CLEVELAND-CLIFFS INC., 10-Q filed on 10/23/2020
Quarterly Report
v3.20.2
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2020
Oct. 22, 2020
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2020  
Document Transition Report false  
Entity File Number 1-8944  
Entity Registrant Name CLEVELAND-CLIFFS INC.  
Entity Incorporation, State or Country Code OH  
Entity Tax Identification Number 34-1464672  
Entity Address, Address Line One 200 Public Square,  
Entity Address, City or Town Cleveland,  
Entity Address, State or Province OH  
Entity Address, Postal Zip Code 44114-2315  
City Area Code 216  
Local Phone Number 694-5700  
Title of 12(b) Security Common shares, par value $0.125 per share  
Trading Symbol CLF  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   399,241,687
Entity Central Index Key 0000764065  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.20.2
Statements Of Unaudited Condensed Consolidated Financial Position - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Current assets:    
Cash and cash equivalents $ 56.0 $ 352.6
Accounts receivable, net 653.7 94.0
Inventories 1,795.1 317.4
Income tax receivable, current 9.0 58.6
Other current assets 115.0 75.3
Total current assets 2,628.8 897.9
Non-current assets:    
Property, plant and equipment, net 4,550.7 1,929.0
Goodwill 144.0 2.1
Intangible assets, net 190.1 48.1
Income tax receivable, non-current 0.0 62.7
Deferred income taxes 519.5 459.5
Right-of-use asset, operating lease 207.7 11.7
Other non-current assets 240.1 92.8
TOTAL ASSETS 8,480.9 3,503.8
Current liabilities:    
Accounts payable 710.7 193.2
Accrued liabilities 279.4 126.3
Other current liabilities 224.0 89.9
Total current liabilities 1,214.1 409.4
Non-current liabilities:    
Long-term debt 4,309.8 2,113.8
Operating lease liability, non-current 174.1 10.5
Intangible liabilities, net 65.9 0.0
Pension and OPEB liabilities 1,130.6 311.5
Asset retirement obligations 182.0 163.2
Other non-current liabilities 280.7 137.5
TOTAL LIABILITIES 7,357.2 3,145.9
Commitments and contingencies (See Note 18)
SHAREHOLDERS' EQUITY    
Common shares - par value $0.125 per share, Authorized - 600,000,000 shares (2019 - 600,000,000 shares); Issued - 428,645,866 shares (2019 - 301,886,794 shares); Outstanding - 399,229,917 shares (2019 - 270,084,005 shares) 53.6 37.7
Capital in excess of par value of shares 4,446.3 3,872.1
Retained deficit (3,052.5) (2,842.4)
Cost of 29,415,949 common shares in treasury (2019 - 31,802,789 shares) (354.8) (390.7)
Accumulated other comprehensive loss (282.0) (318.8)
Total Cliffs shareholders' equity 810.6 357.9
Noncontrolling interest 313.1 0.0
TOTAL EQUITY 1,123.7 357.9
TOTAL LIABILITIES AND EQUITY $ 8,480.9 $ 3,503.8
v3.20.2
Statements Of Condensed Consolidated Financial Position (Parenthetical) - $ / shares
Sep. 30, 2020
Dec. 31, 2019
Statement of Financial Position [Abstract]    
Common shares, par value $ 0.125  
Common shares, authorized (in shares) 600,000,000 600,000,000
Common shares, issued (in shares) 428,645,866 301,886,794
Common shares, outstanding (in shares) 399,229,917 270,084,005
Common shares in treasury (in shares) 29,415,949 31,802,789
v3.20.2
Statements Of Unaudited Condensed Consolidated Operations - USD ($)
shares in Thousands, $ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Income Statement [Abstract]        
Revenues $ 1,646.0 $ 555.6 $ 3,063.2 $ 1,455.8
Realization of deferred revenue 0.0 0.0 34.6 0.0
Operating costs:        
Cost of goods sold (1,525.4) (400.7) (3,088.9) (1,007.0)
Selling, general and administrative expenses (59.6) (25.5) (149.2) (82.2)
Acquisition-related costs (7.5) 0.0 (68.4) 0.0
Miscellaneous – net (15.5) (7.8) (40.5) (19.0)
Total operating costs (1,608.0) (434.0) (3,347.0) (1,108.2)
Operating income (loss) 38.0 121.6 (249.2) 347.6
Other income (expense):        
Interest expense, net (68.2) (25.3) (167.9) (76.5)
Gain (loss) on extinguishment of debt 0.0 0.0 132.6 (18.2)
Other non-operating income 10.0 0.3 31.2 1.3
Total other expense (58.2) (25.0) (4.1) (93.4)
Income (loss) from continuing operations before income taxes (20.2) 96.6 (253.3) 254.2
Income tax benefit (expense) 22.4 (4.8) 98.5 (23.1)
Income (loss) from continuing operations 2.2 91.8 (154.8) 231.1
Loss from discontinued operations, net of tax (0.3) (0.9) 0.0 (1.5)
Net income (loss) 1.9 90.9 (154.8) 229.6
Income attributable to noncontrolling interest (11.9) 0.0 (31.2) 0.0
Net income (loss) attributable to Cliffs shareholders $ (10.0) $ 90.9 $ (186.0) $ 229.6
Earnings (loss) per common share attributable to Cliffs shareholders - basic        
Continuing operations (in dollars per share) $ (0.02) $ 0.34 $ (0.51) $ 0.83
Discontinued operations (in dollars per share) 0 0 0 (0.01)
Earnings (Loss) per Common Share - Basic (in dollars per share) (0.02) 0.34 (0.51) 0.82
Earnings (loss) per common share attributable to Cliffs shareholders - diluted        
Continuing operations (in dollars per share) (0.02) 0.33 (0.51) 0.80
Discontinued operations (in dollars per share) 0 0 0 0
Earnings (Loss) per Common Share - Diluted (in dollars per share) $ (0.02) $ 0.33 $ (0.51) $ 0.80
Average number of shares (in thousands)        
Basic 399,399 269,960 365,245 278,418
Diluted 399,399 276,578 365,245 287,755
v3.20.2
Statements Of Unaudited Condensed Consolidated Comprehensive Income - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ 1.9 $ 90.9 $ (154.8) $ 229.6
Other comprehensive income:        
Changes in pension and OPEB, net of tax 6.6 5.8 18.2 17.3
Changes in foreign currency translation 1.6 0.0 1.4 0.0
Changes in derivative financial instruments, net of tax 15.7 0.4 17.2 1.0
Total other comprehensive income 23.9 6.2 36.8 18.3
