Quarterly report pursuant to Section 13 or 15(d)

SHAREHOLDERS' EQUITY

v2.4.0.8
SHAREHOLDERS' EQUITY
 9 Months Ended
Sep. 30, 2014
Stockholders' Equity Note [Abstract]  
SHAREHOLDERS' EQUITY
NOTE 15 - SHAREHOLDERS' EQUITY
The following table reflects the changes in shareholders' equity attributable to both Cliffs and the noncontrolling interests primarily related to Bloom Lake, Tilden and Empire of which Cliffs owns 82.8 percent, 85 percent and 79 percent, respectively, for the nine months ended September 30, 2014 and September 30, 2013:
 
(In Millions)
 
Cliffs
Shareholders’
Equity
 
Noncontrolling
Interest
 
Total Equity
December 31, 2013
$
6,069.5

 
$
814.8

 
$
6,884.3

Comprehensive income
 
 
 
 
 
Net loss
(5,939.0
)
 
(1,004.4
)
 
(6,943.4
)
Other comprehensive income
11.5

 
1.6

 
13.1

Total comprehensive income
(5,927.5
)
 
(1,002.8
)
 
(6,930.3
)
Stock and other incentive plans
(3.4
)
 
—

 
(3.4
)
Common and preferred share dividends
(107.9
)
 
—

 
(107.9
)
Undistributed losses to noncontrolling interest
—

 
(20.0
)
 
(20.0
)
September 30, 2014
$
30.7

 
$
(208.0
)
 
$
(177.3
)
 
(In Millions)
 
Cliffs
Shareholders’
Equity
 
Noncontrolling
Interest
 
Total Equity
December 31, 2012
$
4,632.7

 
$
1,128.2

 
$
5,760.9

Comprehensive income
 
 
 
 
 
Net income
370.2

 
5.8

 
376.0

Other comprehensive income
(122.8
)
 
3.2

 
(119.6
)
Total comprehensive income
247.4

 
9.0

 
256.4

Issuance of common shares
285.3

 
—

 
285.3

Issuance of preferred shares
709.4

 
—

 
709.4

Stock and other incentive plans
9.6

 
—

 
9.6

Common and preferred share dividends
(104.7
)
 
—

 
(104.7
)
Capital contribution by noncontrolling interest
    to subsidiary
—

 
17.7

 
17.7

September 30, 2013
$
5,779.7

 
$
1,154.9

 
$
6,934.6

The following table reflects the changes in Accumulated other comprehensive income (loss) related to Cliffs shareholders’ equity for September 30, 2014 and September 30, 2013:
 
(In Millions)
 
Changes in Pension and Other Post-Retirement Benefits, net of tax
 
Unrealized Net Gain (Loss) on Securities, net of tax
 
Unrealized Net Gain (Loss) on Foreign Currency Translation
 
Net Unrealized Gain (Loss) on Derivative Financial Instruments, net of tax
 
Accumulated Other Comprehensive Income (Loss)
Balance December 31, 2013
$
(204.9
)
 
$
6.2

 
$
106.7

 
$
(20.9
)
 
$
(112.9
)
Other comprehensive income (loss) before reclassifications
(0.4
)
 
3.8

 
40.5

 
(2.3
)
 
41.6

Net loss (gain) reclassified from accumulated other comprehensive income (loss)
3.3

 
0.1

 
—

 
12.8

 
16.2

Balance March 31, 2014
$
(202.0
)
 
$
10.1

 
$
147.2

 
$
(10.4
)
 
$
(55.1
)
Other comprehensive income (loss) before reclassifications
(1.4
)
 
(2.4
)
 
19.7

 
9.7

 
25.6

Net loss (gain) reclassified from accumulated other comprehensive income (loss)
4.0

 
(1.3
)
 
—

 
6.6

 
9.3

Balance June 30, 2014
$
(199.4
)
 
$
6.4

 
$
166.9

 
$
5.9

 
$
(20.2
)
Other comprehensive income (loss) before reclassifications
3.5

 
1.3

 
(65.9
)
 
(20.0
)
 
(81.1
)
Net loss (gain) reclassified from accumulated other comprehensive income (loss)
7.6

 
(7.1
)
 
—

 
(0.6
)
 
(0.1
)
Balance September 30, 2014
$
(188.3
)
 
$
0.6

 
$
101.0

 
$
(14.7
)
 
$
(101.4
)
 
(In Millions)
 
