CLIFFS NATURAL RESOURCES INC., 10-Q filed on 11/7/2014
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2014
Nov. 3, 2014
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
CLIFFS NATURAL RESOURCES INC. 
 
Entity Central Index Key
0000764065 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2014 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q3 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
153,195,289 
Trading Symbol
clf 
 
Statements Of Condensed Consolidated Operations (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
REVENUES FROM PRODUCT SALES AND SERVICES
 
 
 
 
Product
$ 1,190.8 
$ 1,454.6 
$ 3,070.3 
$ 3,928.8 
Freight and venture partners' cost reimbursements
107.4 
92.0 
268.7 
246.8 
TOTAL REVENUES
1,298.2 
1,546.6 
3,339.0 
4,175.6 
COST OF GOODS SOLD AND OPERATING EXPENSES
(1,170.7)
(1,197.9)
(3,056.3)
(3,320.8)
SALES MARGIN
127.5 
348.7 
282.7 
854.8 
OTHER OPERATING INCOME (EXPENSE)
 
 
 
 
Selling, general and administrative expenses
(62.7)
(70.6)
(166.3)
(167.9)
Exploration costs
(1.1)
(10.6)
(8.7)
(45.9)
Impairment of goodwill and other long-lived assets
(7,769.1)
(7,773.1)
Miscellaneous - net
(53.7)
(43.5)
(156.1)
13.3 
Other operating expense
(7,886.6)
(124.7)
(8,104.2)
(200.5)
OPERATING INCOME (LOSS)
(7,759.1)
224.0 
(7,821.5)
654.3 
OTHER INCOME (EXPENSE)
 
 
 
 
Interest expense, net
(47.4)
(44.7)
(134.9)
(134.5)
Other non-operating income (expense)
7.1 
(1.2)
10.5 
(2.9)
TOTAL OTHER EXPENSE
(40.3)
(45.9)
(124.4)
(137.4)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY LOSS FROM VENTURES
(7,799.4)
178.1 
(7,945.9)
516.9 
INCOME TAX BENEFIT (EXPENSE)
921.4 
(65.7)
1,012.3 
(69.0)
EQUITY LOSS FROM VENTURES, net of tax
(9.2)
(0.5)
(9.8)
(73.9)
INCOME (LOSS) FROM CONTINUING OPERATIONS
(6,887.2)
111.9 
(6,943.4)
374.0 
INCOME FROM DISCONTINUED OPERATIONS, net of tax
2.0 
2.0 
NET INCOME (LOSS)
(6,887.2)
113.9 
(6,943.4)
376.0 
LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTEREST
1,007.6 
3.3 
1,004.4 
(5.8)
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
(5,879.6)
117.2 
(5,939.0)
370.2 
PREFERRED STOCK DIVIDENDS
(12.8)
(12.9)
(38.4)
(35.9)
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS COMMON SHAREHOLDERS
$ (5,892.4)
$ 104.3 
$ (5,977.4)
$ 334.3 
Earnings (Loss) Per Common Share Attributable to Cliffs Shareholders - Basic
 
 
 
 
Continuing operations
$ (38.49)
$ 0.67 
$ (39.05)
$ 2.20 
Discontinued operations
$ 0.00 
$ 0.01 
$ 0.00 
$ 0.01 
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Basic:
$ (38.49)
$ 0.68 
$ (39.05)
$ 2.21 
Earnings (Loss) Per Common Share Attributable to Cliffs Shareholders - Diluted
 
 
 
 
Continuing operations
$ (38.49)
$ 0.65 
$ (39.05)
$ 2.13 
Discontinued operations
$ 0.00 
$ 0.01 
$ 0.00 
$ 0.01 
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Diluted:
$ (38.49)
$ 0.66 
$ (39.05)
$ 2.14 
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
 
 
 
 
Basic
153,108 
153,029 
153,085 
151,288 
Diluted
153,108 
178,459 
153,085 
172,624 
CASH DIVIDENDS DECLARED PER DEPOSITARY SHARE
$ 0.44 
$ 0.44 
$ 1.32 
$ 1.22 
CASH DIVIDENDS DECLARED PER COMMON SHARE
$ 0.15 
$ 0.15 
$ 0.45 
$ 0.45 
Statements Of Condensed Consolidated Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Statement of Comprehensive Income [Abstract]
 
 
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$ (5,879.6)
$ 117.2 
$ (5,939.0)
$ 370.2 
OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
Changes in pension and other post-retirement benefits, net of tax
11.6 
6.6 
18.2 
20.8 
Unrealized net gain (loss) on marketable securities, net of tax
(5.8)
4.4 
(5.6)
7.6 
Unrealized net gain (loss) on foreign currency translation
(65.9)
22.8 
(5.7)
(124.9)
Unrealized net gain (loss) on derivative financial instruments, net of tax
(20.6)
28.3 
6.2 
(23.1)
OTHER COMPREHENSIVE INCOME (LOSS)
(80.7)
62.1 
13.1 
(119.6)
OTHER COMPREHENSIVE INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST
(0.5)
(0.9)
(1.6)
(3.2)
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$ (5,960.8)
$ 178.4 
$ (5,927.5)
$ 247.4 
Statements Of Condensed Consolidated Financial Position (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
CURRENT ASSETS
 
 
Cash and cash equivalents
$ 244.0 
$ 335.5 
Accounts receivable, net
166.2 
270.0 
Inventories
516.7 
391.4 
Supplies and other inventories
202.2 
216.0 
Income tax receivable
25.4 
74.1 
Other current assets
206.1 
273.0 
TOTAL CURRENT ASSETS
1,360.6 
1,560.0 
PROPERTY, PLANT AND EQUIPMENT, NET
3,207.9 
11,153.4 
OTHER ASSETS
242.7 
408.5 
TOTAL ASSETS
4,811.2 
13,121.9 
CURRENT LIABILITIES
 
 
Accounts payable
295.8 
345.5 
Accrued expenses
325.5 
392.7 
Short-term debt and current portion of long-term debt
234.7 
20.9 
Other current liabilities
262.3 
326.4 
TOTAL CURRENT LIABILITIES
1,118.3 
1,085.5 
PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES
230.0 
294.0 
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
305.4 
309.7 
DEFERRED INCOME TAXES
26.0 
1,146.5 
LONG-TERM DEBT
3,012.5 
3,022.6 
OTHER LIABILITIES
296.3 
379.3 
TOTAL LIABILITIES
4,988.5 
6,237.6 
COMMITMENTS AND CONTINGENCIES (SEE NOTE 18)
   
   
CLIFFS SHAREHOLDERS' EQUITY
 
 
Preferred Stock - no par value, Class A - 3,000,000 shares authorized, 7 % Series A Mandatory Convertible, Class A, no par value and $1,000 per share liquidation preference (See Note 14), Issued and Outstanding - 731,233 shares (2013 - 731,250)
731.3 
731.3 
Common Shares - par value $0.125 per share, Authorized - 400,000,000 shares (2013- 400,000,000 shares); Issued - 159,546,224 shares (2013 - 159,546,224 shares); Outstanding - 153,162,348 shares (2013 - 153,126,291 shares)
19.8 
19.8 
Capital in excess of par value of shares
2,312.2 
2,329.5 
Retained earnings (deficit)
(2,639.6)
3,407.3 
Cost of 6,383,876 common shares in treasury (2013 - 6,419,933 shares)
(291.6)
(305.5)
Accumulated other comprehensive loss
(101.4)
(112.9)
TOTAL CLIFFS SHAREHOLDERS' EQUITY
30.7 
6,069.5 
NONCONTROLLING INTEREST
(208.0)
814.8 
TOTAL EQUITY
(177.3)
6,884.3 
TOTAL LIABILITIES AND EQUITY
$ 4,811.2 
$ 13,121.9 
Statements Of Condensed Consolidated Financial Position (Parenthetical) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Class of Stock [Line Items]
 
 
Preferred stock, par value
$ 0 
$ 0.000 
Common shares, par value
$ 0.125 
$ 0.125 
Common shares, authorized (in shares)
400,000,000 
400,000,000 
Common shares, issued (in shares)
159,546,224 
159,546,224 
Common shares, outstanding
153,162,348 
153,126,291 
Common shares in treasury
6,383,876 
6,419,933 
Preferred Class A [Member]
 
 
Class of Stock [Line Items]
 
 
Preferred Stock, Liquidation Preference Per Share
$ 1,000 
$ 1,000 
Cumulative Mandatory Convertible
7.00% 
7.00% 
Preferred stock, shares authorized (in shares)
3,000,000 
3,000,000 
Preferred Shares, Issued and Outstanding, Shares
731,223 
731,250 
Preferred Class B [Member]
 
 
Class of Stock [Line Items]
 
 
Preferred stock, shares authorized (in shares)
4,000,000 
4,000,000 
Statements Of Condensed Consolidated Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
OPERATING ACTIVITIES
 
 
NET INCOME (LOSS)
$ (6,943.4)
$ 376.0 
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
 
 
Depreciation, depletion and amortization
430.4 
438.0 
Impairment of goodwill and other long-lived assets
7,773.1 
Deferred income taxes
(1,080.7)
(39.5)
Other
(22.6)
3.8 
Changes in operating assets and liabilities:
 
 
Receivables and other assets
98.9 
36.2 
Product inventories
(129.2)
(10.8)
Payables and accrued expenses
(22.5)
(117.8)
Net cash provided by operating activities
104.0 
685.9 
INVESTING ACTIVITIES
 
 
Purchase of property, plant and equipment
(233.2)
(742.2)
Other investing activities
25.3 
7.8 
Net cash used by investing activities
(207.9)
(734.4)
FINANCING ACTIVITIES
 
 
Net proceeds from issuance of Series A, Mandatory Convertible Preferred Stock, Class A
709.4 
Net proceeds from issuance of common shares
285.3 
Repayment of term loan
(847.1)
Borrowings under credit facilities
918.5 
567.0 
Repayment under credit facilities
(705.1)
(512.0)
Common stock dividends
(69.5)
(68.8)
Preferred stock dividends
(38.4)
(23.0)
Other financing activities
(88.1)
51.2 
Net cash provided by financing activities
17.4 
162.0 
EFFECT OF EXCHANGE RATE CHANGES ON CASH
(5.0)
(9.9)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(91.5)
103.6 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
335.5 
195.2 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$ 244.0 
$ 298.8 
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
BUSINESS SUMMARY AND SIGNIFICANT ACCOUNTING POLICIES
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with SEC rules and regulations and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments) necessary to present fairly, the financial position, results of operations, comprehensive income and cash flows for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its estimates on various assumptions and historical experience, which are believed to be reasonable; however, due to the inherent nature of estimates, actual results may differ significantly due to changed conditions or assumptions. The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of results to be expected for the year ending December 31, 2014 or any other future period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2013.
Basis of Consolidation
The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly-owned and majority-owned subsidiaries, including the following operations:
Name
 
Location
 
Ownership Interest
 
Operation
Northshore
 
Minnesota
 
100.0%
 
Iron Ore
United Taconite
 
Minnesota
 
100.0%
 
Iron Ore
Wabush
 
Newfoundland and Labrador/ Quebec, Canada
 
100.0%
 
Iron Ore
Bloom Lake
 
Quebec, Canada
 
82.8%
 
Iron Ore
Tilden
 
Michigan
 
85.0%
 
Iron Ore
Empire
 
Michigan
 
79.0%
 
Iron Ore
Koolyanobbing
 
Western Australia
 
100.0%
 
Iron Ore
Pinnacle
 
West Virginia
 
100.0%
 
Coal
Oak Grove
 
Alabama
 
100.0%
 
Coal
CLCC
 
West Virginia
 
100.0%
 
Coal

Intercompany transactions and balances are eliminated upon consolidation.
Also included in our consolidated results are Cliffs Chromite Ontario Inc. and Cliffs Chromite Far North Inc. Cliffs Chromite Ontario Inc. holds a 100 percent interest in each of the Black Label and Black Thor chromite deposits and, together with Cliffs Chromite Far North Inc., a 70 percent interest in the Big Daddy chromite deposit, all located in northern Ontario, Canada.
Equity Method Investments
Investments in unconsolidated ventures that we have the ability to exercise significant influence over, but not control, are accounted for under the equity method. The following table presents the detail of our investments in unconsolidated ventures and where those investments are classified in the Statements of Unaudited Condensed Consolidated Financial Position as of September 30, 2014 and December 31, 2013. Parentheses indicate a net liability.
 
 
 
 
 
 
 
 
(In Millions)
Investment
 
Classification
 
Accounting
Method
 
Interest
Percentage
 
September 30,
2014
 
December 31, 2013
Hibbing
 
Other non-current assets1
 
Equity Method
 
23%
 
$
8.1

 
$
(3.9
)
Other
 
Other non-current assets
 
Equity Method
 
Various
 
24.4

 
34.7

 
 
 
 
 
 
 
 
$
32.5

 
$
30.8

                                         
1 At December 31, 2013, the classification for Hibbing was Other liabilities.
Significant Accounting Policies
A detailed description of our significant accounting policies can be found in the audited financial statements for the fiscal year ended December 31, 2013 included in our Annual Report on Form 10-K filed with the SEC. The significant accounting policies requiring updates have been included within the disclosures below.
Foreign Currency
Our financial statements are prepared with the U.S. dollar as the reporting currency. The functional currency of the Company’s Australian subsidiaries is the Australian dollar. The functional currency of all other international subsidiaries is the U.S. dollar. The financial statements of international subsidiaries are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and a weighted average exchange rate for each period for revenues, expenses, gains and losses. Where the local currency is the functional currency, translation adjustments are recorded as Accumulated other comprehensive loss. Income taxes generally are not provided for foreign currency translation adjustments. To the extent that monetary assets and liabilities, inclusive of intercompany notes, are recorded in a currency other than the functional currency, these amounts are remeasured each reporting period, with the resulting gain or loss being recorded in the Statements of Unaudited Condensed Consolidated Operations. Transaction gains and losses resulting from remeasurement of short-term intercompany loans are included in Miscellaneous - net in our Statements of Unaudited Condensed Consolidated Operations. For the three and nine months ended September 30, 2014, net gains of $26.4 million and $8.4 million, respectively, related to the impact of transaction gains and losses resulting from remeasurement. Of these transaction gains and losses, for the three months ended September 30, 2014, gains of $17.7 million and $9.6 million, respectively, and for the nine months ended September 30, 2014 gains of $4.7 million and $4.5 million, respectively, resulted from remeasurement of short-term intercompany loans and cash and cash equivalents. For the three and nine months ended September 30, 2013, a net loss of $14.1 million and a net gain of $36.5 million, respectively, related to the impact of transaction gains and losses resulting from remeasurement. Of these transaction gains and losses, for the three months ended September 30, 2013 losses of $4.5 million and $4.3 million, respectively, and for the nine months ended September 30, 2013 gains of $23.8 million and $7.4 million, respectively, resulted from remeasurement of short-term intercompany loans and cash and cash equivalents.
Recent Accounting Pronouncements
Issued and Not Effective
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern. ASU 2014-15 will explicitly require management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Specifically, ASU 2014-15 provides a definition of the term "substantial doubt" and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans and requires an express statement and other disclosures when substantial doubt is not alleviated. The new standard will be effective for all entities in the first annual period ending after December 15, 2016 and allows for either a full retrospective or modified retrospective transition method. Earlier adoption is permitted. We are currently evaluating the impact the adoption of the guidance will have on the Statements of Unaudited Condensed Consolidated Financial Position, Statements of Unaudited Condensed Consolidated Operations or Statements of Unaudited Condensed Consolidated Cash Flows
In June 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers.  The new revenue guidance broadly replaces the revenue guidance provided throughout the Codification.  The core principle of the revenue guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  To achieve that core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation.  The new revenue guidance also requires the capitalization of certain contract acquisition costs.  Reporting entities must provide new disclosures providing qualitative and quantitative information on the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.  New disclosures also include qualitative and quantitative information on significant judgments, changes in judgments, and contract acquisition assets.  The update is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016 and may be adopted either retrospectively or retrospectively with the cumulative effect.  Earlier adoption is not permitted. We are still evaluating the impact of the updated guidance on the Statements of Unaudited Condensed Consolidated Financial Position, Statements of Unaudited Condensed Consolidated Operations or Statements of Unaudited Condensed Consolidated Cash Flows.
SEGMENT REPORTING
SEGMENT REPORTING
NOTE 2 - SEGMENT REPORTING
Our Company’s primary operations are organized and managed according to product category and geographic location: U.S. Iron Ore, Eastern Canadian Iron Ore, Asia Pacific Iron Ore, North American Coal, Ferroalloys and our Global Exploration Group. The U.S. Iron Ore segment is comprised of our interests in five U.S. mines that provide iron ore to the integrated steel industry. The Eastern Canadian Iron Ore segment is comprised of two Eastern Canadian mines that primarily provide iron ore to the seaborne market for Asian steel producers. The Asia Pacific Iron Ore segment is located in Western Australia and provides iron ore to the seaborne market for Asian steel producers. The North American Coal segment is comprised of our four metallurgical coal mines and one thermal coal mine that provide metallurgical coal primarily to the integrated steel industry and thermal coal primarily to the energy industry. There were no intersegment revenues in the first nine months of 2014 or 2013.
The Ferroalloys operating segment is comprised of our interests in chromite deposits held in northern Ontario, Canada and the Global Exploration Group is focused on early involvement in exploration activities to identify new projects for future development or projects that add significant value to existing operations. The Ferroalloys and Global Exploration Group operating segments do not meet reportable segment disclosure requirements and, therefore, are not reported separately. In alignment with our capital allocation strategy, we anticipate decreased levels of exploration spending in our Global Exploration Group and Ferroalloys operation segments throughout 2014 and beyond.
We have historically evaluated segment performance based on sales margin, defined as revenues less cost of goods sold, and operating expenses identifiable to each segment. Additionally, beginning in the third quarter of 2014, concurrent with the change in control on July 29, 2014, management began to evaluate segment performance based on EBITDA, defined as Net Income (Loss) before interest, income taxes, depreciation, depletion and amortization and Adjusted EBITDA, defined as EBITDA excluding certain items such as impairment charges, impacts of permanently idled or closed facilities, foreign currency remeasurement, severance and other costs associated with the change in control, litigation judgments and intersegment corporate allocations of SG&A costs. Management uses and believes that investors benefit from referring to these measures in evaluating operating and financial results, as well as in planning, forecasting and analyzing future periods as these financial measures approximate the cash flows associated with the operational earnings. The following tables present a summary of our reportable segments for the three and nine months ended September 30, 2014 and 2013, including a reconciliation of segment sales margin to Income (Loss) from Continuing Operations Before Income Taxes and Equity Loss from Ventures and a reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA:
 
(In Millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Revenues from product sales and services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Iron Ore
$
767.4

 
59
%
 
$
782.4

 
51
%
 
$
1,643.3

 
49
%
 
$
1,894.2

 
45
%
Eastern Canadian Iron Ore
148.0

 
11
%
 
284.2

 
18
%
 
480.3

 
15
%
 
743.4

 
18
%
Asia Pacific Iron Ore
212.3

 
17
%
 
301.7

 
20
%
 
699.6

 
21
%
 
899.5

 
22
%
North American Coal
170.5

 
13
%
 
178.3

 
11
%
 
515.8

 
15
%
 
638.5

 
15
%
Total revenues from product sales and services
$
1,298.2

 
100
%
 
$
1,546.6

 
100
%
 
$
3,339.0

 
100
%
 
$
4,175.6

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales margin:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Iron Ore
$
219.5

 
 
 
$
273.5

 
 
 
$
461.7

 
 
 
$
647.1

 
 
Eastern Canadian Iron Ore
(76.8
)
 
 
 
(22.0
)
 
 
 
(165.0
)
 
 
 
(52.3
)
 
 
Asia Pacific Iron Ore
9.1

 
 
 
99.0

 
 
 
111.4

 
 
 
255.3

 
 
North American Coal
(24.3
)
 
 
 
(1.8
)
 
 
 
(125.4
)
 
 
 
6.6

 
 
Other

 
 
 

 
 
 

 
 
 
(1.9
)
 
 
Sales margin
127.5

 
 
 
348.7

 
 
 
282.7

 
 
 
854.8

 
 
Other operating expense
(7,886.6
)
 
 
 
(124.7
)
 
 
 
(8,104.2
)
 
 
 
(200.5
)
 
 
Other expense
(40.3
)
 
 
 
(45.9
)
 
 
 
(124.4
)
 
 
 
(137.4
)
 
 
Income (loss) from continuing operations before income taxes and equity loss from ventures
$
(7,799.4
)
 
 
 
$
178.1

 
 
 
$
(7,945.9
)
 
 
 
$
516.9

 
 
 
(In Millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss)
$
(6,887.2
)
 
 
 
$
113.9

 
 
 
$
(6,943.4
)
 
 
 
$
376.0

 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
(47.4
)
 
 
 
(44.7
)
 
 
 
(134.9
)
 
 
 
(134.5
)
 
 
Income tax benefit (expense)
921.4

 
 
 
(65.7
)
 
 
 
1,012.3

 
 
 
(69.0
)
 
 
Depreciation, depletion and amortization
(144.0
)
 
 
 
(153.1
)
 
 
 
(430.4
)
 
 
 
(438.0
)
 
 
EBITDA
$
(7,617.2
)
 
 
 
$
377.4

 
 
 
$
(7,390.4
)
 
 
 
$
1,017.5

 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment of goodwill and other long-lived assets
$
(7,769.1
)
 
 
 
$

 
 
 
$
(7,773.1
)
 
 
 
$

 
 
Wabush related costs
(64.0
)
 
 
 
(13.0
)
 
 
 
(122.3
)
 
 
 
(2.3
)
 
 
Wabush sales margin
(20.0
)
 
 
 
(1.3
)
 
 
 
(47.5
)
 
 
 
(44.2
)
 
 
Foreign exchange remeasurement
26.4

 
 
 
(14.1
)
 
 
 
8.4

 
 
 
36.5

 
 
Proxy contest and change in control costs in SG&A
(21.9
)
 
 
 

 
 
 
(26.2
)
 
 
 

 
 
Litigation judgment

 
 
 
(9.6
)
 
 
 

 
 
 
(9.6
)
 
 
Severance in SG&A
(1.9
)
 
 
 
(8.1
)
 
 
 
(12.6
)
 
 
 
(8.1
)
 
 
Adjusted EBITDA
$
233.3

 
 
 
$
423.5

 
 
 
$
582.9

 
 
 
$
1,045.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Iron Ore
$
242.1

 
 
 
$
296.9

 
 
 
$
538.4

 
 
 
$
715.9

 
 
Eastern Canadian Iron Ore
(6,423.2
)
 
 
 
(43.8
)
 
 
 
(6,537.6
)
 
 
 
(9.6
)
 
 
Asia Pacific Iron Ore
(330.9
)
 
 
 
138.1

 
 
 
(148.7
)
 
 
 
367.6

 
 
North American Coal
(827.5
)
 
 
 
31.0

 
 
 
(875.6
)
 
 
 
85.4

 
 
Other
(277.7
)
 
 
 
(44.8
)
 
 
 
(366.9
)
 
 
 
(141.8
)
 
 
Total EBITDA
$
(7,617.2
)
 
 
 
$
377.4

 
 
 
$
(7,390.4
)
 
 
 
$
1,017.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Iron Ore
$
248.7

 
 
 
$
305.0

 
 
 
$
556.1

 
 
 
$
738.0

 
 
Eastern Canadian Iron Ore
(33.2
)
 
 
 
(8.6
)
 
 
 
(49.3
)
 
 
 
50.0

 
 
Asia Pacific Iron Ore
46.1

 
 
 
140.9

 
 
 
234.5

 
 
 
375.5

 
 
North American Coal
6.1

 
 
 
37.4

 
 
 
(32.2
)
 
 
 
103.2

 
 
Other
(34.4
)
 
 
 
(51.2
)
 
 
 
(126.2
)
 
 
 
(221.5
)
 
 
Total Adjusted EBITDA
$
233.3

 
 
 
$
423.5

 
 
 
$
582.9

 
 
 
$
1,045.2

 
 
 
(In Millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Depreciation, depletion and amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Iron Ore
$
25.9

 
 
 
$
27.3

 
 
 
$
81.2

 
 
 
$
82.3

 
 
Eastern Canadian Iron Ore
43.6

 
 
 
46.8

 
 
 
127.2

 
 
 
130.3

 
 
Asia Pacific Iron Ore
42.2

 
 
 
38.0

 
 
 
123.6

 
 
 
116.1

 
 
North American Coal
30.3

 
 
 
38.8

 
 
 
92.2

 
 
 
99.7

 
 
Other
2.0

 
 
 
2.2

 
 
 
6.2

 
 
 
9.6

 
 
Total depreciation, depletion and amortization
$
144.0

 
 
 
$
153.1

 
 
 
$
430.4

 
 
 
$
438.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital additions1:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Iron Ore
$
8.5

 
 
 
$
15.2

 
 
 
$
37.4

 
 
 
$
39.1

 
 
Eastern Canadian Iron Ore
37.9

 
 
 
181.5

 
 
 
112.2

 
 
 
535.3

 
 
Asia Pacific Iron Ore
3.1

 
 
 
10.4

 
 
 
8.3

 
 
 
8.6

 
 
North American Coal
4.6

 
 
 
2.0

 
 
 
24.8

 
 
 
37.2

 
 
Other
0.5

 
 
 
2.2

 
 
 
3.3

 
 
 
4.9

 
 
Total capital additions
$
54.6

 
 
 
$
211.3

 
 
 
$
186.0

 
 
 
$
625.1

 
 
                                         
1    Includes capital lease additions and non-cash accruals. Refer to NOTE 19 - CASH FLOW INFORMATION.
A summary of assets by segment is as follows:
 
(In Millions)
 
September 30,
2014
 
December 31, 2013
Assets:
 
 
 
U.S. Iron Ore
$
1,715.8

 
$
1,671.6

Eastern Canadian Iron Ore
1,113.2

 
7,915.5

Asia Pacific Iron Ore
577.2

 
1,078.4

North American Coal
904.0

 
1,841.8

Other
217.0

 
455.6

Total segment assets
4,527.2

 
12,962.9

Corporate
284.0

 
159.0

Total assets
$
4,811.2

 
$
13,121.9

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
NOTE 3 - DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The following table presents the fair value of our derivative instruments and the classification of each in the Statements of Unaudited Condensed Consolidated Financial Position as of September 30, 2014 and December 31, 2013:
 
(In Millions)
 
Derivative Assets
 
Derivative Liabilities
 
September 30, 2014
 
December 31, 2013
 
September 30, 2014
 
December 31, 2013
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
 
$

 
 
 
$

 
 
 
$

 
Other current liabilities
 
$
2.1

Foreign Exchange Contracts
 
 

 
Other current assets
 
0.3

 
Other current liabilities
 
17.4

 
Other current liabilities
 
25.8

Total derivatives designated as hedging instruments under ASC 815
 
 
$

 
 
 
$
0.3

 
 
 
$
17.4

 
 
 
$
27.9

Derivatives not designated as hedging instruments under ASC 815:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Exchange Contracts
 
 
$

 
 
 
$

 
 
 
$

 
Other current liabilities
 
$
1.1

Customer Supply Agreement
Other current assets
 
54.5

 
Other current assets
 
55.8

 
 
 

 
 
 

Provisional Pricing Arrangements
 
 

 
Other current assets
 
3.1

 
Other current liabilities
 
23.3

 
Other current liabilities
 
10.3

Total derivatives not designated as hedging instruments under ASC 815
 
 
$
54.5

 
 
 
$
58.9

 
 
 
$
23.3

 
 
 
$
11.4

Total derivatives
 
 
$
54.5

 
 
 
$
59.2

 
 
 
$
40.7

 
 
 
$
39.3


Derivatives Designated as Hedging Instruments
Cash Flow Hedges
Australian and Canadian Dollar Foreign Exchange Contracts
We are subject to changes in foreign currency exchange rates as a result of our operations in Australia and Canada. With respect to Australia, foreign exchange risk arises from our exposure to fluctuations in foreign currency exchange rates because the functional currency of our Asia Pacific operations is the Australian dollar. Our Asia Pacific operations receive funds in U.S. currency for their iron ore sales. The functional currency of our Canadian operations is the U.S. dollar; however, the production costs for these operations primarily are incurred in the Canadian dollar.
We use foreign currency exchange contracts to hedge our foreign currency exposure for a portion of our U.S. dollar sales receipts in our Australian functional currency entities and our entities with Canadian dollar operating costs. For our Australian operations, U.S. dollars are converted to Australian dollars at the currency exchange rate in effect during the period the transaction occurred. For our Canadian operations, U.S. dollars are converted to Canadian dollars at the exchange rate in effect for the period the operating costs are incurred. The primary objective for the use of these instruments is to reduce exposure to changes in currency exchange rates and to protect against undue adverse movement in these exchange rates. These instruments qualify for hedge accounting treatment and are tested for effectiveness at inception and at least once each reporting period. If and when any of our hedge contracts are determined not to be highly effective as hedges, the underlying hedged transaction is no longer likely to occur, or the derivative is terminated, hedge accounting is discontinued.
As of September 30, 2014, we had outstanding Australian and Canadian foreign currency exchange contracts with notional amounts of $285.0 million and $257.4 million, respectively, in the form of forward contracts with varying maturity dates ranging from October 2014 to September 2015. This compares with outstanding Australian and Canadian foreign currency exchange contracts with a notional amount of $323.0 million and $285.9 million, respectively, as of December 31, 2013.
Changes in fair value of highly effective hedges are recorded as a component of Accumulated other comprehensive loss in the Statements of Unaudited Condensed Consolidated Financial Position. Any ineffectiveness is recognized immediately in income and, as of September 30, 2014 and 2013, there was no material ineffectiveness recorded for foreign exchange contracts that were classified as cash flow hedges. However, certain Canadian hedge contracts were deemed ineffective during the fourth quarter of 2013 and no longer qualified for hedge accounting treatment. All of these de-designated hedges settled and were no longer outstanding by June 30, 2014. The de-designated hedges are discussed within the Derivatives Not Designated as Hedging Instruments section of this footnote. Amounts recorded as a component of Accumulated other comprehensive loss are reclassified into earnings in the same period the forecasted transactions affect earnings. Of the amounts remaining in Accumulated other comprehensive loss related to Australian hedge contracts and Canadian hedge contracts, we estimate that losses of $7.4 million and losses of $5.0 million (net of tax), respectively, will be reclassified into earnings within the next 12 months.
The following summarizes the effect of our derivatives designated as cash flow hedging instruments, net of tax in Accumulated other comprehensive loss in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2014 and 2013:
 
(In Millions)
Derivatives in Cash Flow Hedging Relationships
Amount of Gain (Loss)
Recognized in OCI on Derivatives
 
Location of Gain (Loss)
Reclassified
from Accumulated OCI into Earnings
 
Amount of Gain (Loss)
Reclassified
from Accumulated
OCI into Earnings
(Effective Portion)
 
