Quarterly report pursuant to Section 13 or 15(d)

SUPPLEMENTARY GUARANTOR INFORMATION

v3.10.0.1
SUPPLEMENTARY GUARANTOR INFORMATION
6 Months Ended
Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Guarantor Information [Text Block]
NOTE 22 - SUPPLEMENTARY GUARANTOR INFORMATION
The accompanying unaudited condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” Certain of our subsidiaries (the "Guarantors") have guaranteed the obligations under the $1.075 billion 5.75% 2025 Senior Notes issued by Cleveland-Cliffs Inc. See NOTE 7 - DEBT AND CREDIT FACILITIES for further information.
The following presents the unaudited condensed consolidating financial information for: (i) the Parent Company and the Issuer of the guaranteed obligations (Cleveland-Cliffs Inc.); (ii) the Guarantor subsidiaries, on a combined basis; (iii) the non-guarantor subsidiaries, on a combined basis; (iv) consolidating eliminations; and (v) Cleveland-Cliffs Inc. and subsidiaries on a consolidated basis. Each Guarantor subsidiary is 100% owned by the Parent Company as of June 30, 2018 and December 31, 2017. The unaudited condensed consolidating financial information is presented as if the Guarantor structure at June 30, 2018 existed for all periods presented. As a result, the Guarantor subsidiaries within the unaudited condensed consolidating financial information as of June 30, 2018 and December 31, 2017 and for the three and six months ended June 30, 2018 and 2017 include results of subsidiaries that were previously less than wholly-owned and were historically non-guarantors until 100% ownership was obtained.
Each of the Guarantor subsidiaries fully and unconditionally guarantee, on a joint and several basis, the obligations of Cleveland-Cliffs Inc. under the $1.075 billion 5.75% 2025 Senior Notes. The guarantee of a Guarantor subsidiary will be automatically and unconditionally released and discharged, and such Guarantor subsidiary’s obligations under the guarantee and the related indenture governing the $1.075 billion 5.75% 2025 Senior Notes (the “Indenture”) will be automatically and unconditionally released and discharged, upon:
(a) any sale, exchange, transfer or disposition of such Guarantor subsidiary (by merger, consolidation, or the sale of) or the capital stock of such Guarantor subsidiary after which the applicable Guarantor subsidiary is no longer a subsidiary of the Company or the sale of all or substantially all of such Guarantor subsidiary’s assets (other than by lease);
(b) upon designation of any Guarantor subsidiary as an “excluded subsidiary” (as defined in the Indenture); or
(c) upon defeasance or satisfaction and discharge of the Indenture.
Each entity in the unaudited consolidating financial information follows the same accounting policies as described in the consolidated financial statements. The accompanying unaudited condensed consolidating financial information has been presented on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries, and intra-entity activity and balances.
Unaudited Condensed Consolidating Statement of Financial Position
As of June 30, 2018
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
798.4

 
$
1.6

 
$
2.5

 
$

 
$
802.5

Accounts receivable, net
8.0

 
148.2

 
0.1

 
(3.7
)
 
152.6

Inventories

 
256.4

 

 

 
256.4

Supplies and other inventories

 
88.6

 

 

 
88.6

Derivative assets
0.1

 
174.6

 

 

 
174.7

Current assets of discontinued operations

 

 
45.3

 

 
45.3

Other current assets
15.9

 
7.7

 
3.2

 

 
26.8

TOTAL CURRENT ASSETS
822.4

 
677.1

 
51.1

 
(3.7
)
 
1,546.9

PROPERTY, PLANT AND EQUIPMENT, NET
15.5

 
966.2

 
99.6

 

 
1,081.3

OTHER ASSETS
 
 
 
 
 
 
 
 
 
Deposits for property, plant and equipment

 
3.8

 
81.9

 

 
85.7

Income tax receivable
219.9

 

 

 

 
219.9

Investment in subsidiaries
1,299.9

 
32.8

 

 
(1,332.7
)
 

