
Exercise
Price
     Shares     Weighted-
Average
Exercise
Price
     Shares     Weighted-
Average
Exercise
Price
 

Stock options:

              

Options outstanding at beginning of year

     —          —           —          —           2,500      $ 5.42   

Granted during the year

     —             —             —       

Exercised

     —          —           —          —           (2,500     5.42   

Cancelled or expired

     —             —             —       
  

 

 

      

 

 

      

 

 

   

Options outstanding at end of year

     —          —           —          —           —          —     

Options exercisable at end of year

     —          —           —          —           —          —     

Restricted awards:

              

Outstanding and restricted at beginning of year

     371,712           290,702           315,684     

Granted during the year

     125,059           133,666           184,904     

Vested

     (61,330        (50,156        (201,486  

Cancelled

     (10,275        (2,500        (8,400  
  

 

 

      

 

 

      

 

 

   

Outstanding and restricted at end of year

     425,166           371,712           290,702     

Performance shares:

              

Outstanding at beginning of year

     843,238           823,393           594,115     

Granted during the year (1)

     263,816           376,524           555,046     

Issued (2)

     (215,870        (343,321        (312,336  

Forfeited/cancelled

     (13,749        (13,358        (13,432  
  

 

 

      

 

 

      

 

 

   

Outstanding at end of year

     877,435           843,238           823,393     

Vested or expected to vest as of December 31, 2011

     833,224               

Directors' retainer and voluntary shares:

              

Outstanding at beginning of year

     2,509           4,596           2,183     

Granted during the year

     1,815           2,075           4,602     

Vested

     (1,713        (4,162        (2,189  
  

 

 

      

 

 

      

 

 

   

Outstanding at end of year

     2,611           2,509           4,596     

Reserved for future grants or awards at end of year:

              

Employee plans

     6,760,871               

Directors' plans

     115,189               
  

 

 

             

Total

     6,876,060               
  

 

 

             
     Shares     Weighted
Average
Grant Date
Fair Value
 

Outstanding, beginning of year

     1,217,459      $ 26.03   

Granted

     390,690      $ 88.60   

Vested

     (278,913   $ 42.73   

Forfeited/expired

     (24,024   $ 61.61   
  

 

 

   

Outstanding, end of year

     1,305,212      $ 43.19   
  

 

 

   
Income Taxes (Tables)
     (In Millions)  
     2011      2010      2009  

United States

   $ 1,506.5       $ 602.1       $ 136.6   

Foreign

     735.0         700.9         159.9   
  

 

 

    

 

 

    

 

 

 
   $ 2,241.5       $ 1,303.0       $ 296.5   
  

 

 

    

 

 

    

 

 

 
     (In Millions)  
     2011     2010     2009  

Current provision (benefit):

      

United States federal

   $ 246.8      $ 109.6      $ (44.5

United States state & local

     2.8        2.6        3.4   

Foreign

     237.1        166.1        2.8   
  

 

 

   

 

 

   

 

 

 
     486.7        278.3        (38.3

Deferred provision (benefit):

      

United States federal

     23.8        61.1        13.2   

United States state & local

     4.7        5.2        (6.1

Foreign

     (95.1     (51.1     53.7   
  

 

 

   

 

 

   

 

 

 
     (66.6     15.2        60.8   
  

 

 

   

 

 

   

 

 

 

Total provision on continuing operations

   $ 420.1      $ 293.5      $ 22.5   
  

 

 

   

 

 

   

 

 

 
     (In Millions)  
     2011     2010     2009  

Tax at U.S. statutory rate of 35 percent

   $ 784.5      $ 456.0      $ 103.8   

Increase (decrease) due to:

      

Foreign exchange remeasurement

     (62.6     —          —     

Non-taxable income related to noncontrolling interests

     (63.6     —          —     

Impact of tax law change

     —          16.1        —     

Percentage depletion in excess of cost depletion

     (153.4     (103.1     (66.2

Impact of foreign operations

     (49.4     (89.1     (44.3

Legal entity restructuring

     —          (87.4     —     

Income not subject to tax

     (67.5     —          —     

Non-taxable hedging income

     (32.4     —          —     

State taxes, net

     7.5        3.1        (2.1

Manufacturer's deduction

     (11.9     —          (0.1

Valuation allowance

     49.5        83.3        39.0   

Tax uncertainties

     17.7        —          —     

Other items — net

     1.7        14.6        (7.6
  

 

 

   

 

 

   

 

 

 

Income tax expense

   $ 420.1      $ 293.5      $ 22.5   
  

 

 

   

 

 

   

 

 

 
     (In Millions)  
     2011     2010     2009  

Other comprehensive (income) loss:

      

Minimum pension/OPEB liability

   $ (60.2   $ 14.0      $ (4.7

Mark-to-market adjustments

     (17.7     1.7        (12.3
  

 

 

   

 

 

   

 

 

 
   $ (77.9   $ 15.7      $ (17.0

Paid in capital — stock based compensation

   $ (4.6   $ (4.0   $ 3.5   

Discontinued Operations

   $ (9.2   $ (1.5   $ (1.7
     (In Millions)  
     2011     2010  

Deferred tax assets:

    

Pensions

   $ 154.8      $ 108.5   

Postretirement benefits other than pensions

     109.8        92.0   

Alternative minimum tax credit carryforwards

     228.5        153.4   

Capital loss carryforwards

     3.8        1.3   

Development

     —          0.9   

Asset retirement obligations

     42.9        42.0   

Operating loss carryforwards

     260.7        134.2   

Product inventories

     30.1        21.0   

Properties

     44.8        38.7   

Lease liabilities

     38.8        36.9   

Other liabilities

     149.3        85.4   
  

 

 

   

 

 

 

Total deferred tax assets before valuation allowance

     1,063.5        714.3   

Deferred tax asset valuation allowance

     223.9        172.7   
  

 

 

   

 

 

 

Net deferred tax assets

     839.6        541.6   

Deferred tax liabilities:

    

Properties

     1,345.0        222.6   

Investment in ventures

     155.9        72.7   

Intangible assets

     13.5        14.8   

Income tax uncertainties

     56.7        37.5   

Financial derivatives

     1.3        11.7   

Deferred revenue

     —          45.3   

Other assets

     98.2        58.3   
  

 

 

   

 

 

 

Total deferred tax liabilities

     1,670.6        462.9   
  

 

 

   

 

 

 

Net deferred tax (liabilities) assets

   $ (831.0   $ 78.7   
  

 

 

   

 

 

 
     (In Millions)  
     2011     2010  

Deferred tax assets:

    

United States

    

Current

   $ 17.7      $ 2.1   

Long-term

     162.8        134.5   
  

 

 

   

 

 

 

Total United States

     180.5        136.6   

Foreign

    

Current

     4.2        —     

Long-term

     46.7        5.8   
  

 

 

   

 

 

 

Total deferred tax assets

     231.4        142.4   

Deferred tax liabilities:

    

Foreign

    

Long-term

     1,062.4        63.7   
  

 

 

   

 

 

 

Total deferred tax liabilities

     1,062.4        63.7   
  

 

 

   

 

 

 

Net deferred tax (liabilities) assets

   $ (831.0   $ 78.7   
  

 

 

   

 

 

 
     (In Millions)  
     2011     2010      2009  

Unrecognized tax benefits balance as of January 1

   $ 79.8      $ 75.2       $ 53.7   

Increases for tax positions in prior years

     42.1        1.9         23.8   

Increases for tax positions in current year

     29.5        —           2.5   

Increase due to foreign exchange

     —          0.7         4.7   

Settlements

     (3.5     —           (9.1

Lapses in statutes of limitations

     (45.8     —           (0.4

Other

     —          2.0         —     
  

 

 

   

 

 

    

 

 

 

Unrecognized tax benefits balance as of December 31

   $ 102.1      $ 79.8       $ 75.2   
  

 

 

   

 

 

    

 

 

 
Accumulated Other Comprehensive Income (Loss) (Tables)
     (In Millions)  
     Pre-tax
Amount
    Tax
Benefit
(Provision)
    After-tax
Amount
 

As of December 31, 2009:

      

Postretirement benefit liability

   $ (451.9   $ 132.8      $ (319.1

Foreign currency translation adjustments

     163.1        —          163.1   

Unrealized net gain on derivative financial instruments

     5.7        (1.7     4.0   

Unrealized loss on securities

     43.1        (13.7     29.4   
  

 

 

   

 

 

   

 

 

 
   $ (240.0   $ 117.4      $ (122.6
  

 

 

   

 

 

   

 

 

 

As of December 31, 2010:

      

Postretirement benefit liability

   $ (452.0   $ 146.9      $ (305.1

Foreign currency translation adjustments

     329.9        (15.2     314.7   

Unrealized net gain on derivative financial instruments

     3.9        (1.2     2.7   

Unrealized gain on securities

     46.9        (13.3     33.6   
  

 

 

   

 

 

   

 

 

 
   $ (71.3   $ 117.2      $ 45.9   
  

 

 

   

 

 

   

 

 

 

As of December 31, 2011:

      

Postretirement benefit liability

   $ (615.9   $ 207.0      $ (408.9

Foreign currency translation adjustments

     312.5        —          312.5   

Unrealized net gain on derivative financial instruments

     1.7        (0.5     1.2   

Unrealized gain on securities

     2.5        0.1        2.6   
  

 

 

   

 

 

   

 

 

 
   $ (299.2   $ 206.6      $ (92.6
  

 

 

   

 

 

   

 

 

 
     Postretirement
Benefit
Liability
    Unrealized
Net Gain
(Loss) on
Securities
    Foreign
Currency
Translation
    Interest
Rate
Swap
    Net Gain
(Loss) on
Derivative
Financial
Instruments
    Accumulated
Other
Comprehensive
Income (Loss)
 

Balance December 31, 2008

   $ (343.3   $ (0.1   $ (68.6   $ (1.7   $ 19.1      $ (394.6

Change during 2009

     24.2        29.5        231.7        1.7        (15.1     272.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance December 31, 2009

     (319.1     29.4        163.1        —          4.0        (122.6

Change during 2010

     14.0        4.2        151.6        —          (1.3     168.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance December 31, 2010

     (305.1     33.6        314.7        —          2.7        45.9   

Change during 2011

     (103.8     (31.0     (2.2     —          (1.5     (138.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance December 31, 2011

   $ (408.9   $ 2.6      $ 312.5      $ —        $ 1.2      $ (92.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Earnings Per Share (Tables)
Earnings Per Share Computation
     (In Millions)  
     Year Ended December 31,  
     2011     2010     2009  

Net income from continuing operations attributable to Cliffs shareholders

   $ 1,637.6      $ 1,023.0      $ 208.5   

Loss from discontinued operations

     (18.5     (3.1     (3.4
  

 

 

   

 

 

   

 

 

 

Net income attributable to Cliffs shareholders

   $ 1,619.1      $ 1,019.9      $ 205.1   
  

 

 

   

 

 

   

 

 

 

Weighted average number of shares:

      

Basic

     140.2        135.3        125.0   

Employee stock plans

     0.8        0.8        0.8   
  

 

 

   

 

 

   

 

 

 

Diluted

     141.0        136.1        125.8   
  

 

 

   

 

 

   

 

 

 

Earnings per common share attributable to Cliffs shareholders — Basic:

      

Continuing operations

   $ 11.68      $ 7.56      $ 1.67   

Discontinued operations

     (0.13     (0.02     (0.03
  

 

 

   

 

 

   

 

 

 
   $ 11.55      $ 7.54      $ 1.64   
  

 

 

   

 

 

   

 

 

 

Earnings per common share attributable to Cliffs shareholders — Diluted:

      

Continuing operations

   $ 11.61      $ 7.51      $ 1.66   

Discontinued operations

     (0.13     (0.02     (0.03
  

 

 

   

 

 

   

 

 

 
   $ 11.48      $ 7.49      $ 1.63   
  

 

 

   

 

 

   

 

 

 
Cash Flow Information (Tables)
     (In Millions)  
   2011      2010      2009  

Taxes paid on income

   $ 275.3       $ 208.3       $ 64.8   

Interest paid on debt obligations

     175.1         34.2         25.3   
Related Parties (Tables)

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   
     (In Millions)  
      2011     2010     2009  

Product revenues to related parties

   $ 2,192.4      $ 1,165.5      $ 593.8   

Total product revenues

     6,551.7        4,416.8        2,216.2   

Related party product revenue as a percent of total product revenue

     33.5     26.4     26.8
Quarterly Results Of Operations (Unaudited) (Tables)
6 Months Ended 12 Months Ended
Jun. 30, 2011
Dec. 31, 2011
Quarterly Results Of Operations (Unaudited) [Abstract]
 
 
Schedule Of Quarterly Financial Information
 
Schedule Of Error Corrections And Prior Period Adjustments
 
     (In Millions, Except Per Share Amounts)  
     Three Months Ended     Six Months Ended  
     March 31, 2011     June 30, 2011     June 30, 2011  

Revenues from Product Sales and Services

      

Product

   $ 54.1      $ 46.0      $ 100.1   

Freight and venture partners' cost reimbursements

     —          (46.0     (46.0
  

 

 

   

 

 

   

 

 

 
     54.1        —          54.1   

Cost of Goods Sold and Operating Expenses

     (54.1     —          (54.1

Income from Continuing Operations

     8.4        7.7        16.1   

LESS: Income Attributable to Noncontrolling Interest

     45.9        38.1        84.0   
  

 

 

   

 

 

   

 

 

 

Net Income Attributable to Cliffs Shareholders

   $ (37.5   $ (30.4   $ (67.9

Earnings per Common Share Attributable to Cliffs Shareholders - Basic and Diluted

   $ (0.28   $ (0.22   $ (0.49
Business Summary And Significant Accounting Policies (Narrative) (Details)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2011
USD ($)
MT
Dec. 31, 2010
USD ($)
Dec. 31, 2009
USD ($)
Dec. 31, 2011
SMM [Member]
USD ($)
Dec. 31, 2010
SMM [Member]
USD ($)
Dec. 31, 2009
SMM [Member]
USD ($)
Dec. 31, 2011
Arcelor Mittal [Member]
Dec. 31, 2011
CLCC [Member]
USD ($)
Dec. 31, 2011
Consolidated Thompson [Member]
May 13, 2011
Consolidated Thompson [Member]
CAD ($)
Dec. 31, 2011
Amapa [Member]
USD ($)
Dec. 31, 2010
Amapa [Member]
USD ($)
Dec. 31, 2009
Amapa [Member]
USD ($)
Dec. 31, 2011
AusQuest [Member]
USD ($)
Jun. 30, 2011
AusQuest [Member]
USD ($)
Dec. 31, 2011
Hibbing And Cockatoo [Member]
USD ($)
Dec. 31, 2011
Sonoma [Member]
Dec. 31, 2011
Sonoma [Member]
CAWO [Member]
Dec. 31, 2011
Sonoma [Member]
Mining Assets [Member]
Dec. 31, 2011
Sonoma [Member]
Non- Mining Assets [Member]
Dec. 31, 2011
RenewaFUEL [Member]
USD ($)
Dec. 31, 2010
RenewaFUEL [Member]
USD ($)
Dec. 31, 2009
RenewaFUEL [Member]
USD ($)
Feb. 28, 2010
Wabush [Member]
Feb. 1, 2010
Wabush [Member]
Dec. 31, 2011
CAC [Member]
CAWO [Member]
Dec. 31, 2011
North American Iron Ore [Member]
Dec. 31, 2011
Metallurgical Coal Mines [Member]
Dec. 31, 2011
Thermal Coal Mines [Member]
Dec. 31, 2011
Eastern Canadian Iron Ore [Member]
USD ($)
Dec. 31, 2010
Eastern Canadian Iron Ore [Member]
USD ($)
Dec. 31, 2011
Eastern Canadian Iron Ore [Member]
Consolidated Thompson [Member]
Dec. 31, 2011
Eastern Canadian Iron Ore [Member]
WISCO [Member]
Dec. 31, 2011
U.S. Iron Ore [Member]
USD ($)
Dec. 31, 2010
U.S. Iron Ore [Member]
USD ($)
Dec. 31, 2009
U.S. Iron Ore [Member]
USD ($)
Dec. 31, 2011
North American Coal [Member]
USD ($)
Dec. 31, 2010
North American Coal [Member]
USD ($)
Dec. 31, 2009
North American Coal [Member]
USD ($)
Dec. 31, 2011
Asia Pacific Iron Ore [Member]
USD ($)
Dec. 31, 2010
Asia Pacific Iron Ore [Member]
USD ($)
Purchase price of acquiree, in dollars per share
 
 
 
 
 
 
 
 
 
$ 17.25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of mines
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 18.5 
$ 3.1 
$ 3.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discontinued Operation, Tax Effect of Discontinued Operation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax benefits to write the assets down to fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax benefits
420.1 
293.5 
22.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.5 
1.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excess of current cost over LIFO cost of iron ore inventories
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21.9 
2.5 
 
 
117.1 
112.4 
 
 
 
 
 
 
Iron ore concentrate inventory
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
49.1 
 
 
 
 
 
 
 
 
 
 
 
Deferred Revenue from prior year to be recongized in future years
15.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Decrease in cost of goods sold and operations expense
(4,105.7)
(3,155.6)
(2,030.3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(15.2)
4.6 
 
 
 
 
 
 
Tons of finished goods stored at ports on the lower Great Lakes to service customers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,200,000 
800,000 
 
 
 
 
 
 
Depreciation expense
237.8 
165.4 
120.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depletion expense
159.7 
95.5 
68.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase in inventory of finished goods
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
47.1 
 
 
 
 
 
 
 
 
 
 
 
Product Inventory Balance
291.3 
198.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
96.2 
43.5 
 
 
100.2 
101.1 
 
19.7 
16.1 
 
57.2 
34.7 
Inventory Write-down
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.6 
26.1 
 
 
 
Business Acquisition, Percentage of Voting Interests Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
45.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Description of venture operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Method Investment, Quoted Market Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Owned, Balance, Shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
68.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portion of Environmental Exit Costs, Reasonably Possible Additional Losses, Estimate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent ownership interest
 
 
 
 
 
 
 
 
 
 
30.00% 
 
 
30.00% 
 
50.00% 
 
 
 
 
 
 
 
 
26.80% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent ownership interest
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
 
 
 
 
Percent ownership interest in wholly-owned subsidiary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
Percent economic interest in venture
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
45.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent ownership interest in venture
79.00% 
 
 
 
 
 
21.00% 
 
 
 
 
 
 
 
 
 
 
 
8.33% 
45.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent interest owned
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
73.20% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent interest acquired
79.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments to acquire interest in venture
 
 
 
3.1 
3.3 
8.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of Sonoma coal production to coal washing services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investment
504.8 
509.0 
 
147.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
1,152.1 
196.5 
74.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill, Impairment Loss
27.8 
 
 
 
 
 
 
27.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EQUITY INCOME (LOSS) FROM VENTURES
9.7 
13.5 
(65.5)
 
 
 
 
 
 
 
32.4 
17.2 
(62.2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment charge
 
 
 
 
 
 
 
 
 
 
 
 
 
19.1 
 
 
 
 
 
 
16.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reimbursement for freight charges paid on behalf of customers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
224.3 
223.4 
93.7 
18.3 
41.9 
32.1 
 
 
Deferred revenue
15.8 
155.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Under take-or-pay contracts, customers purchased tons of pellets stored in upper lakes stockpiles
200,000 
2,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tons of pellets shipped deferred from previous year
2,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remaining Quantity Of Goods Deferred Revenue Revenue Recognized, Tons
100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated useful life, Repairs and maintenance
five 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in deferred revenue and below-market sales contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 91.7 
$ 58.1 
 
 
 
 
 
 
SMM is the appointed operator of the mine assets, non-mine assets and the washplant.
Business Summary And Significant Accounting Policies (Schedule Of Subsidiaries) (Details)
12 Months Ended
Dec. 31, 2011
Northshore [Member]
 
Related Party Transaction [Line Items]
 
Location
Minnesota 
Percent ownership interest
100.00% 
Operation
Iron Ore 
United Taconite [Member]
 
Related Party Transaction [Line Items]
 
Location
Minnesota 
Percent ownership interest
100.00% 
Operation
Iron Ore 
Wabush [Member]
 
Related Party Transaction [Line Items]
 
Location
Labrador/ Quebec, Canada 
Percent ownership interest
100.00% 
Operation
Iron Ore 
Bloom Lake [Member]
 
Related Party Transaction [Line Items]
 
Location
Quebec, Canada 
Percent ownership interest
75.00% 
Operation
Iron Ore 
Tilden [Member]
 
Related Party Transaction [Line Items]
 
Location
Michigan 
Percent ownership interest
85.00% 
Operation
Iron Ore 
Empire [Member]
 
Related Party Transaction [Line Items]
 
Location
Michigan 
Percent ownership interest
79.00% 
Operation
Iron Ore 
Asia Pacific Iron Ore [Member]
 
Related Party Transaction [Line Items]
 
Location
Western Australia 
Percent ownership interest
100.00% 
Operation
Iron Ore 
Pinnacle [Member]
 
Related Party Transaction [Line Items]
 
Location
West Virginia 
Percent ownership interest
100.00% 
Operation
Coal 
Oak Grove [Member]
 
Related Party Transaction [Line Items]
 
Location
Alabama 
Percent ownership interest
100.00% 
Operation
Coal 
CLCC [Member]
 
