Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q



	☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020



	☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 1-8944

CLEVELAND-CLIFFS INC.

(Exact Name of Registrant as Specified in Its Charter)



Ohio			34-1464672
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

200 Public Square,	Cleveland,	Ohio	44114-2315
(Address of Principal Executive Offices)			(Zip Code)

Registrant’s Telephone Number, Including Area Code: (216) 694-5700

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common shares, par value $0.125 per share	CLF	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of shares outstanding of the registrant’s common shares, par value $0.125 per share, was 399,198,070 as of July 27, 2020.

Table of Contents

TABLE OF CONTENTS


			Page Number

DEFINITIONS				1

PART I - FINANCIAL INFORMATION
	Item 1.	Financial Statements
		Statements of Unaudited Condensed Consolidated Financial Position as of June 30, 2020 and December 31, 2019		3
		Statements of Unaudited Condensed Consolidated Operations for the Three and Six Months Ended June 30, 2020 and 2019		4
		Statements of Unaudited Condensed Consolidated Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2020 and 2019		5
		Statements of Unaudited Condensed Consolidated Cash Flows for the Six Months Ended June 30, 2020 and 2019		6
		Statements of Unaudited Condensed Consolidated Changes in Equity for the Three and Six Months Ended June 30, 2020 and 2019		7
		Notes to Unaudited Condensed Consolidated Financial Statements		8
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		41
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		61
	Item 4.	Controls and Procedures		62

PART II - OTHER INFORMATION
	Item 1.	Legal Proceedings		63
	Item 1A.	Risk Factors		63
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		63
	Item 4.	Mine Safety Disclosures		63
	Item 5.	Other Information		63
	Item 6.	Exhibits		64

Signatures				66

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DEFINITIONS

The following abbreviations or acronyms are used in the text. References in this report to the “Company,” “we,” “us,” “our” and “Cliffs” are to Cleveland-Cliffs Inc. and subsidiaries, collectively, unless stated otherwise or the context indicates otherwise.



