| Schedule of Supplemental Condensed Consolidating Financial Position |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidating Statement of Financial Position |
As of June 30, 2018 |
(In Millions) |
|
Cleveland-Cliffs Inc. |
|
Guarantor Subsidiaries |
|
Non-Guarantor Subsidiaries |
|
Eliminations |
|
Consolidated |
ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
798.4 |
|
|
$ |
1.6 |
|
|
$ |
2.5 |
|
|
$ |
— |
|
|
$ |
802.5 |
|
Accounts receivable, net |
8.0 |
|
|
148.2 |
|
|
0.1 |
|
|
(3.7 |
) |
|
152.6 |
|
Inventories |
— |
|
|
256.4 |
|
|
— |
|
|
— |
|
|
256.4 |
|
Supplies and other inventories |
— |
|
|
88.6 |
|
|
— |
|
|
— |
|
|
88.6 |
|
Derivative assets |
0.1 |
|
|
174.6 |
|
|
— |
|
|
— |
|
|
174.7 |
|
Current assets of discontinued operations |
— |
|
|
— |
|
|
45.3 |
|
|
— |
|
|
45.3 |
|
Other current assets |
15.9 |
|
|
7.7 |
|
|
3.2 |
|
|
— |
|
|
26.8 |
|
TOTAL CURRENT ASSETS |
822.4 |
|
|
677.1 |
|
|
51.1 |
|
|
(3.7 |
) |
|
1,546.9 |
|
PROPERTY, PLANT AND EQUIPMENT, NET |
15.5 |
|
|
966.2 |
|
|
99.6 |
|
|
— |
|
|
1,081.3 |
|
OTHER ASSETS |
|
|
|
|
|
|
|
|
|
Deposits for property, plant and equipment |
— |
|
|
3.8 |
|
|
81.9 |
|
|
— |
|
|
85.7 |
|
Income tax receivable |
219.9 |
|
|
— |
|
|
— |
|
|
— |
|
|
219.9 |
|
Investment in subsidiaries |
1,299.9 |
|
|
32.8 |
|
|
— |
|
|
(1,332.7 |
) |
|
— |
|
Long-term intercompany notes |
— |
|
|
— |
|
|
227.4 |
|
|
(227.4 |
) |
|
— |
|
Other non-current assets |
8.7 |
|
|
107.3 |
|
|
1.7 |
|
|
— |
|
|
117.7 |
|
TOTAL OTHER ASSETS |
1,528.5 |
|
|
143.9 |
|
|
311.0 |
|
|
(1,560.1 |
) |
|
423.3 |
|
TOTAL ASSETS |
$ |
2,366.4 |
|
|
$ |
1,787.2 |
|
|
$ |
461.7 |
|
|
$ |
(1,563.8 |
) |
|
$ |
3,051.5 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
5.2 |
|
|
$ |
88.8 |
|
|
$ |
28.7 |
|
|
$ |
(3.7 |
) |
|
$ |
119.0 |
|
Accrued expenses |
13.6 |
|
|
71.0 |
|
|
0.5 |
|
|
— |
|
|
85.1 |
|
Accrued interest |
43.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
43.1 |
|
Partnership distribution payable |
— |
|
|
44.2 |
|
|
— |
|
|
— |
|
|
44.2 |
|
Current liabilities of discontinued operations |
— |
|
|
— |
|
|
117.3 |
|
|
— |
|
|
117.3 |
|
Other current liabilities |
1.8 |
|
|
62.7 |
|
|
1.7 |
|
|
— |
|
|
66.2 |
|
TOTAL CURRENT LIABILITIES |
63.7 |
|
|
266.7 |
|
|
148.2 |
|
|
(3.7 |
) |
|
474.9 |
|
PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES |
65.9 |
|
|
428.4 |
|
|
(249.3 |
) |
|
— |
|
|
245.0 |
|
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS |
— |
|
|
145.3 |
|
|
27.0 |
|
|
— |
|
|
172.3 |
|
LONG-TERM DEBT |
2,297.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,297.0 |
|
NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS |
— |
|
|
— |
|
|
10.3 |
|
|
— |
|
|
10.3 |
|
LONG-TERM INTERCOMPANY NOTES |
227.4 |
|
|
— |
|
|
— |
|
|
(227.4 |
) |
|
— |
|
OTHER LIABILITIES |
18.7 |
|
|
139.0 |
|
|
0.6 |
|
|
— |
|
|
158.3 |
|
TOTAL LIABILITIES |
2,672.7 |
|
|
979.4 |
|
|
(63.2 |
) |
|
(231.1 |
) |
|
3,357.8 |
|
EQUITY |
|
|
|
|
|
|
|
|
|
TOTAL CLIFFS SHAREHOLDERS' DEFICIT |
(306.3 |
) |
|
807.8 |
|
|
524.9 |
|
|
(1,332.7 |
) |
|
(306.3 |
) |
TOTAL DEFICIT |
(306.3 |
) |
|
807.8 |
|
|
524.9 |
|
|
(1,332.7 |
) |
|
(306.3 |
) |
TOTAL LIABILITIES AND DEFICIT |
$ |
2,366.4 |
|
|
$ |
1,787.2 |
|
|
$ |
461.7 |
|
|
$ |
(1,563.8 |
) |
|
$ |
3,051.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidating Statement of Financial Position |
As of December 31, 2017 |
(In Millions) |
|
Cleveland-Cliffs Inc. |
|
Guarantor Subsidiaries |
|
Non-Guarantor Subsidiaries |
|
Eliminations |
|
Consolidated |
ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
948.9 |
|
|
$ |
2.1 |
|
|
$ |
27.3 |
|
|
$ |
— |
|
|
$ |
978.3 |
|
Accounts receivable, net |
4.5 |
|
|
102.9 |
|
|
— |
|
|
(0.7 |
) |
|
106.7 |
|
Inventories |
— |
|
|
138.4 |
|
|
— |
|
|
— |
|
|
138.4 |
|
Supplies and other inventories |
— |
|
|
88.8 |
|
|
— |
|
|
— |
|
|
88.8 |
|
Derivative assets |
— |
|
|
37.9 |
|
|
— |
|
|
— |
|
|
37.9 |
|
Current assets of discontinued operations |
— |
|
|
— |
|
|
118.5 |
|
|
— |
|
|
118.5 |
|
Loans to and accounts receivable from the Canadian Entities |
44.7 |
|
|
6.9 |
|
|
— |
|
|
— |
|
|
51.6 |
|
Other current assets |
16.4 |
|
|
7.5 |
|
|
0.5 |
|
|
— |
|
|
24.4 |
|
TOTAL CURRENT ASSETS |
1,014.5 |
|
|
384.5 |
|
|
146.3 |
|
|
(0.7 |
) |
|
1,544.6 |
|
PROPERTY, PLANT AND EQUIPMENT, NET |
17.5 |
|
|
959.0 |
|
|
57.3 |
|
|
— |
|
|
1,033.8 |
|
OTHER ASSETS |
|
|
|
|
|
|
|
|
|
Deposits for property, plant and equipment |
— |
|
|
1.3 |
|
|
16.5 |
|
|
— |
|
|
17.8 |
|
Income tax receivable |
235.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
235.3 |
|
Non-current assets of discontinued operations |
— |
|
|
— |
|
|
20.3 |
|
|
— |
|
|
20.3 |
|
Investment in subsidiaries |
1,024.3 |
|
|
29.9 |
|
|
— |
|
|
(1,054.2 |
) |
|
— |
|
Long-term intercompany notes |
— |
|
|
— |
|
|
242.0 |
|
|
(242.0 |
) |
|
— |
|
Other non-current assets |
7.8 |
|
|
91.7 |
|
|
2.1 |
|
|
— |
|
|
101.6 |
|
TOTAL OTHER ASSETS |
1,267.4 |
|
|
122.9 |
|
|
280.9 |
|
|
(1,296.2 |
) |
|
375.0 |
|
TOTAL ASSETS |
$ |
2,299.4 |
|
|
$ |
1,466.4 |
|
|
$ |
484.5 |
|
|
$ |
(1,296.9 |
) |
|
$ |
2,953.4 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
7.1 |
|
|
$ |
89.7 |
|
|
$ |
3.4 |
|
|
$ |
(0.7 |
) |
|
$ |
99.5 |
|
Accrued expenses |
19.0 |
|
|
59.9 |
|
|
