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

6 Months Ended

Jun. 30, 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 $2.2 million and $4.6 million for the three and six months ended June 30, 2016, compared with $2.0 million and $6.3 million for the same period in 2015.

Future minimum payments under capital leases and non-cancellable operating leases at June 30, 2016 are as follows:



	(In Millions)
	Capital Leases			Operating Leases
2016 (July 1 - December 31)	$	12.4		$	4.6
2017	22.8			8.9
2018	18.4			7.5
2019	10.2			4.9
2020	9.2			4.9
2021 and thereafter	9.3			5.0
Total minimum lease payments	$	82.3		$	35.8
Amounts representing interest	15.4
Present value of net minimum lease payments	$	66.9	⁽¹⁾


⁽¹⁾	The total is comprised of $18.2 million and $48.7 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at June 30, 2016.