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Name | Location | Ownership Interest | Operation | Status of Operations | ||||
Northshore | Minnesota | 100.0% | Iron Ore | Active | ||||
United Taconite | Minnesota | 100.0% | Iron Ore | Active | ||||
Tilden | Michigan | 85.0% | Iron Ore | Active | ||||
Empire | Michigan | 79.0% | Iron Ore | Active | ||||
Koolyanobbing | Western Australia | 100.0% | Iron Ore | Active | ||||
Pinnacle | West Virginia | 100.0% | Coal | Active - Held for Sale | ||||
Oak Grove | Alabama | 100.0% | Coal | Active - Held for Sale | ||||
Wabush1 | Newfoundland and Labrador/ Quebec, Canada | 100.0% | Iron Ore | Permanent closure | ||||
Bloom Lake1 | Quebec, Canada | 82.8% | Iron Ore | Care-and-maintenance | ||||
Cliffs Chromite Ontario - Black Label Deposit1 | Ontario, Canada | 100.0% | Chromite | Suspended | ||||
Cliffs Chromite Ontario - Black Thor Deposit1 | Ontario, Canada | 100.0% | Chromite | Suspended | ||||
Cliffs Chromite Ontario & Cliffs Chromite Far North - Big Daddy Deposit1 | Ontario, Canada | 70.0% | Chromite | Suspended | ||||
1 As of January 27, 2015, we deconsolidated substantially all of our Canadian operations following the CCAA filing. See NOTE 14 - DISCONTINUED OPERATIONS for further information. |
(In Millions) | ||||||||||||||
Investment | Classification | Accounting Method | Interest Percentage | March 31, 2015 | December 31, 2014 | |||||||||
Hibbing | Other non-current assets | Equity Method | 23% | $ | 2.5 | $ | 3.1 | |||||||
Other | Other non-current assets | Equity Method | Various | 0.9 | 1.0 | |||||||||
$ | 3.4 | $ | 4.1 |
|
(In Millions) | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Revenues from product sales and services: | |||||||||||||
U.S. Iron Ore | $ | 311.8 | 70 | % | $ | 361.3 | 59 | % | |||||
Asia Pacific Iron Ore | 134.2 | 30 | % | 254.2 | 41 | % | |||||||
Total revenues from product sales and services | $ | 446.0 | 100 | % | $ | 615.5 | 100 | % | |||||
Sales margin: | |||||||||||||
U.S. Iron Ore | $ | 80.0 | $ | 95.0 | |||||||||
Asia Pacific Iron Ore | 0.8 | 66.3 | |||||||||||
Eliminations with Discontinued Operations | — | 28.7 | |||||||||||
Sales margin | 80.8 | 190.0 | |||||||||||
Other operating income | (8.9 | ) | (50.8 | ) | |||||||||
Other income (expense) | 270.0 | (39.6 | ) | ||||||||||
Income from continuing operations before income taxes and equity loss from ventures | $ | 341.9 | $ | 99.6 |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Net Loss | $ | (761.7 | ) | $ | (70.7 | ) | |
Less: | |||||||
Interest expense, net | (44.2 | ) | (42.7 | ) | |||
Income tax benefit (expense) | (175.0 | ) | 21.8 | ||||
Depreciation, depletion and amortization | (33.0 | ) | (141.1 | ) | |||
EBITDA | $ | (509.5 | ) | $ | 91.3 | ||
Less: | |||||||
Impact of discontinued operations | $ | (924.1 | ) | $ | (118.1 | ) | |
North American Coal operations impact | (5.5 | ) | 18.2 | ||||
Gain on extinguishment of debt | 313.7 | — | |||||
Severance in SG&A | (1.5 | ) | (6.0 | ) | |||
Foreign exchange remeasurement | 13.5 | (11.4 | ) | ||||
Adjusted EBITDA | $ | 94.4 | $ | 208.6 | |||
EBITDA: | |||||||
U.S. Iron Ore | $ | 101.6 | $ | 123.6 | |||
Asia Pacific Iron Ore | 18.0 | 85.3 | |||||
Other | (629.1 | ) | (117.6 | ) | |||
Total EBITDA | $ | (509.5 | ) | $ | 91.3 | ||
Adjusted EBITDA: | |||||||
U.S. Iron Ore | $ | 105.1 | $ | 128.7 | |||
Asia Pacific Iron Ore | 5.7 | 99.1 | |||||
Other | (16.4 | ) | (19.2 | ) | |||
Total Adjusted EBITDA | $ | 94.4 | $ | 208.6 |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Depreciation, depletion and amortization: | |||||||
U.S. Iron Ore | $ | 21.7 | $ | 28.7 | |||
Asia Pacific Iron Ore | 6.3 | 39.1 | |||||
Other | 1.8 | 1.9 | |||||
Total depreciation, depletion and amortization | $ | 29.8 | $ | 69.7 | |||
Capital additions1: | |||||||
U.S. Iron Ore | $ | 9.5 | $ | 14.9 | |||
Asia Pacific Iron Ore | 3.4 | 3.2 | |||||
Other | 0.4 | 0.9 | |||||
Total capital additions | $ | 13.3 | $ | 19.0 |
(In Millions) | |||||||
March 31, 2015 | December 31, 2014 | ||||||
Assets: | |||||||
U.S. Iron Ore | $ | 1,550.1 | $ | 1,464.9 | |||
Asia Pacific Iron Ore | 250.6 | 274.6 | |||||
Other | 31.2 | 147.0 | |||||
Total segment assets | 1,831.9 | 1,886.5 | |||||
Corporate | 673.5 | 546.8 | |||||
Assets of Discontinued Operations | 197.2 | 730.7 | |||||
Total assets | $ | 2,702.6 | $ | 3,164.0 |
|
(In Millions) | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Segment | Finished Goods | Work-in Process | Total Inventory | Finished Goods | Work-in Process | Total Inventory | |||||||||||||||||
U.S. Iron Ore | $ | 294.5 | $ | 13.9 | $ | 308.4 | $ | 132.1 | $ | 13.5 | $ | 145.6 | |||||||||||
Asia Pacific Iron Ore | 15.1 | 85.0 | 100.1 | 26.4 | 88.1 | 114.5 | |||||||||||||||||
Total | $ | 309.6 | $ | 98.9 | $ | 408.5 | $ | 158.5 | $ | 101.6 | $ | 260.1 |
|
(In Millions) | |||||||
March 31, 2015 | December 31, 2014 | ||||||
Land rights and mineral rights | $ | 500.5 | $ | 500.5 | |||
Office and information technology | 69.7 | 73.7 | |||||
Buildings | 59.8 | 59.8 | |||||
Mining equipment | 584.9 | 585.1 | |||||
Processing equipment | 512.7 | 510.2 | |||||
Electric power facilities | 44.2 | 46.8 | |||||
Land improvements | 24.8 | 24.7 | |||||
Other | 54.7 | 55.0 | |||||
Construction in-progress | 20.7 | 14.4 | |||||
1,872.0 | 1,870.2 | ||||||
Allowance for depreciation and depletion | (824.8 | ) | (799.7 | ) | |||
$ | 1,047.2 | $ | 1,070.5 |
|
($ in Millions) | |||||||||||||||
March 31, 2015 | |||||||||||||||
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 | $ | 423.2 | $ | 422.9 | (1) | |||||||
$1.3 Billion Senior Notes: | |||||||||||||||
$500 Million 4.80% 2020 Senior Notes | Fixed | 4.83% | 2020 | 308.5 | 308.1 | (2) | |||||||||
$800 Million 6.25% 2040 Senior Notes | Fixed | 6.34% | 2040 | 492.8 | 487.0 | (3) | |||||||||
$400 Million 5.90% 2020 Senior Notes | Fixed | 5.98% | 2020 | 326.8 | 325.7 | (4) | |||||||||
$500 Million 3.95% 2018 Senior Notes | Fixed | 6.32% | 2018 | 436.0 | 433.8 | (5) | |||||||||
$540 Million 8.25% 2020 First Lien Notes | Fixed | 9.97% | 2020 | 540.0 | 503.5 | (6) | |||||||||
$544.2 Million 7.75% 2020 Second Lien Notes | Fixed | 15.55% | 2020 | 544.2 | 397.2 | (7) | |||||||||
$550 Million ABL Facility: | |||||||||||||||
Asset-Based Revolving Credit Facility | Variable | —% | 2020 | 550.0 | — | (8) | |||||||||
Fair Value Adjustment to Interest Rate Hedge | 2.7 | ||||||||||||||
Total debt | $ | 3,621.5 | $ | 2,880.9 | |||||||||||
Less: Short-term and current portion of long-term debt | — | ||||||||||||||
Long-term debt | $ | 2,880.9 |
($ in Millions) | |||||||||||||||
December 31, 2014 | |||||||||||||||
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 | $ | 690.0 | $ | 689.5 | (1) | |||||||
$1.3 Billion Senior Notes: | |||||||||||||||
$500 Million 4.80% 2020 Senior Notes | Fixed | 4.83% | 2020 | 490.0 | 489.4 | (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 | 395.0 | 393.7 | (4) | |||||||||
$500 Million 3.95% 2018 Senior Notes | Fixed | 5.17% | 2018 | 480.0 | 477.4 | (5) | |||||||||
$1.125 Billion Credit Facility: | |||||||||||||||
Revolving Credit Agreement | Variable | 2.94% | 2017 | 1,125.0 | — | (9) | |||||||||
Fair Value Adjustment to Interest Rate Hedge | 2.8 | ||||||||||||||
Total debt | $ | 3,980.0 | $ | 2,843.3 | |||||||||||
Less: Short-term and current portion of long-term debt | — | ||||||||||||||
Long-term debt | $ | 2,843.3 |
(1) | During the first quarter of 2015, we purchased $58.3 million of outstanding 4.875 percent senior notes that were trading at a discount of 52.0 percent which resulted in a gain on extinguishment of $20.0 million. In addition, on March 27, 2015, we exchanged as part of a tender offer $208.5 million of the 4.875 percent senior notes for $170.3 million of the 7.75 percent second lien notes at a discount of $46.0 million based on an imputed interest rate of 15.55 percent, resulting in a gain on extinguishment of $83.1 million, net of amounts expensed for unamortized original issue discount and deferred origination fees. As of March 31, 2015, the $700.0 million 4.875 percent senior notes were recorded at a par value of $423.2 million less unamortized discounts of $0.3 million, based on an imputed interest rate of 4.89 percent. As of December 31, 2014, the $700.0 million 4.875 percent senior notes were recorded at a par value of $690.0 million less unamortized discounts of $0.5 million based on an imputed interest rate of 4.88 percent. |
(2) | During the first quarter of 2015, we purchased $43.8 million of outstanding 4.80 percent senior notes that were trading at a discount of 54.3 percent, which resulted in a gain on extinguishment of $15.6 million. In addition, on March 27, 2015, we exchanged as part of a tender offer $137.8 million of the 4.80 percent senior notes for $112.9 million of the 7.75 percent second lien notes at a discount of $30.5 million based on an imputed interest rate of 15.55 percent, resulting in a gain on extinguishment of $54.6 million, net of amounts expensed for unamortized original issue discount and deferred origination fees. As of March 31, 2015, the $500.0 million 4.80 percent senior notes were recorded at a par value of $308.5 million less unamortized discounts of $0.4 million, based on an imputed interest rate of 4.83 percent. As of December 31, 2014, the $500.0 million 4.80 percent senior notes were recorded at a par value of $490.0 million less unamortized discounts of $0.6 million based on an imputed interest rate of 4.83 percent. |