Comprehensive income (loss) 25.8 97.1 (118.0) 247.9
Comprehensive income attributable to noncontrolling interests (11.9) 0.0 (31.2) 0.0
Comprehensive income (loss) attributable to Cliffs shareholders $ 13.9 $ 97.1 $ (149.2) $ 247.9
v3.20.2
Statements Of Unaudited Condensed Consolidated Cash Flows - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
OPERATING ACTIVITIES    
Net income (loss) $ (154.8) $ 229.6
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:    
Depreciation, depletion and amortization 183.9 63.1
Amortization of inventory step-up 74.0 0.0
Deferred income taxes (89.9) 22.7
Loss (gain) on extinguishment of debt (132.6) 18.2
Loss (gain) on derivatives (19.1) 48.4
Other (13.0) 49.4
Changes in operating assets and liabilities, net of business combination:    
Receivables and other assets 259.8 174.1
Inventories (4.2) (147.0)
Payables, accrued expenses and other liabilities (157.3) (70.4)
Net cash provided (used) by operating activities (53.2) 388.1
INVESTING ACTIVITIES    
Purchase of property, plant and equipment (378.9) (460.7)
Acquisition of AK Steel, net of cash acquired (869.3) 0.0
Other investing activities 8.0 11.2
Net cash used by investing activities (1,240.2) (449.5)
FINANCING ACTIVITIES    
Repurchase of common shares 0.0 (252.9)
Proceeds from issuance of debt 1,762.9 720.9
Debt issuance costs (57.5) (6.8)
Repurchase of debt (999.5) (729.3)
Borrowings under credit facilities 800.0 0.0
Repayments under credit facilities (400.0) 0.0
Dividends paid (40.8) (45.1)
Other financing activities (23.3) (53.7)
Net cash provided (used) by financing activities 994.2 (366.9)
Decrease in cash and cash equivalents, including cash classified within other current assets related to discontinued operations (299.2) (428.3)
Less: decrease in cash and cash equivalents from discontinued operations, classified within other current assets (2.6) (4.4)
Net decrease in cash and cash equivalents (296.6) (423.9)
Cash and cash equivalents at beginning of period 352.6 823.2
Cash and cash equivalents at end of period 56.0 399.3
SunCoke Middletown [Member]    
FINANCING ACTIVITIES    
SunCoke Middletown distributions to noncontrolling interest owners $ (47.6) $ 0.0
v3.20.2
Statements of Unaudited Condensed Consolidated Changes in Equity Statement - USD ($)
$ in Millions
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
AOCI Attributable to Parent [Member]
Noncontrolling Interest [Member]
Balance, beginning of period (in shares) at Dec. 31, 2018   292,600,000          
Balance, beginning of period at Dec. 31, 2018 $ 424.2 $ 37.7 $ 3,916.7 $ (3,060.2) $ (186.1) $ (283.9)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Comprehensive Income (Loss), Net of Tax, Attributable to Parent (13.7)     (22.1)   8.4  
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   1,700,000          
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture (10.0)   (56.5)   46.5    
Stock Repurchased During Period, Shares   (11,500,000)          
Common Share Repurchases, Value (124.3)       (124.3)    
Dividends, Common Stock (14.5)     (14.5)      
Balance, end of period (in shares) at Mar. 31, 2019   282,800,000          
Balance, end of period at Mar. 31, 2019 $ 261.7 $ 37.7 3,860.2 (3,096.8) (263.9) (275.5)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Common Stock, Dividends, Per Share, Declared $ 0.05            
Balance, beginning of period (in shares) at Dec. 31, 2018   292,600,000          
Balance, beginning of period at Dec. 31, 2018 $ 424.2 $ 37.7 3,916.7 (3,060.2) (186.1) (283.9)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Comprehensive Income (Loss), Net of Tax, Attributable to Parent $ 247.9            
Stock Repurchased During Period, Shares (24,400,000)            
Balance, end of period (in shares) at Sep. 30, 2019   270,100,000          
Balance, end of period at Sep. 30, 2019 $ 359.9 $ 37.7 3,867.7 (2,889.0) (390.9) (265.6)  
Balance, beginning of period (in shares) at Mar. 31, 2019   282,800,000          
Balance, beginning of period at Mar. 31, 2019 261.7 $ 37.7 3,860.2 (3,096.8) (263.9) (275.5)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Comprehensive Income (Loss), Net of Tax, Attributable to Parent 164.5     160.8   3.7  
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   100,000          
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture 4.6   3.4   1.2    
Stock Repurchased During Period, Shares   (12,900,000)          
Common Share Repurchases, Value (128.6)       (128.6)    
Dividends, Common Stock (16.6)     (16.6)      
Balance, end of period (in shares) at Jun. 30, 2019   270,000,000.0          
Balance, end of period at Jun. 30, 2019 $ 285.6 $ 37.7 3,863.6 (2,952.6) (391.3) (271.8)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Common Stock, Dividends, Per Share, Declared $ 0.06            
Comprehensive Income (Loss), Net of Tax, Attributable to Parent $ 97.1     90.9   6.2  
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   100,000          
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture 4.5   4.1   0.4    
Dividends, Common Stock (27.3)     (27.3)      
Balance, end of period (in shares) at Sep. 30, 2019   270,100,000          
Balance, end of period at Sep. 30, 2019 $ 359.9 $ 37.7 3,867.7 (2,889.0) (390.9) (265.6)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Common Stock, Dividends, Per Share, Declared $ 0.10            
Balance, beginning of period (in shares) at Dec. 31, 2019 270,084,005 270,100,000          
Balance, beginning of period at Dec. 31, 2019 $ 357.9 $ 37.7 3,872.1 (2,842.4) (390.7) (318.8) $ 0.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Comprehensive Income (Loss), Net of Tax, Attributable to Parent (46.9)     (52.1)   1.7 3.5