Long-term intercompany notes

 

 
227.4

 
(227.4
)
 

Other non-current assets
8.7

 
107.3

 
1.7

 

 
117.7

TOTAL OTHER ASSETS
1,528.5

 
143.9

 
311.0

 
(1,560.1
)
 
423.3

TOTAL ASSETS
$
2,366.4

 
$
1,787.2

 
$
461.7

 
$
(1,563.8
)
 
$
3,051.5

LIABILITIES
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
Accounts payable
$
5.2

 
$
88.8

 
$
28.7

 
$
(3.7
)
 
$
119.0

Accrued expenses
13.6

 
71.0

 
0.5

 

 
85.1

Accrued interest
43.1

 

 

 

 
43.1

Partnership distribution payable

 
44.2

 

 

 
44.2

Current liabilities of discontinued operations

 

 
117.3

 

 
117.3

Other current liabilities
1.8

 
62.7

 
1.7

 

 
66.2

TOTAL CURRENT LIABILITIES
63.7

 
266.7

 
148.2

 
(3.7
)
 
474.9

PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES
65.9

 
428.4

 
(249.3
)
 

 
245.0

ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS

 
145.3

 
27.0

 

 
172.3

LONG-TERM DEBT
2,297.0

 

 

 

 
2,297.0

NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS

 

 
10.3

 

 
10.3

LONG-TERM INTERCOMPANY NOTES
227.4

 

 

 
(227.4
)
 

OTHER LIABILITIES
18.7

 
139.0

 
0.6

 

 
158.3

TOTAL LIABILITIES
2,672.7

 
979.4

 
(63.2
)
 
(231.1
)
 
3,357.8

EQUITY
 
 
 
 
 
 
 
 
 
TOTAL CLIFFS SHAREHOLDERS' DEFICIT
(306.3
)
 
807.8

 
524.9

 
(1,332.7
)
 
(306.3
)
TOTAL DEFICIT
(306.3
)
 
807.8

 
524.9

 
(1,332.7
)
 
(306.3
)
TOTAL LIABILITIES AND DEFICIT
$
2,366.4

 
$
1,787.2

 
$
461.7

 
$
(1,563.8
)
 
$
3,051.5

Unaudited Condensed Consolidating Statement of Financial Position
As of December 31, 2017
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
948.9

 
$
2.1

 
$
27.3

 
$

 
$
978.3

Accounts receivable, net
4.5

 
102.9

 

 
(0.7
)
 
106.7

Inventories

 
138.4

 

 

 
138.4

Supplies and other inventories

 
88.8

 

 

 
88.8

Derivative assets

 
37.9

 

 

 
37.9

Current assets of discontinued operations

 

 
118.5

 

 
118.5

Loans to and accounts receivable from the Canadian Entities
44.7

 
6.9

 

 

 
51.6

Other current assets
16.4

 
7.5

 
0.5

 

 
24.4

TOTAL CURRENT ASSETS
1,014.5

 
384.5

 
146.3

 
(0.7
)
 
1,544.6

PROPERTY, PLANT AND EQUIPMENT, NET
17.5

 
959.0

 
57.3

 

 
1,033.8

OTHER ASSETS
 
 
 
 
 
 
 
 
 
Deposits for property, plant and equipment

 
1.3

 
16.5

 

 
17.8

Income tax receivable
235.3

 

 

 

 
235.3

Non-current assets of discontinued operations

 

 
20.3

 

 
20.3

Investment in subsidiaries
1,024.3

 
29.9

 

 
(1,054.2
)
 

Long-term intercompany notes

 

 
242.0

 
(242.0
)
 

Other non-current assets
7.8

 
91.7

 
2.1

 

 
101.6

TOTAL OTHER ASSETS
1,267.4

 
122.9

 
280.9

 
(1,296.2
)
 
375.0

TOTAL ASSETS
$
2,299.4

 
$
1,466.4

 
$
484.5

 
$
(1,296.9
)
 
