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

LEASES (Tables)

3 Months Ended

Mar. 31, 2020

Lease costs are presented below:



	(In Millions)
	Three Months Ended March 31,
	2020		2019
Operating leases	$	3.8	$	1.0
Finance leases:
Amortization of lease cost	2.1		0.8
Interest on lease liabilities	0.5		0.3
Short-term leases	4.1		1.7
Variable lease costs	2.8		—
Total	$	13.3	$	3.8

Other information related to leases was as follows:



	(Dollars In Millions)
	Three Months Ended March 31,
	2020			2019
Cash paid for amounts included in measurement of lease liabilities:
Operating leases within cash flows from operating activities	$	1.1		$	1.0
Finance leases within cash flows from operating activities	$	0.5		$	0.3
Finance leases within cash flows from financing activities	$	2.1		$	0.8
Right-of-use assets obtained in exchange for new finance lease liabilities¹	$	29.9		$	15.1
Weighted-average remaining lease term - operating leases (in years)	8			10
Weighted-average remaining lease term - finance leases (in years)	11			6
Weighted-average discount rate - operating leases	8.4		%	7.9		%
Weighted-average discount rate - finance leases	6.8		%	4.7		%

¹Does not include right-of-use assets obtained in the Merger of $5.3 million for the three months ended March 31, 2020.

^[1]

Future minimum lease payments under noncancellable finance and operating leases as of March 31, 2020 were as follows:



	(In Millions)
	Finance Leases		Operating Leases
2020 (remaining period of the year)	$	11.1	$	43.0
2021	13.6		56.0
2022	12.5		45.6
2023	10.6		39.4
2024	10.5		29.0
Thereafter	56.0		132.7
Total future minimum lease payments	114.3		345.7
Less imputed interest	42.9		104.1
Total lease payments	71.4		241.6
Less current portion of lease liabilities	11.4		40.4
Long-term lease liabilities	$	60.0	$	201.2

[1]	¹Does not include right-of-use assets obtained in the Merger of $5.3 million for the three months ended March 31, 2020.