Annual report pursuant to Section 13 and 15(d)

STOCK COMPENSATION PLANS (Tables)

v3.19.3.a.u2
STOCK COMPENSATION PLANS (Tables)
12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Approved Grants Equity Plans [Table Text Block]
A summary of our outstanding share-based award activity for the year ended December 31, 2019 is as follows:
 
Shares
 
Weighted Average
Grant Date Fair Value
Outstanding, beginning of year
6,792,201

 
$
6.90

Granted
1,285,419

 
$
14.18

Vested and issued
(3,199,270
)
 
$
2.20

Forfeited/canceled
(121,923
)
 
$
12.21

Outstanding, end of year
4,756,427

 
$
11.90


Stock Incentive Plans Disclosure [Table Text Block]
Following is a summary of our performance share award agreements outstanding as of December 31, 2019:
Performance
Share
Plan Year
 
Performance Shares Granted
 
Forfeitures to Date
 
Expected to Vest
 
Grant Date
 
Grant Date Fair Value
 
Performance Period
2019
 
572,104

 
15,879

 
556,225

 
2/19/2019
 
$
18.31

 
1/1/2019 - 12/31/2021
2018
 
675,599

 
35,320

 
640,279

 
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

 
63,457

 
490,268

 
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
2019
 
86,477

 
23,659

2018
 
92,718

 
17,170

2017
 
93,359

 
17,289


Share-based Payment Arrangement, Cost 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)
 
2019
 
2018
 
2017
Cost of goods sold and operating expenses
$
2.0

 
$
1.7

 
$
1.9

Selling, general and administrative expenses
15.6

 
13.4

 
16.3

Reduction of operating income from continuing operations before
    income taxes
17.6

 
15.1

 
18.2

Income tax benefit1
(3.7
)
 

 

Reduction of net income from continuing operations attributable to Cliffs shareholders
$
13.9

 
$
15.1

 
$
18.2

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

 
$
0.05

 
$
0.06

Diluted
$
0.05

 
$
0.05

 
$
0.06

 
 
 
 
 
 
1 No income tax benefit in 2018 and 2017 due to the full valuation allowance.

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]
Stock option, restricted awards and performance share activity under our long-term equity plans and Directors’ Plans are as follows:
 
2019
 
2018
 
2017
 
Shares
 
Shares
 
Shares
Stock options:
 
 
 
 
 
Outstanding at beginning of year
563,230

 
599,870

 
599,870

Exercised

 
(36,640
)
 

Forfeited/canceled

 

 

Outstanding at end of year
563,230

 
563,230

 
599,870

Restricted awards:
 
 
 
 
 
Outstanding and restricted at beginning of year
4,804,248

 
4,776,483

 
5,461,783

Granted during the year
682,240

 
795,487

 
1,196,731

Vested and issued
(3,168,195
)
 
(627,567
)
 
(1,813,315
)
Forfeited/canceled
(60,974
)
 
(140,155
)
 
(68,716
)
Outstanding and restricted at end of year
2,257,319

 
4,804,248

 
4,776,483

Performance shares:

 

 

Outstanding at beginning of year
1,424,723

 
1,848,312

 
1,368,469

Granted during the year
572,104

 
675,599

 
802,831

Vested and issued

 
(489,953
)
 

Forfeited/canceled
(60,949
)
 
(609,235
)
 
(322,988
)
Outstanding at end of year
1,935,878

 
1,424,723

 
1,848,312

Vested or expected to vest as of December 31, 20191
4,756,427

 
 
 
 
Directors’ retainer and voluntary shares:

 

 

Outstanding at beginning of year

 

 

Granted during the year
31,075

 
27,300

 
25,476

Vested and issued
(31,075
)
 
(27,300
)
 
(25,476
)
Outstanding at end of year

 

 

Reserved for future grants or awards at end of year:
 
 
 
 
 
Employee plans
9,931,740

 
 
 
 
Directors’ plans
389,692

 
 
 
 
Total
10,321,432

 
 
 
 
 
 
 
 
 
 
1 We assume all shares will vest until the date of vesting or forfeiture.

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
2019
 
12/31/2021
 
A&R 2015 Equity Plan
 
572,104

 
572,104

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