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   1,700,000          
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture 2.1   (23.6)   25.7    
Stock Issued During Period, Shares, Acquisitions   126,800,000          
Stock Issued During Period, Value, Acquisitions 947.4 $ 15.9 601.7        
Noncontrolling Interest, Increase from Business Combination             329.8
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders (5.5)           (5.5)
Dividends, Common Stock (24.0)     (24.0)      
Balance, end of period (in shares) at Mar. 31, 2020   398,600,000          
Balance, end of period at Mar. 31, 2020 $ 1,231.0 $ 53.6 4,450.2 (2,918.5) (365.0) (317.1) 327.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Common Stock, Dividends, Per Share, Declared $ 0.06            
Balance, beginning of period (in shares) at Dec. 31, 2019 270,084,005 270,100,000          
Balance, beginning of period at Dec. 31, 2019 $ 357.9 $ 37.7 3,872.1 (2,842.4) (390.7) (318.8) 0.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Comprehensive Income (Loss), Net of Tax, Attributable to Parent $ (118.0)            
Balance, end of period (in shares) at Sep. 30, 2020 399,229,917 399,200,000          
Balance, end of period at Sep. 30, 2020 $ 1,123.7 $ 53.6 4,446.3 (3,052.5) (354.8) (282.0) 313.1
Balance, beginning of period (in shares) at Mar. 31, 2020   398,600,000          
Balance, beginning of period at Mar. 31, 2020 1,231.0 $ 53.6 4,450.2 (2,918.5) (365.0) (317.1) 327.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Comprehensive Income (Loss), Net of Tax, Attributable to Parent (96.9)     (123.9)   11.2 15.8
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   600,000          
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture 2.5   (6.6)   9.1    
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders (18.3)           (18.3)
Dividends, Common Stock (0.1)     (0.1)      
Balance, end of period (in shares) at Jun. 30, 2020   399,200,000          
Balance, end of period at Jun. 30, 2020 1,118.2 $ 53.6 4,443.6 (3,042.5) (355.9) (305.9) 325.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Comprehensive Income (Loss), Net of Tax, Attributable to Parent 25.8     (10.0)   23.9 11.9
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture   0          
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture 3.8   2.7   1.1    
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders $ (24.1)           (24.1)
Balance, end of period (in shares) at Sep. 30, 2020 399,229,917 399,200,000          
Balance, end of period at Sep. 30, 2020 $ 1,123.7 $ 53.6 $ 4,446.3 $ (3,052.5) $ (354.8) $ (282.0) $ 313.1
v3.20.2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Notes)
9 Months Ended
Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Significant Accounting Policies [Text Block]
Business, Consolidation and Presentation
    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 (loss), cash flows and changes in equity 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, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020 or any other future period. Due to the acquisition of AK Steel, certain balances have become material and are no longer being condensed in our Statements of Unaudited Condensed Consolidated Financial Position, such as balances for Right-of-use asset, operating lease and Operating lease liability, non-current. As a result, certain prior period amounts have been reclassified to conform with the current year presentation. 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, 2019 and in our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2020 and June 30, 2020.
    Proposed acquisition of substantially all of the operations of ArcelorMittal USA
On September 28, 2020, we entered into a Transaction Agreement with ArcelorMittal S.A., pursuant to which Cliffs will acquire substantially all of the operations of ArcelorMittal USA for an aggregate purchase price of approximately $1.4 billion, consisting of (i) $505 million in cash, (ii) 78,186,671 of our common shares, par value $0.125 per share, and (iii) 583,273 shares of a new series of our Serial Preferred Stock, Class B, without par value, to be designated as the “Series B Participating Redeemable Preferred Stock” at closing. The cash portion of the purchase price is subject to customary working capital and purchase price adjustments.
We expect to complete the Transaction in the fourth quarter of 2020. Completion of the Transaction is subject to various customary closing conditions, including the receipt of required regulatory approvals in identified jurisdictions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act, and it is possible that factors outside of our control could result in the Transaction being completed at a later time or not at all. The Transaction Agreement also contains certain termination rights that may be exercised by either us or ArcelorMittal S.A. We plan to complete the Transaction as soon as reasonably practicable following the satisfaction or waiver of all applicable conditions.
Acquisition of AK Steel
    On March 13, 2020, we consummated the Merger, pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub was merged with and into AK Steel, with AK Steel surviving the Merger as a wholly owned subsidiary of Cliffs. Refer to NOTE 3 - ACQUISITION OF AK STEEL for further information.
    AK Steel is a leading North American producer of flat-rolled carbon, stainless and electrical steel products, primarily for the automotive, infrastructure and manufacturing markets. The acquisition of AK Steel has transformed us into a vertically integrated producer of value-added iron ore and steel products.