Related Party Transaction [Line Items]
 
Location
West Virginia 
Percent ownership interest
100.00% 
Operation
Coal 
Freewest [Member]
 
Related Party Transaction [Line Items]
 
Location
Ontario, Canada 
Percent ownership interest
100.00% 
Operation
Chromite 
Spider [Member]
 
Related Party Transaction [Line Items]
 
Location
Ontario, Canada 
Percent ownership interest
100.00% 
Operation
Chromite 
Business Summary And Significant Accounting Policies (Inventories On The Statements Of Consolidated Financial Position) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Inventory Finished Goods
$ 291.3 
$ 198.0 
Work-in Process
184.4 
71.2 
Total Inventory
475.7 
269.2 
U.S. Iron Ore [Member]
 
 
Inventory Finished Goods
100.2 
101.1 
Work-in Process
8.5 
9.7 
Total Inventory
108.7 
110.8 
Eastern Canadian Iron Ore [Member]
 
 
Inventory Finished Goods
96.2 
43.5 
Work-in Process
43.0 
21.2 
Total Inventory
139.2 
64.7 
North American Coal [Member]
 
 
Inventory Finished Goods
19.7 
16.1 
Work-in Process
110.5 
19.8 
Total Inventory
130.2 
35.9 
Asia Pacific Iron Ore [Member]
 
 
Inventory Finished Goods
57.2 
34.7 
Work-in Process
21.6 
20.4 
Total Inventory
78.8 
55.1 
Other Segment [Member]
 
 
Inventory Finished Goods
18.0 
2.6 
Work-in Process
0.8 
0.1 
Total Inventory
$ 18.8 
$ 2.7 
Business Summary And Significant Accounting Policies (Depreciation Methods And Useful Lives) (Details)
12 Months Ended
Dec. 31, 2011
U.S. Iron Ore And Eastern Canadian Iron Ore [Member] |
Building [Member]
 
Basis
Straight line 
Life (Years)
45 
U.S. Iron Ore And Eastern Canadian Iron Ore [Member] |
Equipment [Member]
 
Basis
Straight line/Double declining balance 
Life, minimum (Years)
10 
Life, maximum (Years)
20 
U.S. Iron Ore And Eastern Canadian Iron Ore [Member] |
Other Machinery And Equipment [Member]
 
Basis
Straight line 
Life, minimum (Years)
15 
Life, maximum (Years)
45 
U.S. Iron Ore And Eastern Canadian Iron Ore [Member] |
Computer Equipment [Member]
 
Basis
Straight line 
Life, minimum (Years)
Life, maximum (Years)
North American Coal [Member] |
Building [Member]
 
Basis
Straight line 
Life (Years)
30 
North American Coal [Member] |
Equipment [Member]
 
Basis
Straight line 
Life, minimum (Years)
Life, maximum (Years)
22 
North American Coal [Member] |
Other Machinery And Equipment [Member]
 
Basis
Straight line 
Life, minimum (Years)
Life, maximum (Years)
30 
North American Coal [Member] |
Computer Equipment [Member]
 
Basis
Straight line 
Life, minimum (Years)
Life, maximum (Years)
Asia Pacific Iron Ore [Member] |
Property Plant And Equipment [Member]
 
Basis
Straight line 
Life, minimum (Years)
Life, maximum (Years)
10 
Asia Pacific Iron Ore [Member] |
Mine Development [Member]
 
Basis
Production output 
Life (Years)
10 
Asia Pacific Iron Ore [Member] |
Vehicles And Office Equipment [Member]
 
Basis
Straight line 
Life, minimum (Years)
Life, maximum (Years)
Business Summary And Significant Accounting Policies (Value By Major Class Of Consolidated Depreciable Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Business Summary And Significant Accounting Policies [Abstract]
 
 
Land rights and mineral rights
$ 7,918.9 
$ 3,019.9 
Office and information technology
67.0 
60.4 
Buildings
132.2 
107.6 
Mining equipment
1,323.8 
628.5 
Processing equipment
1,441.8 
658.8 
Railroad equipment
164.3 
122.9 
Electric power facilities
57.9 
54.4 
Port facilities
64.1 
64.0 
Interest capitalized during construction
22.5 
19.4 
Land improvements
30.4 
25.0 
Other
43.2 
36.0 
Construction in progress
615.4 
140.0 
Property, Plant and Equipment, Gross, Total
11,881.5 
4,936.9 
Allowance for depreciation and depletion
(1,356.9)
(957.7)
Long-lived assets
$ 10,524.6 
$ 3,979.2 
Business Summary And Significant Accounting Policies (Book Value Of Land And Mineral Rights Disclosure) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Business Summary And Significant Accounting Policies [Abstract]
 
 
Land rights
$ 37.3 
$ 36.8 
Mineral rights:
 
 
Cost
7,881.6 
2,983.1 
Less depletion
533.9 
376.4 
Net mineral rights
$ 7,347.7 
$ 2,606.7 
Business Summary And Significant Accounting Policies (Investments In Unconsolidated Ventures) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Schedule of Equity Method Investments [Line Items]
 
 
Investment
$ 504.8 
$ 509.0 
Amapa [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Interest Percentage
30.00% 
 
Amapa [Member] |
Investments In Ventures [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Interest Percentage
30.00% 
 
Investment
498.6 
461.3 
AusQuest [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Interest Percentage
30.00% 
 
AusQuest [Member] |
Investments In Ventures [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Interest Percentage
30.00% 
 
Investment
3.7 
24.1 
Cockatoo [Member] |
Other Liabilities [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Interest Percentage
50.00% 1
 
Investment
(15.0)1
10.5 1
Hibbing [Member] |
Other Liabilities [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Interest Percentage
23.00% 
 
Investment
(6.8)
(5.8)
Other Equity Investees [Member] |
Investments In Ventures [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Investment
$ 24.3 
$ 18.9 
Business Summary And Significant Accounting Policies (Reimbursements Revenue Disclosure) (Details) (U.S. Iron Ore [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Reimbursement revenue
$ 224.3 
$ 223.4 
$ 93.7 
Shipping Handling And Transportation Costs [Member]
 
 
 
Reimbursement revenue
128.4 
83.6 
22.4 
Co Venturer [Member]
 
 
 
Reimbursement revenue
$ 95.9 
$ 139.8 
$ 71.3 
Segment Reporting (Narrative) (Details) (USD $)
In Billions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Percentage Of Revenue Attributable To Major Customers
10.00% 
10.00% 
10.00% 
Total revenue from three customers which individually account for more than 10 percent of our consolidated product revenue
$ 1.4 
$ 1.8 
$ 0.8 
Eastern Canadian Iron Ore [Member]
 
 
 
Number of mines
 
 
U.S. Iron Ore [Member]
 
 
 
Number of mines
 
 
Metallurgical Coal Mines [Member]
 
 
 
Number of mines
 
 
Thermal Coal Mines [Member]
 
 
 
Number of mines
 
 
Amapa [Member]
 
 
 
Percent ownership interest
30.00% 
 
 
Amapa [Member] |
Latin American Iron Ore [Member]
 
 
 
Percent ownership interest
30.00% 
 
 
Sonoma [Member] |
Asia Pacific Coal [Member]
 
 
 
Percent ownership interest
45.00% 
 
 
Segment Reporting (Schedule Of Segment Reporting Information, By Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Jun. 30, 2010
Mar. 31, 2010
Sep. 30, 2011
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Percentage of revenues from product sales and services
 
 
 
 
 
 
 
 
 
100.00% 
100.00% 
100.00% 
Revenues from product sales and services
$ 1,662.5 
$ 2,142.8 
$ 1,805.8 
$ 1,183.2 
$ 1,424.1 
$ 1,346.0 
$ 1,184.3 
$ 727.7 
 
$ 6,794.3 
$ 4,682.1 
$ 2,342.0 
Sales margin
496.2 
861.3 
731.6 
599.5 
483.5 
477.3 
415.2 
150.5 
 
2,688.6 
1,526.5 
311.7 
Other operating expense
 
 
 
 
 
 
 
 
 
(340.0)
(256.3)
(75.6)
Other income (expense)
 
 
 
 
 
 
 
 
 
(107.1)
32.8 
60.4 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY INCOME (LOSS) FROM VENTURES
 
 
 
 
 
 
 
 
16.1 
2,241.5 
1,303.0 
296.5 
Depreciation, depletion and amortization
 
 
 
 
 
 
 
 
 
426.9 
322.3 
236.6 
Capital additions
 
 
 
 
 
 
 
 
 
960.9 
275.8 
168.2 
TOTAL ASSETS
14,541.7 
 
 
 
7,778.2 
 
 
 
 
14,541.7 
7,778.2 
 
Operating Segments [Member]
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL ASSETS
14,008.1 
 
 
 
6,243.6 
 
 
 
 
14,008.1 
6,243.6 
 
U.S. Iron Ore [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenues from product sales and services
 
 
 
 
 
 
 
 
 
52.00% 
52.00% 
52.00% 
Revenues from product sales and services
 
 
 
 
 
 
 
 
 
3,509.9 
2,443.7 
1,211.6 
Sales margin
 
 
 
 
 
 
 
 
 
1,679.3 
788.4 
213.2 
Depreciation, depletion and amortization
 
 
 
 
 
 
 
 
 
86.2 
61.7 
67.4 
Capital additions
 
 
 
 
 
 
 
 
 
191.4 
84.7 
42.6 
TOTAL ASSETS
1,691.8 
 
 
 
1,537.1 
 
 
 
 
1,691.8 
1,537.1 
 
Eastern Canadian Iron Ore [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenues from product sales and services
 
 
 
 
 
 
 
 
 
17.00% 
10.00% 
10.00% 
Revenues from product sales and services
 
 
 
 
 
 
 
 
 
1,178.1 
477.7 
236.2 
Sales margin
 
 
 
 
 
 
 
 
 
290.9 
133.6 
62.3 
Depreciation, depletion and amortization
 
 
 
 
 
 
 
 
 
124.6 
41.9 
6.9 
Capital additions
 
 
 
 
 
 
 
 
 
303.1 
18.8 
 
TOTAL ASSETS
7,973.1 
 
 
 
629.6 
 
 
 
 
7,973.1 
629.6 
 
North American Coal [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenues from product sales and services
 
 
 
 
 
 
 
 
 
8.00% 
9.00% 
9.00% 
Revenues from product sales and services
 
 
 
 
 
 
 
 
 
512.1 
438.2 
207.2 
Sales margin
 
 
 
 
 
 
 
 
 
(58.4)
(28.6)
(71.9)
Depreciation, depletion and amortization
 
 
 
 
 
 
 
 
 
86.5 
60.4 
38.2 
Capital additions
 
 
 
 
 
 
 
 
 
181.0 
89.5 
20.8 
TOTAL ASSETS
1,814.4 
 
 
 
1,623.8 
 
 
 
 
1,814.4 
1,623.8 
 
Asia Pacific Iron Ore [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenues from product sales and services
 
 
 
 
 
 
 
 
 
20.00% 
24.00% 
23.00% 
Revenues from product sales and services
 
 
 
 
 
 
 
 
 
1,363.5 
1,123.9 
542.1 
Sales margin
 
 
 
 
 
 
 
 
 
699.5 
566.2 
87.2 
Depreciation, depletion and amortization
 
 
 
 
 
 
 
 
 
100.9 
133.9 
110.6 
Capital additions
 
 
 
 
 
 
 
 
 
262.0 
53.6 
96.2 
TOTAL ASSETS
1,511.2 
 
 
 
1,195.3 
 
 
 
 
1,511.2 
1,195.3 
 
Other Segment [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenues from product sales and services
 
 
 
 
 
 
 
 
 
3.00% 
4.00% 
6.00% 
Revenues from product sales and services
 
 
 
 
 
 
 
 
 
230.7 
198.6 
144.9 
Sales margin
 
 
 
 
 
 
 
 
 
77.3 
66.9 
20.9 
Depreciation, depletion and amortization
 
 
 
 
 
 
 
 
 
28.7 
24.4 
13.5 
Capital additions
 
 
 
 
 
 
 
 
 
23.4 
29.2 
8.6 
TOTAL ASSETS
1,017.6 
 
 
 
1,257.8 
 
 
 
 
1,017.6 
1,257.8 
 
Material Reconciling Items [Member]
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL ASSETS
$ 533.6 
 
 
 
$ 1,534.6 
 
 
 
 
$ 533.6 
$ 1,534.6 
 
Segment Reporting (Schedule Of Revenue And Long Lived Assets By Geographic Location) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Revenue
$ 1,662.5 
$ 2,142.8 
$ 1,805.8 
$ 1,183.2 
$ 1,424.1 
$ 1,346.0 
$ 1,184.3 
$ 727.7 
$ 6,794.3 
$ 4,682.1 
$ 2,342.0 
Long-lived assets
10,524.6 
 
 
 
3,979.2 
 
 
 
10,524.6 
3,979.2 
 
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
2,774.1 
1,966.3 
1,049.5 
Long-lived assets
2,684.9 
 
 
 
2,498.8 
 
 
 
2,684.9 
2,498.8 
 
China [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
2,123.4 
1,262.0 
711.5 
Canada [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
914.3 
696.5 
236.6 
Long-lived assets
6,701.4 
 
 
 
506.7 
 
 
 
6,701.4 
506.7 
 
Japan [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
460.4 
311.1 
157.4 
Other Countries [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
522.1 
446.2 
187.0 
Australia [Member]
 
 
 
 
 
 
 
 
 
 
 
Long-lived assets
$ 1,138.3 
 
 
 
$ 973.7 
 
 
 
$ 1,138.3 
$ 973.7 
 
Segment Reporting (Schedule Of Concentrations In Revenue) (Details)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Percentage of Total Revenue
100.00% 
100.00% 
100.00% 
Iron Ore [Member]
 
 
 
Percentage of Total Revenue
85.00% 
81.00% 
81.00% 
Coal [Member]
 
 
 
Percentage of Total Revenue
11.00% 
13.00% 
14.00% 
Reimbursement Revenue And Freight Revenue [Member]
 
 
 
Percentage of Total Revenue
4.00% 
6.00% 
5.00% 
Derivative Instruments And Hedging Activities (Narrative) (Details)
In Millions, unless otherwise specified
6 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2011
USD ($)
Dec. 31, 2011
USD ($)
Dec. 31, 2010
USD ($)
Dec. 31, 2009
USD ($)
Dec. 31, 2010
Gain Loss On Settlement Of Derivative Instrument [Member]
USD ($)
Dec. 31, 2009
Gain Loss On Settlement Of Derivative Instrument [Member]
USD ($)
Dec. 31, 2011
Foreign Exchange Contracts [Member]
USD ($)
Dec. 31, 2010
Foreign Exchange Contracts [Member]
USD ($)
Dec. 31, 2009
Foreign Exchange Contracts [Member]
USD ($)
Dec. 31, 2011
Foreign Exchange Contracts [Member]
AUD ($)
Dec. 31, 2010
Foreign Exchange Contracts [Member]
AUD ($)
Dec. 31, 2009
Foreign Exchange Contracts [Member]
AUD ($)
Dec. 31, 2011
Foreign Exchange Contract Hedge Designation [Member]
USD ($)
Dec. 31, 2010
Australian Hedge Contracts [Member]
USD ($)
Dec. 31, 2011
Australian Hedge Contracts [Member]
Dec. 31, 2011
Customer Contracts [Member]
USD ($)
Dec. 31, 2010
Customer Contracts [Member]
USD ($)
Dec. 31, 2011
Customer Contracts [Member]
Product Revenues [Member]
USD ($)
Dec. 31, 2010
Customer Contracts [Member]
Product Revenues [Member]
USD ($)
Dec. 31, 2009
Customer Contracts [Member]
Product Revenues [Member]
USD ($)
Dec. 31, 2011
U.S. Iron Ore And Eastern Canadian Iron Ore [Member]
USD ($)
Dec. 31, 2011
Eastern Canadian Iron Ore [Member]
Provisional Pricing Arrangements [Member]
Product Revenues [Member]
USD ($)
Dec. 31, 2011
U.S. Iron Ore [Member]
Provisional Pricing Arrangements [Member]
USD ($)
Dec. 31, 2011
Consolidated Thompson [Member]
Foreign Exchange Contracts [Member]
USD ($)
Jan. 11, 2011
Consolidated Thompson [Member]
Foreign Exchange Contracts [Member]
CAD ($)
Description of Cash Flow Hedge Activity
The policy allows for not more than 75 percent, but not less than 40 percent for up to 12 months and not less than 10 percent for up to 15 months, of forecasted net currency exposures that are probable to occur. For our Asia Pacific operations, the forecasted net currency exposures are in relation to anticipated operating costs designated as cash flow hedges on future sales. Prior to the implementation of this policy, our Asia Pacific operations had a policy in place that was specific to local operations and allowed no more than 75 percent of anticipated operating costs for up to 12 months and no more than 50 percent of operating costs for up to 24 months to be designated as cash flow hedges of future sales. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of gain/(loss) recognized in income on derivative
 
$ 6.5 
 
 
$ 960.7 
$ (28.2)
 
$ 39.8 
$ 85.7 
 
 
 
 
 
 
 
 
$ 178.0 
$ 120.2 
$ 22.2 
 
$ 809.1 
$ 309.4 
 
 
Notional amounts of outstanding exchange rate contracts
 
 
 
 
 
 
400.0 
70.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency spot rate
 
 
 
 
 
 
 
 
 
1.02 
1.02 
0.90 
 
1.02 
1.02 
 
 
 
 
 
 
 
 
 
 
Gain Loss On Foreign Currency Derivative Instruments Not Designated As Hedging Instruments
 
101.9 
39.8 
85.7 
 
 
8.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
93.1 
 
Notional Amount of Foreign Currency Derivative Instruments Not Designated as Hedging Instruments
 
 
 
 
 
 
15.0 
230.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,700.0 
Amount that will be reclassified to Product revenues in the next 12 months upon settlement of the related contracts
 
 
 
 
 
 
 
 
 
 
 
 
1.2 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized Gain (Loss) on Cash Flow Hedging Instruments
 
1.8 
 
 
 
 
 
 
 
 
 
 
 
1.9 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
82.1 
82.1 
82.6 
 
 
 
 
 
 
 
 
 
 
 
 
72.9 
45.6 
 
 
 
1.2 
 
 
 
 
Other current liabilities
148.1 
148.1 
80.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19.5 
 
 
 
 
Accounts receivable
$ 304.2 
$ 304.2 
$ 359.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 83.8 
 
 
 
 
Interest acquired
79.00% 
79.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments And Hedging Activities (Schedule Of Derivative Instruments In Statement Of Financial Position, Fair Value) (Details) (Imported) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Derivatives, Fair Value [Line Items]
 
 
Derivatives designated as hedging instruments under ASC 815
$ 165.9 
$ 84.6 
Derivative Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivatives designated as hedging instruments under ASC 815
23.0 
 
Designated As Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivatives designated as hedging instruments under ASC 815
5.2 
2.8 
Designated As Hedging Instrument [Member] |
Derivative Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
3.5 
 
Designated As Hedging Instrument [Member] |
Foreign Exchange Contracts [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Cash Flow Hedge Derivative Instrument Assets at Fair Value
5.2 
 
Description of Location of Foreign Currency Derivatives on Balance Sheet
Other currentliabilities 
 
Designated As Hedging Instrument [Member] |
Foreign Exchange Contracts [Member] |
Derivative Financial Instruments Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Cash Flow Hedge Derivative Instrument Assets at Fair Value
 
2.8 
Description of Location of Foreign Currency Derivatives on Balance Sheet
Derivative assets (current) 
Derivative assets(current) 
Designated As Hedging Instrument [Member] |
Foreign Exchange Contracts [Member] |
Derivative Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value
3.5 
 
Nondesignated [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivatives designated as hedging instruments under ASC 815
160.7 
81.8 
Nondesignated [Member] |
Derivative Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivatives designated as hedging instruments under ASC 815
19.5 
 
Nondesignated [Member] |
Foreign Exchange Contracts [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivatives designated as hedging instruments under ASC 815
2.8 
2.0 
Nondesignated [Member] |
Foreign Exchange Contracts [Member] |
Derivative Financial Instruments Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Description of Location of Foreign Currency Derivatives on Balance Sheet
Derivative assets(current) 
Derivative assets(current) 
Derivatives designated as hedging instruments under ASC 815
 
34.2 
Nondesignated [Member] |
Foreign Exchange Contracts [Member] |
Deposits and Miscellaneous [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Description of Location of Foreign Currency Derivatives on Balance Sheet
Other non-current assets 
Other non-current assets 
Nondesignated [Member] |
Customer Contracts [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Description of Location of Foreign Currency Derivatives on Balance Sheet
Derivative assets(current) 
Derivative assets(current) 
Derivatives designated as hedging instruments under ASC 815
72.9 
 
Nondesignated [Member] |
Customer Contracts [Member] |
Derivative Financial Instruments Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivatives designated as hedging instruments under ASC 815
 
45.6 
Nondesignated [Member] |
Provisional Pricing Arrangements [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivatives designated as hedging instruments under ASC 815
1.2 
 
Nondesignated [Member] |
Provisional Pricing Arrangements [Member] |
Derivative Financial Instruments Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Description of Location of Foreign Currency Derivatives on Balance Sheet
Derivative assets(current) 
 
