Annual report pursuant to Section 13 and 15(d)

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

v2.4.0.6
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2012
Segment Reporting Information [Line Items]  
Schedule Of Subsidiaries
The consolidated financial statements include our accounts and the accounts of our wholly owned and majority-owned subsidiaries, including the following operations:
Name
 
Location
 
Ownership Interest
 
Operation
Northshore
 
Minnesota
 
100.0%
 
Iron Ore
United Taconite
 
Minnesota
 
100.0%
 
Iron Ore
Wabush
 
Newfoundland and Labrador/Quebec, Canada
 
100.0%
 
Iron Ore
Bloom Lake
 
Quebec, Canada
 
75.0%
 
Iron Ore
Tilden
 
Michigan
 
85.0%
 
Iron Ore
Empire
 
Michigan
 
79.0%
 
Iron Ore
Koolyanobbing
 
Western Australia
 
100.0%
 
Iron Ore
Pinnacle
 
West Virginia
 
100.0%
 
Coal
Oak Grove
 
Alabama
 
100.0%
 
Coal
CLCC
 
West Virginia
 
100.0%
 
Coal
Schedule of Equity Method Investments
The following table presents the detail of our investments in unconsolidated ventures and where those investments are classified in the Statements of Consolidated Financial Position as of December 31, 2012 and December 31, 2011. Parentheses indicate a net liability.
 
 
 
 
 
 
 
 
(In Millions)
Investment
 
Classification
 
Accounting
Method
 
Interest
Percentage
 
December 31, 2012
 
December 31, 2011
Amapá
 
Investments in ventures
 
Equity Method
 
30
 
$
101.9

 
$
498.6

Cockatoo
 
Other liabilities
 
Equity Method
 
50
 
(25.3
)
 
(15.0
)
Hibbing
 
Other liabilities
 
Equity Method
 
23
 
(2.1
)
 
(6.8
)
Other
 
Investments in ventures
 
Equity Method
 
Various
 
33.9

 
28.0

 
 
 
 
 
 
 
 
$
108.4

 
$
504.8

Estimated Useful Lives Of Intangible Assets Subject To Periodic Amortization On Straight Line Basis
Other intangible assets are subject to periodic amortization on a straight-line basis over their estimated useful lives as follows:
Intangible Asset
 
Useful Life (years)
Permits
 
15 - 40
Utility contracts
 
5
Leases
 
4.5 - 17.5
Reimbursements Revenue Disclosure
The following table is a summary of reimbursements in our U.S. Iron Ore operations for the years ended December 31, 2012, 2011 and 2010:
 
 
(In Millions)
 
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
Reimbursements for:
 
 
 
 
 
 
Freight
 
$
142.0

 
$
128.4

 
$
83.6

Venture partners’ cost
 
108.8

 
95.9

 
139.8

Total reimbursements
 
$
250.8

 
$
224.3

 
$
223.4

U.S. Iron Ore and Eastern Canadian Iron Ore [Member]
 
Segment Reporting Information [Line Items]  
Depreciation Methods and Useful Lives
Depreciation is provided over the following estimated useful lives:
Asset Class
 
Basis
 
Life
Buildings
 
Straight line
 
45 Years
Mining equipment
 
Straight line/Double declining
balance
 
10 to 20 Years
Processing equipment
 
Straight line
 
15 to 45 Years
Information technology
 
Straight line
 
2 to 7 Years
Asia Pacific Iron Ore [Member]
 
Segment Reporting Information [Line Items]  
Depreciation Methods and Useful Lives
Depreciation is calculated by the straight-line method or production output basis, not to exceed the mine life, provided over the following estimated useful lives:
Asset Class
 
Basis
 
Life
Plant and equipment
 
Straight line
 
5 to 10 Years
Plant and equipment and mine assets
 
Production output
 
10 Years
Motor vehicles, furniture & equipment
 
Straight line
 
3 to 5 Years
North American Coal [Member]
 
Segment Reporting Information [Line Items]  
Depreciation Methods and Useful Lives
Depreciation is provided over the following estimated useful lives:
Asset Class
 
Basis
 
Life
Buildings
 
Straight line
 
30 Years
Mining equipment
 
Straight line
 
2 to 22 Years
Processing equipment
 
Straight line
 
2 to 30 Years
Information technology
 
Straight line
 
2 to 3 Years