Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTIES

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RELATED PARTIES
 3 Months Ended
Mar. 31, 2018
Related Party Transactions [Abstract]  
RELATED PARTIES
NOTE 17 - RELATED PARTIES
One of our four operating U.S. iron ore mines is a co-owned joint venture with companies that are integrated steel producers or their subsidiaries. We are the manager of such co-owned mine and rely on our joint venture partners to make their required capital contributions and to pay for their share of the iron ore pellets that we produce. Our joint venture partners are also our customers. The following is a summary of the mine ownership of the co-owned iron ore mine at March 31, 2018:
Mine
 
Cleveland-Cliffs Inc.
 
ArcelorMittal
 
U.S. Steel
Hibbing
 
23.0
%
 
62.3
%
 
14.7
%

Product revenues from related parties were as follows:
 
(In Millions)
 
Three Months Ended
March 31,
 
2018
 
2017
Product revenues from related parties
$
62.1

 
$
118.5

Total product revenues
$
220.7

 
$
412.8

Related party product revenue as a percent of total product revenue
28.1
%
 
28.7
%

The following table presents the classification of related party assets and liabilities in the Statements of Unaudited Condensed Consolidated Financial Position:
 
(In Millions)
 
Balance Sheet
Location
 
March 31, 2018
 
December 31, 2017
Amounts due from related parties
Accounts receivable, net
 
$
7.9

 
$
68.1

Customer supply agreements and provisional pricing agreements
Derivative assets
 
91.3

 
37.9

Amounts due to related parties
Accounts payable
 
(1.2
)
 
—

Amounts due to related parties
Partnership distribution payable
 
(44.2
)
 
(44.2
)
Amounts due to related parties
Other current liabilities
 
(0.4
)
 
(12.3
)
Amounts due to related parties
Other liabilities
 
(42.0
)
 
(41.4
)
Net amounts due from related parties
 
 
$
11.4

 
$
8.1


During 2017, our ownership interest in Empire increased to 100% as we reached an agreement to distribute the noncontrolling interest net assets of $132.7 million to ArcelorMittal, in exchange for its interest in Empire. The net assets were agreed to be distributed in three installments of $44.2 million each, the first of which was paid upon the execution of the agreement and the remaining distributions are due in August 2018 and August 2019. The remaining two outstanding installments are reflected in Partnership distribution payable and Other liabilities in the Statements of Unaudited Condensed Consolidated Financial Position as of March 31, 2018.
A supply agreement with one U.S. Iron Ore customer provides for supplemental revenue or refunds to the customer based on the average annual daily market price for hot-rolled coil steel at the time the product is consumed in the customer’s blast furnace. The supplemental pricing is characterized as a freestanding derivative. Refer to NOTE 15 - DERIVATIVE INSTRUMENTS for further information.