0.2 |
|
|
— |
|
|
79.1 |
|
Accrued interest |
31.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
31.4 |
|
Contingent claims |
55.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
55.6 |
|
Partnership distribution payable |
— |
|
|
44.2 |
|
|
— |
|
|
— |
|
|
44.2 |
|
Current liabilities of discontinued operations |
— |
|
|
— |
|
|
75.0 |
|
|
— |
|
|
75.0 |
|
Other current liabilities |
2.1 |
|
|
63.5 |
|
|
1.8 |
|
|
— |
|
|
67.4 |
|
TOTAL CURRENT LIABILITIES |
115.2 |
|
|
257.3 |
|
|
80.4 |
|
|
(0.7 |
) |
|
452.2 |
|
PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES |
66.4 |
|
|
430.6 |
|
|
(239.3 |
) |
|
— |
|
|
257.7 |
|
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS |
— |
|
|
140.6 |
|
|
27.1 |
|
|
— |
|
|
167.7 |
|
LONG-TERM DEBT |
2,304.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,304.2 |
|
NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS |
— |
|
|
— |
|
|
52.2 |
|
|
— |
|
|
52.2 |
|
LONG-TERM INTERCOMPANY NOTES |
242.0 |
|
|
— |
|
|
— |
|
|
(242.0 |
) |
|
— |
|
OTHER LIABILITIES |
15.7 |
|
|
147.2 |
|
|
0.6 |
|
|
— |
|
|
163.5 |
|
TOTAL LIABILITIES |
2,743.5 |
|
|
975.7 |
|
|
(79.0 |
) |
|
(242.7 |
) |
|
3,397.5 |
|
EQUITY |
|
|
|
|
|
|
|
|
|
TOTAL CLIFFS SHAREHOLDERS' DEFICIT |
(444.1 |
) |
|
490.7 |
|
|
563.3 |
|
|
(1,054.2 |
) |
|
(444.3 |
) |
NONCONTROLLING INTEREST |
— |
|
|
— |
|
|
0.2 |
|
|
— |
|
|
0.2 |
|
TOTAL DEFICIT |
(444.1 |
) |
|
490.7 |
|
|
563.5 |
|
|
(1,054.2 |
) |
|
(444.1 |
) |
TOTAL LIABILITIES AND DEFICIT |
$ |
2,299.4 |
|
|
$ |
1,466.4 |
|
|
$ |
484.5 |
|
|
$ |
(1,296.9 |
) |
|
$ |
2,953.4 |
|
|
| Schedule of Supplemental Statements of Condensed Consolidating Operations and Comprehensive Income (Loss) |
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidating Statement of Operations and Comprehensive Income |
For the Three Months Ended June 30, 2018 |
(In Millions) |
|
Cleveland-Cliffs Inc. |
|
Guarantor Subsidiaries |
|
Non-Guarantor Subsidiaries |
|
Eliminations |
|
Consolidated |
REVENUES FROM PRODUCT SALES AND SERVICES |
|
|
|
|
|
|
|
|
|
Product |
$ |
— |
|
|
$ |
672.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
672.0 |
|
Freight and venture partners' cost reimbursements |
— |
|
|
42.3 |
|
|
— |
|
|
— |
|
|
42.3 |
|
|
— |
|
|
714.3 |
|
|
— |
|
|
— |
|
|
714.3 |
|
COST OF GOODS SOLD AND OPERATING EXPENSES |
— |
|
|
(429.8 |
) |
|
— |
|
|
— |
|
|
(429.8 |
) |
SALES MARGIN |
— |
|
|
284.5 |
|
|
— |
|
|
— |
|
|
284.5 |
|
OTHER OPERATING EXPENSE |
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
(19.7 |
) |
|
(5.4 |
) |
|
(1.1 |
) |
|
— |
|
|
(26.2 |
) |
Miscellaneous – net |
(0.2 |
) |
|
(3.6 |
) |
|
(0.3 |
) |
|