    COVID-19
    In response to the COVID-19 pandemic, we made various operational changes to adjust to the demand for our products. Although steel and iron ore production have been considered “essential” by the states in which we operate, certain of our facilities and construction activities were temporarily idled during the second quarter of 2020.  Most of these temporarily idled facilities were restarted during the second quarter, and the remaining operations were restarted during the third quarter.
    Basis of Consolidation
    The unaudited condensed consolidated financial statements consolidate our accounts and the accounts of our wholly owned subsidiaries, all subsidiaries in which we have a controlling interest and two variable interest entities for which we are the primary beneficiary. All intercompany transactions and balances are eliminated upon consolidation.
    Reportable Segments
    The acquisition of AK Steel has transformed us into a vertically integrated producer of value-added iron ore and steel products and we are organized according to our differentiated products in two reportable segments - the Steel and Manufacturing segment and the Mining and Pelletizing segment. Our new Steel and Manufacturing segment includes the assets acquired through the acquisition of AK Steel and our previously reported Metallics segment, and our Mining and Pelletizing segment includes our three active operating mines and our indefinitely idled mine.
    Investments in Affiliates
    We have investments in several businesses accounted for using the equity method of accounting. We review an investment for impairment when circumstances indicate that a loss in value below its carrying amount is other than temporary. Investees and equity ownership percentages are presented below:
InvesteeSegment Reported WithinEquity Ownership Percentage
Combined Metals of Chicago, LLCSteel and Manufacturing40.0%
Hibbing Taconite CompanyMining and Pelletizing23.0%
Spartan Steel Coating, LLCSteel and Manufacturing48.0%
    We recorded a basis difference for Spartan Steel of $32.5 million as part of our acquisition of AK Steel.  The basis difference relates to the excess of the fair value over the investee's carrying amount of property, plant and equipment and will be amortized over the remaining useful lives of the underlying assets.
Significant Accounting Policies
    A detailed description of our significant accounting policies can be found in the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC, which were updated and can be found in the unaudited condensed consolidated financial statements included in our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2020 and June 30, 2020 filed with the SEC. There have been no material changes in our significant accounting policies and estimates from those disclosed therein.
Recent Accounting Pronouncements
    Issued and Adopted
    On March 2, 2020, the SEC issued a final rule that amended the disclosure requirements related to certain registered securities under SEC Regulation S-X, Rule 3-10, which required separate financial statements for subsidiary issuers and guarantors of registered debt securities unless certain exceptions are met. The final rule replaces the previous requirement under Rule 3-10 to provide condensed consolidating financial information in the registrant’s financial statements with a requirement to provide alternative financial disclosures (which include summarized financial information of the parent and any issuers and guarantors, as well as other qualitative disclosures) in either the registrant’s Management's Discussion and Analysis of Financial Condition and Results of Operations or its financial statements, in addition to other simplifications. The final rule is effective for filings on or after January 4, 2021, and early adoption is permitted. We elected to early adopt this disclosure update for the period ended March 31, 2020. As a result, we have excluded the footnote disclosures required under the previous Rule 3-10, and applied the final rule by including the summarized financial information and qualitative disclosures in Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report on Form 10-Q and Exhibit 22.1, hereto.
Issued and Not EffectiveIn August 2020, the Financial Accounting Standards Board issued Accounting Standards Update No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). This update requires certain convertible instruments to be accounted for as a single liability measured at its amortized cost. Additionally, the update requires the use of the "if-converted" method, removing the treasury stock method, when calculating diluted shares. The two methods of adoption are the full and modified retrospective approaches. We expect to utilize the modified retrospective approach. Using this approach, the guidance shall be applied to transactions outstanding as of the beginning of the fiscal year in which the amendment is adopted. The final rule is effective for fiscal years beginning after December 15, 2021. Early adoption is permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are continuing to evaluate the impact of this update to our financials and would expect to adopt at the required adoption date of January 1, 2022.
v3.20.2
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Notes)
9 Months Ended
Sep. 30, 2020
Disclosure Text Block [Abstract]  
Supplementary Financial Statement Information
Revenues
    The following table represents our consolidated Revenues (excluding intercompany revenues) by market:
(In Millions)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
Steel and Manufacturing:
Automotive$920.0 $— $1,404.0 $— 
Infrastructure and manufacturing198.8 — 446.2 — 
Distributors and converters142.9 — 344.1 — 
Total Steel and Manufacturing1,261.7 — 2,194.3 — 
Mining and Pelletizing:
Steel producers1
384.3 555.6 903.5 1,455.8 
Total revenues$1,646.0 $555.6 $3,097.8 $1,455.8 
1 Includes Realization of deferred revenue of $34.6 million for the nine months ended September 30, 2020.
    The following table represents our consolidated Revenues (excluding intercompany revenues) by product line:
(In Millions)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
Steel and Manufacturing:
Carbon steel$821.2 $— $1,391.6 $— 
Stainless and electrical steel303.2 — 585.1 — 
Tubular products, components and other137.3 — 217.6 — 
Total Steel and Manufacturing1,261.7 — 2,194.3 — 
Mining and Pelletizing:
Iron ore1
357.1 515.0 838.1 1,357.8 
Freight27.2 40.6 65.4 98.0 
Total Mining and Pelletizing384.3 555.6 903.5 1,455.8 
Total revenues$1,646.0 $555.6 $3,097.8 $1,455.8 
1 Includes Realization of deferred revenue of $34.6 million for the nine months ended September 30, 2020.
    We sell to customers located primarily in the United States and to foreign customers, primarily in Canada, Mexico and Western Europe. Net revenues to customers located outside the United States were $265.0 million and $487.7 million for the three and nine months ended September 30, 2020, respectively, and $138.9 million and $318.3 million for the three and nine months ended September 30, 2019, respectively.
