Cleveland-Cliffs Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

Segment Reporting Information [Line Items]

The consolidated financial statements include our accounts and the accounts of our wholly owned and majority-owned subsidiaries, including the following operations:



Name	Location	Ownership Interest	Operation
Northshore	Minnesota	100.0%	Iron Ore
United Taconite	Minnesota	100.0%	Iron Ore
Wabush	Newfoundland and Labrador/Quebec, Canada	100.0%	Iron Ore
Bloom Lake	Quebec, Canada	75.0%	Iron Ore
Tilden	Michigan	85.0%	Iron Ore
Empire	Michigan	79.0%	Iron Ore
Koolyanobbing	Western Australia	100.0%	Iron Ore
Pinnacle	West Virginia	100.0%	Coal
Oak Grove	Alabama	100.0%	Coal
CLCC	West Virginia	100.0%	Coal

Schedule of Equity Method Investments

The following table presents the detail of our investments in unconsolidated ventures and where those investments are classified in the Statements of Consolidated Financial Position as of December 31, 2012 and December 31, 2011. Parentheses indicate a net liability.



				(In Millions)
Investment	Classification	Accounting Method	Interest Percentage	December 31, 2012			December 31, 2011
Amapá	Investments in ventures	Equity Method	30	$	101.9		$	498.6
Cockatoo	Other liabilities	Equity Method	50	(25.3		)	(15.0		)
Hibbing	Other liabilities	Equity Method	23	(2.1		)	(6.8		)
Other	Investments in ventures	Equity Method	Various	33.9			28.0
				$	108.4		$	504.8

Estimated Useful Lives Of Intangible Assets Subject To Periodic Amortization On Straight Line Basis

Other intangible assets are subject to periodic amortization on a straight-line basis over their estimated useful lives as follows:



Intangible Asset		Useful Life (years)
Permits		15 - 40
Utility contracts		5
Leases		4.5 - 17.5

Reimbursements Revenue Disclosure

The following table is a summary of reimbursements in our U.S. Iron Ore operations for the years ended December 31, 2012, 2011 and 2010:



	(In Millions)
	Year Ended December 31,
	2012		2011		2010
Reimbursements for:
Freight	$	142.0	$	128.4	$	83.6
Venture partners’ cost	108.8		95.9		139.8
Total reimbursements	$	250.8	$	224.3	$	223.4

U.S. Iron Ore and Eastern Canadian Iron Ore [Member]

Segment Reporting Information [Line Items]

Depreciation Methods and Useful Lives

Depreciation is provided over the following estimated useful lives:



Asset Class	Basis	Life
Buildings	Straight line	45 Years
Mining equipment	Straight line/Double declining balance	10 to 20 Years
Processing equipment	Straight line	15 to 45 Years
Information technology	Straight line	2 to 7 Years

Asia Pacific Iron Ore [Member]

Segment Reporting Information [Line Items]

Depreciation Methods and Useful Lives

Depreciation is calculated by the straight-line method or production output basis, not to exceed the mine life, provided over the following estimated useful lives:



Asset Class	Basis	Life
Plant and equipment	Straight line	5 to 10 Years
Plant and equipment and mine assets	Production output	10 Years
Motor vehicles, furniture & equipment	Straight line	3 to 5 Years

North American Coal [Member]

Segment Reporting Information [Line Items]

Depreciation Methods and Useful Lives

Depreciation is provided over the following estimated useful lives:



Asset Class	Basis	Life
Buildings	Straight line	30 Years
Mining equipment	Straight line	2 to 22 Years
Processing equipment	Straight line	2 to 30 Years
Information technology	Straight line	2 to 3 Years

- Definition

Tabular disclosure of equity method investments in common stock. The disclosure may include: (a) the name of each investee or group of investments for which combined disclosure is appropriate, (2) the percentage ownership of common stock, (3) the difference, if any, between the carrying amount of an investment and the value of the underlying equity in the net assets and the accounting treatment of difference, if any, and (4) the aggregate value of each identified investment based on its quoted market price, if available.

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