$
2,953.4

LIABILITIES
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
Accounts payable
$
7.1

 
$
89.7

 
$
3.4

 
$
(0.7
)
 
$
99.5

Accrued expenses
19.0

 
59.9

 
0.2

 

 
79.1

Accrued interest
31.4

 

 

 

 
31.4

Contingent claims
55.6

 

 

 

 
55.6

Partnership distribution payable

 
44.2

 

 

 
44.2

Current liabilities of discontinued operations

 

 
75.0

 

 
75.0

Other current liabilities
2.1

 
63.5

 
1.8

 

 
67.4

TOTAL CURRENT LIABILITIES
115.2

 
257.3

 
80.4

 
(0.7
)
 
452.2

PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES
66.4

 
430.6

 
(239.3
)
 

 
257.7

ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS

 
140.6

 
27.1

 

 
167.7

LONG-TERM DEBT
2,304.2

 

 

 

 
2,304.2

NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS

 

 
52.2

 

 
52.2

LONG-TERM INTERCOMPANY NOTES
242.0

 

 

 
(242.0
)
 

OTHER LIABILITIES
15.7

 
147.2

 
0.6

 

 
163.5

TOTAL LIABILITIES
2,743.5

 
975.7

 
(79.0
)
 
(242.7
)
 
3,397.5

EQUITY
 
 
 
 
 
 
 
 
 
TOTAL CLIFFS SHAREHOLDERS' DEFICIT
(444.1
)
 
490.7

 
563.3

 
(1,054.2
)
 
(444.3
)
NONCONTROLLING INTEREST

 

 
0.2

 

 
0.2

TOTAL DEFICIT
(444.1
)
 
490.7

 
563.5

 
(1,054.2
)
 
(444.1
)
TOTAL LIABILITIES AND DEFICIT
$
2,299.4

 
$
1,466.4

 
$
484.5

 
$
(1,296.9
)
 
$
2,953.4


Unaudited Condensed Consolidating Statement of Operations and Comprehensive Income
For the Three Months Ended June 30, 2018
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
REVENUES FROM PRODUCT SALES AND SERVICES
 
 
 
 
 
 
 
 
 
Product
$

 
$
672.0

 
$

 
$

 
$
672.0

Freight and venture partners' cost reimbursements

 
42.3

 

 

 
42.3

 

 
714.3

 

 

 
714.3

COST OF GOODS SOLD AND OPERATING EXPENSES

 
(429.8
)
 

 

 
(429.8
)
SALES MARGIN

 
284.5

 

 

 
284.5

OTHER OPERATING EXPENSE
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
(19.7
)
 
(5.4
)
 
(1.1
)
 

 
(26.2
)
Miscellaneous – net
(0.2
)
 
(3.6
)
 
(0.3
)
 

 
(4.1
)
 
(19.9
)
 
(9.0
)
 
(1.4
)
 

 
(30.3
)
OPERATING INCOME (LOSS)
(19.9
)
 
275.5

 
(1.4
)
 

 
254.2

OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
 
 
Interest expense, net
(30.8
)
 
(0.6
)
 
0.2

 

 
(31.2
)
Gain on extinguishment of debt
0.2

 

 

 

 
0.2

Other non-operating income (expense)
(0.8
)
 
0.2

 
5.0

 

 
4.4

 
(31.4
)
 
(0.4
)
 
5.2

 

 
(26.6
)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(51.3
)
 
275.1

 
3.8

 

 
227.6

INCOME TAX BENEFIT (EXPENSE)
2.1

 
(0.1
)
 
(0.2
)
 

 
1.8

EQUITY IN INCOME (LOSS) OF SUBSIDIARIES
210.4

 
4.6

 

 
(215.0
)
 

INCOME (LOSS) FROM CONTINUING OPERATIONS
161.2

 
279.6

 
3.6

 
(215.0
)
 
229.4

INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
3.9

 
(0.3
)
 
(67.9
)
 