(Effective Portion)
 
(Effective Portion)
 
Three Months Ended
September 30,
 
 
 
Three Months Ended
September 30,
 
2014
 
2013
 
 
 
2014
 
2013
Australian Dollar Foreign
Exchange Contracts
(hedge designation)
$
(12.6
)
 
$
2.9

 
Product revenues
 
$
1.6

 
$
(8.9
)
Canadian Dollar Foreign Exchange Contracts (hedge designation)
(7.4
)
 
9.2

 
Cost of goods sold and operating expenses
 
(1.0
)
 
(7.3
)
Canadian Dollar Foreign Exchange Contracts
(prior to de-designation)

 

 
Cost of goods sold and operating expenses
 

 

Total
$
(20.0
)
 
$
12.1

 
 
 
$
0.6

 
$
(16.2
)
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
September 30,
 
 
 
Nine Months Ended
September 30,
 
2014
 
2013
 
 
 
2014
 
2013
Australian Dollar Foreign
Exchange Contracts
(hedge designation)
$
(3.4
)
 
$
(25.2
)
 
Product revenues
 
$
(11.2
)
 
$
(4.5
)
Canadian Dollar Foreign Exchange Contracts
    (hedge designation)
(9.2
)
 
(9.9
)
 
Cost of goods sold and operating expenses
 
(7.1
)
 
(7.5
)
Canadian Dollar Foreign Exchange Contracts
(prior to de-designation)

 

 
Cost of goods sold and operating expenses
 
(0.5
)
 

 
$
(12.6
)
 
$
(35.1
)
 
 
 
$
(18.8
)
 
$
(12.0
)

Fair Value Hedges
Interest Rate Hedges
Our fixed-to-variable interest rate swap derivative instruments, with a notional amount of $250.0 million, were de-designated and settled during August 2014. Prior to settlement, the derivatives were designated and qualified as fair value hedges. The objective of the hedges was to offset changes in the fair value of our debt instruments associated with fluctuations in the benchmark LIBOR interest rate as part of our risk management strategy.
Prior to de-designation and settlement, when the interest rate swap derivative instruments were designated and qualified as fair-value hedges, the gain or loss on the hedge instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk were recognized in net income. We included the gain or loss on the derivative instrument and the offsetting loss or gain on the hedged item in Other non-operating income (expense). The net gains recognized in Other non-operating income (expense) for the three and nine months ended September 30, 2014 were $0.1 million and $0.3 million, respectively.
For the period ended September 30, 2013, the fixed-to-variable interest rate swap derivative instruments were designated and qualified as fair-value hedges. The gain or loss on the hedge instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk was recognized in net income. We included the gain or loss on the derivative instrument and the offsetting loss or gain on the hedged item in Other non-operating income (expense). The net gain recognized in Other non-operating income (expense) for both the three and nine months ended September 30, 2013 was $0.1 million.
Derivatives Not Designated as Hedging Instruments
Foreign Exchange Contracts
During the fourth quarter of 2013, we discontinued hedge accounting for Canadian foreign currency exchange contracts for all outstanding contracts associated with the Wabush operation and the Ferroalloys operating segment as projected future cash flows were no longer considered probable, but we continued to hold these instruments as economic hedges to manage currency risk. Subsequent to de-designation, no further foreign currency exchange contracts were entered into for the Wabush operation or the Ferroalloys operating segment. As of September 30, 2014, there were no outstanding de-designated foreign currency exchange rate contracts as all remaining de-designated foreign exchange contracts matured during the second quarter of 2014. This compares with outstanding de-designated foreign currency exchange contracts with a notional amount of $74.8 million as of December 31, 2013.
As a result of discontinued hedge accounting, the instruments were prospectively adjusted to fair value each reporting period through Cost of goods sold and operating expenses on the Statements of Unaudited Condensed Consolidated Operations. For the nine months ended September 30, 2014, the change in fair value of our de-designated foreign currency exchange contracts resulted in net losses of $3.3 million. For the three months ended September 30, 2014, there were no changes in fair value of our de-designated foreign currency exchange contracts as all the remaining contracts had matured during the second quarter of 2014. The amounts that were previously recorded as a component of Accumulated other comprehensive loss prior to de-designation were reclassified to earnings and a corresponding realized gain or loss was recognized when the forecasted cash flow occurred. For the nine months ended September 30, 2014, we reclassified losses of $0.5 million from Accumulated other comprehensive loss related to contracts that matured during the period, and recorded the amounts as Cost of goods sold and operating expenses on the Statements of Unaudited Condensed Consolidated Operations. For the three months ended September 30, 2014 there were no amounts reclassified from Accumulated other comprehensive loss related to contracts that matured during the period as all the remaining contracts matured during the second quarter of 2014 and as of the period ended June 30, 2014, no gains or losses remained in Accumulated other comprehensive loss related to the effective cash flow hedge contracts prior to de-designation.
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. The base price is the primary component of the purchase price for each contract. The indexed price adjustment factors are integral to the iron ore supply contracts and vary based on the agreement, but typically include adjustments based upon changes in the Platts 62 percent Fe fines spot price and/or international pellet prices and changes in specified Producer Price Indices, including those for all commodities, industrial commodities, energy and steel. The pricing adjustments generally operate in the same manner, with each factor typically comprising a portion of the price adjustment, although the weighting of each factor varies based upon the specific terms of each agreement. In most cases, these adjustment factors have not been finalized at the time our product is sold. In these cases, we historically have estimated the adjustment factors at each reporting period based upon the best third-party information available. The estimates are then adjusted to actual when the information has been finalized. The price adjustment factors have been evaluated to determine if they contain embedded derivatives. The price adjustment factors share the same economic characteristics and risks as the host contract and are integral to the host contract as inflation adjustments; accordingly, they have not been separately valued as derivative instruments.
A certain supply agreement with one U.S. Iron Ore customer provides for supplemental revenue or refunds to the customer based on the customer’s average annual steel pricing at the time the product is consumed in the customer’s blast furnace. The supplemental pricing is characterized as a freestanding derivative and is required to be accounted for separately once the product is shipped. The derivative instrument, which is finalized based on a future price, is adjusted to fair value as a revenue adjustment each reporting period until the pellets are consumed and the amounts are settled.
We recognized $62.6 million and $124.6 million as Product revenues in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2014, respectively, related to the supplemental payments. This compares with Product revenues of $53.9 million and $113.4 million for the comparable respective periods in 2013. Derivative assets, representing the fair value of the pricing factors, were $54.5 million and $55.8 million in the September 30, 2014 and December 31, 2013 Statements of Unaudited Condensed Consolidated Financial Position, respectively.
Provisional Pricing Arrangements
Certain of our U.S. Iron Ore, Eastern Canadian Iron Ore and Asia Pacific Iron Ore customer supply agreements specify provisional price calculations, where the pricing mechanisms generally are based on market pricing, with the final revenue rate to be based on market inputs at a specified period in time in the future, per the terms of the supply agreements. The difference between the provisionally agreed-upon price and the estimated final revenue rate is characterized as a freestanding derivative and is required to be accounted for separately once the provisional revenue has been recognized. The derivative instrument is adjusted to fair value through Product revenues each reporting period based upon current market data and forward-looking estimates provided by management until the final revenue rate is determined. At September 30, 2014 we recorded no Other current assets related to our estimate of the final revenue rate with any of our customers. At December 31, 2013, we recorded $3.1 million as Other current assets in the Statements of Unaudited Condensed Consolidated Financial Position related to our estimate of the final revenue rate with our U.S. Iron Ore, Eastern Canadian Iron Ore and Asia Pacific Iron Ore customers. At September 30, 2014 and December 31, 2013, we recorded $23.3 million and $10.3 million, respectively, as Other current liabilities in the Statements of Unaudited Condensed Consolidated Financial Position related to our estimate of the final revenue rate with our U.S. Iron Ore, Eastern Canadian Iron Ore and Asia Pacific Iron Ore customers. These amounts represent the difference between the provisional price agreed upon with our customers based on the supply agreement terms and our estimate of the final revenue rate based on the price calculations established in the supply agreements. As a result, we recognized a net $3.1 million decrease and a net $23.3 million decrease in Product revenues in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2014, respectively, related to these arrangements. This compares with a net $24.3 million increase and a net $6.8 million decrease in Product revenues for the comparable respective periods in 2013.
The following summarizes the effect of our derivatives that are not designated as hedging instruments in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2014 and 2013:
(In Millions)
Derivatives Not Designated as Hedging Instruments
Location of Gain (Loss) Recognized in
Income on Derivative
Amount of Gain (Loss) Recognized in Income on Derivative
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2014
 
2013
 
2014
 
2013
Foreign Exchange Contracts
Cost of goods sold and operating expenses
$

 
$

 
$
(3.3
)
 
$

Commodity Contracts
Other non-operating income (expense)

 
(2.7
)
 

 
(2.7
)
Customer Supply Agreement
Product revenues
62.6

 
53.9

 
124.6

 
113.4

Provisional Pricing Arrangements
Product revenues
(3.1
)
 
24.3

 
(23.3
)
 
(6.8
)
 
 
$
59.5

 
$
75.5

 
$
98.0

 
$
103.9


Refer to NOTE 7 - FAIR VALUE MEASUREMENTS for additional information.
INVENTORIES
Inventories
NOTE 4 - INVENTORIES
The following table presents the detail of our Inventories in the Statements of Unaudited Condensed Consolidated Financial Position as of September 30, 2014 and December 31, 2013:
 
(In Millions)
 
September 30, 2014
 
December 31, 2013
Segment
Finished Goods
 
Work-in Process
 
Total Inventory
 
Finished Goods
 
Work-in
Process
 
Total
Inventory
U.S. Iron Ore
$
279.5

 
$
23.5

 
$
303.0

 
$
92.1

 
$
13.0

 
$
105.1

Eastern Canadian Iron Ore
18.2

 
15.8

 
34.0

 
65.3

 
48.1

 
113.4

Asia Pacific Iron Ore
25.8

 
85.1

 
110.9

 
39.7

 
50.6

 
90.3

North American Coal
52.7

 
16.1

 
68.8

 
59.4

 
23.2

 
82.6

Total
$
376.2

 
$
140.5

 
$
516.7

 
$
256.5

 
$
134.9

 
$
391.4


We recorded lower-of-cost-or-market inventory charges of $5.0 million and $42.1 million in Cost of goods sold and operating expenses in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2014, respectively, for our North American Coal operations. The charges at North American Coal were a result of market pricing declines during the periods. For the three and nine months ended September 30, 2013, we recorded lower-of-cost-or-market inventory charges of $2.6 million and $5.3 million, respectively, for our North American Coal operations. These charges were a result of market pricing declines and costs associated with operational and geological issues.
We recorded lower-of-cost-or-market inventory charges of $2.6 million and $18.6 million in Cost of goods sold and operating expenses in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2014, respectively, for our Eastern Canadian Iron Ore operations. The $2.6 million charge in the third quarter of 2014 is a result of declines in Platts 62 percent Fe fines spot pricing which resulted in a $1.9 million charge for Bloom Lake and is related to a $0.7 million adjustment of the remaining Wabush mine inventory to estimated net realizable value. The charges in the first half of 2014 at Eastern Canadian Iron Ore were a result of declines in Platts 62 percent Fe fines spot pricing and higher inventory costs at both Bloom Lake and Wabush.  Bloom Lake’s higher inventory costs were driven by the timing of maintenance activities and mine development, whereas Wabush’s higher inventory costs were driven by unfavorable production performance up to the idling of the Scully mine operation and adjusting the inventory to estimated net realizable value.
We recorded a lower-of-cost-or-market inventory charge during the third quarter of 2013 of $5.9 million relating to concentrate inventory primarily driven by extended maintenance shutdowns that resulted in higher costs and reduced fixed-cost leverage. We recorded these charges in Cost of goods sold and operating expenses in the Statements of Unaudited Condensed Consolidated Operations for our Eastern Canadian Iron Ore operations. For the nine months ended September 30, 2013, the lower-of-cost-or-market inventory charge recorded was $10.6 million concentrate inventory. During the first half of 2013, the Wabush concentrate inventory charge was caused by higher costs as a result of transitioning into concentrate-only production and the forest fire that temporarily idled the mine in June.
Additionally, as a result of the idling of our Wabush pellet plant during the second quarter of 2013, we recorded a lower-of-cost-or-market inventory charge during the second quarter of 2013 of $11.1 million relating to Wabush pellets that were contractually committed tons and we recorded an unsaleable inventory impairment charge relating to Wabush pellets of $10.6 million as a result of our idling of the Wabush pellet plant during the second quarter of 2013. All of these charges recorded during the second quarter of 2013 were included in Cost of goods sold and operating expenses in the Statements of Unaudited Condensed Consolidated Operations for the nine months September 30, 2013 for our Eastern Canadian Iron Ore operations.
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT
NOTE 5 - PROPERTY, PLANT AND EQUIPMENT
The following table indicates the value of each of the major classes of our consolidated depreciable assets as of September 30, 2014 and December 31, 2013:
 
(In Millions)
 
September 30,
2014
 
December 31, 2013
Land rights and mineral rights
$
1,947.6

 
$
7,819.6

Office and information technology
80.7

 
125.7

Buildings
88.9

 
255.2

Mining equipment
1,399.5

 
1,819.3

Processing equipment
361.9

 
2,148.6

Electric power facilities
57.4

 
114.3

Port facilities
27.6

 
99.4

Interest capitalized during construction
18.8

 
23.8

Land improvements
32.5

 
69.3

Other
65.5

 
104.4

Construction in-progress
94.1

 
991.3

 
4,174.5

 
13,570.9

Accumulated depreciation and depletion
(966.6
)
 
(2,417.5
)
 
$
3,207.9

 
$
11,153.4


We recorded depreciation and depletion expense of $141.3 million and $422.1 million in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2014, respectively. This compares with depreciation and depletion expense of $148.3 million and $423.1 million for the three and nine months ended September 30, 2013, respectively.
At September 30, 2014, there was no accumulated amount of capitalized interest included within construction in-progress. At December 31, 2013, $31.4 million of capitalized interest was included within construction in-progress, of which $17.4 million was capitalized during 2013.
At September 30, 2014, we determined that indicators of impairment with respect to certain of our long-lived assets and asset groups existed at September 30, 2014. Our asset groups generally consist of the assets and liabilities of one or more mines, preparation plants and associated reserves for which the lowest level of identifiable cash flows are largely independent of cash flows of other mines, preparation plants and associated reserves and resources. Refer to NOTE 7 - FAIR VALUE MEASUREMENTS for further discussion of the impairment indicators.
As a result of these assessments, we determined that the cash flows associated with our Eastern Canadian Iron Ore, Asia Pacific Iron Ore, North American Coal and Ferroalloys asset groups were not sufficient to support the recoverability of the carrying value of these productive assets. Accordingly, during the third quarter of 2014, an other long-lived asset impairment charge of $7,674.3 million was recorded as Impairment of goodwill and other long-lived assets in the Statements of Unaudited Condensed Consolidated Operations related to property, plant and equipment. The fair value estimates were calculated primarily using an income approach. Refer to NOTE 7 - FAIR VALUE MEASUREMENTS for further discussion of these impairments and related fair value estimates.
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES
NOTE 6 - GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES
Goodwill
The following table summarizes changes in the carrying amount of goodwill allocated by operating segment for the nine months ended September 30, 2014 and the year ended December 31, 2013:
 
(In Millions)
 
September 30, 2014
 
December 31, 2013
 
U.S. Iron Ore
 
Eastern Canadian Iron Ore
 
Asia Pacific
Iron Ore
 
North American Coal
 
Other
 
Total
 
U.S. Iron Ore
 
Eastern
Canadian Iron Ore
 
Asia Pacific Iron Ore
 
North American Coal
 
Other
 
Total
Beginning Balance
$
2.0

 
$

 
$
72.5

 
$

 
$

 
$
74.5

 
$
2.0

 
$

 
$
84.5

 
$

 
$
80.9

 
$
167.4

Arising in business combinations

 

 

 

 

 

 

 

 

 

 

 

Impairment

 

 
(73.5
)
 

 

 
(73.5
)
 

 

 

 

 
(80.9
)
 
(80.9
)
Impact of foreign currency translation

 

 
1.0

 

 

 
1.0

 

 

 
(12.0
)
 

 

 
(12.0
)
Ending Balance
$
2.0

 
$

 
$

 
$

 
$

 
$
2.0

 
$
2.0

 
$

 
$
72.5

 
$

 
$

 
$
74.5

Accumulated goodwill impairment loss
$

 
$
(1,000.0
)
 
(73.5
)
 
$
(27.8
)
 
$
(80.9
)
 
$
(1,182.2
)
 
$

 
$
(1,000.0
)
 
$

 
$
(27.8
)
 
$
(80.9
)
 
$
(1,108.7
)

During the third quarter of 2014, a goodwill impairment charge of $73.5 million was recorded for our Asia Pacific Iron Ore reporting units within our Asia Pacific Iron Ore operating segment. Refer to NOTE 7 - FAIR VALUE MEASUREMENTS for further discussion of the goodwill impairment.
Other Intangible Assets and Liabilities
The following table is a summary of intangible assets and liabilities as of September 30, 2014 and December 31, 2013:
 
 
 
(In Millions)
 
 
 
September 30, 2014
 
December 31, 2013
 
Classification
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Definite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Permits
Other non-current assets
 
$
91.6

 
$
(16.8
)
 
$
74.8

 
$
127.4

 
$
(35.9
)
 
$
91.5

Utility contracts
Other non-current assets
 
54.3

 
(53.9
)
 
0.4

 
54.7

 
(53.1
)
 
1.6

Leases
Other non-current assets
 
2.4

 
(0.2
)
 
2.2

 
2.4

 
(0.1
)
 
2.3

Total intangible assets
 
 
$
148.3

 
$
(70.9
)
 
$
77.4

 
$
184.5

 
$
(89.1
)
 
$
95.4

Below-market sales contracts
Other current liabilities
 
$
(23.0
)
 
$

 
$
(23.0
)
 
$
(23.0
)
 
$

 
$
(23.0
)
Below-market sales contracts
Other liabilities
 
(205.9
)
 
175.0

 
(30.9
)
 
(205.9
)
 
159.7

 
(46.2
)
Total below-market sales contracts
 
 
$
(228.9
)
 
$
175.0

 
$
(53.9
)
 
$
(228.9
)
 
$
159.7

 
$
(69.2
)

Amortization expense relating to intangible assets was $2.8 million and $8.3 million, respectively, for the three and nine months ended September 30, 2014 and is recognized in Cost of goods sold and operating expenses in the Statements of Unaudited Condensed Consolidated Operations. Amortization expense relating to intangible assets was $4.8 million and $14.1 million for the comparable respective periods in 2013. The estimated amortization expense relating to intangible assets for the remainder of this year and each of the five succeeding years is as follows:

(In Millions)

Amount
Year Ending December 31,

2014 (remaining three months)
$
1.4

2015
5.6

2016
5.3

2017
5.1

2018
5.3

2019
5.3

Total
$
28.0


The below-market sales contracts are classified as a liability and recognized over the term of the underlying contracts. The outstanding below-market sales contract has a remaining life of approximately three years and expires December 31, 2016. For the three and nine months ended September 30, 2014, we recognized $7.7 million and $15.4 million, respectively, in Product revenues related to below-market sales contracts. For the three and nine months ended September 30, 2013, we recognized $14.7 million and $31.3 million, respectively, in Product revenues related to below-market sales contracts. The following amounts are estimated to be recognized in Product revenues for the remainder of this year and each of the two succeeding fiscal years:
 
(In Millions)
 
Amount
Year Ending December 31,
 
2014 (remaining three months)
$
7.8

2015
23.0

2016
23.1

Total
$
53.9

FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS
NOTE 7 - FAIR VALUE MEASUREMENTS
The following represents the assets and liabilities of the Company measured at fair value at September 30, 2014 and December 31, 2013:
 
(In Millions)
 
September 30, 2014
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
$
120.0

 
$

 
$

 
$
120.0

Derivative assets

 

 
54.5

 
54.5

Available-for-sale marketable securities
6.1

 

 

 
6.1

Foreign exchange contracts

 

 

 

Total
$
126.1

 
$

 
$
54.5

 
$
180.6

Liabilities:

 

 

 

Derivative liabilities
$

 
$

 
$
23.3

 
$
23.3

Foreign exchange contracts

 
17.4

 

 
17.4

Total
$

 
$
17.4

 
$
23.3

 
$
40.7

 
(In Millions)
 
December 31, 2013
Description
Quoted Prices in Active
Markets for Identical
Assets/Liabilities (Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents
$
85.0

 
$

 
$

 
$
85.0

Derivative assets

 

 
58.9

 
58.9

Available-for-sale marketable securities
21.4

 

 

 
21.4

Foreign exchange contracts

 
0.3

 

 
0.3

Total
$
106.4

 
$
0.3

 
$
58.9

 
$
165.6

Liabilities:

 

 

 

Derivative liabilities
$

 
$
2.1

 
$
10.3

 
$
12.4

Foreign exchange contracts

 
26.9

 

 
26.9

Total
$

 
$
29.0

 
$
10.3

 
$
39.3

Financial assets classified in Level 1 at September 30, 2014 and December 31, 2013 include money market funds and available-for-sale marketable securities. The valuation of these instruments is based upon unadjusted quoted prices for identical assets in active markets.
The valuation of financial assets and liabilities classified in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable. Level 2 securities primarily include derivative financial instruments valued using financial models that use as their basis readily observable market parameters. At September 30, 2014 and December 31, 2013, such derivative financial instruments included our existing foreign currency exchange contracts and interest rate swaps. 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 September 30, 2014 and December 31, 2013 included a freestanding derivative instrument related to certain supply agreements with one of our U.S. Iron Ore customers. The agreements include provisions for supplemental revenue or refunds based on the customer’s annual steel pricing at the time the product is consumed in the customer’s blast furnaces. We account for this provision as a derivative instrument at the time of sale and adjust this provision to fair value as an adjustment to Product revenues each reporting period until the product is consumed and the amounts are settled. The fair value of the instrument is determined using a market approach based on an estimate of the annual realized price of hot-rolled steel at the steelmaker’s facilities, and takes into consideration current market conditions and nonperformance risk.
The Level 3 derivative assets and liabilities also consisted of derivatives related to certain provisional pricing arrangements with our U.S. Iron Ore, Eastern Canadian Iron Ore and Asia Pacific Iron Ore customers at September 30, 2014 and December 31, 2013. These provisional pricing arrangements specify provisional price calculations, where the pricing mechanisms generally are based on market pricing, with the final revenue rate to be based on market inputs at a specified point in time in the future, per the terms of the supply agreements. The difference between the provisionally agreed-upon price and the estimated final revenue rate is characterized as a derivative and is required to be accounted for separately once the revenue has been recognized. The derivative instrument is adjusted to fair value through Product revenues each reporting period based upon current market data and forward-looking estimates provided by management until the final revenue rate is determined.
The following table illustrates information about quantitative inputs and assumptions for the derivative assets and derivative liabilities categorized in Level 3 of the fair value hierarchy:
Qualitative/Quantitative Information About Level 3 Fair Value Measurements
 
 
($ in millions)
Fair Value at September 30, 2014
 
Balance Sheet Location
 
Valuation Technique
 
Unobservable Input
 
Range or Point Estimate
(Weighted Average)
 
Provisional Pricing Arrangements
 
$
23.3

 
Derivative liabilities
 
Market Approach
 
Management's
Estimate of 62% Fe
 
$78
Customer Supply Agreement
 
$
54.5

 
Derivative assets
 
Market Approach
 
Hot-Rolled Steel Estimate
 
$635 - $665 ($650)

The significant unobservable input used in the fair value measurement of the reporting entity’s provisional pricing arrangements is management’s estimate of 62 percent Fe fines spot price based upon current market data, including historical seasonality and forward-looking estimates determined by management. Significant increases or decreases in this input would result in a significantly higher or lower fair value measurement, respectively.
The significant unobservable input used in the fair value measurement of the reporting entity’s customer supply agreement is the future hot-rolled steel price that is estimated based on current market data, analysts' projections, projections provided by the customer and forward-looking estimates determined by management. Significant increases or decreases in this input would result in a significantly higher or lower fair value measurement, respectively.
We recognize any transfers between levels as of the beginning of the reporting period. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the three and nine months ended September 30, 2014 or 2013. The following tables represent a reconciliation of the changes in fair value of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2014 and 2013.
 
(In Millions)
 
Derivative Assets (Level 3)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Beginning balance
$
33.0

 
$
45.1

 
$
58.9

 
$
62.4

Total gains
 
 
 
 
 
 
 
Included in earnings
62.6

 
57.6

 
124.6

 
118.0

Settlements
(41.1
)
 
(36.0
)
 
(129.0
)
 
(113.7
)
Transfers into Level 3

 

 

 

Transfers out of Level 3

 

 

 

Ending balance - September 30
$
54.5

 
$
66.7

 
$
54.5

 
$
66.7

Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date
$
62.6

 
$
57.6

 
$
124.6

 
$
118.0


 
(In Millions)
 
Derivative Liabilities (Level 3)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Beginning balance
$
(20.2
)
 
$
(32.0
)
 
$
(10.3
)
 
$
(11.3
)
Total gains
 
 
 
 
 
 
 
Included in earnings
(3.1
)
 
20.6

 
(23.3
)
 
(11.4
)
Settlements

 

 
10.3

 
11.3

Transfers into Level 3

 

 

 

Transfers out of Level 3

 

 

 

Ending balance - September 30
$
(23.3
)
 
$
(11.4
)
 
$
(23.3
)
 
$
(11.4
)
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date
$
(3.1
)
 
$
20.6

 
$
(23.3
)
 
$
(11.4
)

Gains and losses included in earnings are reported in Product revenues in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2014 and 2013.
The carrying amount for certain financial instruments (e.g., Accounts receivable, net, Accounts payable and Accrued expenses) approximate fair value and, therefore, have been excluded from the table below. A summary of the carrying amount and fair value of other financial instruments at September 30, 2014 and December 31, 2013 were as follows:
 
 
 
(In Millions)
 
 
 
September 30, 2014
 
December 31, 2013
 
Classification
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Long-term debt:
 
 
 
 
 
 
 
 
 
Senior notes—$700 million
Level 2
 
$
699.5

 
$
539.6

 
$
699.4

 
$
718.2

Senior notes—$1.3 billion
Level 2
 
1,289.8

 
974.7

 
1,289.6

 
1,404.9

Senior notes—$400 million
Level 2
 
398.6

 
341.8

 
398.4

 
432.1

Senior notes—$500 million
Level 2
 
497.1

 
433.0

 
496.5

 
523.8

Revolving loan
Level 2
 

 

 

 

Equipment loan facilities
Level 2
 
124.6

 
124.6

 
140.8

 
140.8

Fair value adjustment to interest rate hedge
Level 2
 
2.9

 
2.9

 
(2.1
)
 
(2.1
)
Total long-term debt
 
 
$
3,012.5

 
$
2,416.6

 
$
3,022.6

 
$
3,217.7


The fair value of long-term debt was determined using quoted market prices or discounted cash flows based upon current borrowing rates, adjusted for performance risk inherent in recent market transactions. The revolving loan and equipment loan facilities are variable rate interest and approximate fair value. See NOTE 8 - DEBT AND CREDIT FACILITIES for further information.
Items Measured at Fair Value on a Non-Recurring Basis
The following tables present information about the impairment charges on both financial and nonfinancial assets that were measured on a fair value basis at September 30, 2014 and December 31, 2013. The tables also indicate the fair value hierarchy of the valuation techniques used to determine such fair value.
 
 
(In Millions)
 
 
September 30, 2014
Description
 
Quoted Prices in Active
Markets for Identical Assets/
Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
 
Total Losses
Assets:
 
 
 
 
 
 
 
 
 
 
Goodwill impairment -
Asia Pacific Iron Ore reporting unit
 
$

 
$

 
$

 
$

 
$
73.5

Other long-lived assets -
Property, plant and equipment
    and Mineral rights:
 
 
 
 
 
 
 
 
 
 
Asia Pacific Iron Ore reporting unit
 

 

 
343.4

 
343.4

 
291.9

North American Coal reporting unit
 
 
 
 
 
 
 
 
 
 
CLCC thermal asset group
 

 

 
62.6

 
62.6

 
195.5

Pinnacle asset group
 

 

 
30.7

 
30.7

 
394.5

Oak Grove asset group
 

 

 
58.2

 
58.2

 
237.8

Eastern Canadian Iron Ore reporting unit
 
 
 
 
 
 
 
 
 
 
Bloom Lake asset group
 

 

 
937.2

 
937.2

 
6,279.2

Wabush asset group
 

 

 
1.0

 
1.0

 
12.8

Ferroalloys reporting unit
 

 

 
12.2

 
12.2

 
259.5

Other reporting units
 

 

 

 

 
3.1

Other long-lived assets -
Intangibles and other long-term assets:
 
 
 
 
 
 
 
 
 
 
Asia Pacific Iron Ore reporting unit
 

 

 
11.9

 
11.9

 
10.1

Eastern Canadian Iron Ore reporting unit
 
 
 
 
 
 
 
 
 
 
Wabush asset group
 

 

 

 

 
15.2

Investment in ventures
impairment - Global Exploration
 

 

 

 

 
9.2

 
 
$

 
$

 
$
1,457.2

 
$
1,457.2

 
$
7,782.3

Financial Assets
During the third quarter of 2014, an impairment charge of $9.2 million to investment in ventures was recorded within our Global Exploration operating segment as a decision was made to abandon the investment during the period.
Non-Financial Assets
During the third quarter of 2014, we identified factors that indicate the carrying values of the asset groups in the chart above may not be recoverable. Primary factors include that estimates of long-term price forecasts were updated as part of management’s long-range planning process. Updated estimates of long-term prices for all products, specifically the Platts 62 percent Fe fines spot price, which particularly effects Eastern Canadian Iron Ore and Asia Pacific Iron Ore business segments because their contracts correlate heavily to world market spot pricing, and the benchmark price for premium low-volatile hard coking coal were lower than prior estimates. These estimates were updated based upon current market conditions, macro-economic factors influencing the balance of supply and demand for our products and expectations for future cost and capital expenditure requirements. Additional factors include a new CEO, Lourenco Goncalves, appointed by the Board of Directors in early August 2014 and subsequently identified as the CODM in accordance with ASC 280, Segment Reporting. The new CODM views Eastern Canadian Iron Ore, Asia Pacific Iron Ore, North American Coal and Ferroalloys as non-core assets and has communicated plans to evaluate the business units for a change in strategy including possible divestiture. These factors, among other considerations utilized in the individual impairment assessments, indicate that the carrying value of the respective asset groups in the chart above and Asia Pacific Iron Ore goodwill may not be recoverable.
During the third quarter of 2014, a goodwill impairment charge of $73.5 million was recorded for our Asia Pacific Iron Ore reporting units within our Asia Pacific Iron Ore operating segment. Based on our review of the fair value hierarchy, the inputs used in these fair value measurements were considered Level 3 inputs.
We also recorded impairment charges to property, plant and equipment, mineral rights, intangible assets and other long-term assets during the third quarter of 2014 related to our Wabush operation and Bloom Lake operation within our Eastern Canadian Iron Ore operating segment, our Asia Pacific Iron Ore operating segment and our CLCC thermal operation, Oak Grove operation and Pinnacle operation within our North American Coal operating segment, along with impairments charged to reporting units within our Other reportable segments. A detailed break out of the impairment charges is shown in the chart above. The recorded impairment charges reduce the related assets to their estimated fair value as we determined that the future cash flows associated with these operations were not sufficient to support the recoverability of the carrying value of these assets. Fair value was determined based on management's best estimate within a range of fair values, which is considered a Level 3 input, and resulted in an asset impairment charge of $7,699.6 million. The Level 3 inputs used to determine fair value included models developed and market inputs obtained by management which provided a range of fair value estimates of property, plant and equipment. Management’s models include internally developed long-term cash flow estimates, capital expenditure and cost estimates, market inputs to determine long-term pricing assumptions, discount rates, and foreign exchange rates.
 
