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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 | Indefinitely Idled | ||||
Koolyanobbing | Western Australia | 100.0% | Iron Ore | Active |
(In Millions) | ||||||||
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Remeasurement of intercompany loans | $ | 15.1 | $ | 0.4 | ||||
Remeasurement of cash and cash equivalents | (1.2 | ) | 0.8 | |||||
Other remeasurement | (0.3 | ) | (2.4 | ) | ||||
Net impact of transaction gains and (losses) resulting from remeasurement | 13.6 | (1.2 | ) |
|
(In Millions) | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2017 | 2016 | ||||||||||||
Revenues from product sales and services: | |||||||||||||
U.S. Iron Ore | $ | 286.2 | 62 | % | $ | 185.5 | 61 | % | |||||
Asia Pacific Iron Ore | 175.4 | 38 | % | 120.0 | 39 | % | |||||||
Total revenues from product sales and services | $ | 461.6 | 100 | % | $ | 305.5 | 100 | % | |||||
Sales margin: | |||||||||||||
U.S. Iron Ore | $ | 48.4 | $ | 13.2 | |||||||||
Asia Pacific Iron Ore | 47.3 | 17.7 | |||||||||||
Sales margin | 95.7 | 30.9 | |||||||||||
Other operating expense | (13.8 | ) | (31.2 | ) | |||||||||
Other income (expense) | (114.0 | ) | 122.1 | ||||||||||
Income (loss) from continuing operations before income taxes | $ | (32.1 | ) | $ | 121.8 |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net Income (Loss) | $ | (29.8 | ) | $ | 116.8 | ||
Less: | |||||||
Interest expense, net | (42.8 | ) | (56.8 | ) | |||
Income tax benefit (expense) | 1.8 | (7.6 | ) | ||||
Depreciation, depletion and amortization | (23.2 | ) | (35.2 | ) | |||
EBITDA | $ | 34.4 | $ | 216.4 | |||
Less: | |||||||
Gain (loss) on extinguishment/restructuring of debt | (71.9 | ) | 178.8 | ||||
Foreign exchange remeasurement | 13.6 | (1.2 | ) | ||||
Impact of discontinued operations | 0.5 | 2.6 | |||||
Severance and contractor termination costs | — | (0.1 | ) | ||||
Adjusted EBITDA | $ | 92.2 | $ | 36.3 | |||
EBITDA: | |||||||
U.S. Iron Ore | $ | 57.9 | $ | 41.4 | |||
Asia Pacific Iron Ore | 51.4 | 22.3 | |||||
Other | (74.9 | ) | 152.7 | ||||
Total EBITDA | $ | 34.4 | $ | 216.4 | |||
Adjusted EBITDA: | |||||||
U.S. Iron Ore | $ | 64.1 | $ | 46.1 | |||
Asia Pacific Iron Ore | 53.8 | 23.0 | |||||
Other | (25.7 | ) | (32.8 | ) | |||
Total Adjusted EBITDA | $ | 92.2 | $ | 36.3 |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Depreciation, depletion and amortization: | |||||||
U.S. Iron Ore | $ | 16.4 | $ | 26.9 | |||
Asia Pacific Iron Ore | 4.7 | 6.8 | |||||
Other | 2.1 | 1.5 | |||||
Total depreciation, depletion and amortization | $ | 23.2 | $ | 35.2 | |||
Capital additions: | |||||||
U.S. Iron Ore | $ | 27.1 | $ | 4.5 | |||
Asia Pacific Iron Ore | 0.2 | — | |||||
Other | — | 2.3 | |||||
Total capital additions1 | $ | 27.3 | $ | 6.8 | |||
1 Includes cash paid for capital additions of $27.9 million and $10.4 million and a decrease in non-cash accruals of $0.6 million and $3.6 million for the three months ended March 31, 2017 and 2016, respectively. |
(In Millions) | |||||||
March 31, 2017 | December 31, 2016 | ||||||
Assets: | |||||||
U.S. Iron Ore | $ | 1,440.6 | $ | 1,372.5 | |||
Asia Pacific Iron Ore | 168.4 | 155.1 | |||||
Total segment assets | 1,609.0 | 1,527.6 | |||||
Corporate | 316.7 | 396.3 | |||||
Total assets | $ | 1,925.7 | $ | 1,923.9 |
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(In Millions) | |||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
Segment | Finished Goods | Work-in Process | Total Inventory | Finished Goods | Work-in Process | Total Inventory | |||||||||||||||||
U.S. Iron Ore | $ | 194.6 | $ | 26.3 | $ | 220.9 | $ | 124.4 | $ | 12.6 | $ | 137.0 | |||||||||||
Asia Pacific Iron Ore | 14.6 | 15.3 | 29.9 | 23.6 | 17.8 | 41.4 | |||||||||||||||||
Total | $ | 209.2 | $ | 41.6 | $ | 250.8 | $ | 148.0 | $ | 30.4 | $ | 178.4 |
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(In Millions) | |||||||
March 31, 2017 | December 31, 2016 | ||||||
Land rights and mineral rights | $ | 500.7 | $ | 500.5 | |||
Office and information technology | 65.8 | 65.1 | |||||
Buildings | 68.4 | 67.9 | |||||
Mining equipment | 595.8 | 592.2 | |||||
Processing equipment | 558.9 | 552.0 | |||||
Electric power facilities | 49.6 | 49.4 | |||||
Land improvements | 23.7 | 23.5 | |||||
Asset retirement obligation | 19.8 | 19.8 | |||||
Other | 28.4 | 28.1 | |||||
Construction in-progress | 69.8 | 42.8 | |||||
1,980.9 | 1,941.3 | ||||||
Allowance for depreciation and depletion | (985.9 | ) | (956.9 | ) | |||
$ | 995.0 | $ | 984.4 |
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($ in Millions) | ||||||||||||||||||
March 31, 2017 | ||||||||||||||||||
Debt Instrument | Annual Effective Interest Rate | Total Principal Amount | Debt Issuance Costs | Unamortized Discounts | Total Debt | |||||||||||||
Secured Notes | ||||||||||||||||||
$540 Million 8.25% 2020 First Lien Notes | 9.97% | $ | 540.0 | $ | (7.4 | ) | $ | (24.0 | ) | $ | 508.6 | |||||||
Unsecured Notes | ||||||||||||||||||
