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, 2016

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 $2.4 million for the three months ended March 31, 2016, compared with $4.3 million for the same period in 2015.

Future minimum payments under capital leases and non-cancellable operating leases at March 31, 2016 are as follows:



	(In Millions)
	Capital Leases			Operating Leases
2016 (April 1 - December 31)	$	19.1		$	5.9
2017	23.3			7.3
2018	18.9			6.6
2019	10.4			4.8
2020	9.5			4.9
2021 and thereafter	9.5			5.0
Total minimum lease payments	$	90.7		$	34.5
Amounts representing interest	17.5
Present value of net minimum lease payments	$	73.2	⁽¹⁾


⁽¹⁾	The total is comprised of $18.9 million and $54.3 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at March 31, 2016.