 
(In Millions)
 
 
December 31, 2013
Description
 
Quoted Prices in Active
Markets for Identical Assets/
Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
 
Total Losses
Assets:
 
 
 
 
 
 
 
 
 
 
Goodwill impairment -
Ferroalloys reporting unit
 
$

 
$

 
$

 
$

 
$
80.9

Other long-lived assets -
Property, plant and equipment
 

 

 
46.3

 
46.3

 
155.4

Other long-lived assets -
Intangibles and long-term
deposits
 

 

 
1.6

 
1.6

 
14.5

Investment in ventures
    impairment - Amapá
 

 

 

 

 
67.6

 
 
$

 
$

 
$
47.9

 
$
47.9

 
$
318.4


Financial Assets
In light of the March 28, 2013 collapse of the Santana port shiploader and subsequent evaluation of the effect that this event had on the carrying value of our investment in Amapá as of June 30, 2013, we recorded an impairment charge of $67.6 million in the second quarter of 2013. The sale of Amapá was completed in the fourth quarter of 2013.
Non-Financial Assets
During the fourth quarter of 2013, a goodwill impairment charge of $80.9 million was recorded for our Cliffs Chromite Ontario and Cliffs Chromite Far North reporting units within our Ferroalloys operating segment. The impairment charge was primarily a result of the decision to indefinitely suspend the Chromite Project and to not allocate additional capital for the project given the uncertain timeline and risks associated with the development of necessary infrastructure to bring the project online. Based on our review of the fair value hierarchy, the inputs used in these fair value measurements were considered Level 3 inputs.
We also recorded impairment charges to property, plant and equipment during 2013 related to our Wabush operation within our Eastern Canadian Iron Ore operating segment, our Cliffs Chromite Ontario and Cliffs Chromite Far North reporting units within our Other reportable segments and certain mineral lands at our Asia Pacific Iron Ore operating segment to reduce the related assets to their estimated fair value as we determined that the cash flows associated with these operations were not sufficient to support the recoverability of the carrying value of these assets. Fair value was determined based on management's estimate of liquidation value, which is considered a Level 3 input, and resulted in a charge of $155.4 million.
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES
NOTE 8 - DEBT AND CREDIT FACILITIES
The following represents a summary of our long-term debt as of September 30, 2014 and December 31, 2013:
($ in Millions)
 
September 30, 2014
 
Debt Instrument
 
Type
 
Annual Effective Interest Rate
 
Final Maturity
 
Total Face Amount
 
Total Debt
 
$700 Million 4.875% 2021 Senior Notes
 
Fixed
 
4.89%
 
2021
 
$
700.0

 
$
699.5

(1)
$1.3 Billion Senior Notes:
 
 
 
 
 
 
 
 
 
 
 
$500 Million 4.80% 2020 Senior Notes
 
Fixed
 
4.83%
 
2020
 
500.0

 
499.3

(2)
$800 Million 6.25% 2040 Senior Notes
 
Fixed
 
6.34%
 
2040
 
800.0

 
790.5

(3)
$400 Million 5.90% 2020 Senior Notes
 
Fixed
 
5.98%
 
2020
 
400.0

 
398.6

(4)
$500 Million 3.95% 2018 Senior Notes
 
Fixed
 
4.14%
 
2018
 
500.0

 
497.1

(5)
$1.25 Billion Credit Facility:
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Agreement
 
Variable
 
1.87%
 
2017
 
1,250.0

 

(6)
Equipment Loans
 
Fixed
 
Various
 
2020
 
164.8

 
146.1

 
Short-Term Borrowing Arrangements
 
 
 
 
 
2014/2015
 
213.2

 
213.2


Fair Value Adjustment to Interest Rate Hedge
 
 
 
 
 
 
 
 
 
2.9

 
Total debt
 
 
 
 
 
 
 
$
4,528.0

 
$
3,247.2

 
Less: Short-term and current portion of long-term debt
 
 
 
 
 
 
 
 
 
234.7

 
Long-term debt
 
 
 
 
 
 
 
 
 
$
3,012.5

 
($ in Millions)
 
December 31, 2013
 
Debt Instrument
 
Type
 
Annual Effective Interest Rate
 
Final Maturity
 
Total Face Amount
 
Total Debt
 
$700 Million 4.875% 2021 Senior Notes
 
Fixed
 
4.88%
 
2021
 
700.0

 
699.4

(1)
$1.3 Billion Senior Notes:
 
 
 
 
 
 
 
 
 
 
 
$500 Million 4.80% 2020 Senior Notes
 
Fixed
 
4.83%
 
2020
 
500.0

 
499.2

(2)
$800 Million 6.25% 2040 Senior Notes
 
Fixed
 
6.34%
 
2040
 
800.0

 
790.4

(3)
$400 Million 5.90% 2020 Senior Notes
 
Fixed
 
5.98%
 
2020
 
400.0

 
398.4

(4)
$500 Million 3.95% 2018 Senior Notes
 
Fixed
 
4.14%
 
2018
 
500.0

 
496.5

(5)
$1.75 Billion Credit Facility:
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Agreement
 
Variable
 
1.64%
 
2017
 
1,750.0

 

(6)
Equipment Loans
 
Fixed
 
Various
 
2020
 
164.8

 
161.7

 
Fair Value Adjustment to Interest Rate Hedge
 
 
 
 
 
 
 
 
 
(2.1
)
 
Total debt
 
 
 
 
 
 
 
$
4,814.8

 
$
3,043.5

 
Less: Short-term and current portion of long-term debt
 
 
 
 
 
 
 
 
 
20.9

 
Long-term debt
 
 
 
 
 
 
 
 
 
$
3,022.6

 
(1)
As of September 30, 2014 and December 31, 2013, the $700 million 4.875 percent senior notes were recorded at a par value of $700 million less unamortized discounts of $0.5 million and $0.6 million, respectively, based on an imputed interest rate of 4.89 percent.
(2)
As of September 30, 2014 and December 31, 2013, the $500 million 4.80 percent senior notes were recorded at a par value of $500 million less unamortized discounts of $0.7 million and $0.8 million, respectively, based on an imputed interest rate of 4.83 percent.
(3)
As of September 30, 2014 and December 31, 2013, the $800 million 6.25 percent senior notes were recorded at a par value of $800 million less unamortized discounts of $9.5 million and $9.6 million, respectively, based on an imputed interest rate of 6.34 percent.
(4)
As of September 30, 2014 and December 31, 2013, the $400 million 5.90 percent senior notes were recorded at a par value of $400 million less unamortized discounts of $1.4 million and $1.6 million, respectively, based on an imputed interest rate of 5.98 percent.
(5)
As of September 30, 2014 and December 31, 2013, the $500 million 3.95 percent senior notes were recorded at a par value of $500 million less unamortized discounts of $2.9 million and $3.5 million, respectively, based on an imputed interest rate of 4.14 percent.
(6)
As of September 30, 2014 and December 31, 2013, no revolving loans were drawn under the revolving credit agreement. As of September 30, 2014 and December 31, 2013, the principal amount of letter of credit obligations totaled $5.2 million and $8.4 million, respectively, thereby reducing available borrowing capacity to $1.2 billion and $1.7 billion for each period, respectively.
Credit Facility
On September 9, 2014, we amended the Amended and Restated Multicurrency Credit Agreement among Cliffs Natural Resources Inc. and various lenders dated August 11, 2011 (as further amended by Amendment No. 1 as of October 16, 2012, Amendment No. 2 as of February 8, 2013 and Amendment No. 3 as of June 30, 2014), or revolving credit agreement, to effect the following:
Permitting a one-time exemption of up to $200 million in share repurchases (consummated in a single transaction or series of related transactions), effective until December 31, 2015.
Reducing the size of the existing unsecured facility from $1.75 billion to $1.25 billion.
Adding restrictions on the granting of certain pledges and guarantees.
Adding an obligation to enter into a security agreement, on or before June 30, 2015, to grant security interests to secure obligations under the revolving credit agreement, subject to certain limitations.
Additionally, since Amendment No. 4 as of September 9, 2014, decreased the maximum available credit of the existing line of credit by $500 million while leaving the remaining term unchanged, the borrowing capacity of the line of credit decreased. As a result of this change in borrowing capacity, $2.8 million of the $9.9 million in unamortized debt issuance costs were expensed as of the effective date of the amendment.
The amended facility retains substantial financial flexibility for management to execute our strategy and provides us a consistent source of liquidity. All terms of Amendment No. 3 as of June 30, 2014, as discussed below, remain in place and are not changed by Amendment No. 4 as of September 9, 2014.
Previously this year, on June 30, 2014, we amended the revolving credit agreement to effect the following:
Replacing the current maximum leverage covenant ratio of debt to earnings of less than 3.5 times with a maximum balance sheet leverage ratio of debt to capitalization of less than 45 percent.
Resetting the minimum interest coverage ratio from 2.5 to 1.0 to the ratio of 3.5 to 1.0.
Amending the definition of EBITDA to include certain cash charges related to the Company’s Wabush mine and other cash restructuring charges and the definition of net worth to exclude up to $1 billion in non-cash impairment charges.
Modifying the covenants restricting certain investments and acquisitions, the incurrence of certain indebtedness and liens, and the amount of dividends that may be declared or paid and shares that may be repurchased.
On October 24, 2014, we further amended the revolving credit agreement. Refer to NOTE 20 - SUBSEQUENT EVENTS for further information regarding Amendment No. 5.
As of September 30, 2014, we were in compliance with all financial covenants related to the revolving credit agreement inclusive of the changes made in Amendment No. 5. Additionally, as of December 31, 2013, we were in compliance with all applicable financial covenants related to the revolving credit agreement.
Short-Term Borrowing Arrangements
As of September 30, 2014, we had outstanding borrowings of $150.0 million on our uncommitted credit facility agreements which were used for general corporate purposes.  Per the uncommitted credit agreement, each loan drawn cannot be outstanding less than 30 days or more than 90 days.  Interest payable under the uncommitted credit facility is at a variable rate based on LIBOR plus an agreed upon margin of approximately one percent.
On April 22, 2014, we established an accounts receivable securitization facility for certain domestic subsidiaries that provides up to $110.0 million of funding and expires on April 21, 2015. Availability under this facility is based on eligible receivable balances. At September 30, 2014, the amounts available and utilized under this program totaled $45.2 million. Interest payable under the credit facility is at a variable rate based on LIBOR type rate plus an agreed upon margin of less than one percent. On October 24, 2014, we amended the revolving credit agreement which eliminated the accounts receivable securitization facility.
As of September 30, 2014, we had outstanding borrowings of $18.0 million on pre-export trade finance loans. Per the agreements, the loans drawn have fixed maturity dates that are short-term in nature. Interest payable under the pre-export trade finance loans are at a fixed rate of less than one percent.
Letters of Credit
We issued standby letters of credit with certain financial institutions in order to support general business obligations including, but not limited to, workers compensation and environmental obligations. As of September 30, 2014 and December 31, 2013, these letter of credit obligations totaled $43.9 million and $48.0 million, respectively. All of these standby letters of credit are in addition to the letters of credit provided for under the revolving credit agreement.
Other Short-Term Facilities
Asia Pacific Iron Ore maintains a bank contingent instrument and cash advance facility. The facility, which is renewable annually at the bank’s discretion, provides A$30.0 million ($26.2 million) at September 30, 2014 in credit for contingent instruments, such as performance bonds. At December 31, 2013, the facility provided A$30.0 million ($26.8 million) in credit for contingent instruments. As of September 30, 2014, the outstanding bank guarantees under the facility totaled A$22.9 million ($20.1 million), thereby reducing borrowing capacity to A$7.1 million ($6.1 million). As of December 31, 2013, the outstanding bank guarantees under the facility totaled A$23.0 million ($20.5 million), thereby reducing borrowing capacity to A$7.0 million ($6.3 million). We have provided a guarantee of the facility, along with certain of our Australian subsidiaries. The terms of the short-term facility contain certain customary covenants; however, there are no financial covenants.
Debt Maturities
The following represents a summary of our maturities of debt instruments, excluding borrowings on the revolving credit agreement, based on the principal amounts outstanding at September 30, 2014:
 
(In Millions)
 
Maturities of Debt
2014 (October 1 - December 31)
$
218.5

2015
21.8

2016
22.7

2017
23.6

2018
524.7

2019 and thereafter
2,448.0

Total maturities of debt
$
3,259.3

LEASE OBLIGATIONS
LEASE OBLIGATIONS
NOTE 9 - 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 $5.0 million and $16.3 million for the three and nine months ended September 30, 2014, respectively, compared with $5.3 million and $19.5 million for the same respective period in 2013.
Future minimum payments under capital leases and non-cancellable operating leases at September 30, 2014 are as follows:
 
(In Millions)
 
Capital Leases
 
Operating Leases
2014 (October 1 - December 31)
$
16.1

 
$
4.7

2015
86.6

 
14.0

2016
35.9

 
9.2

2017
28.6

 
8.2

2018
20.9

 
6.9

2019 and thereafter
35.3

 
14.7

Total minimum lease payments
$
223.4

 
$
57.7

Amounts representing interest
37.0

 
 
Present value of net minimum lease payments
$
186.4

(1) 
 
                                         
(1) 
The total is comprised of $78.0 million and $108.4 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at September 30, 2014.
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
NOTE 10 - ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
We had environmental and mine closure liabilities of $310.7 million and $321.0 million at September 30, 2014 and December 31, 2013, respectively. The following is a summary of the obligations as of September 30, 2014 and December 31, 2013:
 
(In Millions)
 
September 30,
2014
 
December 31, 2013
Environmental
$
5.6

 
$
8.4

Mine closure
 
 
 
LTVSMC
22.7

 
22.0

Operating mines:
 
 
 
U.S. Iron Ore
138.5

 
152.2

Eastern Canadian Iron Ore
81.9

 
78.2

Asia Pacific Iron Ore
25.8

 
25.5

North American Coal
36.2

 
34.7

Total mine closure
305.1

 
312.6

Total environmental and mine closure obligations
310.7

 
321.0

Less current portion
5.3

 
11.3

Long term environmental and mine closure obligations
$
305.4

 
$
309.7


Mine Closure
The accrued closure obligation for our active mining operations provides for contractual and legal obligations associated with the eventual closure of the mining operations. The accretion of the liability and amortization of the related asset is recognized over the estimated mine lives for each location.
The following represents a rollforward of our asset retirement obligation liability related to our active mining locations for the nine months ended September 30, 2014 and for the year ended December 31, 2013:
 
(In Millions)
 
September 30,
2014
 
December 31,
2013 (1)
Asset retirement obligation at beginning of period
$
290.6

 
$
231.1

Accretion expense
10.9

 
18.1

Exchange rate changes
(0.7
)
 
(3.4
)
Revision in estimated cash flows
(18.4
)
 
44.8

Asset retirement obligation at end of period
$
282.4

 
$
290.6

                                         
(1) 
Represents a 12-month rollforward of our asset retirement obligation at December 31, 2013.
The revisions in estimated cash flows recorded during the nine months ended September 30, 2014 primarily were a result of the announced Empire mine extension during the first quarter of 2014. As a result of the extension, a portion of the required storm water management systems are now expected to be implemented prior to closure of the mine.
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
NOTE 11 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS
The following are the components of defined benefit pension and OPEB expense for the three and nine months ended September 30, 2014 and 2013:
Defined Benefit Pension Expense
 
(In Millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Service cost
$
7.3

 
$
9.6

 
$
23.2

 
$
29.2

Interest cost
12.4

 
11.2

 
37.4

 
34.4

Expected return on plan assets
(18.1
)
 
(16.2
)
 
(54.1
)
 
(49.3
)
Amortization:
 
 
 
 
 
 
 
Prior service costs
0.7

 
0.8

 
2.0

 
2.3

Net actuarial (gain) loss
3.3

 
7.5

 
10.5

 
22.5

    Curtailments/settlements
1.7

 
$

 
2.9

 

Net periodic benefit cost
$
7.3

 
$
12.9

 
$
21.9

 
$
39.1


Other Postretirement Benefits Expense
 
(In Millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Service cost
$
2.1

 
$
3.0

 
$
6.1

 
$
9.2

Interest cost
4.0

 
4.3

 
12.1

 
13.0

Expected return on plan assets
(4.2
)
 
(5.0
)
 
(12.8
)
 
(15.0
)
Amortization:
 
 
 
 
 
 
 
Prior service costs
(0.9
)
 
(0.9
)
 
(2.7
)
 
(2.7
)
Net actuarial loss
1.2

 
2.9

 
3.5

 
8.7

Net periodic benefit cost
$
2.2

 
$
4.3

 
$
6.2

 
$
13.2


We made pension contributions of $34.2 million and $48.6 million for the three and nine months ended September 30, 2014, respectively, compared to pension contributions of $36.1 million and $51.2 million for the three and nine months ended September 30, 2013, respectively. OPEB contributions are typically made on an annual basis in the first quarter of each year, but due to plan funding requirements being met, no OPEB contributions were required or made for the nine months ended September 30, 2014. OPEB contributions were $14.1 million for the nine months ended September 30, 2013.
STOCK COMPENSATION PLANS
STOCK COMPENSATION PLANS
NOTE 12 - STOCK COMPENSATION PLANS
Employees’ Plans
The 2012 Equity Plan was approved by our Board of Directors on March 13, 2012 and our shareholders approved it on May 8, 2012, effective as of March 13, 2012. The 2012 Equity Plan replaced the ICE Plan. The maximum number of shares that may be issued under the 2012 Equity Plan is 6.0 million common shares. On February 10, 2014, upon recommendation by the Compensation and Organization Committee, Cliffs’ Board of Directors approved and adopted, subject to the approval of Cliffs' shareholders at the 2014 Annual General Meeting, the 2012 Amended Equity Plan. The principal reason for amending and restating the 2012 Equity Plan was to increase the number of common shares available for issuance by 5.0 million common shares. This amended plan was approved by Cliffs' shareholders at the 2014 Annual General Meeting held on July 29, 2014.
The Compensation and Organization Committee of the Board of Directors approved grants under the 2012 Equity Plan and the 2012 Amended Equity Plan to certain officers and employees for the 2014 to 2016 performance period. Shares granted under the awards during 2014 consisted of 0.8 million performance shares based on TSR, 0.4 million restricted share units, 0.3 million stock options and 0.4 million performance-based restricted stock units, each of which may, or may not, convert into shares based on our shares achieving and maintaining certain milestones above an absolute threshold during the performance period.
At the Company's July 29, 2014 Annual General Meeting, the shareholders voted on the election of eleven directors. Thirteen persons were nominated for election to the eleven board positions. On August 6, 2014, the Company received the final report of the inspector of election that confirmed the election of six new directors to our Board of Directors. Such an event constituted a change in control pursuant to our incentive equity plans. As a result of such change in control and pursuant to the terms of the various plans and applicable award agreements, all of the outstanding and unvested equity incentives awarded to participants prior to October 2013 became vested. Accordingly, this resulted in recognizing $11.7 million of additional equity-based compensation expense in the accompanying financial statements, representing the remaining unrecognized compensation expense of the awards. For any equity grants awarded after September 2013, the vesting of all such grants will accelerate and pay out in cash only following a participant's qualifying termination of employment and a change in control as defined by the 2012 Amended Equity Plan. We also have a potential for additional double-trigger payments for share-based compensation which would be payable in cash. This potential liability will expire entirely in two years.
For the outstanding 2012 Equity Plan and 2012 Amended Equity Plan awards that were issued subsequent to October 2013, each performance share, if earned, entitles the holder to receive common shares or cash within a range between a threshold and maximum number of our common shares, with the actual number of common shares earned dependent upon whether the Company achieves certain objectives and performance goals as established by the Compensation and Organization Committee. The performance share or unit grants vest over a period of three years and are intended to be paid out in common shares or cash in certain circumstances. Performance for the 2014 to 2016 performance periods is measured only on the basis of relative TSR for the period and measured against the constituents of the S&P Metals and Mining ETF Index on the last day of trading of the performance period. The final payouts for the 2014 to 2016 performance period will vary from zero to 200 percent of the original grant. The restricted share units issued subsequent to October 2013 remain subject to continued employment and will vest at the end of the respective performance period, and are payable in common shares or cash in certain circumstances at a time determined by the Committee at its discretion.
Determination of Fair Value
The fair value of each grant is estimated on the date of grant using a Monte Carlo simulation to forecast relative TSR performance. A correlation matrix of historic and projected stock prices was developed for both the Company and our predetermined peer group of mining and metals companies. The fair value assumes that performance goals will be achieved.
The expected term of the grant represents the time from the grant date to the end of the service period for each of the three plan-year agreements. We estimate the volatility of our common shares and that of the peer group of mining and metals companies using daily price intervals for all companies. The risk-free interest rate is the rate at the grant date on zero-coupon government bonds, with a term commensurate with the remaining life of the performance period.
The following assumptions were utilized to estimate the fair value for the first, second and third quarters of 2014 performance share grants:
Grant Date
 
Grant Date Market Price
 
Average Expected Term (Years)
 
Expected Volatility
 
Risk-Free Interest Rate
 
Dividend Yield
 
Fair Value
 
Fair Value (Percent of Grant Date Market Price)
February 10, 2014
 
$
20.58

 
2.89
 
54.0%
 
0.54%
 
2.92%
 
$
22.21

 
107.92%
May 12, 2014
 
$
17.54

 
2.61
 
54.0%
 
0.54%
 
2.92%
 
$
18.93

 
107.92%
July 29, 2014
 
$
17.62

 
2.42
 
51.3%
 
0.83%
 
3.40%
 
$
19.02

 
107.92%

The fair value of the restricted share units is determined based on the closing price of the Company’s common shares on the grant date. The restricted share units granted under either the 2012 Equity Plan or the 2012 Amended Equity Plan vest over a period of three years.
INCOME TAXES
Income Taxes
NOTE 13 - INCOME TAXES
For the nine months ended September 30, 2014 we recognized an income tax benefit of $1,012.3 million. The income tax benefit was primarily driven by impairment charges recorded in September 2014. In addition, as our loss for the nine months ended September 30, 2014 exceeds the anticipated ordinary loss for the full year, the tax benefit recognized for the nine months ended September 30, 2014 was limited to the amount that would be recognized if the year-to-date ordinary loss were the anticipated ordinary loss for the full year. Other items contributing to the benefit are deductions for percentage depletion in excess of cost depletion related to U.S. operations and non-taxable interest income. The tax benefit was partially offset by tax expense resulting from the recording of valuation allowances against certain credits and losses generated in the current year and foreign taxes and benefits derived from operations outside the United States, which are taxed at rates lower than the U.S. statutory rate of 35 percent. Included in the net benefit were non-recurring items recorded in the first nine months of 2014. These adjustments relate primarily to the recording of valuation allowances against existing deferred tax assets as a result of the impairment of global assets, the repeal of the Australian Minerals Resources Rent Tax, the finalization of certain domestic and foreign tax returns and foreign currency remeasurement of current and deferred tax assets and deferred liabilities.
The tax benefit of the non-taxable interest income is expected to be $48.4 million for the year ending December 31, 2014. This is related to long-term intercompany loans between certain foreign subsidiaries and is a result of the difference in the tax characterization of the instruments in the United States, Australia and Canada. Interest expense is deductible by the debtors in Canada and Australia and interest income is excluded from taxable income by the creditors in the United States and Canada, resulting in an income tax benefit of $48.4 million. The adjustment is based on the terms of the intercompany loans and no significant management judgments or estimates were involved in the computation of the non-taxable interest income. The current year benefit of the intercompany loan between the United States and Canada is $27.8 million and will have no further impact on our financial results subsequent to April 27, 2014 when the terms of the loan were restructured. A benefit of $20.6 million is expected from the intercompany loan between Canada and Australia and will continue to have an impact through the year ending December 31, 2020, of which the impact will vary depending on the fluctuations in currency exchange rates.
CAPITAL STOCK
CAPITAL STOCK
NOTE 14 - CAPITAL STOCK
Depositary Shares
On February 21, 2013, we issued 29.25 million depositary shares, equivalent to 731,250 preferred shares, comprised of the 27.0 million depositary share offering and the exercise of an underwriters' over-allotment option to purchase an additional 2.25 million depositary shares, for total net proceeds of approximately $709.4 million, after underwriter fees and discounts. Each depositary share represents a 1/40th interest in a share of our 7.00 percent Series A Mandatory Convertible Preferred Stock, Class A, without par value, or Preferred Share, at a price of $25 per depositary share. Each Preferred Share has an initial liquidation preference of $1,000 per share (equivalent to a $25 liquidation preference per depositary share). When and if declared by our board of directors, we will pay cumulative dividends on each Preferred Share at an annual rate of 7.00 percent on the liquidation preference. We will pay declared dividends in cash on February 1, May 1, August 1 and November 1 of each year, commencing on May 1, 2013 and to, and including February 1, 2016. Holders of the depositary shares are entitled to a proportional fractional interest in the rights and preferences of the Preferred Shares, including conversion, dividend, liquidation and voting rights, subject to the provisions of the deposit agreement.
The Preferred Shares may be converted, at the option of the holder, at the minimum conversion rate of 28.1480 of our common shares (equivalent to 0.7037 of our common shares per depositary share) at any time prior to February 1, 2016 or other than during a fundamental change conversion period, subject to anti-dilution adjustments. If not converted prior to that time, each Preferred Share will convert automatically on February 1, 2016 into between 28.1480 and 34.4840 common shares, par value $0.125 per share, subject to anti-dilution adjustments. The number of common shares issuable on conversion will be determined based on the average VWAP per share of our common shares during the 20 trading day period beginning on, and including, the 23rd scheduled trading day prior to February 1, 2016, subject to customary anti-dilution adjustments. Upon conversion, a minimum of 20.6 million common shares and a maximum of 25.2 million common shares will be issued.
If certain fundamental changes involving the Company occur, holders of the Preferred Shares may convert their shares into a number of common shares at the conversion rate that will be adjusted under certain circumstances, and such holders also will be entitled to a fundamental change dividend make-whole amount. The Preferred Shares are not redeemable.
Dividends
On March 20, 2013, our board of directors declared a cash dividend of $13.6111 per Preferred Share, which is equivalent to approximately $0.34 per depositary share. The cash dividend was paid on May 1, 2013 to our Preferred Shareholders of record as of the close of business on April 15, 2013. On May 7, 2013, September 9, 2013 and November 11, 2013, our board of directors declared the quarterly cash dividend of $17.50 per Preferred Share, which is equivalent to approximately $0.44 per depositary share. The cash dividend was paid on August 1, 2013, November 1, 2013 and February 3, 2014 to our Preferred Shareholders of record as of the close of business on July 15, 2013, October 15, 2013 and January 15, 2014. On February 11, 2014 and May 13, 2014, our board of directors declared the quarterly cash dividend of $17.50 per Preferred Share, which is equivalent to approximately $0.44 per depositary share. The cash dividend was paid on May 1, 2014 and August 1, 2014 to our Preferred Shareholders of record as of the close of business on April 15, 2014 and July 15, 2014, respectively. On September 8, 2014, our board of directors declared the quarterly cash dividends of $17.50 per Preferred Share, which is equivalent to approximately $0.44 per depositary share. The cash dividend of $12.8 million was paid on November 3, 2014 to our shareholders of record as of the close of business on October 15, 2014.
On February 11, 2013, our board of directors approved a reduction to our quarterly cash dividend rate by 76 percent to $0.15 per share. Our board of directors took this step in order to improve the future cash flows available for investment in the Phase II expansion at Bloom Lake. The decreased dividend of $0.15 per share was paid on March 1, 2013, June 3, 2013, September 3, 2013 and December 2, 2013 to our common shareholders of record as of the close of business on February 22, 2013, May 17, 2013, August 15, 2013 and November 22, 2013, respectively. Additionally, the cash dividend of $0.15 per share was paid on March 3, 2014, June 3, 2014 and September 2, 2014 to our common shareholders of record as of close of business on February 21, 2014, May 23, 2014 and August 15, 2014.
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
NOTE 15 - SHAREHOLDERS' EQUITY
The following table reflects the changes in shareholders' equity attributable to both Cliffs and the noncontrolling interests primarily related to Bloom Lake, Tilden and Empire of which Cliffs owns 82.8 percent, 85 percent and 79 percent, respectively, for the nine months ended September 30, 2014 and September 30, 2013:
 
(In Millions)
 
Cliffs
Shareholders’
Equity
 
Noncontrolling
Interest
 
Total Equity
December 31, 2013
$
6,069.5

 
$
814.8

 
$
6,884.3

Comprehensive income
 
 
 
 
 
Net loss
(5,939.0
)
 
(1,004.4
)
 
(6,943.4
)
Other comprehensive income
11.5

 
1.6

 
13.1

Total comprehensive income
(5,927.5
)
 
(1,002.8
)
 
(6,930.3
)
Stock and other incentive plans
(3.4
)
 

 
(3.4
)
Common and preferred share dividends
(107.9
)
 

 
(107.9
)
Undistributed losses to noncontrolling interest

 
(20.0
)
 
(20.0
)
September 30, 2014
$
30.7

 
$
(208.0
)
 
$
(177.3
)
 
(In Millions)
 
Cliffs
Shareholders’
Equity
 
Noncontrolling
Interest
 
Total Equity
December 31, 2012
$
4,632.7

 
$
1,128.2

 
$
5,760.9

Comprehensive income
 
 
 
 
 
Net income
370.2

 
5.8

 
376.0

Other comprehensive income
(122.8
)
 
3.2

 
(119.6
)
Total comprehensive income
247.4

 
9.0

 
256.4

Issuance of common shares
285.3

 

 
285.3

Issuance of preferred shares
709.4

 

 
709.4

Stock and other incentive plans
9.6

 