Allowance for Credit Losses
    The following is a roll forward of our allowance for credit losses associated with Accounts receivable, net:
(In Millions)
20202019
Allowance for credit losses as of January 1$ $— 
Increase in allowance5.2 — 
Allowance for credit losses as of September 30$5.2 $— 
Inventories
    The following table presents the detail of our Inventories in the Statements of Unaudited Condensed Consolidated Financial Position:
(In Millions)
September 30,
2020
December 31,
2019
Product inventories
Finished and semi-finished goods$940.5 $114.1 
Work-in-process78.2 68.7 
Raw materials382.3 9.4 
Total product inventories1,401.0 192.2 
Manufacturing supplies and critical spares394.1 125.2 
Inventories$1,795.1 $317.4 
Deferred Revenue
    The table below summarizes our deferred revenue balances:
(In Millions)
Deferred Revenue (Current)Deferred Revenue (Long-Term)
2020201920202019
Opening balance as of January 1$22.1 $21.0 $25.7 $38.5 
Net decrease(19.8)(2.7)(25.7)(8.5)
Closing balance as of September 30$2.3 $18.3 $ $30.0 
    Prior to the Merger, our iron ore pellet sales agreement with Severstal, subsequently assumed by AK Steel, required supplemental payments to be paid by the customer during the period 2009 through 2013. Installment amounts received under this arrangement in excess of sales were classified as deferred revenue in the Statements of Consolidated Financial Position upon receipt of payment and the revenue was recognized over the term of the supply agreement, which had extended until 2022, in equal annual installments. As a result of the termination of that iron ore pellet sales agreement, we realized $34.6 million of deferred revenue, which was recognized within Realization of deferred revenue in the Statements of Unaudited Condensed Consolidated Operations, during the nine months ended September 30, 2020.
    We have certain other sales agreements that require customers to pay in advance. Payments received pursuant to these agreements prior to revenue being recognized are recorded as deferred revenue in Other current liabilities.
Accrued Liabilities
    The following table presents the detail of our Accrued liabilities in the Statements of Unaudited Condensed Consolidated Financial Position:
(In Millions)
September 30,
2020
December 31, 2019
Accrued employment costs$146.6 $61.7 
Accrued interest81.8 29.0 
Accrued dividends1.0 17.8 
Other50.0 17.8 
Accrued liabilities$279.4 $126.3 
Cash Flow Information
    A reconciliation of capital additions to cash paid for capital expenditures is as follows:
(In Millions)
Nine Months Ended
September 30,
20202019
Capital additions$333.0 $505.6 
Less:
Non-cash accruals(88.4)26.1 
Right-of-use assets - finance leases42.5 29.3 
Grants (10.5)
Cash paid for capital expenditures including deposits$378.9 $460.7 
    Cash payments (receipts) for income taxes and interest are as follows:
(In Millions)
Nine Months Ended
September 30,
20202019
Taxes paid on income$3.2 $0.1 
Income tax refunds(119.3)(117.9)
Interest paid on debt obligations net of capitalized interest1
106.0 71.9 
1 Capitalized interest was $38.0 million and $16.9 million for the nine months ended September 30, 2020 and 2019, respectively.
    Non-Cash Investing and Financing Activities
(In Millions)
Nine Months Ended
September 30,
20202019
Fair value of common shares issued for consideration for business combination$617.6 $— 
Fair value of equity awards assumed from AK Steel acquisition3.9 — 
v3.20.2
ACQUISITION OF AK STEEL (Notes)
9 Months Ended
Sep. 30, 2020
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]
Overview
    On March 13, 2020, pursuant to the Merger Agreement, we completed the acquisition of AK Steel, in which we were the acquirer. As a result of the Merger, each share of AK Steel common stock issued and outstanding
immediately prior to the effective time of the Merger (other than excluded shares) was converted into the right to receive 0.400 Cliffs common shares and, if applicable, cash in lieu of any fractional Cliffs common shares.
    The acquisition combined Cliffs, North America’s largest producer of iron ore pellets, with AK Steel, a leading producer of innovative flat-rolled carbon, stainless and electrical steel products, to create a vertically integrated producer of value-added iron ore and steel products. The combination is expected to create significant opportunities to generate additional value from market trends across the entire steel value chain and enable more consistent, predictable performance through normal market cycles. Together, Cliffs and AK Steel have a presence across the entire manufacturing process, from mining to pelletizing to the development and production of finished high value steel products, including Next Generation Advanced High Strength Steels for automotive and other markets. We expect the combination will generate additional cost synergies, which we have identified and already set into motion savings of approximately $150 million, primarily from consolidating corporate functions, reducing duplicative overhead costs, and procurement and energy cost savings, as well as operational and supply chain efficiencies. The combined company is well positioned to provide high-value iron ore and steel solutions to customers primarily across North America.
    Total net revenues for AK Steel for the most recent pre-acquisition year ended December 31, 2019 were $6,359.4 million. Following the acquisition, the operating results of AK Steel are included in our unaudited condensed consolidated financial statements and are reported as part of our Steel and Manufacturing segment. For the three months ended September 30, 2020, AK Steel generated Revenues of $1,261.7 million and a loss of $30.4 million included within Net income (loss) attributable to Cliffs shareholders, which included $14.6 million and $2.4 million related to amortization of the fair value inventory step-up and severance costs, respectively. For the period subsequent to the acquisition (March 13, 2020 through September 30, 2020), AK Steel generated Revenues of $2,194.3 million and a loss of $292.0 million included within Net income (loss) attributable to Cliffs shareholders, which included $74.0 million and $35.1 million related to amortization of the fair value inventory step-up and severance costs, respectively.