Nondesignated [Member] |
Provisional Pricing Arrangements [Member] |
Derivative Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liability, Fair Value, Gross Liability
19.5 
 
Nondesignated [Member] |
Provisional Pricing Arrangements [Member] |
Accounts Receivable [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Description of Location of Foreign Currency Derivatives on Balance Sheet
Accountsreceivable 
 
Derivatives designated as hedging instruments under ASC 815
$ 83.8 
 
Nondesignated [Member] |
Provisional Pricing Arrangements [Member] |
Other Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Description of Location of Foreign Currency Derivatives on Balance Sheet
Other currentliabilities 
 
Derivative Instruments And Hedging Activities (Schedule Of Derivative Gains (Losses) Recognized In Accumulated Other Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Amount of Gain Recognized in OCI on Derivative (Effective Portion)
$ 1.8 
$ 1.9 
 
Amount of Gain Reclassified from Accumulated OCI into Income (Effective Portion)
3.3 
3.2 
15.1 
Australian Dollar Foreign Exchange Contract Hedge Designation [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Amount of Gain Recognized in OCI on Derivative (Effective Portion)
1.8 
1.9 
 
Australian Dollar Foreign Exchange Contract Hedge Designation [Member] |
Product Revenues [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Amount of Gain Reclassified from Accumulated OCI into Income (Effective Portion)
2.6 
   
   
Australian Dollar Foreign Exchange Contract Prior To De-Designation [Member] |
Product Revenues [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Amount of Gain Reclassified from Accumulated OCI into Income (Effective Portion)
$ 0.7 
$ 3.2 
$ 15.1 
Derivative Instruments And Hedging Activities (Derivatives Not Designated As Hedging Instruments Disclosure) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Derivative [Line Items]
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
$ 1,090.0 
$ 1,131.8 
$ 191.6 
Foreign Exchange Contracts [Member] |
Product Revenues [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
1.0 
11.1 
5.4 
Foreign Exchange Contracts [Member] |
Other Income (Expense) [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
101.9 
39.8 
85.7 
Customer Supply Agreements [Member] |
Product Revenues [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
178.0 
120.2 
22.2 
Provisional Pricing Arrangements [Member] |
Product Revenues [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
809.1 
960.7 
(28.2)
United Taconite [Member] |
Product Revenues [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
 
 
$ 106.5 
Acquisitions And Other Investments (Narrative) (Details)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2011
USD ($)
Sep. 30, 2011
USD ($)
Jun. 30, 2011
USD ($)
Mar. 31, 2011
USD ($)
Dec. 31, 2010
USD ($)
Sep. 30, 2010
USD ($)
Jun. 30, 2010
USD ($)
Mar. 31, 2010
USD ($)
Dec. 31, 2011
USD ($)
Dec. 31, 2010
USD ($)
Dec. 31, 2009
USD ($)
Feb. 1, 2010
Wabush [Member]
Jun. 30, 2011
Consolidated Thompson [Member]
Dec. 31, 2011
Consolidated Thompson [Member]
USD ($)
Dec. 31, 2009
Consolidated Thompson [Member]
USD ($)
May 12, 2011
Consolidated Thompson [Member]
CAD ($)
Dec. 31, 2011
WISCO [Member]
Dec. 31, 2011
Wabush [Member]
Dec. 31, 2010
Wabush [Member]
T
Feb. 28, 2010
Wabush [Member]
Dec. 31, 2010
Freewest [Member]
USD ($)
Dec. 31, 2010
Freewest [Member]
CAD ($)
Mar. 31, 2010
Freewest [Member]
Dec. 31, 2009
Freewest [Member]
Dec. 31, 2011
Freewest [Member]
Ferrochrome [Member]
Dec. 31, 2011
Freewest [Member]
Chromite Concentrate [Member]
Dec. 31, 2010
Spider [Member]
CAD ($)
Jul. 26, 2010
Spider [Member]
Jul. 6, 2010
Spider [Member]
Jun. 30, 2010
Spider [Member]
Dec. 31, 2011
Spider [Member]
Big Daddy's Chromite Deposit [Member]
Dec. 31, 2011
CLCC [Member]
Dec. 31, 2010
CLCC [Member]
Dec. 31, 2010
CLCC [Member]
Metallurgical Coal [Member]
T
Dec. 31, 2010
CLCC [Member]
Thermal Coal [Member]
T
Dec. 31, 2011
Scenario, Previously Reported [Member]
Consolidated Thompson [Member]
USD ($)
Dec. 31, 2010
Scenario, Previously Reported [Member]
Wabush [Member]
USD ($)
Dec. 31, 2010
Scenario, Previously Reported [Member]
Freewest [Member]
USD ($)
Dec. 31, 2010
Scenario, Previously Reported [Member]
Spider [Member]
USD ($)
Dec. 31, 2011
Scenario, Previously Reported [Member]
CLCC [Member]
USD ($)
Dec. 31, 2010
Scenario, Adjustment [Member]
Wabush [Member]
USD ($)
Dec. 31, 2011
Scenario, Adjustment [Member]
Consolidated Thompson [Member]
USD ($)
Dec. 31, 2010
Scenario, Adjustment [Member]
Wabush [Member]
USD ($)
Feb. 1, 2010
Scenario, Adjustment [Member]
Wabush [Member]
USD ($)
Dec. 31, 2010
Scenario, Adjustment [Member]
Freewest [Member]
USD ($)
Dec. 31, 2010
Scenario, Adjustment [Member]
Spider [Member]
USD ($)
Jul. 6, 2010
Scenario, Adjustment [Member]
Spider [Member]
USD ($)
Dec. 31, 2011
Scenario, Adjustment [Member]
CLCC [Member]
USD ($)
Jul. 30, 2010
Scenario, Adjustment [Member]
CLCC [Member]
USD ($)
Dec. 31, 2010
Contractual Rights [Member]
Wabush [Member]
USD ($)
Dec. 31, 2011
Construction Permits [Member]
CLCC [Member]
USD ($)
Dec. 31, 2011
Lease Agreements [Member]
CLCC [Member]
USD ($)
Dec. 31, 2010
Permits [Member]
Wabush [Member]
USD ($)
Dec. 31, 2010
Lower Limit [Member]
Wabush [Member]
T
Dec. 31, 2010
Lower Limit [Member]
CLCC [Member]
Metallurgical Coal [Member]
T
Dec. 31, 2010
Upper Limit [Member]
Wabush [Member]
T
Dec. 31, 2010
Upper Limit [Member]
CLCC [Member]
Thermal Coal [Member]
T
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent ownership interest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
73.20% 
 
100.00% 
 
 
 
 
100.00% 
 
 
4.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Ownership Percentage by Parent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
85.00% 
52.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate acquisition consideration
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 4,600.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 4,554.0 
$ 103.0 
$ 185.9 
$ 56.9 
$ 774.5 
 
$ 4,554.0 
$ 103.0 
$ 103.0 
$ 185.9 
$ 56.9 
 
$ 775.9 
 
 
 
 
 
 
 
 
 
Cash portion of acquisition consideration
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,554.0 
88.0 
12.8 
56.9 
757.0 
 
4,554.0 
88.0 
88.0 
12.8 
56.9 
56.9 
757.0 
757.0 
 
 
 
 
 
 
 
 
Working capital adjustment as part of acquisition consideration
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15.0 
 
 
17.5 
 
 
15.0 
15.0 
 
 
 
18.9 
18.9 
 
 
 
 
 
 
 
 
Production capacity and reserve effects and rationale for acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership interest before acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
26.80% 
 
 
 
12.40% 
 
 
 
 
 
 
 
26.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership in equity method investment, Cliffs' percentage
 
 
 
 
 
 
 
 
 
 
 
26.80% 
 
 
 
 
 
 
 
 
 
 
 
12.40% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of equity interest before acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
39.7 
27.4 
4.9 
 
 
 
38.0 
 
27.4 
4.9 
 
 
 
 
 
 
 
 
 
 
 
Gain on remeasurement of equity interest before acquisition
 
 
 
 
 
 
 
38.6 
 
40.7 
 
 
 
 
 
 
 
 
 
 
13.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
47.0 
 
 
 
25.0 
 
25.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on remeasurement of equity interest before acquisition recorded in Accumulated other comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.1 
66.4 
 
 
7.5 
 
2.1 
66.4 
 
 
 
 
7.5 
 
54.7 
5.4 
2.1 
11.7 
 
 
 
 
Goodwill
 
 
 
 
 
 
 
 
 
 
 
 
 
983.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,026.8 
15.4 
 
77.1 
24.7 
 
983.5 
3.1 
 
5.7 
75.2 
 
27.8 
 
 
 
 
 
 
 
 
 
Goodwill tax deductibility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
None of the goodwill is expected to be deductible for income tax purposes. 
 
 
 
 
None of the preliminary goodwill is expected to be deductible for income tax purposes. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares acquired through business combination
 
 
 
 
29.0 
 
 
 
 
29.0 
29.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
290.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Easement agreement fee, amortization period, years
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30 
 
 
 
 
Percentage of shares acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12.40% 
 
 
48.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost per share acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 17.25 
 
 
 
 
 
$ 1.00 
 
 
 
 
$ 0.19 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock exchanged per share acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.0201 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of equity portion of acquisition consideration
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
173.1 
 
 
 
 
 
 
173.1 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares issued as acquisition consideration
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares owned
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
27.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition price, value of iron ore pellets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15.0 
 
 
17.5 
 
 
15.0 
15.0 
 
 
 
18.9 
18.9 
 
 
 
 
 
 
 
 
Total consideration transferred including interest held prior to acquisition
 
 
 
 
1.7 
 
 
 
 
1.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,554.0 
142.7 
213.3 
61.8 
774.5 
 
4,554.0 
141.0 
 
213.3 
61.8 
 
775.9 
775.9 
 
 
 
 
 
 
 
 
Subsidiary Or Equity Method Investee Percentage Ownership Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tons of rated capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase in tons of rated capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,000,000 
 
50,000,000 
 
Estimated coal reserve base
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
59,000,000 
62,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase in coal reserve base
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
166,000,000 
 
67,000,000 
Initial production rate, metric tons
 
 
 
 
 
 
 
 
 
 
 
 
16,000,000 
8,000,000 
 
 
 
 
 
 
 
 
 
 
600,000,000 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Incremental Revenue
1,662.5 
2,142.8 
1,805.8 
1,183.2 
1,424.1 
1,346.0 
1,184.3 
727.7 
6,794.3 
4,682.1 
2,342.0 
 
 
571.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL REVENUES
1,662.5 
2,142.8 
1,805.8 
1,183.2 
1,424.1 
1,346.0 
1,184.3 
727.7 
6,794.3 
4,682.1 
2,342.0 
 
 
571.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition related costs
 
 
 
 
 
 
 
 
 
 
 
 
 
25.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
69.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-recurring inventory purchase accounting adjustments
 
 
 
 
 
 
 
 
 
 
 
 
 
59.8 
59.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations
 
 
 
 
 
 
 
 
2,348.6 
1,270.2 
236.1 
 
 
143.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
216.5 
70.1 
39.0 
 
 
38.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred debt issuance costs recognized
 
 
 
 
 
 
 
 
54.8 
 
 
 
 
15.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated amortization of deferred debt issuance costs
 
 
 
 
 
 
 
 
 
 
 
 
 
1.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portion of debt issuance costs net of accumulated amortization recorded in other current assets and other non-current assets
 
 
 
 
 
 
 
 
 
 
 
 
 
1.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stepped-up value of inventory and reserves due to purchase accounting
 
 
 
 
 
 
 
 
 
 
 
 
 
59.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preliminary goodwill
 
 
 
 
 
 
 
 
 
 
 
 
 
983.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,026.8 
15.4 
 
77.1 
24.7 
 
983.5 
3.1 
 
5.7 
75.2 
 
27.8 
 
 
 
 
 
 
 
 
 
Noncontrolling interest in subsidiary
1,075.4 
 
 
 
 
 
 
 
1,075.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
947.6 
 
 
51.9 
 
 
1,075.4 
 
 
 
51.9 
 
 
 
 
 
 
 
 
 
 
 
Mineral rights
7,918.9 
 
 
 
3,019.9 
 
 
 
7,918.9 
3,019.9 
 
 
 
4,825.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term deferred tax liabilities
(1,041.8)
 
 
 
 
 
 
 
(1,041.8)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(831.5)
20.5 
(57.4)
(2.7)
(16.5)
 
(1,041.8)
 
 
(54.3)
(5.1)
 
(15.9)
 
 
 
 
 
 
 
 
 
Deferred taxes
$ 1,041.8 
 
 
 
 
 
 
 
$ 1,041.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 831.5 
$ (20.5)
$ 57.4 
$ 2.7 
$ 16.5 
 
$ 1,041.8 
 
 
$ 54.3 
$ 5.1 
 
$ 15.9 
 
 
 
 
 
 
 
 
 

CLCC is a producer of high-volatile metallurgical and thermal coal located in southern West Virginia. CLCC's operations include two underground continuous mining method metallurgical coal mines and one open surface thermal coal mine. The acquisition includes a metallurgical and thermal coal mining complex with a coal preparation and processing facility as well as a large, long-life reserve base with an estimated 59 million tons of metallurgical coal and 62 million tons of thermal coal. This reserve base increases our total global reserve base to over 166 million tons of metallurgical coal and over 67 million tons of thermal coal. This acquisition represented an opportunity for us to add complementary high-quality coal products and provided certain advantages, including among other things, long-life mine assets, operational flexibility and new equipment.

Acquisitions And Other Investments (Consolidated Thompson Purchase Price Allocation) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Business Acquisition [Line Items]
 
 
Long-term deferred tax liabilities
$ (1,041.8)
 
Noncontrolling interest in subsidiary
(1,075.4)
 
Total net assets acquired
 
1.7 
Consolidated Thompson [Member]
 
 
Business Acquisition [Line Items]
 
 
Fair value of total consideration transferred
4,600.0 
 
Preliminary goodwill
983.5 
 
Consolidated Thompson [Member] |
Scenario, Previously Reported [Member]
 
 
Business Acquisition [Line Items]
 
 
Cash portion of acquisition consideration
4,554.0 
 
Fair value of total consideration transferred
4,554.0 
 
Cash
130.6 
 
Accounts receivable
102.8 
 
Product inventories
134.2 
 
Other current assets
35.1 
 
Mineral rights
4,450.0 
 
Plant and equipment
1,193.4 
 
Intangible assets
2.1 
 
Total identifiable assets acquired
6,048.2 
 
Accounts payable
(13.6)
 
Accrued liabilities
(130.0)
 
Convertible debentures
(335.7)
 
Other current liabilities
(41.8)
 
Long-term deferred tax liabilities
(831.5)
 
Senior secured notes
(125.0)
 
Capital lease obligations
(70.7)
 
Other liabilities
(25.1)
 
Total identifiable liabilities assumed
(1,573.4)
 
Total identifiable net assets acquired
4,474.8 
 
Noncontrolling interest in subsidiary
(947.6)
 
Preliminary goodwill
1,026.8 
 
Total net assets acquired
4,554.0 
 
Consolidated Thompson [Member] |
Scenario, Adjustment [Member]
 
 
Business Acquisition [Line Items]
 
 
Cash portion of acquisition consideration
4,554.0 
 
Fair value of total consideration transferred
4,554.0 
 
Cash
130.6 
 
Accounts receivable
102.4 
 
Product inventories
134.2 
 
Other current assets
35.1 
 
Mineral rights
4,825.6 
 
Plant and equipment
1,193.4 
 
Intangible assets
2.1 
 
Total identifiable assets acquired
6,423.4 
 
Accounts payable
(13.6)
 
Accrued liabilities
(123.8)
 
Convertible debentures
(335.7)
 
Other current liabilities
(41.8)
 
Long-term deferred tax liabilities
(1,041.8)
 
Senior secured notes
(125.0)
 
Capital lease obligations
(70.7)
 
Other liabilities
(25.1)
 
Total identifiable liabilities assumed
(1,777.5)
 
Total identifiable net assets acquired
4,645.9 
 
Noncontrolling interest in subsidiary
(1,075.4)
 
Preliminary goodwill
983.5 
 
Total net assets acquired
4,554.0 
 
Consolidated Thompson [Member] |
Scenario, Change [Member]
 
 
Business Acquisition [Line Items]
 
 
Accounts receivable
(0.4)
 
Mineral rights
375.6 
 
Total identifiable assets acquired
375.2 
 
Accrued liabilities
6.2 
 
Long-term deferred tax liabilities
(210.3)
 
Total identifiable liabilities assumed
(204.1)
 
Total identifiable net assets acquired
171.1 
 
Noncontrolling interest in subsidiary
(127.8)
 
Preliminary goodwill
$ (43.3)
 
Acquisitions And Other Investments (Schedule Of Unaudited Consolidated Proforma Information Table Text Block) (Details) (Consolidated Thompson [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Consolidated Thompson [Member]
 
 
Business Acquisition [Line Items]
 
 
REVENUES FROM PRODUCT SALES AND SERVICES
$ 7,002.7 
$ 4,982.9 
NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$ 1,612.3 
$ 912.5 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - BASIC
$ 11.50 
$ 6.74 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - DILUTED
$ 11.43 
$ 6.70 
Acquisitions And Other Investments (Wabush Purchase Price Allocation) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2010
Wabush [Member]
Scenario, Previously Reported [Member]
Dec. 31, 2010
Wabush [Member]
Scenario, Adjustment [Member]
Feb. 1, 2010
Wabush [Member]
Scenario, Adjustment [Member]
Dec. 31, 2010
Wabush [Member]
Scenario, Change [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
Cash
 
 
$ 88.0 
$ 88.0 
$ 88.0 
 
Working capital adjustments
 
 
15.0 
15.0 
15.0 
 
Fair value of total consideration transferred
 
 
103.0 
103.0 
103.0 
 
Fair value of Cliffs' ownership interest in subsidiary held prior to acquisition of remaining interest
 
 
39.7 
38.0 
 
(1.7)
In-process inventories
 
 
21.8 
21.8 
 
 
Business Acquisiton Purchase Price Allocation Current Assets Supplies and Other Inventory
 
 
43.6 
43.6 
 
 
Other current assets
 
 
13.2 
13.2 
 
 
Mineral rights
 
 
85.1 
84.4 
 
(0.7)
Plant and equipment
 
 
146.3 
147.8 
 
1.5 
Intangible assets
 
 
66.4 
66.4 
 
 
Other assets
 
 
16.3 
19.3 
 
3.0 
Total identifiable assets acquired
 
 
392.7 
396.5 
 
3.8 
Current liabilities
 
 
(48.1)
(48.1)
 
 
Pension and OPEB obligations
 
 
(80.6)
(80.6)
 
 
Mine closure obligations
 
 
(39.6)
(53.4)
 
(13.8)
Below- market sales contracts
 
 
(67.7)
(67.7)
 
 
Deferred taxes
1,041.8 
 
(20.5)
 
 
20.5 
Other liabilities
 
 
(8.9)
(8.8)
 
0.1 
Total identifiable liabilities assumed
 
 
(265.4)
(258.6)
 
6.8 
Total identifiable net assets acquired
 
 
127.3 
137.9 
 
10.6 
Goodwill
 
 
15.4 
3.1 
 
(12.3)
Total net assets acquired
 
$ 1.7 
$ 142.7 
$ 141.0 
 
$ (1.7)
Acquisitions And Other Investments (Freewest Purchase Price Allocation) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Business Acquisition [Line Items]
 
 
Total net assets acquired
 
$ 1.7 
Long-term deferred tax liabilities
(1,041.8)
 
Total net assets acquired
 
1.7 
Freewest [Member] |
Scenario, Previously Reported [Member]
 
 
Business Acquisition [Line Items]
 
 
Equity instruments (4.2 million Cliffs common shares)
 
173.1 
Cash
 
12.8 
Fair value of total consideration transferred
 
185.9 
Fair value of Cliffs' ownership interest in subsidiary held prior to acquisition of remaining interest
 
27.4 
Total net assets acquired
 
213.3 
Cash
 
7.7 
Other current assets
 
1.4 
Mineral rights
 
252.8 
Marketable securities
 
12.1 
Total identifiable assets acquired
 
274.0 
Accounts payable
 
(3.3)
Long-term deferred tax liabilities
 
(57.4)
Total identifiable liabilities assumed
 
(60.7)
Total identifiable net assets acquired
 
213.3 
Total net assets acquired
 
213.3 
Freewest [Member] |
Scenario, Adjustment [Member]
 
 
Business Acquisition [Line Items]
 
 
Equity instruments (4.2 million Cliffs common shares)
 
173.1 
Cash
 
12.8 
Fair value of total consideration transferred
 
185.9 
Fair value of Cliffs' ownership interest in subsidiary held prior to acquisition of remaining interest
 
27.4 
Total net assets acquired
 
213.3 
Cash
 
7.7 
Other current assets
 
1.4 
Mineral rights
 
244.0 
Marketable securities
 
12.1 
Total identifiable assets acquired
 
265.2 
Accounts payable
 
(3.3)
Long-term deferred tax liabilities
 
(54.3)
Total identifiable liabilities assumed
 
(57.6)
Total identifiable net assets acquired
 
207.6 
Goodwill
 
5.7 
Total net assets acquired
 
213.3 
Freewest [Member] |
Scenario, Change [Member]
 
 
Business Acquisition [Line Items]
 