Abbreviation or acronym		Term
ABL Facility		Asset-Based Revolving Credit Agreement, by and among Bank of America, N.A., as Agent, the Lenders that are parties thereto, as the Lenders, and Cleveland-Cliffs Inc., as Parent and a Borrower, dated as of March 13, 2020, as amended
Adjusted EBITDA		EBITDA excluding certain items such as EBITDA of noncontrolling interests, extinguishment of debt, severance, acquisition-related costs, amortization of inventory step-up, impacts of discontinued operations and intersegment corporate allocations of selling, general and administrative costs
AK Coal		AK Coal Resources, Inc., an indirect, wholly owned subsidiary of AK Steel, and related coal mining operations
AK Steel		AK Steel Holding Corporation and its consolidated subsidiaries, including AK Steel Corporation, its direct, wholly owned subsidiary, collectively, unless stated otherwise or the context indicates otherwise
AK Tube		AK Tube LLC, an indirect, wholly owned subsidiary of AK Steel
AMT		Alternative Minimum Tax
AOCI		Accumulated Other Comprehensive Income (Loss)
ArcelorMittal USA		ArcelorMittal USA LLC (including many of its United States affiliates, subsidiaries and representatives. References to ArcelorMittal USA comprise all such relationships unless a specific ArcelorMittal USA entity is referenced)
ASC		Accounting Standards Codification
Atlantic Basin pellet premium		Platts Atlantic Basin Blast Furnace 65% Fe pellet premium
Board		The Board of Directors of Cleveland-Cliffs Inc.
CARES Act		Coronavirus Aid, Relief, and Economic Security Act
CECL		Current Expected Credit Losses
CERCLA		Comprehensive Environmental Response, Compensation and Liability Act
Compensation Committee		Compensation and Organization Committee of the Board
COVID-19		A novel strain of coronavirus that the World Health Organization declared a global pandemic in March 2020
Dodd-Frank Act		Dodd-Frank Wall Street Reform and Consumer Protection Act
DR-grade		Direct Reduction-grade
EAF		Electric Arc Furnace
EBITDA		Earnings before interest, taxes, depreciation and amortization
Empire		Empire Iron Mining Partnership
EPA		U.S. Environmental Protection Agency
ERISA		Employee Retirement Income Security Act of 1974, as amended
Exchange Act		Securities Exchange Act of 1934, as amended
Fe		Iron
FILO		First-in, last-out
Former ABL Facility		Amended and Restated Syndicated Facility Agreement by and among Bank of America, N.A., as Administrative Agent, the Lenders that are parties thereto, as the Lenders, Cleveland-Cliffs Inc., as Parent and a Borrower, and the Subsidiaries of Parent party thereto, as Borrowers, dated as of March 30, 2015, as amended and restated as of February 28, 2018, and as further amended
GAAP		Accounting principles generally accepted in the United States
HBI		Hot Briquetted Iron
Hibbing		Hibbing Taconite Company, an unincorporated joint venture
Hot-rolled coil steel price		Estimated average annual daily market price for hot-rolled coil steel
IRBs		Industrial Revenue Bonds
LIBOR		London Interbank Offered Rate
LIFO		Last-in, first-out
Long ton		2,240 pounds
Merger		The merger of Merger Sub with and into AK Steel, with AK Steel surviving the merger as a wholly owned subsidiary of Cliffs, subject to the terms and conditions set forth in the Merger Agreement, effective as of March 13, 2020
Merger Agreement		Agreement and Plan of Merger, dated as of December 2, 2019, among Cliffs, AK Steel and Merger Sub
Merger Sub		Pepper Merger Sub Inc., a direct, wholly owned subsidiary of Cliffs prior to the Merger
Metric ton		2,205 pounds
MMBtu		Million British Thermal Units
MSHA		U.S. Mine Safety and Health Administration
Net ton		2,000 pounds
Northshore		Northshore Mining Company
OPEB		Other postretirement benefits
Platts 62% Price		Platts IODEX 62% Fe Fines cost and freight North China
Precision Partners		PPHC Holdings, LLC (an indirect, wholly owned subsidiary of AK Steel) and its subsidiaries, collectively, unless stated otherwise or the context indicates otherwise
RCRA		Resource Conservation and Recovery Act
SEC		U.S. Securities and Exchange Commission
Section 232		Section 232 of the Trade Expansion Act of 1962, as amended
Securities Act		Securities Act of 1933, as amended

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Abbreviation or acronym		Term
SunCoke Middletown		Middletown Coke Company, LLC, a subsidiary of SunCoke Energy, Inc.
Tilden		Tilden Mining Company L.C.
Topic 805		ASC Topic 805, Business Combinations
Topic 815		ASC Topic 815, Derivatives and Hedging
United Taconite		United Taconite LLC
U.S.		United States of America
U.S. Steel		Ontario Hibbing Company, a subsidiary of United States Steel Corporation and a participant in Hibbing
USMCA		United States-Mexico-Canada Agreement
VIE		Variable Interest Entity

