Quarterly report pursuant to Section 13 or 15(d)

DISCONTINUED OPERATIONS (Tables)

v3.5.0.2
DISCONTINUED OPERATIONS (Tables)
6 Months Ended
Jun. 30, 2016
Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Line Items]  
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures
The chart below provides an asset group breakout for each financial statement line impacted by discontinued operations.
(In Millions)
 
 
 
 
Canadian Operations
 
 
 
 
 
North American Coal
 
Eastern Canadian Iron Ore
Other
Total Canadian Operations
 
Total of Discontinued Operations
Statements of Unaudited Condensed Consolidated Operations
Income (Loss) from Discontinued Operations, net of tax
QTD
June 30, 2016
$
(0.7
)
 
$
0.3

$

$
0.3

 
$
(0.4
)
Income (Loss) from Discontinued Operations, net of tax
QTD
June 30, 2015
$
(31.5
)
 
$
134.9

$

$
134.9

 
$
103.4

Income (Loss) from Discontinued Operations, net of tax
YTD
June 30, 2016
$
(2.0
)
 
$
4.1

$

$
4.1

 
$
2.1

Income (Loss) from Discontinued Operations, net of tax
YTD
June 30, 2015
$
(107.2
)
 
$
(717.8
)
$
(0.1
)
$
(717.9
)
 
$
(825.1
)
 
 
 
 
 
 
 
 
 
Statements of Unaudited Condensed Consolidated Financial Position
Short-term assets of discontinued operations
As of
June 30, 2016
$

 
$

$

$

 
$

Short-term liabilities of discontinued operations
As of
June 30, 2016
$
4.4

 
$

$

$

 
$
4.4

Short-term assets of discontinued operations
As of
December 31, 2015
$
14.9

 
$

$

$

 
$
14.9

Short-term liabilities of discontinued operations
As of
December 31, 2015
$
6.9

 
$

$

$

 
$
6.9

 
 
 
 
 
 
 
 
 
Non-Cash Operating and Investing Activities
Depreciation, depletion and amortization:
YTD
June 30, 2015
$
3.2

 
$

$

$

 
$
3.2

Purchase of property, plant and equipment
YTD
June 30, 2015
$
5.5

 
$

$

$

 
$
5.5

Impairment of other long-lived assets
YTD
June 30, 2015
$
73.4

 
$

$

$

 
$
73.4

North American Coal [Member]  
Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Line Items]  
Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities
Recorded Assets and Liabilities
 
 
(In Millions)
Assets and Liabilities of Discontinued Operations(1)
 
June 30,
2016
 
December 31,
2015
Other current assets
 
$

 
$
14.9

Total assets of discontinued operations
 
$

 
$
14.9

 
 
 
 
 
Accrued liabilities
 
$
0.3

 
$

Other current liabilities(1)
 
4.1

 
6.9

Total liabilities of discontinued operations
 
$
4.4

 
$
6.9

(1) At June 30, 2016 and December 31, 2015, we had $5.8 million and $7.8 million, respectively, of contingent liabilities associated with our exit from the coal business recorded on our parent company.
Schedule of Disposal Groups, including Discontinued Operations, Income Statement
 
 
(In Millions)
 
 
Three Months Ended June 30,
 
Six Months Ended
June 30,
Loss from Discontinued Operations
 
2016
 
2015
 
2016
 
2015
Revenues from product sales and services
 
$

 
$
142.7

 
$

 
$
259.3

Cost of goods sold and operating expenses
 

 
(167.0
)
 

 
(274.3
)
Sales margin
 

 
(24.3
)
 

 
(15.0
)
Other operating expense
 
(0.8
)
 
(7.1
)
 
(2.0
)
 
(18.3
)
Other expense
 

 
(0.5
)
 

 
(1.0
)
Loss from discontinued operations before income taxes
 
(0.8
)
 
(31.9
)
 
(2.0
)
 
(34.3
)
Impairment of long-lived assets
 

 

 

 
(73.4
)
Income tax benefit (expense)
 
0.1

 
0.4

 

 
0.5

Loss from discontinued operations, net of tax
 
$
(0.7
)
 
$
(31.5
)
 
$
(2.0
)
 
$
(107.2
)
Canadian Entities [Member]  
Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Line Items]  
Schedule of Disposal Groups, including Discontinued Operations, Income Statement
Loss) on Discontinued Operations
Our decision to exit Canada represented a strategic shift in our business. For this reason, our previously reported Eastern Canadian Iron Ore and Ferroalloys operating segment results for all periods prior to the respective deconsolidations as well as costs to exit are classified as discontinued operations.
 
 
(In Millions)
 
 
Three Months Ended
June 30,
 
Six Months Ended
June,
Gain (Loss) from Discontinued Operations
 
2016
 
2015
 
2016
 
2015
Revenues from product sales and services
 
$

 
$

 
$

 
$
11.3

Cost of goods sold and operating expenses
 

 

 

 
(11.1
)
Sales margin
 

 

 

 
0.2

Other operating expense
 

 
(0.5
)
 

 
(33.8
)
Other expense
 

 

 

 
(1.0
)
Loss from discontinued operations before income taxes
 

 
(0.5
)
 

 
(34.6
)
Gain (loss) from deconsolidation
 
0.3

 
134.7

 
4.1

 
(684.0
)
Income tax benefit (expense)
 

 
0.7

 

 
0.7

Gain (loss) from discontinued operations, net of tax
 
$
0.3

 
$
134.9

 
$
4.1

 
$
(717.9
)
Discontinued Operations, Items Measured at Fair Value on a Non-Recurring Basis
Items Measured at Fair Value on a Non-Recurring Basis
The following table presents information about the financial assets and liabilities that were measured on a fair value basis at June 30, 2016 for the Canadian Operations. The table also indicates the fair value hierarchy of the valuation techniques used to determine such fair value.
 
 
(In Millions)
 
 
June 30, 2016
Description
 
Quoted Prices in Active
Markets for Identical Assets/
Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
 
Total Gains
Assets:
 
 
 
 
 
 
 
 
 
 
Loans to and accounts receivables from the Canadian Entities
 
$

 
$

 
$
70.2

 
$
70.2

 
$
4.1

Liabilities:
 
 
 
 
 
 
 
 
 
 
Contingent liabilities
 
$

 
$

 
$
38.7

 
$
38.7

 
$

PreTax Exit Costs
Canadian Entities gain from deconsolidation totaled $0.3 million and $4.1 million for the three and six months ended June 30, 2016, respectively, which included the following:
 
 
(In Millions)
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2016
 
2015
 
2016
 
2015
Investment impairment on deconsolidation1
 
$
0.3

 
$
(4.4
)
 
$
4.1

 
$
(480.4
)
Contingent liabilities
 

 
139.1

 

 
(203.6
)
Total gain (loss) from deconsolidation
 
$
0.3

 
$
134.7

 
$
4.1

 
$
(684.0
)
 
 
 
 
 
 
 
 
 
1 Includes the adjustment to fair value of our remaining interest in the Canadian Entities.