 
(64.3
)
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$
165.1

 
$
279.3

 
$
(64.3
)
 
$
(215.0
)
 
$
165.1

OTHER COMPREHENSIVE INCOME
9.1

 
6.0

 
2.2

 
(8.2
)
 
9.1

TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$
174.2

 
$
285.3

 
$
(62.1
)
 
$
(223.2
)
 
$
174.2


Unaudited Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
For the Three Months Ended June 30, 2017
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
REVENUES FROM PRODUCT SALES AND SERVICES
 
 
 
 
 
 
 
 
 
Product
$

 
$
417.0

 
$

 
$

 
$
417.0

Freight and venture partners' cost reimbursements

 
54.3

 

 

 
54.3

 

 
471.3

 

 

 
471.3

COST OF GOODS SOLD AND OPERATING EXPENSES

 
(326.6
)
 

 

 
(326.6
)
SALES MARGIN

 
144.7

 

 

 
144.7

OTHER OPERATING EXPENSE
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
(19.7
)
 
(5.7
)
 
(1.2
)
 

 
(26.6
)
Miscellaneous – net
(0.8
)
 
(3.7
)
 
1.6

 

 
(2.9
)
 
(20.5
)
 
(9.4
)
 
0.4

 

 
(29.5
)
OPERATING INCOME (LOSS)
(20.5
)
 
135.3

 
0.4

 

 
115.2

OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
 
 
Interest expense, net
(30.4
)
 

 
0.3

 

 
(30.1
)
Loss on extinguishment of debt
(4.9
)
 

 

 

 
(4.9
)
Other non-operating income (expense)
(1.0
)
 
(0.8
)
 
4.3

 

 
2.5

 
(36.3
)
 
(0.8
)
 
4.6

 

 
(32.5
)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(56.8
)
 
134.5

 
5.0

 

 
82.7

INCOME TAX BENEFIT (EXPENSE)
8.0

 
0.8

 
(7.7
)
 

 
1.1

EQUITY IN INCOME (LOSS) OF SUBSIDIARIES
129.6

 
3.4

 

 
(133.0
)
 

INCOME (LOSS) FROM CONTINUING OPERATIONS
80.8

 
138.7

 
(2.7
)
 
(133.0
)
 
83.8

INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
(49.0
)
 
0.7

 
(5.4
)
 

 
(53.7
)
NET INCOME (LOSS)
31.8

 
139.4

 
(8.1
)
 
(133.0
)
 
30.1

LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST

 
1.7

 

 

 
1.7

NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$
31.8

 
$
141.1

 
$
(8.1
)
 
$
(133.0
)
 
$
31.8

OTHER COMPREHENSIVE INCOME (LOSS)
5.0

 
5.7

 
(1.5
)
 
(4.3
)
 
4.9

TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$
36.8

 
$
146.8

 
$
(9.6
)
 
$
(137.3
)
 
$
36.7

Unaudited Condensed Consolidating Statement of Operations and Comprehensive Income
For the Six Months Ended June 30, 2018
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
REVENUES FROM PRODUCT SALES AND SERVICES
 
 
 
 
 
 
 
 
 
Product
$

 
$
841.2

 
$

 
$

 
$
841.2

Freight and venture partners' cost reimbursements

 
53.1

 

 

 
53.1

 

 
894.3

 

 

 
894.3

COST OF GOODS SOLD AND OPERATING EXPENSES

 
(548.3
)
 

 

 
(548.3
)
SALES MARGIN

 
346.0

 

 

 
346.0

OTHER OPERATING EXPENSE
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
(39.8
)
 
(9.7
)
 
(1.8
)
 

 
(51.3
)
Miscellaneous – net
(0.4
)
 
(8.9
)
 
(0.9
)
 

 
(10.2
)
 
(40.2
)
 
(18.6
)
 
(2.7
)
 

 
(61.5
)
OPERATING INCOME
(40.2
)
 
327.4

 
(2.7
)
 