Table of Contents

PART I



Item 1.	Financial Statements

Statements of Unaudited Condensed Consolidated Financial Position

Cleveland-Cliffs Inc. and Subsidiaries



	(In Millions)
	June 30, 2020			December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	73.7		$	352.6
Accounts receivable, net	482.2			94.0
Inventories	1,933.6			317.4
Income tax receivable, current	62.6			58.6
Other current assets	90.2			75.3
Total current assets	2,642.3			897.9
Non-current assets:
Property, plant and equipment, net	4,547.9			1,929.0
Goodwill	139.3			2.1
Intangible assets, net	192.6			48.1
Income tax receivable, non-current	4.1			62.7
Deferred income taxes	506.5			459.5
Right-of-use asset, operating lease	213.0			11.7
Other non-current assets	245.0			92.8
TOTAL ASSETS	$	8,490.7		$	3,503.8
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	504.8		$	193.2
Accrued liabilities	288.3			126.3
Other current liabilities	244.9			89.9
Total current liabilities	1,038.0			409.4
Non-current liabilities:
Long-term debt	4,451.6			2,113.8
Operating lease liability, non-current	191.5			10.5
Intangible liabilities, net	72.3			—
Pension and OPEB liabilities	1,159.6			311.5
Asset retirement obligations	181.1			163.2
Other non-current liabilities	278.4			137.5
TOTAL LIABILITIES	7,372.5			3,145.9
Commitments and contingencies (See Note 18)
Equity:
Common shares - par value $0.125 per share
Authorized - 600,000,000 shares (2019 - 600,000,000 shares);
Issued - 428,645,866 shares (2019 - 301,886,794 shares);
Outstanding - 399,159,988 shares (2019 - 270,084,005 shares)	53.6			37.7
Capital in excess of par value of shares	4,443.6			3,872.1
Retained deficit	(3,042.5		)	(2,842.4		)
Cost of 29,485,878 common shares in treasury (2019 - 31,802,789 shares)	(355.9		)	(390.7		)
Accumulated other comprehensive loss	(305.9		)	(318.8		)
Total Cliffs shareholders' equity	792.9			357.9
Noncontrolling interest	325.3			—
TOTAL EQUITY	1,118.2			357.9
TOTAL LIABILITIES AND EQUITY	$	8,490.7		$	3,503.8

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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Statements of Unaudited Condensed Consolidated Operations

Cleveland-Cliffs Inc. and Subsidiaries



	(In Millions, Except Per Share Amounts)
	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Revenues	$	1,092.7		$	743.2		$	1,417.2		$	900.2
Realization of deferred revenue	—			—			34.6			—
Operating costs:
Cost of goods sold	(1,207.5		)	(480.2		)	(1,563.5		)	(606.3		)
Selling, general and administrative expenses	(62.1		)	(29.4		)	(89.6		)	(56.7		)
Acquisition-related costs	(18.4		)	—			(60.9		)	—
Miscellaneous – net	(13.1		)	(6.8		)	(25.0		)	(11.2		)
Total operating costs	(1,301.1		)	(516.4		)	(1,739.0		)	(674.2		)
Operating income (loss)	(208.4		)	226.8			(287.2		)	226.0
Other income (expense):
Interest expense, net	(68.7		)	(26.1		)	(99.7		)	(51.2		)
Gain (loss) on extinguishment of debt	129.4			(17.9		)	132.6			(18.2		)
Other non-operating income	15.2			0.6			21.2			1.0
Total other income (expense)	75.9			(43.4		)	54.1			(68.4		)
Income (loss) from continuing operations before income taxes	(132.5		)	183.4			(233.1		)	157.6
Income tax benefit (expense)	24.7			(22.0		)	76.1			(18.3		)
Income (loss) from continuing operations	(107.8		)	161.4			(157.0		)	139.3
Income (loss) from discontinued operations, net of tax	(0.3		)	(0.6		)	0.3			(0.6		)
Net income (loss)	(108.1		)	160.8			(156.7		)	138.7
Income attributable to noncontrolling interest	(15.8		)	—			(19.3		)	—
Net income (loss) attributable to Cliffs shareholders	$	(123.9	)	$	160.8		$	(176.0	)	$	138.7

Earnings (loss) per common share attributable to Cliffs shareholders - basic
Continuing operations	$	(0.31	)	$	0.59		$	(0.51	)	$	0.49
Discontinued operations	—			—			—			—
	$	(0.31	)	$	0.59		$	(0.51	)	$	0.49
Earnings (loss) per common share attributable to Cliffs shareholders - diluted
Continuing operations	$	(0.31	)	$	0.57		$	(0.51	)	$	0.47
Discontinued operations	—			—			—			—
	$	(0.31	)	$	0.57		$	(0.51	)	$	0.47
Average number of shares (in thousands)
Basic	399,088			275,769			348,302			282,647
Diluted	399,088			285,479			348,302			293,580