$400 Million 5.90% 2020 Senior Notes | 5.98% | 88.9 | (0.2 | ) | (0.2 | ) | 88.5 | |||||||||||
$500 Million 4.80% 2020 Senior Notes | 4.83% | 122.4 | (0.3 | ) | (0.1 | ) | 122.0 | |||||||||||
$700 Million 4.875% 2021 Senior Notes | 4.89% | 138.4 | (0.4 | ) | (0.1 | ) | 137.9 | |||||||||||
$500 Million 5.75% 2025 Senior Notes | 5.75% | 500.0 | (8.3 | ) | — | 491.7 | ||||||||||||
$800 Million 6.25% 2040 Senior Notes | 6.34% | 298.4 | (2.5 | ) | (3.4 | ) | 292.5 | |||||||||||
ABL Facility | N/A | 550.0 | N/A | N/A | — | |||||||||||||
Fair Value Adjustment to Interest Rate Hedge | 1.7 | |||||||||||||||||
Long-term debt | $ | 1,642.9 |
($ in Millions) | ||||||||||||||||||
December 31, 2016 | ||||||||||||||||||
Debt Instrument | Annual Effective Interest Rate | Total Principal Amount | Debt Issuance Costs | Undiscounted Interest/(Unamortized Discounts) | Total Debt | |||||||||||||
Secured Notes | ||||||||||||||||||
$540 Million 8.25% 2020 First Lien Notes | 9.97% | $ | 540.0 | $ | (8.0 | ) | $ | (25.7 | ) | $ | 506.3 | |||||||
$218.5 Million 8.00% 2020 1.5 Lien Notes | N/A | 218.5 | — | 65.7 | 284.2 | |||||||||||||
$544.2 Million 7.75% 2020 Second Lien Notes | 15.55% | 430.1 | (5.8 | ) | (85.2 | ) | 339.1 | |||||||||||
Unsecured Notes | ||||||||||||||||||
$400 Million 5.90% 2020 Senior Notes | 5.98% | 225.6 | (0.6 | ) | (0.5 | ) | 224.5 | |||||||||||
$500 Million 4.80% 2020 Senior Notes | 4.83% | 236.8 | (0.7 | ) | (0.2 | ) | 235.9 | |||||||||||
$700 Million 4.875% 2021 Senior Notes | 4.89% | 309.4 | (1.0 | ) | (0.2 | ) | 308.2 | |||||||||||
$800 Million 6.25% 2040 Senior Notes | 6.34% | 298.4 | (2.5 | ) | (3.4 | ) | 292.5 | |||||||||||
ABL Facility | N/A | 550.0 | N/A | N/A | — | |||||||||||||
Fair Value Adjustment to Interest Rate Hedge | 1.9 | |||||||||||||||||
Total debt | $ | 2,192.6 | ||||||||||||||||
Less current portion | 17.5 | |||||||||||||||||
Long-term debt | $ | 2,175.1 |
($ In Millions) | ||||||||
Debt Extinguished | Gain (Loss) on Extinguishment1 | |||||||
Secured Notes | ||||||||
$218.5 Million 8.00% 2020 1.5 Lien Notes | $ | 218.5 | $ | 45.1 | ||||
$544.2 Million 7.75% 2020 Second Lien Notes | 430.1 | (104.5 | ) | |||||
Unsecured Notes | ||||||||
$400 Million 5.90% 2020 Senior Notes | 136.8 | (7.8 | ) | |||||
$500 Million 4.80% 2020 Senior Notes | 114.4 | (1.9 | ) | |||||
$700 Million 4.875% 2021 Senior Notes | 171.0 | (2.8 | ) | |||||
$ | 1,070.8 | $ | (71.9 | ) | ||||
1 Includes write-off of undiscounted interest, unamortized discounts and debt issuance costs. In addition, we paid premiums of $44.7 million related to the redemption of our notes. |
(In Millions) | |||
Maturities of Debt | |||
2017 (April 1 - December 31) | $ | — | |
2018 | — | ||
2019 | — | ||
2020 | 751.3 | ||
2021 | 138.4 | ||
2022 | — | ||
2023 and thereafter | 798.4 | ||
Total maturities of debt | $ | 1,688.1 |
|
(In Millions) | |||||||||||||||
March 31, 2017 | |||||||||||||||
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 | $ | 90.0 | $ | 45.0 | $ | — | $ | 135.0 | |||||||
Derivative assets | — | — | 59.4 | 59.4 | |||||||||||
Loans to and accounts receivable from the Canadian Entities | — | — | 49.0 | 49.0 | |||||||||||
Total | $ | 90.0 | $ | 45.0 | $ | 108.4 | $ | 243.4 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 9.1 | $ | 9.1 | |||||||
Contingent liabilities | — | — | 37.5 | 37.5 | |||||||||||
Total | $ | — | $ | — | $ | 46.6 | $ | 46.6 |
(In Millions) | |||||||||||||||
December 31, 2016 | |||||||||||||||
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 | $ | 177.0 | $ | — | $ | — | $ | 177.0 | |||||||
Derivative assets | — | 1.5 | 31.6 | 33.1 | |||||||||||
Loans to and accounts receivable from the Canadian Entities | — | — | 48.6 | 48.6 | |||||||||||
Total | $ | 177.0 | $ | 1.5 | $ | 80.2 | $ | 258.7 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 0.5 | $ | 0.5 | |||||||
Contingent liabilities | — | — | 37.2 | 37.2 | |||||||||||
Total | $ | — | $ | — | $ | 37.7 | $ | 37.7 |
Qualitative/Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||
(In Millions) Fair Value at March 31, 2017 | Balance Sheet Location | Valuation Technique | Unobservable Input | Range or Point Estimate per dry metric ton (Weighted Average) | ||||||||
Provisional pricing arrangements | $ | 23.5 | Other current assets | Market Approach | Management's Estimate of Platts 62% Price | $79 | ||||||
Hot-Rolled Coil Steel Estimate | $651 | |||||||||||
Provisional pricing arrangements | $ | 9.1 | Other current liabilities | Market Approach | Management's Estimate of Platts 62% Price | $79 | ||||||
Customer supply agreement | $ | 35.9 | Other current assets | Market Approach | Hot-Rolled Coil Steel Estimate | $520 - $630 ($575) | ||||||
Loans to and accounts receivable from the Canadian Entities | $ | 49.0 | Loans to and accounts receivable from the Canadian Entities | * | * | N/A | ||||||
Contingent liabilities | $ | 37.5 | Other liabilities | * | * | N/A | ||||||