(3) | During the first quarter of 2015, we purchased $45.9 million of outstanding 6.25 percent senior notes that were trading at a discount of 52.5 percent, which resulted in a gain on extinguishment of $15.0 million. In addition, on March 27, 2015, we exchanged as part of a tender offer $261.3 million of the 6.25 percent senior notes for $203.5 million of the 7.75 percent second lien notes at a discount of $55.0 million based on an imputed interest rate of 15.55 percent, resulting in a gain on extinguishment of $107.3 million, net of amounts expensed for unamortized original issue discount and deferred origination fees. As of March 31, 2015, the $800 million 6.25 percent senior notes were recorded at a par value of $492.8 million less unamortized discounts of $5.8 million, based on an imputed interest rate of 6.34 percent. As of December 31, 2014, the $800 million 6.25 percent senior notes were recorded at a par value of $800.0 million less unamortized discounts of $9.5 million based on an imputed interest rate of 6.34 percent. |
(4) | During the first quarter of 2015, we purchased $1.3 million of outstanding 5.90 percent senior notes that were trading at a discount of 58.0 percent, which resulted in a gain on extinguishment of $0.3 million. In addition, on March 27, 2015, we exchanged as part of a tender offer $67.0 million of the 5.90 percent senior notes for $57.5 million of the 7.75 percent second lien notes at a discount of $15.5 million based on an imputed interest rate of 15.55 percent, resulting in a gain on extinguishment of $24.5 million, net of amounts expensed for unamortized original issue discount and deferred origination fees. As of March 31, 2015, the $400.0 million 5.90 percent senior notes were recorded at a par value of $326.8 million less unamortized discounts of $1.1 million, based on an imputed interest rate of 5.98 percent. As of December 31, 2014, the $400.0 million 5.90 percent senior notes were recorded at a par value of $395.0 million less unamortized discounts of $1.3 million based on an imputed interest rate of 5.98 percent. |
(5) | During the first quarter of 2015, we purchased $44.0 million of outstanding 3.95 percent senior notes that were trading at a discount of 77.5 percent, which resulted in a gain on the extinguishment of debt of $7.1 million. As of March 31, 2015, the $500.0 million 3.95 percent senior notes were recorded at a par value of $436.0 million less unamortized discounts of $2.2 million, based on an imputed interest rate of 6.32 percent. As of December 31, 2014, the $500.0 million 3.95 percent senior notes were recorded at a par value of $480.0 million less unamortized discounts of $2.6 million based on an imputed interest rate of 5.17 percent. |
(6) | As of March 31, 2015, the $540.0 million 8.25 percent first lien notes were recorded at a par value of $540.0 million less unamortized discounts of $36.5 million, based on an imputed interest rate of 9.97 percent. |
(7) | As of March 31, 2015, the $544.2 million 7.75 percent second lien notes were recorded at a par value of $544.2 million less unamortized discounts of $147.0 million, based on an imputed interest rate of 15.55 percent. See NOTE 6 - FAIR VALUE MEASUREMENTS for further discussion of unamortized discount as a result of the exchange offers. |
(8) | As of March 31, 2015, no loans were drawn under the ABL Facility and we had total availability of $441.1 million as a result of borrowing base limitations. As of March 31, 2015, the principal amount of letter of credit obligations totaled $136.2 million and foreign exchange hedge obligations totaled $5.5 million, thereby further reducing available borrowing capacity on our ABL Facility to $299.4 million. |
(9) | As of December 31, 2014, we had no revolving loans drawn under the revolving credit agreement of which had $1.125 billion availability. As of December 31, 2014, the principal amount of letter of credit obligations totaled $149.5 million, thereby further reducing available borrowing capacity on the revolving credit agreement to $975.5 million. |
(In Millions) | |||
Maturities of Debt | |||
2015 (April 1 - December 31) | $ | — | |
2016 | — | ||
2017 | — | ||
2018 | 436.0 | ||
2019 | — | ||
2020 | 1,719.5 | ||
2021 and thereafter | 916.0 | ||
Total maturities of debt | $ | 3,071.5 |
|
(In Millions) | |||||||||||||||
March 31, 2015 | |||||||||||||||
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 | — | — | 34.5 | 34.5 | |||||||||||
Available-for-sale marketable securities | 2.8 | — | — | 2.8 | |||||||||||
Total | $ | 122.8 | $ | — | $ | 34.5 | $ | 157.3 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | 1.6 | $ | 16.2 | $ | 17.8 | |||||||
Foreign exchange contracts | — | 8.7 | — | 8.7 | |||||||||||
Total | $ | — | $ | 10.3 | $ | 16.2 | $ | 26.5 |
(In Millions) | |||||||||||||||
December 31, 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: | |||||||||||||||
Derivative assets | $ | — | $ | — | $ | 63.2 | $ | 63.2 | |||||||
Available-for-sale marketable securities | 4.3 | — | — | 4.3 | |||||||||||
Total | $ | 4.3 | $ | — | $ | 63.2 | $ | 67.5 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 9.5 | $ | 9.5 | |||||||
Foreign exchange contracts | — | 31.5 | — | 31.5 | |||||||||||
Total | $ | — | $ | 31.5 | $ | 9.5 | $ | 41.0 |
Qualitative/Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||
(In Millions) Fair Value at March 31, 2015 | Balance Sheet Location | Valuation Technique | Unobservable Input | Range or Point Estimate per ton (Weighted Average) | ||||||||
Provisional Pricing Arrangements | $ | 16.2 | Other current liabilities | Market Approach | Management's Estimate of 62% Fe | $51 | ||||||
Customer Supply Agreement | $ | 34.5 | Other current assets | Market Approach | Hot-Rolled Steel Estimate | $540 - $575 ($563) |
(In Millions) | |||||||
Derivative Assets (Level 3) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Beginning balance | $ | 63.2 | $ | 57.7 | |||
Total gains (losses) | |||||||
Included in earnings | 10.1 | 29.0 | |||||
Settlements | (38.8 | ) | (43.4 | ) | |||
Transfers into Level 3 | — | — | |||||
Transfers out of Level 3 | — | — | |||||
Ending balance - March 31 | $ | 34.5 | $ | 43.3 | |||
Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date | $ | 10.1 | $ | 29.0 |
(In Millions) | |||||||
Derivative Liabilities (Level 3) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Beginning balance | $ | (9.5 | ) | $ | (1.0 | ) | |
Total gains (losses) | |||||||
Included in earnings | (16.2 | ) | (4.0 | ) | |||
Settlements | 9.5 | 1.0 | |||||
Transfers into Level 3 | — | — | |||||
Transfers out of Level 3 | — | — | |||||
Ending balance - March 31 | $ | (16.2 | ) | $ | (4.0 | ) | |
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date | $ | (16.2 | ) | $ | (4.0 | ) |
(In Millions) | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Classification | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Long-term debt: | |||||||||||||||||
Senior notes—$700 million | Level 1 | $ | 422.9 | $ | 220.0 | $ | 689.5 | $ | 367.3 | ||||||||
Senior notes—$1.3 billion | Level 1 | 795.1 | 425.8 | 1,279.9 | 704.0 | ||||||||||||
Senior notes—$400 million | Level 1 | 325.7 | 190.5 | 393.7 | 228.1 | ||||||||||||
Senior notes—$500 million | Level 1 | 433.8 | 337.9 | 477.4 | 312.0 | ||||||||||||
Senior First Lien Notes —$540 million | Level 1 | 503.5 | 507.6 | — | — | ||||||||||||
Senior Second Lien Notes —$544.2 million | Level 2 | 397.2 | 397.2 | — | — | ||||||||||||
Asset-Based Revolving Credit Facility | Level 2 | — | — | — | — | ||||||||||||
Fair value adjustment to interest rate hedge | Level 2 | 2.7 | 2.7 | 2.8 | 2.8 | ||||||||||||
Total long-term debt | $ | 2,880.9 | $ | 2,081.7 | $ | 2,843.3 | $ | 1,614.2 |
(In Millions) | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
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 Gains | |||||||||||||||
Liabilities: | ||||||||||||||||||||
$544.2 Million 7.75% 2020 Second Lien Notes | $ | — | $ | 397.2 | $ | — | $ | 397.2 | $ | 269.5 | ||||||||||
$ | — | $ | 397.2 | $ | — | $ | 397.2 | $ | 269.5 |
(In Millions) | ||||||||||||||||||||
December 31, 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 | — | — | 72.4 | 72.4 | 526.5 | |||||||||||||||
Other reporting units | — | — | — | — | 11.3 | |||||||||||||||
Other long-lived assets - Intangibles and other long-term assets: | ||||||||||||||||||||
Asia Pacific Iron Ore reporting unit | — | — | 7.0 | 7.0 | 24.2 | |||||||||||||||
Investment in ventures impairment - Global Exploration | — | — | — | — | 9.2 | |||||||||||||||
$ | — | $ | — | $ | 79.4 | $ | 79.4 | $ | 644.7 |
|
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Service cost | $ | 6.3 | $ | 6.7 | |||
Interest cost | 9.4 | 10.1 | |||||
Expected return on plan assets | (14.9 | ) | (14.5 | ) | |||
Amortization: | |||||||
Prior service costs | 0.6 | 0.6 | |||||
Net actuarial loss | 5.4 | 3.5 | |||||
Curtailments/settlements | 0.3 | 0.3 | |||||