 
284.5

OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
 
 
Interest expense, net
(62.7
)
 
(1.4
)
 
0.5

 

 
(63.6
)
Gain on extinguishment of debt
0.2

 

 

 

 
0.2

Other non-operating income (expense)
(1.7
)
 
0.7

 
9.8

 

 
8.8

 
(64.2
)
 
(0.7
)
 
10.3

 

 
(54.6
)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(104.4
)
 
326.7

 
7.6

 

 
229.9

INCOME TAX EXPENSE
(13.5
)
 
(0.2
)
 
(0.2
)
 

 
(13.9
)
EQUITY IN INCOME (LOSS) OF SUBSIDIARIES
194.7

 
9.1

 

 
(203.8
)
 

INCOME (LOSS) FROM CONTINUING OPERATIONS
76.8

 
335.6

 
7.4

 
(203.8
)
 
216.0

INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
4.0

 
(0.1
)
 
(139.1
)
 

 
(135.2
)
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$
80.8

 
$
335.5

 
$
(131.7
)
 
$
(203.8
)
 
$
80.8

OTHER COMPREHENSIVE INCOME
16.8

 
11.9

 
3.0

 
(14.9
)
 
16.8

TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$
97.6

 
$
347.4

 
$
(128.7
)
 
$
(218.7
)
 
$
97.6

Unaudited Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
For the Six Months Ended June 30, 2017
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
REVENUES FROM PRODUCT SALES AND SERVICES
 
 
 
 
 
 
 
 
 
Product
$

 
$
664.3

 
$

 
$

 
$
664.3

Freight and venture partners' cost reimbursements

 
93.2

 

 

 
93.2

 

 
757.5

 

 

 
757.5

COST OF GOODS SOLD AND OPERATING EXPENSES

 
(563.8
)
 

 

 
(563.8
)
SALES MARGIN

 
193.7

 

 

 
193.7

OTHER OPERATING INCOME (EXPENSE)
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
(39.2
)
 
(10.1
)
 
(2.4
)
 

 
(51.7
)
Miscellaneous – net
(0.9
)
 
(9.2
)
 
16.7

 

 
6.6

 
(40.1
)
 
(19.3
)
 
14.3

 

 
(45.1
)
OPERATING INCOME
(40.1
)
 
174.4

 
14.3

 

 
148.6

OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
 
 
Interest expense, net
(72.0
)
 

 
0.5

 

 
(71.5
)
Loss on extinguishment of debt
(76.8
)
 

 

 

 
(76.8
)
Other non-operating income (expense)
(2.0
)
 
(1.6
)
 
8.6

 

 
5.0

 
(150.8
)
 
(1.6
)
 
9.1

 

 
(143.3
)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(190.9
)
 
172.8

 
23.4

 

 
5.3

INCOME TAX BENEFIT (EXPENSE)
0.2

 

 
(0.2
)
 

 

EQUITY IN INCOME OF SUBSIDIARIES
243.0

 
6.6

 

 
(249.6
)
 

INCOME (LOSS) FROM CONTINUING OPERATIONS
52.3

 
179.4

 
23.2

 
(249.6
)
 
5.3

INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax
(48.6
)
 
0.9

 
42.7

 

 
(5.0
)
NET INCOME (LOSS)
3.7

 
180.3

 
65.9

 
(249.6
)
 
0.3

LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST

 
3.4

 

 

 
3.4

NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$
3.7

 
$
183.7

 
$
65.9

 
$
(249.6
)
 
$
3.7

OTHER COMPREHENSIVE INCOME (LOSS)
2.0

 
16.5

 
(19.3
)
 
2.7

 
1.9

TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$
5.7

 
$
200.2

 
$
46.6

 
$
(246.9
)
 
$
5.6


Unaudited Condensed Consolidating Statement of Cash Flows
For the Six Months Ended June 30, 2018
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided (used) by operating activities
$
(82.1
)
 
$
86.8

 
$
(54.0
)
 
