DISCONTINUED OPERATIONS (Tables)
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9 Months Ended |
Sep. 30, 2016 |
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| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Line Items] |
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| Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures |
The chart below provides an asset group breakout for each financial statement line impacted by discontinued operations.
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(In Millions) |
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Canadian Operations |
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North American Coal |
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Eastern Canadian Iron Ore |
Other |
Total Canadian Operations |
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Total of Discontinued Operations |
Statements of Unaudited Condensed Consolidated Operations |
Loss from Discontinued Operations, net of tax |
QTD
September 30, 2016 |
$ |
(1.8 |
) |
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$ |
(0.9 |
) |
$ |
— |
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$ |
(0.9 |
) |
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$ |
(2.7 |
) |
Loss from Discontinued Operations, net of tax |
QTD
September 30, 2015 |
$ |
(29.8 |
) |
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$ |
(14.1 |
) |
$ |
— |
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$ |
(14.1 |
) |
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$ |
(43.9 |
) |
Income (Loss) from Discontinued Operations, net of tax |
YTD
September 30, 2016 |
$ |
(3.8 |
) |
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$ |
3.2 |
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$ |
— |
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$ |
3.2 |
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$ |
(0.6 |
) |
Loss from Discontinued Operations, net of tax |
YTD
September 30, 2015 |
$ |
(137.0 |
) |
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$ |
(731.9 |
) |
$ |
(0.1 |
) |
$ |
(732.0 |
) |
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$ |
(869.0 |
) |
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Statements of Unaudited Condensed Consolidated Financial Position |
Short-term assets of discontinued operations |
As of
September 30, 2016
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Short-term liabilities of discontinued operations |
As of
September 30, 2016 |
$ |
5.5 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
5.5 |
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Short-term assets of discontinued operations |
As of
December 31, 2015
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$ |
14.9 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
14.9 |
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Short-term liabilities of discontinued operations |
As of
December 31, 2015 |
$ |
6.9 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
6.9 |
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Non-Cash Operating and Investing Activities |
Depreciation, depletion and amortization: |
YTD
September 30, 2015 |
$ |
3.2 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
3.2 |
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Purchase of property, plant and equipment |
YTD
September 30, 2015 |
$ |
13.1 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
13.1 |
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Impairment of other long-lived assets |
YTD
September 30, 2015 |
$ |
73.4 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
73.4 |
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| North American Coal [Member] |
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| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Line Items] |
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| Schedule of Disposal Groups, including Discontinued Operations, Income Statement |
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(In Millions) |
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Three Months Ended September 30, |
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Nine Months Ended
September 30, |
Loss from Discontinued Operations |
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2016 |
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2015 |
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2016 |
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2015 |
Revenues from product sales and services |
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$ |
— |
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$ |
78.8 |
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$ |
— |
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$ |
338.1 |
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Cost of goods sold and operating expenses |
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— |
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(102.9 |
) |
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— |
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(377.2 |
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Sales margin |
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— |
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(24.1 |
) |
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— |
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(39.1 |
) |
Other operating expense |
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(1.8 |
) |
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(7.4 |
) |
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(3.8 |
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(25.7 |
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Other expense |
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— |
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(0.4 |
) |
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— |
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(1.4 |
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Loss from discontinued operations before income taxes |
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(1.8 |
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(31.9 |
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(3.8 |
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(66.2 |
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Impairment of long-lived assets |
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— |
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— |
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— |
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(73.4 |
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Income tax benefit |
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— |
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2.1 |
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— |
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2.6 |
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Loss from discontinued operations, net of tax |
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$ |
(1.8 |
) |
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$ |
(29.8 |
) |
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$ |
(3.8 |
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$ |
(137.0 |
) |
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| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities |
Recorded Assets and Liabilities
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(In Millions) |
Assets and Liabilities of Discontinued Operations(1)
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September 30,
2016 |
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December 31,
2015 |
Other current assets |
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$ |
— |
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$ |
14.9 |
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Total assets of discontinued operations |
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$ |
— |
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$ |
14.9 |
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Accrued liabilities |
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$ |
1.2 |
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$ |
— |
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Other current liabilities(1)
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4.3 |
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6.9 |
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Total liabilities of discontinued operations |
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$ |
5.5 |
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$ |
6.9 |
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(1) At September 30, 2016 and December 31, 2015, we had $4.0 million and $7.8 million, respectively, of contingent liabilities associated with our exit from the coal business recorded on our parent company.
