Annual report pursuant to Section 13 and 15(d)

LEASE OBLIGATIONS

v3.3.1.900
LEASE OBLIGATIONS
 12 Months Ended
Dec. 31, 2015
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 $12.0 million, $17.8 million and $23.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. Capital lease assets were $32.5 million and $72.7 million at December 31, 2015 and 2014, respectively. In 2014 we had impairment charges of $64.0 million on our capital lease assets at our Asia Pacific Iron Ore operations. Corresponding accumulated amortization of capital leases included in respective allowances for depreciation were $8.7 million and $14.9 million at December 31, 2015 and 2014, respectively.
Future minimum payments under capital leases and non-cancellable operating leases at December 31, 2015 are as follows:
 
(In Millions)
 
Capital Leases
 
Operating Leases
2016
$
24.3

 
$
8.4

2017
22.3

 
7.2

2018
18.0

 
6.5

2019
10.0

 
4.8

2020
9.0

 
4.9

2021 and thereafter
9.0

 
5.0

Total minimum lease payments
$
92.6

 
$
36.8

Amounts representing interest
18.5

 
 
Present value of net minimum lease payments
$
74.1

(1) 
 
                                         
(1) 
The total is comprised of $17.9 million and $56.2 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Consolidated Financial Position at December 31, 2015.