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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Statements of Unaudited Condensed Consolidated Comprehensive Income (Loss)

Cleveland-Cliffs Inc. and Subsidiaries



	(In Millions)
	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Net income (loss)	$	(108.1	)	$	160.8		$	(156.7	)	$	138.7
Other comprehensive income (loss):
Changes in pension and OPEB, net of tax	6.0			5.8			11.6			11.5
Changes in foreign currency translation	0.7			—			(0.2		)	—
Changes in derivative financial instruments, net of tax	4.5			(2.1		)	1.5			0.6
Total other comprehensive income	11.2			3.7			12.9			12.1
Comprehensive income (loss)	(96.9		)	164.5			(143.8		)	150.8
Comprehensive income attributable to noncontrolling interests	(15.8		)	—			(19.3		)	—
Comprehensive income (loss) attributable to Cliffs shareholders	$	(112.7	)	$	164.5		$	(163.1	)	$	150.8

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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Statements of Unaudited Condensed Consolidated Cash Flows

Cleveland-Cliffs Inc. and Subsidiaries



	(In Millions)
	Six Months Ended June 30,
	2020			2019
OPERATING ACTIVITIES
Net income (loss)	$	(156.7	)	$	138.7
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
Depreciation, depletion and amortization	111.5			40.9
Amortization of inventory step-up	59.4			—
Deferred income taxes	(72.5		)	18.2
Loss (gain) on extinguishment of debt	(132.6		)	18.2
Loss (gain) on derivatives	8.0			(27.2		)
Other	(28.0		)	28.4
Changes in operating assets and liabilities, net of business combination:
Receivables and other assets	365.7			145.4
Inventories	(126.1		)	(148.7		)
Payables, accrued expenses and other liabilities	(327.9		)	(62.8		)
Net cash provided (used) by operating activities	(299.2		)	151.1
INVESTING ACTIVITIES
Purchase of property, plant and equipment	(282.9		)	(300.9		)
Acquisition of AK Steel, net of cash acquired	(869.3		)	—
Other investing activities	(0.2		)	8.5
Net cash used by investing activities	(1,152.4		)	(292.4		)
FINANCING ACTIVITIES
Repurchase of common shares	—			(252.9		)
Proceeds from issuance of debt	1,762.9			720.9
Debt issuance costs	(57.9		)	(6.8		)
Repurchase of debt	(999.5		)	(729.3		)
Borrowings under credit facilities	800.0			—
Repayments under credit facilities	(250.0		)	—
Dividends paid	(40.8		)	(28.9		)
Other financing activities	(43.6		)	(10.9		)
Net cash provided (used) by financing activities	1,171.1			(307.9		)
Decrease in cash and cash equivalents, including cash classified within other current assets related to discontinued operations	(280.5		)	(449.2		)
Less: decrease in cash and cash equivalents from discontinued operations, classified within other current assets	(1.6		)	(3.2		)
Net decrease in cash and cash equivalents	(278.9		)	(446.0		)
Cash and cash equivalents at beginning of period	352.6			823.2
Cash and cash equivalents at end of period	$	73.7		$	377.2

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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Statements of Unaudited Condensed Consolidated Changes in Equity