* To assess the fair value and recoverability of the amounts receivable from the Canadian Entities, we estimated the fair value of the underlying net assets of the Canadian Entities available for distribution to their creditors in relation to the estimated creditor claims and the priority of those claims. The recorded expenses include an accrual for the estimated probable loss related to claims that may be asserted against us. We are not able to estimate reasonably a range of possible losses in excess of the accrual because there are significant factual and legal issues to be resolved. Our estimates involve significant judgment. Our estimates are based on currently available information, an assessment of the validity of certain claims and estimated payments by the Canadian Entities. |
(In Millions) | |||||||
Level 3 Assets | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Beginning balance | $ | 80.2 | $ | 80.7 | |||
Total gains (losses) | |||||||
Included in earnings | 42.5 | 8.2 | |||||
Settlements | (14.3 | ) | (10.0 | ) | |||
Transfers into Level 3 | — | — | |||||
Transfers out of Level 3 | — | — | |||||
Ending balance - March 31 | $ | 108.4 | $ | 78.9 | |||
Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date | $ | 33.2 | $ | 3.6 |
(In Millions) | |||||||
Level 3 Liabilities | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Beginning balance | $ | (37.7 | ) | $ | (135.8 | ) | |
Total gains (losses) | |||||||
Included in earnings | (8.9 | ) | (7.9 | ) | |||
Settlements | — | 75.7 | |||||
Transfers into Level 3 | — | — | |||||
Transfers out of Level 3 | — | — | |||||
Ending balance - March 31 | $ | (46.6 | ) | $ | (68.0 | ) | |
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date | $ | (9.1 | ) | $ | (0.8 | ) |
(In Millions) | |||||||||||||||||
March 31, 2017 | December 31, 2016 | ||||||||||||||||
Classification | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Long-term debt: | |||||||||||||||||
Secured Notes | |||||||||||||||||
First Senior Lien Notes —$540 million | Level 1 | $ | 508.6 | $ | 583.9 | $ | 506.3 | $ | 595.0 | ||||||||
1.5 Senior Lien Notes —$218.5 million | Level 2 | — | — | 284.2 | 229.5 | ||||||||||||
Second Senior Lien Notes —$544.2 million | Level 1 | — | — | 339.1 | 439.7 | ||||||||||||
Unsecured Notes | |||||||||||||||||
Senior Notes—$500 million | Level 1 | 491.7 | 486.3 | — | — | ||||||||||||
Senior Notes—$400 million | Level 1 | 88.5 | 88.4 | 224.5 | 219.6 | ||||||||||||
Senior Notes—$1.3 billion | Level 1 | 414.5 | 358.9 | 528.4 | 455.8 | ||||||||||||
Senior Notes—$700 million | Level 1 | 137.9 | 134.3 | 308.2 | 283.1 | ||||||||||||
ABL Facility | Level 2 | — | — | — | — | ||||||||||||
Fair value adjustment to interest rate hedge | Level 2 | 1.7 | 1.7 | 1.9 | 1.9 | ||||||||||||
Total long-term debt | $ | 1,642.9 | $ | 1,653.5 | $ | 2,192.6 | $ | 2,224.6 |
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(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Service cost | $ | 4.8 | $ | 4.5 | |||
Interest cost | 7.5 | 7.5 | |||||
Expected return on plan assets | (13.5 | ) | (13.7 | ) | |||
Amortization: | |||||||
Prior service costs | 0.6 | 0.5 | |||||
Net actuarial loss | 5.3 | 5.3 | |||||
Net periodic benefit cost to continuing operations | $ | 4.7 | $ | 4.1 |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Service cost | $ | 0.5 | $ | 0.4 | |||
Interest cost | 2.1 | 2.3 | |||||
Expected return on plan assets | (4.4 | ) | (4.3 | ) | |||
Amortization: | |||||||
Prior service credits | (0.7 | ) | (0.9 | ) | |||
Net actuarial loss | 1.2 | 1.4 | |||||
Net periodic benefit credit to continuing operations | $ | (1.3 | ) | $ | (1.1 | ) |
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Grant Date | Grant Date Market Price | Average Expected Term (Years) | Expected Volatility | Risk-Free Interest Rate | Dividend Yield | Fair Value | Fair Value (Percent of Grant Date Market Price) | |||||||||||
February 21, 2017 | $ | 11.67 | 2.86 | 92.1% | 1.51% | —% | $ | 19.69 | 168.72% |
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(In Millions) | |||||||
Capital Leases | Operating Leases | ||||||
2017 (April 1 - December 31) | $ | 17.2 | $ | 5.3 | |||
2018 | 18.8 | 5.8 | |||||
2019 | 10.4 | 3.0 | |||||
2020 | 9.4 | 2.9 | |||||
2021 | 8.7 | 3.0 | |||||
2022 and thereafter | 1.4 | — | |||||
Total minimum lease payments | $ | 65.9 | $ | 20.0 | |||
Amounts representing interest | 11.8 | ||||||
Present value of net minimum lease payments1 | $ | 54.1 | |||||
1 The total is comprised of $18.0 million and $36.1 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at March 31, 2017. |
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(In Millions) | |||||||
March 31, 2017 | December 31, 2016 | ||||||
Environmental | $ | 2.8 | $ | 2.8 | |||
Mine closure | |||||||
U.S. Iron Ore1 | 190.9 | 187.8 | |||||
Asia Pacific Iron Ore | 17.3 | 16.2 | |||||
Total mine closure | 208.2 | 204.0 | |||||
Total environmental and mine closure obligations | 211.0 | 206.8 | |||||
Less current portion | 12.8 | 12.9 | |||||