 
9.6

Common and preferred share dividends
(104.7
)
 

 
(104.7
)
Capital contribution by noncontrolling interest
    to subsidiary

 
17.7

 
17.7

September 30, 2013
$
5,779.7

 
$
1,154.9

 
$
6,934.6

The following table reflects the changes in Accumulated other comprehensive income (loss) related to Cliffs shareholders’ equity for September 30, 2014 and September 30, 2013:
 
(In Millions)
 
Changes in Pension and Other Post-Retirement Benefits, net of tax
 
Unrealized Net Gain (Loss) on Securities, net of tax
 
Unrealized Net Gain (Loss) on Foreign Currency Translation
 
Net Unrealized Gain (Loss) on Derivative Financial Instruments, net of tax
 
Accumulated Other Comprehensive Income (Loss)
Balance December 31, 2013
$
(204.9
)
 
$
6.2

 
$
106.7

 
$
(20.9
)
 
$
(112.9
)
Other comprehensive income (loss) before reclassifications
(0.4
)
 
3.8

 
40.5

 
(2.3
)
 
41.6

Net loss (gain) reclassified from accumulated other comprehensive income (loss)
3.3

 
0.1

 

 
12.8

 
16.2

Balance March 31, 2014
$
(202.0
)
 
$
10.1

 
$
147.2

 
$
(10.4
)
 
$
(55.1
)
Other comprehensive income (loss) before reclassifications
(1.4
)
 
(2.4
)
 
19.7

 
9.7

 
25.6

Net loss (gain) reclassified from accumulated other comprehensive income (loss)
4.0

 
(1.3
)
 

 
6.6

 
9.3

Balance June 30, 2014
$
(199.4
)
 
$
6.4

 
$
166.9

 
$
5.9

 
$
(20.2
)
Other comprehensive income (loss) before reclassifications
3.5

 
1.3

 
(65.9
)
 
(20.0
)
 
(81.1
)
Net loss (gain) reclassified from accumulated other comprehensive income (loss)
7.6

 
(7.1
)
 

 
(0.6
)
 
(0.1
)
Balance September 30, 2014
$
(188.3
)
 
$
0.6

 
$
101.0

 
$
(14.7
)
 
$
(101.4
)
 
(In Millions)
 
Changes in Pension and Other Post-Retirement Benefits, net of tax
 
Unrealized Net Gain (Loss) on Securities, net of tax
 
Unrealized Net Gain (Loss) on Foreign Currency Translation
 
Net Unrealized Gain (Loss) on Derivative Financial Instruments, net of tax
 
Accumulated Other Comprehensive Income (Loss)
Balance December 31, 2012
$
(382.7
)
 
$
2.1

 
$
316.3

 
$
8.7

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

 
3.3

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

 
0.1

 

 
(2.0
)
 
4.5

Balance March 31, 2013
$
(377.4
)
 
$
4.7

 
$
319.6

 
$
1.7

 
$
(51.4
)
Other comprehensive income (loss) before reclassifications
(1.5
)
 
(2.0
)
 
(152.0
)
 
(42.2
)
 
(197.7
)
Net loss (gain) reclassified from accumulated other comprehensive income (loss)
8.1

 
3.6

 

 
(2.2
)
 
9.5

Balance June 30, 2013
$
(370.8
)
 
$
6.3

 
$
167.6

 
$
(42.7
)
 
$
(239.6
)
Other comprehensive income (loss) before reclassifications
(0.6
)
 
3.5

 
22.8

 
12.1

 
37.8

Net loss (gain) reclassified from accumulated other comprehensive income (loss)
6.3

 
0.9

 

 
16.2

 
23.4

Balance September 30, 2013
$
(365.1
)
 
$
10.7

 
$
190.4

 
$
(14.4
)
 
$
(178.4
)

The following table reflects the details about Accumulated other comprehensive income (loss) components related to Cliffs shareholders’ equity for the three and nine months ended September 30, 2014:
 
 
(In Millions)
 
 
Details about Accumulated Other Comprehensive Income (Loss) Components
 
Amount of (Gain)/Loss Reclassified into Income
 
Affected Line Item in the Statement of Unaudited Condensed Consolidated Operations
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2014
 
2013
 
2014
 
2013
 
Amortization of Pension and Postretirement Benefit Liability:
 
 
 
 
 
 
 
 
 
 
Prior service costs
 
$
(0.2
)
 
$
(0.1
)
 
$
(0.7
)
 
$
(0.4
)
 
(1)
Net actuarial loss
 
4.5

 
10.4

 
14.0

 
31.2

 
(1)
Settlements/curtailments
 
1.7

 

 
2.9

 

 
(1)
 
 
6.0

 
10.3

 
16.2

 
30.8

 
Total before taxes
 
 
1.6

 
(4.0
)
 
(1.3
)
 
(10.0
)
 
Income tax benefit (expense)
 
 
$
7.6

 
$
6.3

 
$
14.9

 
$
20.8

 
Net of taxes
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss) on marketable securities:
 
 
 
 
 
 
 
 
 
 
Sale of marketable securities
 
$
(9.7
)
 
$
0.6

 
$
(11.4
)
 
$
(0.5
)
 
Other non-operating income (expense)
Impairment
 
(0.3
)
 

 
(0.3
)
 
5.3

 
Other non-operating income (expense)
 
 
(10.0
)
 
0.6

 
(11.7
)
 
4.8

 
Total before taxes
 
 
2.9

 
0.3

 
3.4

 
(0.2
)
 
Income tax benefit (expense)
 
 
$
(7.1
)
 
$
0.9

 
$
(8.3
)
 
$
4.6

 
Net of taxes
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss) on derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
Australian dollar foreign exchange contracts
 
$
(1.6
)
 
$
12.7

 
$
16.7

 
$
6.4

 
Product revenues
Canadian dollar foreign exchange contracts
 
1.5

 
11.0

 
11.4

 
11.3

 
Cost of goods sold and operating expenses
 
 
(0.1
)
 
23.7

 
28.1

 
17.7

 
Total before taxes
 
 
(0.5
)
 
(7.5
)
 
(9.3
)
 
(5.7
)
 
Income tax benefit (expense)
 
 
$
(0.6
)
 
$
16.2

 
$
18.8

 
$
12.0

 
Net of taxes
 
 
 
 
 
 
 
 
 
 
 
Total Reclassifications for the Period
 
$
(0.1
)
 
$
23.4

 
$
25.4

 
$
37.4

 
 
                                         
(1)
These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See NOTE 11 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS for further information.
RELATED PARTIES
RELATED PARTIES
NOTE 16 - RELATED PARTIES
Three of our five U.S. iron ore mines and our Bloom Lake mine in Eastern Canada are owned with various joint venture partners that are integrated steel producers or their subsidiaries. We are the manager of each of the mines we co-own and rely on our joint venture partners to make their required capital contributions and to pay for their share of the iron ore pellets and concentrate that we produce. The joint venture partners are also our customers. The following is a summary of the mine ownership of these iron ore mines at September 30, 2014:
Mine
 
Cliffs Natural Resources
 
ArcelorMittal
 
U.S. Steel Corporation
 
WISCO
Empire
 
79.0
%
 
21.0
%
 

 

Tilden
 
85.0
%
 

 
15.0
%
 

Hibbing
 
23.0
%
 
62.3
%
 
14.7
%
 

Bloom Lake
 
82.8
%
 

 

 
17.2
%

During the first quarter of 2014, we announced that we entered into a revised commercial agreement with ArcelorMittal to supply iron ore pellets for an additional two years through the end of January 2017, with a mutual option to extend for a third year. In addition, Cliffs and ArcelorMittal also extended the joint partnership for the Empire mine preventing the impending closure in 2014.
ArcelorMittal has a unilateral right to put its interest in the Empire mine to us, but has not exercised this right to date.
Product revenues from related parties were as follows:
 
(In Millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Product revenues from related parties
$
390.0

 
$
455.5

 
$
929.0

 
$
1,211.6

Total product revenues
1,190.8

 
1,454.6

 
3,070.3

 
3,928.8

Related party product revenue as a percent of total product revenue
32.8
%
 
31.3
%
 
30.3
%
 
30.8
%

Amounts due from related parties recorded in Accounts receivable, net and Other current assets, including trade accounts receivable, a customer supply agreement and provisional pricing arrangements, were $103.4 million and $132.0 million at September 30, 2014 and December 31, 2013, respectively. Amounts due to related parties recorded in Accounts payable and Other current liabilities, including provisional pricing arrangements, were $27.2 million at September 30, 2014 and amounts including provisional pricing arrangements and liabilities to related parties were $25.1 million at December 31, 2013.
EARNINGS PER SHARE
EARNINGS PER SHARE
NOTE 17 - EARNINGS PER SHARE
The following table summarizes the computation of basic and diluted earnings (loss) per share:
 
(In Millions, Except Per Share Amounts)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Net Income (Loss) from Continuing Operations Attributable to Cliffs Shareholders
$
(5,879.6
)
 
$
115.2

 
$
(5,939.0
)
 
$
368.2

Income from Discontinued Operations, net of tax

 
2.0

 

 
2.0

Net Income (Loss) Attributable to Cliffs Shareholders
$
(5,879.6
)
 
$
117.2

 
$
(5,939.0
)
 
$
370.2

Preferred Stock Dividends
(12.8
)
 
(12.9
)
 
(38.4
)
 
(35.9
)
Net Income (Loss) Attributable to Cliffs Common Shareholders
$
(5,892.4
)
 
$
104.3

 
$
(5,977.4
)
 
$
334.3

Weighted Average Number of Shares:
 
 
 
 
 
 
 
Basic
153.1

 
153.0

 
153.1

 
151.3

Depositary Shares

 
25.2

 

 
21.1

Employee Stock Plans

 
0.2

 

 
0.2

Diluted
153.1

 
178.4

 
153.1

 
172.6

Earnings (Loss) per Common Share Attributable to
Cliffs Common Shareholders - Basic:
 
 
 
 
 
 
 
Continuing operations
$
(38.49
)
 
$
0.67

 
$
(39.05
)
 
$
2.20

Discontinued operations

 
0.01

 

 
0.01

 
$
(38.49
)
 
$
0.68

 
$
(39.05
)
 
$
2.21

Earnings (Loss) per Common Share Attributable to
Cliffs Common Shareholders - Diluted:
 
 
 
 
 
 
 
Continuing operations
$
(38.49
)
 
$
0.65

 
$
(39.05
)
 
$
2.13

Discontinued operations

 
0.01

 

 
0.01

 
$
(38.49
)
 
$
0.66

 
$
(39.05
)
 
$
2.14


The diluted earnings per share calculation excludes 25.2 million depositary shares that were anti-dilutive for both the three and nine months ended September 30, 2014. Additionally, the diluted earnings per share calculation excludes 0.5 million and 0.9 million shares for the three and nine months ended September 30, 2014, respectively, related to equity plan awards that were anti-dilutive.
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
NOTE 18 - COMMITMENTS AND CONTINGENCIES
Contingencies
Claims and Legal Proceedings
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, claims and legal proceedings are subject to inherent uncertainties, and unfavorable rulings could occur. An unfavorable ruling could include monetary damages, additional funding requirements or an injunction. If an unfavorable ruling were to occur, there exists the possibility of a material impact on the financial position and results of operations of the period in which the ruling occurs, or future periods. Specifically, our wholly owned subsidiary, CQIM, along with the Bloom Lake General Partner Limited and Bloom Lake, instituted an arbitral claim against Bloom Lake’s former customer, Worldlink, in October 2011 for material and/or fundamental breaches of the parties’ 2007 offtake agreement for the purchase and sale of iron concentrate produced at the Bloom Lake mine.  We filed the arbitration claim with the International Court of Arbitration of the International Chamber of Commerce pursuant to the dispute resolution provisions of the offtake agreement.  Bloom Lake terminated the offtake agreement with Worldlink in August 2011 due to Worldlink’s failure to fulfill its obligations under the agreement and Worldlink’s demand to renegotiate the price of the iron ore concentrate in spite of being party to a long-term offtake agreement.  Our damages for the breach of the offtake agreement are in excess of $85 million and Worldlink has counterclaimed for damages in excess of $100 million.  We strongly disagree with Worldlink’s defenses and counterclaims and intend to vigorously pursue our claim.  The arbitrators heard testimony at a hearing in May 2014 but have not yet issued a decision.  A decision is expected from the arbitrators later in 2014.
CASH FLOW INFORMATION
Cash Flow Information
NOTE 19 - CASH FLOW INFORMATION
A reconciliation of capital additions to cash paid for capital expenditures for the nine months ended September 30, 2014 and 2013 is as follows:
 
(In Millions)
 
Nine Months Ended
September 30,
 
2014
 
2013
Capital additions
$
186.0

 
$
625.1

Cash paid for capital expenditures
233.2

 
742.2

Difference
$
(47.2
)
 
$
(117.1
)
Non-cash accruals
$
(57.1
)
 
$
(117.1
)
Capital leases
9.9

 

Total
$
(47.2
)
 
$
(117.1
)

Non-Cash Financing Activities - Declared Dividends
On September 8, 2014, our board of directors declared the quarterly cash dividend on our Preferred Shares of $17.50 per share, which is equivalent to approximately $0.44 per depositary share, each representing 1/40th of a share of Series A preferred stock. The cash dividend of $12.8 million was paid on November 3, 2014 to our preferred shareholders of record as of the close of business on October 15, 2014.
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
NOTE 20 - SUBSEQUENT EVENTS
On October 24, 2014, we amended the Amended and Restated Multicurrency Credit Agreement among Cliffs Natural Resources Inc. and various lenders dated August 11, 2011 (as further amended by Amendment No. 1 as of October 16, 2012, Amendment No. 2 as of February 8, 2013, Amendment No. 3 as of June 30, 2014 and Amendment No. 4 as of September 9, 2014), or revolving credit agreement, to effect the following:
Reduces the size of the existing facility from $1.250 billion to $1.125 billion.
Grants a valid and perfected first-priority (subject to certain permitted liens) security interest in certain property and assets of the Company and certain of its subsidiaries, subject to customary exclusions all specified in a security agreement.
With effect as of September 30, 2014, removes the maximum balance sheet leverage ratio of debt to capitalization of less than 45 percent, which was a covenant introduced in June 2014, and replaces that covenant with a maximum leverage ratio covenant of secured debt to EBITDA that is not to exceed 3.5 times.
Retains the minimum interest coverage ratio requirement of 3.5 times, and subsequently reduces the minimum interest coverage ratio to 2.0 times upon completion of certain collateral actions within 60 days of the execution of the amendment.
Subjects restricted payments (including the $200 million share repurchase, which was approved in September 2014) and current dividend structure to a $400 million liquidity test.
Adds limitations regarding acquisitions, investments (including investments in non-wholly owned subsidiaries and joint ventures) and subsidiary debt.
Eliminates the accounts receivable securitization facility.
Terminates the ability to have foreign borrowers under the revolving credit agreement.
The amended facility retains substantial financial flexibility for management to execute our strategy and provides us a consistent source of liquidity.
On November 4, 2014, the Board of Directors declared a quarterly cash dividend on the Company's common shares of $0.15 per share to be paid on December 1, 2014 to shareholders of record on November 15, 2014. The Board also determined that this dividend and future dividends may be paid out of capital surplus.
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)
Basis of Consolidation
The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly-owned and majority-owned subsidiaries, including the following operations:
Name
 
Location
 
Ownership Interest
 
Operation
Northshore
 
Minnesota
 
100.0%
 
Iron Ore
United Taconite
 
Minnesota
 
100.0%
 
Iron Ore
Wabush
 
Newfoundland and Labrador/ Quebec, Canada
 
100.0%
 
Iron Ore
Bloom Lake
 
Quebec, Canada
 
82.8%
 
Iron Ore
Tilden
 
Michigan
 
85.0%
 
Iron Ore
Empire
 
Michigan
 
79.0%
 
Iron Ore
Koolyanobbing
 
Western Australia
 
100.0%
 
Iron Ore
Pinnacle
 
West Virginia
 
100.0%
 
Coal
Oak Grove
 
Alabama
 
100.0%
 
Coal
CLCC
 
West Virginia
 
100.0%
 
Coal

Intercompany transactions and balances are eliminated upon consolidation.
Also included in our consolidated results are Cliffs Chromite Ontario Inc. and Cliffs Chromite Far North Inc. Cliffs Chromite Ontario Inc. holds a 100 percent interest in each of the Black Label and Black Thor chromite deposits and, together with Cliffs Chromite Far North Inc., a 70 percent interest in the Big Daddy chromite deposit, all located in northern Ontario, Canada.
Equity Method Investments
Investments in unconsolidated ventures that we have the ability to exercise significant influence over, but not control, are accounted for under the equity method. The following table presents the detail of our investments in unconsolidated ventures and where those investments are classified in the Statements of Unaudited Condensed Consolidated Financial Position as of September 30, 2014 and December 31, 2013. Parentheses indicate a net liability.
 
 
 
 
 
 
 
 
(In Millions)
Investment
 
Classification
 
Accounting
Method
 
Interest
Percentage
 
September 30,
2014
 
December 31, 2013
Hibbing
 
Other non-current assets1
 
Equity Method
 
23%
 
$
8.1

 
$
(3.9
)
Other
 
Other non-current assets
 
Equity Method
 
Various
 
24.4

 
34.7

 
 
 
 
 
 
 
 
$
32.5

 
$
30.8

                                         
1 At December 31, 2013, the classification for Hibbing was Other liabilities.
Foreign Currency
Our financial statements are prepared with the U.S. dollar as the reporting currency. The functional currency of the Company’s Australian subsidiaries is the Australian dollar. The functional currency of all other international subsidiaries is the U.S. dollar. The financial statements of international subsidiaries are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and a weighted average exchange rate for each period for revenues, expenses, gains and losses. Where the local currency is the functional currency, translation adjustments are recorded as Accumulated other comprehensive loss. Income taxes generally are not provided for foreign currency translation adjustments. To the extent that monetary assets and liabilities, inclusive of intercompany notes, are recorded in a currency other than the functional currency, these amounts are remeasured each reporting period, with the resulting gain or loss being recorded in the Statements of Unaudited Condensed Consolidated Operations. Transaction gains and losses resulting from remeasurement of short-term intercompany loans are included in Miscellaneous - net in our Statements of Unaudited Condensed Consolidated Operations. For the three and nine months ended September 30, 2014, net gains of $26.4 million and $8.4 million, respectively, related to the impact of transaction gains and losses resulting from remeasurement. Of these transaction gains and losses, for the three months ended September 30, 2014, gains of $17.7 million and $9.6 million, respectively, and for the nine months ended September 30, 2014 gains of $4.7 million and $4.5 million, respectively, resulted from remeasurement of short-term intercompany loans and cash and cash equivalents. For the three and nine months ended September 30, 2013, a net loss of $14.1 million and a net gain of $36.5 million, respectively, related to the impact of transaction gains and losses resulting from remeasurement. Of these transaction gains and losses, for the three months ended September 30, 2013 losses of $4.5 million and $4.3 million, respectively, and for the nine months ended September 30, 2013 gains of $23.8 million and $7.4 million, respectively, resulted from remeasurement of short-term intercompany loans and cash and cash equivalents.
Recent Accounting Pronouncements
Issued and Not Effective
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern. ASU 2014-15 will explicitly require management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Specifically, ASU 2014-15 provides a definition of the term "substantial doubt" and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans and requires an express statement and other disclosures when substantial doubt is not alleviated. The new standard will be effective for all entities in the first annual period ending after December 15, 2016 and allows for either a full retrospective or modified retrospective transition method. Earlier adoption is permitted. We are currently evaluating the impact the adoption of the guidance will have on the Statements of Unaudited Condensed Consolidated Financial Position, Statements of Unaudited Condensed Consolidated Operations or Statements of Unaudited Condensed Consolidated Cash Flows
In June 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers.  The new revenue guidance broadly replaces the revenue guidance provided throughout the Codification.  The core principle of the revenue guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  To achieve that core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation.  The new revenue guidance also requires the capitalization of certain contract acquisition costs.  Reporting entities must provide new disclosures providing qualitative and quantitative information on the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.  New disclosures also include qualitative and quantitative information on significant judgments, changes in judgments, and contract acquisition assets.  The update is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016 and may be adopted either retrospectively or retrospectively with the cumulative effect.  Earlier adoption is not permitted. We are still evaluating the impact of the updated guidance on the Statements of Unaudited Condensed Consolidated Financial Position, Statements of Unaudited Condensed Consolidated Operations or Statements of Unaudited Condensed Consolidated Cash Flows.
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly-owned and majority-owned subsidiaries, including the following operations:
Name
 
Location
 
Ownership Interest
 
Operation
Northshore
 
Minnesota
 
100.0%
 
Iron Ore
United Taconite
 
Minnesota
 
100.0%
 
Iron Ore
Wabush
 
Newfoundland and Labrador/ Quebec, Canada
 
100.0%
 
Iron Ore
Bloom Lake
 
Quebec, Canada
 
82.8%
 
Iron Ore
Tilden
 
Michigan
 
85.0%
 
Iron Ore
Empire
 
Michigan
 
79.0%
 
Iron Ore
Koolyanobbing
 
Western Australia
 
100.0%
 
Iron Ore
Pinnacle
 
West Virginia
 
100.0%
 
Coal
Oak Grove
 
Alabama
 
100.0%
 
Coal
CLCC
 
West Virginia
 
100.0%
 
Coal
The following table presents the detail of our investments in unconsolidated ventures and where those investments are classified in the Statements of Unaudited Condensed Consolidated Financial Position as of September 30, 2014 and December 31, 2013. Parentheses indicate a net liability.
 
 
 
 
 
 
 
 
(In Millions)
Investment
 
Classification
 
Accounting
Method
 
Interest
Percentage
 
September 30,
2014
 
December 31, 2013
Hibbing
 
Other non-current assets1
 
Equity Method
 
23%
 
$
8.1

 
$
(3.9
)
Other
 
Other non-current assets
 
Equity Method
 
Various
 
24.4

 
34.7

 
 
 
 
 
 
 
 
$
32.5

 
$
30.8

                                         
1 At December 31, 2013, the classification for Hibbing was Other liabilities.
SEGMENT REPORTING (Tables)
The following tables present a summary of our reportable segments for the three and nine months ended September 30, 2014 and 2013, including a reconciliation of segment sales margin to Income (Loss) from Continuing Operations Before Income Taxes and Equity Loss from Ventures and a reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA:
 
(In Millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Revenues from product sales and services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Iron Ore
$
767.4

 
59
%
 
$
782.4

 
51
%
 
$
1,643.3

 
49
%
 
$
1,894.2

 
45
%
Eastern Canadian Iron Ore
148.0

 
11
%
 
284.2

 
18
%
 
480.3

 
15
%
 
743.4

 
18
%
Asia Pacific Iron Ore
212.3

 
17
%
 
301.7

 
20
%
 
699.6

 
21
%
 
899.5

 
22
%
North American Coal
170.5

 
13
%
 
178.3

 
11
%
 
515.8

 
15
%
 
638.5

 
15
%
Total revenues from product sales and services
$
1,298.2

 
100
%
 
$
1,546.6

 
100
%
 
$
3,339.0

 
100
%
 
$
4,175.6

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales margin:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Iron Ore
$
219.5

 
 
 
$
273.5

 
 
 
$
461.7

 
 
 
$
647.1

 
 
Eastern Canadian Iron Ore
(76.8
)
 
 
 
(22.0
)
 
 
 
(165.0
)
 
 
 
(52.3
)
 
 
Asia Pacific Iron Ore
9.1

 
 
 
99.0

 
 
 
111.4

 
 
 
255.3

 
 
North American Coal
(24.3
)
 
 
 
(1.8
)
 
 
 
(125.4
)
 
 
 
6.6

 
 
Other

 
 
 

 
 
 

 
 
 
(1.9
)
 
 
Sales margin
127.5

 
 
 
348.7

 
 
 
282.7

 
 
 
854.8

 
 
Other operating expense
(7,886.6
)
 
 
 
(124.7
)
 
 
 
(8,104.2
)
 
 
 
(200.5
)
 
 
Other expense
(40.3
)
 
 
 
(45.9
)
 
 
 
(124.4
)
 
 
 
(137.4
)
 
 
Income (loss) from continuing operations before income taxes and equity loss from ventures
$
(7,799.4
)
 
 
 
$
178.1

 
 
 
$
(7,945.9
)
 
 
 
$
516.9

 
 
 
(In Millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss)
$
(6,887.2
)
 
 
 
$
113.9

 
 
 
$
(6,943.4
)
 
 
 
$
376.0

 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
(47.4
)
 
 
 
(44.7
)
 
 
 
(134.9
)
 
 
 
(134.5
)
 
 
Income tax benefit (expense)
921.4

 
 
 
(65.7
)
 
 
 
1,012.3

 
 
 
(69.0
)
 
 
Depreciation, depletion and amortization
(144.0
)
 
 
 
(153.1
)
 
 
 
(430.4
)
 
 
 
(438.0
)
 
 
EBITDA
$
(7,617.2
)
 
 
 
$
377.4

 
 
 
$
(7,390.4
)
 
 
 
$
1,017.5

 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment of goodwill and other long-lived assets
$
(7,769.1
)
 
 
 
$

 
 
 
$
(7,773.1
)
 
 
 
$

 
 
Wabush related costs
(64.0
)
 
 
 
(13.0
)
 
 
 
(122.3
)
 
 
 
(2.3
)
 
 
Wabush sales margin
(20.0
)
 
 
 
(1.3
)
 
 
 
(47.5
)
 
 
 
(44.2
)
 
 
Foreign exchange remeasurement
26.4

 
 
 
(14.1
)
 
 
 
8.4

 
 
 
36.5

 
 
Proxy contest and change in control costs in SG&A
(21.9
)
 
 
 

 
 
 
(26.2
)
 
 
 

 
 
Litigation judgment

 
 
 
(9.6
)
 
 
 

 
 
 
(9.6
)
 
 
Severance in SG&A
(1.9
)
 
 
 
(8.1
)
 
 
 
(12.6
)
 
 
 
(8.1
)
 
 
Adjusted EBITDA
$
233.3

 
 
 
$
423.5

 
 
 
$
582.9

 
 
 
$
1,045.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Iron Ore
$
242.1

 
 
 
$
296.9

 
 
 
$
538.4

 
 
 
$
715.9

 
 
Eastern Canadian Iron Ore
(6,423.2
)
 
 
 
(43.8
)
 
 
 
(6,537.6
)
 
 
 
(9.6
)
 
 
Asia Pacific Iron Ore
(330.9
)
 
 
 
138.1

 
 
 
(148.7
)
 
 
 
367.6

 
 
North American Coal
(827.5
)
 
 
 
31.0

 
 
 
(875.6
)
 
 
 
85.4

 
 
Other
(277.7
)
 
 
 
(44.8
)
 
 
 
(366.9
)
 
 
 
(141.8
)
 
 
Total EBITDA
$
(7,617.2
)
 
 
 
$
377.4

 
 
 
$
(7,390.4
)
 
 
 
$
1,017.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Iron Ore
$
248.7

 
 
 
$
305.0

 
 
 
$
556.1

 
 
 
$
738.0

 
 
Eastern Canadian Iron Ore
(33.2
)
 
 
 
(8.6
)
 
 
 
(49.3
)
 
 
 
50.0

 
 
Asia Pacific Iron Ore
46.1

 
 
 
140.9

 
 
 
234.5

 
 
 
375.5

 
 
North American Coal
6.1

 
 
 
37.4

 
 
 
(32.2
)
 
 
 
103.2

 
 
Other
(34.4
)
 
 
 
(51.2
)
 
 
 
(126.2
)
 
 
 
(221.5
)
 
 
Total Adjusted EBITDA
$
233.3

 
 
 
$
423.5

 
 
 
$
582.9

 
 
 
$
1,045.2

 
 
 
(In Millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Depreciation, depletion and amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Iron Ore
$
25.9

 
 
 
$
27.3

 
 
 
$
81.2

 
 
 
$
82.3

 
 
Eastern Canadian Iron Ore
43.6

 
 
 
46.8

 
 
 
127.2

 
 
 
130.3

 
 
Asia Pacific Iron Ore
42.2

 
 
 
38.0

 
 
 
123.6

 
 
 
116.1

 
 
North American Coal
30.3

 
 
 
38.8

 
 
 
92.2

 
 
 
99.7

 
 
Other
2.0

 
 
 
2.2

 
 
 
6.2

 
 
 
9.6

 
 
Total depreciation, depletion and amortization
$
144.0

 
 
 
$
153.1

 
 
 
$
430.4

 
 
 
$
438.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital additions1:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Iron Ore
$
8.5

 
 
 
$
15.2

 
 
 
$
37.4

 
 
 
$
39.1

 
 
Eastern Canadian Iron Ore
37.9

 
 
 
181.5

 
 
 
112.2

 
 
 
535.3

 
 
Asia Pacific Iron Ore
3.1

 
 
 
10.4

 
 
 
8.3

 
 
 
8.6

 
 
North American Coal
4.6

 
 
 
2.0

 
 
 
24.8

 
 
 
37.2

 
 
Other
0.5

 
 
 
2.2

 
 
 
3.3

 
 
 
4.9

 
 
Total capital additions
$
54.6

 
 
 
$
211.3

 
 
 
$
186.0

 
 
 
$
625.1

 
 
                                         
1    Includes capital lease additions and non-cash accruals. Refer to NOTE 19 - CASH FLOW INFORMATION.
A summary of assets by segment is as follows:
 
(In Millions)
 
September 30,
2014
 
December 31, 2013
Assets:
 
 
 
U.S. Iron Ore
$
1,715.8

 
$
1,671.6

Eastern Canadian Iron Ore
1,113.2

 
7,915.5

Asia Pacific Iron Ore
577.2

 
1,078.4

North American Coal
904.0

 
1,841.8

Other
217.0

 
455.6

Total segment assets
4,527.2

 
12,962.9

Corporate
284.0

 
159.0

Total assets
$
4,811.2

 
$
13,121.9

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
The following table presents the fair value of our derivative instruments and the classification of each in the Statements of Unaudited Condensed Consolidated Financial Position as of September 30, 2014 and December 31, 2013:
 
(In Millions)
 
Derivative Assets
 
Derivative Liabilities
 
September 30, 2014
 
December 31, 2013
 
September 30, 2014
 
December 31, 2013
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
 
$

 
 
 
$

 
 
 
$

 
Other current liabilities
 
$
2.1

Foreign Exchange Contracts
 
 

 
Other current assets
 
0.3

 
Other current liabilities
 
17.4

 
Other current liabilities
 
25.8

Total derivatives designated as hedging instruments under ASC 815
 
 
$

 
 
 
$
0.3

 
 
 
$
17.4

 
 
 
$
27.9

Derivatives not designated as hedging instruments under ASC 815:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Exchange Contracts
 
 
$

 
 
 
$

 
 