Net periodic benefit cost to continuing operations | $ | 7.1 | $ | 6.7 |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Service cost | $ | 1.5 | $ | 1.7 | |||
Interest cost | 3.3 | 3.4 | |||||
Expected return on plan assets | (4.6 | ) | (4.3 | ) | |||
Amortization: | |||||||
Prior service costs | (0.9 | ) | (0.9 | ) | |||
Net actuarial loss | 3.1 | 1.3 | |||||
Net periodic benefit cost to continuing operations | $ | 2.4 | $ | 1.2 |
|
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) | |||||||||||
January 12, 2015 | $ | 7.70 | 2.97 | 58.3% | 0.91% | —% | $ | 11.56 | 150.13% | |||||||||
February 9, 2015 | $ | 6.57 | 2.89 | 58.3% | 0.87% | —% | $ | 9.86 | 150.13% |
Grant Date | Grant Date Market Price | Average Expected Term (Years) | Expected Volatility | Risk-Free Interest Rate | Dividend Yield | Fair Value | ||||||||||
January 12, 2015 | $ | 7.70 | 6.47 | 75.3% | 1.60% | —% | $ | 5.23 |
|
|
(In Millions) | |||||||
Capital Leases | Operating Leases | ||||||
2015 (April 1 - December 31) | $ | 20.5 | $ | 7.5 | |||
2016 | 25.8 | 7.9 | |||||
2017 | 22.8 | 7.3 | |||||
2018 | 18.4 | 6.6 | |||||
2019 | 10.0 | 4.8 | |||||
2020 and thereafter | 18.8 | 9.9 | |||||
Total minimum lease payments | $ | 116.3 | $ | 44.0 | |||
Amounts representing interest | 25.1 | ||||||
Present value of net minimum lease payments | $ | 91.2 | (1) |
(1) | The total is comprised of $19.5 million and $71.7 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at March 31, 2015. |
|
(In Millions) | |||||||
March 31, 2015 | December 31, 2014 | ||||||
Environmental | $ | 3.7 | $ | 5.5 | |||
Mine closure | |||||||
LTVSMC | 23.2 | 22.9 | |||||
Operating mines: | |||||||
U.S. Iron Ore | 121.8 | 120.9 | |||||
Asia Pacific Iron Ore | 20.3 | 21.5 | |||||
Total mine closure | 165.3 | 165.3 | |||||
Total environmental and mine closure obligations | 169.0 | 170.8 | |||||
Less current portion | 3.4 | 5.2 | |||||
Long term environmental and mine closure obligations | $ | 165.6 | $ | 165.6 |
(In Millions) | |||||||
March 31, 2015 | December 31, 2014 (1) | ||||||
Asset retirement obligation at beginning of period | $ | 142.4 | $ | 177.6 | |||
Accretion expense | 1.2 | 5.7 | |||||
Exchange rate changes | (1.5 | ) | (2.4 | ) | |||
Revision in estimated cash flows | — | (38.5 | ) | ||||
Asset retirement obligation at end of period | $ | 142.1 | $ | 142.4 | |||
(1) Represents a 12-month rollforward of our asset retirement obligation at December 31, 2014. |
|
(In Millions) | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
U.S. Iron Ore | Asia Pacific Iron Ore | Total | U.S. Iron Ore | Asia Pacific Iron Ore | Total | ||||||||||||||||||
Beginning Balance | $ | 2.0 | $ | — | $ | 2.0 | $ | 2.0 | $ | 72.5 | $ | 74.5 | |||||||||||
Arising in business combinations | — | — | — | — | — | — | |||||||||||||||||
Impairment | — | — | — | — | (73.5 | ) | (73.5 | ) | |||||||||||||||
Impact of foreign currency translation | — | — | — | — | 1.0 | 1.0 | |||||||||||||||||
Ending Balance | $ | 2.0 | $ | — | $ | 2.0 | $ | 2.0 | $ | — | $ | 2.0 | |||||||||||
Accumulated goodwill impairment loss | $ | — | $ | (73.5 | ) | $ | (73.5 | ) | $ | — | $ | (73.5 | ) | $ | (73.5 | ) |
(In Millions) | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
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 | $ | 78.7 | $ | (17.5 | ) | $ | 61.2 | $ | 79.2 | $ | (16.5 | ) | $ | 62.7 | ||||||||||
Total intangible assets | $ | 78.7 | $ | (17.5 | ) | $ | 61.2 | $ | 79.2 | $ | (16.5 | ) | $ | 62.7 | |||||||||||
Below-market sales contracts | Other current liabilities | $ | (23.0 | ) | $ | — | $ | (23.0 | ) | $ | (23.0 | ) | $ | — | $ | (23.0 | ) | ||||||||
Below-market sales contracts | Other liabilities | (205.9 | ) | 182.8 | (23.1 | ) | (205.9 | ) | 182.8 | (23.1 | ) | ||||||||||||||
Total below-market sales contracts | $ | (228.9 | ) | $ | 182.8 | $ | (46.1 | ) | $ | (228.9 | ) | $ | 182.8 | $ | (46.1 | ) |
(In Millions) | |||
Amount | |||
Year Ending December 31, | |||
2015 (remaining nine months) | $ | 3.0 | |
2016 | 4.0 | ||
2017 | 4.0 | ||
2018 | 4.2 | ||
2019 | 3.1 | ||
2020 | 2.5 | ||
Total | $ | 20.8 |
(In Millions) | |||
Amount | |||
Year Ending December 31, | |||
2015 (remaining nine months) | $ | 23.0 | |
2016 | 23.1 | ||
Total | $ | 46.1 |
|
(In Millions) | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||
Derivatives designated as hedging instruments under ASC 815: | |||||||||||||||||||||||
Foreign Exchange Contracts | $ | — | $ | — | $ | — | Other current liabilities | $ | 21.6 | ||||||||||||||
Total derivatives designated as hedging instruments under ASC 815 | $ | — | $ | — | $ | — | $ | 21.6 | |||||||||||||||
Derivatives not designated as hedging instruments under ASC 815: | |||||||||||||||||||||||
Foreign Exchange Contracts | $ | — | $ | — | Other current liabilities | $ | 8.7 | Other current liabilities | $ | 9.9 | |||||||||||||
Commodity Contracts | — | — | Other current liabilities | 1.6 | — | ||||||||||||||||||
Customer Supply Agreement | Other current assets | 34.5 | Other current assets | 63.2 | — | — | |||||||||||||||||
Provisional Pricing Arrangements | — | — | Other current liabilities | 16.2 | Other current liabilities | 9.5 | |||||||||||||||||
Total derivatives not designated as hedging instruments under ASC 815 | $ | 34.5 | $ | 63.2 | $ | 26.5 | $ | 19.4 | |||||||||||||||
Total derivatives | $ | 34.5 | $ | 63.2 | $ | 26.5 | $ | 41.0 |
(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 March 31, | Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Australian Dollar Foreign Exchange Contracts (hedge designation) | $ | (2.6 | ) | $ | 5.5 | Product revenues | $ | (6.3 | ) | $ | (9.1 | ) | |||||
Australian Dollar Foreign Exchange Contracts (prior to de-designation) | (4.5 | ) | — | Product revenues | — | — | |||||||||||
Canadian Dollar Foreign Exchange Contracts (hedge designation) | — | (7.8 | ) | Cost of goods sold and operating expenses | — | (3.4 | ) | ||||||||||
Canadian Dollar Foreign Exchange Contracts (prior to de-designation) | — | — | Cost of goods sold and operating expenses | — | (0.3 | ) | |||||||||||
$ | (7.1 | ) | $ | (2.3 | ) | $ | (6.3 | ) | $ | (12.8 | ) |
(In Millions) | ||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivative | ||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Foreign Exchange Contracts | Other non-operating income (expense) (1) | $ | (5.9 | ) | $ | (0.9 | ) | |
Commodity Contracts | Cost of goods sold and operating expenses | (3.6 | ) | — | ||||
Customer Supply Agreement | Product revenues | 10.1 | 27.7 | |||||
Provisional Pricing Arrangements | Product revenues | (16.2 | ) | (2.7 | ) | |||
$ | (15.6 | ) | $ | 24.1 |
(1) | At March 31, 2014, the location of the Gain (Loss) Recognized in Income on Derivative for Foreign Exchange Contracts was Cost of goods sold and operating expenses. |
|
Canadian Operations | ||||||||||||||||||
North American Coal | Eastern Canadian Iron Ore | Other | Total Canadian Operations | Total of Discontinued Operations | ||||||||||||||
Statements of Unaudited Condensed Consolidated Operations | ||||||||||||||||||
Loss from Discontinued Operations, net of tax | YTD March 31, 2015 | $ | (75.7 | ) | $ | (852.7 | ) | $ | (0.1 | ) | $ | (852.8 | ) | $ | (928.5 | ) | ||
Loss from Discontinued Operations, net of tax | YTD March 31, 2014 | $ | (46.3 | ) | $ | (91.2 | ) | $ | (2.9 | ) | $ | (94.1 | ) | $ | (140.4 | ) | ||
Statements of Unaudited Condensed Consolidated Financial Position | ||||||||||||||||||
Short-term assets of discontinued operations | As of March 31, 2015 | $ | 188.6 | $ | 8.6 | $ | — | $ | 8.6 | $ | 197.2 | |||||||
Long-term assets of discontinued operations | As of March 31, 2015 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Short-term liabilities of discontinued operations | As of March 31, 2015 | $ | 197.7 | $ | 67.3 | $ | — | $ | 67.3 | $ | 265.0 | |||||||
Long-term liabilities of discontinued operations | As of March 31, 2015 | $ | — | $ | 125.2 | $ | — | $ | 125.2 | $ | 125.2 | |||||||
Short-term assets of discontinued operations | As of December 31, 2014 | $ | 143.8 | $ | 183.5 | $ | 3.3 | $ | 186.8 | $ | 330.6 | |||||||
Long-term assets of discontinued operations | As of December 31, 2014 | $ | 130.4 | $ | 256.0 | $ | 13.7 | $ | 269.7 | $ | 400.1 | |||||||
Short-term liabilities of discontinued operations | As of December 31, 2014 | $ | 81.3 | $ | 316.3 | $ | 3.0 | $ | 319.3 | $ | 400.6 | |||||||
Long-term liabilities of discontinued operations | As of December 31, 2014 | $ | 125.9 | $ | 304.6 | $ | 5.6 | $ | 310.2 | $ | 436.1 | |||||||
Non-Cash Operating and Investing Activities | ||||||||||||||||||
Depreciation, depletion and amortization: | YTD March 31, 2015 | $ | 3.2 | $ | — | $ | — | $ | — | $ | 3.2 | |||||||
Purchase of property, plant and equipment | YTD March 31, 2015 | $ | 2.5 | $ | — | $ | — | $ | — | $ | 2.5 | |||||||
Impairment of long-lived assets | YTD March 31, 2015 | $ | 73.4 | $ | — | $ | — | $ | — | $ | 73.4 | |||||||
Depreciation, depletion and amortization: | YTD March 31, 2014 | $ | 29.9 | $ | 41.2 | $ | 0.1 | $ | 41.3 | $ | 71.2 | |||||||
Purchase of property, plant and equipment | YTD March 31, 2014 | $ | 10.0 | $ | 75.6 | $ | — | $ | 75.6 | $ | 85.6 | |||||||
Impairment of long-lived assets | YTD March 31, 2014 | $ | — | $ | — | $ | — | $ | — | $ | — |
