Cleveland-Cliffs Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

Cleveland-Cliffs Inc.

ArcelorMittal USA

U.S. Steel

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Contract with Customer, Asset and Liability

The table below summarizes our deferred revenue balances:



	(In Millions)
	Deferred Revenue (Current)						Deferred Revenue (Long-Term)
	2020			2019			2020			2019
Opening balance as of January 1	$	22.1		$	21.0		$	25.7		$	38.5
Decrease	(21.8		)	(2.9		)	(25.7		)	—
Closing balance as of March 31	$	0.3		$	18.1		$	—		$	38.5

Value Of Each Of The Major Classes Of Consolidated Depreciable Assets

Depreciation and depletion is recorded over the following estimated useful lives:



Asset Class	Basis	Life
Land, land improvements and mineral rights
Land and mineral rights	Units of production	Life of mine
Land improvements	Straight line	20 to 45 years
Buildings	Straight line	40 to 45 years
Mining and Pelletizing equipment	Straight line/Double declining balance	3 to 20 years
Steel and Manufacturing equipment	Straight line/Double declining balance	3 to 20 years

The following table indicates the carrying value of each of the major classes of our depreciable assets:



	(In Millions)
	March 31, 2020			December 31, 2019
Land, land improvements and mineral rights	$	652.7		$	582.2
Buildings	452.5			157.8
Mining and Pelletizing equipment	1,431.8			1,413.6
Steel and Manufacturing equipment	2,140.9			42.0
Other	123.0			101.5
Construction-in-progress	1,011.3			730.3
Total property, plant and equipment¹	5,812.2			3,027.4
Allowance for depreciation and depletion	(1,262.4		)	(1,098.4		)
Property, plant and equipment, net	$	4,549.8		$	1,929.0

¹Includes right-of-use assets related to finance leases of $84.2 million and $49.0 million as of March 31, 2020 and December 31, 2019, respectively.

^[1]

Schedule of Finite-Lived Intangible Assets

Intangible assets and liabilities are subject to periodic amortization on a straight-line basis over their estimated useful lives as follows:



Type	Basis	Useful Life
Intangible assets, net
Customer relationships	Straight line	18 years
Developed technology	Straight line	17 years
Trade names and trademarks	Straight line	10 years
Mining permits	Straight line	Life of mine
Intangible liability, net
Above-market supply contract	Straight line	13 years

Equity Method Investments

Investees and equity ownership percentages are presented below:



Investee	Segment Reported Within	Equity Ownership Percentage
Combined Metals of Chicago, LLC	Steel and Manufacturing	40.0%
Hibbing Taconite Company	Mining and Pelletizing	23.0%
Spartan Steel Coating, LLC	Steel and Manufacturing	48.0%

Hibbing is a co-owned joint venture with companies that are integrated steel producers or their subsidiaries. The following is a summary of the mine ownership of the co-owned iron ore mine at March 31, 2020:

[1]	¹Includes right-of-use assets related to finance leases of $84.2 million and $49.0 million as of March 31, 2020 and December 31, 2019, respectively.