Annual report pursuant to Section 13 and 15(d)

STOCK COMPENSATION PLANS (Tables)

v2.4.1.9
STOCK COMPENSATION PLANS (Tables)
 12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Incentive Plans Disclosure [Table Text Block]
Following is a summary of our performance share award agreements currently outstanding:
Performance
Share
Plan Year
Performance Shares Granted
 
Estimated Forfeitures
 
Expected to Vest
 
Grant Date
 
Performance Period
2014
400,000

 
40,911

 
359,089

 
November 17, 2014
 
8/7/2014 - 12/31/2017
2014
283,530

 
24,380

 
259,150

 
July 29, 2014
 
1/1/2014 - 12/31/2016
2014
124,630

 
21,098

 
103,532

 
May 12, 2014
 
1/1/2014 - 12/31/2016
2014
385,585

 
120,299

 
265,286

 
February 10, 2014
 
1/1/2014 - 12/31/2016
Incentive Compensation and Other Benefit Plans for Employees and Directors [Table Text Block]
For the last three years, Equity Grant shares have been awarded to elected or re-elected nonemployee Directors as follows:
Year of Grant
 
Unrestricted Equity Grant Shares
 
Restricted Equity Grant Shares
 
Deferred Equity Grant Shares
2012
 
1,498

 
8,988

 
2,996

2013
 
3,985

 
31,506

 
7,970

2014
 
—

 
73,635

 
—

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]
The following table summarizes the share-based compensation expense that we recorded for continuing operations in 2014, 2013 and 2012:
 
(In Millions, except  per
share amounts)
 
2014
 
2013
 
2012
Cost of goods sold and operating expenses
$
7.8

 
$
6.3

 
$
4.0

Selling, general and administrative expenses
15.9

 
14.8

 
16.6

Reduction of operating income from continuing operations before income
    taxes and equity income (loss) from ventures
23.7

 
21.1

 
20.6

Income tax benefit
(8.3
)
 
(7.4
)
 
(7.2
)
Reduction of net income attributable to Cliffs shareholders
$
15.4

 
$
13.7

 
$
13.4

Reduction of earnings per share attributable to Cliffs shareholders:

 

 

Basic
$
0.10

 
$
0.09

 
$
0.09

Diluted
$
0.10

 
$
0.08

 
$
0.09

Schedule Of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions
The following assumptions were utilized to estimate the fair value for the 2014 performance share grants:
Grant Date
 
Grant Date Market Price
 
Average Expected Term (Years)
 
Expected Volatility
 
Risk-Free Interest Rate
 
Dividend Yield
 
Fair Value
 
Fair Value (Percent of Grant Date Market Price)
February 10, 2014
 
$
20.58

 
2.89
 
54.0%
 
0.54%
 
2.92%
 
$
22.21

 
107.92%
May 12, 2014
 
$
17.54

 
2.61
 
54.0%
 
0.54%
 
2.92%
 
$
18.93

 
107.92%
July 29, 2014
 
$
17.62

 
2.42
 
51.3%
 
0.83%
 
3.40%
 
$
19.02

 
107.92%
November 17, 2014
 
$
10.85

 
3.12
 
52.9%
 
1.18%
 
4.30%
 
$
10.61

 
97.79%
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]
Restricted share units, restricted stock awards, deferred stock allocation and performance share activity under our long-term equity plans and Directors’ Plans are as follows:
 
2014
 
2013
 
2012
 
Shares
 
Shares
 
Shares
Stock options:
 
 
 
 
 
Outstanding at beginning of year
—

 
—

 
—

Granted during the year
250,000

 
—

 
—

Vested
—

 
—

 
—

Forfeited/canceled
—

 
—

 
—

Outstanding at end of year
250,000

 
—

 
—

Restricted awards:
 
 
 
 
 
Outstanding and restricted at beginning of year
586,084

 
393,787

 
425,166

Granted during the year
531,030

 
396,844

 
151,869

Vested
(423,822
)
 
(118,973
)
 
(161,741
)
Forfeited/canceled
(170,116
)
 
(85,574
)
 
(21,507
)
Outstanding and restricted at end of year
523,176

 
586,084

 
393,787

Performance shares:

 

 

Outstanding at beginning of year
1,040,453

 
772,484

 
877,435

Granted during the year 1
1,233,685

 
806,271

 
501,346

Issued 2
(796,624
)
 
(289,054
)
 
(574,518
)
Forfeited/canceled
(405,138
)
 
(249,248
)
 
(31,779
)
Outstanding at end of year
1,072,376

 
1,040,453

 
772,484

Vested or expected to vest as of
    December 31, 2014
1,723,728

 
 
 
 
Directors’ retainer and voluntary shares:

 

 

Outstanding at beginning of year
7,329

 
2,880

 
2,611

Granted during the year
2,281

 
8,136

 
1,823

Forfeited/canceled
—

 
(1,521
)
 
—

Vested
(9,610
)
 
(2,166
)
 
(1,554
)
Outstanding at end of year
—

 
7,329

 
2,880

Reserved for future grants or awards at end
    of year:
 
 
 
 
 
Employee plans
6,222,434

 
 
 
 
Directors’ plans
225,955

 
 
 
 
Total
6,448,389

 
 
 
 
                                         
1
The shares granted in 2013 and 2012 include 54,051 shares and 191,506 shares, respectively, related to the 23% and 50% payouts associated with the prior-year pool as actual payout exceeded target.
2
For the year ended December 31, 2014, the shares vesting on December 31, 2013 were valued as of February 10, 2014, and the shares vesting due to the change in a majority of our Board of Directors that triggered the acceleration of vesting and payout of outstanding equity grants under our equity plans on August 6, 2014, were valued as of that date.
For the years ended December 31, 2013 and December 31, 2012, the shares vested on December 31, 2012 and December 31, 2011, respectively, and were valued on February 21, 2013 and February 13, 2012, respectively.
Employee Stock Awards Outstanding [Table Text Block]
A summary of our outstanding share-based awards as of December 31, 2014 is shown below:
 
Shares
 
Weighted
Average
Grant Date
Fair Value
Outstanding, beginning of year
1,633,866

 

$40.20

Granted
2,016,996

 

$16.67

Vested
(1,230,056
)
 

$38.48

Forfeited/expired
(575,254
)
 

$24.76

Outstanding, end of year
1,845,552

 

$16.55