 
Mineral rights
 
(8.8)
Total identifiable assets acquired
 
(8.8)
Long-term deferred tax liabilities
 
3.1 
Total identifiable liabilities assumed
 
3.1 
Total identifiable net assets acquired
 
(5.7)
Goodwill
 
$ 5.7 
Acquisitions And Other Investments (Spider Purchase Price Allocation) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2010
Spider [Member]
Scenario, Previously Reported [Member]
Dec. 31, 2010
Spider [Member]
Scenario, Adjustment [Member]
Jul. 6, 2010
Spider [Member]
Scenario, Adjustment [Member]
Dec. 31, 2010
Spider [Member]
Scenario, Change [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
Cash
 
 
$ 56.9 
$ 56.9 
$ 56.9 
 
Fair value of total consideration transferred
 
 
56.9 
56.9 
 
 
Fair value of Cliffs' ownership interest in subsidiary held prior to acquisition of remaining interest
 
 
4.9 
4.9 
 
 
Total net assets acquired
 
1.7 
61.8 
61.8 
 
 
Cash
 
 
9.0 
9.0 
 
 
Other current assets
 
 
4.5 
4.5 
 
 
Mineral rights
 
 
31.0 
35.3 
 
4.3 
Total identifiable assets acquired
 
 
44.5 
48.8 
 
4.3 
Other current liabilities
 
 
(5.2)
(5.2)
 
 
Long-term deferred tax liabilities
(1,041.8)
 
(2.7)
(5.1)
 
(2.4)
Total identifiable liabilities assumed
 
 
(7.9)
(10.3)
 
(2.4)
Total identifiable net assets acquired
 
 
36.6 
38.5 
 
1.9 
Goodwill
 
 
77.1 
75.2 
 
(1.9)
Noncontrolling interest in subsidiary
(1,075.4)
 
(51.9)
(51.9)
 
 
Total net assets acquired
 
$ 1.7 
$ 61.8 
$ 61.8 
 
 
Acquisitions And Other Investments (CLCC Purchase Price Allocation) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Scenario, Previously Reported [Member]
CLCC [Member]
Dec. 31, 2011
Scenario, Adjustment [Member]
CLCC [Member]
Jul. 30, 2010
Scenario, Adjustment [Member]
CLCC [Member]
Dec. 31, 2011
Scenario, Change [Member]
CLCC [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
Cash
 
 
$ 757.0 
$ 757.0 
$ 757.0 
 
Working capital adjustments
 
 
17.5 
18.9 
18.9 
1.4 
Fair value of total consideration transferred
 
 
774.5 
775.9 
 
1.4 
Product inventories
 
 
20.0 
20.0 
 
 
Other current assets
 
 
11.8 
11.8 
 
 
Land and mineral rights
 
 
640.3 
639.3 
 
(1.0)
Plant and equipment
 
 
111.1 
112.3 
 
1.2 
Deferred taxes
1,041.8 
 
16.5 
15.9 
 
(0.6)
Intangible assets
 
 
7.5 
7.5 
 
 
Other non-current assets
 
 
0.8 
0.8 
 
 
Total identifiable assets acquired
 
 
808.0 
807.6 
 
(0.4)
Current liabilities
 
 
(22.8)
(24.1)
 
(1.3)
Mine closure obligations
 
 
(2.8)
(2.8)
 
 
Below- market sales contracts
 
 
(32.6)
(32.6)
 
 
Total identifiable liabilities assumed
 
 
(58.2)
(59.5)
 
(1.3)
Total identifiable net assets acquired
 
 
749.8 
748.1 
 
(1.7)
Preliminary goodwill
 
 
24.7 
27.8 
 
3.1 
Total net assets acquired
 
$ 1.7 
$ 774.5 
$ 775.9 
$ 775.9 
$ 1.4 
Goodwill And Other Intangible Assets And Liabilities (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2011
North American Coal [Member]
Dec. 31, 2010
North American Coal [Member]
Dec. 31, 2009
North American Coal [Member]
Dec. 31, 2010
Other [Member]
Dec. 31, 2011
Other [Member]
Dec. 31, 2011
Lower Limit [Member]
Dec. 31, 2011
Upper Limit [Member]
Dec. 31, 2011
Below-Market Sales Contracts [Member]
Dec. 31, 2010
Below-Market Sales Contracts [Member]
Dec. 31, 2009
Below-Market Sales Contracts [Member]
Dec. 31, 2011
Consolidated Thompson [Member]
Dec. 31, 2011
CLCC [Member]
Arising in business combinations
$ 983.4 
$ 111.9 
 
$ (0.1)
$ 27.9 
 
$ 80.9 
 
 
 
 
 
 
 
 
Goodwill
1,152.1 
196.5 
74.6 
 
27.9 
   
80.9 
80.9 
 
 
 
 
 
983.5 
 
Goodwill, Impairment Loss
27.8 
 
 
27.8 
   
 
 
 
 
 
 
 
 
 
27.8 
Amortization expense relating to intangible assets
17.7 
18.8 
8.2 
 
 
 
 
 
 
 
 
 
 
 
 
Below-market sales contracts life (in years)
 
 
 
 
 
 
 
 
3.5 
8.5 
 
 
 
 
 
Product
$ 6,551.7 
$ 4,416.8 
$ 2,216.2 
 
 
 
 
 
 
 
$ 57.0 
$ 62.4 
$ 30.3 
 
 
Goodwill And Other Intangible Assets And Liabilities (Schedule Of Goodwill) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Eastern Canadian Iron Ore [Member]
Dec. 31, 2010
Eastern Canadian Iron Ore [Member]
Dec. 31, 2011
U.S. Iron Ore [Member]
Dec. 31, 2010
U.S. Iron Ore [Member]
Dec. 31, 2009
U.S. Iron Ore [Member]
Dec. 31, 2011
Asia Pacific Iron Ore [Member]
Dec. 31, 2010
Asia Pacific Iron Ore [Member]
Dec. 31, 2011
North American Coal [Member]
Dec. 31, 2010
North American Coal [Member]
Dec. 31, 2010
Other [Member]
Dec. 31, 2011
Other [Member]
Region Reporting Information, by Region [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill, beginning balance
$ 196.5 
$ 74.6 
$ 3.1 
 
$ 2.0 
$ 2.0 
$ 2.0 
$ 82.6 
$ 72.6 
$ 27.9 
    
 
$ 80.9 
Arising in business combinations
983.4 
111.9 
983.5 
3.1 
 
 
 
 
 
(0.1)
27.9 
80.9 
 
Impairment of goodwill
(27.8)
 
 
 
 
 
 
 
 
(27.8)
   
 
 
Impact of foreign currency translation
0.4 
10.0 
 
 
 
 
 
0.4 
10.0 
 
   
 
 
Other
(0.4)
 
(0.4)
 
 
 
 
 
 
 
   
 
 
Goodwill, ending balance
$ 1,152.1 
$ 196.5 
$ 986.2 
$ 3.1 
$ 2.0 
$ 2.0 
$ 2.0 
$ 83.0 
$ 82.6 
 
$ 27.9 
$ 80.9 
$ 80.9 
Goodwill And Other Intangible Assets And Liabilities (Schedule Of Finite-Lived Intangible Assets by Major Class) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
$ 194.5 
$ 208.0 
Definite lived intangible assets - Accumulated Amortization
(47.5)
(32.2)
Definite lived intangible assets - Net Carrying Amount
147.0 
175.8 
Below-market sales contracts - Gross Carrying Amount
(329.3)
(329.3)
Below-market sales contracts - Accumulated Amortization
164.8 
107.8 
Below-market sales contracts - Net Carrying Amount
(164.5)
(221.5)
Permits [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Classification of intangible assets and liabilities
Intangible assets, net 
 
Definite lived intangible assets - Gross Carrying Amount
134.3 
132.4 
Definite lived intangible assets - Accumulated Amortization
(23.2)
(16.3)
Definite lived intangible assets - Net Carrying Amount
111.1 
116.1 
Utility Contracts [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Classification of intangible assets and liabilities
Intangible assets, net 
 
Definite lived intangible assets - Gross Carrying Amount
54.7 
54.7 
Definite lived intangible assets - Accumulated Amortization
(21.3)
(10.2)
Definite lived intangible assets - Net Carrying Amount
33.4 
44.5 
Easements [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Classification of intangible assets and liabilities
Intangible assets, net 1
 
Definite lived intangible assets - Gross Carrying Amount
 
11.7 1
Definite lived intangible assets - Accumulated Amortization
 
(0.4)1
Definite lived intangible assets - Net Carrying Amount
 
11.3 1
Lease Agreements [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Classification of intangible assets and liabilities
Intangible assets, net 
 
Definite lived intangible assets - Gross Carrying Amount
5.5 
5.2 
Definite lived intangible assets - Accumulated Amortization
(3.0)
(2.9)
Definite lived intangible assets - Net Carrying Amount
2.5 
2.3 
Unpatented Technology [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Classification of intangible assets and liabilities
Intangible assets, net 2
 
Definite lived intangible assets - Gross Carrying Amount
 
4.0 2
Definite lived intangible assets - Accumulated Amortization
 
(2.4)2
Definite lived intangible assets - Net Carrying Amount
 
1.6 2
Below-Market Sales Contracts [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Classification of intangible assets and liabilities
Below-market sales contracts 
 
Below-market sales contracts - Gross Carrying Amount
(252.3)
(252.3)
Below-market sales contracts - Accumulated Amortization
140.5 
87.9 
Below-market sales contracts - Net Carrying Amount
(111.8)
(164.4)
Below-Market Sales Contracts Current [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Classification of intangible assets and liabilities
Below-market sales contracts - current 
 
Below-market sales contracts - Gross Carrying Amount
(77.0)
(77.0)
Below-market sales contracts - Accumulated Amortization
24.3 
19.9 
Below-market sales contracts - Net Carrying Amount
$ (52.7)
$ (57.1)
Goodwill And Other Intangible Assets And Liabilities (Estimated Useful Lives Of Intangible Assets Subject To Periodic Amortization On A Straight-Line Basis) (Details)
12 Months Ended
Dec. 31, 2011
Permits [Member]
 
Finite-Lived Intangible Assets [Line Items]
 
Intangible Assets Estimated Useful Life Minimum
15 
Intangible Assets Estimated Useful Life Maximum
28 
Utility Contracts [Member]
 
Finite-Lived Intangible Assets [Line Items]
 
Useful Life (years)
Lease Agreements [Member]
 
Finite-Lived Intangible Assets [Line Items]
 
Intangible Assets Estimated Useful Life Minimum
1.5 
Intangible Assets Estimated Useful Life Maximum
4.5 
Goodwill And Other Intangible Assets And Liabilities (Estimated Amortization Expense Relating To Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Goodwill And Other Intangible Assets And Liabilities [Abstract]
 
Estimated amortization expense for 2012
$ 18.0 
Estimated amortization expense for 2013
17.9 
Estimated amortization expense for 2014
17.9 
Estimated amortization expense for 2015
6.0 
Estimated amortization expense for 2016
6.0 
Estimated amortization expense for 2012 to 2016
$ 65.8 
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
12 Months Ended
Dec. 31, 2011
Goodwill And Other Intangible Assets And Liabilities [Abstract]
 
Below-market sales contracts revenue for 2012
$ 48.8 
Below-market sales contracts revenue for 2013
45.3 
Below-market sales contracts revenue for 2014
23.0 
Below-market sales contracts revenue for 2015
23.0 
Below-market sales contracts revenue for 2016
23.1 
Below-market sales contracts revenue for 2012 to 2016
$ 163.2 
Fair Value Of Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
U.S. Iron Ore [Member]
Dec. 31, 2010
U.S. Iron Ore [Member]
Dec. 31, 2011
Empire [Member]
Dec. 31, 2010
Empire [Member]
Dec. 31, 2002
Empire [Member]
Dec. 31, 2001
Empire [Member]
Jun. 30, 2011
Significant Other Observable Inputs (Level 2) [Member]
U.S. Iron Ore [Member]
Sep. 30, 2010
Significant Other Observable Inputs (Level 2) [Member]
U.S. Iron Ore [Member]
Dec. 31, 2011
Significant Unobservable Inputs (Level 3) [Member]
Sep. 30, 2011
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets And Liabilities Components [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Asset, Fair Value
$ 165.9 
$ 84.6 
 
 
 
 
 
 
$ 20.0 
$ 161.8 
$ 83.8 
$ 49.0 
Interest rate on long term receivable
the higher of 9 percent or the prime rate plus 350 basis points 
 
 
 
 
 
 
 
 
 
 
 
Percent ownership interest
 
 
 
 
 
 
46.70% 
46.70% 
 
 
 
 
Percent ownership interest after assuming all mine liabilities
 
 
 
 
 
 
79.00% 
 
 
 
 
 
Maximum deferred portion of supplemental payments
 
 
22.3 
 
 
 
 
 
 
 
 
 
Long Term Accounts Notes And Loans Receivable Net Noncurrent
 
 
 
 
26.5 
32.8 
120.0 
 
 
 
 
 
Other non-current assets
191.2 
187.9 
22.3 
22.3 
 
 
 
 
 
 
 
 
Fair value of the receivable
 
 
$ 20.8 
$ 19.5 
$ 30.7 
$ 38.9 
 
 
 
 
 
 
Estimated credit-adjusted risk-free interest rate
 
 
4.50% 
 
2.58% 
 
 
 
 
 
 
 
Fair Value Of Financial Instruments (Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Assets:
 
 
Cash equivalents
$ 351.2 
$ 1,307.2 
Derivative assets
157.9 
45.6 
U.S. marketable securities
 
22.0 
International marketable securities
27.1 
63.9 
Foreign exchange contracts, assets
8.0 
39.0 
Total Assets
544.2 
1,477.7 
Foreign exchange contracts, liabilities
3.5 
 
Derivative Liabilities
19.5 
 
Total Liabilities
23.0 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member]
 
 
Assets:
 
 
Cash equivalents
351.2 
1,307.2 
U.S. marketable securities
 
22.0 
International marketable securities
27.1 
63.9 
Total Assets
378.3 
1,393.1 
Significant Other Observable Inputs (Level 2) [Member]
 
 
Assets:
 
 
Foreign exchange contracts, assets
8.0 
39.0 
Total Assets
8.0 
39.0 
Foreign exchange contracts, liabilities
3.5 
 
Total Liabilities
3.5 
 
Significant Unobservable Inputs (Level 3) [Member]
 
 
Assets:
 
 
Derivative assets
157.9 
45.6 
Total Assets
157.9 
45.6 
Derivative Liabilities
19.5 
 
Total Liabilities
$ 19.5 
 
Fair Value Of Financial Instruments (Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Derivative Financial Instruments, Assets [Member]
 
 
Beginning balance - January 1
$ 45.6 
$ 63.2 
Total gains (losses)
 
 
Included in earnings
403.0 
851.7 
Settlements
(319.7)
(707.5)
Transfers into Level 3
49.0 
 
Transfers out of Level 3
(20.0)
(161.8)
Ending balance - December 31
157.9 
45.6 
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses on assets and liabilities still held at the reporting date
403.0 
120.2 
Derivative Financial Instruments, Liabilities [Member]
 
 
Total gains (losses)
 
 
Included in earnings
(19.5)
 
Ending balance - December 31
(19.5)
 
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses on assets and liabilities still held at the reporting date
$ 19.5 
 
Fair Value Of Financial Instruments (Carrying Value And Fair Value Of Financial Instruments Disclosure) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Long-term debt:
 
 
Customer Borrowings
$ 972.0 
 
Total long-term debt
3,608.7 
1,713.1 
Carrying Value [Member]
 
 
Long-term receivables:
 
 
Receivables
58.8 
63.2 
Long-term debt:
 
 
Customer Borrowings
5.1 
4.0 
Total long-term debt
3,613.8 
1,717.1 
Carrying Value [Member] |
Customer Supplemental Payments [Member]
 
 
Long-term receivables:
 
 
Receivables
22.3 
22.3 
Carrying Value [Member] |
ArcelorMittal USA Receivable [Member]
 
 
Long-term receivables:
 
 
Receivables
26.5 
32.8 
Carrying Value [Member] |
Other Credit Receivable [Member]
 
 
Long-term receivables:
 
 
Receivables
10.0 
8.1 
Fair Value [Member]
 
 
Long-term receivables:
 
 
Receivables
61.5 
66.5 
Long-term debt:
 
 
Customer Borrowings
5.1 
4.0 
Long Term Debt Noncurrent Fair Value
3,825.6 
1,754.9 
Fair Value [Member] |
Customer Supplemental Payments [Member]
 
 
Long-term receivables:
 
 
Receivables
20.8 
19.5 
Fair Value [Member] |
ArcelorMittal USA Receivable [Member]
 
 
Long-term receivables:
 
 
Receivables
30.7 
38.9 
Fair Value [Member] |
Other Credit Receivable [Member]
 
 
Long-term receivables:
 
 
Receivables
10.0 
8.1 
Term Notes One Point Two Five Billion [Member]
 
 
Long-term debt:
 
 
Term loan
1,250.0 
 
Term Notes One Point Two Five Billion [Member] |
Carrying Value [Member]
 
 
Long-term debt:
 
 
Term loan
897.2 
 
Term Notes One Point Two Five Billion [Member] |
Fair Value [Member]
 
 
Long-term debt:
 
 
Term loan
897.2 
 
Senior Notes Seven Hundred Million [Member]
 
 
Long-term debt:
 
 
Senior notes
700.0 
 
Senior Notes Seven Hundred Million [Member] |
Carrying Value [Member]
 
 
Long-term debt:
 
 
Senior notes
699.3 
 
Senior Notes Seven Hundred Million [Member] |
Fair Value [Member]
 
 
Long-term debt:
 
 
Senior notes
726.4 
 
Senior Notes One Point Three Billion [Member]
 
 
Long-term debt:
 
 
Senior notes
1,300.0 
 
Senior Notes One Point Three Billion [Member] |
Carrying Value [Member]
 
 
Long-term debt:
 
 
Senior notes
1,289.2 
990.3 
Senior Notes One Point Three Billion [Member] |
Fair Value [Member]
 
 
Long-term debt:
 
 
Senior notes
1,399.4 
972.5 
Senior Notes Four Hundred Million [Member]
 
 
Long-term debt:
 
 
Senior notes
400.0 
 
Senior Notes Four Hundred Million [Member] |
Carrying Value [Member]
 
 
Long-term debt:
 
 
Senior notes
398.0 
397.8 
Senior Notes Four Hundred Million [Member] |
Fair Value [Member]
 
 
Long-term debt:
 
 
Senior notes
448.8 
422.8 
Senior Notes Three Hundred Twenty Five Million [Member]
 
 
Long-term debt:
 
 
Senior notes
325.0 
 
Senior Notes Three Hundred Twenty Five Million [Member] |
Carrying Value [Member]
 
 
Long-term debt:
 
 
Senior notes
325.0 
325.0 
Senior Notes Three Hundred Twenty Five Million [Member] |
Fair Value [Member]
 
 
Long-term debt:
 
 
Senior notes
$ 348.7 
$ 355.6 
Debt And Credit Facilities (Narrative) (Details)
6 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2011
USD ($)
Dec. 31, 2011
USD ($)
years
months
Dec. 31, 2010
USD ($)
Mar. 31, 2011
USD ($)
Sep. 20, 2010
USD ($)
Oct. 29, 2009
USD ($)
Dec. 31, 2011
Senior Notes30 Year Tranche [Member]
Mar. 31, 2011
Senior Notes30 Year Tranche [Member]
USD ($)
Sep. 20, 2010
Senior Notes30 Year Tranche [Member]
USD ($)
Dec. 31, 2011
Senior Notes10 Year Tranche [Member]
Mar. 31, 2011
Senior Notes10 Year Tranche [Member]
USD ($)
Sep. 20, 2010
Senior Notes10 Year Tranche [Member]
USD ($)
Sep. 22, 2010
Revolving Credit Facility [Member]
USD ($)
Mar. 31, 2010
Revolving Credit Facility [Member]
USD ($)
Dec. 31, 2011
Revolving Credit Facility [Member]
USD ($)
Aug. 11, 2011
Revolving Credit Facility [Member]
USD ($)
Dec. 31, 2010
Revolving Credit Facility [Member]
USD ($)
Aug. 11, 2011
Credit Facility Amendment [Member]
Sep. 30, 2010
Senior Notes 700 Million Due 2021 [Member]
USD ($)
Dec. 31, 2011
Unsecured Credit Facility [Member]
USD ($)
Aug. 11, 2011
Unsecured Credit Facility [Member]
USD ($)
Dec. 31, 2011
Senior Notes Due 2013 [Member]
USD ($)
Jun. 25, 2008
Senior Notes Due 2013 [Member]
USD ($)
Jun. 25, 2008
Senior Notes Due 2015 [Member]
USD ($)
May 27, 2010
Amapa's Debt [Member]
USD ($)
Aug. 11, 2011
Term Loan [Member]
USD ($)
Dec. 31, 2011
Asia Pacific Iron Ore [Member]
Credit Facility Amendment [Member]
USD ($)
Dec. 31, 2011
Asia Pacific Iron Ore [Member]
Credit Facility Amendment [Member]
AUD ($)
Dec. 31, 2011
Consolidated Thompson [Member]
USD ($)
Aug. 11, 2011
Consolidated Thompson [Member]
USD ($)
May 10, 2011
Consolidated Thompson [Member]
USD ($)
Mar. 31, 2010
Cliffs Natural Resources Pty Ltd [Member]
Credit Facility Amendment [Member]
USD ($)
Mar. 31, 2010
Cliffs Natural Resources Pty Ltd [Member]
Credit Facility Amendment [Member]
AUD ($)
Jun. 25, 2008
Senior Notes [Member]
USD ($)
Apr. 13, 2011
Senior Notes [Member]
Consolidated Thompson [Member]
USD ($)
Jun. 25, 2008
Senior Notes 325 Million [Member]
May 17, 2010
Senior Notes 400 Million [Member]
Mar. 17, 2010
Senior Notes 400 Million [Member]
USD ($)
Aug. 11, 2011
Scenario, Previously Reported [Member]
Multicurrency credit agreement [Member]
USD ($)
Oct. 29, 2009
Scenario, Previously Reported [Member]
Multicurrency credit agreement [Member]
USD ($)
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,750,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase in letters of credit
 
