Quarterly report pursuant to Section 13 or 15(d)

LEASE OBLIGATIONS

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LEASE OBLIGATIONS
 6 Months Ended
Jun. 30, 2012
LEASE OBLIGATIONS

NOTE 10 – 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 $6.2 million and $12.5 million, respectively, for the three and six months ended June 30, 2012, compared with $7.9 million and $13.7 million, respectively, for the same periods in 2011.

 

Future minimum payments under capital leases and non-cancellable operating leases at June 30, 2012 are as follows:

 

     (In Millions)  
     Capital
Leases		     Operating
Leases		  

2012 (July 1 - December 31)

      $     40.2          $     11.7     

2013

      72.1          23.5     

2014

      66.7          19.6     

2015

      55.5          12.7     

2016

      39.9          9.5     

2017 and thereafter

      123.0          30.2     
  

 

 

    

 

 

  

Total minimum lease payments

      $     397.4          $     107.2     
    

 

 

  

Amounts representing interest

      90.5       
  

 

 

    

Present value of net minimum lease payments

      $     306.9   (1)   
  

 

 

    

 

  (1)

The total is comprised of $53.4 million and $253.5 million classified as Other current liabilities and Other liabilities , respectively, in the Statements of Unaudited Condensed Consolidated Financial Position at June 30, 2012.