(In Millions) | ||||||||
Three Months Ended March 31, | ||||||||
Loss from Discontinued Operations | 2015 | 2014 | ||||||
REVENUES FROM PRODUCT SALES AND SERVICES | $ | 116.6 | $ | 166.2 | ||||
COST OF GOODS SOLD AND OPERATING EXPENSES | (107.3 | ) | (214.6 | ) | ||||
SALES MARGIN | 9.3 | (48.4 | ) | |||||
OTHER OPERATING EXPENSE | (11.3 | ) | (4.5 | ) | ||||
OTHER EXPENSE | (0.4 | ) | (0.6 | ) | ||||
LOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES | (2.4 | ) | (53.5 | ) | ||||
IMPAIRMENT OF LONG-LIVED ASSETS | (73.4 | ) | — | |||||
INCOME TAX BENEFIT | 0.1 | 7.2 | ||||||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | $ | (75.7 | ) | $ | (46.3 | ) |
(In Millions) | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
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: | ||||||||||||||||||||
Other long-lived assets - Property, plant and equipment and Mineral rights: North American Coal operating unit | $ | — | $ | — | $ | 20.4 | $ | 20.4 | $ | (73.4 | ) | |||||||||
$ | — | $ | — | $ | 20.4 | $ | 20.4 | $ | (73.4 | ) |
(In Millions) | ||||||||
Assets and Liabilities of Discontinued Operations | March 31, 2015 | December 31, 2014 | ||||||
Accounts receivable, net | $ | 42.7 | $ | 44.8 | ||||
Inventories | 59.7 | 50.3 | ||||||
Supplies and other inventories | 28.4 | 28.2 | ||||||
Other current assets | 29.4 | 20.5 | ||||||
Property, plant and equipment, net | 20.4 | 94.7 | ||||||
Other non-current assets | 8.0 | 35.7 | ||||||
Total assets of discontinued operations | $ | 188.6 | $ | 274.2 | ||||
Accounts payable | $ | 23.3 | $ | 22.4 | ||||
Accrued liabilities | 16.7 | 27.9 | ||||||
Other current liabilities | 34.7 | 31.0 | ||||||
Pension and postemployment benefit liabilities1 | 56.7 | 55.8 | ||||||
Environmental and mine closure obligations | 34.4 | 33.9 | ||||||
Other liabilities | 31.9 | 36.2 | ||||||
Total liabilities of discontinued operations | $ | 197.7 | $ | 207.2 | ||||
1 This does not include a liability of approximately $330 million, which is the most recent estimate of Pinnacle and Oak Grove’s combined share of the underfunded liability under the UMWA 1974 Pension Plan. |
(In Millions) | ||||||||
Three Months Ended March 31, | ||||||||
Loss from Discontinued Operations | 2015 | 2014 | ||||||
REVENUES FROM PRODUCT SALES AND SERVICES | $ | 11.3 | $ | 158.3 | ||||
COST OF GOODS SOLD AND OPERATING EXPENSES | (11.1 | ) | (208.0 | ) | ||||
ELIMINATIONS WITH CONTINUING OPERATIONS | — | (28.7 | ) | |||||
SALES MARGIN | 0.2 | (78.4 | ) | |||||
OTHER OPERATING EXPENSE | (33.3 | ) | (58.6 | ) | ||||
OTHER EXPENSE | (1.0 | ) | (1.4 | ) | ||||
LOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES | (34.1 | ) | (138.4 | ) | ||||
PRETAX EXIT COSTS | (818.7 | ) | — | |||||
INCOME TAX BENEFIT | — | 44.3 | ||||||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | $ | (852.8 | ) | $ | (94.1 | ) |
(In Millions) | ||||
Three Months Ended March 31, | ||||
Pretax Exit Costs | 2015 | |||
Investment Impairment on Deconsolidation | $ | (476.0 | ) | |
Contingent Liabilities | (342.7 | ) | ||
Total Pretax Exit Costs | $ | (818.7 | ) |
(In Millions) | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
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: | ||||||||||||||||||||
Loans to and accounts receivables from the Canadian Entities | $ | — | $ | — | $ | 112.1 | $ | 112.1 | $ | (476.0 | ) | |||||||||
Liabilities: | ||||||||||||||||||||
Contingent liabilities and joint and several liabilities | $ | — | $ | — | $ | 342.7 | $ | 342.7 | $ | (342.7 | ) |
(In Millions) | ||||
Assets and Liabilities of Discontinued Operations | March 31, 2015 | |||
Accounts receivable, net | $ | 3.0 | ||
Income tax receivable | 1.8 | |||
Other non-current assets | 3.8 | |||
Total Assets | $ | 8.6 | ||
Accounts payable | $ | 0.5 | ||
Accrued expenses | 51.1 | |||
Other liabilities | 140.9 | |||
Total Liabilities | $ | 192.5 |
(In Millions) | ||||
Assets and Liabilities of Discontinued Operations | December 31, 2014 | |||
Cash and cash equivalents | $ | 19.7 | ||
Accounts receivable, net | 37.9 | |||
Inventories | 16.3 | |||
Supplies and other inventories | 48.5 | |||
Income tax receivable | 20.1 | |||
Other current assets | 44.3 | |||
Property, plant and equipment, net | 249.8 | |||
Other non-current assets | 19.9 | |||
Total Assets | $ | 456.5 | ||
Accounts payable | $ | 83.6 | ||
Accrued expenses | 200.0 | |||
Other current liabilities | 35.7 | |||
Pension and postemployment benefit liabilities | 79.8 | |||
Environmental and mine closure obligations | 56.5 | |||
Other liabilities | 173.9 | |||
Total Liabilities | $ | 629.5 |
|
|
(In Millions) | |||||||||||
Cliffs Shareholders’ Equity (Deficit) | Noncontrolling Interest (Deficit) | Total Equity (Deficit) | |||||||||
December 31, 2014 | $ | (1,431.3 | ) | $ | (303.0 | ) | $ | (1,734.3 | ) | ||
Comprehensive income | |||||||||||
Net loss | (759.8 | ) | (1.9 | ) | (761.7 | ) | |||||
Other comprehensive income | 207.6 | (10.8 | ) | 196.8 | |||||||
Total comprehensive income | (552.2 | ) | (12.7 | ) | (564.9 | ) | |||||
Effect of deconsolidation | — | 528.2 | 528.2 | ||||||||
Stock and other incentive plans | 0.6 | — | 0.6 | ||||||||
Preferred share dividends | (12.8 | ) | — | (12.8 | ) | ||||||
Undistributed losses to noncontrolling interest | — | 1.1 | 1.1 | ||||||||
March 31, 2015 | $ | (1,995.7 | ) | $ | 213.6 | $ | (1,782.1 | ) |
(In Millions) | |||||||||||
Cliffs Shareholders’ Equity (Deficit) | Noncontrolling Interest (Deficit) | Total Equity (Deficit) | |||||||||
December 31, 2013 | $ | 6,069.5 | $ | 814.8 | $ | 6,884.3 | |||||
Comprehensive income | |||||||||||
Net income | (70.3 | ) | (0.4 | ) | (70.7 | ) | |||||
Other comprehensive income | 57.8 | 0.5 | 58.3 | ||||||||
Total comprehensive income | (12.5 | ) | 0.1 | (12.4 | ) | ||||||
Stock and other incentive plans | (1.4 | ) | — | (1.4 | ) | ||||||
Common and preferred share dividends | (36.1 | ) | — | (36.1 | ) | ||||||
Undistributed losses to noncontrolling interest | — | 1.2 | 1.2 | ||||||||
March 31, 2014 | $ | 6,019.5 | $ | 816.1 | $ | 6,835.6 |
(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, 2014 | $ | (291.1 | ) | $ | (1.0 | ) | $ | 64.4 | $ | (18.1 | ) | $ | (245.8 | ) | |||||
Other comprehensive income (loss) before reclassifications | 31.1 | 2.8 | (14.7 | ) | (7.1 | ) | 12.1 | ||||||||||||
Net loss (gain) reclassified from accumulated other comprehensive income (loss) | 8.5 | (2.0 | ) | 182.7 | 6.3 | 195.5 | |||||||||||||
Balance March 31, 2015 | $ | (251.5 | ) | $ | (0.2 | ) | $ | 232.4 | $ | (18.9 | ) | $ | (38.2 | ) |
(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 | ) |
(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 March 31, | ||||||||||
2015 | 2014 | |||||||||
Amortization of Pension and Postretirement Benefit Liability: | ||||||||||
Prior service costs (1) | $ | (0.3 | ) | $ | (0.3 | ) | ||||
Net actuarial loss (1) | 8.5 | 4.8 | ||||||||
Settlements/curtailments (1) | 0.3 | 0.3 | ||||||||
8.5 | 4.8 | Total before taxes | ||||||||
— | (1.6 | ) | Income tax benefit (expense) | |||||||
$ | 8.5 | $ | 3.2 | Net of taxes | ||||||
Unrealized gain (loss) on marketable securities: | ||||||||||
Sale of marketable securities | $ | — | $ | 0.1 | Other non-operating income (expense) | |||||
Impairment | (2.0 | ) | — | Other non-operating income (expense) | ||||||
(2.0 | ) | 0.1 | Total before taxes | |||||||
— | — | Income tax benefit (expense) | ||||||||
$ | (2.0 | ) | $ | 0.1 | Net of taxes | |||||
Unrealized gain (loss) on foreign currency translation: | ||||||||||
Effect of deconsolidation (2) | $ | 182.7 | $ | — | Loss from Discontinued Operations, net of tax | |||||
— | — | Income tax benefit (expense) | ||||||||
$ | 182.7 | $ | — | Net of taxes | ||||||
Unrealized gain (loss) on derivative financial instruments: | ||||||||||
Australian dollar foreign exchange contracts | $ | 9.0 | $ | 13.0 | Product revenues | |||||
Canadian dollar foreign exchange contracts | — | 5.5 | Cost of goods sold and operating expenses | |||||||
9.0 | 18.5 | Total before taxes | ||||||||
(2.7 | ) | (5.7 | ) | Income tax benefit (expense) | ||||||
$ | 6.3 | $ | 12.8 | Net of taxes | ||||||
Total Reclassifications for the Period | $ | 195.5 | $ | 16.1 |
(1) | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See NOTE 7 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS for further information. |
(2) | Represents Canadian accumulated currency translation adjustments deconsolidated on January 27, 2015. |
|
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Capital additions | $ | 26.1 | $ | 79.2 | |||
Cash paid for capital expenditures | 15.9 | 103.3 | |||||
Difference | $ | 10.2 | $ | (24.1 | ) | ||
Non-cash accruals | $ | 10.2 | $ | (34.0 | ) | ||
Capital leases | — | 9.9 | |||||
Total | $ | 10.2 | $ | (24.1 | ) |
|
Mine | Cliffs Natural Resources | ArcelorMittal | U.S. Steel Corporation | |||||||
Empire | 79.0 | % | 21.0 | % | — | |||||
Tilden | 85.0 | % | — | 15.0 | % | |||||
Hibbing | 23.0 | % | 62.3 | % | 14.7 | % |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Product revenues from related parties | $ | 110.4 | $ | 134.4 | |||
Total product revenues | 399.5 | 559.2 | |||||
