Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTIES (Notes)

v3.20.2
RELATED PARTIES (Notes)
 6 Months Ended
Jun. 30, 2020
Related Party Transactions [Abstract]  
RELATED PARTIES
We have certain co-owned joint ventures with companies from the steel and mining industries, including integrated steel companies, their subsidiaries and other downstream users of steel and iron ore products. In addition, we have certain long-term contracts, and from time to time, enter into other sales agreements with these parties, and as a result, generate Revenues from related parties.
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 June 30, 2020:
Mine
 
Cleveland-Cliffs Inc.
 
ArcelorMittal USA
 
U.S. Steel
Hibbing
 
23.0%
 
62.3%
 
14.7%

The tables below summarize our material related party transactions:
Revenues from related parties were as follows:
 
(In Millions)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Revenue from related parties
$
281.8

 
$
452.4

 
$
292.6

 
$
499.3

Revenues1
$
1,092.7

 
$
743.2

 
$
1,451.8

 
$
900.2

Related party revenues as a percent of Revenues1
25.8
%
 
60.9
%
 
20.2
%
 
55.5
%
Purchases from related parties
$
9.7

 
$
—

 
$
12.2

 
$
—


1 Includes Realization of deferred revenue of $34.6 million for the six months ended June 30, 2020.
The following table presents the classification of related party assets and liabilities in the Statements of Unaudited Condensed Consolidated Financial Position:
 
 
(In Millions)
Balance Sheet Location
 
June 30,
2020
 
December 31,
2019
Accounts receivable, net
 
$
91.6

 
$
31.1

Other current assets
 
35.3

 
44.5

Accounts payable
 
(2.4
)
 
—

Other current liabilities
 
(2.0
)
 
(2.0
)

Other current assets
A supply agreement with one customer provides for supplemental revenue or refunds to the customer based on the hot-rolled coil steel price at the time the product is consumed in the customer’s blast furnaces. The supplemental pricing is characterized as a freestanding derivative. Refer to NOTE 12 - DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES for further information.