 
 
 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase in basis, Points
 
 
 
 
 
50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of debt
 
 
200,000,000 
 
 
 
 
 
 
 
 
 
350,000,000 
200,000,000 
 
 
 
 
 
 
 
 
 
 
100,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit agreement additional borrowings
 
250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Scheduled principal payment
28,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan, length of maturity, years
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Required frequency of principal payments, term loan, months
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes
 
 
 
 
 
 
 
300,000,000 
500,000,000 
 
700,000,000 
500,000,000 
 
 
 
 
 
 
500,000,000 
 
 
 
270,000,000 
55,000,000 
 
 
 
 
 
250,000,000 
 
 
 
 
125,000,000 
 
 
 
 
 
Amended Total Funded Debt to EBITDA threshold
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.25 
 
 
 
 
Face Amount of Senior Long Term Notes
 
 
 
1,000,000,000 
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
270,000,000 
 
 
 
 
 
 
 
 
 
 
 
325,000,000 
100,000,000 
 
 
400,000,000 
 
 
Stated interest rate
 
 
 
 
 
 
 
6.25% 
6.25% 
 
4.875% 
4.80% 
 
 
 
 
 
 
 
 
 
 
6.31% 
6.59% 
 
 
 
 
 
 
 
 
 
 
8.50% 
 
 
5.90% 
 
 
Discount interest rate on redemption
 
 
 
 
 
 
40 
 
 
35 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium on principal required to redeem notes
 
 
 
101.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redemption price, percent of principal in the event of company redemption
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
Credit facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,750,000,000 
750,000,000 
40,800,000 
40,000,000 
 
 
 
 
 
 
 
Credit facility long term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
600,000,000 
 
 
 
897,200,000 
 
 
 
 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
800,000,000 
800,000,000 
Outstanding long term loan
972,000,000 
972,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,250,000,000 
 
 
 
 
 
 
 
 
 
Weighted average interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.84% 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.56% 
 
 
 
 
 
 
 
 
 
 
 
Outstanding bank guarantees under credit facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
23,500,000 
 
64,700,000 
 
 
 
 
 
 
 
 
 
25,200,000 
24,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility remaining capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,726,500,000 
 
535,300,000 
 
 
 
 
 
 
 
 
 
15,600,000 
15,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of Credit Outstanding, Amount
 
 
 
 
 
150,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
95,000,000 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt instruments in 2012
74,800,000 
74,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt instruments in 2013
369,700,000 
369,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt instruments in 2014
124,600,000 
124,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt instruments in 2015
428,800,000 
428,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt instruments in 2016
299,100,000 
299,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt instruments after 2016
$ 2,400,000,000 
$ 2,400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt And Credit Facilities (Schedule Of Long-Term Debt) (Details) (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Debt Instrument [Line Items]
 
 
Revolving loans drawn
 
$ 0 
Term Loan, Amount Paid as of Reporting Date
278,000,000 
 
Private Placement [Member]
 
 
Debt Instrument [Line Items]
 
 
Face Amount
325,000,000 
325,000,000 
Term Loan1.250 Million Member
 
 
Debt Instrument [Line Items]
 
 
Type
Variable 
 
Average Annual Interest Rate
1.40% 
 
Final Maturity
2016 
 
Face Amount
972,000,000 
 
Total Long-term Debt
897,200,000 1
 
Current Portion of term loan
74,800,000 
 
Senior Notes 700 Million Due 2021 [Member]
 
 
Debt Instrument [Line Items]
 
 
Type
Fixed 
 
Average Annual Interest Rate
4.88% 
 
Final Maturity
2021 
 
Face Amount
700,000,000 
 
Total Long-term Debt
699,300,000 2
 
Unamortized discount
700,000 
 
Imputed interest rate
4.89% 
 
Senior Notes 500 Million Due 2020 Member
 
 
Debt Instrument [Line Items]
 
 
Type
Fixed 
Fixed 
Average Annual Interest Rate
4.80% 
4.80% 
Final Maturity
2020 
2020 
Face Amount
500,000,000 
500,000,000 
Total Long-term Debt
499,100,000 3
499,000,000 3
Unamortized discount
900,000 
1,000,000 
Imputed interest rate
4.83% 
 
Senior Notes 500 Million Due 2040 Member
 
 
Debt Instrument [Line Items]
 
 
Type
 
Fixed 
Average Annual Interest Rate
 
6.25% 
Final Maturity
 
2040 
Face Amount
 
500,000,000 
Total Long-term Debt
 
491,300,000 4
Unamortized discount
 
8,700,000 
Senior Notes 800 Million Due 2040 Member
 
 
Debt Instrument [Line Items]
 
 
Type
Fixed 
 
Average Annual Interest Rate
6.25% 
 
Final Maturity
2040 
 
Face Amount
800,000,000 
 
Total Long-term Debt
790,100,000 4
 
Unamortized discount
9,900,000 
 
Imputed interest rate
6.38% 
 
Senior Notes 400 Million [Member]
 
 
Debt Instrument [Line Items]
 
 
Type
Fixed 
Fixed 
Average Annual Interest Rate
5.90% 
5.90% 
Final Maturity
2020 
2020 
Face Amount
400,000,000 
400,000,000 
Total Long-term Debt
398,000,000 5
397,800,000 5
Unamortized discount
2,000,000 
2,200,000 
Imputed interest rate
5.98% 
 
Series2008a Tranche [Member]
 
 
Debt Instrument [Line Items]
 
 
Type
Fixed 
Fixed 
Average Annual Interest Rate
6.31% 
6.31% 
Final Maturity
2013 
2013 
Face Amount
270,000,000 
270,000,000 
Total Long-term Debt
270,000,000 
270,000,000 
Series2008a Tranche B [Member]
 
 
Debt Instrument [Line Items]
 
 
Type
Fixed 
Fixed 
Average Annual Interest Rate
6.59% 
6.59% 
Final Maturity
2015 
2015 
Face Amount
55,000,000 
55,000,000 
Total Long-term Debt
55,000,000 
55,000,000 
Revolving Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Type
Variable 
Variable 
Final Maturity
2016 
2012 
Face Amount
1,750,000,000 
600,000,000 
Total Long-term Debt
   6
   6
Principal amount of letter of credit obligations
23,500,000 
64,700,000 
Credit facility remaining capacity
1,726,500,000 
535,300,000 
Outstanding bank commitments on the multi-option facility
$ 23,500,000 
$ 64,700,000 
Lease Obligations (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Oct. 31, 2011
North America Coal [Member]
Dec. 31, 2011
North America Coal [Member]
Dec. 31, 2011
Corporate [Member]
Dec. 31, 2011
Eastern Canadian Iron Ore, North American Coal and Other segments [Member]
Dec. 31, 2011
Eastern Canadian Iron Ore [Member]
Dec. 31, 2011
U.S. Iron Ore [Member]
Dec. 31, 2011
North American Coal [Member]
Dec. 31, 2011
Asia Pacific Iron Ore [Member]
Operating lease expense
$ 26.3 
$ 24.2 
$ 25.5 
 
 
 
 
 
 
 
 
Capital lease assets
406.0 
283.2 
 
 
 
 
 
 
 
 
 
Capital leases assets accumulated amortization
110.6 
92.7 
 
 
 
 
 
 
 
 
 
Sale leaseback transaction, lease terms
 
 
 
 
 
 
 
 
 
 
Capital lease, assets and liabilities
 
 
 
 
 
 
 
 
 
75.9 
 
Total minimum capital lease payments
348.8 
 
 
 
71.6 
1.0 
 
105.5 
9.7 
 
161.0 
Total minimum operating lease payments
$ 111.8 
 
 
 
 
$ 38.7 
$ 10.7 
 
$ 40.4 
 
$ 22.0 

In October 2011, our North American Coal segment entered into the second phase of the sale-leaseback arrangement initially executed in December 2010 for the sale of the new longwall plow system at our Pinnacle mine in West Virginia. The first and second phases of the leaseback arrangement are for a period of five years. The 2010 sale-leaseback arrangement was specific to the assets at the time of the agreement and did not include the longwall plow system assets. Both phases of the leaseback arrangement have been accounted for as a capital lease. We recorded assets and liabilities under the capital lease of $75.9 million, reflecting the lower of the present value of the minimum lease payments or the fair value of the asset.

Lease Obligations (Future Minimum Lease Payments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
2012, Capital Leases
$ 87.1 
2013, Capital Leases
60.2 
2014, Capital Leases
55.2 
2015, Capital Leases
44.0 
2016, Capital Leases
28.9 
2017 and thereafter, Capital Leases
73.4 
Total minimum lease payments, Capital Leases
348.8 
Amounts representing interest
64.2 
Present value of net minimum lease payments
284.6 1
2012, Operating Leases
24.2 
2013, Operating Leases
23.9 
2014, Operating Leases
18.9 
2015, Operating Leases
12.0 
2016, Operating Leases
7.8 
2017 and thereafter, Operating Leases
25.0 
Total minimum lease payments, Operating Leases
111.8 
Other Current Liabilities [Member]
 
Present value of net minimum lease payments
71.8 
Other Liabilities [Member]
 
Present value of net minimum lease payments
$ 212.8 
Environmental And Mine Closure Obligations (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Allocation Agreement [Member]
Dec. 31, 2010
Allocation Agreement [Member]
May 29, 2009
Allocation Agreement [Member]
Dec. 31, 2011
Previously Owned Or Operating Facilities [Member]
L T V Steel Mining Company [Member]
Dec. 31, 2010
Previously Owned Or Operating Facilities [Member]
L T V Steel Mining Company [Member]
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
Payments related to environmental and mine closure liabilities
$ 1.9 
$ 10.6 
 
 
 
 
 
Environmental Obligation Funding Percentage
 
 
 
 
32.50% 
 
 
Allocation agreement, commited remedy, percent
 
 
 
 
32.50% 
 
 
Environmental liabilities
15.5 
13.7 
10.0 
9.2 
 
 
 
Estimated costs of the available remediation alternatives minimum amount
10.0 
 
 
 
 
 
 
Estimated costs of the available remediation alternatives maximum amount
30.5 
 
 
 
 
 
 
Mine closure obligation
220.2 
185.4 
 
 
 
16.5 
17.1 
Rate of inflation
3.50% 
 
 
 
 
 
 
Total environmental and mine closure obligations
$ 235.7 
$ 199.1 
 
 
 
 
 
Environmental And Mine Closure Obligations (Schedule Of Environmental Loss Contingencies By Site) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Loss Contingencies [Line Items]
 
 
Environmental
$ 15.5 
$ 13.7 
Total environmental and mine closure obligations
235.7 
199.1 
Less current portion
13.7 
14.2 
Mine closure obligation
220.2 
185.4 
Long term environmental and mine closure obligations
222.0 
184.9 
Previously Owned Or Operating Facilities [Member] |
L T V Steel Mining Company [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine closure obligation
16.5 
17.1 
Owned Or Operating Facilities [Member] |
U.S. Iron Ore [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine closure obligation
74.3 
62.7 
Owned Or Operating Facilities [Member] |
Eastern Canadian Iron Ore [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine closure obligation
68.0 
49.3 
Owned Or Operating Facilities [Member] |
North American Coal [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine closure obligation
36.3 
34.7 
Owned Or Operating Facilities [Member] |
Asia Pacific Iron Ore [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine closure obligation
16.3 
15.4 
Owned Or Operating Facilities [Member] |
Other Regions [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine closure obligation
$ 8.8 
$ 6.2 
Environmental And Mine Closure Obligations (Asset Retirement Obligation Disclosure) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Environmental And Mine Closure Obligations [Abstract]
 
 
Asset retirement obligation at beginning of period
$ 168.3 
$ 103.9 
Accretion expense
16.1 
13.1 
Exchange rate changes
0.1 
2.5 
Revision in estimated cash flows
5.9 
1.0 
Payments
(0.7)
(8.4)
Acquired through business combinations
14.0 
56.2 
Asset retirement obligation at end of period
$ 203.7 
$ 168.3 
Pensions And Other Postretirement Benefits (Narrative) (Details) (USD $)
1 Months Ended 12 Months Ended 12 Months Ended
Feb. 28, 2010
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Pension Benefits [Member]
Dec. 31, 2010
Pension Benefits [Member]
Dec. 31, 2009
Pension Benefits [Member]
Dec. 31, 2011
Other Benefits [Member]
Dec. 31, 2010
Other Benefits [Member]
Dec. 31, 2011
SEI Opportunity Collective Fund [Member]
Dec. 31, 2011
SEI Special Situations Fund [Member]
Dec. 31, 2011
Structured Credit [Member]
Dec. 31, 2011
Real Estate [Member]
Dec. 31, 2011
North American Coal [Member]
Dec. 31, 2010
North American Coal [Member]
Dec. 31, 2009
North American Coal [Member]
Dec. 31, 2011
Defined Benefit Postretirement Health Coverage [Member]
United States Postretirement Benefit Plans Of U S Entity Defined Benefit [Member]
Prior To Age 65 [Member]
Dec. 31, 2011
Defined Benefit Postretirement Health Coverage [Member]
United States Postretirement Benefit Plans Of U S Entity Defined Benefit [Member]
After Age 65 [Member]
Dec. 31, 2011
Defined Benefit Postretirement Health Coverage [Member]
Northshore [Member]
After Age 65 [Member]
Dec. 31, 2011
United States [Member]
Pension Benefits [Member]
Dec. 31, 2010
United States [Member]
Pension Benefits [Member]
Dec. 31, 2011
United States [Member]
Other Benefits [Member]
Dec. 31, 2010
United States [Member]
Other Benefits [Member]
Dec. 31, 2011
Canada [Member]
Dec. 31, 2011
Canada [Member]
Pension Benefits [Member]
Dec. 31, 2010
Canada [Member]
Pension Benefits [Member]
Dec. 31, 2011
Canada [Member]
Other Benefits [Member]
Dec. 31, 2010
Canada [Member]
Other Benefits [Member]
Dec. 31, 2011
Lower Limit [Member]
Dec. 31, 2011
Lower Limit [Member]
Defined Benefit Postretirement Health Coverage [Member]
Northshore [Member]
Prior To Age 65 [Member]
Dec. 31, 2011
Upper Limit [Member]
Dec. 31, 2011
Upper Limit [Member]
Defined Benefit Postretirement Health Coverage [Member]
Northshore [Member]
Prior To Age 65 [Member]
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remaining interest percentage
73.20% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of USW Employees
 
2,400 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of total workforce under labor contract
 
32.00% 
 
 
 
 
 
 
 
 
 
 
11.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual limit on medical coverage for each participant
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 7,000 
$ 3,000 
$ 2,000 
 
 
 
 
 
 
 
 
 
 
$ 4,020 
 
$ 4,500 
Minimum participants percentage
 
15.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contribution rate per hour worked
 
 
 
 
 
 
 
 
 
 
 
 
6.50 
6.42 
5.27 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual costs for defined contribution plan
 
 
 
5,700,000 
4,200,000 
2,100,000 
 
 
 
 
 
 
9,500,000 
10,300,000 
6,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funding of bargaining unit pension plans and VEBAs
 
90,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated benefit obligation for defined benefit pension plans
 
1,114,700,000 
997,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redemption request notice period, days
 
 
 
 
 
 
 
 
65 
95 
90 
45 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
 
 
 
 
 
4.28% 
5.11% 
 
 
 
 
 
 
 
 
 
 
4.28% 
5.11% 
4.28% 
5.11% 
4.00% 
4.00% 
5.00% 
4.25% 
5.00% 
4.12% 
 
4.43% 
 
Investment Commitments Reserved
 
13,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserved investment commitments
 
10,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contributions by participants to other benefit plans
 
 
 
 
 
 
$ 4,600,000 
$ 6,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pensions And Other Postretirement Benefits (Change In Benefit Obligations) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Benefit obligations - beginning of year
$ 1,022.3 
$ 750.8 
 
Service cost (excluding expenses)
23.6 
18.5 
14.3 
Interest cost
51.4 
52.9 
42.6 
Plan amendments
 
3.7 
 
Actuarial loss
117.3 
57.5 
 
Benefits paid
(67.3)
(67.0)
 
Exchange rate gain
(5.9)
10.2 
 
Acquired through business combinations
 
195.7 
 
Benefit obligations - end of year
1,141.4 
1,022.3 
750.8 
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Benefit obligations - beginning of year
440.2 
333.0 
 
Service cost (excluding expenses)
11.1 
7.5 
5.4 
Interest cost
22.3 
22.0 
18.9 
Actuarial loss
36.5 
43.6 
 
Benefits paid
(25.5)
(28.2)
 
Participant contributions
4.6 
6.2 
 
Federal subsidy on benefits paid
0.9 
0.9 
 
Exchange rate gain
(1.7)
2.9 
 
Acquired through business combinations
 
52.3 
 
Benefit obligations - end of year
$ 488.4 
$ 440.2 
$ 333.0 
Pensions And Other Postretirement Benefits (Change In Plan Assets) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Employer contributions
$ 37.4 
$ 38.5 
 
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Beginning balance
734.3 
483.4 
 
Actual return on plan assets
10.8 
87.1 
63.0 
Employer contributions
70.1 
45.6 
 
Benefits paid
(67.3)
(67.0)
 
Exchange rate gain
(3.8)
8.9 
 
Acquired through business combinations
 
176.3 
 
Ending balance
744.1 
734.3 
483.4 
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Beginning balance
174.2 
136.7 
 
Actual return on plan assets
1.9 
20.1 
27.8 
Participant contributions
1.6 
1.6 
 
Employer contributions
23.2 
23.7 
 
Benefits paid
(7.4)
(7.9)
 
Ending balance
$ 193.5 
$ 174.2 
$ 136.7 
Pensions And Other Postretirement Benefits (Net Funded Status) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 744.1 
$ 734.3 
$ 483.4 
Benefit obligations
(1,141.4)
(1,022.3)
(750.8)
Funded status (plan assets less benefit obligations)
(397.3)
(288.0)
 
Amount recognized
(397.3)
(288.0)
 
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
193.5 
174.2 
136.7 
Benefit obligations
(488.4)
(440.2)
(333.0)
Funded status (plan assets less benefit obligations)
(294.9)
(266.0)
 
Amount recognized
$ (294.9)
$ (266.0)
 
Pensions And Other Postretirement Benefits (Amounts Recognized In Statements Of Financial Position) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
 
 
Noncurrent liabilities
$ (665.8)
$ (528.0)
Pension Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Current liabilities
(2.6)
(3.1)
Noncurrent liabilities
(394.7)
(284.9)
Amount recognized
(397.3)
(288.0)
Other Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Current liabilities
(23.8)
(22.9)
Noncurrent liabilities
(271.1)
(243.1)
Amount recognized
$ (294.9)
$ (266.0)
Pensions And Other Postretirement Benefits (Amounts Recognized In Accumulated Other Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Pension Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Net actuarial loss
$ 409.1 
$ 269.3 
Prior service cost
18.8 
24.2 
Net amount recognized
427.9 
293.5 
Other Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Net actuarial loss
182.9 
152.3 
Prior service cost
8.1 
11.8 
Transition asset
(3.0)
(5.7)
Net amount recognized
$ 188.0 
$ 158.4 
Pensions And Other Postretirement Benefits (Estimated Amounts That Will Be Amortized From Accumulated Other Comprehensive Income Into Net Periodic Benefit Cost-2012) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Net actuarial loss
$ 19.6 
$ 23.1 
$ 26.8 
Prior service cost
(4.4)
(4.4)
(4.2)
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Net actuarial loss
8.8 
8.9 
11.5 
Prior service cost
(3.7)
(1.7)
(1.8)
Transition asset
(3.0)
(3.0)
(3.0)
Scenario, Estimated [Member] |
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Net actuarial loss
29.5 
 
 
Prior service cost
3.9 
 
 
Net amount recognized
33.4 
 
 
Scenario, Estimated [Member] |
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Net actuarial loss
11.4 
 
 
Prior service cost
3.0 
 
 
Transition asset
(3.0)
 
 
Net amount recognized
$ 11.4 
 
 
Pensions And Other Postretirement Benefits (Fair Value Of Plan Assets, Benefit Obligation And Funded Status) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 744.1 
$ 734.3 
$ 483.4 
Benefit obligations
(1,141.4)
(1,022.3)
(750.8)
Funded status (plan assets less benefit obligations)
(397.3)
(288.0)
 