Related party product revenue as a percent of total product revenue | 27.6 | % | 24.0 | % |
|
(In Millions, Except Per Share Amounts) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Net Income from Continuing Operations Attributable to Cliffs Shareholders | $ | 168.7 | $ | 70.1 | |||
Loss from Discontinued Operations, net of tax | (928.5 | ) | (140.4 | ) | |||
Net Loss Attributable to Cliffs Shareholders | $ | (759.8 | ) | $ | (70.3 | ) | |
Preferred Stock Dividends | (12.8 | ) | (12.8 | ) | |||
Net Loss Attributable to Cliffs Common Shareholders | $ | (772.6 | ) | $ | (83.1 | ) | |
Weighted Average Number of Shares: | |||||||
Basic | 153.2 | 153.0 | |||||
Depositary Shares | 25.2 | — | |||||
Employee Stock Plans | 0.3 | 0.6 | |||||
Diluted | 178.7 | 153.6 | |||||
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Basic: | |||||||
Continuing operations | $ | 1.02 | $ | 0.37 | |||
Discontinued operations | (6.06 | ) | (0.92 | ) | |||
$ | (5.04 | ) | $ | (0.55 | ) | ||
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Diluted: | |||||||
Continuing operations | $ | 0.94 | $ | 0.37 | |||
Discontinued operations | (5.20 | ) | (0.91 | ) | |||
$ | (4.26 | ) | $ | (0.54 | ) |
|
|
|
Name | Location | Ownership Interest | Operation | Status of Operations | ||||
Northshore | Minnesota | 100.0% | Iron Ore | Active | ||||
United Taconite | Minnesota | 100.0% | Iron Ore | Active | ||||
Tilden | Michigan | 85.0% | Iron Ore | Active | ||||
Empire | Michigan | 79.0% | Iron Ore | Active | ||||
Koolyanobbing | Western Australia | 100.0% | Iron Ore | Active | ||||
Pinnacle | West Virginia | 100.0% | Coal | Active - Held for Sale | ||||
Oak Grove | Alabama | 100.0% | Coal | Active - Held for Sale | ||||
Wabush1 | Newfoundland and Labrador/ Quebec, Canada | 100.0% | Iron Ore | Permanent closure | ||||
Bloom Lake1 | Quebec, Canada | 82.8% | Iron Ore | Care-and-maintenance | ||||
Cliffs Chromite Ontario - Black Label Deposit1 | Ontario, Canada | 100.0% | Chromite | Suspended | ||||
Cliffs Chromite Ontario - Black Thor Deposit1 | Ontario, Canada | 100.0% | Chromite | Suspended | ||||
Cliffs Chromite Ontario & Cliffs Chromite Far North - Big Daddy Deposit1 | Ontario, Canada | 70.0% | Chromite | Suspended | ||||
1 As of January 27, 2015, we deconsolidated substantially all of our Canadian operations following the CCAA filing. See NOTE 14 - DISCONTINUED OPERATIONS for further information. |
(In Millions) | ||||||||||||||
Investment | Classification | Accounting Method | Interest Percentage | March 31, 2015 | December 31, 2014 | |||||||||
Hibbing | Other non-current assets | Equity Method | 23% | $ | 2.5 | $ | 3.1 | |||||||
Other | Other non-current assets | Equity Method | Various | 0.9 | 1.0 | |||||||||
$ | 3.4 | $ | 4.1 |
|
Name | Location | Ownership Interest | Operation | Status of Operations | ||||
Northshore | Minnesota | 100.0% | Iron Ore | Active | ||||
United Taconite | Minnesota | 100.0% | Iron Ore | Active | ||||
Tilden | Michigan | 85.0% | Iron Ore | Active | ||||
Empire | Michigan | 79.0% | Iron Ore | Active | ||||
Koolyanobbing | Western Australia | 100.0% | Iron Ore | Active | ||||
Pinnacle | West Virginia | 100.0% | Coal | Active - Held for Sale | ||||
Oak Grove | Alabama | 100.0% | Coal | Active - Held for Sale | ||||
Wabush1 | Newfoundland and Labrador/ Quebec, Canada | 100.0% | Iron Ore | Permanent closure | ||||
Bloom Lake1 | Quebec, Canada | 82.8% | Iron Ore | Care-and-maintenance | ||||
Cliffs Chromite Ontario - Black Label Deposit1 | Ontario, Canada | 100.0% | Chromite | Suspended | ||||
Cliffs Chromite Ontario - Black Thor Deposit1 | Ontario, Canada | 100.0% | Chromite | Suspended | ||||
Cliffs Chromite Ontario & Cliffs Chromite Far North - Big Daddy Deposit1 | Ontario, Canada | 70.0% | Chromite | Suspended | ||||
1 As of January 27, 2015, we deconsolidated substantially all of our Canadian operations following the CCAA filing. See NOTE 14 - DISCONTINUED OPERATIONS for further information. |
(In Millions) | ||||||||||||||
Investment | Classification | Accounting Method | Interest Percentage | March 31, 2015 | December 31, 2014 | |||||||||
Hibbing | Other non-current assets | Equity Method | 23% | $ | 2.5 | $ | 3.1 | |||||||
Other | Other non-current assets | Equity Method | Various | 0.9 | 1.0 | |||||||||
$ | 3.4 | $ | 4.1 |
|
(In Millions) | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Revenues from product sales and services: | |||||||||||||
U.S. Iron Ore | $ | 311.8 | 70 | % | $ | 361.3 | 59 | % | |||||
Asia Pacific Iron Ore | 134.2 | 30 | % | 254.2 | 41 | % | |||||||
Total revenues from product sales and services | $ | 446.0 | 100 | % | $ | 615.5 | 100 | % | |||||
Sales margin: | |||||||||||||
U.S. Iron Ore | $ | 80.0 | $ | 95.0 | |||||||||
Asia Pacific Iron Ore | 0.8 | 66.3 | |||||||||||
Eliminations with Discontinued Operations | — | 28.7 | |||||||||||
Sales margin | 80.8 | 190.0 | |||||||||||
Other operating income | (8.9 | ) | (50.8 | ) | |||||||||
Other income (expense) | 270.0 | (39.6 | ) | ||||||||||
Income from continuing operations before income taxes and equity loss from ventures | $ | 341.9 | $ | 99.6 |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Net Loss | $ | (761.7 | ) | $ | (70.7 | ) | |
Less: | |||||||
Interest expense, net | (44.2 | ) | (42.7 | ) | |||
Income tax benefit (expense) | (175.0 | ) | 21.8 | ||||
Depreciation, depletion and amortization | (33.0 | ) | (141.1 | ) | |||
EBITDA | $ | (509.5 | ) | $ | 91.3 | ||
Less: | |||||||
Impact of discontinued operations | $ | (924.1 | ) | $ | (118.1 | ) | |
North American Coal operations impact | (5.5 | ) | 18.2 | ||||
Gain on extinguishment of debt | 313.7 | — | |||||
Severance in SG&A | (1.5 | ) | (6.0 | ) | |||
Foreign exchange remeasurement | 13.5 | (11.4 | ) | ||||
Adjusted EBITDA | $ | 94.4 | $ | 208.6 | |||
EBITDA: | |||||||
U.S. Iron Ore | $ | 101.6 | $ | 123.6 | |||
Asia Pacific Iron Ore | 18.0 | 85.3 | |||||
Other | (629.1 | ) | (117.6 | ) | |||
Total EBITDA | $ | (509.5 | ) | $ | 91.3 | ||
Adjusted EBITDA: | |||||||
U.S. Iron Ore | $ | 105.1 | $ | 128.7 | |||
Asia Pacific Iron Ore | 5.7 | 99.1 | |||||
Other | (16.4 | ) | (19.2 | ) | |||
Total Adjusted EBITDA | $ | 94.4 | $ | 208.6 |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Depreciation, depletion and amortization: | |||||||
U.S. Iron Ore | $ | 21.7 | $ | 28.7 | |||
Asia Pacific Iron Ore | 6.3 | 39.1 | |||||
Other | 1.8 | 1.9 | |||||
Total depreciation, depletion and amortization | $ | 29.8 | $ | 69.7 | |||
Capital additions1: | |||||||
U.S. Iron Ore | $ | 9.5 | $ | 14.9 | |||
Asia Pacific Iron Ore | 3.4 | 3.2 | |||||
Other | 0.4 | 0.9 | |||||
Total capital additions | $ | 13.3 | $ | 19.0 |
(In Millions) | |||||||
March 31, 2015 | December 31, 2014 | ||||||
Assets: | |||||||
U.S. Iron Ore | $ | 1,550.1 | $ | 1,464.9 | |||
Asia Pacific Iron Ore | 250.6 | 274.6 | |||||
Other | 31.2 | 147.0 | |||||
Total segment assets | 1,831.9 | 1,886.5 | |||||
Corporate | 673.5 | 546.8 | |||||
Assets of Discontinued Operations | 197.2 | 730.7 | |||||
Total assets | $ | 2,702.6 | $ | 3,164.0 |
|
(In Millions) | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Segment | Finished Goods | Work-in Process | Total Inventory | Finished Goods | Work-in Process | Total Inventory | |||||||||||||||||
U.S. Iron Ore | $ | 294.5 | $ | 13.9 | $ | 308.4 | $ | 132.1 | $ | 13.5 | $ | 145.6 | |||||||||||
Asia Pacific Iron Ore | 15.1 | 85.0 | 100.1 | 26.4 | 88.1 | 114.5 | |||||||||||||||||
Total | $ | 309.6 | $ | 98.9 | $ | 408.5 | $ | 158.5 | $ | 101.6 | $ | 260.1 |
|
(In Millions) | |||||||
March 31, 2015 | December 31, 2014 | ||||||
Land rights and mineral rights | $ | 500.5 | $ | 500.5 | |||
Office and information technology | 69.7 | 73.7 | |||||
Buildings | 59.8 | 59.8 | |||||
Mining equipment | 584.9 | 585.1 | |||||
Processing equipment | 512.7 | 510.2 | |||||
Electric power facilities | 44.2 | 46.8 | |||||
Land improvements | 24.8 | 24.7 | |||||
Other | 54.7 | 55.0 | |||||
Construction in-progress | 20.7 | 14.4 | |||||
1,872.0 | 1,870.2 | ||||||
Allowance for depreciation and depletion | (824.8 | ) | (799.7 | ) | |||
$ | 1,047.2 | $ | 1,070.5 |
|
($ in Millions) | |||||||||||||||
March 31, 2015 | |||||||||||||||
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 | $ | 423.2 | $ | 422.9 | (1) | |||||||
$1.3 Billion Senior Notes: | |||||||||||||||
$500 Million 4.80% 2020 Senior Notes | Fixed | 4.83% | 2020 | 308.5 | 308.1 | (2) | |||||||||
$800 Million 6.25% 2040 Senior Notes | Fixed | 6.34% | 2040 | 492.8 | 487.0 | (3) | |||||||||
$400 Million 5.90% 2020 Senior Notes | Fixed | 5.98% | 2020 | 326.8 | 325.7 | (4) | |||||||||
$500 Million 3.95% 2018 Senior Notes | Fixed | 6.32% | 2018 | 436.0 | 433.8 | (5) | |||||||||
$540 Million 8.25% 2020 First Lien Notes | Fixed | 9.97% | 2020 | 540.0 | 503.5 | (6) | |||||||||
$544.2 Million 7.75% 2020 Second Lien Notes | Fixed | 15.55% | 2020 | 544.2 | 397.2 | (7) | |||||||||
$550 Million ABL Facility: | |||||||||||||||
Asset-Based Revolving Credit Facility | Variable | —% | 2020 | 550.0 | — | (8) | |||||||||
Fair Value Adjustment to Interest Rate Hedge | 2.7 | ||||||||||||||
Total debt | $ | 3,621.5 | $ | 2,880.9 | |||||||||||
Less: Short-term and current portion of long-term debt | — | ||||||||||||||
Long-term debt | $ | 2,880.9 |
