Annual report pursuant to Section 13 and 15(d)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

v3.6.0.2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
ACCUMLATED OTHER COMPREHENSIVE INCOME (LOSS)
NOTE 16 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The components of Accumulated other comprehensive loss within Cliffs shareholders’ deficit and related tax effects allocated to each are shown below as of December 31, 2016, 2015 and 2014:
 
(In Millions)
 
Pre-tax
Amount
 
Tax
Benefit
(Provision)
 
After-tax
Amount
As of December 31, 2014:
 
 
 
 
 
Postretirement benefit liability
$
(425.3
)
 
$
134.2

 
$
(291.1
)
Foreign currency translation adjustments
64.4

 
—

 
64.4

Unrealized net loss on derivative financial instruments
(25.9
)
 
7.8

 
(18.1
)
Unrealized gain (loss) on securities
(1.3
)
 
0.3

 
(1.0
)
 
$
(388.1
)
 
$
142.3

 
$
(245.8
)
As of December 31, 2015:
 
 
 
 
 
Postretirement benefit liability
$
(364.8
)
 
$
123.4

 
$
(241.4
)
Foreign currency translation adjustments
220.7

 
—

 
220.7

Unrealized net gain on derivative financial instruments
2.2

 
0.4

 
2.6

Unrealized gain on securities
0.1

 
—

 
0.1

 
$
(141.8
)
 
$
123.8

 
$
(18.0
)
As of December 31, 2016:
 
 
 
 
 
Postretirement benefit liability
$
(384.0
)
 
$
123.4

 
$
(260.6
)
Foreign currency translation adjustments
239.3

 
—

 
239.3

 
$
(144.7
)
 
$
123.4

 
$
(21.3
)

The following tables reflect the changes in Accumulated other comprehensive loss related to Cliffs shareholders’ equity for December 31, 2016, 2015 and 2014:
 
(In Millions)
 
Postretirement Benefit Liability, net of tax
 
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, 2015
$
(241.4
)
 
$
0.1

 
$
220.7

 
$
2.6

 
$
(18.0
)
Other comprehensive income (loss) before reclassifications
(44.8
)
 
(0.1
)
 
18.4

 
(3.3
)
 
(29.8
)
Net loss reclassified from accumulated other comprehensive income (loss)
25.6

 
—

 
0.2

 
0.7

 
26.5

Balance December 31, 2016
$
(260.6
)
 
$
—

 
$
239.3

 
$
—

 
$
(21.3
)
 
(In Millions)
 
Postretirement Benefit Liability, net of tax
 
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, 2014
$
(291.1
)
 
$
(1.0
)
 
$
64.4

 
$
(18.1
)
 
$
(245.8
)
Other comprehensive income (loss) before reclassifications
9.1

 
5.4

 
(26.4
)
 
1.9

 
(10.0
)
Net loss (gain) reclassified from accumulated other comprehensive income (loss)
40.6

 
(4.3
)
 
182.7

 
18.8

 
237.8

Balance December 31, 2015
$
(241.4
)
 
$
0.1

 
$
220.7

 
$
2.6

 
$
(18.0
)
 
(In Millions)
 
Postretirement Benefit Liability, net of tax
 
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
(97.0
)
 
1.3

 
(42.3
)
 
(28.2
)
 
(166.2
)
Net loss (gain) reclassified from accumulated other comprehensive income (loss)
10.8

 
(8.5
)
 
—

 
31.0

 
33.3

Balance December 31, 2014
$
(291.1
)
 
$
(1.0
)
 
$
64.4

 
$
(18.1
)
 
$
(245.8
)

The following table reflects the details about Accumulated other comprehensive loss components related to Cliffs shareholders’ equity for the years ended December 31, 2016, 2015 and 2014:
 
 
(In Millions)
 
 
Details about Accumulated Other Comprehensive Income (Loss) Components
 
Amount of (Gain)/Loss Reclassified into Income
 
Affected Line Item in the Statement of Consolidated Operations
 
 
Year Ended
December 31, 2016
 
Year Ended
December 31, 2015
 
Year Ended
December 31, 2014
 
 
Amortization of Pension and Postretirement Benefit Liability:
 
 
 
 
 
 
 
 
Prior service costs1
 
$
(1.5
)
 
$
(1.4
)
 
$
(1.1
)
 
 
Net actuarial loss1
 
27.1

 
27.4

 
18.5

 
 
Curtailments/Settlements1
 
—

 
0.2

 
1.4

 
 
Effect of deconsolidation2
 
—

 
15.1

 
—

 
Loss from Discontinued Operations, net of tax
 
 
25.6

 
41.3

 
18.8

 
Total before taxes
 
 
—

 
(0.7
)
 
(5.8
)
 
Income tax benefit (expense)
 
 
$
25.6

 
$
40.6

 
$
13.0

 
Net of taxes
 
 
 
 
 
 
 
 
 
Unrealized loss on marketable securities:
 
 
 
 
 
 
 
 
Sale of marketable securities
 
$
—

 
$
(2.6
)
 
$
(11.4
)
 
Other non-operating income (expense)
Impairment
 
—

 
(2.0
)
 
(0.5
)
 
Other non-operating income (expense)
 
 
—

 
(4.6
)
 
(11.9
)
 
Total before taxes
 
 
—

 
0.3

 
3.4

 
Income tax benefit (expense)
 
 
$
—

 
$
(4.3
)
 
$
(8.5
)
 
Net of taxes
 
 
 
 
 
 
 
 
 
Unrealized gain on foreign currency translation:
 
 
 
 
 
 
 
 
Dissolution of entity
 
$
0.2

 
$
—

 
$
—

 
Other non-operating income (expense)
Effect of deconsolidation3
 
—

 
182.7

 
—

 
Loss from Discontinued Operations, net of tax
 
 
$
0.2

 
$
182.7

 
$
—

 
Net of taxes
 
 
 
 
 
 
 
 
 
Unrealized gain on derivative financial instruments:
 
 
 
 
 
 
 
 
Treasury lock
 
$
1.2

 
$
—

 
$
—

 
Gain on extinguishment/restructuring of debt
Australian dollar foreign exchange contracts
 
—

 
26.9

 
18.9

 
Product revenues
Canadian dollar foreign exchange contracts
 
—

 
—

 
26.7

 
Cost of goods sold and operating expenses
 
 
1.2

 
26.9

 
45.6

 
Total before taxes
 
 
(0.5
)
 
(8.1
)
 
(14.6
)
 
Income tax benefit (expense)
 
 
$
0.7

 
$
18.8

 
$
31.0

 
Net of taxes
 
 
 
 
 
 
 
 
 
Total Reclassifications for the Period
 
$
26.5

 
$
237.8

 
$
35.5

 
 
 
 
 
 
 
 
 
 
 
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.
2 Represents Canadian postretirement benefit liabilities that were deconsolidated. See NOTE 14 - DISCONTINUED OPERATIONS for further information.
3 Represents Canadian accumulated currency translation adjustments that were deconsolidated. See NOTE 14 - DISCONTINUED OPERATIONS for further information.