Long-term environmental and mine closure obligations | $ | 198.2 | $ | 193.9 | |||
1 U.S. Iron Ore includes our active operating mines, our indefinitely idled Empire mine and a closed mine formerly operating as LTVSMC. |
(In Millions) | |||||||
March 31, 2017 | December 31, 2016 | ||||||
Asset retirement obligation at beginning of period | $ | 204.0 | $ | 230.4 | |||
Accretion expense | 3.6 | 14.0 | |||||
Remediation payments | (0.3 | ) | (2.2 | ) | |||
Exchange rate changes | 0.9 | (0.2 | ) | ||||
Revision in estimated cash flows | — | (38.0 | ) | ||||
Asset retirement obligation at end of period | $ | 208.2 | $ | 204.0 |
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(In Millions) | |||||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||||
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 | $ | (25.1 | ) | $ | 53.6 | $ | 78.4 | $ | (24.6 | ) | $ | 53.8 | ||||||||||
Total intangible assets | $ | 78.7 | $ | (25.1 | ) | $ | 53.6 | $ | 78.4 | $ | (24.6 | ) | $ | 53.8 |
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(In Millions) | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | ||||||||||||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||
Customer supply agreement | Other current assets | 35.9 | Other current assets | 21.3 | — | — | |||||||||||||||||
Provisional pricing arrangements | Other current assets | 23.5 | Other current assets | 10.3 | Other current liabilities | 9.1 | Other current liabilities | 0.5 | |||||||||||||||
Commodity contracts | — | Other current assets | 1.5 | — | — | ||||||||||||||||||
Total derivatives not designated as hedging instruments under ASC 815 | $ | 59.4 | $ | 33.1 | $ | 9.1 | $ | 0.5 |
(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, | ||||||||
2017 | 2016 | |||||||
Customer supply agreement | Product revenues | 17.8 | (0.1 | ) | ||||
Provisional pricing arrangements | Product revenues | 15.7 | (1.5 | ) | ||||
Commodity contracts | Cost of goods sold and operating expenses | (1.3 | ) | — | ||||
Total | $ | 32.2 | $ | (1.6 | ) |
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(In Millions) | |||||||||||
Cliffs Shareholders’ Equity (Deficit) | Noncontrolling Interest (Deficit) | Total Equity (Deficit) | |||||||||
December 31, 2016 | $ | (1,464.3 | ) | $ | 133.8 | $ | (1,330.5 | ) | |||
Comprehensive loss | |||||||||||
Net loss | (28.1 | ) | (1.7 | ) | (29.8 | ) | |||||
Other comprehensive loss | (3.0 | ) | (5.0 | ) | (8.0 | ) | |||||
Total comprehensive loss | (31.1 | ) | (6.7 | ) | (37.8 | ) | |||||
Issuance of common shares | 661.3 | — | 661.3 | ||||||||
Stock and other incentive plans | 4.0 | — | 4.0 | ||||||||
March 31, 2017 | $ | (830.1 | ) | $ | 127.1 | $ | (703.0 | ) |
(In Millions) | |||||||||||
Cliffs Shareholders’ Equity (Deficit) | Noncontrolling Interest (Deficit) | Total Equity (Deficit) | |||||||||
December 31, 2015 | $ | (1,981.4 | ) | $ | 169.8 | $ | (1,811.6 | ) | |||
Comprehensive income | |||||||||||
Net income | 108.0 | 8.8 | 116.8 | ||||||||
Other comprehensive income | 5.7 | 0.6 | 6.3 | ||||||||
Total comprehensive income | 113.7 | 9.4 | 123.1 | ||||||||
Issuance of common shares | 5.4 | — | 5.4 | ||||||||
Stock and other incentive plans | 2.9 | — | 2.9 | ||||||||
Distributions of partnership equity | — | (17.0 | ) | (17.0 | ) | ||||||
Undistributed losses to noncontrolling interest | — | 0.5 | 0.5 | ||||||||
March 31, 2016 | $ | (1,859.4 | ) | $ | 162.7 | $ | (1,696.7 | ) |
(In Millions) | |||||||||||
Changes in Pension and Other Post-Retirement Benefits, net of tax | Unrealized Net Gain (Loss) on Foreign Currency Translation | Accumulated Other Comprehensive Income (Loss) | |||||||||
December 31, 2016 | $ | (260.6 | ) | $ | 239.3 | $ | (21.3 | ) | |||
Other comprehensive income (loss) before reclassifications | 3.3 | (12.7 | ) | (9.4 | ) | ||||||
Net loss reclassified from accumulated other comprehensive income (loss) | 6.4 | — | 6.4 | ||||||||
March 31, 2017 | $ | (250.9 | ) | $ | 226.6 | $ | (24.3 | ) |
(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) | |||||||||||||||
December 31, 2015 | $ | (241.4 | ) | $ | 0.1 | $ | 220.7 | $ | 2.6 | $ | (18.0 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (1.5 | ) | (0.1 | ) | 4.4 | (3.4 | ) | (0.6 | ) | ||||||||||
Net loss (gain) reclassified from accumulated other comprehensive income (loss) | 6.3 | — | — | — | 6.3 | ||||||||||||||
March 31, 2016 | $ | (236.6 | ) | $ | — | $ | 225.1 | $ | (0.8 | ) | $ | (12.3 | ) |
(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, | ||||||||||
2017 | 2016 | |||||||||
Amortization of pension and postretirement benefit liability: | ||||||||||
Prior service credits1 | $ | (0.1 | ) | $ | (0.4 | ) | ||||
Net actuarial loss1 | 6.5 | 6.7 | ||||||||
Total before taxes | 6.4 | 6.3 | ||||||||
— | — | Income tax benefit (expense) | ||||||||
Total reclassifications for the period, net of tax | $ | 6.4 | $ | 6.3 | ||||||