($ in Millions) | |||||||||||||||
December 31, 2014 | |||||||||||||||
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 | $ | 690.0 | $ | 689.5 | (1) | |||||||
$1.3 Billion Senior Notes: | |||||||||||||||
$500 Million 4.80% 2020 Senior Notes | Fixed | 4.83% | 2020 | 490.0 | 489.4 | (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 | 395.0 | 393.7 | (4) | |||||||||
$500 Million 3.95% 2018 Senior Notes | Fixed | 5.17% | 2018 | 480.0 | 477.4 | (5) | |||||||||
$1.125 Billion Credit Facility: | |||||||||||||||
Revolving Credit Agreement | Variable | 2.94% | 2017 | 1,125.0 | — | (9) | |||||||||
Fair Value Adjustment to Interest Rate Hedge | 2.8 | ||||||||||||||
Total debt | $ | 3,980.0 | $ | 2,843.3 | |||||||||||
Less: Short-term and current portion of long-term debt | — | ||||||||||||||
Long-term debt | $ | 2,843.3 |
(1) | During the first quarter of 2015, we purchased $58.3 million of outstanding 4.875 percent senior notes that were trading at a discount of 52.0 percent which resulted in a gain on extinguishment of $20.0 million. In addition, on March 27, 2015, we exchanged as part of a tender offer $208.5 million of the 4.875 percent senior notes for $170.3 million of the 7.75 percent second lien notes at a discount of $46.0 million based on an imputed interest rate of 15.55 percent, resulting in a gain on extinguishment of $83.1 million, net of amounts expensed for unamortized original issue discount and deferred origination fees. As of March 31, 2015, the $700.0 million 4.875 percent senior notes were recorded at a par value of $423.2 million less unamortized discounts of $0.3 million, based on an imputed interest rate of 4.89 percent. As of December 31, 2014, the $700.0 million 4.875 percent senior notes were recorded at a par value of $690.0 million less unamortized discounts of $0.5 million based on an imputed interest rate of 4.88 percent. |
(2) | During the first quarter of 2015, we purchased $43.8 million of outstanding 4.80 percent senior notes that were trading at a discount of 54.3 percent, which resulted in a gain on extinguishment of $15.6 million. In addition, on March 27, 2015, we exchanged as part of a tender offer $137.8 million of the 4.80 percent senior notes for $112.9 million of the 7.75 percent second lien notes at a discount of $30.5 million based on an imputed interest rate of 15.55 percent, resulting in a gain on extinguishment of $54.6 million, net of amounts expensed for unamortized original issue discount and deferred origination fees. As of March 31, 2015, the $500.0 million 4.80 percent senior notes were recorded at a par value of $308.5 million less unamortized discounts of $0.4 million, based on an imputed interest rate of 4.83 percent. As of December 31, 2014, the $500.0 million 4.80 percent senior notes were recorded at a par value of $490.0 million less unamortized discounts of $0.6 million based on an imputed interest rate of 4.83 percent. |
(3) | During the first quarter of 2015, we purchased $45.9 million of outstanding 6.25 percent senior notes that were trading at a discount of 52.5 percent, which resulted in a gain on extinguishment of $15.0 million. In addition, on March 27, 2015, we exchanged as part of a tender offer $261.3 million of the 6.25 percent senior notes for $203.5 million of the 7.75 percent second lien notes at a discount of $55.0 million based on an imputed interest rate of 15.55 percent, resulting in a gain on extinguishment of $107.3 million, net of amounts expensed for unamortized original issue discount and deferred origination fees. As of March 31, 2015, the $800 million 6.25 percent senior notes were recorded at a par value of $492.8 million less unamortized discounts of $5.8 million, based on an imputed interest rate of 6.34 percent. As of December 31, 2014, the $800 million 6.25 percent senior notes were recorded at a par value of $800.0 million less unamortized discounts of $9.5 million based on an imputed interest rate of 6.34 percent. |
(4) | During the first quarter of 2015, we purchased $1.3 million of outstanding 5.90 percent senior notes that were trading at a discount of 58.0 percent, which resulted in a gain on extinguishment of $0.3 million. In addition, on March 27, 2015, we exchanged as part of a tender offer $67.0 million of the 5.90 percent senior notes for $57.5 million of the 7.75 percent second lien notes at a discount of $15.5 million based on an imputed interest rate of 15.55 percent, resulting in a gain on extinguishment of $24.5 million, net of amounts expensed for unamortized original issue discount and deferred origination fees. As of March 31, 2015, the $400.0 million 5.90 percent senior notes were recorded at a par value of $326.8 million less unamortized discounts of $1.1 million, based on an imputed interest rate of 5.98 percent. As of December 31, 2014, the $400.0 million 5.90 percent senior notes were recorded at a par value of $395.0 million less unamortized discounts of $1.3 million based on an imputed interest rate of 5.98 percent. |
(5) | During the first quarter of 2015, we purchased $44.0 million of outstanding 3.95 percent senior notes that were trading at a discount of 77.5 percent, which resulted in a gain on the extinguishment of debt of $7.1 million. As of March 31, 2015, the $500.0 million 3.95 percent senior notes were recorded at a par value of $436.0 million less unamortized discounts of $2.2 million, based on an imputed interest rate of 6.32 percent. As of December 31, 2014, the $500.0 million 3.95 percent senior notes were recorded at a par value of $480.0 million less unamortized discounts of $2.6 million based on an imputed interest rate of 5.17 percent. |
(6) | As of March 31, 2015, the $540.0 million 8.25 percent first lien notes were recorded at a par value of $540.0 million less unamortized discounts of $36.5 million, based on an imputed interest rate of 9.97 percent. |
(7) | As of March 31, 2015, the $544.2 million 7.75 percent second lien notes were recorded at a par value of $544.2 million less unamortized discounts of $147.0 million, based on an imputed interest rate of 15.55 percent. See NOTE 6 - FAIR VALUE MEASUREMENTS for further discussion of unamortized discount as a result of the exchange offers. |
(8) | As of March 31, 2015, no loans were drawn under the ABL Facility and we had total availability of $441.1 million as a result of borrowing base limitations. As of March 31, 2015, the principal amount of letter of credit obligations totaled $136.2 million and foreign exchange hedge obligations totaled $5.5 million, thereby further reducing available borrowing capacity on our ABL Facility to $299.4 million. |
(9) | As of December 31, 2014, we had no revolving loans drawn under the revolving credit agreement of which had $1.125 billion availability. As of December 31, 2014, the principal amount of letter of credit obligations totaled $149.5 million, thereby further reducing available borrowing capacity on the revolving credit agreement to $975.5 million. |
(In Millions) | |||
Maturities of Debt | |||
2015 (April 1 - December 31) | $ | — | |
2016 | — | ||
2017 | — | ||
2018 | 436.0 | ||
2019 | — | ||
2020 | 1,719.5 | ||
2021 and thereafter | 916.0 | ||
Total maturities of debt | $ | 3,071.5 |
|
(In Millions) | |||||||||||||||
March 31, 2015 | |||||||||||||||
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 | — | — | 34.5 | 34.5 | |||||||||||
Available-for-sale marketable securities | 2.8 | — | — | 2.8 | |||||||||||
Total | $ | 122.8 | $ | — | $ | 34.5 | $ | 157.3 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | 1.6 | $ | 16.2 | $ | 17.8 | |||||||
Foreign exchange contracts | — | 8.7 | — | 8.7 | |||||||||||
Total | $ | — | $ | 10.3 | $ | 16.2 | $ | 26.5 |
(In Millions) | |||||||||||||||
December 31, 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: | |||||||||||||||
Derivative assets | $ | — | $ | — | $ | 63.2 | $ | 63.2 | |||||||
Available-for-sale marketable securities | 4.3 | — | — | 4.3 | |||||||||||
Total | $ | 4.3 | $ | — | $ | 63.2 | $ | 67.5 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 9.5 | $ | 9.5 | |||||||
Foreign exchange contracts | — | 31.5 | — | 31.5 | |||||||||||
Total | $ | — | $ | 31.5 | $ | 9.5 | $ | 41.0 |
Qualitative/Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||
(In Millions) Fair Value at March 31, 2015 | Balance Sheet Location | Valuation Technique | Unobservable Input | Range or Point Estimate per ton (Weighted Average) | ||||||||
Provisional Pricing Arrangements | $ | 16.2 | Other current liabilities | Market Approach | Management's Estimate of 62% Fe | $51 | ||||||
Customer Supply Agreement | $ | 34.5 | Other current assets | Market Approach | Hot-Rolled Steel Estimate | $540 - $575 ($563) |
(In Millions) | |||||||
Derivative Assets (Level 3) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Beginning balance | $ | 63.2 | $ | 57.7 | |||
Total gains (losses) | |||||||
Included in earnings | 10.1 | 29.0 | |||||
Settlements | (38.8 | ) | (43.4 | ) | |||
Transfers into Level 3 | — | — | |||||
Transfers out of Level 3 | — | — | |||||
Ending balance - March 31 | $ | 34.5 | $ | 43.3 | |||
Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date | $ | 10.1 | $ | 29.0 |
(In Millions) | |||||||