— |
|
|
(4.1 |
) |
|
(19.9 |
) |
|
(9.0 |
) |
|
(1.4 |
) |
|
— |
|
|
(30.3 |
) |
OPERATING INCOME (LOSS) |
(19.9 |
) |
|
275.5 |
|
|
(1.4 |
) |
|
— |
|
|
254.2 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
Interest expense, net |
(30.8 |
) |
|
(0.6 |
) |
|
0.2 |
|
|
— |
|
|
(31.2 |
) |
Gain on extinguishment of debt |
0.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.2 |
|
Other non-operating income (expense) |
(0.8 |
) |
|
0.2 |
|
|
5.0 |
|
|
— |
|
|
4.4 |
|
|
(31.4 |
) |
|
(0.4 |
) |
|
5.2 |
|
|
— |
|
|
(26.6 |
) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(51.3 |
) |
|
275.1 |
|
|
3.8 |
|
|
— |
|
|
227.6 |
|
INCOME TAX BENEFIT (EXPENSE) |
2.1 |
|
|
(0.1 |
) |
|
(0.2 |
) |
|
— |
|
|
1.8 |
|
EQUITY IN INCOME (LOSS) OF SUBSIDIARIES |
210.4 |
|
|
4.6 |
|
|
— |
|
|
(215.0 |
) |
|
— |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
161.2 |
|
|
279.6 |
|
|
3.6 |
|
|
(215.0 |
) |
|
229.4 |
|
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX |
3.9 |
|
|
(0.3 |
) |
|
(67.9 |
) |
|
— |
|
|
(64.3 |
) |
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS |
$ |
165.1 |
|
|
$ |
279.3 |
|
|
$ |
(64.3 |
) |
|
$ |
(215.0 |
) |
|
$ |
165.1 |
|
OTHER COMPREHENSIVE INCOME |
9.1 |
|
|
6.0 |
|
|
2.2 |
|
|
(8.2 |
) |
|
9.1 |
|
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS |
$ |
174.2 |
|
|
$ |
285.3 |
|
|
$ |
(62.1 |
) |
|
$ |
(223.2 |
) |
|
$ |
174.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) |
For the Three Months Ended June 30, 2017 |
(In Millions) |
|
Cleveland-Cliffs Inc. |
|
Guarantor Subsidiaries |
|
Non-Guarantor Subsidiaries |
|
Eliminations |
|
Consolidated |
REVENUES FROM PRODUCT SALES AND SERVICES |
|
|
|
|
|
|
|
|
|
Product |
$ |
— |
|
|
$ |
417.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
417.0 |
|
Freight and venture partners' cost reimbursements |
— |
|
|
54.3 |
|
|
— |
|
|
— |
|
|
54.3 |
|
|
— |
|
|
471.3 |
|
|
— |
|
|
— |
|
|
471.3 |
|
COST OF GOODS SOLD AND OPERATING EXPENSES |
— |
|
|
(326.6 |
) |
|
— |
|
|
— |
|
|
(326.6 |
) |
SALES MARGIN |
— |
|
|
144.7 |
|
|
— |
|
|
— |
|
|
144.7 |
|
OTHER OPERATING EXPENSE |
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
(19.7 |
) |
|
(5.7 |
) |
|
(1.2 |
) |
|
— |
|
|
(26.6 |
) |
Miscellaneous – net |
(0.8 |
) |
|
(3.7 |
) |
|
1.6 |
|
|
— |
|
|
(2.9 |
) |
|
(20.5 |
) |
|
(9.4 |
) |
|
0.4 |
|
|
— |
|
|
(29.5 |
) |
OPERATING INCOME (LOSS) |
(20.5 |
) |
|
135.3 |
|
|
0.4 |
|
|
— |
|
|
115.2 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
Interest expense, net |
(30.4 |
) |
|
— |
|
|
0.3 |
|
|
— |
|
|
(30.1 |
) |
Loss on extinguishment of debt |
(4.9 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(4.9 |