1 These accumulated other comprehensive income components are included in the computation of net periodic benefit cost (credit). See NOTE 7 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS for further information. |
|
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, | |||||||
2017 | 2016 | ||||||
Product revenues from related parties | $ | 118.5 | $ | 103.4 | |||
Total product revenues | 412.8 | 275.6 | |||||
Related party product revenue as a percent of total product revenue | 28.7 | % | 37.5 | % |
|
(In Millions, Except Per Share Amounts) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Income (Loss) from Continuing Operations | $ | (30.3 | ) | $ | 114.3 | ||
Loss (Income) from Continuing Operations Attributable to Noncontrolling Interest | 1.7 | (8.8 | ) | ||||
Net Income (Loss) from Continuing Operations Attributable to Cliffs Shareholders | $ | (28.6 | ) | $ | 105.5 | ||
Income from Discontinued Operations, net of tax | 0.5 | 2.5 | |||||
Net Income (Loss) Attributable to Cliffs Shareholders | $ | (28.1 | ) | $ | 108.0 | ||
Weighted Average Number of Shares: | |||||||
Basic | 265.2 | 171.7 | |||||
Employee Stock Plans | — | 0.3 | |||||
Diluted | 265.2 | 172.0 | |||||
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Basic: | |||||||
Continuing operations | $ | (0.11 | ) | $ | 0.61 | ||
Discontinued operations | — | 0.01 | |||||
$ | (0.11 | ) | $ | 0.62 | |||
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Diluted: | |||||||
Continuing operations | $ | (0.11 | ) | $ | 0.61 | ||
Discontinued operations | — | 0.01 | |||||
$ | (0.11 | ) | $ | 0.62 |
|
|
|
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 | Indefinitely Idled | ||||
Koolyanobbing | Western Australia | 100.0% | Iron Ore | Active |
(In Millions) | ||||||||
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Remeasurement of intercompany loans | $ | 15.1 | $ | 0.4 | ||||
Remeasurement of cash and cash equivalents | (1.2 | ) | 0.8 | |||||
Other remeasurement | (0.3 | ) | (2.4 | ) | ||||
Net impact of transaction gains and (losses) resulting from remeasurement | 13.6 | (1.2 | ) |
|
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 | Indefinitely Idled | ||||
Koolyanobbing | Western Australia | 100.0% | Iron Ore | Active |
(In Millions) | ||||||||
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Remeasurement of intercompany loans | $ | 15.1 | $ | 0.4 | ||||
Remeasurement of cash and cash equivalents | (1.2 | ) | 0.8 | |||||
Other remeasurement | (0.3 | ) | (2.4 | ) | ||||
Net impact of transaction gains and (losses) resulting from remeasurement | 13.6 | (1.2 | ) |
|
(In Millions) | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2017 | 2016 | ||||||||||||
Revenues from product sales and services: | |||||||||||||
U.S. Iron Ore | $ | 286.2 | 62 | % | $ | 185.5 | 61 | % | |||||
Asia Pacific Iron Ore | 175.4 | 38 | % | 120.0 | 39 | % | |||||||
Total revenues from product sales and services | $ | 461.6 | 100 | % | $ | 305.5 | 100 | % | |||||
Sales margin: | |||||||||||||
U.S. Iron Ore | $ | 48.4 | $ | 13.2 | |||||||||
Asia Pacific Iron Ore | 47.3 | 17.7 | |||||||||||
Sales margin | 95.7 | 30.9 | |||||||||||
Other operating expense | (13.8 | ) | (31.2 | ) | |||||||||
Other income (expense) | (114.0 | ) | 122.1 | ||||||||||
Income (loss) from continuing operations before income taxes | $ | (32.1 | ) | $ | 121.8 |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net Income (Loss) | $ | (29.8 | ) | $ | 116.8 | ||
Less: | |||||||
Interest expense, net | (42.8 | ) | (56.8 | ) | |||
Income tax benefit (expense) | 1.8 | (7.6 | ) | ||||
Depreciation, depletion and amortization | (23.2 | ) | (35.2 | ) | |||
EBITDA | $ | 34.4 | $ | 216.4 | |||
Less: | |||||||
Gain (loss) on extinguishment/restructuring of debt | (71.9 | ) | 178.8 | ||||
Foreign exchange remeasurement | 13.6 | (1.2 | ) | ||||
Impact of discontinued operations | 0.5 | 2.6 | |||||
Severance and contractor termination costs | — | (0.1 | ) | ||||
Adjusted EBITDA | $ | 92.2 | $ | 36.3 | |||
EBITDA: | |||||||
U.S. Iron Ore | $ | 57.9 | $ | 41.4 | |||
Asia Pacific Iron Ore | 51.4 | 22.3 | |||||
Other | (74.9 | ) | 152.7 | ||||
Total EBITDA | $ | 34.4 | $ | 216.4 | |||
Adjusted EBITDA: | |||||||
U.S. Iron Ore | $ | 64.1 | $ | 46.1 | |||
Asia Pacific Iron Ore | 53.8 | 23.0 | |||||
Other | (25.7 | ) | (32.8 | ) | |||
Total Adjusted EBITDA | $ | 92.2 | $ | 36.3 |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Depreciation, depletion and amortization: | |||||||
U.S. Iron Ore | $ | 16.4 | $ | 26.9 | |||
Asia Pacific Iron Ore | 4.7 | 6.8 | |||||
Other | 2.1 | 1.5 | |||||
Total depreciation, depletion and amortization | $ | 23.2 | $ | 35.2 | |||
Capital additions: | |||||||
U.S. Iron Ore | $ | 27.1 | $ | 4.5 | |||
Asia Pacific Iron Ore | 0.2 | — | |||||
Other | — | 2.3 | |||||
Total capital additions1 | $ | 27.3 | $ | 6.8 | |||
1 Includes cash paid for capital additions of $27.9 million and $10.4 million and a decrease in non-cash accruals of $0.6 million and $3.6 million for the three months ended March 31, 2017 and 2016, respectively. |