Cleveland-Cliffs Inc. and Subsidiaries



	(In Millions)
	Number of Common Shares Outstanding	Par Value of Common Shares Issued		Capital in Excess of Par Value of Shares			Retained Deficit			Common Shares in Treasury			AOCI			Non-controlling Interests			Total
December 31, 2019	270.1	$	37.7	$	3,872.1		$	(2,842.4	)	$	(390.7	)	$	(318.8	)	$	—		$	357.9
Comprehensive income (loss)	—	—		—			(52.1		)	—			1.7			3.5			(46.9		)
Stock and other incentive plans	1.7	—		(23.6		)	—			25.7			—			—			2.1
Acquisition of AK Steel	126.8	15.9		601.7			—			—			—			329.8			947.4
Common share dividends ($0.06 per share)	—	—		—			(24.0		)	—			—			—			(24.0		)
Net distributions to noncontrolling interests	—	—		—			—			—			—			(5.5		)	(5.5		)
March 31, 2020	398.6	$	53.6	$	4,450.2		$	(2,918.5	)	$	(365.0	)	$	(317.1	)	$	327.8		$	1,231.0
Comprehensive income (loss)	—	—		—			(123.9		)	—			11.2			15.8			(96.9		)
Stock and other incentive plans	0.6	—		(6.6		)	—			9.1			—			—			2.5
Common share dividends	—	—		—			(0.1		)	—			—			—			(0.1		)
Net distributions to noncontrolling interests	—	—		—			—			—			—			(18.3		)	(18.3		)
June 30, 2020	399.2	$	53.6	$	4,443.6		$	(3,042.5	)	$	(355.9	)	$	(305.9	)	$	325.3		$	1,118.2



	(In Millions)
	Number of Common Shares Outstanding		Par Value of Common Shares Issued		Capital in Excess of Par Value of Shares			Retained Deficit			Common Shares in Treasury			AOCI			Total
December 31, 2018	292.6		$	37.7	$	3,916.7		$	(3,060.2	)	$	(186.1	)	$	(283.9	)	$	424.2
Comprehensive income (loss)	—		—		—			(22.1		)	—			8.4			(13.7		)
Stock and other incentive plans	1.7		—		(56.5		)	—			46.5			—			(10.0		)
Common share repurchases	(11.5	)	—		—			—			(124.3		)	—			(124.3		)
Common share dividends ($0.05 per share)	—		—		—			(14.5		)	—			—			(14.5		)
March 31, 2019	282.8		$	37.7	$	3,860.2		$	(3,096.8	)	$	(263.9	)	$	(275.5	)	$	261.7
Comprehensive income	—		—		—			160.8			—			3.7			164.5
Stock and other incentive plans	0.1		—		3.4			—			1.2			—			4.6
Common share repurchases	(12.9	)	—		—			—			(128.6		)	—			(128.6		)
Common share dividends ($0.06 per share)	—		—		—			(16.6		)	—			—			(16.6		)
June 30, 2019	270.0		$	37.7	$	3,863.6		$	(2,952.6	)	$	(391.3	)	$	(271.8	)	$	285.6

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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Notes to Unaudited Condensed Consolidated Financial Statements

Cleveland-Cliffs Inc. and Subsidiaries

NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Business, Consolidation and Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with SEC rules and regulations and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations, comprehensive income (loss), cash flows and changes in equity for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its estimates on various assumptions and historical experience, which are believed to be reasonable; however, due to the inherent nature of estimates, actual results may differ significantly due to changed conditions or assumptions. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020 or any other future period. Due to the acquisition of AK Steel, certain balances have become material and are no longer being condensed in our Statements of Unaudited Condensed Consolidated Financial Position, such as balances for Right-of-use asset, operating lease and Operating lease liability, non-current. As a result, certain prior period amounts have been reclassified to conform with the current year presentation. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2019 and in our Quarterly Report on Form 10-Q for the three months ended March 31, 2020.

Acquisition of AK Steel

On March 13, 2020, we consummated the Merger, pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub was merged with and into AK Steel, with AK Steel surviving the Merger as a wholly owned subsidiary of Cliffs. Refer to NOTE 3 - ACQUISITION OF AK STEEL for further information.

AK Steel is a leading North American producer of flat-rolled carbon, stainless and electrical steel products, primarily for the automotive, infrastructure and manufacturing markets. The acquisition of AK Steel has transformed us into a vertically integrated producer of value-added iron ore and steel products.