    Additionally, we incurred acquisition-related costs in connection with the acquisition of AK Steel, excluding severance costs, of $0.6 million and $25.6 million for the three and nine months ended September 30, 2020, respectively, which were recorded in Acquisition-related costs on the Statements of Unaudited Condensed Consolidated Operations.
    Refer to NOTE 7 - DEBT AND CREDIT FACILITIES for information regarding debt transactions executed in connection with the Merger.
    The Merger was accounted for under the acquisition method of accounting for business combinations. The acquisition date fair value of the consideration transferred totaled $1.5 billion. The following tables summarize the consideration paid for AK Steel and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.
    The fair value of the total purchase consideration was determined as follows:
(In Millions)
Fair value of Cliffs common shares issued for AK Steel outstanding common stock$617.6 
Fair value of replacement equity awards3.9 
Fair value of AK Steel debt913.6 
Total purchase consideration$1,535.1 
    The fair value of Cliffs common shares issued for outstanding shares of AK Steel common stock and with respect to Cliffs common shares underlying converted AK Steel equity awards that vested upon completion of the Merger is calculated as follows:
(In Millions, Except Per Share Amounts)
Number of shares of AK Steel common stock issued and outstanding316.9 
Exchange ratio0.400 
Number of Cliffs common shares issued to AK Steel stockholders126.8 
Price per share of Cliffs common shares$4.87 
Fair value of Cliffs common shares issued for AK Steel outstanding common stock$617.6 
    The fair value of AK Steel's debt included in the consideration is calculated as follows:
(In Millions)
Credit Facility$590.0 
7.50% Senior Secured Notes due July 2023323.6 
Fair value of debt included in consideration$913.6 
Valuation Assumption and Preliminary Purchase Price Allocation
    We estimated fair values at March 13, 2020 for the preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed. During the measurement period, we will continue to obtain information to assist in finalizing the fair value of assets acquired and liabilities assumed, which may differ materially from these preliminary estimates. If we determine any measurement period adjustments are material, we will apply those adjustments, including any related impacts to net income, in the reporting period in which the adjustments are determined. We are in the process of conducting a valuation of the assets acquired and liabilities assumed related to the acquisition, most notably, inventories, including manufacturing supplies and critical spares, personal and real property, leases, investments, deferred taxes, asset retirement obligations, pension and OPEB liabilities and intangible assets and liabilities, and the final allocation will be made when completed, including the result of any identified goodwill. Accordingly, the provisional measurements noted below are preliminary and subject to modification in the future.
    The preliminary purchase price allocation to assets acquired and liabilities assumed in the Merger was:
(In Millions)
Initial Allocation of ConsiderationMeasurement Period AdjustmentsUpdated Preliminary Allocation
Cash and cash equivalents$37.7 $2.0 $39.7 
Accounts receivable666.0 (3.1)662.9 
Inventories1,562.8 (39.8)1,523.0 
Other current assets67.5 (15.4)52.1 
Property, plant and equipment2,184.4 (20.1)2,164.3 
Intangible assets163.0 (15.0)148.0 
Right of use asset, operating leases225.9 (16.3)209.6 
Other non-current assets85.9 26.2 112.1 
Accounts payable(636.3)(6.1)(642.4)
Accrued liabilities(222.5)0.1 (222.4)
Other current liabilities(181.8)6.6 (175.2)
Long-term debt(1,179.4)— (1,179.4)
Deferred income taxes(19.7)(0.2)(19.9)
Operating lease liability, non-current(188.1)12.7 (175.4)
Intangible liabilities(140.0)69.5 (70.5)
Pension and OPEB liabilities(873.0)2.1 (870.9)
Asset retirement obligations(13.9)(2.0)(15.9)
Other non-current liabilities(144.2)(2.3)(146.5)
Net identifiable assets acquired1,394.3 (1.1)1,393.2 
Goodwill141.2 0.7 141.9 
Total net assets acquired$1,535.5 $(0.4)$1,535.1 
    During the second and third quarter of 2020, we made certain measurement period adjustments to the acquired assets and liabilities assumed due to clarification of information utilized to determine fair value during the measurement period. The Inventories measurement period adjustments of $39.8 million resulted in a favorable impact of $0.2 million and $8.0 million, respectively, to Cost of goods sold for the three and nine months ended September 30, 2020.
    The goodwill resulting from the acquisition of AK Steel was assigned to Precision Partners, our downstream tooling and stamping operations, and AK Tube, our tubing operations, that are reporting units included in the Steel and Manufacturing segment. Goodwill is calculated as the excess of the purchase price over the net identifiable assets recognized and primarily represents the growth opportunities in lightweighting solutions to automotive customers, as well as any synergistic benefits to be realized from the acquisition of AK Steel. None of the goodwill is expected be deductible for income tax purposes.
    The preliminary purchase price allocated to identifiable intangible assets and liabilities acquired was:
(In Millions)Weighted Average Life (In Years)
Intangible assets:
Customer relationships$77.0 18
Developed technology60.0 17
Trade names and trademarks11.0 10
Total identifiable intangible assets$148.0 17
Intangible liabilities:
Above-market supply contracts$(70.5)12
    The above-market supply contracts relate to the long-term coke and energy supply agreements with SunCoke Energy, which includes SunCoke Middletown, a consolidated VIE. Refer to NOTE 16 - VARIABLE INTEREST ENTITIES for further information.