Derivative Liabilities (Level 3) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Beginning balance | $ | (9.5 | ) | $ | (1.0 | ) | |
Total gains (losses) | |||||||
Included in earnings | (16.2 | ) | (4.0 | ) | |||
Settlements | 9.5 | 1.0 | |||||
Transfers into Level 3 | — | — | |||||
Transfers out of Level 3 | — | — | |||||
Ending balance - March 31 | $ | (16.2 | ) | $ | (4.0 | ) | |
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date | $ | (16.2 | ) | $ | (4.0 | ) |
(In Millions) | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Classification | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Long-term debt: | |||||||||||||||||
Senior notes—$700 million | Level 1 | $ | 422.9 | $ | 220.0 | $ | 689.5 | $ | 367.3 | ||||||||
Senior notes—$1.3 billion | Level 1 | 795.1 | 425.8 | 1,279.9 | 704.0 | ||||||||||||
Senior notes—$400 million | Level 1 | 325.7 | 190.5 | 393.7 | 228.1 | ||||||||||||
Senior notes—$500 million | Level 1 | 433.8 | 337.9 | 477.4 | 312.0 | ||||||||||||
Senior First Lien Notes —$540 million | Level 1 | 503.5 | 507.6 | — | — | ||||||||||||
Senior Second Lien Notes —$544.2 million | Level 2 | 397.2 | 397.2 | — | — | ||||||||||||
Asset-Based Revolving Credit Facility | Level 2 | — | — | — | — | ||||||||||||
Fair value adjustment to interest rate hedge | Level 2 | 2.7 | 2.7 | 2.8 | 2.8 | ||||||||||||
Total long-term debt | $ | 2,880.9 | $ | 2,081.7 | $ | 2,843.3 | $ | 1,614.2 |
(In Millions) | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
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 Gains | |||||||||||||||
Liabilities: | ||||||||||||||||||||
$544.2 Million 7.75% 2020 Second Lien Notes | $ | — | $ | 397.2 | $ | — | $ | 397.2 | $ | 269.5 | ||||||||||
$ | — | $ | 397.2 | $ | — | $ | 397.2 | $ | 269.5 |
(In Millions) | ||||||||||||||||||||
December 31, 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 | — | — | 72.4 | 72.4 | 526.5 | |||||||||||||||
Other reporting units | — | — | — | — | 11.3 | |||||||||||||||
Other long-lived assets - Intangibles and other long-term assets: | ||||||||||||||||||||
Asia Pacific Iron Ore reporting unit | — | — | 7.0 | 7.0 | 24.2 | |||||||||||||||
Investment in ventures impairment - Global Exploration | — | — | — | — | 9.2 | |||||||||||||||
$ | — | $ | — | $ | 79.4 | $ | 79.4 | $ | 644.7 |
|
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Service cost | $ | 6.3 | $ | 6.7 | |||
Interest cost | 9.4 | 10.1 | |||||
Expected return on plan assets | (14.9 | ) | (14.5 | ) | |||
Amortization: | |||||||
Prior service costs | 0.6 | 0.6 | |||||
Net actuarial loss | 5.4 | 3.5 | |||||
Curtailments/settlements | 0.3 | 0.3 | |||||
Net periodic benefit cost to continuing operations | $ | 7.1 | $ | 6.7 |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Service cost | $ | 1.5 | $ | 1.7 | |||
Interest cost | 3.3 | 3.4 | |||||
Expected return on plan assets | (4.6 | ) | (4.3 | ) | |||
Amortization: | |||||||
Prior service costs | (0.9 | ) | (0.9 | ) | |||
Net actuarial loss | 3.1 | 1.3 | |||||
Net periodic benefit cost to continuing operations | $ | 2.4 | $ | 1.2 |
|
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) | |||||||||||
January 12, 2015 | $ | 7.70 | 2.97 | 58.3% | 0.91% | —% | $ | 11.56 | 150.13% | |||||||||
February 9, 2015 | $ | 6.57 | 2.89 | 58.3% | 0.87% | —% | $ | 9.86 | 150.13% |
Grant Date | Grant Date Market Price | Average Expected Term (Years) | Expected Volatility | Risk-Free Interest Rate | Dividend Yield | Fair Value | ||||||||||
January 12, 2015 | $ | 7.70 | 6.47 | 75.3% | 1.60% | —% | $ | 5.23 |
|
(In Millions) | |||||||
Capital Leases | Operating Leases | ||||||
2015 (April 1 - December 31) | $ | 20.5 | $ | 7.5 | |||
2016 | 25.8 | 7.9 | |||||
2017 | 22.8 | 7.3 | |||||
2018 | 18.4 | 6.6 | |||||
2019 | 10.0 | 4.8 | |||||
2020 and thereafter | 18.8 | 9.9 | |||||
Total minimum lease payments | $ | 116.3 | $ | 44.0 | |||
Amounts representing interest | 25.1 | ||||||
Present value of net minimum lease payments | $ | 91.2 | (1) |
(1) | The total is comprised of $19.5 million and $71.7 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at March 31, 2015. |
|
(In Millions) | |||||||
March 31, 2015 | December 31, 2014 | ||||||
Environmental | $ | 3.7 | $ | 5.5 | |||
Mine closure | |||||||
LTVSMC | 23.2 | 22.9 | |||||
Operating mines: | |||||||
U.S. Iron Ore | 121.8 | 120.9 | |||||
Asia Pacific Iron Ore | 20.3 | 21.5 | |||||
Total mine closure | 165.3 | 165.3 | |||||
Total environmental and mine closure obligations | 169.0 | 170.8 | |||||
Less current portion | 3.4 | 5.2 | |||||
Long term environmental and mine closure obligations | $ | 165.6 | $ | 165.6 |
(In Millions) | |||||||
March 31, 2015 | December 31, 2014 (1) | ||||||
Asset retirement obligation at beginning of period | $ | 142.4 | $ | 177.6 | |||
Accretion expense | 1.2 | 5.7 | |||||
Exchange rate changes | (1.5 | ) | (2.4 | ) | |||
Revision in estimated cash flows | — | (38.5 | ) | ||||
Asset retirement obligation at end of period | $ | 142.1 | $ | 142.4 | |||
(1) Represents a 12-month rollforward of our asset retirement obligation at December 31, 2014. |
|
(In Millions) | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
U.S. Iron Ore | Asia Pacific Iron Ore | Total | U.S. Iron Ore | Asia Pacific Iron Ore | Total | ||||||||||||||||||
Beginning Balance | $ | 2.0 | $ | — | $ | 2.0 | $ | 2.0 | $ | 72.5 | $ | 74.5 | |||||||||||
Arising in business combinations | — | — | — | — | — | — | |||||||||||||||||
Impairment | — | — | — | — | (73.5 | ) | (73.5 | ) | |||||||||||||||
Impact of foreign currency translation | — | — | — | — | 1.0 | 1.0 | |||||||||||||||||
Ending Balance | $ | 2.0 | $ | — | $ | 2.0 | $ | 2.0 | $ | — | $ | 2.0 | |||||||||||
Accumulated goodwill impairment loss | $ | — | $ | (73.5 | ) | $ | (73.5 | ) | $ | — | $ | (73.5 | ) | $ | (73.5 | ) |
(In Millions) | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
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 | $ | 78.7 | $ | (17.5 | ) | $ | 61.2 | $ | 79.2 | $ | (16.5 | ) | $ | 62.7 | ||||||||||
Total intangible assets | $ | 78.7 | $ | (17.5 | ) | $ | 61.2 | $ | 79.2 | $ | (16.5 | ) | $ | 62.7 | |||||||||||
Below-market sales contracts | Other current liabilities | $ | (23.0 | ) | $ | — | $ | (23.0 | ) | $ | (23.0 | ) | $ | — | $ | (23.0 | ) | ||||||||
Below-market sales contracts | Other liabilities | (205.9 | ) | 182.8 | (23.1 | ) | (205.9 | ) | 182.8 | (23.1 | ) | ||||||||||||||
Total below-market sales contracts | $ | (228.9 | ) | $ | 182.8 | $ | (46.1 | ) | $ | (228.9 | ) | $ | 182.8 | $ | (46.1 | ) |
(In Millions) | |||
Amount | |||
Year Ending December 31, | |||
2015 (remaining nine months) | $ | 3.0 | |
2016 | 4.0 | ||
2017 | 4.0 | ||
2018 | 4.2 | ||
2019 | 3.1 | ||
2020 | 2.5 | ||
Total | $ | 20.8 |
(In Millions) | |||
Amount | |||
Year Ending December 31, | |||
2015 (remaining nine months) | $ | 23.0 | |
2016 | 23.1 | ||
Total | $ | 46.1 |
|
(In Millions) | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||
Derivatives designated as hedging instruments under ASC 815: | |||||||||||||||||||||||
Foreign Exchange Contracts | $ | — | $ | — | $ | — | Other current liabilities | $ | 21.6 | ||||||||||||||
Total derivatives designated as hedging instruments under ASC 815 | $ | — | $ | — | $ | — | $ | 21.6 | |||||||||||||||
Derivatives not designated as hedging instruments under ASC 815: | |||||||||||||||||||||||
Foreign Exchange Contracts | $ | — | $ | — | Other current liabilities | $ | 8.7 | Other current liabilities | $ | 9.9 | |||||||||||||
Commodity Contracts | — | — | Other current liabilities | 1.6 | — | ||||||||||||||||||
Customer Supply Agreement | Other current assets | 34.5 | Other current assets | 63.2 | — | — | |||||||||||||||||
Provisional Pricing Arrangements | — | — | Other current liabilities | 16.2 | Other current liabilities | 9.5 | |||||||||||||||||
Total derivatives not designated as hedging instruments under ASC 815 | $ | 34.5 | $ | 63.2 | $ | 26.5 | $ | 19.4 | |||||||||||||||
Total derivatives | $ | 34.5 | $ | 63.2 | $ | 26.5 | $ | 41.0 |
(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 March 31, | Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Australian Dollar Foreign Exchange Contracts (hedge designation) | $ | (2.6 | ) | $ | 5.5 | Product revenues | $ | (6.3 | ) | $ | (9.1 | ) | |||||
Australian Dollar Foreign Exchange Contracts (prior to de-designation) | (4.5 | ) | — | Product revenues | — | — | |||||||||||
Canadian Dollar Foreign Exchange Contracts (hedge designation) | — | (7.8 | ) | Cost of goods sold and operating expenses | — | (3.4 | ) | ||||||||||
Canadian Dollar Foreign Exchange Contracts (prior to de-designation) | — | — | Cost of goods sold and operating expenses | — | (0.3 | ) | |||||||||||
$ | (7.1 | ) | $ | (2.3 | ) | $ | (6.3 | ) | $ | (12.8 | ) |
(In Millions) | ||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivative | ||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Foreign Exchange Contracts | Other non-operating income (expense) (1) | $ | (5.9 | ) | $ | (0.9 | ) | |
Commodity Contracts | Cost of goods sold and operating expenses | (3.6 | ) | — | ||||
Customer Supply Agreement | Product revenues | 10.1 | 27.7 | |||||
Provisional Pricing Arrangements | Product revenues | (16.2 | ) | (2.7 | ) | |||