$

 
$
(49.3
)
INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment
(0.3
)
 
(24.9
)
 
(16.9
)
 

 
(42.1
)
Deposits for property, plant and equipment

 
(3.6
)
 
(68.7
)
 

 
(72.3
)
Intercompany investing
(35.2
)
 
(5.5
)
 
14.6

 
26.1

 

Proceeds on sale of assets

 
0.4

 
14.2

 

 
14.6

Net cash used by investing activities
(35.5
)
 
(33.6
)
 
(56.8
)
 
26.1

 
(99.8
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
Debt issuance costs
(1.5
)
 

 

 

 
(1.5
)
Repurchase of debt
(15.3
)
 

 

 

 
(15.3
)
Intercompany financing
(14.6
)
 
(52.7
)
 
93.4

 
(26.1
)
 

Other financing activities
(1.5
)
 
(1.0
)
 
(6.4
)
 

 
(8.9
)
Net cash used by financing activities
(32.9
)
 
(53.7
)
 
87.0

 
(26.1
)
 
(25.7
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

 
(1.0
)
 

 
(1.0
)
DECREASE IN CASH AND CASH EQUIVALENTS, INCLUDING CASH CLASSIFIED WITHIN CURRENT ASSETS OF DISCONTINUED OPERATIONS
(150.5
)
 
(0.5
)
 
(24.8
)
 

 
(175.8
)
LESS: INCREASE IN CASH AND CASH EQUIVALENTS CLASSIFIED WITHIN CURRENT ASSETS OF DISCONTINUED OPERATIONS

 

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS
(150.5
)
 
(0.5
)
 
(24.8
)
 

 
(175.8
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
948.9

 
2.1

 
27.3

 

 
978.3

CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
798.4

 
$
1.6

 
$
2.5

 
$

 
$
802.5


Unaudited Condensed Consolidating Statement of Cash Flows
For the Six Months Ended June 30, 2017
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided (used) by operating activities
$
(128.8
)
 
$
106.3

 
$
90.3

 
$

 
$
67.8

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment
(0.8
)
 
(42.7
)
 
(0.8
)
 

 
(44.3
)
Deposits for property, plant and equipment

 
(5.1
)
 

 

 
(5.1
)
Intercompany investing
43.5

 
(1.1
)
 
(45.0
)
 
2.6

 

Proceeds on sales of assets

 
1.1

 

 

 
1.1

Net cash provided (used) by investing activities
42.7

 
(47.8
)
 
(45.8
)
 
2.6

 
(48.3
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
Net proceeds from issuance of common shares
661.3

 

 

 

 
661.3

Proceeds from issuance of debt
500.0

 

 

 

 
500.0

Debt issuance costs
(8.5
)
 

 

 

 
(8.5
)
Repurchase of debt
(1,154.0
)
 

 

 

 
(1,154.0
)
Distributions of partnership equity

 
(8.7
)
 

 

 
(8.7
)
Intercompany financing
45.0

 
(44.3
)
 
1.9

 
(2.6
)
 

Other financing activities
(0.6
)
 
(5.0
)
 
(8.3
)
 

 
(13.9
)
Net cash used by financing activities
43.2

 
(58.0
)
 
(6.4
)
 
(2.6
)
 
(23.8
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

 
2.4

 

 
2.4

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, INCLUDING CASH CLASSIFIED WITHIN CURRENT ASSETS OF DISCONTINUED OPERATIONS
(42.9
)
 
0.5

 
40.5

 

 
(1.9
)
LESS: INCREASE IN CASH AND CASH EQUIVALENTS CLASSIFIED WITHIN CURRENT ASSETS OF DISCONTINUED OPERATIONS

 

 
40.5

 

 
40.5

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(42.9
)
 
0.5

 

 

 
(42.4
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
283.4

 
2.5

 
26.9

 

 
312.8

CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
240.5

 
$
3.0

 
$
26.9

 
$

 
$
270.4