 
$

 
Other current liabilities
 
$
1.1

Customer Supply Agreement
Other current assets
 
54.5

 
Other current assets
 
55.8

 
 
 

 
 
 

Provisional Pricing Arrangements
 
 

 
Other current assets
 
3.1

 
Other current liabilities
 
23.3

 
Other current liabilities
 
10.3

Total derivatives not designated as hedging instruments under ASC 815
 
 
$
54.5

 
 
 
$
58.9

 
 
 
$
23.3

 
 
 
$
11.4

Total derivatives
 
 
$
54.5

 
 
 
$
59.2

 
 
 
$
40.7

 
 
 
$
39.3

The following summarizes the effect of our derivatives designated as cash flow hedging instruments, net of tax in Accumulated other comprehensive loss in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2014 and 2013:
 
(In Millions)
Derivatives in Cash Flow Hedging Relationships
Amount of Gain (Loss)
Recognized in OCI on Derivatives
 
Location of Gain (Loss)
Reclassified
from Accumulated OCI into Earnings
 
Amount of Gain (Loss)
Reclassified
from Accumulated
OCI into Earnings
(Effective Portion)
 
(Effective Portion)
 
(Effective Portion)
 
Three Months Ended
September 30,
 
 
 
Three Months Ended
September 30,
 
2014
 
2013
 
 
 
2014
 
2013
Australian Dollar Foreign
Exchange Contracts
(hedge designation)
$
(12.6
)
 
$
2.9

 
Product revenues
 
$
1.6

 
$
(8.9
)
Canadian Dollar Foreign Exchange Contracts (hedge designation)
(7.4
)
 
9.2

 
Cost of goods sold and operating expenses
 
(1.0
)
 
(7.3
)
Canadian Dollar Foreign Exchange Contracts
(prior to de-designation)

 

 
Cost of goods sold and operating expenses
 

 

Total
$
(20.0
)
 
$
12.1

 
 
 
$
0.6

 
$
(16.2
)
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
September 30,
 
 
 
Nine Months Ended
September 30,
 
2014
 
2013
 
 
 
2014
 
2013
Australian Dollar Foreign
Exchange Contracts
(hedge designation)
$
(3.4
)
 
$
(25.2
)
 
Product revenues
 
$
(11.2
)
 
$
(4.5
)
Canadian Dollar Foreign Exchange Contracts
    (hedge designation)
(9.2
)
 
(9.9
)
 
Cost of goods sold and operating expenses
 
(7.1
)
 
(7.5
)
Canadian Dollar Foreign Exchange Contracts
(prior to de-designation)

 

 
Cost of goods sold and operating expenses
 
(0.5
)
 

 
$
(12.6
)
 
$
(35.1
)
 
 
 
$
(18.8
)
 
$
(12.0
)
The following summarizes the effect of our derivatives that are not designated as hedging instruments in the Statements of Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2014 and 2013:
(In Millions)
Derivatives Not Designated as Hedging Instruments
Location of Gain (Loss) Recognized in
Income on Derivative
Amount of Gain (Loss) Recognized in Income on Derivative
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2014
 
2013
 
2014
 
2013
Foreign Exchange Contracts
Cost of goods sold and operating expenses
$

 
$

 
$
(3.3
)
 
$

Commodity Contracts
Other non-operating income (expense)

 
(2.7
)
 

 
(2.7
)
Customer Supply Agreement
Product revenues
62.6

 
53.9

 
124.6

 
113.4

Provisional Pricing Arrangements
Product revenues
(3.1
)
 
24.3

 
(23.3
)
 
(6.8
)
 
 
$
59.5

 
$
75.5

 
$
98.0

 
$
103.9

INVENTORIES (Tables)
Schedule Of Inventories
The following table presents the detail of our Inventories in the Statements of Unaudited Condensed Consolidated Financial Position as of September 30, 2014 and December 31, 2013:
 
(In Millions)
 
September 30, 2014
 
December 31, 2013
Segment
Finished Goods
 
Work-in Process
 
Total Inventory
 
Finished Goods
 
Work-in
Process
 
Total
Inventory
U.S. Iron Ore
$
279.5

 
$
23.5

 
$
303.0

 
$
92.1

 
$
13.0

 
$
105.1

Eastern Canadian Iron Ore
18.2

 
15.8

 
34.0

 
65.3

 
48.1

 
113.4

Asia Pacific Iron Ore
25.8

 
85.1

 
110.9

 
39.7

 
50.6

 
90.3

North American Coal
52.7

 
16.1

 
68.8

 
59.4

 
23.2

 
82.6

Total
$
376.2

 
$
140.5

 
$
516.7

 
$
256.5

 
$
134.9

 
$
391.4

PROPERTY, PLANT AND EQUIPMENT (Tables)
Value Of Each Of The Major Classes Of Consolidated Depreciable Assets
The following table indicates the value of each of the major classes of our consolidated depreciable assets as of September 30, 2014 and December 31, 2013:
 
(In Millions)
 
September 30,
2014
 
December 31, 2013
Land rights and mineral rights
$
1,947.6

 
$
7,819.6

Office and information technology
80.7

 
125.7

Buildings
88.9

 
255.2

Mining equipment
1,399.5

 
1,819.3

Processing equipment
361.9

 
2,148.6

Electric power facilities
57.4

 
114.3

Port facilities
27.6

 
99.4

Interest capitalized during construction
18.8

 
23.8

Land improvements
32.5

 
69.3

Other
65.5

 
104.4

Construction in-progress
94.1

 
991.3

 
4,174.5

 
13,570.9

Accumulated depreciation and depletion
(966.6
)
 
(2,417.5
)
 
$
3,207.9

 
$
11,153.4

GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES (Tables)
The following table summarizes changes in the carrying amount of goodwill allocated by operating segment for the nine months ended September 30, 2014 and the year ended December 31, 2013:
 
(In Millions)
 
September 30, 2014
 
December 31, 2013
 
U.S. Iron Ore
 
Eastern Canadian Iron Ore
 
Asia Pacific
Iron Ore
 
North American Coal
 
Other
 
Total
 
U.S. Iron Ore
 
Eastern
Canadian Iron Ore
 
Asia Pacific Iron Ore
 
North American Coal
 
Other
 
Total
Beginning Balance
$
2.0

 
$

 
$
72.5

 
$

 
$

 
$
74.5

 
$
2.0

 
$

 
$
84.5

 
$

 
$
80.9

 
$
167.4

Arising in business combinations

 

 

 

 

 

 

 

 

 

 

 

Impairment

 

 
(73.5
)
 

 

 
(73.5
)
 

 

 

 

 
(80.9
)
 
(80.9
)
Impact of foreign currency translation

 

 
1.0

 

 

 
1.0

 

 

 
(12.0
)
 

 

 
(12.0
)
Ending Balance
$
2.0

 
$

 
$

 
$

 
$

 
$
2.0

 
$
2.0

 
$

 
$
72.5

 
$

 
$

 
$
74.5

Accumulated goodwill impairment loss
$

 
$
(1,000.0
)
 
(73.5
)
 
$
(27.8
)
 
$
(80.9
)
 
$
(1,182.2
)
 
$

 
$
(1,000.0
)
 
$

 
$
(27.8
)
 
$
(80.9
)
 
$
(1,108.7
)
The following table is a summary of intangible assets and liabilities as of September 30, 2014 and December 31, 2013:
 
 
 
(In Millions)
 
 
 
September 30, 2014
 
December 31, 2013
 
Classification
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Definite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Permits
Other non-current assets
 
$
91.6

 
$
(16.8
)
 
$
74.8

 
$
127.4

 
$
(35.9
)
 
$
91.5

Utility contracts
Other non-current assets
 
54.3

 
(53.9
)
 
0.4

 
54.7

 
(53.1
)
 
1.6

Leases
Other non-current assets
 
2.4

 
(0.2
)
 
2.2

 
2.4

 
(0.1
)
 
2.3

Total intangible assets
 
 
$
148.3

 
$
(70.9
)
 
$
77.4

 
$
184.5

 
$
(89.1
)
 
$
95.4

Below-market sales contracts
Other current liabilities
 
$
(23.0
)
 
$

 
$
(23.0
)
 
$
(23.0
)
 
$

 
$
(23.0
)
Below-market sales contracts
Other liabilities
 
(205.9
)
 
175.0

 
(30.9
)
 
(205.9
)
 
159.7

 
(46.2
)
Total below-market sales contracts
 
 
$
(228.9
)
 
$
175.0

 
$
(53.9
)
 
$
(228.9
)
 
$
159.7

 
$
(69.2
)
The estimated amortization expense relating to intangible assets for the remainder of this year and each of the five succeeding years is as follows:

(In Millions)

Amount
Year Ending December 31,

2014 (remaining three months)
$
1.4

2015
5.6

2016
5.3

2017
5.1

2018
5.3

2019
5.3

Total
$
28.0

The following amounts are estimated to be recognized in Product revenues for the remainder of this year and each of the two succeeding fiscal years:
 
(In Millions)
 
Amount
Year Ending December 31,
 
2014 (remaining three months)
$
7.8

2015
23.0

2016
23.1

Total
$
53.9

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
The following represents the assets and liabilities of the Company measured at fair value at September 30, 2014 and December 31, 2013:
 
(In Millions)
 
September 30, 2014
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
$
120.0

 
$

 
$

 
$
120.0

Derivative assets

 

 
54.5

 
54.5

Available-for-sale marketable securities
6.1

 

 

 
6.1

Foreign exchange contracts

 

 

 

Total
$
126.1

 
$

 
$
54.5

 
$
180.6

Liabilities:

 

 

 

Derivative liabilities
$

 
$

 
$
23.3

 
$
23.3

Foreign exchange contracts

 
17.4

 

 
17.4

Total
$

 
$
17.4

 
$
23.3

 
$
40.7

 
(In Millions)
 
December 31, 2013
Description
Quoted Prices in Active
Markets for Identical
Assets/Liabilities (Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents
$
85.0

 
$

 
$

 
$
85.0

Derivative assets

 

 
58.9

 
58.9

Available-for-sale marketable securities
21.4

 

 

 
21.4

Foreign exchange contracts

 
0.3

 

 
0.3

Total
$
106.4

 
$
0.3

 
$
58.9

 
$
165.6

Liabilities:

 

 

 

Derivative liabilities
$

 
$
2.1

 
$
10.3

 
$
12.4

Foreign exchange contracts

 
26.9

 

 
26.9

Total
$

 
$
29.0

 
$
10.3

 
$
39.3

The following table illustrates information about quantitative inputs and assumptions for the derivative assets and derivative liabilities categorized in Level 3 of the fair value hierarchy:
Qualitative/Quantitative Information About Level 3 Fair Value Measurements
 
 
($ in millions)
Fair Value at September 30, 2014
 
Balance Sheet Location
 
Valuation Technique
 
Unobservable Input
 
Range or Point Estimate
(Weighted Average)
 
Provisional Pricing Arrangements
 
$
23.3

 
Derivative liabilities
 
Market Approach
 
Management's
Estimate of 62% Fe
 
$78
Customer Supply Agreement
 
$
54.5

 
Derivative assets
 
Market Approach
 
Hot-Rolled Steel Estimate
 
$635 - $665 ($650)
The following tables represent a reconciliation of the changes in fair value of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2014 and 2013.
 
(In Millions)
 
Derivative Assets (Level 3)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Beginning balance
$
33.0

 
$
45.1

 
$
58.9

 
$
62.4

Total gains
 
 
 
 
 
 
 
Included in earnings
62.6

 
57.6

 
124.6

 
118.0

Settlements
(41.1
)
 
(36.0
)
 
(129.0
)
 
(113.7
)
Transfers into Level 3

 

 

 

Transfers out of Level 3

 

 

 

Ending balance - September 30
$
54.5

 
$
66.7

 
$
54.5

 
$
66.7

Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date
$
62.6

 
$
57.6

 
$
124.6

 
$
118.0

 
(In Millions)
 
Derivative Liabilities (Level 3)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Beginning balance
$
(20.2
)
 
$
(32.0
)
 
$
(10.3
)
 
$
(11.3
)
Total gains
 
 
 
 
 
 
 
Included in earnings
(3.1
)
 
20.6

 
(23.3
)
 
(11.4
)
Settlements

 

 
10.3

 
11.3

Transfers into Level 3

 

 

 

Transfers out of Level 3

 

 

 

Ending balance - September 30
$
(23.3
)
 
$
(11.4
)
 
$
(23.3
)
 
$
(11.4
)
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date
$
(3.1
)
 
$
20.6

 
$
(23.3
)
 
$
(11.4
)
A summary of the carrying amount and fair value of other financial instruments at September 30, 2014 and December 31, 2013 were as follows:
 
 
 
(In Millions)
 
 
 
September 30, 2014
 
December 31, 2013
 
Classification
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Long-term debt:
 
 
 
 
 
 
 
 
 
Senior notes—$700 million
Level 2
 
$
699.5

 
$
539.6

 
$
699.4

 
$
718.2

Senior notes—$1.3 billion
Level 2
 
1,289.8

 
974.7

 
1,289.6

 
1,404.9

Senior notes—$400 million
Level 2
 
398.6

 
341.8

 
398.4

 
432.1

Senior notes—$500 million
Level 2
 
497.1

 
433.0

 
496.5

 
523.8

Revolving loan
Level 2
 

 

 

 

Equipment loan facilities
Level 2
 
124.6

 
124.6

 
140.8

 
140.8

Fair value adjustment to interest rate hedge
Level 2
 
2.9

 
2.9

 
(2.1
)
 
(2.1
)
Total long-term debt
 
 
$
3,012.5

 
$
2,416.6

 
$
3,022.6

 
$
3,217.7

The following tables present information about the impairment charges on both financial and nonfinancial assets that were measured on a fair value basis at September 30, 2014 and December 31, 2013. The tables also indicate the fair value hierarchy of the valuation techniques used to determine such fair value.
 
 
(In Millions)
 
 
September 30, 2014
Description
 
Quoted Prices in Active
Markets for Identical Assets/
Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
 
Total Losses
Assets:
 
 
 
 
 
 
 
 
 
 
Goodwill impairment -
Asia Pacific Iron Ore reporting unit
 
$

 
$

 
$

 
$

 
$
73.5

Other long-lived assets -
Property, plant and equipment
    and Mineral rights:
 
 
 
 
 
 
 
 
 
 
Asia Pacific Iron Ore reporting unit
 

 

 
343.4

 
343.4

 
291.9

North American Coal reporting unit
 
 
 
 
 
 
 
 
 
 
CLCC thermal asset group
 

 

 
62.6

 
62.6

 
195.5

Pinnacle asset group
 

 

 
30.7

 
30.7

 
394.5

Oak Grove asset group
 

 

 
58.2

 
58.2

 
237.8

Eastern Canadian Iron Ore reporting unit
 
 
 
 
 
 
 
 
 
 
Bloom Lake asset group
 

 

 
937.2

 
937.2

 
6,279.2

Wabush asset group
 

 

 
1.0

 
1.0

 
12.8

Ferroalloys reporting unit
 

 

 
12.2

 
12.2

 
259.5

Other reporting units
 

 

 

 

 
3.1

Other long-lived assets -
Intangibles and other long-term assets:
 
 
 
 
 
 
 
 
 
 
Asia Pacific Iron Ore reporting unit
 

 

 
11.9

 
11.9

 
10.1

Eastern Canadian Iron Ore reporting unit
 
 
 
 
 
 
 
 
 
 
Wabush asset group
 

 

 

 

 
15.2

Investment in ventures
impairment - Global Exploration
 

 

 

 

 
9.2

 
 
$

 
$

 
$
1,457.2

 
$
1,457.2

 
$
7,782.3

Financial Assets
During the third quarter of 2014, an impairment charge of $9.2 million to investment in ventures was recorded within our Global Exploration operating segment as a decision was made to abandon the investment during the period.
Non-Financial Assets
During the third quarter of 2014, we identified factors that indicate the carrying values of the asset groups in the chart above may not be recoverable. Primary factors include that estimates of long-term price forecasts were updated as part of management’s long-range planning process. Updated estimates of long-term prices for all products, specifically the Platts 62 percent Fe fines spot price, which particularly effects Eastern Canadian Iron Ore and Asia Pacific Iron Ore business segments because their contracts correlate heavily to world market spot pricing, and the benchmark price for premium low-volatile hard coking coal were lower than prior estimates. These estimates were updated based upon current market conditions, macro-economic factors influencing the balance of supply and demand for our products and expectations for future cost and capital expenditure requirements. Additional factors include a new CEO, Lourenco Goncalves, appointed by the Board of Directors in early August 2014 and subsequently identified as the CODM in accordance with ASC 280, Segment Reporting. The new CODM views Eastern Canadian Iron Ore, Asia Pacific Iron Ore, North American Coal and Ferroalloys as non-core assets and has communicated plans to evaluate the business units for a change in strategy including possible divestiture. These factors, among other considerations utilized in the individual impairment assessments, indicate that the carrying value of the respective asset groups in the chart above and Asia Pacific Iron Ore goodwill may not be recoverable.
During the third quarter of 2014, a goodwill impairment charge of $73.5 million was recorded for our Asia Pacific Iron Ore reporting units within our Asia Pacific Iron Ore operating segment. Based on our review of the fair value hierarchy, the inputs used in these fair value measurements were considered Level 3 inputs.
We also recorded impairment charges to property, plant and equipment, mineral rights, intangible assets and other long-term assets during the third quarter of 2014 related to our Wabush operation and Bloom Lake operation within our Eastern Canadian Iron Ore operating segment, our Asia Pacific Iron Ore operating segment and our CLCC thermal operation, Oak Grove operation and Pinnacle operation within our North American Coal operating segment, along with impairments charged to reporting units within our Other reportable segments. A detailed break out of the impairment charges is shown in the chart above. The recorded impairment charges reduce the related assets to their estimated fair value as we determined that the future cash flows associated with these operations were not sufficient to support the recoverability of the carrying value of these assets. Fair value was determined based on management's best estimate within a range of fair values, which is considered a Level 3 input, and resulted in an asset impairment charge of $7,699.6 million. The Level 3 inputs used to determine fair value included models developed and market inputs obtained by management which provided a range of fair value estimates of property, plant and equipment. Management’s models include internally developed long-term cash flow estimates, capital expenditure and cost estimates, market inputs to determine long-term pricing assumptions, discount rates, and foreign exchange rates.
 
 
(In Millions)
 
 
December 31, 2013
Description
 
Quoted Prices in Active
Markets for Identical Assets/
Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
 
Total Losses
Assets:
 
 
 
 
 
 
 
 
 
 
Goodwill impairment -
Ferroalloys reporting unit
 
$

 
$

 
$

 
$

 
$
80.9

Other long-lived assets -
Property, plant and equipment
 

 

 
46.3

 
46.3

 
155.4

Other long-lived assets -
Intangibles and long-term
deposits
 

 

 
1.6

 
1.6

 
14.5

Investment in ventures
    impairment - Amapá
 

 

 

 

 
67.6

 
 
$

 
$

 
$
47.9

 
$
47.9

 
$
318.4

DEBT AND CREDIT FACILITIES (Tables)
The following represents a summary of our long-term debt as of September 30, 2014 and December 31, 2013:
($ in Millions)
 
September 30, 2014
 
Debt Instrument
 
Type
 
Annual Effective Interest Rate
 
Final Maturity
 
Total Face Amount
 
Total Debt
 
$700 Million 4.875% 2021 Senior Notes
 
Fixed
 
4.89%
 
2021
 
$
700.0

 
$
699.5

(1)
$1.3 Billion Senior Notes:
 
 
 
 
 
 
 
 
 
 
 
$500 Million 4.80% 2020 Senior Notes
 
Fixed
 
4.83%
 
2020
 
500.0

 
499.3

(2)
$800 Million 6.25% 2040 Senior Notes
 
Fixed
 
6.34%
 
2040
 
800.0

 
790.5

(3)
$400 Million 5.90% 2020 Senior Notes
 
Fixed
 
5.98%
 
2020
 
400.0

 
398.6

(4)
$500 Million 3.95% 2018 Senior Notes
 
Fixed
 
4.14%
 
2018
 
500.0

 
497.1

(5)
$1.25 Billion Credit Facility:
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Agreement
 
Variable
 
1.87%
 
2017
 
1,250.0

 

(6)
Equipment Loans
 
Fixed
 
Various
 
2020
 
164.8

 
146.1

 
Short-Term Borrowing Arrangements
 
 
 
 
 
2014/2015
 
213.2

 
213.2


Fair Value Adjustment to Interest Rate Hedge
 
 
 
 
 
 
 
 
 
2.9

 
Total debt
 
 
 
 
 
 
 
$
4,528.0

 
$
3,247.2

 
Less: Short-term and current portion of long-term debt
 
 
 
 
 
 
 
 
 
234.7

 
Long-term debt
 
 
 
 
 
 
 
 
 
$
3,012.5

 
($ in Millions)
 
December 31, 2013
 
Debt Instrument
 
Type
 
Annual Effective Interest Rate
 
Final Maturity
 
Total Face Amount
 
Total Debt
 
$700 Million 4.875% 2021 Senior Notes
 
Fixed
 
4.88%
 
2021
 
700.0

 
699.4

(1)
$1.3 Billion Senior Notes:
 
 
 
 
 
 
 
 
 
 
 
$500 Million 4.80% 2020 Senior Notes
 
Fixed
 
4.83%
 
2020
 
500.0

 
499.2

(2)
$800 Million 6.25% 2040 Senior Notes
 
Fixed
 
6.34%
 
2040
 
800.0

 
790.4

(3)
$400 Million 5.90% 2020 Senior Notes
 
Fixed
 
5.98%
 
2020
 
400.0

 
398.4

(4)
$500 Million 3.95% 2018 Senior Notes
 
Fixed
 
4.14%
 
2018
 
500.0

 
496.5

(5)
$1.75 Billion Credit Facility:
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Agreement
 
Variable
 
1.64%
 
2017
 
1,750.0

 

(6)
Equipment Loans
 
Fixed
 
Various
 
2020
 
164.8

 
161.7

 
Fair Value Adjustment to Interest Rate Hedge
 
 
 
 
 
 
 
 
 
(2.1
)
 
Total debt
 
 
 
 
 
 
 
$
4,814.8

 
$
3,043.5

 
Less: Short-term and current portion of long-term debt
 
 
 
 
 
 
 
 
 
20.9

 
Long-term debt
 
 
 
 
 
 
 
 
 
$
3,022.6

 
(1)
As of September 30, 2014 and December 31, 2013, the $700 million 4.875 percent senior notes were recorded at a par value of $700 million less unamortized discounts of $0.5 million and $0.6 million, respectively, based on an imputed interest rate of 4.89 percent.
(2)
As of September 30, 2014 and December 31, 2013, the $500 million 4.80 percent senior notes were recorded at a par value of $500 million less unamortized discounts of $0.7 million and $0.8 million, respectively, based on an imputed interest rate of 4.83 percent.
(3)
As of September 30, 2014 and December 31, 2013, the $800 million 6.25 percent senior notes were recorded at a par value of $800 million less unamortized discounts of $9.5 million and $9.6 million, respectively, based on an imputed interest rate of 6.34 percent.
(4)
As of September 30, 2014 and December 31, 2013, the $400 million 5.90 percent senior notes were recorded at a par value of $400 million less unamortized discounts of $1.4 million and $1.6 million, respectively, based on an imputed interest rate of 5.98 percent.
(5)
As of September 30, 2014 and December 31, 2013, the $500 million 3.95 percent senior notes were recorded at a par value of $500 million less unamortized discounts of $2.9 million and $3.5 million, respectively, based on an imputed interest rate of 4.14 percent.
(6)
As of September 30, 2014 and December 31, 2013, no revolving loans were drawn under the revolving credit agreement. As of September 30, 2014 and December 31, 2013, the principal amount of letter of credit obligations totaled $5.2 million and $8.4 million, respectively, thereby reducing available borrowing capacity to $1.2 billion and $1.7 billion for each period, respectively.
Debt Maturities
The following represents a summary of our maturities of debt instruments, excluding borrowings on the revolving credit agreement, based on the principal amounts outstanding at September 30, 2014:
 
(In Millions)
 
Maturities of Debt
2014 (October 1 - December 31)
$
218.5

2015
21.8

2016
22.7

2017
23.6

2018
524.7

2019 and thereafter
2,448.0

Total maturities of debt
$
3,259.3

LEASE OBLIGATIONS (Tables)
Schedule Of Future Minimum Lease Payments For Capital Leases And Operating Leases
Future minimum payments under capital leases and non-cancellable operating leases at September 30, 2014 are as follows:
 
(In Millions)
 
Capital Leases
 
Operating Leases
2014 (October 1 - December 31)
$
16.1

 
$
4.7

2015
86.6

 
14.0

2016
35.9

 
9.2

2017
28.6

 
8.2

2018
20.9

 
6.9

2019 and thereafter
35.3

 
14.7

Total minimum lease payments
$
223.4

 
$
57.7

Amounts representing interest
37.0

 
 
Present value of net minimum lease payments
$
186.4

(1) 
 
                                         
(1) 
The total is comprised of $78.0 million and $108.4 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at September 30, 2014.
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS (Tables)
The following is a summary of the obligations as of September 30, 2014 and December 31, 2013:
 
(In Millions)
 
September 30,
2014
 
December 31, 2013
Environmental
$
5.6

 
$
8.4

Mine closure
 
 
 
LTVSMC
22.7

 
22.0

Operating mines:
 
 
 
U.S. Iron Ore
138.5

 
152.2

Eastern Canadian Iron Ore
81.9

 
78.2

Asia Pacific Iron Ore
25.8

 
25.5

North American Coal
36.2

 
34.7

Total mine closure
305.1

 
312.6

Total environmental and mine closure obligations
310.7

 
321.0

Less current portion
5.3

 
11.3

Long term environmental and mine closure obligations
$
305.4

 
$
309.7

The following represents a rollforward of our asset retirement obligation liability related to our active mining locations for the nine months ended September 30, 2014 and for the year ended December 31, 2013:
 
(In Millions)
 
September 30,
2014
 
December 31,
2013 (1)
Asset retirement obligation at beginning of period
$
290.6

 
$
231.1

Accretion expense
10.9

 
18.1

Exchange rate changes
(0.7
)
 
(3.4
)
Revision in estimated cash flows
(18.4
)
 
44.8

Asset retirement obligation at end of period
$
282.4

 
$
290.6

                                         
(1) 
Represents a 12-month rollforward of our asset retirement obligation at December 31, 2013.
PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Tables)
Schedule of Net Benefit Costs [Table Text Block]
The following are the components of defined benefit pension and OPEB expense for the three and nine months ended September 30, 2014 and 2013:
Defined Benefit Pension Expense
 
(In Millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Service cost
$
7.3

 
$
9.6

 
$
23.2

 
$
29.2

Interest cost
12.4

 
11.2

 
37.4

 
34.4

Expected return on plan assets
(18.1
)
 
(16.2
)
 
(54.1
)
 
(49.3
)
Amortization:
 
 
 
 
 
 
 
Prior service costs
0.7

 
0.8

 
2.0

 
2.3

Net actuarial (gain) loss
3.3

 
7.5

 
10.5

 
22.5

    Curtailments/settlements
1.7

 
$

 
2.9

 

Net periodic benefit cost
$
7.3

 
$
12.9

 
$
21.9

 
$
39.1


Other Postretirement Benefits Expense
 
(In Millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Service cost
$
2.1

 
$
3.0

 
$
6.1

 
$
9.2

Interest cost
4.0

 
4.3

 
12.1

 
13.0

Expected return on plan assets
(4.2
)
 
(5.0
)
 
(12.8
)
 
(15.0
)
Amortization:
 
 
 
 
 
 
 
Prior service costs
(0.9
)
 
(0.9
)
 
(2.7
)
 
(2.7
)
Net actuarial loss
1.2

 
2.9

 
3.5

 
8.7

Net periodic benefit cost
$
2.2

 
$
4.3

 
$
6.2

 
$
13.2

STOCK COMPENSATION PLANS (Tables)
Schedule Of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions
The following assumptions were utilized to estimate the fair value for the first, second and third quarters of 2014 performance share grants:
Grant Date
 
Grant Date Market Price
 
Average Expected Term (Years)
 
Expected Volatility
 
Risk-Free Interest Rate
 
Dividend Yield
 
Fair Value
 
Fair Value (Percent of Grant Date Market Price)
February 10, 2014
 
$
20.58

 
2.89
 
54.0%
 
0.54%
 
2.92%
 
$
22.21

 
107.92%
May 12, 2014
 
$
17.54

 
2.61
 
54.0%
 
0.54%
 
2.92%
 
$
18.93

 
107.92%
July 29, 2014
 
$
17.62

 
2.42
 
51.3%
 
0.83%
 
3.40%
 
$
19.02

 
107.92%
SHAREHOLDERS' EQUITY Shareholders' Equity (Tables)
The following table reflects the changes in shareholders' equity attributable to both Cliffs and the noncontrolling interests primarily related to Bloom Lake, Tilden and Empire of which Cliffs owns 82.8 percent, 85 percent and 79 percent, respectively, for the nine months ended September 30, 2014 and September 30, 2013:
 
(In Millions)
 
Cliffs
Shareholders’
Equity
 
Noncontrolling
Interest
 
Total Equity
December 31, 2013
$
6,069.5

 
$
814.8

 
$
6,884.3

Comprehensive income
 
 
 
 
 
Net loss
(5,939.0
)
 
(1,004.4
)
 
(6,943.4
)
Other comprehensive income
11.5

 
1.6

 
13.1

Total comprehensive income
(5,927.5
)
 
(1,002.8
)
 
(6,930.3
)
Stock and other incentive plans
(3.4
)
 

 
(3.4
)
Common and preferred share dividends
(107.9
)
 

 
(107.9
)
Undistributed losses to noncontrolling interest

 
(20.0
)
 
(20.0
)
September 30, 2014
$
30.7

 
$
(208.0
)
 
$
(177.3
)
 
(In Millions)
 
Cliffs
Shareholders’
Equity
 
Noncontrolling
Interest
 
Total Equity
December 31, 2012
$
4,632.7

 
$
1,128.2

 
$
5,760.9

Comprehensive income
 
 
 
 
 
Net income
370.2

 
5.8

 
376.0

Other comprehensive income
(122.8
)
 
3.2

 
(119.6
)
Total comprehensive income
247.4

 
9.0

 
256.4

Issuance of common shares
285.3

 

 
285.3

Issuance of preferred shares
709.4

 

 
709.4

Stock and other incentive plans
9.6

 

 
9.6

Common and preferred share dividends
(104.7
)
 

 
(104.7
)
Capital contribution by noncontrolling interest
    to subsidiary

 
17.7

 
17.7

September 30, 2013
$
5,779.7

 
$
1,154.9

 
$
6,934.6

The following table reflects the changes in Accumulated other comprehensive income (loss) related to Cliffs shareholders’ equity for September 30, 2014 and September 30, 2013:
 