Changes in Pension and Other Post-Retirement Benefits, net of tax
 
Unrealized Net Gain (Loss) on Securities, net of tax
 
Unrealized Net Gain (Loss) on Foreign Currency Translation
 
Net Unrealized Gain (Loss) on Derivative Financial Instruments, net of tax
 
Accumulated Other Comprehensive Income (Loss)
Balance December 31, 2012
$
(382.7
)
 
$
2.1

 
$
316.3

 
$
8.7

 
$
(55.6
)
Other comprehensive income (loss) before reclassifications
(1.1
)
 
2.5

 
3.3

 
(5.0
)
 
(0.3
)
Net loss (gain) reclassified from accumulated other comprehensive income (loss)
6.4

 
0.1

 
—

 
(2.0
)
 
4.5

Balance March 31, 2013
$
(377.4
)
 
$
4.7

 
$
319.6

 
$
1.7

 
$
(51.4
)
Other comprehensive income (loss) before reclassifications
(1.5
)
 
(2.0
)
 
(152.0
)
 
(42.2
)
 
(197.7
)
Net loss (gain) reclassified from accumulated other comprehensive income (loss)
8.1

 
3.6

 
—

 
(2.2
)
 
9.5

Balance June 30, 2013
$
(370.8
)
 
$
6.3

 
$
167.6

 
$
(42.7
)
 
$
(239.6
)
Other comprehensive income (loss) before reclassifications
(0.6
)
 
3.5

 
22.8

 
12.1

 
37.8

Net loss (gain) reclassified from accumulated other comprehensive income (loss)
6.3

 
0.9

 
—

 
16.2

 
23.4

Balance September 30, 2013
$
(365.1
)
 
$
10.7

 
$
190.4

 
$
(14.4
)
 
$
(178.4
)

The following table reflects the details about Accumulated other comprehensive income (loss) components related to Cliffs shareholders’ equity for the three and nine months ended September 30, 2014:
 
 
(In Millions)
 
 
Details about Accumulated Other Comprehensive Income (Loss) Components
 
Amount of (Gain)/Loss Reclassified into Income
 
Affected Line Item in the Statement of Unaudited Condensed Consolidated Operations
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2014
 
2013
 
2014
 
2013
 
Amortization of Pension and Postretirement Benefit Liability:
 
 
 
 
 
 
 
 
 
 
Prior service costs
 
$
(0.2
)
 
$
(0.1
)
 
$
(0.7
)
 
$
(0.4
)
 
(1)
Net actuarial loss
 
4.5

 
10.4

 
14.0

 
31.2

 
(1)
Settlements/curtailments
 
1.7

 
—

 
2.9

 
—

 
(1)
 
 
6.0

 
10.3

 
16.2

 
30.8

 
Total before taxes
 
 
1.6

 
(4.0
)
 
(1.3
)
 
(10.0
)
 
Income tax benefit (expense)
 
 
$
7.6

 
$
6.3

 
$
14.9

 
$
20.8

 
Net of taxes
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss) on marketable securities:
 
 
 
 
 
 
 
 
 
 
Sale of marketable securities
 
$
(9.7
)
 
$
0.6

 
$
(11.4
)
 
$
(0.5
)
 
Other non-operating income (expense)
Impairment
 
(0.3
)
 
—

 
(0.3
)
 
5.3

 
Other non-operating income (expense)
 
 
(10.0
)
 
0.6

 
(11.7
)
 
4.8

 
Total before taxes
 
 
2.9

 
0.3

 
3.4

 
(0.2
)
 
Income tax benefit (expense)
 
 
$
(7.1
)
 
$
0.9

 
$
(8.3
)
 
$
4.6

 
Net of taxes
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss) on derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
Australian dollar foreign exchange contracts
 
$
(1.6
)
 
$
12.7

 
$
16.7

 
$
6.4

 
Product revenues
Canadian dollar foreign exchange contracts
 
1.5

 
11.0

 
11.4

 
11.3

 
Cost of goods sold and operating expenses
 
 
(0.1
)
 
23.7

 
28.1

 
17.7

 
Total before taxes
 
 
(0.5
)
 
(7.5
)
 
(9.3
)
 
(5.7
)
 
Income tax benefit (expense)
 
 
$
(0.6
)
 
$
16.2

 
$
18.8

 
$
12.0

 
Net of taxes
 
 
 
 
 
 
 
 
 
 
 
Total Reclassifications for the Period
 
$
(0.1
)
 
$
23.4

 
$
25.4

 
$
37.4

 
 
                                         
(1)
These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See NOTE 11 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS for further information.