| SHAREHOLDERS' EQUITY |
NOTE 16 - SHAREHOLDERS' EQUITY (DEFICIT)
The following table reflects the changes in shareholders' equity (deficit) attributable to both Cliffs and the noncontrolling interests primarily related to Bloom Lake, Tilden and Empire of which Cliffs owns 82.8 percent, 85 percent and 79 percent, respectively, for the six months ended June 30, 2015 and June 30, 2014:
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(In Millions) |
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Cliffs
Shareholders’
Equity (Deficit)
|
|
Noncontrolling
Interest (Deficit)
|
|
Total Equity (Deficit) |
December 31, 2014 |
$ |
(1,431.3 |
) |
|
$ |
(303.0 |
) |
|
$ |
(1,734.3 |
) |
Comprehensive income |
|
|
|
|
|
Net income (loss) |
(699.6 |
) |
|
3.1 |
|
|
(696.5 |
) |
Other comprehensive income (loss) |
216.9 |
|
|
(10.0 |
) |
|
206.9 |
|
Total comprehensive loss |
(482.7 |
) |
|
(6.9 |
) |
|
(489.6 |
) |
Effect of deconsolidation |
— |
|
|
528.2 |
|
|
528.2 |
|
Stock and other incentive plans |
3.0 |
|
|
— |
|
|
3.0 |
|
Preferred share dividends |
(12.8 |
) |
|
— |
|
|
(12.8 |
) |
Distributions to noncontrolling interest |
— |
|
|
(34.7 |
) |
|
(34.7 |
) |
June 30, 2015 |
$ |
(1,923.8 |
) |
|
$ |
183.6 |
|
|
$ |
(1,740.2 |
) |
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(In Millions) |
|
Cliffs
Shareholders’
Equity (Deficit) |
|
Noncontrolling
Interest (Deficit) |
|
Total Equity (Deficit) |
December 31, 2013 |
$ |
6,069.5 |
|
|
$ |
814.8 |
|
|
$ |
6,884.3 |
|
Comprehensive income |
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|
|
Net income (loss) |
(59.4 |
) |
|
3.2 |
|
|
(56.2 |
) |
Other comprehensive income |
92.7 |
|
|
1.1 |
|
|
93.8 |
|
Total comprehensive income |
33.3 |
|
|
4.3 |
|
|
37.6 |
|
Stock and other incentive plans |
(3.1 |
) |
|
— |
|
|
(3.1 |
) |
Common and preferred share dividends |
(72.1 |
) |
|
— |
|
|
(72.1 |
) |
Undistributed losses to noncontrolling interest |
— |
|
|
(17.1 |
) |
|
(17.1 |
) |
June 30, 2014 |
$ |
6,027.6 |
|
|
$ |
802.0 |
|
|
$ |
6,829.6 |
|
The following table reflects the changes in Accumulated other comprehensive income (loss) related to Cliffs shareholders’ equity for June 30, 2015 and June 30, 2014:
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(In Millions) |
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Changes in Pension and Other Post-Retirement Benefits, net of tax |
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Unrealized Net Gain (Loss) on Securities, net of tax |
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Unrealized Net Gain (Loss) on Foreign Currency Translation |
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Net Unrealized Gain (Loss) on Derivative Financial Instruments, net of tax |
|
Accumulated Other Comprehensive Income (Loss) |
Balance December 31, 2014 |
$ |
(291.1 |
) |
|
$ |
(1.0 |
) |
|
$ |
64.4 |
|
|
$ |
(18.1 |
) |
|
$ |
(245.8 |
) |
Other comprehensive income (loss) before reclassifications |
9.3 |
|
|
2.8 |
|
|
(14.7 |
) |
|
(7.1 |
) |
|
(9.7 |
) |
Net loss (gain) reclassified from accumulated other comprehensive income (loss) |
30.3 |
|
|
(2.0 |
) |
|
182.7 |
|
|
6.3 |
|
|
217.3 |
|
Balance March 31, 2015 |
$ |
(251.5 |
) |
|
$ |
(0.2 |
) |
|
$ |
232.4 |
|
|
$ |
(18.9 |
) |
|
$ |
(38.2 |
) |
Other comprehensive income before reclassifications |
1.3 |
|
|
1.0 |
|
|
1.2 |
|
|
0.5 |
|
|
4.0 |
|
Net loss (gain) reclassified from accumulated other comprehensive income (loss) |
(1.6 |
) |
|
(0.9 |
) |
|
— |
|
|
7.8 |
|
|
5.3 |
|
Balance June 30, 2015 |
$ |
(251.8 |
) |
|
$ |
(0.1 |
) |
|
$ |
233.6 |
|
|
$ |
(10.6 |
) |
|
$ |
(28.9 |
) |
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(In Millions) |
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Changes in Pension and Other Post-Retirement Benefits, net of tax |
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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) |
Balance December 31, 2013 |
$ |
(204.9 |
) |
|
$ |
6.2 |
|
|
$ |
106.7 |
|
|
$ |
(20.9 |
) |
|
$ |
(112.9 |
) |
Other comprehensive income (loss) before reclassifications |
(0.4 |
) |
|
3.8 |
|
|
40.5 |
|
|
(2.3 |
) |
|
41.6 |
|
Net loss reclassified from accumulated other comprehensive income (loss) |
3.3 |
|
|
0.1 |
|
|
— |
|
|
12.8 |
|
|
16.2 |
|
Balance March 31, 2014 |
$ |
(202.0 |
) |
|
$ |
10.1 |
|
|
$ |
147.2 |
|
|
$ |
(10.4 |
) |
|
$ |
(55.1 |
) |
Other comprehensive income (loss) before reclassifications |
(1.4 |
) |
|
(2.4 |
) |
|
19.7 |
|
|
9.7 |
|
|
25.6 |
|
Net loss (gain) reclassified from accumulated other comprehensive income (loss) |
4.0 |
|
|
(1.3 |
) |
|
— |
|
|
6.6 |
|
|
9.3 |
|
Balance June 30, 2014 |
$ |
(199.4 |
) |
|
$ |
6.4 |
|
|
$ |
166.9 |
|
|
$ |
5.9 |
|
|
$ |
(20.2 |
) |
The following table reflects the details about Accumulated other comprehensive income (loss) components related to Cliffs shareholders’ equity for the three and six months ended June 30, 2015:
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(In Millions) |
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Details about Accumulated Other Comprehensive Income (Loss) Components |
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Amount of (Gain)/Loss Reclassified into Income |
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Affected Line Item in the Statement of Unaudited Condensed Consolidated Operations |
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2015 |
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2014 |
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2015 |
|
2014 |
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Amortization of pension and postretirement benefit liability: |