(In Millions)
 
Changes in Pension and Other Post-Retirement Benefits, net of tax
 
Unrealized Net Gain (Loss) on Securities, net of tax
 
Unrealized Net Gain (Loss) on Foreign Currency Translation
 
Net Unrealized Gain (Loss) on Derivative Financial Instruments, net of tax
 
Accumulated Other Comprehensive Income (Loss)
Balance December 31, 2013
$
(204.9
)
 
$
6.2

 
$
106.7

 
$
(20.9
)
 
$
(112.9
)
Other comprehensive income (loss) before reclassifications
(0.4
)
 
3.8

 
40.5

 
(2.3
)
 
41.6

Net loss (gain) reclassified from accumulated other comprehensive income (loss)
3.3

 
0.1

 

 
12.8

 
16.2

Balance March 31, 2014
$
(202.0
)
 
$
10.1

 
$
147.2

 
$
(10.4
)
 
$
(55.1
)
Other comprehensive income (loss) before reclassifications
(1.4
)
 
(2.4
)
 
19.7

 
9.7

 
25.6

Net loss (gain) reclassified from accumulated other comprehensive income (loss)
4.0

 
(1.3
)
 

 
6.6

 
9.3

Balance June 30, 2014
$
(199.4
)
 
$
6.4

 
$
166.9

 
$
5.9

 
$
(20.2
)
Other comprehensive income (loss) before reclassifications
3.5

 
1.3

 
(65.9
)
 
(20.0
)
 
(81.1
)
Net loss (gain) reclassified from accumulated other comprehensive income (loss)
7.6

 
(7.1
)
 

 
(0.6
)
 
(0.1
)
Balance September 30, 2014
$
(188.3
)
 
$
0.6

 
$
101.0

 
$
(14.7
)
 
$
(101.4
)
 
(In Millions)
 
Changes in Pension and Other Post-Retirement Benefits, net of tax
 
Unrealized Net Gain (Loss) on Securities, net of tax
 
Unrealized Net Gain (Loss) on Foreign Currency Translation
 
Net Unrealized Gain (Loss) on Derivative Financial Instruments, net of tax
 
Accumulated Other Comprehensive Income (Loss)
Balance December 31, 2012
$
(382.7
)
 
$
2.1

 
$
316.3

 
$
8.7

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

 
3.3

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

 
0.1

 

 
(2.0
)
 
4.5

Balance March 31, 2013
$
(377.4
)
 
$
4.7

 
$
319.6

 
$
1.7

 
$
(51.4
)
Other comprehensive income (loss) before reclassifications
(1.5
)
 
(2.0
)
 
(152.0
)
 
(42.2
)
 
(197.7
)
Net loss (gain) reclassified from accumulated other comprehensive income (loss)
8.1

 
3.6

 

 
(2.2
)
 
9.5

Balance June 30, 2013
$
(370.8
)
 
$
6.3

 
$
167.6

 
$
(42.7
)
 
$
(239.6
)
Other comprehensive income (loss) before reclassifications
(0.6
)
 
3.5

 
22.8

 
12.1

 
37.8

Net loss (gain) reclassified from accumulated other comprehensive income (loss)
6.3

 
0.9

 

 
16.2

 
23.4

Balance September 30, 2013
$
(365.1
)
 
$
10.7

 
$
190.4

 
$
(14.4
)
 
$
(178.4
)
The following table reflects the details about Accumulated other comprehensive income (loss) components related to Cliffs shareholders’ equity for the three and nine months ended September 30, 2014:
 
 
(In Millions)
 
 
Details about Accumulated Other Comprehensive Income (Loss) Components
 
Amount of (Gain)/Loss Reclassified into Income
 
Affected Line Item in the Statement of Unaudited Condensed Consolidated Operations
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2014
 
2013
 
2014
 
2013
 
Amortization of Pension and Postretirement Benefit Liability:
 
 
 
 
 
 
 
 
 
 
Prior service costs
 
$
(0.2
)
 
$
(0.1
)
 
$
(0.7
)
 
$
(0.4
)
 
(1)
Net actuarial loss
 
4.5

 
10.4

 
14.0

 
31.2

 
(1)
Settlements/curtailments
 
1.7

 

 
2.9

 

 
(1)
 
 
6.0

 
10.3

 
16.2

 
30.8

 
Total before taxes
 
 
1.6

 
(4.0
)
 
(1.3
)
 
(10.0
)
 
Income tax benefit (expense)
 
 
$
7.6

 
$
6.3

 
$
14.9

 
$
20.8

 
Net of taxes
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss) on marketable securities:
 
 
 
 
 
 
 
 
 
 
Sale of marketable securities
 
$
(9.7
)
 
$
0.6

 
$
(11.4
)
 
$
(0.5
)
 
Other non-operating income (expense)
Impairment
 
(0.3
)
 

 
(0.3
)
 
5.3

 
Other non-operating income (expense)
 
 
(10.0
)
 
0.6

 
(11.7
)
 
4.8

 
Total before taxes
 
 
2.9

 
0.3

 
3.4

 
(0.2
)
 
Income tax benefit (expense)
 
 
$
(7.1
)
 
$
0.9

 
$
(8.3
)
 
$
4.6

 
Net of taxes
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss) on derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
Australian dollar foreign exchange contracts
 
$
(1.6
)
 
$
12.7

 
$
16.7

 
$
6.4

 
Product revenues
Canadian dollar foreign exchange contracts
 
1.5

 
11.0

 
11.4

 
11.3

 
Cost of goods sold and operating expenses
 
 
(0.1
)
 
23.7

 
28.1

 
17.7

 
Total before taxes
 
 
(0.5
)
 
(7.5
)
 
(9.3
)
 
(5.7
)
 
Income tax benefit (expense)
 
 
$
(0.6
)
 
$
16.2

 
$
18.8

 
$
12.0

 
Net of taxes
 
 
 
 
 
 
 
 
 
 
 
Total Reclassifications for the Period
 
$
(0.1
)
 
$
23.4

 
$
25.4

 
$
37.4

 
 
                                         
(1)
These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See NOTE 11 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS for further information.
RELATED PARTIES (Tables)
The following is a summary of the mine ownership of these iron ore mines at September 30, 2014:
Mine
 
Cliffs Natural Resources
 
ArcelorMittal
 
U.S. Steel Corporation
 
WISCO
Empire
 
79.0
%
 
21.0
%
 

 

Tilden
 
85.0
%
 

 
15.0
%
 

Hibbing
 
23.0
%
 
62.3
%
 
14.7
%
 

Bloom Lake
 
82.8
%
 

 

 
17.2
%
Product revenues from related parties were as follows:
 
(In Millions)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Product revenues from related parties
$
390.0

 
$
455.5

 
$
929.0

 
$
1,211.6

Total product revenues
1,190.8

 
1,454.6

 
3,070.3

 
3,928.8

Related party product revenue as a percent of total product revenue
32.8
%
 
31.3
%
 
30.3
%
 
30.8
%
EARNINGS PER SHARE (Tables)
Earnings Per Share Computation
The following table summarizes the computation of basic and diluted earnings (loss) per share:
 
(In Millions, Except Per Share Amounts)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Net Income (Loss) from Continuing Operations Attributable to Cliffs Shareholders
$
(5,879.6
)
 
$
115.2

 
$
(5,939.0
)
 
$
368.2

Income from Discontinued Operations, net of tax

 
2.0

 

 
2.0

Net Income (Loss) Attributable to Cliffs Shareholders
$
(5,879.6
)
 
$
117.2

 
$
(5,939.0
)
 
$
370.2

Preferred Stock Dividends
(12.8
)
 
(12.9
)
 
(38.4
)
 
(35.9
)
Net Income (Loss) Attributable to Cliffs Common Shareholders
$
(5,892.4
)
 
$
104.3

 
$
(5,977.4
)
 
$
334.3

Weighted Average Number of Shares:
 
 
 
 
 
 
 
Basic
153.1

 
153.0

 
153.1

 
151.3

Depositary Shares

 
25.2

 

 
21.1

Employee Stock Plans

 
0.2

 

 
0.2

Diluted
153.1

 
178.4

 
153.1

 
172.6

Earnings (Loss) per Common Share Attributable to
Cliffs Common Shareholders - Basic:
 
 
 
 
 
 
 
Continuing operations
$
(38.49
)
 
$
0.67

 
$
(39.05
)
 
$
2.20

Discontinued operations

 
0.01

 

 
0.01

 
$
(38.49
)
 
$
0.68

 
$
(39.05
)
 
$
2.21

Earnings (Loss) per Common Share Attributable to
Cliffs Common Shareholders - Diluted:
 
 
 
 
 
 
 
Continuing operations
$
(38.49
)
 
$
0.65

 
$
(39.05
)
 
$
2.13

Discontinued operations

 
0.01

 

 
0.01

 
$
(38.49
)
 
$
0.66

 
$
(39.05
)
 
$
2.14

CASH FLOW INFORMATION (Tables)
Supplemental Cash Flow Disclosures
A reconciliation of capital additions to cash paid for capital expenditures for the nine months ended September 30, 2014 and 2013 is as follows:
 
(In Millions)
 
Nine Months Ended
September 30,
 
2014
 
2013
Capital additions
$
186.0

 
$
625.1

Cash paid for capital expenditures
233.2

 
742.2

Difference
$
(47.2
)
 
$
(117.1
)
Non-cash accruals
$
(57.1
)
 
$
(117.1
)
Capital leases
9.9

 

Total
$
(47.2
)
 
$
(117.1
)
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Related Party Transaction [Line Items]
 
 
 
 
Current Fiscal Year End Date
 
 
--12-31 
 
Black Label And Black Thor Chromite Deposits [Member]
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
Ownership Interest
100.00% 
 
100.00% 
 
Big Daddy Chromite Deposit [Member]
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
Ownership Interest
70.00% 
 
70.00% 
 
Transaction Gains and Losses Resulting from Remeasurement [Member]
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
Foreign Currency Transaction Gain (Loss), before Tax
$ 26.4 
$ (14.1)
$ 8.4 
$ 36.5 
Short-term intercompany loan [Member]
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
Foreign Currency Transaction Gain (Loss), before Tax
17.7 
(4.5)
4.7 
23.8 
Cash and Cash Equivalents [Member]
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
Foreign Currency Transaction Gain (Loss), before Tax
$ 9.6 
$ (4.3)
$ 4.5 
$ 7.4 
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Schedule Of Subsidiaries) (Details)
9 Months Ended
Sep. 30, 2014
Northshore [Member]
 
Related Party Transaction [Line Items]
 
Entity Address, State or Province
Minnesota 
Noncontrolling Interest, Ownership Percentage by Parent
100.00% 
Segment Reporting Information, Description of Products and Services
Iron Ore 
United Taconite [Member]
 
Related Party Transaction [Line Items]
 
Entity Address, State or Province
Minnesota 
Noncontrolling Interest, Ownership Percentage by Parent
100.00% 
Segment Reporting Information, Description of Products and Services
Iron Ore 
Wabush [Member]
 
Related Party Transaction [Line Items]
 
Entity Address, State or Province
Newfoundland and Labrador/ Quebec, Canada 
Noncontrolling Interest, Ownership Percentage by Parent
100.00% 
Segment Reporting Information, Description of Products and Services
Iron Ore 
Bloom Lake [Member]
 
Related Party Transaction [Line Items]
 
Entity Address, State or Province
Quebec, Canada 
Noncontrolling Interest, Ownership Percentage by Parent
82.80% 
Segment Reporting Information, Description of Products and Services
Iron Ore 
Tilden [Member]
 
Related Party Transaction [Line Items]
 
Entity Address, State or Province
Michigan 
Noncontrolling Interest, Ownership Percentage by Parent
85.00% 
Segment Reporting Information, Description of Products and Services
Iron Ore 
Empire [Member]
 
Related Party Transaction [Line Items]
 
Entity Address, State or Province
Michigan 
Noncontrolling Interest, Ownership Percentage by Parent
79.00% 
Segment Reporting Information, Description of Products and Services
Iron Ore 
Koolyanobbing [Member]
 
Related Party Transaction [Line Items]
 
Entity Address, State or Province
Western Australia 
Noncontrolling Interest, Ownership Percentage by Parent
100.00% 
Segment Reporting Information, Description of Products and Services
Iron Ore 
Pinnacle [Member]
 
Related Party Transaction [Line Items]
 
Entity Address, State or Province
West Virginia 
Noncontrolling Interest, Ownership Percentage by Parent
100.00% 
Segment Reporting Information, Description of Products and Services
Coal 
Oak Grove [Member]
 
Related Party Transaction [Line Items]
 
Entity Address, State or Province
Alabama 
Noncontrolling Interest, Ownership Percentage by Parent
100.00% 
Segment Reporting Information, Description of Products and Services
Coal 
CLCC [Member]
 
Related Party Transaction [Line Items]
 
Entity Address, State or Province
West Virginia 
Noncontrolling Interest, Ownership Percentage by Parent
100.00% 
Segment Reporting Information, Description of Products and Services
Coal 
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Investments In Unconsolidated Ventures) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Schedule of Equity Method Investments [Line Items]
 
 
Investment
$ 32.5 
$ 30.8 
Other Noncurrent Liabilities [Member] |
Hibbing [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Investment
 
(3.9)1
Other Noncurrent Assets [Member] |
Hibbing [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Ownership interest, equity method investment
23.00% 1
 
Investment
8.1 1
 
Other Noncurrent Assets [Member] |
Other Equity Investees [Member]
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Investment
$ 24.4 
$ 34.7 
SEGMENT REPORTING (Narrative) (Details)
9 Months Ended
Sep. 30, 2014
Facility
U.S. Iron Ore [Member]
 
Segment Reporting Information [Line Items]
 
Number of mines (in number of facilities)
Eastern Canadian Iron Ore [Member]
 
Segment Reporting Information [Line Items]
 
Number of mines (in number of facilities)
Asia Pacific Iron Ore [Member]
 
Segment Reporting Information [Line Items]
 
Number of mines (in number of facilities)
Metallurgical Coal Mines [Member] |
North American Coal [Member]
 
Segment Reporting Information [Line Items]
 
Number of mines (in number of facilities)
Thermal Coal Mines [Member] |
North American Coal [Member]
 
Segment Reporting Information [Line Items]
 
Number of mines (in number of facilities)
SEGMENT REPORTING (Schedule Of Segment Reporting Information, By Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Segment Reporting Information [Line Items]
 
 
 
 
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
$ (6,887.2)
$ 113.9 
$ (6,943.4)
$ 376.0 
Revenues from producet sales and services, percent
100.00% 
100.00% 
100.00% 
100.00% 
Revenues from product sales and services
1,298.2 
1,546.6 
3,339.0 
4,175.6 
Sales Margin
127.5 
348.7 
282.7 
854.8 
Other operating expense
(7,886.6)
(124.7)
(8,104.2)
(200.5)
Other expense
(40.3)
(45.9)
(124.4)
(137.4)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY LOSS FROM VENTURES
(7,799.4)
178.1 
(7,945.9)
516.9 
Depreciation, depletion and amortization
144.0 
153.1 
430.4 
438.0 
EBITDA
(7,617.2)
377.4 
(7,390.4)
1,017.5 
Capital Additions
54.6 1
211.3 1
186.0 1
625.1 1
Interest expense, net
(47.4)
(44.7)
(134.9)
(134.5)
Income Tax Benefit (Expense)
921.4 
(65.7)
1,012.3 
(69.0)
Impairment of goodwill and other long-lived assets
(7,769.1)
(7,773.1)
Adjusted EBITDA
233.3 
423.5 
582.9 
1,045.2 
U.S. Iron Ore [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues from producet sales and services, percent
59.00% 
51.00% 
49.00% 
45.00% 
Revenues from product sales and services
767.4 
782.4 
1,643.3 
1,894.2 
Sales Margin
219.5 
273.5 
461.7 
647.1 
Depreciation, depletion and amortization
25.9 
27.3 
81.2 
82.3 
EBITDA
242.1 
296.9 
538.4 
715.9 
Capital Additions
8.5 1
15.2 1
37.4 1
39.1 1
Adjusted EBITDA
248.7 
305.0 
556.1 
738.0 
Eastern Canadian Iron Ore [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues from producet sales and services, percent
11.00% 
18.00% 
15.00% 
18.00% 
Revenues from product sales and services
148.0 
284.2 
480.3 
743.4 
Sales Margin
(76.8)
(22.0)
(165.0)
(52.3)
Depreciation, depletion and amortization
43.6 
46.8 
127.2 
130.3 
EBITDA
(6,423.2)
(43.8)
(6,537.6)
(9.6)
Capital Additions
37.9 1
181.5 1
112.2 1
535.3 1
Adjusted EBITDA
(33.2)
(8.6)
(49.3)
50.0 
Asia Pacific Iron Ore [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues from producet sales and services, percent
17.00% 
20.00% 
21.00% 
22.00% 
Revenues from product sales and services
212.3 
301.7 
699.6 
899.5 
Sales Margin
9.1 
99.0 
111.4 
255.3 
Depreciation, depletion and amortization
42.2 
38.0 
123.6 
116.1 
EBITDA
(330.9)
138.1 
(148.7)
367.6 
Capital Additions
3.1 1
10.4 1
8.3 1
8.6 1
Adjusted EBITDA
46.1 
140.9 
234.5 
375.5 
North American Coal [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues from producet sales and services, percent
13.00% 
11.00% 
15.00% 
15.00% 
Revenues from product sales and services
170.5 
178.3 
515.8 
638.5 
Sales Margin
(24.3)
(1.8)
(125.4)
6.6 
Depreciation, depletion and amortization
30.3 
38.8 
92.2 
99.7 
EBITDA
(827.5)
31.0 
(875.6)
85.4 
Capital Additions
4.6 1
2.0 1
24.8 1
37.2 1
Adjusted EBITDA
6.1 
37.4 
(32.2)
103.2 
All Other Segments [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Sales Margin
(1.9)
Depreciation, depletion and amortization
2.0 
2.2 
6.2 
9.6 
Capital Additions
0.5 1
2.2 1
3.3 1
4.9 1
Other Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
EBITDA
(277.7)
(44.8)
(366.9)
(141.8)
Adjusted EBITDA
(34.4)
(51.2)
(126.2)
(221.5)
EBITDA Calculation [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Depreciation, depletion and amortization
(144.0)
(153.1)
(430.4)
(438.0)
Adjusted EBITDA Calculation [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Wabush mine related costs
(64.0)
(13.0)
(122.3)
(2.3)
Foreign Exchange Remeasurement
26.4 
(14.1)
8.4 
36.5 
Proxy contest and change in control costs in SG&A
(21.9)
(26.2)
Litigation Judgment Costs
(9.6)
(9.6)
Severance Costs in SG&A
(1.9)
(8.1)
(12.6)
(8.1)
Wabush [Member] |
Adjusted EBITDA Calculation [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Sales Margin
$ (20.0)
$ (1.3)
$ (47.5)
$ (44.2)
SEGMENT REPORTING Segment Reporting (Summary of Assets by Segment) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
Assets
$ 4,811.2 
$ 13,121.9 
U.S. Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
1,715.8 
1,671.6 
Eastern Canadian Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
1,113.2 
7,915.5 
Asia Pacific Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
577.2 
1,078.4 
North American Coal [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
904.0 
1,841.8 
All Other Segments [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
217.0 
455.6 
Total Segment Assets [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
4,527.2 
12,962.9 
Corporate [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
$ 284.0 
$ 159.0 
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Canadian Dollar Foreign Exchange Contracts Hedge Prior to De Designation [Member]
Sep. 30, 2013
Canadian Dollar Foreign Exchange Contracts Hedge Prior to De Designation [Member]
Sep. 30, 2014
Canadian Dollar Foreign Exchange Contracts Hedge Prior to De Designation [Member]
Sep. 30, 2013
Canadian Dollar Foreign Exchange Contracts Hedge Prior to De Designation [Member]
Sep. 30, 2014
Australian Dollar Foreign Exchange Contract Hedge Designation [Member]
Product Revenues [Member]
Sep. 30, 2013
Australian Dollar Foreign Exchange Contract Hedge Designation [Member]
Product Revenues [Member]
Sep. 30, 2014
Australian Dollar Foreign Exchange Contract Hedge Designation [Member]
Product Revenues [Member]
Sep. 30, 2013
Australian Dollar Foreign Exchange Contract Hedge Designation [Member]
Product Revenues [Member]
Sep. 30, 2014
Australian Dollar Foreign Exchange Contract Hedge Designation [Member]
Designated as Hedging Instrument [Member]
Dec. 31, 2013
Australian Dollar Foreign Exchange Contract Hedge Designation [Member]
Designated as Hedging Instrument [Member]
Sep. 30, 2014
Australian Dollar Foreign Exchange Contract Hedge Designation [Member]
Designated as Hedging Instrument [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Sep. 30, 2014
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member]
Cost of Sales [Member]
Sep. 30, 2013
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member]
Cost of Sales [Member]
Sep. 30, 2014
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member]
Cost of Sales [Member]
Sep. 30, 2013
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member]
Cost of Sales [Member]
Sep. 30, 2014
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member]
Designated as Hedging Instrument [Member]
Dec. 31, 2013
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member]
Designated as Hedging Instrument [Member]
Sep. 30, 2014
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member]
Designated as Hedging Instrument [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Sep. 30, 2014
Interest Rate Swap [Member]
Other Nonoperating Income (Expense) [Member]
Sep. 30, 2013
Interest Rate Swap [Member]
Other Nonoperating Income (Expense) [Member]
Sep. 30, 2014
Interest Rate Swap [Member]
Other Nonoperating Income (Expense) [Member]
Sep. 30, 2013
Interest Rate Swap [Member]
Other Nonoperating Income (Expense) [Member]
Jun. 30, 2014
Interest Rate Swap [Member]
Designated as Hedging Instrument [Member]
Sep. 30, 2014
Canadian Dollar Foreign Exchange Contracts Hedge De Designated [Member] [Member]
Not Designated as Hedging Instrument [Member]
Dec. 31, 2013
Canadian Dollar Foreign Exchange Contracts Hedge De Designated [Member] [Member]
Not Designated as Hedging Instrument [Member]
Sep. 30, 2014
Canadian Dollar Foreign Exchange Contracts Hedge De Designated [Member] [Member]
Not Designated as Hedging Instrument [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Sep. 30, 2014
Foreign Exchange Contract [Member]
Cost of Sales [Member]
Sep. 30, 2013
Foreign Exchange Contract [Member]
Cost of Sales [Member]
Sep. 30, 2014
Foreign Exchange Contract [Member]
Cost of Sales [Member]
Sep. 30, 2013
Foreign Exchange Contract [Member]
Cost of Sales [Member]
Sep. 30, 2014
Customer Supply Agreement [Member]
Not Designated as Hedging Instrument [Member]
Product Revenues [Member]
Sep. 30, 2013
Customer Supply Agreement [Member]
Not Designated as Hedging Instrument [Member]
Product Revenues [Member]
Sep. 30, 2014
Customer Supply Agreement [Member]
Not Designated as Hedging Instrument [Member]
Product Revenues [Member]
Sep. 30, 2013
Customer Supply Agreement [Member]
Not Designated as Hedging Instrument [Member]
Product Revenues [Member]
Sep. 30, 2014
Customer Supply Agreement [Member]
Not Designated as Hedging Instrument [Member]
Derivative Financial Instruments, Assets [Member]
Dec. 31, 2013
Customer Supply Agreement [Member]
Not Designated as Hedging Instrument [Member]
Derivative Financial Instruments, Assets [Member]
Sep. 30, 2014
Provisional Pricing Arrangements [Member]
Product Revenues [Member]
Sep. 30, 2013
Provisional Pricing Arrangements [Member]
Product Revenues [Member]
Sep. 30, 2014
Provisional Pricing Arrangements [Member]
Product Revenues [Member]
Sep. 30, 2013
Provisional Pricing Arrangements [Member]
Product Revenues [Member]
Sep. 30, 2014
Provisional Pricing Arrangements [Member]
Not Designated as Hedging Instrument [Member]
U.S. Iron Ore, Eastern Canadian Iron Ore And Asia Pacific Iron Ore [Member]
Product Revenues [Member]
Sep. 30, 2013
Provisional Pricing Arrangements [Member]
Not Designated as Hedging Instrument [Member]
U.S. Iron Ore, Eastern Canadian Iron Ore And Asia Pacific Iron Ore [Member]
Product Revenues [Member]
Sep. 30, 2014
Provisional Pricing Arrangements [Member]
Not Designated as Hedging Instrument [Member]
U.S. Iron Ore, Eastern Canadian Iron Ore And Asia Pacific Iron Ore [Member]
Product Revenues [Member]
Sep. 30, 2013
Provisional Pricing Arrangements [Member]
Not Designated as Hedging Instrument [Member]
U.S. Iron Ore, Eastern Canadian Iron Ore And Asia Pacific Iron Ore [Member]
Product Revenues [Member]
Sep. 30, 2014
Provisional Pricing Arrangements [Member]
Not Designated as Hedging Instrument [Member]
U.S. Iron Ore, Eastern Canadian Iron Ore And Asia Pacific Iron Ore [Member]
Derivative Financial Instruments, Assets [Member]
Dec. 31, 2013
Provisional Pricing Arrangements [Member]
Not Designated as Hedging Instrument [Member]
U.S. Iron Ore, Eastern Canadian Iron Ore And Asia Pacific Iron Ore [Member]
Derivative Financial Instruments, Assets [Member]
Sep. 30, 2014
Provisional Pricing Arrangements [Member]
Not Designated as Hedging Instrument [Member]
U.S. Iron Ore, Eastern Canadian Iron Ore And Asia Pacific Iron Ore [Member]
Derivative Financial Instruments, Liabilities [Member]
Dec. 31, 2013
Provisional Pricing Arrangements [Member]
Not Designated as Hedging Instrument [Member]
U.S. Iron Ore, Eastern Canadian Iron Ore And Asia Pacific Iron Ore [Member]
Derivative Financial Instruments, Liabilities [Member]
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
 
 
 
 
 
 
 
 
$ 285.0 
$ 323.0 
 
 
 
 
 
$ 257.4 
$ 285.9 
 
 
 
 
 
$ 250.0 
$ 0 
$ 74.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.1 
0.1 
0.3 
0.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
59.5 
75.5 
98.0 
103.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3.3)
 
 
 
 
 
 
(3.1)
24.3 
(23.3)
(6.8)
 
 
 
 
 
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
0.6 
(16.2)
(18.8)
(12.0)
(0.5)
1.6 
(8.9)
(11.2)
(4.5)
 
 
 
(1.0)
(7.3)
(7.1)
(7.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount that will be reclassified to product revenues in the next 12 months upon settlement of the related contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(7.4)
 
 
 
 
 
 
(5.0)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of gain/(loss) recognized in income on derivative
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
62.6 
53.9 
124.6 
113.4 
 
 
 
 
 
 
(3.1)
24.3 
(23.3)
(6.8)
 
 
 
 
Derivative assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
54.5 
55.8 
 
 
 
 
 
 
 
 
3.1 
 
 
Derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 23.3 
$ 10.3 
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule Of Derivative Instruments In Statement Of Financial Position, Fair Value) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
$ 54.5 
$ 59.2 
Derivative liability, fair value
40.7 
39.3 
Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
0.3 
Derivative liability, fair value
17.4 
27.9 
Not Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
54.5 
58.9 
Derivative liability, fair value
23.3 
11.4 
Fair Value, Inputs, Level 2 [Member] |
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Derivative Financial Instruments, Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
Fair Value, Inputs, Level 2 [Member] |
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member] |
Derivative Financial Instruments, Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability, fair value
2.1 
Fair Value, Inputs, Level 2 [Member] |
Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Derivative Financial Instruments, Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
0.3 
Fair Value, Inputs, Level 2 [Member] |
Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Derivative Financial Instruments, Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability, fair value
17.4 
25.8 
Fair Value, Inputs, Level 2 [Member] |
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Derivative Financial Instruments, Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
Fair Value, Inputs, Level 2 [Member] |
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member] |
Derivative Financial Instruments, Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability, fair value
1.1 
Market Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Customer Supply Agreement [Member] |
Derivative Financial Instruments, Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
54.5 
55.8 
Market Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Customer Supply Agreement [Member] |
Derivative Financial Instruments, Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability, fair value
Market Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Provisional Pricing Arrangements [Member] |
Derivative Financial Instruments, Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset, fair value
3.1 
Market Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Provisional Pricing Arrangements [Member] |
Derivative Financial Instruments, Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative liability, fair value
$ 23.3 
$ 10.3 
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Statements Of Financial Performance Location Table) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Derivative [Line Items]
 
 
 
 
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
$ (20.0)
$ 12.1 
$ (12.6)
$ (35.1)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
0.6 
(16.2)
(18.8)
(12.0)
Australian Dollar Foreign Exchange Contract Hedge Designation [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
(12.6)
2.9 
(3.4)
(25.2)
Australian Dollar Foreign Exchange Contract Hedge Designation [Member] |
Product Revenues [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
1.6 
(8.9)
(11.2)
(4.5)
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
(7.4)
9.2 
(9.2)
(9.9)
Canadian Dollar Foreign Exchange Contracts Hedge Designation [Member] |
Cost of Sales [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
(1.0)
(7.3)
(7.1)
(7.5)
Canadian Dollar Foreign Exchange Contracts Hedge Prior to De Designation [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
$ 0 
$ 0 
$ (0.5)
$ 0 
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule Of Derivatives Not Designated As Hedging Instruments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
$ 59.5 
$ 75.5 
$ 98.0 
$ 103.9 
Foreign Exchange Contract [Member] |
Cost of Sales [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
(3.3)
Commodity Contract [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
(2.7)
(2.7)
Customer Supply Agreements [Member] |
Product Revenues [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
62.6 
53.9 
124.6 
113.4 
Provisional Pricing Arrangements [Member] |
Product Revenues [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
$ (3.1)
$ 24.3 
$ (23.3)
$ (6.8)
INVENTORIES (Narrative) (Details) (Cost of Sales [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Eastern Canadian Iron Ore [Member]
 
 
 
 
Inventory [Line Items]
 
 
 
 
Inventory Write-down
$ 2.6 
 
$ 18.6 
 
North American Coal [Member]
 
 
 
 
Inventory [Line Items]
 
 
 
 
Inventory Write-down
5.0 
2.6 
42.1 
5.3 
Bloom Lake [Member] |
Eastern Canadian Iron Ore [Member]
 
 
 
 
Inventory [Line Items]
 
 
 
 
Inventory Write-down
1.9 
 
 
 
Wabush [Member] |
Eastern Canadian Iron Ore [Member]
 
 
 
 
Inventory [Line Items]
 
 
 
 
Inventory Write-down
0.7 
 
 
 
Pellets [Member] |
Wabush [Member]
 
 
 
 
Inventory [Line Items]
 
 
 
 
Inventory Write-down
 
 
 
11.1 
Unsaleable Inventory Impairment Charge
 
 
 