) |
Other non-operating income (expense) |
(1.0 |
) |
|
(0.8 |
) |
|
4.3 |
|
|
— |
|
|
2.5 |
|
|
(36.3 |
) |
|
(0.8 |
) |
|
4.6 |
|
|
— |
|
|
(32.5 |
) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(56.8 |
) |
|
134.5 |
|
|
5.0 |
|
|
— |
|
|
82.7 |
|
INCOME TAX BENEFIT (EXPENSE) |
8.0 |
|
|
0.8 |
|
|
(7.7 |
) |
|
— |
|
|
1.1 |
|
EQUITY IN INCOME (LOSS) OF SUBSIDIARIES |
129.6 |
|
|
3.4 |
|
|
— |
|
|
(133.0 |
) |
|
— |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
80.8 |
|
|
138.7 |
|
|
(2.7 |
) |
|
(133.0 |
) |
|
83.8 |
|
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX |
(49.0 |
) |
|
0.7 |
|
|
(5.4 |
) |
|
— |
|
|
(53.7 |
) |
NET INCOME (LOSS) |
31.8 |
|
|
139.4 |
|
|
(8.1 |
) |
|
(133.0 |
) |
|
30.1 |
|
LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST |
— |
|
|
1.7 |
|
|
— |
|
|
— |
|
|
1.7 |
|
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS |
$ |
31.8 |
|
|
$ |
141.1 |
|
|
$ |
(8.1 |
) |
|
$ |
(133.0 |
) |
|
$ |
31.8 |
|
OTHER COMPREHENSIVE INCOME (LOSS) |
5.0 |
|
|
5.7 |
|
|
(1.5 |
) |
|
(4.3 |
) |
|
4.9 |
|
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS |
$ |
36.8 |
|
|
$ |
146.8 |
|
|
$ |
(9.6 |
) |
|
$ |
(137.3 |
) |
|
$ |
36.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidating Statement of Operations and Comprehensive Income |
For the Six Months Ended June 30, 2018 |
(In Millions) |
|
Cleveland-Cliffs Inc. |
|
Guarantor Subsidiaries |
|
Non-Guarantor Subsidiaries |
|
Eliminations |
|
Consolidated |
REVENUES FROM PRODUCT SALES AND SERVICES |
|
|
|
|
|
|
|
|
|
Product |
$ |
— |
|
|
$ |
841.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
841.2 |
|
Freight and venture partners' cost reimbursements |
— |
|
|
53.1 |
|
|
— |
|
|
— |
|
|
53.1 |
|
|
— |
|
|
894.3 |
|
|
— |
|
|
— |
|
|
894.3 |
|
COST OF GOODS SOLD AND OPERATING EXPENSES |
— |
|
|
(548.3 |
) |
|
— |
|
|
— |
|
|
(548.3 |
) |
SALES MARGIN |
— |
|
|
346.0 |
|
|
— |
|
|
— |
|
|
346.0 |
|
OTHER OPERATING EXPENSE |
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
(39.8 |
) |
|
(9.7 |
) |
|
(1.8 |
) |
|
— |
|
|
(51.3 |
) |
Miscellaneous – net |
(0.4 |
) |
|
(8.9 |
) |
|
(0.9 |
) |
|
— |
|
|
(10.2 |
) |
|
(40.2 |
) |
|
(18.6 |
) |
|
(2.7 |
) |
|
— |
|
|
(61.5 |
) |
OPERATING INCOME |
(40.2 |
) |
|
327.4 |
|
|
(2.7 |
) |
|
— |
|
|
284.5 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
Interest expense, net |
(62.7 |
) |
|
(1.4 |
) |
|
0.5 |
|
|
— |
|
|
(63.6 |
) |
Gain on extinguishment of debt |
0.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.2 |
|
Other non-operating income (expense) |
(1.7 |
) |
|
0.7 |
|
|
9.8 |
|
|
— |
|
|
8.8 |
|
|
(64.2 |
