Quarterly report pursuant to Section 13 or 15(d)

Lease Obligations

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Lease Obligations
 6 Months Ended
Jun. 30, 2011
Lease Obligations  
Lease Obligations

NOTE 9 – LEASE OBLIGATIONS

We lease certain mining, production and other equipment under operating and capital leases. The leases are for varying lengths, generally at market interest rates and contain purchase and/or renewal options at the end of the terms. Our operating lease expense was $7.9 million and $13.7 million, respectively, for the three and six months ended June 30, 2011, compared with $6.0 million and $11.9 million, respectively, for the same periods in 2010.

 

Future minimum payments under capital leases and non-cancellable operating leases at June 30, 2011 are as follows:

 

     (In Millions)  
     Capital
Leases		     Operating
Leases		  

2011 (July 1 - December 31)

      $ 33.2          $ 22.1     

2012

      65.5          41.3     

2013

      57.3          39.2     

2014

      52.3          30.0     

2015

      41.0          12.5     

2016 and thereafter

      104.3          73.8     
                

Total minimum lease payments

      353.6          $     218.9     
          

Amounts representing interest

      76.3       
          

Present value of net minimum lease payments

      $       277.3   (1)   
          

(1)    The total is comprised of $50.8 million and $226.6 million classified as Other current liabilities and Other liabilities, respectively, on the Statements of Unaudited Condensed Consolidated Financial Position at June 30, 2011.