Annual report pursuant to Section 13 and 15(d)

LEASE OBLIGATIONS

v2.4.1.9
LEASE OBLIGATIONS
 12 Months Ended
Dec. 31, 2014
Leases [Abstract]  
LEASE OBLIGATIONS
NOTE 10 - LEASE OBLIGATIONS
We lease certain mining, production and other equipment under operating and capital leases. The leases are for varying lengths, generally at market interest rates and contain purchase and/or renewal options at the end of the terms. Our operating lease expense was $20.6 million, $29.5 million and $25.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. Capital lease assets were $92.7 million and $404.0 million at December 31, 2014 and 2013, respectively. The value of the capital lease assets in 2014 have decreased due to several factors including impairment charges of $140.4 million on our Asia Pacific Iron Ore, North American Coal and Eastern Canadian Iron Ore operations. Other factors involved are the announced exiting out of Eastern Canadian Iron Ore, additions/deletions of assets, depreciation, etc. Corresponding accumulated amortization of capital leases included in respective allowances for depreciation were $18.1 million and $198.5 million at December 31, 2014 and 2013, respectively.
Future minimum payments under capital leases and non-cancellable operating leases at December 31, 2014 are as follows:
 
(In Millions)
 
Capital Leases
 
Operating Leases
2015
$
84.8

 
$
12.0

2016
34.1

 
9.3

2017
26.9

 
8.4

2018
20.4

 
6.8

2019
11.4

 
4.8

2020 and thereafter
21.0

 
9.9

Total minimum lease payments
$
198.6

 
$
51.2

Amounts representing interest
31.3

 
 
Present value of net minimum lease payments
$
167.3

(1)
 
                                         
(1)
The total is comprised of $74.5 million and $92.8 million classified as Current portion of capital leases and Other liabilities, respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at December 31, 2014.