Pro Forma Results
    The following table provides unaudited pro forma financial information, prepared in accordance with Topic 805, for the three and nine months ended September 30, 2020 and 2019, as if AK Steel had been acquired as of January 1, 2019:
(In Millions)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
Revenues$1,646.0 $1,937.6 $4,265.1 $5,958.7 
Net income (loss) attributable to Cliffs shareholders(6.0)84.2 (123.9)213.3 
    The unaudited pro forma financial information has been calculated after applying our accounting policies and adjusting the historical results with pro forma adjustments, net of tax, that assume the acquisition occurred on January 1, 2019. Significant pro forma adjustments include the following:
1.The elimination of intercompany revenues between Cliffs and AK Steel of $135.6 million and $394.8 million for the three and nine months ended September 30, 2020, respectively, and $153.5 million and $410.8 million for the three and nine months ended September 30, 2019, respectively.
2.The 2020 pro forma net loss was adjusted to exclude $14.6 million and $74.0 million of non-recurring inventory acquisition accounting adjustments incurred during the three and nine months ended September 30, 2020, respectively. The 2019 pro forma net income was adjusted to include $74.0 million of non-recurring inventory acquisition accounting adjustments for the nine months ended September 30, 2019.
3.The elimination of nonrecurring transaction costs incurred by Cliffs and AK Steel in connection with the Merger of $0.7 million and $29.1 million for the three and nine months ended September 30, 2020, respectively.
4.Total other pro forma adjustments included expense of $10.0 million for the three and nine months ended September 30, 2020, primarily due to increased interest expense, offset by reduced amortization expense, depreciation expense and pension and OPEB expense. Total other pro forma adjustments for the three and nine months ended September 30, 2019 included expense of $1.1 million and $7.0 million, respectively, primarily due to reduced interest and amortization expense, offset by additional depreciation expense and pension and OPEB expense.
5.The income tax impact of pro forma transaction adjustments that affect Net income (loss) attributable to Cliffs shareholders at a statutory rate of 24.3% resulted in an income tax benefit of $5.6 million and $2.1 million for the three and nine months ended September 30, 2020, respectively, and an income tax benefit of $2.1 million and $4.5 million for the three and nine months ended September 30, 2019, respectively.
    The unaudited pro forma financial information does not reflect the potential realization of synergies or cost savings, nor does it reflect other costs relating to the integration of the two companies. This unaudited pro forma financial information should not be considered indicative of the results that would have actually occurred if the acquisition had been consummated on January 1, 2019, nor are they indicative of future results.
v3.20.2
SEGMENT REPORTING (Notes)
9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting Disclosure Our Company is a vertically integrated producer of value-added iron ore and steel products. Our operations are organized and managed in two operating segments according to our upstream and downstream operations. Our Steel and Manufacturing segment is a leading producer of flat-rolled carbon, stainless and electrical steel products, primarily for the automotive, infrastructure and manufacturing, and distributors and converters markets. Our Steel and Manufacturing segment includes subsidiaries that provide customer solutions with carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components, and complex assemblies. Construction of our HBI production plant in Toledo, Ohio, included as part of our Steel and Manufacturing segment, is expected to be completed with production beginning in the fourth quarter of 2020. Our Mining and Pelletizing segment is a major supplier of iron ore pellets to the North American steel industry from our mines and pellet plants located in Michigan and Minnesota. All intercompany transactions were eliminated in consolidation.
    We evaluate performance on a segment basis, as well as a consolidated basis, based on Adjusted EBITDA, which is a non-GAAP measure. This measure is used by management, investors, lenders and other external users of our financial statements to assess our operating performance and to compare operating performance to other companies in the steel and iron ore industries. In addition, management believes Adjusted EBITDA is a useful measure to assess the earnings power of the business without the impact of capital structure and can be used to assess our ability to service debt and fund future capital expenditures in the business.
    Our results by segment are as follows:
(In Millions, Except Sales Tons)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
Sales volume (in thousands):
Steel and Manufacturing (net tons)1,117 — 1,935— 
Mining and Pelletizing sales (long tons)4,907 5,750 11,80013,527
Less: Intercompany sales (long tons)(1,204)(346)(3,028)(384)
Mining and Pelletizing consolidated sales (long tons)3,703 5,404 8,772 13,143 
Revenues:
Steel and Manufacturing net sales to external customers$1,261.7 $— $2,194.3 $— 
Mining and Pelletizing net sales1
520.3 590.6 1,238.7 1,494.8 
Less: Intercompany sales(136.0)(35.0)(335.2)(39.0)
Mining and Pelletizing net sales to external customers384.3 555.6 903.5 1,455.8 
Total revenues$1,646.0 $555.6 $3,097.8 $1,455.8 
Adjusted EBITDA:
Steel and Manufacturing$33.3 $(2.1)$(81.8)$(4.0)
Mining and Pelletizing145.3 182.7 309.5 510.7 
Corporate and eliminations(52.3)(36.5)(160.7)(93.0)
Total Adjusted EBITDA$126.3 $144.1 $67.0 $413.7 
1 Includes Realization of deferred revenue of $34.6 million for the nine months ended September 30, 2020.
    The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
(In Millions)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
Net income (loss)$1.9 $90.9 $(154.8)$229.6 
Less:
Interest expense, net(68.2)(25.4)(167.9)(76.8)
Income tax benefit (expense)22.4 (4.8)98.5 (23.1)
Depreciation, depletion and amortization(72.4)(22.2)(183.9)(63.1)
Total EBITDA$120.1 $143.3 $98.5 $392.6 
Less:
EBITDA of noncontrolling interests1
$16.2 $— $41.3 $— 
Gain (loss) on extinguishment of debt — 132.6 (18.2)
Severance costs(2.4)— (38.3)(1.7)
Acquisition-related costs excluding severance costs(5.1)— (30.1)— 
Amortization of inventory step-up(14.6)— (74.0)— 
Impact of discontinued operations(0.3)(0.8) (1.2)
Total Adjusted EBITDA$126.3 $144.1 $67.0 $413.7 
1 EBITDA of noncontrolling interests includes $11.9 million and $31.2 million for income and $4.3 million and $10.1 million for depreciation, depletion and amortization for the three and nine months ended September 30, 2020, respectively.