10.6 
Sinter feed [Member] |
Eastern Canadian Iron Ore [Member]
 
 
 
 
Inventory [Line Items]
 
 
 
 
Inventory Write-down
 
$ 5.9 
 
$ 10.6 
INVENTORIES (Schedule Of Inventories) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Inventory, Net [Abstract]
 
 
Finished Goods
$ 376.2 
$ 256.5 
Work-in Process
140.5 
134.9 
Total Inventory
516.7 
391.4 
U.S. Iron Ore [Member]
 
 
Inventory, Net [Abstract]
 
 
Finished Goods
279.5 
92.1 
Work-in Process
23.5 
13.0 
Total Inventory
303.0 
105.1 
Eastern Canadian Iron Ore [Member]
 
 
Inventory, Net [Abstract]
 
 
Finished Goods
18.2 
65.3 
Work-in Process
15.8 
48.1 
Total Inventory
34.0 
113.4 
Asia Pacific Iron Ore [Member]
 
 
Inventory, Net [Abstract]
 
 
Finished Goods
25.8 
39.7 
Work-in Process
85.1 
50.6 
Total Inventory
110.9 
90.3 
North American Coal [Member]
 
 
Inventory, Net [Abstract]
 
 
Finished Goods
52.7 
59.4 
Work-in Process
16.1 
23.2 
Total Inventory
$ 68.8 
$ 82.6 
PROPERTY, PLANT AND EQUIPMENT (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Construction in Progress [Member]
Sep. 30, 2014
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
Depreciation And Depletion
$ 141.3 
$ 148.3 
$ 422.1 
$ 423.1 
 
 
Accumulated amount of capitalized interest included within construction in progress
 
 
 
 
31.4 
Interest costs capitalized during the period
 
 
 
 
17.4 
 
Tangible Asset Impairment Charges
$ 7,674.3 
 
$ 7,699.6 
 
 
 
PROPERTY, PLANT AND EQUIPMENT (Value Of Each Of The Major Classes Of Consolidated Depreciable Assets) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 4,174.5 
$ 13,570.9 
Accumulated Depreciation and Depletion, Property, Plant and Equipment
(966.6)
(2,417.5)
Property, plant and equipment, net
3,207.9 
11,153.4 
Land Rights And Mineral Rights [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
1,947.6 
7,819.6 
Office And Information Technology [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
80.7 
125.7 
Buildings [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
88.9 
255.2 
Mining Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
1,399.5 
1,819.3 
Processing Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
361.9 
2,148.6 
Electric Power Facilities [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
57.4 
114.3 
Port Facilities [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
27.6 
99.4 
Interest Capitalized During Construction [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
18.8 
23.8 
Land Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
32.5 
69.3 
Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
65.5 
104.4 
Construction in Progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 94.1 
$ 991.3 
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Goodwill [Line Items]
 
 
 
 
Below Market Sales Contract, Remaining Life
 
 
3 years 
 
Product
$ 1,190.8 
$ 1,454.6 
$ 3,070.3 
$ 3,928.8 
Cost of Sales [Member]
 
 
 
 
Goodwill [Line Items]
 
 
 
 
Amortization expense relating to intangible assets
2.8 
4.8 
8.3 
14.1 
Product Revenues [Member] |
Sales Revenue, Goods, Net [Member]
 
 
 
 
Goodwill [Line Items]
 
 
 
 
Product
$ 7.7 
$ 14.7 
$ 15.4 
$ 31.3 
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES (Schedule Of Goodwill) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Goodwill [Roll Forward]
 
 
Beginning Balance
$ 74.5 
$ 167.4 
Arising in business combinations
Impairment
(73.5)
(80.9)
Impact of foreign currency translation
1.0 
(12.0)
Ending Balance
2.0 
74.5 
Accumulated goodwill impairment loss
(1,182.2)
(1,108.7)
U.S. Iron Ore [Member]
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
2.0 
2.0 
Arising in business combinations
Impairment
Impact of foreign currency translation
Ending Balance
2.0 
2.0 
Accumulated goodwill impairment loss
Eastern Canadian Iron Ore [Member]
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
Arising in business combinations
Impairment
Impact of foreign currency translation
Ending Balance
Accumulated goodwill impairment loss
(1,000.0)
(1,000.0)
Asia Pacific Iron Ore [Member]
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
72.5 
84.5 
Arising in business combinations
Impairment
(73.5)
Impact of foreign currency translation
1.0 
(12.0)
Ending Balance
72.5 
Accumulated goodwill impairment loss
(73.5)
North American Coal [Member]
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
Arising in business combinations
Impairment
Impact of foreign currency translation
Ending Balance
Accumulated goodwill impairment loss
(27.8)
(27.8)
Other Segment [Member]
 
 
Goodwill [Roll Forward]
 
 
Beginning Balance
80.9 
Arising in business combinations
Impairment
(80.9)
Impact of foreign currency translation
Ending Balance
Accumulated goodwill impairment loss
$ (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
Sep. 30, 2014
Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
$ 148.3 
$ 184.5 
Definite lived intangible assets - Accumulated Amortization
(70.9)
(89.1)
Definite lived intangible assets - Net Carrying Amount
77.4 
95.4 
Permits [Member] |
Other Assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
91.6 
127.4 
Definite lived intangible assets - Accumulated Amortization
(16.8)
(35.9)
Definite lived intangible assets - Net Carrying Amount
74.8 
91.5 
Utility Contracts [Member] |
Other Assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
54.3 
54.7 
Definite lived intangible assets - Accumulated Amortization
(53.9)
(53.1)
Definite lived intangible assets - Net Carrying Amount
0.4 
1.6 
Leases [Member] |
Other Assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
2.4 
2.4 
Definite lived intangible assets - Accumulated Amortization
(0.2)
(0.1)
Definite lived intangible assets - Net Carrying Amount
2.2 
2.3 
Below Market Sales Contracts [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
(228.9)
(228.9)
Definite lived intangible assets - Accumulated Amortization
175.0 
159.7 
Definite lived intangible assets - Net Carrying Amount
(53.9)
(69.2)
Below Market Sales Contracts [Member] |
Other Current Liabilities [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
(23.0)
(23.0)
Definite lived intangible assets - Accumulated Amortization
   
   
Definite lived intangible assets - Net Carrying Amount
(23.0)
(23.0)
Below Market Sales Contracts [Member] |
Other Liabilities [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Definite lived intangible assets - Gross Carrying Amount
(205.9)
(205.9)
Definite lived intangible assets - Accumulated Amortization
175.0 
159.7 
Definite lived intangible assets - Net Carrying Amount
$ (30.9)
$ (46.2)
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES (Estimated Amortization Expense Relating To Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Estimated amortization expense, intangible assets [Abstract]
 
2014 (remaining three months)
$ 1.4 
2015
5.6 
2016
5.3 
2017
5.1 
2018
5.3 
2019
5.3 
Total
$ 28.0 
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
9 Months Ended
Sep. 30, 2014
Estimated recognition of product revenues, below-market sales contracts [Abstract]
 
2014 (remaining three months)
$ 7.8 
2015
23.0 
2016
23.1 
Total
$ 53.9 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2014
Sep. 30, 2014
Dec. 31, 2013
Fair Value, Assets And Liabilities Components [Line Items]
 
 
 
Management Estimate of 62% Fe
 
62.00% 
 
Goodwill, Impairment Loss
 
$ 73.5 
$ 80.9 
Tangible Asset Impairment Charges
7,674.3 
7,699.6 
 
Amapa [Member]
 
 
 
Fair Value, Assets And Liabilities Components [Line Items]
 
 
 
Equity Method Investments, Fair Value Disclosure
 
 
Equity Method Investment, Other than Temporary Impairment
 
 
67.6 
Asia Pacific Iron Ore [Member]
 
 
 
Fair Value, Assets And Liabilities Components [Line Items]
 
 
 
Goodwill, Impairment Loss
 
73.5 
 
Wabush and Cliffs Chromite Ontario and Cliffs Chromite Far North [Member]
 
 
 
Fair Value, Assets And Liabilities Components [Line Items]
 
 
 
Tangible Asset Impairment Charges
 
 
155.4 
Cliffs Chromite Ontario and Cliffs Chromite Far North [Member]
 
 
 
Fair Value, Assets And Liabilities Components [Line Items]
 
 
 
Goodwill, Impairment Loss
 
 
$ 80.9 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value Of Assets And Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Assets:
 
 
Cash equivalents
$ 120.0 
$ 85.0 
Derivative assets
54.5 
58.9 
Marketable Securities
6.1 
21.4 
Foreign exchange contracts
   
0.3 
Total
180.6 
165.6 
Liabilities:
 
 
Derivative liabilities
23.3 
12.4 
Foreign exchange contracts
17.4 
26.9 
Total
40.7 
39.3 
Fair Value, Inputs, Level 1 [Member]
 
 
Assets:
 
 
Cash equivalents
120.0 
85.0 
Derivative assets
   
   
Marketable Securities
6.1 
21.4 
Foreign exchange contracts
   
   
Total
126.1 
106.4 
Liabilities:
 
 
Derivative liabilities
   
   
Foreign exchange contracts
   
   
Total
   
   
Fair Value, Inputs, Level 2 [Member]
 
 
Assets:
 
 
Cash equivalents
   
   
Derivative assets
   
   
Marketable Securities
   
   
Foreign exchange contracts
0.3 
Total
   
0.3 
Liabilities:
 
 
Derivative liabilities
   
2.1 
Foreign exchange contracts
17.4 
26.9 
Total
17.4 
29.0 
Fair Value, Inputs, Level 3 [Member]
 
 
Assets:
 
 
Cash equivalents
   
   
Derivative assets
54.5 
58.9 
Marketable Securities
   
   
Foreign exchange contracts
   
   
Total
54.5 
58.9 
Liabilities:
 
 
Derivative liabilities
23.3 
10.3 
Foreign exchange contracts
   
   
Total
$ 23.3 
$ 10.3 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule Of Quantitative Inputs And Assumptions For Level 3 Assets And Liabilities) (Details) (USD $)
9 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative asset, fair value
$ 54,500,000 
$ 59,200,000 
Derivative liability, fair value
40,700,000 
39,300,000 
Management Estimate of 62% Fe
62.00% 
 
Not Designated as Hedging Instrument [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative asset, fair value
54,500,000 
58,900,000 
Derivative liability, fair value
23,300,000 
11,400,000 
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Managements Estimate Of 62% Fee [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Management Estimate of 62% Fe
62.00% 
 
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach Valuation Technique [Member] |
Provisional Pricing Arrangements [Member] |
Managements Estimate Of 62% Fee [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value measurement with unobservable inputs derivative asset range
78 
 
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach Valuation Technique [Member] |
Customer Supply Agreement [Member] |
Hot-Rolled Steel Estimate [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value measurement with unobservable inputs derivative asset range
650 
 
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach Valuation Technique [Member] |
Customer Supply Agreement [Member] |
Hot-Rolled Steel Estimate [Member] |
Minimum [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value measurement with unobservable inputs derivative asset range
635 
 
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach Valuation Technique [Member] |
Customer Supply Agreement [Member] |
Hot-Rolled Steel Estimate [Member] |
Maximum [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value measurement with unobservable inputs derivative asset range
665 
 
Derivative Financial Instruments, Assets [Member] |
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach Valuation Technique [Member] |
Provisional Pricing Arrangements [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative asset, fair value
3,100,000 
Derivative Financial Instruments, Assets [Member] |
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach Valuation Technique [Member] |
Customer Supply Agreement [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative asset, fair value
54,500,000 
55,800,000 
Derivative Financial Instruments, Liabilities [Member] |
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach Valuation Technique [Member] |
Provisional Pricing Arrangements [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative liability, fair value
23,300,000 
10,300,000 
Derivative Financial Instruments, Liabilities [Member] |
Fair Value, Inputs, Level 3 [Member] |
Not Designated as Hedging Instrument [Member] |
Market Approach Valuation Technique [Member] |
Customer Supply Agreement [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative liability, fair value
$ 0 
$ 0 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, Assets and Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
 
 
 
 
Beginning balance - January 1
$ 33.0 
$ 45.1 
$ 58.9 
$ 62.4 
Total gains
 
 
 
 
Included in earnings
62.6 
57.6 
124.6 
118.0 
Settlements
(41.1)
(36.0)
(129.0)
(113.7)
Transfers into Level 3
Transfers out of Level 3
Ending balance - September 30
54.5 
66.7 
54.5 
66.7 
Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date
62.6 
57.6 
124.6 
118.0 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
 
 
 
 
Beginning balance - January 1
(20.2)
(32.0)
(10.3)
(11.3)
Total gains
 
 
 
 
Included in earnings
(3.1)
20.6 
(23.3)
(11.4)
Settlements
10.3 
11.3 
Transfers into Level 3
Transfers out of Level 3
Ending balance - September 30
(23.3)
(11.4)
(23.3)
(11.4)
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date
$ (3.1)
$ 20.6 
$ (23.3)
$ (11.4)
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Value And Fair Value Of Financial Instruments Disclosure) (Details) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Debt Instrument, Face Amount
$ 4,528,000,000 
$ 4,814,800,000 
Long-term debt:
 
 
Long-term Debt
3,247,200,000 
3,043,500,000 
Total long-term debt, carrying value
3,012,500,000 
3,022,600,000 
$700 Million 4.875% 2021 Senior Note [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Debt Instrument, Face Amount
700,000,000 
700,000,000 
Long-term debt:
 
 
Long-term Debt
699,500,000 1
699,400,000 1
Senior Notes - $1.3 Billion [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Debt Instrument, Face Amount
1,300,000,000.0 
1,300,000,000.0 
Senior Notes - $400 Million [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Debt Instrument, Face Amount
400,000,000 
400,000,000 
Long-term debt:
 
 
Long-term Debt
398,600,000 2
398,400,000 2
Senior Notes - $500 Million [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Debt Instrument, Face Amount
500,000,000.0 
500,000,000.0 
Long-term debt:
 
 
Long-term Debt
497,100,000 3
496,500,000 3
Revolving Credit Facility [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Debt Instrument, Face Amount
1,250,000,000 
1,750,000,000 
Long-term debt:
 
 
Revolving loan, carrying value
4
4
Equipment Loans [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Debt Instrument, Face Amount
164,800,000 
164,800,000 
Long-term debt:
 
 
Long-term Debt
146,100,000 
161,700,000 
Interest Rate Swap [Member]
 
 
Long-term debt:
 
 
Fair Value Adjustment to Interest Rate Hedge
2,900,000 
(2,100,000)
Fair Value, Inputs, Level 2 [Member]
 
 
Long-term debt:
 
 
Total long-term debt, fair value
2,416,600,000 
3,217,700,000 
Fair Value, Inputs, Level 2 [Member] |
$700 Million 4.875% 2021 Senior Note [Member]
 
 
Long-term debt:
 
 
Debt Instrument, Fair Value Disclosure
539,600,000 
718,200,000 
Fair Value, Inputs, Level 2 [Member] |
Senior Notes - $1.3 Billion [Member]
 
 
Long-term debt:
 
 
Debt Instrument, Fair Value Disclosure
974,700,000 
1,404,900,000 
Fair Value, Inputs, Level 2 [Member] |
Senior Notes - $400 Million [Member]
 
 
Long-term debt:
 
 
Debt Instrument, Fair Value Disclosure
341,800,000 
432,100,000 
Fair Value, Inputs, Level 2 [Member] |
Senior Notes - $500 Million [Member]
 
 
Long-term debt:
 
 
Debt Instrument, Fair Value Disclosure
433,000,000 
523,800,000 
Fair Value, Inputs, Level 2 [Member] |
Revolving Credit Facility [Member]
 
 
Long-term debt:
 
 
Revolving loan, fair value
Fair Value, Inputs, Level 2 [Member] |
Equipment Loans [Member]
 
 
Long-term debt:
 
 
Debt Instrument, Fair Value Disclosure
124,600,000 
140,800,000 
Fair Value, Inputs, Level 2 [Member] |
Interest Rate Swap [Member]
 
 
Long-term debt:
 
 
Fair Value Adjustment to Interest Rate Hedge
2,900,000 
(2,100,000)
Reported Value Measurement [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Long-term debt:
 
 
Total long-term debt, carrying value
3,012,500,000 
3,022,600,000 
Reported Value Measurement [Member] |
Fair Value, Inputs, Level 2 [Member] |
$700 Million 4.875% 2021 Senior Note [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Senior Notes, Noncurrent
699,500,000 
699,400,000 
Reported Value Measurement [Member] |
Fair Value, Inputs, Level 2 [Member] |
Senior Notes - $1.3 Billion [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Senior Notes, Noncurrent
1,289,800,000 
1,289,600,000 
Reported Value Measurement [Member] |
Fair Value, Inputs, Level 2 [Member] |
Senior Notes - $400 Million [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Senior Notes, Noncurrent
398,600,000 
398,400,000 
Reported Value Measurement [Member] |
Fair Value, Inputs, Level 2 [Member] |
Senior Notes - $500 Million [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Senior Notes, Noncurrent
497,100,000 
496,500,000.0 
Reported Value Measurement [Member] |
Fair Value, Inputs, Level 2 [Member] |
Revolving Credit Facility [Member]
 
 
Long-term debt:
 
 
Revolving loan, carrying value
Reported Value Measurement [Member] |
Fair Value, Inputs, Level 2 [Member] |
Equipment Loans [Member]
 
 
Long-term debt:
 
 
Long-term Debt
124,600,000 
140,800,000 
Reported Value Measurement [Member] |
Fair Value, Inputs, Level 2 [Member] |
Interest Rate Swap [Member]
 
 
Long-term debt:
 
 
Fair Value Adjustment to Interest Rate Hedge
$ 2,900,000 
$ (2,100,000)
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value Measurements, Nonrecurring) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2014
Sep. 30, 2014
Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Goodwill, Impairment Loss
 
$ 73.5 
$ 80.9 
Tangible Asset Impairment Charges
7,674.3 
7,699.6 
 
Assets, Fair Value Disclosure, Nonrecurring
1,457.2 
1,457.2 
47.9 
Impairment of goodwill and other long-lived assets
 
7,782.3 
318.4 
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets, Fair Value Disclosure, Nonrecurring
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets, Fair Value Disclosure, Nonrecurring
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets, Fair Value Disclosure, Nonrecurring
1,457.2 
1,457.2 
47.9 
Amapa [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Equity Method Investments, Fair Value Disclosure
 
 
Equity Method Investment, Other than Temporary Impairment
 
 
67.6 
Amapa [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Equity Method Investments, Fair Value Disclosure
 
 
Amapa [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Equity Method Investments, Fair Value Disclosure
 
 
Amapa [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Equity Method Investments, Fair Value Disclosure
 
 
Global Exploration Investment in Venture [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Equity Method Investments, Fair Value Disclosure
 
Equity Method Investment, Other than Temporary Impairment
 
9.2 
 
Global Exploration Investment in Venture [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Equity Method Investments, Fair Value Disclosure
 
Global Exploration Investment in Venture [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Equity Method Investments, Fair Value Disclosure
 
Global Exploration Investment in Venture [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Equity Method Investments, Fair Value Disclosure
 
Asia Pacific Iron Ore [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Goodwill, Fair Value Disclosure
 
Goodwill, Impairment Loss
 
73.5 
 
Asia Pacific Iron Ore [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Goodwill, Fair Value Disclosure
 
Asia Pacific Iron Ore [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Goodwill, Fair Value Disclosure
 
Asia Pacific Iron Ore [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Goodwill, Fair Value Disclosure
 
Cliffs Chromite Ontario and Cliffs Chromite Far North [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Goodwill, Fair Value Disclosure
 
 
Goodwill, Impairment Loss
 
 
80.9 
Cliffs Chromite Ontario and Cliffs Chromite Far North [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Goodwill, Fair Value Disclosure
 
 
Cliffs Chromite Ontario and Cliffs Chromite Far North [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Goodwill, Fair Value Disclosure
 
 
Cliffs Chromite Ontario and Cliffs Chromite Far North [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Goodwill, Fair Value Disclosure
 
 
Ferroalloys [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
12.2 
12.2 
 
Tangible Asset Impairment Charges
 
259.5 
 
Ferroalloys [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Ferroalloys [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Ferroalloys [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
12.2 
12.2 
 
Other Reporting Units [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Tangible Asset Impairment Charges
 
3.1 
 
Other Reporting Units [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Other Reporting Units [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Other Reporting Units [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Wabush and Cliffs Chromite Ontario and Cliffs Chromite Far North [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
 
46.3 
Tangible Asset Impairment Charges
 
 
155.4 
Wabush and Cliffs Chromite Ontario and Cliffs Chromite Far North [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
 
Wabush and Cliffs Chromite Ontario and Cliffs Chromite Far North [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
 
Wabush and Cliffs Chromite Ontario and Cliffs Chromite Far North [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
 
46.3 
Wabush [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Other Asset Impairment Charges
 
 
14.5 
Finite-lived Intangible Assets, Fair Value Disclosure
 
 
1.6 
Wabush [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Finite-lived Intangible Assets, Fair Value Disclosure
 
 
Wabush [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Finite-lived Intangible Assets, Fair Value Disclosure
 
 
Wabush [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Finite-lived Intangible Assets, Fair Value Disclosure
 
 
1.6 
Oak Grove [Member] |
North American Coal [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
58.2 
58.2 
 
Tangible Asset Impairment Charges
 
237.8 
 
Oak Grove [Member] |
North American Coal [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Oak Grove [Member] |
North American Coal [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Oak Grove [Member] |
North American Coal [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
58.2 
58.2 
 
CLCC [Member] |
North American Coal [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
62.6 
62.6 
 
Tangible Asset Impairment Charges
 
195.5 
 
CLCC [Member] |
North American Coal [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
CLCC [Member] |
North American Coal [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
CLCC [Member] |
North American Coal [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
62.6 
62.6 
 
Bloom Lake [Member] |
Eastern Canadian Iron Ore [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
937.2 
937.2 
 
Tangible Asset Impairment Charges
 
6,279.2 
 
Bloom Lake [Member] |
Eastern Canadian Iron Ore [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Bloom Lake [Member] |
Eastern Canadian Iron Ore [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Bloom Lake [Member] |
Eastern Canadian Iron Ore [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
937.2 
937.2 
 
Asia Pacific [Member] |
Asia Pacific Iron Ore [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Finite-lived Intangible Assets, Fair Value Disclosure
 
Asia Pacific Iron Ore [Member] |
Asia Pacific Iron Ore [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
343.4 
343.4 
 
Tangible Asset Impairment Charges
 
291.9 
 
Other Asset Impairment Charges
 
10.1 
 
Finite-lived Intangible Assets, Fair Value Disclosure
11.9 
11.9 
 
Asia Pacific Iron Ore [Member] |
Asia Pacific Iron Ore [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Finite-lived Intangible Assets, Fair Value Disclosure
 
Asia Pacific Iron Ore [Member] |
Asia Pacific Iron Ore [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
343.4 
343.4 
 
Finite-lived Intangible Assets, Fair Value Disclosure
11.9 
11.9 
 
Wabush [Member] |
Eastern Canadian Iron Ore [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
1.0 
1.0 
 
Tangible Asset Impairment Charges
 
12.8 
 
Other Asset Impairment Charges
 
15.2 
 
Finite-lived Intangible Assets, Fair Value Disclosure
 
Wabush [Member] |
Eastern Canadian Iron Ore [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Finite-lived Intangible Assets, Fair Value Disclosure
 
Wabush [Member] |
Eastern Canadian Iron Ore [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Finite-lived Intangible Assets, Fair Value Disclosure
 
Wabush [Member] |
Eastern Canadian Iron Ore [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
1.0 
1.0 
 
Finite-lived Intangible Assets, Fair Value Disclosure
 
Pinnacle [Member] |
North American Coal [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
30.7 
30.7 
 
Tangible Asset Impairment Charges
 
394.5 
 
Pinnacle [Member] |
North American Coal [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Pinnacle [Member] |
North American Coal [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
 
Pinnacle [Member] |
North American Coal [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Property, Plant, and Equipment, Fair Value Disclosure
$ 30.7 
$ 30.7 
 
DEBT AND CREDIT FACILITIES (Narrative) (Details)
3 Months Ended 9 Months Ended
Sep. 30, 2014
USD ($)
Dec. 31, 2013
USD ($)
Sep. 30, 2014
Revolving Credit Facility [Member]
USD ($)
Mar. 31, 2013
Revolving Credit Facility [Member]
Dec. 31, 2013
Revolving Credit Facility [Member]
USD ($)
Sep. 30, 2014
Line of Credit [Member]
USD ($)
Sep. 30, 2014
Line of Credit [Member]
AUD ($)
Dec. 31, 2013
Line of Credit [Member]
USD ($)
Dec. 31, 2013
Line of Credit [Member]
AUD ($)
Sep. 30, 2014
Accounts Receivable Securitization Facility [Member]
USD ($)
Sep. 30, 2014
Accounts Receivable Securitization Facility [Member]
Maximum [Member]
USD ($)
Sep. 30, 2014
Pre-Export Trade Finance Loans [Member]
USD ($)
Sep. 30, 2014
Line of Credit [Member]
USD ($)
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility, borrowing capacity
 
 
 
 
 
$ 26,200,000 
$ 30,000,000 
$ 26,800,000 
$ 30,000,000 
 
 
 
 
Financial covenant, debt to earnings ratio
 
 
 
3.5 
 
 
 
 
 
 
 
 
 
Total Funded Debt to Total Capitalization
 
 
0.45 
 
 
 
 
 
 
 
 
 
 
Financial covenant, interest coverage ratio
 
 
3.5 
2.5 
 
 
 
 
 
 
 
 
 
Maximum Impairment Permitted to be Excluded from Net Worth Calculation for Debt Covenants
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility, amount outstanding
 
 
1
 
1
20,100,000 
22,900,000 
20,500,000 
23,000,000 
 
 
 
 
Credit facility remaining capacity
 
 
1,200,000,000 
 
1,700,000,000 
6,100,000 
7,100,000 
6,300,000 
7,000,000 
 
 
 
 
Stock Repurchase Program, Authorized Amount
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Face Amount
4,528,000,000 
4,814,800,000 
1,250,000,000 
 
1,750,000,000 
 
 
 
 
 
 
 
 
Reduction to Long-Term Line of Credit
 
 
500,000,000 
 
 
 
 
 
 
 
 
 
 
Unamortized Debt Issuance Costs Expensed Due to Change in Borrowing Capacity
 
 
2,800,000 
 
 
 
 
 
 
 
 
 
 
Unamortized Debt Issuance Expense
 
 
9,900,000 
 
 
 
 
 
 
 
 
 
 
Short-term Debt
 
 
 
 
 
 
 
 
 
45,200,000 
110,000,000 
18,000,000 
150,000,000 
Minimum Number of Days Loan Can be Drawn
 
 
 
 
 
 
 
 
 
 
 
 
30 
Maximum Number of Days Loan can be Drawn
 
 
 
 
 
 
 
 
 
 
 
 
90 
Letters of credit outstanding
$ 43,900,000 
$ 48,000,000 
$ 5,200,000 
 
$ 8,400,000 
 
 
 
 
 
 
 
 
DEBT AND CREDIT FACILITIES (Schedule Of Long-Term Debt) (Details) (USD $)
9 Months Ended 12 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Total Face Amount
$ 4,528,000,000 
$ 4,814,800,000 
Letters of credit outstanding
43,900,000 
48,000,000 
Long-term Debt
3,247,200,000 
3,043,500,000 
Current portion of long-term debt
234,700,000 
20,900,000 
Long-term debt noncurrent portion
3,012,500,000 
3,022,600,000 
$700 Million 4.875% 2021 Senior Note [Member]
 
 
Debt Instrument [Line Items]
 
 
Stated interest rate
4.875% 
 
Type
Fixed 
Fixed 
Final Maturity
2021 
2021 
Total Face Amount
700,000,000 
700,000,000 
Long-term Debt
699,500,000 1
699,400,000 1
Debt Instrument, Unamortized Discount
500,000 
600,000 
Imputed interest rate
4.89% 
4.88% 
$500 million 4.80% 2020 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Stated interest rate
4.80% 
 
Type
Fixed 
Fixed 
Final Maturity
2020 
2020 
Total Face Amount
500,000,000 
500,000,000 
Long-term Debt
499,300,000 2
499,200,000 2
Debt Instrument, Unamortized Discount
700,000 
800,000 
Imputed interest rate
4.83% 
4.83% 
$800 Million 6.25% 2040 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Stated interest rate
6.25% 
 
Type
Fixed 
Fixed 
Final Maturity
2040 
2040 
Total Face Amount
800,000,000 
800,000,000 
Long-term Debt
790,500,000 3
790,400,000 3
Debt Instrument, Unamortized Discount
9,500,000 
9,600,000 
Imputed interest rate
6.34% 
6.34% 
$400 Million 5.90% 2020 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Stated interest rate
5.90% 
 
Type
Fixed 
Fixed 
Final Maturity
2020 
2020 
Total Face Amount
400,000,000 
400,000,000 
Long-term Debt
398,600,000 4
398,400,000 4
Debt Instrument, Unamortized Discount
1,400,000 
1,600,000 
Imputed interest rate
5.98% 
5.98% 
$500 Million 3.95% 2018 Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Stated interest rate
3.95% 
 
Type
Fixed 
Fixed 
Final Maturity
2018 
2018 
Total Face Amount
500,000,000.0 
500,000,000.0 
Long-term Debt
497,100,000 5
496,500,000 5
Debt Instrument, Unamortized Discount
2,900,000 
3,500,000 
Imputed interest rate
4.14% 
4.14% 
Revolving Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Type
Variable 
Variable 
Final Maturity
2017 
2017 
Total Face Amount
1,250,000,000 
1,750,000,000 
Credit facility, amount outstanding
6
6
Letters of credit outstanding
5,200,000 
8,400,000 
Imputed interest rate
1.87% 
1.64% 
Credit facility remaining capacity
1,200,000,000 
1,700,000,000 
Equipment Loans [Member]
 
 
Debt Instrument [Line Items]
 
 
Type
Fixed 
Fixed 
Final Maturity
2020 
2020 
Total Face Amount
164,800,000 
164,800,000 
Long-term Debt
146,100,000 
161,700,000 
Short-term Debt [Member]
 
 
Debt Instrument [Line Items]
 
 
Final Maturity
2014/2015 
 
Total Face Amount
213,200,000 
 
Interest Rate Swap [Member]
 
 
Debt Instrument [Line Items]
 
 
Fair Value Adjustment to Interest Rate Hedge
$ 2,900,000 
$ (2,100,000)
DEBT AND CREDIT FACILITIES DEBT AND CREDIT FACILITIES (Schedule of Debt Maturities) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Debt Disclosure [Abstract]
 
