Cleveland-Cliffs Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

LEASE OBLIGATIONS

LEASE OBLIGATIONS

3 Months Ended

Mar. 31, 2015

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 $4.3 million for the three months ended March 31, 2015, respectively, compared with $6.2 million for the same respective period in 2014.

Future minimum payments under capital leases and non-cancellable operating leases at March 31, 2015 are as follows:



	(In Millions)
	Capital Leases			Operating Leases
2015 (April 1 - December 31)	$	20.5		$	7.5
2016	25.8			7.9
2017	22.8			7.3
2018	18.4			6.6
2019	10.0			4.8
2020 and thereafter	18.8			9.9
Total minimum lease payments	$	116.3		$	44.0
Amounts representing interest	25.1
Present value of net minimum lease payments	$	91.2	⁽¹⁾


⁽¹⁾	The total is comprised of $19.5 million and $71.7 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at March 31, 2015.

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

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