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| Canadian Entities [Member] |
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| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Line Items] |
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| Schedule of Disposal Groups, including Discontinued Operations, Income Statement |
Loss) on Discontinued Operations
Our decision in 2015 to exit Canada represented a strategic shift in our business. For this reason, our previously reported Eastern Canadian Iron Ore and Ferroalloys operating segment results for all periods prior to the respective 2015 deconsolidations as well as costs to exit are classified as discontinued operations.
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(In Millions) |
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Three Months Ended
September 30, |
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Nine Months Ended
September 30,
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Gain (Loss) from Discontinued Operations |
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2016 |
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2015 |
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2016 |
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2015 |
Revenues from product sales and services |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
11.3 |
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Cost of goods sold and operating expenses |
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— |
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— |
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— |
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(11.1 |
) |
Sales margin |
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— |
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— |
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— |
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0.2 |
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Other operating expense |
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— |
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— |
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— |
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(33.8 |
) |
Other expense |
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— |
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— |
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— |
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(1.0 |
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Loss from discontinued operations before income taxes |
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— |
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— |
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— |
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(34.6 |
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Gain (loss) from deconsolidation |
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(0.9 |
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(13.4 |
) |
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3.2 |
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(697.4 |
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Income tax expense |
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— |
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(0.7 |
) |
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— |
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— |
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Gain (loss) from discontinued operations, net of tax |
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$ |
(0.9 |
) |
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$ |
(14.1 |
) |
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$ |
3.2 |
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$ |
(732.0 |
) |
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| PreTax Exit Costs |
Canadian Entities loss from deconsolidation totaled $0.9 million and gain from deconsolidation totaled $3.2 million for the three and nine months ended September 30, 2016, respectively, which included the following:
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(In Millions) |
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2016 |
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2015 |
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2016 |
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2015 |
Investment impairment on deconsolidation1
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$ |
(0.9 |
) |
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$ |
(13.9 |
) |
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$ |
3.2 |
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$ |
(494.3 |
) |
Contingent liabilities |
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— |
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0.5 |
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— |
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(203.1 |
) |
Total gain (loss) from deconsolidation |
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$ |
(0.9 |
) |
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$ |
(13.4 |
) |
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$ |
3.2 |
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$ |
(697.4 |
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1 Includes the adjustment to fair value of our remaining interest in the Canadian Entities.
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| Discontinued Operations, Items Measured at Fair Value on a Non-Recurring Basis |
Items Measured at Fair Value on a Non-Recurring Basis
The following table presents information about the financial assets and liabilities that were measured on a fair value basis at September 30, 2016 for the Canadian Operations. The table also indicates the fair value hierarchy of the valuation techniques used to determine such fair value.
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(In Millions) |
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September 30, 2016 |
Description |
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Quoted Prices in Active
Markets for Identical Assets/
Liabilities
(Level 1)
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Significant Other Observable Inputs
(Level 2)
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Significant Unobservable Inputs
(Level 3)
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Total |
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Total Gains |
Assets: |
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Loans to and accounts receivables from the Canadian Entities |
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$ |
— |
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$ |
— |
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$ |
69.3 |
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$ |
69.3 |
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$ |
3.2 |
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Liabilities: |
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Contingent liabilities |
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$ |
— |
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$ |
— |
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$ |
38.1 |
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$ |
38.1 |
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$ |
— |
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