(In Millions) | |||||||
March 31, 2017 | December 31, 2016 | ||||||
Assets: | |||||||
U.S. Iron Ore | $ | 1,440.6 | $ | 1,372.5 | |||
Asia Pacific Iron Ore | 168.4 | 155.1 | |||||
Total segment assets | 1,609.0 | 1,527.6 | |||||
Corporate | 316.7 | 396.3 | |||||
Total assets | $ | 1,925.7 | $ | 1,923.9 |
|
(In Millions) | |||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
Segment | Finished Goods | Work-in Process | Total Inventory | Finished Goods | Work-in Process | Total Inventory | |||||||||||||||||
U.S. Iron Ore | $ | 194.6 | $ | 26.3 | $ | 220.9 | $ | 124.4 | $ | 12.6 | $ | 137.0 | |||||||||||
Asia Pacific Iron Ore | 14.6 | 15.3 | 29.9 | 23.6 | 17.8 | 41.4 | |||||||||||||||||
Total | $ | 209.2 | $ | 41.6 | $ | 250.8 | $ | 148.0 | $ | 30.4 | $ | 178.4 |
|
(In Millions) | |||||||
March 31, 2017 | December 31, 2016 | ||||||
Land rights and mineral rights | $ | 500.7 | $ | 500.5 | |||
Office and information technology | 65.8 | 65.1 | |||||
Buildings | 68.4 | 67.9 | |||||
Mining equipment | 595.8 | 592.2 | |||||
Processing equipment | 558.9 | 552.0 | |||||
Electric power facilities | 49.6 | 49.4 | |||||
Land improvements | 23.7 | 23.5 | |||||
Asset retirement obligation | 19.8 | 19.8 | |||||
Other | 28.4 | 28.1 | |||||
Construction in-progress | 69.8 | 42.8 | |||||
1,980.9 | 1,941.3 | ||||||
Allowance for depreciation and depletion | (985.9 | ) | (956.9 | ) | |||
$ | 995.0 | $ | 984.4 |
|
($ in Millions) | ||||||||||||||||||
March 31, 2017 | ||||||||||||||||||
Debt Instrument | Annual Effective Interest Rate | Total Principal Amount | Debt Issuance Costs | Unamortized Discounts | Total Debt | |||||||||||||
Secured Notes | ||||||||||||||||||
$540 Million 8.25% 2020 First Lien Notes | 9.97% | $ | 540.0 | $ | (7.4 | ) | $ | (24.0 | ) | $ | 508.6 | |||||||
Unsecured Notes | ||||||||||||||||||
$400 Million 5.90% 2020 Senior Notes | 5.98% | 88.9 | (0.2 | ) | (0.2 | ) | 88.5 | |||||||||||
$500 Million 4.80% 2020 Senior Notes | 4.83% | 122.4 | (0.3 | ) | (0.1 | ) | 122.0 | |||||||||||
$700 Million 4.875% 2021 Senior Notes | 4.89% | 138.4 | (0.4 | ) | (0.1 | ) | 137.9 | |||||||||||
$500 Million 5.75% 2025 Senior Notes | 5.75% | 500.0 | (8.3 | ) | — | 491.7 | ||||||||||||
$800 Million 6.25% 2040 Senior Notes | 6.34% | 298.4 | (2.5 | ) | (3.4 | ) | 292.5 | |||||||||||
ABL Facility | N/A | 550.0 | N/A | N/A | — | |||||||||||||
Fair Value Adjustment to Interest Rate Hedge | 1.7 | |||||||||||||||||
Long-term debt | $ | 1,642.9 |
($ in Millions) | ||||||||||||||||||
December 31, 2016 | ||||||||||||||||||
Debt Instrument | Annual Effective Interest Rate | Total Principal Amount | Debt Issuance Costs | Undiscounted Interest/(Unamortized Discounts) | Total Debt | |||||||||||||
Secured Notes | ||||||||||||||||||
$540 Million 8.25% 2020 First Lien Notes | 9.97% | $ | 540.0 | $ | (8.0 | ) | $ | (25.7 | ) | $ | 506.3 | |||||||
$218.5 Million 8.00% 2020 1.5 Lien Notes | N/A | 218.5 | — | 65.7 | 284.2 | |||||||||||||
$544.2 Million 7.75% 2020 Second Lien Notes | 15.55% | 430.1 | (5.8 | ) | (85.2 | ) | 339.1 | |||||||||||
Unsecured Notes | ||||||||||||||||||
$400 Million 5.90% 2020 Senior Notes | 5.98% | 225.6 | (0.6 | ) | (0.5 | ) | 224.5 | |||||||||||
$500 Million 4.80% 2020 Senior Notes | 4.83% | 236.8 | (0.7 | ) | (0.2 | ) | 235.9 | |||||||||||
$700 Million 4.875% 2021 Senior Notes | 4.89% | 309.4 | (1.0 | ) | (0.2 | ) | 308.2 | |||||||||||
$800 Million 6.25% 2040 Senior Notes | 6.34% | 298.4 | (2.5 | ) | (3.4 | ) | 292.5 | |||||||||||
ABL Facility | N/A | 550.0 | N/A | N/A | — | |||||||||||||
Fair Value Adjustment to Interest Rate Hedge | 1.9 | |||||||||||||||||
Total debt | $ | 2,192.6 | ||||||||||||||||
Less current portion | 17.5 | |||||||||||||||||
Long-term debt | $ | 2,175.1 |
($ In Millions) | ||||||||
Debt Extinguished | Gain (Loss) on Extinguishment1 | |||||||
Secured Notes | ||||||||
$218.5 Million 8.00% 2020 1.5 Lien Notes | $ | 218.5 | $ | 45.1 | ||||
$544.2 Million 7.75% 2020 Second Lien Notes | 430.1 | (104.5 | ) | |||||
Unsecured Notes | ||||||||
$400 Million 5.90% 2020 Senior Notes | 136.8 | (7.8 | ) | |||||
$500 Million 4.80% 2020 Senior Notes | 114.4 | (1.9 | ) | |||||
$700 Million 4.875% 2021 Senior Notes | 171.0 | (2.8 | ) | |||||
$ | 1,070.8 | $ | (71.9 | ) | ||||
1 Includes write-off of undiscounted interest, unamortized discounts and debt issuance costs. In addition, we paid premiums of $44.7 million related to the redemption of our notes. |
(In Millions) | |||
Maturities of Debt | |||
2017 (April 1 - December 31) | $ | — | |
2018 | — | ||
2019 | — | ||
2020 | 751.3 | ||
2021 | 138.4 | ||
2022 | — | ||
2023 and thereafter | 798.4 | ||
Total maturities of debt | $ | 1,688.1 |
|
(In Millions) | |||||||||||||||
March 31, 2017 | |||||||||||||||
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 | $ | 90.0 | $ | 45.0 | $ | — | $ | 135.0 | |||||||
Derivative assets | — | — | 59.4 | 59.4 | |||||||||||
Loans to and accounts receivable from the Canadian Entities | — | — | 49.0 | 49.0 | |||||||||||