) |
|
(0.7 |
) |
|
10.3 |
|
|
— |
|
|
(54.6 |
) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(104.4 |
) |
|
326.7 |
|
|
7.6 |
|
|
— |
|
|
229.9 |
|
INCOME TAX EXPENSE |
(13.5 |
) |
|
(0.2 |
) |
|
(0.2 |
) |
|
— |
|
|
(13.9 |
) |
EQUITY IN INCOME (LOSS) OF SUBSIDIARIES |
194.7 |
|
|
9.1 |
|
|
— |
|
|
(203.8 |
) |
|
— |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
76.8 |
|
|
335.6 |
|
|
7.4 |
|
|
(203.8 |
) |
|
216.0 |
|
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX |
4.0 |
|
|
(0.1 |
) |
|
(139.1 |
) |
|
— |
|
|
(135.2 |
) |
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS |
$ |
80.8 |
|
|
$ |
335.5 |
|
|
$ |
(131.7 |
) |
|
$ |
(203.8 |
) |
|
$ |
80.8 |
|
OTHER COMPREHENSIVE INCOME |
16.8 |
|
|
11.9 |
|
|
3.0 |
|
|
(14.9 |
) |
|
16.8 |
|
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS |
$ |
97.6 |
|
|
$ |
347.4 |
|
|
$ |
(128.7 |
) |
|
$ |
(218.7 |
) |
|
$ |
97.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) |
For the Six Months Ended June 30, 2017 |
(In Millions) |
|
Cleveland-Cliffs Inc. |
|
Guarantor Subsidiaries |
|
Non-Guarantor Subsidiaries |
|
Eliminations |
|
Consolidated |
REVENUES FROM PRODUCT SALES AND SERVICES |
|
|
|
|
|
|
|
|
|
Product |
$ |
— |
|
|
$ |
664.3 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
664.3 |
|
Freight and venture partners' cost reimbursements |
— |
|
|
93.2 |
|
|
— |
|
|
— |
|
|
93.2 |
|
|
— |
|
|
757.5 |
|
|
— |
|
|
— |
|
|
757.5 |
|
COST OF GOODS SOLD AND OPERATING EXPENSES |
— |
|
|
(563.8 |
) |
|
— |
|
|
— |
|
|
(563.8 |
) |
SALES MARGIN |
— |
|
|
193.7 |
|
|
— |
|
|
— |
|
|
193.7 |
|
OTHER OPERATING INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
(39.2 |
) |
|
(10.1 |
) |
|
(2.4 |
) |
|
— |
|
|
(51.7 |
) |
Miscellaneous – net |
(0.9 |
) |
|
(9.2 |
) |
|
16.7 |
|
|
— |
|
|
6.6 |
|
|
(40.1 |
) |
|
(19.3 |
) |
|
14.3 |
|
|
— |
|
|
(45.1 |
) |
OPERATING INCOME |
(40.1 |
) |
|
174.4 |
|
|
14.3 |
|
|
— |
|
|
148.6 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
Interest expense, net |
(72.0 |
) |
|
— |
|
|
0.5 |
|
|
— |
|
|
(71.5 |
) |
Loss on extinguishment of debt |
(76.8 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(76.8 |
) |
Other non-operating income (expense) |
(2.0 |
) |
|
(1.6 |
) |
|
8.6 |
|
|
— |
|
|
5.0 |
|
|
(150.8 |
) |
|
(1.6 |
) |
|
9.1 |
|
|
— |
|
|
(143.3 |
) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(190.9 |
) |
|
172.8 |
|
|
23.4 |
|
|
— |
|
|
5.3 |
|
INCOME TAX BENEFIT (EXPENSE) |
0.2 |
|
|
— |
|
|
(0.2 |
) |
|
— |
|
|
— |
|
EQUITY IN INCOME OF SUBSIDIARIES |
243.0 |
|
|
6.6 |
|
|
— |
|
|
(249.6 |
) |
|
— |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS |
52.3 |
|
|
179.4 |
|
|
23.2 |
|
|
(249.6 |
) |
|
5.3 |
|
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax |
(48.6 |
) |
|
0.9 |
|
|
42.7 |
|
|
— |
|
|
(5.0 |
) |
NET INCOME (LOSS) |
3.7 |
|
|
180.3 |
|
|
65.9 |
|
|
(249.6 |
) |
|
0.3 |
|
LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST |
— |
|
|
3.4 |
|
|
— |
|
|
— |
|
|
3.4 |
|
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS |
$ |
3.7 |
|
|
$ |
183.7 |
|
|
$ |
65.9 |
|
|
$ |
(249.6 |
) |
|
$ |
3.7 |
|
OTHER COMPREHENSIVE INCOME (LOSS) |
2.0 |
|
|
16.5 |
|
|
(19.3 |
) |
|
2.7 |
|
|
1.9 |
|
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS |
$ |
5.7 |
|
|
$ |
200.2 |
|
|
$ |
46.6 |
|
|
$ |
(246.9 |
) |
|
$ |
5.6 |
|
|
| Schedule of Supplemental Statements of Condensed Consolidating Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidating Statement of Cash Flows |
For the Six Months Ended June 30, 2018 |
(In Millions) |
|
Cleveland-Cliffs Inc. |
|
Guarantor Subsidiaries |
|
Non-Guarantor Subsidiaries |
|
Eliminations |
|
Consolidated |
Net cash provided (used) by operating activities |
$ |
(82.1 |
) |
|
$ |
86.8 |
|
|
$ |
(54.0 |
) |
|
$ |
— |
|
|
$ |
(49.3 |
) |
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
(0.3 |
) |
|
(24.9 |
) |
|
(16.9 |
) |
|
— |
|
|
(42.1 |
) |
Deposits for property, plant and equipment |
— |
|
|
(3.6 |
) |
|
(68.7 |
) |
|
— |
|
|
(72.3 |
) |
Intercompany investing |
(35.2 |
) |
|
(5.5 |
) |
|
14.6 |
|
|
26.1 |
|
|
— |
|
Proceeds on sale of assets |
— |
|
|
0.4 |
|
|
14.2 |
|
|
— |
|
|
14.6 |
|
Net cash used by investing activities |
(35.5 |
) |
|
(33.6 |
) |
|
(56.8 |
) |
|
26.1 |
|
|
(99.8 |
) |
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Debt issuance costs |
(1.5 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(1.5 |
) |
Repurchase of debt |
(15.3 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(15.3 |
) |
Intercompany financing |
(14.6 |
) |
|
(52.7 |
) |
|
93.4 |
|
|
(26.1 |
) |
|
— |
|
Other financing activities |
(1.5 |
) |
|
(1.0 |
) |
|
(6.4 |
) |
|
— |
|
|
(8.9 |
) |
Net cash used by financing activities |
(32.9 |
) |
|
(53.7 |
) |
|
87.0 |
|
|
(26.1 |
) |
|
(25.7 |
) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
— |
|
|
— |
|
|
(1.0 |
) |
|
— |
|
|
(1.0 |
) |
DECREASE IN CASH AND CASH EQUIVALENTS, INCLUDING CASH CLASSIFIED WITHIN CURRENT ASSETS OF DISCONTINUED OPERATIONS |
(150.5 |
) |
|
(0.5 |
) |
|
(24.8 |
) |
|
— |
|
|
(175.8 |
) |
LESS: INCREASE IN CASH AND CASH EQUIVALENTS CLASSIFIED WITHIN CURRENT ASSETS OF DISCONTINUED OPERATIONS |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
(150.5 |
) |
|
(0.5 |
) |
|
(24.8 |
) |
|
— |
|
|