Pension Benefits [Member] |
Salaried Employees [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
289.1 
275.3 
 
Benefit obligations
(419.3)
(373.8)
 
Funded status (plan assets less benefit obligations)
(130.2)
(98.5)
 
Pension Benefits [Member] |
Hourly Employees [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
451.8 
456.7 
 
Benefit obligations
(708.0)
(635.3)
 
Funded status (plan assets less benefit obligations)
(256.2)
(178.6)
 
Pension Benefits [Member] |
Mining Employees [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
3.2 
2.3 
 
Benefit obligations
(5.3)
(4.4)
 
Funded status (plan assets less benefit obligations)
(2.1)
(2.1)
 
Pension Benefits [Member] |
Supplemental Executive Retirement Plan SERP [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Benefit obligations
(8.8)
(8.8)
 
Funded status (plan assets less benefit obligations)
(8.8)
(8.8)
 
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
193.5 
174.2 
136.7 
Benefit obligations
(488.4)
(440.2)
(333.0)
Funded status (plan assets less benefit obligations)
(294.9)
(266.0)
 
Other Benefits [Member] |
Salaried Employees [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Benefit obligations
(70.7)
(63.7)
 
Funded status (plan assets less benefit obligations)
(70.7)
(63.7)
 
Other Benefits [Member] |
Hourly Employees [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
193.5 
174.2 
 
Benefit obligations
(417.7)
(376.5)
 
Funded status (plan assets less benefit obligations)
$ (224.2)
$ (202.3)
 
Pensions And Other Postretirement Benefits (Components Of Net Periodic Benefit Cost) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
$ 23.6 
$ 18.5 
$ 14.3 
Interest cost
51.4 
52.9 
42.6 
Expected return on plan assets
(61.2)
(53.3)
(37.1)
Prior service costs (credits)
4.4 
4.4 
4.2 
Net actuarial loss
19.6 
23.1 
26.8 
Net periodic benefit cost
37.8 
45.6 
50.8 
Acquired through business combinations
 
17.7 
 
Current year actuarial (gain)/loss
165.3 
(3.1)
12.1 
Amortization of net loss
(19.6)
(23.1)
(26.8)
Current year prior service cost
 
3.7 
3.0 
Amortization of prior service (cost) credit
(4.4)
(4.4)
(4.2)
Total recognized in other comprehensive income
141.3 
(9.2)
(15.9)
Total recognized in net periodic cost and other comprehensive income
179.1 
36.4 
34.9 
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
11.1 
7.5 
5.4 
Interest cost
22.3 
22.0 
18.9 
Expected return on plan assets
(16.1)
(12.9)
(9.1)
Net asset
(3.0)
(3.0)
(3.0)
Prior service costs (credits)
3.7 
1.7 
1.8 
Net actuarial loss
8.8 
8.9 
11.5 
Net periodic benefit cost
26.8 
24.2 
25.5 
Acquired through business combinations
 
2.4 
 
Current year actuarial (gain)/loss
46.8 
34.6 
2.2 
Amortization of net loss
(8.8)
(8.9)
(11.5)
Amortization of prior service (cost) credit
(3.7)
(1.7)
(1.8)
Amortization of transition asset
3.0 
3.0 
3.0 
Total recognized in other comprehensive income
37.3 
29.4 
(8.1)
Total recognized in net periodic cost and other comprehensive income
$ 64.1 
$ 53.6 
$ 17.4 
Pensions And Other Postretirement Benefits (Additional Information) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Effect of change in mine ownership & noncontrolling interest
$ 53.3 
$ 49.9 
$ 50.9 
Actual return on plan assets
10.8 
87.1 
63.0 
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Effect of change in mine ownership & noncontrolling interest
12.5 
10.7 
10.1 
Actual return on plan assets
$ 1.9 
$ 20.1 
$ 27.8 
Pensions And Other Postretirement Benefits (Weighted-Average Assumptions Used To Determine Benefit Obligations) (Details)
Dec. 31, 2011
Dec. 31, 2010
Pension Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Rate of compensation increase
4.00% 
4.00% 
Other Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Discount rate
4.28% 
5.11% 
Rate of compensation increase
4.00% 
4.00% 
United States [Member] |
Pension Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Discount rate
4.28% 
5.11% 
Return on plan assets
8.25% 
8.50% 
United States [Member] |
Other Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Discount rate
4.28% 
5.11% 
Return on plan assets
8.25% 
8.50% 
Canada [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Discount rate
4.00% 
 
Canada [Member] |
Pension Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Discount rate
4.00% 
5.00% 
Return on plan assets
7.25% 
7.50% 
Canada [Member] |
Other Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Discount rate
4.25% 
5.00% 
Return on plan assets
7.25% 
7.50% 
Pensions And Other Postretirement Benefits (Weighted-Average Assumptions Used To Determine Net Benefit Cost) (Details)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Rate of compensation increase
4.00% 
4.00% 
4.00% 
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Rate of compensation increase
4.00% 
4.00% 
4.00% 
United States [Member] |
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
5.11% 
5.66% 
6.00% 
Expected return on plan assets
8.50% 
8.50% 
8.50% 
United States [Member] |
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
5.11% 
5.66% 
6.00% 
Expected return on plan assets
8.50% 
8.50% 
8.50% 
Canada [Member] |
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
5.00% 
 
(1.00%)
Expected return on plan assets
7.50% 
7.50% 
(1.00%)
Canada [Member] |
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
5.00% 
 
(1.00%)
Expected return on plan assets
7.50% 
7.50% 
(1.00%)
Lower Limit [Member] |
Canada [Member] |
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
 
5.50% 
 
Lower Limit [Member] |
Canada [Member] |
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
 
5.75% 
 
Upper Limit [Member] |
Canada [Member] |
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
 
5.75% 
 
Upper Limit [Member] |
Canada [Member] |
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
 
6.00% 
 
Pensions And Other Postretirement Benefits (Assumed Health Care Cost Trend Rates) (Details)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Region Reporting Information, by Region [Line Items]
 
 
Ultimate health care cost trend rate
5.00% 
5.00% 
United States [Member]
 
 
Region Reporting Information, by Region [Line Items]
 
 
Health care cost trend rate assumed for next year
7.50% 
8.00% 
Year that the ultimate rate is reached
2017 
2017 
Canada [Member]
 
 
Region Reporting Information, by Region [Line Items]
 
 
Health care cost trend rate assumed for next year
8.00% 
8.50% 
Year that the ultimate rate is reached
2018 
2018 
Pensions And Other Postretirement Benefits (Change Of One Percentage Point In Assumed Health Care Cost Trend Rates) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Pensions And Other Postretirement Benefits [Abstract]
 
Effect on total of service and interest cost due to one percentage point increase
$ 5.7 
Effect on postretirement benefit obligation due to one percentage point increase
60.0 
Effect on total of service and interest cost due to one percentage point decrease
(4.4)
Effect on postretirement benefit obligation due to one percentage point decrease
$ (48.3)
Pensions And Other Postretirement Benefits (Target Allocation And Actual Asset Allocations For Pension And VEBA Plan Assets) (Details)
Dec. 31, 2011
Dec. 31, 2010
VEBA Trust [Member]
 
 
Weighted average asset allocation
100.00% 
100.00% 
VEBA Trust [Member] |
Equity Securities [Member]
 
 
Weighted average asset allocation
42.00% 
44.40% 
VEBA Trust [Member] |
Fixed Income Investments [Member]
 
 
Weighted average asset allocation
33.50% 
37.40% 
VEBA Trust [Member] |
Hedge Funds [Member]
 
 
Weighted average asset allocation
14.60% 
13.80% 
VEBA Trust [Member] |
Private Equity Funds [Member]
 
 
Weighted average asset allocation
4.50% 
4.30% 
VEBA Trust [Member] |
Real Estate [Member]
 
 
Weighted average asset allocation
5.30% 
 
VEBA Trust [Member] |
Cash [Member]
 
 
Weighted average asset allocation
0.10% 
0.10% 
Pension Benefits [Member]
 
 
Weighted average asset allocation
100.00% 
100.00% 
Pension Benefits [Member] |
Equity Securities [Member]
 
 
Weighted average asset allocation
41.70% 
42.00% 
Pension Benefits [Member] |
Fixed Income Investments [Member]
 
 
Weighted average asset allocation
31.10% 
30.60% 
Pension Benefits [Member] |
Hedge Funds [Member]
 
 
Weighted average asset allocation
13.50% 
14.40% 
Pension Benefits [Member] |
Private Equity Funds [Member]
 
 
Weighted average asset allocation
5.20% 
5.00% 
Pension Benefits [Member] |
Structured Credit [Member]
 
 
Weighted average asset allocation
6.00% 
5.40% 
Pension Benefits [Member] |
Real Estate [Member]
 
 
Weighted average asset allocation
2.20% 
2.10% 
Pension Benefits [Member] |
Cash [Member]
 
 
Weighted average asset allocation
0.30% 
0.50% 
2012 Target Allocation |
VEBA Trust [Member]
 
 
Weighted average asset allocation
100.00% 
 
2012 Target Allocation |
VEBA Trust [Member] |
Equity Securities [Member]
 
 
Weighted average asset allocation
41.80% 
 
2012 Target Allocation |
VEBA Trust [Member] |
Fixed Income Investments [Member]
 
 
Weighted average asset allocation
32.10% 
 
2012 Target Allocation |
VEBA Trust [Member] |
Hedge Funds [Member]
 
 
Weighted average asset allocation
14.90% 
 
2012 Target Allocation |
VEBA Trust [Member] |
Private Equity Funds [Member]
 
 
Weighted average asset allocation
6.20% 
 
2012 Target Allocation |
VEBA Trust [Member] |
Real Estate [Member]
 
 
Weighted average asset allocation
5.00% 
 
2012 Target Allocation |
Pension Benefits [Member]
 
 
Weighted average asset allocation
100.00% 
 
2012 Target Allocation |
Pension Benefits [Member] |
Equity Securities [Member]
 
 
Weighted average asset allocation
43.10% 
 
2012 Target Allocation |
Pension Benefits [Member] |
Fixed Income Investments [Member]
 
 
Weighted average asset allocation
30.20% 
 
2012 Target Allocation |
Pension Benefits [Member] |
Hedge Funds [Member]
 
 
Weighted average asset allocation
13.80% 
 
2012 Target Allocation |
Pension Benefits [Member] |
Private Equity Funds [Member]
 
 
Weighted average asset allocation
5.30% 
 
2012 Target Allocation |
Pension Benefits [Member] |
Structured Credit [Member]
 
 
Weighted average asset allocation
3.80% 
 
2012 Target Allocation |
Pension Benefits [Member] |
Real Estate [Member]
 
 
Weighted average asset allocation
3.80% 
 
Pensions And Other Postretirement Benefits (Fair Values Of Pension Plan Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 744.1 
$ 734.3 
$ 483.4 
Pension Benefits [Member] |
Equity Securities [Member] |
US Large Cap [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
191.1 
122.4 
 
Pension Benefits [Member] |
Equity Securities [Member] |
US Small Mid Cap [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
29.2 
21.7 
 
Pension Benefits [Member] |
Equity Securities [Member] |
International [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
90.0 
164.5 
 
Pension Benefits [Member] |
Fixed Income Investments [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
231.1 
224.7 
 
Pension Benefits [Member] |
Hedge Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
100.7 
105.8 
 
Pension Benefits [Member] |
Private Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
38.7 
36.8 
 
Pension Benefits [Member] |
Structured Credit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
44.9 
39.7 
 
Pension Benefits [Member] |
Real Estate [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
16.5 
15.5 
 
Pension Benefits [Member] |
Cash [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
1.9 
3.2 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
551.9 
548.3 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Pension Benefits [Member] |
Equity Securities [Member] |
US Large Cap [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
191.1 
122.4 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Pension Benefits [Member] |
Equity Securities [Member] |
US Small Mid Cap [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
29.2 
21.7 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Pension Benefits [Member] |
Equity Securities [Member] |
International [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
90.0 
164.5 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Pension Benefits [Member] |
Fixed Income Investments [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
231.1 
224.7 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Pension Benefits [Member] |
Private Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
8.6 
11.8 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Pension Benefits [Member] |
Cash [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
1.9 
3.2 
 
Significant Unobservable Inputs (Level 3) [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
192.2 
186.0 
143.1 
Significant Unobservable Inputs (Level 3) [Member] |
Hedge Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
100.7 
105.8 
71.4 
Significant Unobservable Inputs (Level 3) [Member] |
Private Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
30.1 
25.0 
18.2 
Significant Unobservable Inputs (Level 3) [Member] |
Structured Credit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
44.9 
39.7 
39.1 
Significant Unobservable Inputs (Level 3) [Member] |
Real Estate [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
16.5 
15.5 
14.4 
Significant Unobservable Inputs (Level 3) [Member] |
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
192.2 
186.0 
 
Significant Unobservable Inputs (Level 3) [Member] |
Pension Benefits [Member] |
Hedge Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
100.7 
105.8 
 
Significant Unobservable Inputs (Level 3) [Member] |
Pension Benefits [Member] |
Private Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
30.1 
25.0 
 
Significant Unobservable Inputs (Level 3) [Member] |
Pension Benefits [Member] |
Structured Credit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
44.9 
39.7 
 
Significant Unobservable Inputs (Level 3) [Member] |
Pension Benefits [Member] |
Real Estate [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 16.5 
$ 15.5 
 
Pensions And Other Postretirement Benefits (Effect Of Fair Value Measurements Using Significant Unobservable Inputs (Level 3) On Changes In Pension Plan Assets) (Details) (Significant Unobservable Inputs (Level 3) [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
 
 
Beginning balance
$ 186.0 
$ 143.1 
Relating to assets still held at the reporting date
7.0 
7.8 
Acquired through business combinations
40.2 
17.0 
Relating to assets sold during the period
4.0 
0.1 
Purchases, sales and settlements
 
18.0 
Purchases
40.2 
17.0 
Sales
(45.0)
 
Ending balance
192.2 
186.0 
Hedge Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Beginning balance
105.8 
71.4 
Relating to assets still held at the reporting date
(2.4)
2.4 
Acquired through business combinations
35.8 
17.0 
Relating to assets sold during the period
0.5 
 
Purchases, sales and settlements
 
15.0 
Purchases
35.8 
17.0 
Sales
(39.0)
 
Ending balance
100.7 
105.8 
Private Equity Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Beginning balance
25.0 
18.2 
Relating to assets still held at the reporting date
2.6 
3.4 
Acquired through business combinations
4.4 
 
Relating to assets sold during the period
3.0 
0.1 
Purchases, sales and settlements
 
3.3 
Purchases
4.4 
 
Sales
(4.9)
 
Ending balance
30.1 
25.0 
Structured Credit [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Beginning balance
39.7 
39.1 
Relating to assets still held at the reporting date
5.2 
0.5 
Purchases, sales and settlements
 
0.1 
Ending balance
44.9 
39.7 
Real Estate [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Beginning balance
15.5 
14.4 
Relating to assets still held at the reporting date
1.6 
1.5 
Relating to assets sold during the period
0.5 
 
Purchases, sales and settlements
 
(0.4)
Sales
(1.1)
 
Ending balance
$ 16.5 
$ 15.5 
Pensions And Other Postretirement Benefits (Fair Values Other Benefit Plan Assets) (Details) (Other Benefits [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
$ 193.5 
$ 174.2 
$ 136.7 
Equity Securities [Member] |
US Large Cap [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
46.5 
38.5 
 
Equity Securities [Member] |
US Small Mid Cap [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
7.9 
11.7 
 
Equity Securities [Member] |
International [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
26.8 
27.2 
 
Fixed Income Investments [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
64.9 
65.2 
 
Hedge Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
28.3 
24.0 
 
Private Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
8.7 
7.4 
 
Real Estate [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
10.2 
 
 
Cash [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
0.2 
0.2 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
148.2 
145.3 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Equity Securities [Member] |
US Large Cap [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
46.5 
38.5 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Equity Securities [Member] |
US Small Mid Cap [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
7.9 
11.7 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Equity Securities [Member] |
International [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
26.8 
27.2 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Fixed Income Investments [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
64.9 
65.2 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Private Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
1.9 
2.5 
 
Quoted Prices In Active Markets For Identical Assets/Liabilities (Level 1) [Member] |
Cash [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
0.2 
0.2 
 
Significant Unobservable Inputs (Level 3) [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
45.3 
28.9 
 
Significant Unobservable Inputs (Level 3) [Member] |
Hedge Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
28.3 
24.0 
 
Significant Unobservable Inputs (Level 3) [Member] |
Private Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
6.8 
4.9 
 
Significant Unobservable Inputs (Level 3) [Member] |
Real Estate [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assets
$ 10.2 
 
 
Pensions And Other Postretirement Benefits (Effect Of Fair Value Measurements Using Significant Unobservable Inputs (Level 3) On Changes In Other Benefit Plan Assets) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2011
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2010
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2011
Hedge Funds [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2010
Hedge Funds [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2011
Private Equity Funds [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2010
Private Equity Funds [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2011
Real Estate [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2010
Real Estate [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2011
Other Benefits [Member]
Dec. 31, 2010
Other Benefits [Member]
Dec. 31, 2009
Other Benefits [Member]
Dec. 31, 2011
Other Benefits [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2010
Other Benefits [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2011
Other Benefits [Member]
Hedge Funds [Member]
Dec. 31, 2010
Other Benefits [Member]
Hedge Funds [Member]
Dec. 31, 2011
Other Benefits [Member]
Hedge Funds [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2010
Other Benefits [Member]
Hedge Funds [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2011
Other Benefits [Member]
Private Equity Funds [Member]
Dec. 31, 2010
Other Benefits [Member]
Private Equity Funds [Member]
Dec. 31, 2011
Other Benefits [Member]
Private Equity Funds [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2010
Other Benefits [Member]
Private Equity Funds [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2011
Other Benefits [Member]
Real Estate [Member]
Dec. 31, 2011
Other Benefits [Member]
Real Estate [Member]
Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$ 186.0 
$ 143.1 
$ 105.8 
$ 71.4 
$ 25.0 
$ 18.2 
$ 15.5 
$ 14.4 
$ 193.5 
$ 174.2 
$ 136.7 
$ 28.9 
$ 17.7 
$ 28.3 
$ 24.0 
$ 24.0 
$ 14.6 
$ 8.7 
$ 7.4 
$ 4.9 
$ 3.1 
$ 10.2 
 
Relating to assets still held at the reporting date
7.0 
7.8 
(2.4)
2.4 
2.6 
3.4 
1.6 
1.5 
 
 
 
1.4 
1.1 
 
 
(0.4)
0.1 
 
 
1.4 
1.0 
 
0.4 
Purchases, sales and settlements
 
18.0 
 
15.0 
 
3.3 
 
(0.4)
 
 
 
 
10.1 
 
 
 
9.3 
 
 
 
0.8 
 
 
Purchases
40.2 
17.0 
35.8 
17.0 
4.4 
 
 
 
 
 
 
18.4 
 
 
 
7.7 
 
 
 
0.9 
 
 
9.8 
Sales
(45.0)
 
(39.0)
 
(4.9)
 
(1.1)
 
 
 
 
(3.4)
 
 
 
(3.0)
 
 
 
(0.4)
 
 
 
Ending balance
$ 192.2 
$ 186.0 
$ 100.7 
$ 105.8 
$ 30.1 
$ 25.0 
$ 16.5 
$ 15.5 
$ 193.5 
$ 174.2 
$ 136.7 
$ 45.3 
$ 28.9 
$ 28.3 
$ 24.0 
$ 28.3 
$ 24.0 
$ 8.7 
$ 7.4 
$ 6.8 
$ 4.9 
$ 10.2 
$ 10.2 
Pensions And Other Postretirement Benefits (Annual Contributions To The Pension Plans) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Company contributions
$ 37.4 
$ 38.5 
 
Company contributions - 2012 (Expected)
 
 
41.2 
Funded percentage
70.00% 
 
 
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Company contributions
70.1 
45.6 
 
Company contributions - 2012 (Expected)
 
 
66.3 
VEBA Trust [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Company contributions
17.4 
17.4 
 
Company contributions - 2012 (Expected)
 
 
17.4 
Direct Payments [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Company contributions
20.0 
21.1 
 
Company contributions - 2012 (Expected)
 
 
$ 23.8 
Pensions And Other Postretirement Benefits (Estimated Net Periodic Benefit Cost) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
 
Estimated net periodic benefit cost
$ 83.9 
Pension Benefits [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Estimated net periodic benefit cost
54.5 
Other Benefits [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Estimated net periodic benefit cost
$ 29.4 
Pensions And Other Postretirement Benefits (Estimated Future Benefit Payments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Pension Benefits [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2012
$ 73.3 
2013
76.9 
2014
75.0 
2015
76.8 
2016
77.1 
2017-2021
396.4 
Other Benefits [Member] |
Less Medicare Subsidy [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2012
1.0 
2013
1.1 
2014
1.2 
2015
1.3 
2016
1.4 
2017-2021
9.6 
Net Company Payments [Member] |
Other Benefits [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2012
23.8 
2013
24.7 
2014
26.1 
2015
27.3 
2016
28.1 
2017-2021
143.1 
Gross Company Benefits [Member] |
Other Benefits [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2012
24.8 
2013
25.8 
2014
27.3 
2015
28.6 
2016
29.5 
2017-2021
$ 152.7 
Pensions And Other Postretirement Benefits (Other Potential Benefit Obligations) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
$ 744.1 
$ 734.3 
$ 483.4 
Benefit obligation
1,141.4 
1,022.3 
750.8 
Underfunded status of plan
397.3 
288.0 
 