Total | $ | 90.0 | $ | 45.0 | $ | 108.4 | $ | 243.4 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 9.1 | $ | 9.1 | |||||||
Contingent liabilities | — | — | 37.5 | 37.5 | |||||||||||
Total | $ | — | $ | — | $ | 46.6 | $ | 46.6 |
(In Millions) | |||||||||||||||
December 31, 2016 | |||||||||||||||
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 | $ | 177.0 | $ | — | $ | — | $ | 177.0 | |||||||
Derivative assets | — | 1.5 | 31.6 | 33.1 | |||||||||||
Loans to and accounts receivable from the Canadian Entities | — | — | 48.6 | 48.6 | |||||||||||
Total | $ | 177.0 | $ | 1.5 | $ | 80.2 | $ | 258.7 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 0.5 | $ | 0.5 | |||||||
Contingent liabilities | — | — | 37.2 | 37.2 | |||||||||||
Total | $ | — | $ | — | $ | 37.7 | $ | 37.7 |
Qualitative/Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||
(In Millions) Fair Value at March 31, 2017 | Balance Sheet Location | Valuation Technique | Unobservable Input | Range or Point Estimate per dry metric ton (Weighted Average) | ||||||||
Provisional pricing arrangements | $ | 23.5 | Other current assets | Market Approach | Management's Estimate of Platts 62% Price | $79 | ||||||
Hot-Rolled Coil Steel Estimate | $651 | |||||||||||
Provisional pricing arrangements | $ | 9.1 | Other current liabilities | Market Approach | Management's Estimate of Platts 62% Price | $79 | ||||||
Customer supply agreement | $ | 35.9 | Other current assets | Market Approach | Hot-Rolled Coil Steel Estimate | $520 - $630 ($575) | ||||||
Loans to and accounts receivable from the Canadian Entities | $ | 49.0 | Loans to and accounts receivable from the Canadian Entities | * | * | N/A | ||||||
Contingent liabilities | $ | 37.5 | Other liabilities | * | * | N/A | ||||||
* To assess the fair value and recoverability of the amounts receivable from the Canadian Entities, we estimated the fair value of the underlying net assets of the Canadian Entities available for distribution to their creditors in relation to the estimated creditor claims and the priority of those claims. The recorded expenses include an accrual for the estimated probable loss related to claims that may be asserted against us. We are not able to estimate reasonably a range of possible losses in excess of the accrual because there are significant factual and legal issues to be resolved. Our estimates involve significant judgment. Our estimates are based on currently available information, an assessment of the validity of certain claims and estimated payments by the Canadian Entities. |
(In Millions) | |||||||
Level 3 Assets | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Beginning balance | $ | 80.2 | $ | 80.7 | |||
Total gains (losses) | |||||||
Included in earnings | 42.5 | 8.2 | |||||
Settlements | (14.3 | ) | (10.0 | ) | |||
Transfers into Level 3 | — | — | |||||
Transfers out of Level 3 | — | — | |||||
Ending balance - March 31 | $ | 108.4 | $ | 78.9 | |||
Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date | $ | 33.2 | $ | 3.6 |
(In Millions) | |||||||
Level 3 Liabilities | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Beginning balance | $ | (37.7 | ) | $ | (135.8 | ) | |
Total gains (losses) | |||||||
Included in earnings | (8.9 | ) | (7.9 | ) | |||
Settlements | — | 75.7 | |||||
Transfers into Level 3 | — | — | |||||
Transfers out of Level 3 | — | — | |||||
Ending balance - March 31 | $ | (46.6 | ) | $ | (68.0 | ) | |
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date | $ | (9.1 | ) | $ | (0.8 | ) |
(In Millions) | |||||||||||||||||
March 31, 2017 | December 31, 2016 | ||||||||||||||||
Classification | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Long-term debt: | |||||||||||||||||
Secured Notes | |||||||||||||||||
First Senior Lien Notes —$540 million | Level 1 | $ | 508.6 | $ | 583.9 | $ | 506.3 | $ | 595.0 | ||||||||
1.5 Senior Lien Notes —$218.5 million | Level 2 | — | — | 284.2 | 229.5 | ||||||||||||
Second Senior Lien Notes —$544.2 million | Level 1 | — | — | 339.1 | 439.7 | ||||||||||||
Unsecured Notes | |||||||||||||||||
Senior Notes—$500 million | Level 1 | 491.7 | 486.3 | — | — | ||||||||||||
Senior Notes—$400 million | Level 1 | 88.5 | 88.4 | 224.5 | 219.6 | ||||||||||||
Senior Notes—$1.3 billion | Level 1 | 414.5 | 358.9 | 528.4 | 455.8 | ||||||||||||
Senior Notes—$700 million | Level 1 | 137.9 | 134.3 | 308.2 | 283.1 | ||||||||||||
ABL Facility | Level 2 | — | — | — | — | ||||||||||||
Fair value adjustment to interest rate hedge | Level 2 | 1.7 | 1.7 | 1.9 | 1.9 | ||||||||||||
Total long-term debt | $ | 1,642.9 | $ | 1,653.5 | $ | 2,192.6 | $ | 2,224.6 |
|
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Service cost | $ | 4.8 | $ | 4.5 | |||
Interest cost | 7.5 | 7.5 | |||||
Expected return on plan assets | (13.5 | ) | (13.7 | ) | |||
Amortization: | |||||||
Prior service costs | 0.6 | 0.5 | |||||
Net actuarial loss | 5.3 | 5.3 | |||||
Net periodic benefit cost to continuing operations | $ | 4.7 | $ | 4.1 |