COVID-19

In response to the COVID-19 pandemic, we made various operational changes to adjust to the demand for our products. Although steel and iron ore production have been considered “essential” by the states in which we operate, certain of our facilities and construction activities were temporarily idled during the second quarter of 2020. Nearly all of these temporarily idled facilities were restarted as of June 30, 2020, with the exception of the Dearborn hot-end operations and Mansfield operations, which were restarted in July 2020, and the Northshore mine, which we plan to restart in early August 2020.

Basis of Consolidation

The unaudited condensed consolidated financial statements consolidate our accounts and the accounts of our wholly owned subsidiaries, all subsidiaries in which we have a controlling interest and two variable interest entities for which we are the primary beneficiary. All intercompany transactions and balances are eliminated upon consolidation.

Reportable Segments

The acquisition of AK Steel has transformed us into a vertically integrated producer of value-added iron ore and steel products and we are organized according to our differentiated products in two reportable segments - the new Steel and Manufacturing segment and the Mining and Pelletizing segment. Our new Steel and Manufacturing segment includes the assets acquired through the acquisition of AK Steel and our previously reported Metallics segment, and our Mining and Pelletizing segment includes our three active operating mines and our indefinitely idled mine.

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Investments in Affiliates

We have investments in several businesses accounted for using the equity method of accounting. We review an investment for impairment when circumstances indicate that a loss in value below its carrying amount is other than temporary. Investees and equity ownership percentages are presented below:



Investee	Segment Reported Within	Equity Ownership Percentage
Combined Metals of Chicago, LLC	Steel and Manufacturing	40.0%
Hibbing Taconite Company	Mining and Pelletizing	23.0%
Spartan Steel Coating, LLC	Steel and Manufacturing	48.0%

We recorded a basis difference for Spartan Steel of $32.5 million as part of our acquisition of AK Steel. The basis difference relates to the excess of the fair value over the investee's carrying amount of property, plant and equipment and will be amortized over the remaining useful lives of the underlying assets.

Significant Accounting Policies

A detailed description of our significant accounting policies can be found in the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC, which were updated and can be found in the unaudited condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 filed with the SEC. There have been no material changes in our significant accounting policies and estimates from those disclosed therein.

Recent Accounting Pronouncements

Issued and Adopted

On March 2, 2020, the SEC issued a final rule that amended the disclosure requirements related to certain registered securities under SEC Regulation S-X, Rule 3-10, which required separate financial statements for subsidiary issuers and guarantors of registered debt securities unless certain exceptions are met. The final rule replaces the previous requirement under Rule 3-10 to provide condensed consolidating financial information in the registrant’s financial statements with a requirement to provide alternative financial disclosures (which include summarized financial information of the parent and any issuers and guarantors, as well as other qualitative disclosures) in either the registrant’s Management's Discussion and Analysis of Financial Condition and Results of Operations or its financial statements, in addition to other simplifications. The final rule is effective for filings on or after January 4, 2021, and early adoption is permitted. We elected to early adopt this disclosure update for the period ended March 31, 2020. As a result, we have excluded the footnote disclosures required under the previous Rule 3-10, and applied the final rule by including the summarized financial information and qualitative disclosures in Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report on Form 10-Q and Exhibit 22.1, filed herewith.

Table of Contents

NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

Revenues

The following table represents our consolidated Revenues (excluding intercompany revenues) by market:



	(In Millions)
	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Steel and Manufacturing:
Automotive	$	363.8	$	—	$	484.0	$	—
Infrastructure and manufacturing	203.4		—		247.4		—
Distributors and converters	147.9		—		201.2		—
Total Steel and Manufacturing	715.1		—		932.6		—
Mining and Pelletizing:
Steel producers¹	377.6		743.2		519.2		900.2
Total revenues	$	1,092.7	$	743.2	$	1,451.8	$	900.2

¹ Includes Realization of deferred revenue of $34.6 million for the six months ended June 30, 2020.

The following table represents our consolidated Revenues (excluding intercompany revenues) by product line:

(In Millions)

Three Months Ended
June 30,

Six Months Ended
June 30,