Additional shutdown and early retirement benefits
40.0 
 
 
Other Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of plan assets
193.5 
174.2 
136.7 
Benefit obligation
488.4 
440.2 
333.0 
Underfunded status of plan
294.9 
266.0 
 
Additional shutdown and early retirement benefits
$ 19.3 
 
 
Stock Compensation Plans (Narrative) (Details) (USD $)
6 Months Ended 8 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2009
Dec. 31, 2011
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2011
Portion Of Salary Payable In Stock Units [Member]
Dec. 31, 2011
Ice Plan2007 [Member]
Mar. 8, 2010
Ice Plan2007 [Member]
Dec. 31, 2011
Ice Plan2007 [Member]
Long Term Performance Plan20112013 [Member]
Dec. 17, 2009
Ice Plan2007 [Member]
Long Term Performance Plan20112013 [Member]
Dec. 31, 2011
Directors Plan [Member]
Dec. 31, 2011
Upper Limit [Member]
Dec. 31, 2010
Upper Limit [Member]
Dec. 31, 2009
Upper Limit [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation cost that has been charged against income
 
 
$ 15,900,000 
$ 15,500,000 
$ 12,200,000 
 
 
 
 
 
 
 
 
 
Share-based compensation arrangements portion of income tax benefit
 
 
5,600,000 
5,400,000 
4,300,000 
 
 
 
 
 
 
 
 
 
Excess tax benefits classified as cash from financing activities
 
 
4,500,000 
3,300,000 
3,500,000 
 
 
 
 
 
 
 
 
 
Maximum number of shares to be authorized
 
 
 
 
 
 
11,000,000 
 
 
 
800,000 
 
 
 
Market value of common shares to be owned by Director by the end of a four-year period
 
 
 
 
 
 
 
 
 
 
250,000 
 
 
 
Percentage of the target award pool that is granted based on performance
 
 
 
 
 
 
 
 
 
 
 
200.00% 
150.00% 
150.00% 
Number of shares granted under the Plan
 
 
 
 
 
 
307,940 
 
 
 
 
 
 
 
Share Based Compensation Arrangement Share Based Payment Award Additional Shares Authorized
 
 
 
 
 
 
 
18,720 
 
67,009 
 
 
 
 
Committees targeted payout
 
 
 
 
 
 
12,480 
 
44,673 
 
 
 
 
 
Nonemployee Directors annual retainer
 
60,000 
 
 
 
24,000 
 
 
 
 
 
 
 
 
Nonemployee Directors annual equity award
 
80,000 
 
 
 
 
 
 
 
 
 
 
 
 
Directors' annual retainer fee reduction
10.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total compensation cost related to outstanding awards not yet recognized
 
 
$ 26,000,000 
 
 
 
 
 
 
 
 
 
 
 
Weighted average remaining period for the awards outstanding (in years)
 
2.0 
2.0 
 
 
 
 
 
 
 
 
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Authorized Increase Decrease
 
 
 
 
 
 
500,000 
 
 
 
 
 
 
 
Stock Compensation Plans (Summary Of Outstanding Performance Share Award Agreements) (Details)
0 Months Ended 0 Months Ended
May 3, 2011
Performance Share Plan Two Thousand Eleven Member
Apr. 15, 2011
Performance Share Plan Two Thousand Eleven Member
Mar. 9, 2011
Performance Share Plan Two Thousand Eleven Member
Aug. 17, 2010
Performance Share Plan Two Thousand Ten Member
Jun. 15, 2010
Performance Share Plan Two Thousand Ten Member
May 4, 2010
Performance Share Plan Two Thousand Ten Member
Apr. 27, 2010
Performance Share Plan Two Thousand Ten Member
Apr. 13, 2010
Performance Share Plan Two Thousand Ten Member
Apr. 7, 2010
Performance Share Plan Two Thousand Ten Member
Mar. 9, 2010
Performance Share Plan Two Thousand Ten Member
Dec. 17, 2009
Performance Share Plan Two Thousand Nine Member
Sep. 1, 2009
Performance Share Plan Two Thousand Nine Member
Mar. 10, 2009
Performance Share Plan Two Thousand Nine Member
Dec. 18, 2009
Performance Share Plan Two Thousand Nine Member
Mar. 9, 2010
Target Payout [Member]
Performance Share Plan Two Thousand Ten Grant Date Not Yet Determined [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance Shares Outstanding
1,290 
2,090 
169,632 
670 
550 
12,080 
2,130 
590 
480 
209,853 
 
3,825 
372,881 
44,673 
12,480 
Forfeitures in period
 
 
18,848 
 
 
 
 
 
 
23,317 
 
 
22,089 
 
 
Grant Date
May 2, 2011 
April 14, 2011 
March 8, 2011 
August 16, 2010 
June 14, 2010 
May 3, 2010 
April 26, 2010 
April 12, 2010 
April 6, 2010 
March 8, 2010 
December 17, 2009 
August 31, 2009 
March 9, 2009 
 
March 8, 2010 
Performance Period
1/1/2011-12/31/2013 
1/1/2011-12/31/2013 
1/1/2011-12/31/2013 
1/1/2010-12/31/2012 
1/1/2010-12/31/2012 
1/1/2010-12/31/2012 
1/1/2010-12/31/2012 
1/1/2010-12/31/2012 
1/1/2010-12/31/2012 
1/1/2010-12/31/2012 
1/1/2009-12/31/2011 
1/1/2009-12/31/2011 
1/1/2009-12/31/2011 
 
1/1/2010-12/31/2012 
Stock Compensation Plans (Equity Grant Shares Awarded To Elected Or Re-elected Directors) (Details)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Non- Restricted Stock Awards [Member]
 
 
 
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
 
 
 
Equity Grant Shares
1,850 
3,963 
7,788 
Restricted Stock Awards [Member]
 
 
 
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
 
 
 
Equity Grant Shares
6,475 
7,926 
15,118 
Deferred Stock Awards [Member]
 
 
 
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
 
 
 
Equity Grant Shares
1,850 
1,321 
2,596 
Stock Compensation Plans (Share-based Compensation Expense Recorded For Continuing Operations) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Jun. 30, 2010
Mar. 31, 2010
Sep. 30, 2011
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
 
$ 274.4 
$ 202.1 
$ 117.6 
Reduction of operating income from continuing operations before income taxes and equity income (loss) from ventures
 
 
 
 
 
 
 
 
(16.1)
(2,241.5)
(1,303.0)
(296.5)
Income tax benefit
 
 
 
 
 
 
 
 
 
420.1 
293.5 
22.5 
NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
185.4 
601.2 
409.1 
423.4 
384.1 
297.6 
260.8 
77.4 
 
1,619.1 
1,019.9 
205.1 
Reduction of earnings per share attributable to Cliffs shareholders:
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$ 1.30 
$ 4.17 
$ 2.94 
$ 3.12 
$ 2.84 
$ 2.19 
$ 1.93 
$ 0.58 
 
$ 11.55 
$ 7.54 
$ 1.64 
Diluted
$ 1.30 
$ 4.15 
$ 2.92 
$ 3.11 
$ 2.82 
$ 2.18 
$ 1.92 
$ 0.57 
 
$ 11.48 
$ 7.49 
$ 1.63 
Stock Based Compensation Expense [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Cost of goods sold and operating expenses
 
 
 
 
 
 
 
 
 
2.7 
2.8 
1.2 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
 
13.2 
12.7 
11.0 
Reduction of operating income from continuing operations before income taxes and equity income (loss) from ventures
 
 
 
 
 
 
 
 
 
15.9 
15.5 
12.2 
Income tax benefit
 
 
 
 
 
 
 
 
 
(5.6)
(5.4)
(4.3)
NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
 
 
 
 
 
 
 
 
 
$ (10.3)
$ (10.1)
$ (7.9)
Reduction of earnings per share attributable to Cliffs shareholders:
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
 
 
$ 0.07 
$ 0.07 
$ 0.06 
Diluted
 
 
 
 
 
 
 
 
 
$ 0.07 
$ 0.07 
$ 0.06 
Stock Compensation Plans (Assumptions Utilized To Estimate The Fair Value For Performance Share Grants) (Details)
3 Months Ended 12 Months Ended
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2011
Stock Compensation Plans [Abstract]
 
 
 
Grant Date Market Price
$ 93.85 
$ 96.70 
 
Average Expected Term (Years)
2.81 
2.81 
 
Expected Volatility
94.40% 
94.40% 
 
Risk-Free Interest Rate
1.17% 
1.17% 
 
Dividend Yield
0.58% 
0.58% 
 
Fair Value
$ 75.64 
$ 77.90 
$ 88.60 
Fair Value (Percent of Grant Date Market Price)
80.60% 
80.60% 
 
Stock Compensation Plans (Stock Options, Restricted Stock, Deferred Stock Allocation And Performance Share Activity Under Incentive Equity Plans And Nonemployee Directors' Compensation Plans) (Details) (USD $)
3 Months Ended 12 Months Ended
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2011
Dec. 31, 2009
Stock Options [Member]
Dec. 31, 2011
Restricted Stock [Member]
Dec. 31, 2010
Restricted Stock [Member]
Dec. 31, 2009
Restricted Stock [Member]
Dec. 31, 2011
Performance Awards [Member]
Dec. 31, 2010
Performance Awards [Member]
Dec. 31, 2009
Performance Awards [Member]
Dec. 31, 2011
Other Compensation Costs [Member]
Dec. 31, 2010
Other Compensation Costs [Member]
Dec. 31, 2009
Other Compensation Costs [Member]
Dec. 31, 2011
Employee Stock Ownership Plan E S O P Plan [Member]
Dec. 31, 2011
Directors Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options outstanding at beginning of year
 
 
 
2,500 
 
 
 
 
 
 
 
 
 
 
 
Exercised
 
 
 
(2,500)
 
 
 
 
 
 
 
 
 
 
 
Options outstanding at beginning of year, weighted-average exercise price
 
 
 
$ 5.42 
 
 
 
 
 
 
 
 
 
 
 
Exercised, weighted-average exercise price
 
 
 
$ 5.42 
 
 
 
 
 
 
 
 
 
 
 
Outstanding and restricted at beginning of year
 
1,217,459 
1,217,459 
 
371,712 
290,702 
315,684 
843,238 
823,393 
594,115 
2,509 
4,596 
2,183 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period
 
 
390,690 
 
125,059 
133,666 
184,904 
263,816 1
376,524 1
555,046 1
1,815 
2,075 
4,602 
 
 
Vested
 
 
278,913 
 
(61,330)
(50,156)
(201,486)
(215,870)2
(343,321)2
(312,336)2
(1,713)
(4,162)
(2,189)
 
 
Forfeited/expired
 
 
24,024 
 
(10,275)
(2,500)
(8,400)
(13,749)
(13,358)
(13,432)
 
 
 
 
 
Outstanding and restricted at end of year
 
 
1,305,212 
 
425,166 
371,712 
290,702 
877,435 
843,238 
823,393 
2,611 
2,509 
4,596 
 
 
Vested or expected to vest at December 31, 2011
 
 
 
 
 
 
 
833,224 
 
 
 
 
 
 
 
Directors' plans
 
 
6,876,060 
 
 
 
 
 
 
 
 
 
 
6,760,871 
115,189 
Outstanding, beginning of year
 
$ 26.03 
$ 26.03 
 
 
 
 
 
 
 
 
 
 
 
 
Granted
$ 75.64 
$ 77.90 
$ 88.60 
 
 
 
 
 
 
 
 
 
 
 
 
Vested
 
 
$ 42.73 
 
 
 
 
 
 
 
 
 
 
 
 
Forfeited/expired
 
 
$ 61.61 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, end of year
 
 
$ 43.19 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes (Narrative) (Details) (USD $)
3 Months Ended 12 Months Ended
Sep. 30, 2011
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2008
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Valuation allowance
 
$ 51,200,000 
 
 
 
Deferred tax assets related to alternative minimum tax credits that can be carried forward indefinitely
 
228,500,000 
153,400,000 
 
 
United States federal net operating loss carry forwards
 
 
87,600,000 
 
 
State net operating loss carry forwards
 
147,100,000 
338,900,000 
 
 
Foreign net operating loss carry forwards
 
780,500,000 
234,400,000 
 
 
Deferred Tax Assets, Tax Credit Carryforwards, Foreign
 
5,800,000 
5,800,000 
 
 
Foreign tax credit carryforward expiration
 
2020 
 
 
 
Unrecognized tax benefits that would impact the effective tax rate
 
102,100,000 
 
 
 
Accrued interest and penalties related to the unrecognized tax benefits
 
4,100,000 
2,100,000 
 
 
Deferred tax liabilities on certain foreign investments
 
 
78,000,000 
 
 
Deferred tax asset on certain foreign investments
 
 
9,400,000 
 
 
Change in unrecognized tax benefits
39,000,000 
 
 
 
 
Lapses in statutes of limitations
 
45,800,000 
 
400,000 
 
Recognized tax benefits from expiration of statute of limitations
 
5,700,000 
 
 
 
Valuation allowance on deferred tax assets on certain foreign investments
 
 
9,400,000 
 
 
Unrecognized tax benefits
 
102,100,000 
79,800,000 
75,200,000 
53,700,000 
Unrecognized tax benefits in income tax expense, accrued interest and penalties
 
2,500,000 
11,600,000 
 
 
Decrease in deferred tax asset due to acts signed into law
 
 
(16,100,000)
 
 
Foreign [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Net operating loss carryforward expirations
 
2026 
 
 
 
Foreign [Member] |
Operating Income Loss [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Change in valuation allowance
 
41,100,000 
 
 
 
Foreign [Member] |
Certain Foreign Assets Where Tax Basis Exceeds Book Basis [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Change in valuation allowance
 
10,100,000 
 
 
 
State [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Net operating loss carryforward expirations
 
2022 
 
 
 
Retained Earnings [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Cumulative undistributed earnings of foreign subsidiaries
 
1,700,000,000 
1,000,000,000 
 
 
Consolidated Thompson [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Foreign net operating loss carry forwards
 
$ 211,000,000 
 
 
 
Income Taxes (Income From Continuing Operations Before Income Taxes And Equity Loss From Ventures) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2011
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Income Taxes [Abstract]
 
 
 
 
United States
 
$ 1,506.5 
$ 602.1 
$ 136.6 
Foreign
 
735.0 
700.9 
159.9 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY INCOME (LOSS) FROM VENTURES
$ 16.1 
$ 2,241.5 
$ 1,303.0 
$ 296.5 
Income Taxes (Components Of the Provision (Benefit) For Income Taxes On Continuing Operations) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Current provision (benefit):
 
 
 
United States federal
$ 246.8 
$ 109.6 
$ (44.5)
United States state & local
2.8 
2.6 
3.4 
Foreign
237.1 
166.1 
2.8 
Current Income Tax Expense (Benefit)
486.7 
278.3 
(38.3)
Deferred provision (benefit):
 
 
 
United States federal
23.8 
61.1 
13.2 
United States state & local
4.7 
5.2 
(6.1)
Foreign
(95.1)
(51.1)
53.7 
Provision for deferred taxes
(66.6)
15.2 
60.8 
Income tax expense
$ 420.1 
$ 293.5 
$ 22.5 
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Income Taxes [Abstract]
 
 
 
Tax at U.S. statutory rate of 35 percent
$ 784.5 
$ 456.0 
$ 103.8 
Increase (decrease) due to:
 
 
 
Foreign exchange remeasurement
(62.6)
 
 
Non-taxable income related to noncontrolling interests
(63.6)
 
 
Impact of tax law change
 
16.1 
 
Percentage depletion in excess of cost depletion
(153.4)
(103.1)
(66.2)
Impact of foreign operations
(49.4)
(89.1)
(44.3)
Legal entity restructuring
 
(87.4)
 
Income not subject to tax
(67.5)
 
 
Non-taxable hedging income
(32.4)
 
 
State taxes, net
7.5 
3.1 
(2.1)
Manufacturer's deduction
(11.9)
 
(0.1)
Valuation allowance
49.5 
83.3 
39.0 
Tax uncertainties
17.7 
 
 
Other items - net
1.7 
14.6 
(7.6)
U.S. statutory tax rate
35.00% 
 
 
Income tax expense
$ 420.1 
$ 293.5 
$ 22.5 
Income Taxes (Components Of Income Taxes For Other Than Continuing Operations) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Other comprehensive (income) loss:
 
 
 
Minimum pension/OPEB liability
$ (60.2)
$ 14.0 
$ (4.7)
Mark-to-market adjustments
(17.7)
1.7 
(12.3)
Other Comprehensive Income (Loss), Tax, Total
(77.9)
15.7 
(17.0)
Paid in capital - stock based compensation
(4.6)
(4.0)
3.5 
Discontinued Operations
$ (9.2)
$ (1.5)
$ (1.7)
Income Taxes (Components Of Our Deferred Tax Assets and Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Deferred tax assets:
 
 
Pensions
$ 154.8 
$ 108.5 
Postretirement benefits other than pensions
109.8 
92.0 
Alternative minimum tax credit carryforwards
228.5 
153.4 
Capital loss carryforwards
3.8 
1.3 
Development
 
0.9 
Asset retirement obligations
42.9 
42.0 
Operating loss carryforwards
260.7 
134.2 
Product inventories
30.1 
21.0 
Properties
44.8 
38.7 
Lease liabilities
38.8 
36.9 
Other liabilities
149.3 
85.4 
Total deferred tax assets before valuation allowance
1,063.5 
714.3 
Deferred tax asset valuation allowance
223.9 
172.7 
Net deferred tax assets
839.6 
541.6 
Deferred tax liabilities:
 
 
Properties
1,345.0 
222.6 
Investment in ventures
155.9 
72.7 
Intangible assets
13.5 
14.8 
Income tax uncertainties
56.7 
37.5 
Financial derivatives
1.3 
11.7 
Deferred revenue
 
45.3 
Other assets
98.2 
58.3 
Total deferred tax liabilities
1,670.6 
462.9 
Net deferred tax (liabilities) assets
$ (831.0)
$ 78.7 
Income Taxes (Deferred Tax Amounts Classified As Current Or Long-term) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Deferred tax assets:
 
 
Current
$ 21.9 
$ 43.2 
Long-term
209.5 
140.3 
Net deferred tax assets
839.6 
541.6 
Deferred tax liabilities:
 
 
Long-term
1,062.4 
63.7 
Net deferred tax (liabilities) assets
(831.0)
78.7 
United States [Member]
 
 
Deferred tax assets:
 
 
Current
17.7 
2.1 
Long-term
162.8 
134.5 
Net deferred tax assets
180.5 
136.6 
Foreign [Member]
 
 
Deferred tax assets:
 
 
Current
4.2 
 
Long-term
46.7 
5.8 
Net deferred tax assets
231.4 
142.4 
Deferred tax liabilities:
 
 
Long-term
1,062.4 
63.7 
Total deferred tax liabilities
$ 1,062.4 
$ 63.7 
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Income Taxes [Abstract]
 
 
 
Unrecognized tax benefits, beginning balance
$ 79.8 
$ 75.2 
$ 53.7 
Increases for tax positions in prior years
42.1 
1.9 
23.8 
Increases for tax positions in current year
29.5 
 
2.5 
Increase due to foreign exchange
 
0.7 
4.7 
Settlements
(3.5)
 
(9.1)
Lapses in statutes of limitations
(45.8)
 
(0.4)
Other
 
2.0 
 
Unrecognized tax benefits balance, ending balance
$ 102.1 
$ 79.8 
$ 75.2 
Capital Stock (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 6 Months Ended 12 Months Ended
Dec. 1, 2011
Nov. 18, 2011
Sep. 1, 2011
Aug. 15, 2011
Jul. 12, 2011
Jun. 13, 2011
Jun. 1, 2011
Apr. 29, 2011
Mar. 1, 2011
Feb. 15, 2011
Dec. 1, 2010
Nov. 19, 2010
Sep. 1, 2010
Aug. 13, 2010
Jun. 1, 2010
May 14, 2010
Dec. 31, 2011
Dec. 31, 2011
Dec. 31, 2009
May 25, 2011
Dec. 31, 2010
Jun. 13, 2011
Common Shares [Member]
Jun. 13, 2011
Over Allotment Option Member
Dec. 31, 2011
Preferred Class A [Member]
May 25, 2011
Preferred Class A [Member]
Dec. 31, 2010
Preferred Class A [Member]
Dec. 31, 2011
Preferred Class B [Member]
May 25, 2011
Preferred Class B [Member]
Dec. 31, 2010
Preferred Class B [Member]
May 25, 2011
Maximum [Member]
May 11, 2010
Scenario, Previously Reported [Member]
May 11, 2010
Scenario, Adjustment [Member]
Shares authorized to be repurchased
 
 
 
4,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock repurchased during period, value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 289.8 
$ (289.8)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock repurchased, cost per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 72.44 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares, issued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
149,195,469 
149,195,469 
 
 
138,845,469 
9,000,000 
1,350,000 
 
 
 
 
 
 
 
 
 
Closing price per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 85.63 
$ 85.63 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividend payable, per share
 
 
 
 
$ 0.28 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.0875 
$ 0.14 
Proceeds from issuance of common stock
 
 
 
 
 
$ 854.0 
 
 
 