$ | (15.6 | ) | $ | 24.1 |
(1) | At March 31, 2014, the location of the Gain (Loss) Recognized in Income on Derivative for Foreign Exchange Contracts was Cost of goods sold and operating expenses. |
|
Canadian Operations | ||||||||||||||||||
North American Coal | Eastern Canadian Iron Ore | Other | Total Canadian Operations | Total of Discontinued Operations | ||||||||||||||
Statements of Unaudited Condensed Consolidated Operations | ||||||||||||||||||
Loss from Discontinued Operations, net of tax | YTD March 31, 2015 | $ | (75.7 | ) | $ | (852.7 | ) | $ | (0.1 | ) | $ | (852.8 | ) | $ | (928.5 | ) | ||
Loss from Discontinued Operations, net of tax | YTD March 31, 2014 | $ | (46.3 | ) | $ | (91.2 | ) | $ | (2.9 | ) | $ | (94.1 | ) | $ | (140.4 | ) | ||
Statements of Unaudited Condensed Consolidated Financial Position | ||||||||||||||||||
Short-term assets of discontinued operations | As of March 31, 2015 | $ | 188.6 | $ | 8.6 | $ | — | $ | 8.6 | $ | 197.2 | |||||||
Long-term assets of discontinued operations | As of March 31, 2015 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Short-term liabilities of discontinued operations | As of March 31, 2015 | $ | 197.7 | $ | 67.3 | $ | — | $ | 67.3 | $ | 265.0 | |||||||
Long-term liabilities of discontinued operations | As of March 31, 2015 | $ | — | $ | 125.2 | $ | — | $ | 125.2 | $ | 125.2 | |||||||
Short-term assets of discontinued operations | As of December 31, 2014 | $ | 143.8 | $ | 183.5 | $ | 3.3 | $ | 186.8 | $ | 330.6 | |||||||
Long-term assets of discontinued operations | As of December 31, 2014 | $ | 130.4 | $ | 256.0 | $ | 13.7 | $ | 269.7 | $ | 400.1 | |||||||
Short-term liabilities of discontinued operations | As of December 31, 2014 | $ | 81.3 | $ | 316.3 | $ | 3.0 | $ | 319.3 | $ | 400.6 | |||||||
Long-term liabilities of discontinued operations | As of December 31, 2014 | $ | 125.9 | $ | 304.6 | $ | 5.6 | $ | 310.2 | $ | 436.1 | |||||||
Non-Cash Operating and Investing Activities | ||||||||||||||||||
Depreciation, depletion and amortization: | YTD March 31, 2015 | $ | 3.2 | $ | — | $ | — | $ | — | $ | 3.2 | |||||||
Purchase of property, plant and equipment | YTD March 31, 2015 | $ | 2.5 | $ | — | $ | — | $ | — | $ | 2.5 | |||||||
Impairment of long-lived assets | YTD March 31, 2015 | $ | 73.4 | $ | — | $ | — | $ | — | $ | 73.4 | |||||||
Depreciation, depletion and amortization: | YTD March 31, 2014 | $ | 29.9 | $ | 41.2 | $ | 0.1 | $ | 41.3 | $ | 71.2 | |||||||
Purchase of property, plant and equipment | YTD March 31, 2014 | $ | 10.0 | $ | 75.6 | $ | — | $ | 75.6 | $ | 85.6 | |||||||
Impairment of long-lived assets | YTD March 31, 2014 | $ | — | $ | — | $ | — | $ | — | $ | — |
(In Millions) | ||||||||
Assets and Liabilities of Discontinued Operations | March 31, 2015 | December 31, 2014 | ||||||
Accounts receivable, net | $ | 42.7 | $ | 44.8 | ||||
Inventories | 59.7 | 50.3 | ||||||
Supplies and other inventories | 28.4 | 28.2 | ||||||
Other current assets | 29.4 | 20.5 | ||||||
Property, plant and equipment, net | 20.4 | 94.7 | ||||||
Other non-current assets | 8.0 | 35.7 | ||||||
Total assets of discontinued operations | $ | 188.6 | $ | 274.2 | ||||
Accounts payable | $ | 23.3 | $ | 22.4 | ||||
Accrued liabilities | 16.7 | 27.9 | ||||||
Other current liabilities | 34.7 | 31.0 | ||||||
Pension and postemployment benefit liabilities1 | 56.7 | 55.8 | ||||||
Environmental and mine closure obligations | 34.4 | 33.9 | ||||||
Other liabilities | 31.9 | 36.2 | ||||||
Total liabilities of discontinued operations | $ | 197.7 | $ | 207.2 | ||||
1 This does not include a liability of approximately $330 million, which is the most recent estimate of Pinnacle and Oak Grove’s combined share of the underfunded liability under the UMWA 1974 Pension Plan. |
(In Millions) | ||||||||
Three Months Ended March 31, | ||||||||
Loss from Discontinued Operations | 2015 | 2014 | ||||||
REVENUES FROM PRODUCT SALES AND SERVICES | $ | 116.6 | $ | 166.2 | ||||
COST OF GOODS SOLD AND OPERATING EXPENSES | (107.3 | ) | (214.6 | ) | ||||
SALES MARGIN | 9.3 | (48.4 | ) | |||||
OTHER OPERATING EXPENSE | (11.3 | ) | (4.5 | ) | ||||
OTHER EXPENSE | (0.4 | ) | (0.6 | ) | ||||
LOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES | (2.4 | ) | (53.5 | ) | ||||
IMPAIRMENT OF LONG-LIVED ASSETS | (73.4 | ) | — | |||||
INCOME TAX BENEFIT | 0.1 | 7.2 | ||||||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | $ | (75.7 | ) | $ | (46.3 | ) |
(In Millions) | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
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: | ||||||||||||||||||||
Other long-lived assets - Property, plant and equipment and Mineral rights: North American Coal operating unit | $ | — | $ | — | $ | 20.4 | $ | 20.4 | $ | (73.4 | ) | |||||||||
$ | — | $ | — | $ | 20.4 | $ | 20.4 | $ | (73.4 | ) |
(In Millions) | ||||
Assets and Liabilities of Discontinued Operations | March 31, 2015 | |||
Accounts receivable, net | $ | 3.0 | ||
Income tax receivable | 1.8 | |||
Other non-current assets | 3.8 | |||
Total Assets | $ | 8.6 | ||
Accounts payable | $ | 0.5 | ||
Accrued expenses | 51.1 | |||
Other liabilities | 140.9 | |||
Total Liabilities | $ | 192.5 |
(In Millions) | ||||
Assets and Liabilities of Discontinued Operations | December 31, 2014 | |||
Cash and cash equivalents | $ | 19.7 | ||
Accounts receivable, net | 37.9 | |||
Inventories | 16.3 | |||
Supplies and other inventories | 48.5 | |||
Income tax receivable | 20.1 | |||
Other current assets | 44.3 | |||
Property, plant and equipment, net | 249.8 | |||
Other non-current assets | 19.9 | |||
Total Assets | $ | 456.5 | ||
Accounts payable | $ | 83.6 | ||
Accrued expenses | 200.0 | |||
Other current liabilities | 35.7 | |||
Pension and postemployment benefit liabilities | 79.8 | |||
Environmental and mine closure obligations | 56.5 | |||
Other liabilities | 173.9 | |||
Total Liabilities | $ | 629.5 |
(In Millions) | ||||||||
Three Months Ended March 31, | ||||||||
Loss from Discontinued Operations | 2015 | 2014 | ||||||
REVENUES FROM PRODUCT SALES AND SERVICES | $ | 11.3 | $ | 158.3 | ||||
COST OF GOODS SOLD AND OPERATING EXPENSES | (11.1 | ) | (208.0 | ) | ||||
ELIMINATIONS WITH CONTINUING OPERATIONS | — | (28.7 | ) | |||||
SALES MARGIN | 0.2 | (78.4 | ) | |||||
OTHER OPERATING EXPENSE | (33.3 | ) | (58.6 | ) | ||||
OTHER EXPENSE | (1.0 | ) | (1.4 | ) | ||||
LOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES | (34.1 | ) | (138.4 | ) | ||||
PRETAX EXIT COSTS | (818.7 | ) | — | |||||
INCOME TAX BENEFIT | — | 44.3 | ||||||
LOSS FROM DISCONTINUED OPERATIONS, net of tax | $ | (852.8 | ) | $ | (94.1 | ) |
(In Millions) | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
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: | ||||||||||||||||||||
Loans to and accounts receivables from the Canadian Entities | $ | — | $ | — | $ | 112.1 | $ | 112.1 | $ | (476.0 | ) | |||||||||
Liabilities: | ||||||||||||||||||||
Contingent liabilities and joint and several liabilities | $ | — | $ | — | $ | 342.7 | $ | 342.7 | $ | (342.7 | ) |
(In Millions) | ||||
Three Months Ended March 31, | ||||
Pretax Exit Costs | 2015 | |||
Investment Impairment on Deconsolidation | $ | (476.0 | ) | |
Contingent Liabilities | (342.7 | ) | ||
Total Pretax Exit Costs | $ | (818.7 | ) |
|
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Capital additions | $ | 26.1 | $ | 79.2 | |||
Cash paid for capital expenditures | 15.9 | 103.3 | |||||
Difference | $ | 10.2 | $ | (24.1 | ) | ||
Non-cash accruals | $ | 10.2 | $ | (34.0 | ) | ||
Capital leases | — | 9.9 | |||||
Total | $ | 10.2 | $ | (24.1 | ) |
|
Mine | Cliffs Natural Resources | ArcelorMittal | U.S. Steel Corporation | |||||||
Empire | 79.0 | % | 21.0 | % | — | |||||
Tilden | 85.0 | % | — | 15.0 | % | |||||
Hibbing | 23.0 | % | 62.3 | % | 14.7 | % |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Product revenues from related parties | $ | 110.4 | $ | 134.4 | |||
Total product revenues | 399.5 | 559.2 | |||||
Related party product revenue as a percent of total product revenue | 27.6 | % | 24.0 | % |
|
(In Millions, Except Per Share Amounts) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Net Income from Continuing Operations Attributable to Cliffs Shareholders | $ | 168.7 | $ | 70.1 | |||
Loss from Discontinued Operations, net of tax | (928.5 | ) | (140.4 | ) | |||
Net Loss Attributable to Cliffs Shareholders | $ | (759.8 | ) | $ | (70.3 | ) | |
Preferred Stock Dividends | (12.8 | ) | (12.8 | ) | |||
Net Loss Attributable to Cliffs Common Shareholders | $ | (772.6 | ) | $ | (83.1 | ) | |
Weighted Average Number of Shares: | |||||||
Basic | 153.2 | 153.0 | |||||
Depositary Shares | 25.2 | — | |||||
Employee Stock Plans | 0.3 | 0.6 | |||||
Diluted | 178.7 | 153.6 | |||||
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Basic: | |||||||
Continuing operations | $ | 1.02 | $ | 0.37 | |||
Discontinued operations | (6.06 | ) | (0.92 | ) | |||
$ | (5.04 | ) | $ | (0.55 | ) | ||
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Diluted: | |||||||
Continuing operations | $ | 0.94 | $ | 0.37 | |||
Discontinued operations | (5.20 | ) | (0.91 | ) | |||
$ | (4.26 | ) | $ | (0.54 | ) |
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