    The following summarizes our assets by segment:
(In Millions)
September 30,
2020
December 31,
2019
Assets:
Steel and Manufacturing$6,345.7 $913.6 
Mining and Pelletizing1,643.3 1,643.1 
Total segment assets7,989.0 2,556.7 
Corporate and Other (including discontinued operations)491.9 947.1 
Total assets$8,480.9 $3,503.8 
    The following table summarizes our capital additions by segment:
(In Millions)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
Capital additions1:
Steel and Manufacturing$88.0 $160.5 $266.8 $398.0 
Mining and Pelletizing13.3 22.1 64.9 104.5 
Corporate and Other1.0 2.1 1.3 3.1 
Total capital additions$102.3 $184.7 $333.0 $505.6 
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
v3.20.2
PROPERTY, PLANT AND EQUIPMENT (Notes)
9 Months Ended
Sep. 30, 2020
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT The following table indicates the carrying value of each of the major classes of our depreciable assets:
(In Millions)
September 30,
2020
December 31,
2019
Land, land improvements and mineral rights$653.2 $582.2 
Buildings454.4 157.8 
Steel and Manufacturing equipment2,128.0 42.0 
Mining and Pelletizing equipment1,455.2 1,413.6 
Other121.3 101.5 
Construction-in-progress1,145.9 730.3 
Total property, plant and equipment1
5,958.0 3,027.4 
Allowance for depreciation and depletion(1,407.3)(1,098.4)
Property, plant and equipment, net$4,550.7 $1,929.0 
1 Includes right-of-use assets related to finance leases of $97.1 million and $49.0 million as of September 30, 2020 and December 31, 2019, respectively.
    We recorded capitalized interest into property, plant and equipment of $14.7 million and $38.0 million during the three and nine months ended September 30, 2020, respectively, and $7.0 million and $16.9 million for the three and nine months ended September 30, 2019, respectively.
    We recorded depreciation and depletion expense of $71.8 million and $182.5 million for the three and nine months ended September 30, 2020, respectively, and $22.0 million and $62.5 million for the three and nine months ended September 30, 2019, respectively.
v3.20.2
GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES (Notes)
9 Months Ended
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
Goodwill
    The increase in the balance of Goodwill as of September 30, 2020, compared to December 31, 2019, is due to the preliminary assignment of $141.9 million to Goodwill in 2020 based on the preliminary purchase price allocation for the acquisition of AK Steel. The carrying amount of goodwill related to our Mining and Pelletizing segment was $2.1 million as of both September 30, 2020 and December 31, 2019.
Intangible Assets and Liabilities    
The following is a summary of our intangible assets and liabilities:
(In Millions)
Classification1
Gross AmountAccumulated AmortizationNet Amount
As of September 30, 2020
Intangible assets:
Customer relationshipsIntangible assets, net$77.0 $(2.6)$74.4 
Developed technologyIntangible assets, net60.0 (2.1)57.9 
Trade names and trademarksIntangible assets, net11.0 (0.7)10.3 
Mining permitsIntangible assets, net72.2 (24.7)47.5 
Total intangible assets$220.2 $(30.1)$190.1 
Intangible liabilities:
Above-market supply contractsIntangible liabilities, net$(70.5)$4.6 $(65.9)
As of December 31, 2019
Intangible assets:
Mining permitsIntangible assets, net$72.2 $(24.1)$48.1 
1 Amortization of intangible liabilities related to above-market supply contracts and intangible assets related to mining permits is recognized in Cost of goods sold. Amortization of all other intangible assets is recognized in Selling, general and administrative expenses.
    Amortization expense related to intangible assets was $2.5 million and $6.0 million for the three and nine months ended September 30, 2020, respectively, and $0.2 million and $0.6 million for the three and nine months ended September 30, 2019, respectively.
    Estimated future amortization expense related to intangible assets at September 30, 2020 is as follows:
(In Millions)
Years ending December 31,
2020 (remaining period of the year)$2.5 
202110.0 
202210.0 
202310.0 
202410.0 
202510.0 
    Income from amortization related to the intangible liabilities was $1.9 million and $4.6 million for the three and nine months ended September 30, 2020, respectively.
    Estimated future amortization income related to the intangible liabilities at September 30, 2020 is as follows:
(In Millions)
Years ending December 31,
2020 (remaining period of the year)$2.0 
20217.8 
20227.8 
20237.8 
20247.8 
20257.8 
v3.20.2
DEBT AND CREDIT FACILITIES (Notes)
9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
DEBT AND CREDIT FACILITIES The following represents a summary of our long-term debt:
(In Millions)
September 30, 2020
Debt Instrument
Issuer1
Annual Effective
Interest Rate
Total Principal AmountDebt Issuance CostsUnamortized Premiums (Discounts)Total Debt
Senior Secured Notes:
4.875% 2024 Senior Secured NotesCliffs5.00%$394.5 $(3.7)$(1.5)$389.3 
9.875% 2025 Senior Secured NotesCliffs10.57%955.2 (8.1)(25.8)921.3 
6.75% 2026 Senior Secured NotesCliffs6.99%845.0 (21.4)(9.0)814.6 
Senior Unsecured Notes:
7.625% 2021 AK Senior NotesAK Steel7.33%33.5