Debt Maturities Remainder 2014
$ 218.5 
Debt Maturities 2015
21.8 
Debt Maturities 2016
22.7 
Debt Maturities 2017
23.6 
Debt Maturities 2018
524.7 
Debt Maturities 2019 and After
2,448.0 
Long-term Debt, Maturities, Total
$ 3,259.3 
LEASE OBLIGATIONS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Leases [Abstract]
 
 
 
 
Operating lease expense
$ 5.0 
$ 5.3 
$ 16.3 
$ 19.5 
LEASE OBLIGATIONS (Future Minimum Lease Payments) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Capital Leases
 
2014 (October 1 - December 31)
$ 16.1 
2015
86.6 
2016
35.9 
2017
28.6 
2018
20.9 
2019 and thereafter
35.3 
Total minimum lease payments
223.4 
Amounts representing interest
37.0 
Present value of net minimum lease payments
186.4 1
Operating Leases
 
2014 (April 1 - December 31)
4.7 
2015
14.0 
2016
9.2 
2017
8.2 
2018
6.9 
2019 and thereafter
14.7 
Total minimum lease payments
57.7 
Other Current Liabilities [Member]
 
Capital Leases
 
Present value of net minimum lease payments
78.0 
Other Liabilities [Member]
 
Capital Leases
 
Present value of net minimum lease payments
$ 108.4 
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Environmental Remediation Obligations [Abstract]
 
 
Total environmental and mine closure obligations
$ 310.7 
$ 321.0 
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS (Summary Of Mine Closure Obligations) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Loss Contingencies [Line Items]
 
 
Environmental
$ 5.6 
$ 8.4 
Mine Reclamation and Closing Liability, current and noncurrent
305.1 
312.6 
Total environmental and mine closure obligations
310.7 
321.0 
Less current portion
5.3 
11.3 
Long term environmental and mine closure obligations
305.4 
309.7 
U.S. Iron Ore [Member] |
Owned Or Operating Facilities [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine Reclamation and Closing Liability, current and noncurrent
138.5 
152.2 
Eastern Canadian Iron Ore [Member] |
Owned Or Operating Facilities [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine Reclamation and Closing Liability, current and noncurrent
81.9 
78.2 
Asia Pacific Iron Ore [Member] |
Owned Or Operating Facilities [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine Reclamation and Closing Liability, current and noncurrent
25.8 
25.5 
North American Coal [Member] |
Owned Or Operating Facilities [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine Reclamation and Closing Liability, current and noncurrent
36.2 
34.7 
LTV Steel Mining Company [Member] |
Previously Owned Or Operating Facilities [Member]
 
 
Loss Contingencies [Line Items]
 
 
Mine Reclamation and Closing Liability, current and noncurrent
$ 22.7 
$ 22.0 
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS (Asset Retirement Obligation Disclosure) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Asset Retirement Obligation [Roll Forward]
 
 
Asset retirement obligation at beginning of period
$ 290.6 
$ 231.1 
Accretion expense
10.9 
18.1 
Exchange rate changes
(0.7)
(3.4)
Revision in estimated cash flows
(18.4)
44.8 
Asset retirement obligation at end of period
$ 282.4 
$ 290.6 
PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Pension Plans, Defined Benefit [Member]
 
 
 
 
Definted Benefit Plan Disclosure [Line Items]
 
 
 
 
Pension Contributions
$ 34.2 
$ 36.1 
$ 48.6 
$ 51.2 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
 
 
Definted Benefit Plan Disclosure [Line Items]
 
 
 
 
Other Postretirement Benefit Expense
 
 
$ 0 
$ 14.1 
PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Estimated Net Periodic Benefit Cost) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Pension Plan [Member]
 
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
 
Defined Benefit Plan, Service Cost
$ 7.3 
$ 9.6 
$ 23.2 
$ 29.2 
Defined Benefit Plan, Interest Cost
12.4 
11.2 
37.4 
34.4 
Defined Benefit Plan, Expected Return on Plan Assets
(18.1)
(16.2)
(54.1)
(49.3)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)
0.7 
0.8 
2.0 
2.3 
Defined Benefit Plan, Amortization of Gains (Losses)
3.3 
7.5 
10.5 
22.5 
Defined Benefit Plan, Curtailments
1.7 
2.9 
Defined Benefit Plan, Net Periodic Benefit Cost
7.3 
12.9 
21.9 
39.1 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
 
Defined Benefit Plan, Service Cost
2.1 
3.0 
6.1 
9.2 
Defined Benefit Plan, Interest Cost
4.0 
4.3 
12.1 
13.0 
Defined Benefit Plan, Expected Return on Plan Assets
(4.2)
(5.0)
(12.8)
(15.0)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)
(0.9)
(0.9)
(2.7)
(2.7)
Defined Benefit Plan, Amortization of Gains (Losses)
1.2 
2.9 
3.5 
8.7 
Defined Benefit Plan, Net Periodic Benefit Cost
$ 2.2 
$ 4.3 
$ 6.2 
$ 13.2 
STOCK COMPENSATION PLANS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
2012 Equity Plan [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Performance/vesting period
3 years 
Number of restricted shares granted
0.4 
Number of Additional Shares Available for Issuance Proposed to be Added to the Plan
5.0 
2012 Equity Plan [Member] |
Maximum [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Maximum number of shares that may be issued (in shares)
6.0 
Change in Control [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Allocated Share-based Compensation Expense
$ 11.7 
Two Thousand And Twelve To Two Thousand And Fourteen And The Two Thousand And Thirteen To Two Thousand Fifteen and Two Thousand Fourteen to Two Thousand Sixteen Performance Periods [Member] |
2012 Equity Plan [Member] |
Minimum [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Payout rate, as a percentage of the original grant
0.00% 
Two Thousand And Twelve To Two Thousand And Fourteen And The Two Thousand And Thirteen To Two Thousand Fifteen and Two Thousand Fourteen to Two Thousand Sixteen Performance Periods [Member] |
2012 Equity Plan [Member] |
Maximum [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Payout rate, as a percentage of the original grant
200.00% 
Performance Shares [Member] |
2012 Equity Plan [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Number of performance shares granted
0.8 
Employee Stock Option [Member] |
2012 Equity Plan [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Number of performance shares granted
0.3 
Restricted Stock Units (RSUs) [Member] |
2012 Equity Plan [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Number of performance shares granted
0.4 
STOCK COMPENSATION PLANS (Assumptions Utilized To Estimate Fair Value For Performance Share Grants) (Details) (Performance Shares [Member], USD $)
3 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Performance Shares [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Grant Date Market Price
$ 17.62 
$ 17.54 
$ 20.58 
Average Expected Term (Years)
2 years 5 months 
2 years 7 months 11 days 
2 years 10 months 21 days 
Expected Volatility
51.30% 
54.00% 
54.00% 
Risk-Free Interest Rate
0.83% 
0.54% 
0.54% 
Dividend Yield
3.40% 
2.92% 
2.92% 
Fair Value
$ 19.02 
$ 18.93 
$ 22.21 
Fair Value (Percent of Grant Date Market Price)
107.92% 
107.92% 
107.92% 
INCOME TAXES (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Income Tax Examination [Line Items]
 
 
 
 
Income Tax Expense (Benefit)
$ (921.4)
$ 65.7 
$ (1,012.3)
$ 69.0 
Tax Benefit of Income Not Subject to Tax
 
 
(48.4)
 
CANADA
 
 
 
 
Income Tax Examination [Line Items]
 
 
 
 
Expected Benefit from Intercompany Loan between Canada and Australia
 
 
20.6 
 
UNITED STATES
 
 
 
 
Income Tax Examination [Line Items]
 
 
 
 
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent
 
 
35.00% 
 
Benefit of Intercompany Loan between U.S. and Canada
 
 
$ 27.8 
 
CAPITAL STOCK (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended 2 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 2 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Feb. 21, 2013
Preferred Class A [Member]
Sep. 30, 2014
Preferred Class A [Member]
Sep. 30, 2013
Preferred Class A [Member]
Sep. 30, 2014
Preferred Class A [Member]
Sep. 30, 2013
Preferred Class A [Member]
Sep. 8, 2014
Preferred Class A [Member]
Aug. 1, 2014
Preferred Class A [Member]
May 1, 2014
Preferred Class A [Member]
Feb. 3, 2014
Preferred Class A [Member]
Dec. 31, 2013
Preferred Class A [Member]
Nov. 1, 2013
Preferred Class A [Member]
Aug. 1, 2013
Preferred Class A [Member]
May 1, 2013
Preferred Class A [Member]
Feb. 11, 2013
Common Stock [Member]
Sep. 2, 2014
Common Stock [Member]
Jun. 3, 2014
Common Stock [Member]
Mar. 3, 2014
Common Stock [Member]
Dec. 2, 2013
Common Stock [Member]
Sep. 3, 2013
Common Stock [Member]
Jun. 3, 2013
Common Stock [Member]
Mar. 1, 2013
Common Stock [Member]
Sep. 30, 2014
Common Stock [Member]
Minimum [Member]
Sep. 30, 2014
Common Stock [Member]
Maximum [Member]
Sep. 30, 2014
Common Stock from when Mandatory Convertible Preferred Stock Converts on February 1, 2016 [Member]
Feb. 21, 2013
Depositary Share [Member]
Sep. 30, 2014
Depositary Share [Member]
Sep. 8, 2014
Depositary Share [Member]
Aug. 1, 2014
Depositary Share [Member]
May 1, 2014
Depositary Share [Member]
Feb. 3, 2014
Depositary Share [Member]
Nov. 1, 2013
Depositary Share [Member]
Aug. 1, 2013
Depositary Share [Member]
May 1, 2013
Depositary Share [Member]
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depositary Share Offering included in Depositary Share Issuance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
27,000,000 
 
 
 
 
 
 
 
 
Number of Shares included in Depositary Share Issuance due to Exercise of
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,250,000 
 
 
 
 
 
 
 
 
Depositary Share Interest in a Share of 7% Series A Mandatory Convertible Preferred Stock, Class A
 
 
0.025 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Series A Mandatory Convertible Preferred Stock, Class A, Percentage
 
 
 
 
 
 
 
 
7.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible Preferred Stock, Shares Issued upon Conversion
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
28.1480 
34.4840 
 
 
 
 
 
 
 
 
 
 
Convertible Preferred Stock, Shares Issued Upon Conversion per Depositary Share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.7037 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock, Liquidation Preference Per Share
 
 
 
 
 
 
$ 1,000 
 
$ 1,000 
 
 
 
 
 
$ 1,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 25 
 
 
 
 
 
 
 
Common Stock, Par or Stated Value Per Share
$ 0.125 
 
$ 0.125 
 
$ 0.125 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.125 
 
 
 
 
 
 
 
 
 
Trading Day Window Determining Number of Common Shares Issuable on Conversion
 
 
20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Common Shares Mandatory Convertible Stock Converts to on February 1, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20,600,000 
25,200,000 
 
 
 
 
 
 
 
 
 
 
Net proceeds from issuance of Series A, Mandatory Convertible Preferred Stock, Class A
 
 
$ 0 
$ 709.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends payable, per share
 
 
 
 
 
 
 
 
 
 
$ 17.50 
$ 17.50 
$ 17.50 
$ 17.50 
 
$ 17.50 
$ 17.50 
$ 13.6111 
 
$ 0.15 
$ 0.150 
$ 0.150 
$ 0.150 
$ 0.150 
$ 0.15 
$ 0.15 
 
 
 
 
 
$ 0.44 
$ 0.44 
$ 0.44 
$ 0.440 
$ 0.440 
$ 0.44 
$ 0.34 
Dividends, Preferred Stock
$ 12.8 
$ 12.9 
$ 38.4 
$ 35.9 
 
 
$ 12.8 
$ 12.9 
$ 38.4 
$ 35.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage increase (decrease) in dividends payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
76.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of common shares, public offering (in shares)
 
 
 
 
 
731,250 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
29,250,000 
 
 
 
 
 
 
 
 
Closing price per share (in usd per share)
 
 
 
 
 
 
$ 25 
 
$ 25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDERS' EQUITY Schedule of Shareholders' Equity (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Dec. 31, 2012
Stockholders' Equity Attributable to Parent
$ 30.7 
 
$ 30.7 
 
$ 6,069.5 
 
Stockholders' Equity Attributable to Noncontrolling Interest
(208.0)
 
(208.0)
 
814.8 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
(177.3)
6,934.6 
(177.3)
6,934.6 
6,884.3 
5,760.9 
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
(5,879.6)
117.2 
(5,939.0)
370.2 
 
 
INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST
(1,007.6)
(3.3)
(1,004.4)
5.8 
 
 
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
(6,887.2)
113.9 
(6,943.4)
376.0 
 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
(5,960.8)
178.4 
(5,927.5)
247.4 
 
 
Other Comprehensive Income (Loss), Net of Tax
(80.7)
62.1 
13.1 
(119.6)
 
 
OTHER COMPREHENSIVE INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST
(0.5)
(0.9)
(1.6)
(3.2)
 
 
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest
 
 
(6,930.3)
256.4 
 
 
Stock and Other Incentive Plans
 
 
(3.4)
9.6 
 
 
Common and preferred share dividends
 
 
(107.9)
(104.7)
 
 
Undistributed Gains To Noncontrolling Interest
 
 
(20.0)
 
 
 
Capital Contribution By Noncontrolling Interest
 
 
 
17.7 
 
 
Cliffs Shareholders Equity [Member]
 
 
 
 
 
 
Stockholders' Equity Attributable to Parent
30.7 
5,779.7 
30.7 
5,779.7 
6,069.5 
4,632.7 
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
 
 
(5,939.0)
370.2 
 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
 
 
11.5 
(122.8)
 
 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
 
 
(5,927.5)
247.4 
 
 
Stock and Other Incentive Plans
 
 
(3.4)
9.6 
 
 
Common and preferred share dividends
 
 
(107.9)
(104.7)
 
 
Undistributed Gains To Noncontrolling Interest
 
 
 
 
 
Capital Contribution By Noncontrolling Interest
 
 
 
 
 
Noncontrolling Interest [Member]
 
 
 
 
 
 
Stockholders' Equity Attributable to Noncontrolling Interest
(208.0)
1,154.9 
(208.0)
1,154.9 
814.8 
1,128.2 
INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST
 
 
(1,004.4)
5.8 
 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest
 
 
1.6 
3.2 
 
 
OTHER COMPREHENSIVE INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST
 
 
(1,002.8)
9.0 
 
 
Stock and Other Incentive Plans
 
 
 
 
Common and preferred share dividends
 
 
 
 
Undistributed Gains To Noncontrolling Interest
 
 
(20.0)
 
 
 
Capital Contribution By Noncontrolling Interest
 
 
 
17.7 
 
 
Common Stock [Member]
 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
 
 
 
285.3 
 
 
Common Stock [Member] |
Cliffs Shareholders Equity [Member]
 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
 
 
 
285.3 
 
 
Common Stock [Member] |
Noncontrolling Interest [Member]
 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
 
 
 
 
 
Preferred Class A [Member]
 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
 
 
 
709.4 
 
 
Preferred Class A [Member] |
Cliffs Shareholders Equity [Member]
 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
 
 
 
709.4 
 
 
Preferred Class A [Member] |
Noncontrolling Interest [Member]
 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
 
 
 
$ 0 
 
 
SHAREHOLDERS' EQUITY Accumulate Other Comprehensive Income (Loss) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Member]
Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Member]
Mar. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Member]
Sep. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Member]
Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Member]
Mar. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Member]
Sep. 30, 2014
Accumulated Defined Benefit Plans Adjustment [Member]
Jun. 30, 2014
Accumulated Defined Benefit Plans Adjustment [Member]
Mar. 31, 2014
Accumulated Defined Benefit Plans Adjustment [Member]
Sep. 30, 2013
Accumulated Defined Benefit Plans Adjustment [Member]
Jun. 30, 2013
Accumulated Defined Benefit Plans Adjustment [Member]
Mar. 31, 2013
Accumulated Defined Benefit Plans Adjustment [Member]
Sep. 30, 2014
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Jun. 30, 2014
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Mar. 31, 2014
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Sep. 30, 2013
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Jun. 30, 2013
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Mar. 31, 2013
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Sep. 30, 2014
Accumulated Translation Adjustment [Member]
Jun. 30, 2014
Accumulated Translation Adjustment [Member]
Mar. 31, 2014
Accumulated Translation Adjustment [Member]
Sep. 30, 2013
Accumulated Translation Adjustment [Member]
Jun. 30, 2013
Accumulated Translation Adjustment [Member]
Mar. 31, 2013
Accumulated Translation Adjustment [Member]
Sep. 30, 2014
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Jun. 30, 2014
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Mar. 31, 2014
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Sep. 30, 2013
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Jun. 30, 2013
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Mar. 31, 2013
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Sep. 30, 2014
Accumulated Defined Benefit Plans Adjustment [Member]
Jun. 30, 2014
Accumulated Defined Benefit Plans Adjustment [Member]
Mar. 31, 2014
Accumulated Defined Benefit Plans Adjustment [Member]
Sep. 30, 2013
Accumulated Defined Benefit Plans Adjustment [Member]
Jun. 30, 2013
Accumulated Defined Benefit Plans Adjustment [Member]
Mar. 31, 2013
Accumulated Defined Benefit Plans Adjustment [Member]
Sep. 30, 2014
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Jun. 30, 2014
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Mar. 31, 2014
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Sep. 30, 2013
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Jun. 30, 2013
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Mar. 31, 2013
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Sep. 30, 2014
Accumulated Translation Adjustment [Member]
Jun. 30, 2014
Accumulated Translation Adjustment [Member]
Mar. 31, 2014
Accumulated Translation Adjustment [Member]
Sep. 30, 2013
Accumulated Translation Adjustment [Member]
Jun. 30, 2013
Accumulated Translation Adjustment [Member]
Mar. 31, 2013
Accumulated Translation Adjustment [Member]
Sep. 30, 2014
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Jun. 30, 2014
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Mar. 31, 2014
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Sep. 30, 2013
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Jun. 30, 2013
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Mar. 31, 2013
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax
$ (188.3)
$ (199.4)
$ (202.0)
$ (204.9)
$ (365.1)
$ (370.8)
$ (377.4)
$ (382.7)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated other comprehensive loss
(101.4)
(20.2)
(55.1)
(112.9)
(178.4)
(239.6)
(51.4)
(55.6)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
0.6 
6.4 
10.1 
6.2 
10.7 
6.3 
4.7 
2.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax
101.0 
166.9 
147.2 
106.7 
190.4 
167.6 
319.6 
316.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax
(14.7)
5.9 
(10.4)
(20.9)
(14.4)
(42.7)
1.7 
8.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), before Reclassifications, before Tax
 
 
 
 
 
 
 
 
(81.1)
25.6 
41.6 
37.8 
(197.7)
(0.3)
3.5 
(1.4)
(0.4)
(0.6)
(1.5)
(1.1)
1.3 
(2.4)
3.8 
3.5 
(2.0)
2.5 
(65.9)
19.7 
40.5 
22.8 
(152.0)
3.3 
(20.0)
9.7 
(2.3)
12.1 
(42.2)
(5.0)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
$ (0.1)
$ 9.3 
$ 16.2 
$ 23.4 
$ 9.5 
$ 4.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 7.6 
$ 4.0 
$ 3.3 
$ 6.3 
$ 8.1 
$ 6.4 
$ (7.1)
$ (1.3)
$ 0.1 
$ 0.9 
$ 3.6 
$ 0.1 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ (0.6)
$ 6.6 
$ 12.8 
$ 16.2 
$ (2.2)
$ (2.0)
SHAREHOLDERS' EQUITY Details of Accumulated Other Comprehensive Income (Loss) Components (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
 
 
Derivative Instruments, (Gain) Loss Reclassified from Accumulated OCI into Income, Effective Portion, Net
$ 0.6 
$ (16.2)
$ (18.8)
$ (12.0)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax
(0.1)
23.4 
25.4 
37.4 
Accumulated Defined Benefit Plans Adjustment [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
 
 
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)
(0.2)1
(0.1)1
(0.7)1
(0.4)1
Defined Benefit Plan, Amortization of Gains (Losses)
4.5 1
10.4 1
14.0 1
31.2 1
Defined Benefit Plan, Curtailments
1.7 1
1
2.9 1
1
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax
6.0 
10.3 
16.2 
30.8 
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Tax
1.6 
(4.0)
(1.3)
(10.0)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
7.6 
6.3 
14.9 
20.8 
Realized Gain (Loss) on Marketable Securities [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
 
 
Marketable Securities, Realized Gain (Loss)
(9.7)
0.6 
(11.4)
(0.5)
Accumulated Other-than-Temporary Impairment [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
 
 
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest, Available-for-sale Securities
(0.3)
(0.3)
5.3 
Realized Gain (Loss) on Marketable Securities and Other than Temporary Impairment [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
 
 
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities and Impairment on Securities Arising During Period, before tax
(10.0)
0.6 
(11.7)
4.8 
Other Comprehensive Income (Loss), Realized Holding Gain (Loss) on Securities and Impairment on Securities Arising During Period, Tax
2.9 
0.3 
3.4 
(0.2)
Other Comprehensive Income (Loss), Realized Holding Gain (Loss) on Securities and Impairment on Securities Arising During Period, net of tax
(7.1)
0.9 
(8.3)
4.6 
Realized Gain Loss On Derivatives [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
 
 
(Gain) Loss on Derivative Instruments, Net, Pretax
(0.1)
23.7 
28.1 
17.7 
Tax on Derivative Instruments Gain/Loss Reclassified from Accumulated OCI in to Earnings
(0.5)
(7.5)
(9.3)
(5.7)
Amount of (gain)/loss recognized in income on derivative
(0.6)
16.2 
18.8 
12.0 
Australian Hedge Contracts [Member] |
Realized Gain Loss On Derivatives [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
 
 
Derivative Instruments, (Gain) Loss Reclassified from Accumulated OCI into Income, Effective Portion, Net
(1.6)
12.7 
16.7 
6.4 
Canadian Hedge Contracts [Member] |
Realized Gain Loss On Derivatives [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
 
 
Derivative Instruments, (Gain) Loss Reclassified from Accumulated OCI into Income, Effective Portion, Net
$ 1.5 
$ 11.0 
$ 11.4 
$ 11.3 
SHAREHOLDERS' EQUITY Narrative (Details)
Sep. 30, 2014
Empire [Member]
 
Noncontrolling Interest, Ownership Percentage by Parent
79.00% 
Tilden [Member]
 
Noncontrolling Interest, Ownership Percentage by Parent
85.00% 
Bloom Lake [Member]
 
Noncontrolling Interest, Ownership Percentage by Parent
82.80% 
RELATED PARTIES (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
Extension of ArcelorMittal Contract
2 years 
 
Due from Related Parties, Current
$ 103.4 
$ 132.0 
Due to Related Parties, Current
$ 27.2 
$ 25.1 
U.S. Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Number of mines (in number of facilities)
 
Eastern Canadian Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Number of mines (in number of facilities)
 
Joint Venture Partners [Member] |
U.S. Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Number of mines (in number of facilities)
 
Joint Venture Partners [Member] |
Eastern Canadian Iron Ore [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Number of mines (in number of facilities)
 
RELATED PARTIES (Summary Of Other Ownership Interests) (Details)
Sep. 30, 2014
Hibbing [Member] |
Arcelor Mittal [Member]
 
Related Party Transaction [Line Items]
 
Ownership interest, equity method investment
62.30% 
Hibbing [Member] |
U. S. Steel Canada [Member]
 
Related Party Transaction [Line Items]
 
Ownership interest, equity method investment
14.70% 
Hibbing [Member] |
WISCO [Member]
 
Related Party Transaction [Line Items]
 
Ownership interest, equity method investment
0.00% 
Empire [Member]
 
Related Party Transaction [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Parent
79.00% 
Empire [Member] |
Arcelor Mittal [Member]
 
Related Party Transaction [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners
21.00% 
Empire [Member] |
U. S. Steel Canada [Member]
 
Related Party Transaction [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners
0.00% 
Empire [Member] |
WISCO [Member]
 
Related Party Transaction [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners
0.00% 
Tilden [Member]
 
Related Party Transaction [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Parent
85.00% 
Tilden [Member] |
Arcelor Mittal [Member]
 
Related Party Transaction [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners
0.00% 
Tilden [Member] |
U. S. Steel Canada [Member]
 
Related Party Transaction [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners
15.00% 
Tilden [Member] |
WISCO [Member]
 
Related Party Transaction [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners
0.00% 
Bloom Lake [Member]
 
Related Party Transaction [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Parent
82.80% 
Bloom Lake [Member] |
Arcelor Mittal [Member]
 
Related Party Transaction [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners
0.00% 
Bloom Lake [Member] |
U. S. Steel Canada [Member]
 
Related Party Transaction [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners
0.00% 
Bloom Lake [Member] |
WISCO [Member]
 
Related Party Transaction [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners
17.20% 
Other Noncurrent Assets [Member] |
Hibbing [Member]
 
Related Party Transaction [Line Items]
 
Ownership interest, equity method investment
23.00% 1
EARNINGS PER SHARE EARNINGS PER SHARE (Narrative) (Details)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2014
Earnings Per Share [Abstract]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
 
25.2 
Antidilutive Incremental Common Shares Excluded and Attributable to Share-based Payment Arrangements
0.5 
0.9 
EARNINGS PER SHARE (Earnings Per Share Computation) (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Income (Loss) from Continuing Operations Attributable to Parent
$ (5,879.6)
$ 115.2 
$ (5,939.0)
$ 368.2 
INCOME FROM DISCONTINUED OPERATIONS, net of tax
2.0 
2.0 
Net Income (Loss) Attributable to Cliffs Shareholders
(5,879.6)
117.2 
(5,939.0)
370.2 
PREFERRED STOCK DIVIDENDS
(12.8)
(12.9)
(38.4)
(35.9)
NET INCOME ATTRIBUTABLE TO CLIFFS COMMON SHAREHOLDERS
(5,892.4)
104.3 
(5,977.4)
334.3 
Earnings (Loss) Per Common Share Attributable to Cliffs Common Shareholders - Basic
 
 
 
 
Continuing operations
$ (38.49)
$ 0.67 
$ (39.05)
$ 2.20 
Discontinued operations
$ 0.00 
$ 0.01 
$ 0.00 
$ 0.01 
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Basic:
$ (38.49)
$ 0.68 
$ (39.05)
$ 2.21 
Earnings (Loss) Per Common Share Attributable to Cliffs Shareholders - Diluted
 
 
 
 
Continuing operations
$ (38.49)
$ 0.65 
$ (39.05)
$ 2.13 
Discontinued operations
$ 0.00 
$ 0.01 
$ 0.00 
$ 0.01 
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Diluted:
$ (38.49)
$ 0.66 
$ (39.05)
$ 2.14 
Weighted Average Number of Shares:
 
 
 
 
Basic
153,108 
153,029 
153,085 
151,288 
Depositary Shares
25,230 
21,109 
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements
200 
227 
Diluted
153,108 
178,459 
153,085 
172,624 
Preferred Class A [Member]
 
 
 
 
PREFERRED STOCK DIVIDENDS
$ (12.8)
$ (12.9)
$ (38.4)
$ (35.9)
COMMITMENTS AND CONTINGENCIES NARRATIVE (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Worldlink Arbitration [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency, Damages Sought, Value
$ 85 
Worldlink Counterclaim [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency, Damages Sought, Value
$ 100 
CASH FLOW INFORMATION (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Sep. 8, 2014
Aug. 1, 2014
May 1, 2014
Feb. 3, 2014
Nov. 1, 2013
Aug. 1, 2013
May 1, 2013
Dividends Payable [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Depositary Share Interest in a Share of 7% Series A Mandatory Convertible Preferred Stock, Class A
 
 
0.025 
 
 
 
 
 
 
 
 
Preferred stock cash dividend
$ 12.8 
$ 12.9 
$ 38.4 
$ 35.9 
 
 
 
 
 
 
 
Preferred Class A [Member]
 
 
 
 
 
 
 
 
 
 
 
Dividends Payable [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Dividends payable, per share
 
 
 
 
$ 17.50 
$ 17.50 
$ 17.50 
$ 17.50 
$ 17.50 
$ 17.50 
$ 13.6111 
Preferred stock cash dividend
$ 12.8 
$ 12.9 
$ 38.4 
$ 35.9 
 
 
 
 
 
 
 
Depositary Share [Member]
 
 
 
 
 
 
 
 
 
 
 
Dividends Payable [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Dividends payable, per share
 
 
 
 
$ 0.44 
$ 0.44 
$ 0.44 
$ 0.440 
$ 0.440 
$ 0.44 
$ 0.34 
SUBSEQUENT EVENTS SUBSEQUENT EVENTS (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Sep. 30, 2014
Revolving Credit Facility [Member]
Mar. 31, 2013
Revolving Credit Facility [Member]
Sep. 30, 2014
Revolving Credit Facility [Member]
Dec. 31, 2013
Revolving Credit Facility [Member]
Sep. 2, 2014
Common Stock [Member]
Jun. 3, 2014
Common Stock [Member]
Mar. 3, 2014
Common Stock [Member]
Dec. 2, 2013
Common Stock [Member]
Sep. 3, 2013
Common Stock [Member]
Jun. 3, 2013
Common Stock [Member]
Mar. 1, 2013
Common Stock [Member]
Nov. 4, 2014
Common Stock [Member]
Dividend Declared [Member]
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Face Amount
$ 4,528,000,000 
$ 4,814,800,000 
$ 1,250,000,000 
 
$ 1,250,000,000 
$ 1,750,000,000 
 
 
 
 
 
 
 
 
Debt Instrument, Face Amount, Subsequent Event - Revolving Credit Facility Amendment
 
 
1,125,000,000 
 
1,125,000,000 
 
 
 
 
 
 
 
 
 
Total Funded Debt to Total Capitalization
 
 
0.45 
 
 
 
 
 
 
 
 
 
 
 
Debt to earnings ratio, Subsequent Event - Revolving Credit Facility Amendment
 
 
3.5 
 
3.5 
 
 
 
 
 
 
 
 
 
Financial covenant, interest coverage ratio
 
 
3.5 
2.5 
 
 
 
 
 
 
 
 
 
 
Coverage Ratio Of Earnings Before Interest Tax Depreciation And Amortization To Total Interest Expense, Subsequent Event - Revolving Credit Facility Amendment
 
 
2.0 
 
 
 
 
 
 
 
 
 
 
 
Number of Days to complete collateral action in order to reduce minimum interest coverage ratio, Subsequent Event - Revolving Credit Facility Amendment
 
 
 
 
60 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Authorized Amount
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquidity Test, Subsequent Event - Revolving Credit Facility Amendment
 
 
$ 400,000,000 
 
$ 400,000,000 
 
 
 
 
 
 
 
 
 
Dividends payable, per share
 
 
 
 
 
 
$ 0.15 
$ 0.150 
$ 0.150 
$ 0.150 
$ 0.150 
$ 0.15 
$ 0.15 
$ 0.15