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Prior service costs (1)
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$ |
(0.3 |
) |
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$ |
(0.3 |
) |
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$ |
(0.6 |
) |
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$ |
(0.6 |
) |
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Net actuarial loss (1)
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5.4 |
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|
4.7 |
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|
13.9 |
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|
9.6 |
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Settlements/curtailments (1)
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— |
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|
0.9 |
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0.3 |
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1.2 |
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Effect of deconsolidation (2)
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(6.7 |
) |
|
— |
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|
15.1 |
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|
— |
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Income (Loss) from Discontinued Operations, net of tax |
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(1.6 |
) |
|
5.3 |
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|
28.7 |
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|
10.2 |
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Total before taxes |
|
|
— |
|
|
(1.3 |
) |
|
— |
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|
(2.9 |
) |
|
Income tax benefit (expense) |
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|
$ |
(1.6 |
) |
|
$ |
4.0 |
|
|
$ |
28.7 |
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$ |
7.3 |
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Net of taxes |
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Unrealized gain (loss) on marketable securities: |
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Sale of marketable securities |
|
$ |
— |
|
|
$ |
(1.9 |
) |
|
$ |
— |
|
|
$ |
(1.7 |
) |
|
Other non-operating income (expense) |
Impairment |
|
(1.2 |
) |
|
— |
|
|
(3.2 |
) |
|
— |
|
|
Other non-operating income (expense) |
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|
(1.2 |
) |
|
(1.9 |
) |
|
(3.2 |
) |
|
(1.7 |
) |
|
Total before taxes |
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|
0.3 |
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|
0.6 |
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|
0.3 |
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|
0.5 |
|
|
Income tax benefit (expense) |
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|
$ |
(0.9 |
) |
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$ |
(1.3 |
) |
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$ |
(2.9 |
) |
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$ |
(1.2 |
) |
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Net of taxes |
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Unrealized gain (loss) on foreign currency translation: |
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|
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Effect of deconsolidation (3)
|
|
$ |
— |
|
|
$ |
— |
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|
$ |
182.7 |
|
|
$ |
— |
|
|
Income (Loss) from Discontinued Operations, net of tax |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
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|
Income tax benefit (expense) |
|
|
$ |
— |
|
|
$ |
— |
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|
$ |
182.7 |
|
|
$ |
— |
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Net of taxes |
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Unrealized gain (loss) on derivative financial instruments: |
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Australian dollar foreign exchange contracts |
|
$ |
11.1 |
|
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$ |
5.3 |
|
|
$ |
20.1 |
|
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$ |
18.3 |
|
|
Product revenues |
Canadian dollar foreign exchange contracts |
|
— |
|
|
4.4 |
|
|
— |
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|
9.9 |
|
|
Cost of goods sold and operating expenses |
|
|
11.1 |
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|
9.7 |
|
|
20.1 |
|
|
28.2 |
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|
Total before taxes |
|
|
(3.3 |
) |
|
(3.1 |
) |
|
(6.0 |
) |
|
(8.8 |
) |
|
Income tax benefit (expense) |
|
|
$ |
7.8 |
|
|
$ |
6.6 |
|
|
$ |
14.1 |
|
|
$ |
19.4 |
|
|
Net of taxes |
|
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Total Reclassifications for the Period |
|
$ |
5.3 |
|
|
$ |
9.3 |
|
|
$ |
222.6 |
|
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$ |
25.5 |
|
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(1) |
These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See NOTE 7 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS for further information.
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(2) |
Represents Canadian postretirement benefit liabilities that were deconsolidated. See NOTE 14 - DISCONTINUED OPERATIONS for further information.
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(3) |
Represents Canadian accumulated currency translation adjustments that were deconsolidated. See NOTE 14 - DISCONTINUED OPERATIONS for further information.
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