(In Millions) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Service cost | $ | 0.5 | $ | 0.4 | |||
Interest cost | 2.1 | 2.3 | |||||
Expected return on plan assets | (4.4 | ) | (4.3 | ) | |||
Amortization: | |||||||
Prior service credits | (0.7 | ) | (0.9 | ) | |||
Net actuarial loss | 1.2 | 1.4 | |||||
Net periodic benefit credit to continuing operations | $ | (1.3 | ) | $ | (1.1 | ) |
|
Grant Date | Grant Date Market Price | Average Expected Term (Years) | Expected Volatility | Risk-Free Interest Rate | Dividend Yield | Fair Value | Fair Value (Percent of Grant Date Market Price) | |||||||||||
February 21, 2017 | $ | 11.67 | 2.86 | 92.1% | 1.51% | —% | $ | 19.69 | 168.72% |
|
(In Millions) | |||||||
Capital Leases | Operating Leases | ||||||
2017 (April 1 - December 31) | $ | 17.2 | $ | 5.3 | |||
2018 | 18.8 | 5.8 | |||||
2019 | 10.4 | 3.0 | |||||
2020 | 9.4 | 2.9 | |||||
2021 | 8.7 | 3.0 | |||||
2022 and thereafter | 1.4 | — | |||||
Total minimum lease payments | $ | 65.9 | $ | 20.0 | |||
Amounts representing interest | 11.8 | ||||||
Present value of net minimum lease payments1 | $ | 54.1 | |||||
1 The total is comprised of $18.0 million and $36.1 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at March 31, 2017. |
|
(In Millions) | |||||||
March 31, 2017 | December 31, 2016 | ||||||
Environmental | $ | 2.8 | $ | 2.8 | |||
Mine closure | |||||||
U.S. Iron Ore1 | 190.9 | 187.8 | |||||
Asia Pacific Iron Ore | 17.3 | 16.2 | |||||
Total mine closure | 208.2 | 204.0 | |||||
Total environmental and mine closure obligations | 211.0 | 206.8 | |||||
Less current portion | 12.8 | 12.9 | |||||
Long-term environmental and mine closure obligations | $ | 198.2 | $ | 193.9 | |||
1 U.S. Iron Ore includes our active operating mines, our indefinitely idled Empire mine and a closed mine formerly operating as LTVSMC. |
(In Millions) | |||||||
March 31, 2017 | December 31, 2016 | ||||||
Asset retirement obligation at beginning of period | $ | 204.0 | $ | 230.4 | |||
Accretion expense | 3.6 | 14.0 | |||||
Remediation payments | (0.3 | ) | (2.2 | ) | |||
Exchange rate changes | 0.9 | (0.2 | ) | ||||
Revision in estimated cash flows | — | (38.0 | ) | ||||
Asset retirement obligation at end of period | $ | 208.2 | $ | 204.0 |
|
(In Millions) | |||||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||||
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 | $ | (25.1 | ) | $ | 53.6 | $ | 78.4 | $ | (24.6 | ) | $ | 53.8 | ||||||||||
Total intangible assets | $ | 78.7 | $ | (25.1 | ) | $ | 53.6 | $ | 78.4 | $ | (24.6 | ) | $ | 53.8 |
|
(In Millions) | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | ||||||||||||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||
Customer supply agreement | Other current assets | 35.9 | Other current assets | 21.3 | — | — | |||||||||||||||||
Provisional pricing arrangements | Other current assets | 23.5 | Other current assets | 10.3 | Other current liabilities | 9.1 | Other current liabilities | 0.5 | |||||||||||||||
Commodity contracts | — | Other current assets | 1.5 | — | — | ||||||||||||||||||
Total derivatives not designated as hedging instruments under ASC 815 | $ | 59.4 | $ | 33.1 | $ | 9.1 | $ | 0.5 |
(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, | ||||||||
2017 | 2016 | |||||||
Customer supply agreement | Product revenues | 17.8 | (0.1 | ) | ||||
Provisional pricing arrangements | Product revenues | 15.7 | (1.5 | ) | ||||
Commodity contracts | Cost of goods sold and operating expenses | (1.3 | ) | — | ||||
Total | $ | 32.2 | $ | (1.6 | ) |
|
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, | |||||||
2017 | 2016 | ||||||
Product revenues from related parties | $ | 118.5 | $ | 103.4 | |||
Total product revenues | 412.8 | 275.6 | |||||
Related party product revenue as a percent of total product revenue | 28.7 | % | 37.5 | % |
|
(In Millions, Except Per Share Amounts) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Income (Loss) from Continuing Operations | $ | (30.3 | ) | $ | 114.3 | ||
Loss (Income) from Continuing Operations Attributable to Noncontrolling Interest | 1.7 | (8.8 | ) | ||||
Net Income (Loss) from Continuing Operations Attributable to Cliffs Shareholders | $ | (28.6 | ) | $ | 105.5 | ||
Income from Discontinued Operations, net of tax | 0.5 | 2.5 | |||||
Net Income (Loss) Attributable to Cliffs Shareholders | $ | (28.1 | ) | $ | 108.0 | ||
Weighted Average Number of Shares: | |||||||
Basic | 265.2 | 171.7 | |||||
Employee Stock Plans | — | 0.3 | |||||
Diluted | 265.2 | 172.0 | |||||
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Basic: | |||||||
Continuing operations | $ | (0.11 | ) | $ | 0.61 | ||
Discontinued operations | — | 0.01 | |||||
$ | (0.11 | ) | $ | 0.62 | |||
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Diluted: | |||||||
Continuing operations | $ | (0.11 | ) | $ | 0.61 | ||
Discontinued operations | — | 0.01 | |||||
$ | (0.11 | ) | $ | 0.62 |
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