Annual report pursuant to Section 13 and 15(d)

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

v2.4.0.8
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
 12 Months Ended
Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information [Text Block]
NOTE 23 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The sum of quarterly EPS may not equal EPS for the year due to discrete quarterly calculations.
(In Millions, Except Per Share Amounts)
2013
Quarters
 
 
First
 
Second
 
Third
 
Fourth
 
Year
Revenues from product sales and services
$
1,140.5

 
$
1,488.5

 
$
1,546.6

 
$
1,515.8

 
$
5,691.4

Sales margin
237.9

 
268.2

 
348.7

 
294.5

 
1,149.3

Net Income (Loss) from Continuing Operations
    attributable to Cliffs shareholders
$
107.0

 
$
146.0

 
$
115.2

 
$
43.3

 
$
411.5

Income from Discontinued Operations
—

 
—

 
2.0

 
—

 
2.0

Net Income (Loss) Attributable to Cliffs Shareholders
$
107.0

 
$
146.0

 
$
117.2

 
$
43.3

 
$
413.5

Earnings per common share attributable to
    Cliffs common shareholders — Basic:

 

 

 

 

Continuing Operations
$
0.66

 
$
0.87

 
$
0.67

 
$
0.20

 
$
2.39

Discontinued Operations
—

 
—

 
0.01

 
—

 
0.01

 
$
0.66

 
$
0.87

 
$
0.68

 
$
0.20

 
$
2.40

Earnings per common share attributable to
    Cliffs common shareholders — Diluted:

 

 

 

 
 
Continuing Operations
$
0.66

 
$
0.82

 
$
0.65

 
$
0.20

 
$
2.36

Discontinued Operations
—

 
—

 
0.01

 
—

 
0.01

 
$
0.66

 
$
0.82

 
$
0.66

 
$
0.20

 
$
2.37

The diluted earnings per share calculation for the first and fourth quarters of 2013 exclude depositary shares that were anti-dilutive totaling 12.9 million and 25.2 million, respectively.
 
2012
Quarters
 
 
First
 
Second
 
Third
 
Fourth
 
Year
Revenues from product sales and services
$
1,212.4

 
$
1,579.5

 
$
1,544.9

 
$
1,535.9

 
$
5,872.7

Sales margin
291.8

 
443.5

 
198.3

 
238.5

 
1,172.1

Net Income (Loss) from Continuing Operations
    attributable to Cliffs shareholders
$
370.3

 
$
255.7

 
$
87.8

 
$
(1,649.1
)
 
$
(935.3
)
Income (Loss) and Gain on Sale from
    Discontinued Operations, net of tax
5.5

 
2.3

 
(2.7
)
 
30.8

 
35.9

Net Income Attributable to Cliffs Shareholders
$
375.8

 
$
258.0

 
$
85.1

 
$
(1,618.3
)
 
$
(899.4
)
Earnings per common share attributable to
    Cliffs common shareholders — Basic:

 

 

 

 

Continuing Operations
$
2.60

 
$
1.79

 
$
0.62

 
$
(11.58
)
 
$
(6.57
)
Discontinued Operations
0.04

 
0.02

 
(0.02
)
 
0.22

 
0.25

 
$
2.64

 
$
1.81

 
$
0.60

 
$
(11.36
)
 
$
(6.32
)
Earnings per common share attributable to
Cliffs common shareholders — Diluted:

 

 

 

 

Continuing Operations
$
2.59

 
$
1.79

 
$
0.61

 
$
(11.58
)
 
$
(6.57
)
Discontinued Operations
0.04

 
0.02

 
(0.02
)
 
0.22

 
0.25

 
$
2.63

 
$
1.81

 
$
0.59

 
$
(11.36
)
 
$
(6.32
)

Fourth Quarter Results
Upon performing our annual goodwill impairment test in the fourth quarter of 2013, a goodwill impairment charge of $80.9 million was recorded for our Cliffs Chromite Ontario and Cliffs Chromite Far North reporting units within our Ferroalloys operating segment. We also recorded an other long-lived asset impairment charge of $154.6 million related to our Wabush operations within our Eastern Canadian Iron Ore operating segment to reduce those assets to their estimated fair value as of December 31, 2013. All of these charges impacted Impairment of goodwill and other long-lived assets.
During the fourth quarter of 2012 after performing our annual goodwill impairment test, we determined that $997.3 million and $2.7 million of goodwill associated with our CQIM and Wabush reporting units, respectively, was impaired. We also recorded an asset impairment charge of $49.9 million related to the Wabush mine pelletizing operations during the period. In addition, during the fourth quarter, we recorded tax expense of $314.7 million and $226.4 million related to the MRRT starting base deferred tax asset net valuation allowance and Alternative Minimum Tax credit valuation allowance, respectively.
As discussed in NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, we recorded an adjustment to correct an immaterial prior period error in the noncontrolling interest related to Bloom Lake. Accordingly, the adjustment was recorded prospectively in the Statements of Consolidated Operations for the period ended December 31, 2013 and in the Statements of Consolidated Financial Position as of December 31, 2013. The adjustment to noncontrolling interest related to Bloom Lake was approximately $45.1 million and resulted in an increase to Net Income (Loss) Attributable to Cliffs Shareholders and a reduction of Loss (income) attributable to noncontrolling interest and corresponding decrease to Noncontrolling interest in the Statements of Consolidated Financial Position for the three months ended and year ended December 31, 2013. The adjustments also resulted in an increase to basic and diluted earnings per common share of $0.29 for the three months ended December 31, 2013. The impact of the prospective adjustments in the Statements of Consolidated Operations would have resulted in an increase to basic and diluted earnings per common share of $0.14, $0.03, $0.04 and $0.04 for the first, second, third and fourth quarter, respectively, of the year ended December 31, 2012.
Refer to NOTE 8 - GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES, NOTE 5 - PROPERTY, PLANT AND EQUIPMENT and NOTE 15 - INCOME TAXES for further information.