 
 
 
 
 
 
 
 
$ 853.7 
$ 347.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common share dividends date paid
Dec. 01, 2011 
 
Sep. 01, 2011 
 
 
 
Jun. 01, 2011 
 
Mar. 01, 2011 
 
Dec. 01, 2010 
 
Sep. 01, 2010 
 
Jun. 01, 2010 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common share dividends date of record
 
Nov. 18, 2011 
 
Aug. 15, 2011 
 
 
 
Apr. 29, 2011 
 
Feb. 15, 2011 
 
Nov. 19, 2010 
 
Aug. 13, 2010 
 
May 14, 2010 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage increase in dividends payable
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total shares, authorized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
231,000,000 
 
 
 
 
 
 
 
 
 
407,000,000 
 
 
Common shares, authorized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
400,000,000 
400,000,000 
 
224,000,000 
224,000,000 
 
 
 
 
 
 
 
 
400,000,000 
 
 
Preferred stock, shares included in amendment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
3,000,000 
3,000,000 
4,000,000 
4,000,000 
4,000,000 
 
 
 
Issuance of common shares (in shares)
 
 
 
 
 
10,350,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) (Components Of Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2011
Postretirement Benefit Liability [Member]
Dec. 31, 2010
Postretirement Benefit Liability [Member]
Dec. 31, 2009
Postretirement Benefit Liability [Member]
Dec. 31, 2008
Postretirement Benefit Liability [Member]
Dec. 31, 2011
Foreign Currency Translation Adjustment [Member]
Dec. 31, 2010
Foreign Currency Translation Adjustment [Member]
Dec. 31, 2009
Foreign Currency Translation Adjustment [Member]
Dec. 31, 2008
Foreign Currency Translation Adjustment [Member]
Dec. 31, 2011
Unrealized Gain (Loss) On Derivatives [Member]
Dec. 31, 2010
Unrealized Gain (Loss) On Derivatives [Member]
Dec. 31, 2009
Unrealized Gain (Loss) On Derivatives [Member]
Dec. 31, 2008
Unrealized Gain (Loss) On Derivatives [Member]
Dec. 31, 2011
Accumulated Net Unrealized Investment Gain (Loss) On Securities [Member]
Dec. 31, 2010
Accumulated Net Unrealized Investment Gain (Loss) On Securities [Member]
Dec. 31, 2009
Accumulated Net Unrealized Investment Gain (Loss) On Securities [Member]
Dec. 31, 2008
Accumulated Net Unrealized Investment Gain (Loss) On Securities [Member]
Pre-tax Amount
$ (299.2)
$ (71.3)
$ (240.0)
$ (615.9)
$ (452.0)
$ (451.9)
 
$ 312.5 
$ 329.9 
$ 163.1 
 
$ 1.7 
$ 3.9 
$ 5.7 
 
$ 2.5 
$ 46.9 
$ 43.1 
 
Tax Benefit (Provision)
206.6 
117.2 
117.4 
207.0 
146.9 
132.8 
 
 
(15.2)
 
 
(0.5)
(1.2)
(1.7)
 
0.1 
(13.3)
(13.7)
 
After-tax Amount
(92.6)
45.9 
(122.6)
(408.9)
(305.1)
(319.1)
(343.3)
312.5 
314.7 
163.1 
(68.6)
1.2 
2.7 
4.0 
19.1 
2.6 
33.6 
29.4 
(0.1)
Unrealized net gain on derivative financial instruments, After-tax
$ (1.5)
$ (1.3)
$ (15.1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) (Changes In The Components Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Accumulated Other Comprehensive Income (Loss), ending balance
$ (92.6)
$ 45.9 
$ (122.6)
Postretirement Benefit Liability [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss), beginning balance
(305.1)
(319.1)
(343.3)
Other Comprehensive Income (Loss), Net of Tax
(103.8)
14.0 
24.2 
Accumulated Other Comprehensive Income (Loss), ending balance
(408.9)
(305.1)
(319.1)
Foreign Currency Translation Adjustment [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss), beginning balance
314.7 
163.1 
(68.6)
Other Comprehensive Income (Loss), Net of Tax
(2.2)
151.6 
231.7 
Accumulated Other Comprehensive Income (Loss), ending balance
312.5 
314.7 
163.1 
Accumulated Net Unrealized Investment Gain (Loss) On Securities [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss), beginning balance
33.6 
29.4 
(0.1)
Other Comprehensive Income (Loss), Net of Tax
(31.0)
4.2 
29.5 
Accumulated Other Comprehensive Income (Loss), ending balance
2.6 
33.6 
29.4 
Interest Rate Swap [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss), beginning balance
 
 
(1.7)
Other Comprehensive Income (Loss), Net of Tax
 
 
1.7 
Unrealized Gain (Loss) On Derivatives [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss), beginning balance
2.7 
4.0 
19.1 
Other Comprehensive Income (Loss), Net of Tax
(1.5)
(1.3)
(15.1)
Accumulated Other Comprehensive Income (Loss), ending balance
1.2 
2.7 
4.0 
Accumulated Other Comprehensive Income (Loss) [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss), beginning balance
45.9 
(122.6)
(394.6)
Other Comprehensive Income (Loss), Net of Tax
(138.5)
168.5 
272.0 
Accumulated Other Comprehensive Income (Loss), ending balance
$ (92.6)
$ 45.9 
$ (122.6)
Earnings Per Share (Earnings Per Share Computation) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net income from continuing operations attributable to Cliffs shareholders
$ 185.3 
$ 618.7 
$ 409.8 
$ 423.8 
$ 385.2 
$ 298.3 
$ 261.5 
$ 78.0 
$ 1,637.6 
$ 1,023.0 
$ 208.5 
Loss from discontinued operations
0.1 
(17.5)
(0.7)
(0.4)
(1.1)
(0.7)
(0.7)
(0.6)
(18.5)
(3.1)
(3.4)
Net Income Attributable to Cliffs Shareholders
$ 185.4 
$ 601.2 
$ 409.1 
$ 423.4 
$ 384.1 
$ 297.6 
$ 260.8 
$ 77.4 
$ 1,619.1 
$ 1,019.9 
$ 205.1 
Number of Shares:
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
 
140,234,000 
135,301,000 
124,998,000 
Employee stock plans
 
 
 
 
 
 
 
 
800,000 
800,000 
800,000 
Diluted
 
 
 
 
 
 
 
 
141,012,000 
136,138,000 
125,751,000 
Income (Loss) from Continuing Operations, Per Basic Share
$ 1.30 
$ 4.29 
$ 2.95 
$ 3.12 
$ 2.85 
$ 2.20 
$ 1.93 
$ 0.58 
$ 11.68 
$ 7.56 
$ 1.67 
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share
 
$ (0.12)
$ (0.01)
 
$ (0.01)
$ (0.01)
 
 
$ (0.13)
$ (0.02)
$ (0.03)
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - BASIC
$ 1.30 
$ 4.17 
$ 2.94 
$ 3.12 
$ 2.84 
$ 2.19 
$ 1.93 
$ 0.58 
$ 11.55 
$ 7.54 
$ 1.64 
Income (Loss) from Continuing Operations, Per Diluted Share
$ 1.30 
$ 4.27 
$ 2.93 
$ 3.11 
$ 2.83 
$ 2.19 
$ 1.92 
$ 0.57 
$ 11.61 
$ 7.51 
$ 1.66 
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share
 
$ (0.12)
$ (0.01)
 
$ (0.01)
$ (0.01)
 
 
$ (0.13)
$ (0.02)
$ (0.03)
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - DILUTED
$ 1.30 
$ 4.15 
$ 2.92 
$ 3.11 
$ 2.82 
$ 2.18 
$ 1.92 
$ 0.57 
$ 11.48 
$ 7.49 
$ 1.63 
Commitments And Contingencies (Narrative) (Details) (USD $)
12 Months Ended 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2012
Koolyanobbing [Member]
Dec. 31, 2011
Koolyanobbing [Member]
Dec. 31, 2010
Koolyanobbing [Member]
MT
Dec. 31, 2012
Koolyanobbing Rail Upgrade [Member]
Dec. 31, 2011
Koolyanobbing Rail Upgrade [Member]
Dec. 31, 2012
Bloom Lake [Member]
Dec. 31, 2011
Bloom Lake [Member]
MT
Dec. 31, 2011
Lower War Eagle [Member]
Dec. 31, 2011
Empire [Member]
T
Dec. 31, 2011
Empire And Tilden [Member]
Dec. 31, 2010
Empire And Tilden [Member]
Dec. 31, 2011
Tilden [Member]
T
Dec. 31, 2012
Oak Grove [Member]
Dec. 31, 2011
Oak Grove [Member]
Dec. 31, 2012
Pinnacle [Member]
Dec. 31, 2011
Pinnacle [Member]
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contractual obligations and binding commitments
$ 11,000,000,000 
$ 5,700,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future commitments, year one
1,400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future commitments, year two
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future commitments, year three
600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future commitments, year four
900,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future commitments, year five
600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future commitments, thereafter
6,500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-cash accruals
60,100,000 
8,900,000 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital investment
 
 
 
 
275,000,000 
 
 
 
 
1,300,000,000 
97,000,000 
 
 
 
 
 
 
 
 
Capital investment committed
 
 
 
 
 
259,000,000 
 
33,000,000 
 
445,000,000 
55,000,000 
 
178,000,000 
 
 
 
52,000,000 
 
 
Increase in production capacity, tons
 
 
 
 
 
 
 
 
 
8,000,000 
 
 
 
 
2,000,000 
 
 
 
 
Gross post-project production capacity, tons
 
 
 
 
 
11,000,000 
 
 
 
16,000,000 
 
3,000,000 
 
 
 
 
 
 
 
Capital investment paid
 
 
 
 
202,000,000 
 
 
25,000,000 
 
165,000,000 
40,000,000 
 
 
 
 
 
46,000,000 
 
142,000,000 
Capital investment, future payments
 
 
 
57,000,000 
 
 
8,000,000 
 
280,000,000 
 
15,000,000 
 
 
264,000,000 
 
6,000,000 
 
36,000,000 
 
Environmental liabilities
$ 15,500,000 
$ 13,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Replacement of rail and associated parts, miles
62 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flow Information (Cash Payments For Interest and Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2010
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Taxes paid on income
 
$ 275.3 
$ 208.3 
$ 64.8 
Interest paid on debt obligations
 
175.1 
34.2 
25.3 
Value of shares issued in acquisition
 
1,075.4 
173.1 
 
Gain on remeasurement of equity interest before acquisition
38.6 
 
40.7 
 
Freewest [Member]
 
 
 
 
Number of shares issued in acquisition
 
 
4.2 
 
Value of shares issued in acquisition
 
 
173.1 
 
Gain on remeasurement of equity interest before acquisition
 
 
13.6 
 
Freewest And Wabush [Member]
 
 
 
 
Gain on remeasurement of equity interest before acquisition
 
 
$ 38.6 
 
Related Parties (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
years
Dec. 31, 2010
Dec. 31, 2002
Dec. 31, 2011
Noncurrent Assets [Member]
Dec. 31, 2010
Noncurrent Assets [Member]
Dec. 31, 2011
Empire [Member]
Dec. 31, 2010
Empire [Member]
Dec. 31, 2002
Empire [Member]
Dec. 31, 2001
Empire [Member]
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
Accounts receivable and derivative assets related parties
$ 180.4 
$ 52.4 
 
 
 
 
 
 
 
Other current liabilities related parties
43.0 
 
 
 
 
 
 
 
 
Present value of other non-current assets
 
 
 
16.5 
22.8 
 
 
 
 
Percent ownership interest
 
 
 
 
 
 
 
46.70% 
46.70% 
Noncontrolling Interest, Ownership Percentage by Parent
 
 
 
 
 
 
 
79.00% 
 
Indemnified obligations of related parties
 
 
120.0 
 
 
 
 
 
 
Present value of receivable
 
 
 
 
 
$ 26.5 
$ 32.8 
 
 
Life of the supply agreement, years
12 
 
 
 
 
 
 
 
 
Related Parties (Mine Ownership Of North American Iron Ore Mines) (Details)
Dec. 31, 2011
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% 
Cliffs Natural Resources [Member] |
Empire [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
79.00% 
Cliffs Natural Resources [Member] |
Tilden [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
85.00% 
Cliffs Natural Resources [Member] |
Hibbing [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
23.00% 
Cliffs Natural Resources [Member] |
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] |
Hibbing [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
62.30% 
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% 
WISCO [Member] |
Bloom Lake [Member]
 
Related Party Transaction [Line Items]
 
Ownership Interest
25.00% 
Subsequent Events (Narrative) (Details) (Foreign Exchange Contracts [Member], CAD $)
In Millions, unless otherwise specified
Feb. 10, 2012
Foreign Exchange Contracts [Member]
 
Notional Amount of Foreign Currency Derivatives
$ 200 
Quarterly Results of Operations (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 3 Months Ended 6 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended 9 Months Ended
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Jun. 30, 2010
Mar. 31, 2010
Sep. 30, 2011
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2010
Freewest [Member]
Jan. 27, 2010
Freewest [Member]
Sep. 30, 2011
Arcelor Mittal [Member]
Jun. 30, 2011
Empire [Member]
Mar. 31, 2011
Empire [Member]
Jun. 30, 2011
Empire [Member]
Sep. 30, 2011
Empire [Member]
Dec. 31, 2002
Empire [Member]
Dec. 31, 2001
Empire [Member]
Dec. 31, 2011
CLCC [Member]
Feb. 1, 2010
Wabush [Member]
Sep. 30, 2011
Consolidated Thompson [Member]
Sep. 30, 2011
Scenario, Adjustment [Member]
Mar. 31, 2010
Scenario, Adjustment [Member]
Wabush [Member]
Dec. 31, 2010
Scenario, Adjustment [Member]
Wabush [Member]
Sep. 30, 2011
Scenario, Adjustment [Member]
Consolidated Thompson [Member]
Jun. 30, 2011
Scenario, Adjustment [Member]
Consolidated Thompson [Member]
Sep. 30, 2011
Scenario, Adjustment [Member]
Consolidated Thompson [Member]
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 27,400,000 
 
 
 
 
 
 
 
 
$ 38,000,000 
 
 
 
 
 
 
 
Interest Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
12.40% 
 
 
 
 
 
46.70% 
46.70% 
 
26.80% 
 
 
 
 
 
 
 
Empire's ownership percentage
 
 
 
 
 
 
 
 
 
21.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent interest acquired
79.00% 
 
 
 
 
 
 
 
 
79.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on acquisition of controlling interests
 
 
 
 
 
 
 
38,600,000 
 
 
40,700,000 
 
13,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
25,000,000 
 
 
 
Retained earnings
(4,424,300,000)
67,900,000 
 
 
(2,924,100,000)
 
 
 
67,900,000 
(4,424,300,000)
(2,924,100,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16,100,000 
 
 
 
 
Minority Interest
1,254,700,000 
84,000,000 
 
 
(7,200,000)
 
 
 
84,000,000 
1,254,700,000 
(7,200,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior period reclassification adjustment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
54,100,000 
 
103,000,000 
 
46,000,000 
 
 
 
 
 
 
 
 
 
 
 
Reduction in earnings per share basic
 
$ 0.47 
 
 
 
 
 
 
$ 0.49 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reduction in earnings per share diluted
 
 
 
 
 
 
 
 
$ 0.48 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill, Impairment Loss
 
 
 
 
 
 
 
 
 
27,800,000 
 
 
 
 
 
 
 
 
 
 
 
27,800,000 
 
 
 
 
 
 
 
 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY LOSS FROM VENTURES
 
 
 
 
 
 
 
 
16,100,000 
2,241,500,000 
1,303,000,000 
296,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
22,000,000 
 
2,000,000 
500,000 
2,500,000 
Net income (loss) attributable to Cliffs shareholders
185,400,000 
601,200,000 
409,100,000 
423,400,000 
384,100,000 
297,600,000 
260,800,000 
77,400,000 
 
1,619,100,000 
1,019,900,000 
205,100,000 
 
 
 
(30,400,000)
(37,500,000)
(67,900,000)
 
 
 
 
 
 
13,100,000 
16,100,000 
 
11,700,000 
1,400,000 
 
Decrease in basic and diluted earnings per share
 
 
 
 
 
 
 
0.12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase in basic and diluted earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.08 
 
 
 
$ 0.09 
$ 0.01 
$ 0.09 
Quarterly Results of Operations (Schedule Of Quarterly Financial Information) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Quarterly Results Of Operations (Unaudited) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Revenues from product sales and services
$ 1,662.5 
$ 2,142.8 
$ 1,805.8 
$ 1,183.2 
$ 1,424.1 
$ 1,346.0 
$ 1,184.3 
$ 727.7 
$ 6,794.3 
$ 4,682.1 
$ 2,342.0 
Sales margin
496.2 
861.3 
731.6 
599.5 
483.5 
477.3 
415.2 
150.5 
2,688.6 
1,526.5 
311.7 
Net income from continuing operations attributable to Cliffs shareholders
185.3 
618.7 
409.8 
423.8 
385.2 
298.3 
261.5 
78.0 
1,637.6 
1,023.0 
208.5 
Loss from discontinued operations
0.1 
(17.5)
(0.7)
(0.4)
(1.1)
(0.7)
(0.7)
(0.6)
(18.5)
(3.1)
(3.4)
Net income (loss) attributable to Cliffs shareholders
185.4 
601.2 
409.1 
423.4 
384.1 
297.6 
260.8 
77.4 
1,619.1 
1,019.9 
205.1 
LOSS FROM DISCONTINUED OPERATIONS, net of tax
$ 0.1 
$ (17.5)
$ (0.7)
$ (0.4)
$ (1.1)
$ (0.7)
$ (0.7)
$ (0.6)
$ (18.5)
$ (3.1)
$ (3.4)
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$ 1.30 
$ 4.29 
$ 2.95 
$ 3.12 
$ 2.85 
$ 2.20 
$ 1.93 
$ 0.58 
$ 11.68 
$ 7.56 
$ 1.67 
Discontinued operations
 
$ (0.12)
$ (0.01)
 
$ (0.01)
$ (0.01)
 
 
$ (0.13)
$ (0.02)
$ (0.03)
Earnings per common share attributable to Cliffs shareholders - Basic:
$ 1.30 
$ 4.17 
$ 2.94 
$ 3.12 
$ 2.84 
$ 2.19 
$ 1.93 
$ 0.58 
$ 11.55 
$ 7.54 
$ 1.64 
Continuing operations
$ 1.30 
$ 4.27 
$ 2.93 
$ 3.11 
$ 2.83 
$ 2.19 
$ 1.92 
$ 0.57 
$ 11.61 
$ 7.51 
$ 1.66 
Discontinued operations
 
$ (0.12)
$ (0.01)
 
$ (0.01)
$ (0.01)
 
 
$ (0.13)
$ (0.02)
$ (0.03)
Earnings per common share attributable to Cliffs shareholders - Diluted:
$ 1.30 
$ 4.15 
$ 2.92 
$ 3.11 
$ 2.82 
$ 2.18 
$ 1.92 
$ 0.57 
$ 11.48 
$ 7.49 
$ 1.63 
Quarterly Results Of Operations (Schedule Of Error Corrections And Prior Period Adjustments) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2010
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Jun. 30, 2011
Empire [Member]
Mar. 31, 2011
Empire [Member]
Jun. 30, 2011
Empire [Member]
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product
 
 
 
 
 
 
 
 
$ 6,551.7 
$ 4,416.8 
$ 2,216.2 
$ 46.0 
$ 54.1 
$ 100.1 
Freight and venture partners' cost reimbursements
 
 
 
 
 
 
 
 
242.6 
265.3 
125.8 
(46.0)
 
(46.0)
Revenues from product sales and services
1,662.5 
2,142.8 
1,805.8 
1,183.2 
1,424.1 
1,346.0 
1,184.3 
727.7 
6,794.3 
4,682.1 
2,342.0 
 
54.1 
54.1 
Cost of Goods Sold and Operating Expenses
 
 
 
 
 
 
 
 
4,105.7 
3,155.6 
2,030.3 
 
(54.1)
(54.1)
Income from Continuing Operations
 
 
 
 
 
 
 
 
2,348.6 
1,270.2 
236.1 
7.7 
8.4 
16.1 
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
 
 
 
 
 
 
 
 
193.5 
 
 
38.1 
45.9 
84.0 
Net Income Attributable to Cliffs Shareholders
$ 185.4 
$ 601.2 
$ 409.1 
$ 423.4 
$ 384.1 
$ 297.6 
$ 260.8 
$ 77.4 
$ 1,619.1 
$ 1,019.9 
$ 205.1 
$ (30.4)
$ (37.5)
$ (67.9)
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Basic and Diluted
 
 
 
 
 
 
 
 
 
 
 
$ (0.22)
$ (0.28)
$ (0.49)
Schedule II - Valuation And Qualifying Accounts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Schedule II - Valuation And Qualifying Accounts [Abstract]
 
 
 
Balance at Beginning of Year
$ 172.7 
$ 89.4 
$ 17.6 
Charged to Cost and Expenses
49.1 
94.3 
53.8 
Charged to Other Accounts
2.1 
 
1.7 
Acquisition
 
 
16.8 
Deductions
 
11.0 
0.5 
Balance at End of Year
$ 223.9 
$ 172.7 
$ 89.4