(175.8 |
) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
948.9 |
|
|
2.1 |
|
|
27.3 |
|
|
— |
|
|
978.3 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
798.4 |
|
|
$ |
1.6 |
|
|
$ |
2.5 |
|
|
$ |
— |
|
|
$ |
802.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidating Statement of Cash Flows |
For the Six Months Ended June 30, 2017 |
(In Millions) |
|
Cleveland-Cliffs Inc. |
|
Guarantor Subsidiaries |
|
Non-Guarantor Subsidiaries |
|
Eliminations |
|
Consolidated |
Net cash provided (used) by operating activities |
$ |
(128.8 |
) |
|
$ |
106.3 |
|
|
$ |
90.3 |
|
|
$ |
— |
|
|
$ |
67.8 |
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
(0.8 |
) |
|
(42.7 |
) |
|
(0.8 |
) |
|
— |
|
|
(44.3 |
) |
Deposits for property, plant and equipment |
— |
|
|
(5.1 |
) |
|
— |
|
|
— |
|
|
(5.1 |
) |
Intercompany investing |
43.5 |
|
|
(1.1 |
) |
|
(45.0 |
) |
|
2.6 |
|
|
— |
|
Proceeds on sales of assets |
— |
|
|
1.1 |
|
|
— |
|
|
— |
|
|
1.1 |
|
Net cash provided (used) by investing activities |
42.7 |
|
|
(47.8 |
) |
|
(45.8 |
) |
|
2.6 |
|
|
(48.3 |
) |
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Net proceeds from issuance of common shares |
661.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
661.3 |
|
Proceeds from issuance of debt |
500.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
500.0 |
|
Debt issuance costs |
(8.5 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(8.5 |
) |
Repurchase of debt |
(1,154.0 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(1,154.0 |
) |
Distributions of partnership equity |
— |
|
|
(8.7 |
) |
|
— |
|
|
— |
|
|
(8.7 |
) |
Intercompany financing |
45.0 |
|
|
(44.3 |
) |
|
1.9 |
|
|
(2.6 |
) |
|
— |
|
Other financing activities |
(0.6 |
) |
|
(5.0 |
) |
|
(8.3 |
) |
|
— |
|
|
(13.9 |
) |
Net cash used by financing activities |
43.2 |
|
|
(58.0 |
) |
|
(6.4 |
) |
|
(2.6 |
) |
|
(23.8 |
) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
— |
|
|
— |
|
|
2.4 |
|
|
— |
|
|
2.4 |
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, INCLUDING CASH CLASSIFIED WITHIN CURRENT ASSETS OF DISCONTINUED OPERATIONS |
(42.9 |
) |
|
0.5 |
|
|
40.5 |
|
|
— |
|
|
(1.9 |
) |
LESS: INCREASE IN CASH AND CASH EQUIVALENTS CLASSIFIED WITHIN CURRENT ASSETS OF DISCONTINUED OPERATIONS |
— |
|
|
— |
|
|
40.5 |
|
|
— |
|
|
40.5 |
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(42.9 |
) |
|
0.5 |
|
|
— |
|
|
— |
|
|
(42.4 |
) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
283.4 |
|
|
2.5 |
|
|
26.9 |
|
|
— |
|
|
312.8 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
240.5 |
|
|
$ |
3.0 |
|
|
$ |
26.9 |
|
|
$ |
— |
|
|
$ |
270.4 |
|
|