Annual report pursuant to Section 13 and 15(d)

STOCK COMPENSATION PLANS (Tables)

v3.10.0.1
STOCK COMPENSATION PLANS (Tables)
12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Approved Grants Equity Plans [Table Text Block]
Following is a summary of approved grants by the Compensation Committee:
Grant Year
 
Vesting Date
 
Plan Issued Under
 
Restricted Stock Units Granted
 
Performance Shares Granted
2018
 
12/31/2020
 
A&R 2015 Equity Plan
 
685,599

 
675,599

2017
 
12/31/2019
 
A&R 2015 Equity Plan
 
532,358

 
249,106

2017
 
12/31/2019
 
Amended 2015 Equity Plan
 
553,725

 
553,725

2016
 
12/31/2018
 
2015 Equity Plan
 
3,406,716

 

Stock Incentive Plans Disclosure [Table Text Block]
Following is a summary of our performance share award agreements currently outstanding:
Performance
Share
Plan Year
 
Performance Shares Granted
 
Forfeitures to Date
 
Expected to Vest
 
Grant Date
 
Grant Date Fair Value
 
Performance Period
2018
 
675,599

 
2,236

 
673,363

 
2/21/2018
 
$
11.93

 
1/1/2018 - 12/31/2020
2017
 
249,106

 

 
249,106

 
6/26/2017
 
$
10.74

 
5/31/2017 - 12/31/2019
2017
 
553,725

 
51,471

 
502,254

 
2/21/2017
 
$
19.69

 
1/1/2017 - 12/31/2019
Incentive Compensation and Other Benefit Plans for Employees and Directors [Table Text Block]
For the last three years, grants of restricted and/or deferred shares have been awarded to elected or re-elected nonemployee directors as follows:
Year of Grant
 
Restricted Shares
 
Deferred Shares
2018
 
92,718

 
17,170

2017
 
93,359

 
17,289

2016
 
135,038

 
29,583

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]
The following table summarizes the share-based compensation expense that we recorded in continuing operations:
 
(In Millions, except per
share amounts)
 
2018
 
2017
 
2016
Cost of goods sold and operating expenses
$
1.7

 
$
1.9

 
$
1.8

Selling, general and administrative expenses
13.4

 
16.3

 
11.8

Reduction of operating income from continuing operations before
    income taxes
15.1

 
18.2

 
13.6

Income tax benefit1

 

 

Reduction of net income from continuing operations attributable to Cliffs shareholders
$
15.1

 
$
18.2

 
$
13.6

Reduction of continuing operations earnings per common share attributable to Cliffs shareholders:
 
 
 
 
 
Basic
$
0.05

 
$
0.06

 
$
0.07

Diluted
$
0.05

 
$
0.06

 
$
0.07

 
 
 
 
 
 
1 No income tax benefit due to the full valuation allowance.
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]
Stock option, restricted stock awards and performance share activity under our long-term equity plans and Directors’ Plans are as follows:
 
2018
 
2017
 
2016
 
Shares
 
Shares
 
Shares
Stock options:
 
 
 
 
 
Outstanding at beginning of year
599,870

 
599,870

 
607,489

Exercised
(36,640
)
 

 

Forfeited/canceled

 

 
(7,619
)
Outstanding at end of year
563,230

 
599,870

 
599,870

Restricted awards:
 
 
 
 
 
Outstanding and restricted at beginning of year
4,776,483

 
5,461,783

 
2,338,070

Granted during the year
795,487

 
1,196,731

 
3,571,337

Vested and issued
(627,567
)
 
(1,813,315
)
 
(271,988
)
Forfeited/canceled
(140,155
)
 
(68,716
)
 
(175,636
)
Outstanding and restricted at end of year
4,804,248

 
4,776,483

 
5,461,783

Performance shares:

 

 

Outstanding at beginning of year
1,848,312

 
1,368,469

 
1,496,489

Granted during the year
675,599

 
802,831

 

Vested and issued
(489,953
)
 

 
(59,260
)
Forfeited/canceled
(609,235
)
 
(322,988
)
 
(68,760
)
Outstanding at end of year
1,424,723

 
1,848,312

 
1,368,469

Vested or expected to vest as of December 31, 20181
6,792,201

 
 
 
 
Directors’ retainer and voluntary shares:

 

 

Outstanding at beginning of year

 

 

Granted during the year
27,300

 
25,476

 

Vested and issued
(27,300
)
 
(25,476
)
 

Outstanding at end of year

 

 

Reserved for future grants or awards at end of year:
 
 
 
 
 
Employee plans
12,949,420

 
 
 
 
Directors’ plans
502,378

 
 
 
 
Total
13,451,798

 
 
 
 
 
 
 
 
 
 
1 With the adoption of ASU 2016-09, we assume all shares will vest until the date of vesting or forfeiture.

Employee Stock Awards Outstanding [Table Text Block]
A summary of our outstanding share-based awards as of December 31, 2018 is shown below:
 
Shares
 
Weighted
Average
Grant Date
Fair Value
Outstanding, beginning of year
7,224,665

 
$
6.79

Granted
1,498,386

 
$
9.51

Vested and issued
(1,181,460
)
 
$
7.38

Forfeited/canceled
(749,390
)
 
$
10.22

Outstanding, end of year
6,792,201

 
$
6.90