Quarterly report pursuant to Section 13 or 15(d)

NEW ACCOUNTING STANDARDS (Tables)

v3.10.0.1
NEW ACCOUNTING STANDARDS (Tables)
9 Months Ended
Sep. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The effect of the retrospective presentation change related to the net periodic cost of our defined benefit pension and other postretirement employee benefits plans on our Statements of Unaudited Condensed Consolidated Operations was as follows:
 
($ in Millions)
 
Three Months Ended September 30, 2017
 
Nine Months Ended
September 30, 2017
 
As Revised
 
Without Adoption of ASU 2017-07
 
Effect of Change
 
As Revised
 
Without Adoption of ASU 2017-07
 
Effect of Change
Cost of goods sold and operating expenses
$
(438.9
)
 
$
(439.5
)
 
$
0.6

 
$
(1,002.7
)
 
$
(1,004.4
)
 
$
1.7

Selling, general and administrative expenses
$
(23.8
)
 
$
(21.8
)
 
$
(2.0
)
 
$
(75.5
)
 
$
(69.6
)
 
$
(5.9
)
Miscellaneous – net
$
(5.3
)
 
$
(4.9
)
 
$
(0.4
)
 
$
1.3

 
$
2.4

 
$
(1.1
)
Operating income
$
128.7

 
$
130.5

 
$
(1.8
)
 
$
277.3

 
$
282.6

 
$
(5.3
)
Other non-operating income
$
2.6

 
$
0.8

 
$
1.8

 
$
7.6

 
$
2.3

 
$
5.3

Net Income
$
52.9

 
$
52.9

 
$

 
$
53.2

 
$
53.2

 
$

The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of Topic 606 were as follows:
 
 
($ in Millions)
 
 
Balance at December 31, 2017
 
Adjustments due to Topic 606
 
Balance at January 1, 2018
ASSETS
 
 
 
 
 
 
CURRENT ASSETS
 
 
 


 


Cash and cash equivalents
 
$
978.3

 
$

 
$
978.3

Accounts receivable, net
 
106.7

 
76.6

 
183.3

Inventories
 
138.4

 
(51.4
)
 
87.0

Supplies and other inventories
 
88.8

 

 
88.8

Derivative assets
 
37.9

 
11.6

 
49.5

Income tax receivable
 
13.3

 

 
13.3

Current assets of discontinued operations
 
118.5

 

 
118.5

Loans to and accounts receivable from the Canadian Entities
 
51.6

 

 
51.6

Other current assets
 
11.1

 

 
11.1

TOTAL CURRENT ASSETS
 
1,544.6

 
36.8

 
1,581.4

PROPERTY, PLANT AND EQUIPMENT, NET
 
1,033.8

 

 
1,033.8

OTHER ASSETS
 
 
 
 
 
 
Deposits for property, plant and equipment
 
17.8

 

 
17.8

Income tax receivable
 
235.3

 

 
235.3

Non-current assets of discontinued operations
 
20.3

 

 
20.3

Other non-current assets
 
101.6

 

 
101.6

TOTAL OTHER ASSETS
 
375.0

 

 
375.0

TOTAL ASSETS
 
$
2,953.4

 
$
36.8

 
$
2,990.2

 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
Accounts payable
 
$
99.5

 
$
1.4

 
$
100.9

Accrued expenses
 
79.1

 

 
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
 
67.4

 
1.4

 
68.8

TOTAL CURRENT LIABILITIES
 
452.2

 
2.8

 
455.0

PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES
 
257.7

 

 
257.7

ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
 
167.7

 

 
167.7

LONG-TERM DEBT
 
2,304.2

 

 
2,304.2

NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS
 
52.2

 

 
52.2

OTHER LIABILITIES
 
163.5

 

 
163.5

TOTAL LIABILITIES
 
3,397.5

 
2.8

 
3,400.3

EQUITY
 
 
 
 
 
 
CLIFFS SHAREHOLDERS' DEFICIT
 
(444.3
)
 
34.0

 
(410.3
)
NONCONTROLLING INTEREST
 
0.2

 

 
0.2

TOTAL DEFICIT
 
(444.1
)
 
34.0

 
(410.1
)
TOTAL LIABILITIES AND DEFICIT
 
$
2,953.4

 
$
36.8

 
$
2,990.2

The impact of adoption on our Statements of Unaudited Condensed Consolidated Operations and Statements of Unaudited Condensed Consolidated Financial Position is as follows:
 
($ in Millions)
 
Three Months Ended
 September 30, 2018
 
Nine Months Ended
 September 30, 2018
 
As Reported
 
Balances without Adoption of Topic 606
 
Effect of Change
 
As Reported
 
Balances without Adoption of Topic 606
 
Effect of Change
REVENUES FROM PRODUCT SALES AND SERVICES
 
 
 
 
 
 
 
 
 
 
 
Product
$
684.7

 
$
675.6

 
$
9.1

 
$
1,525.9

 
$
1,471.2

 
$
54.7

Freight and venture partners' cost reimbursements
57.1

 
56.5

 
0.6

 
110.2

 
107.7

 
2.5

 
741.8

 
732.1

 
9.7

 
1,636.1

 
1,578.9

 
57.2

COST OF GOODS SOLD AND OPERATING EXPENSES
(480.2
)
 
(475.9
)
 
(4.3
)
 
(1,028.5
)
 
(1,006.6
)
 
(21.9
)
SALES MARGIN
261.6

 
256.2

 
5.4

 
607.6

 
572.3

 
35.3

OTHER OPERATING EXPENSE
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
(30.1
)
 
(30.1
)
 

 
(81.4
)
 
(81.4
)
 

Miscellaneous – net
(6.0
)
 
(6.0
)
 

 
(16.2
)
 
(16.2
)
 

 
(36.1
)
 
(36.1
)
 

 
(97.6
)
 
(97.6
)
 

OPERATING INCOME
225.5

 
220.1

 
5.4

 
510.0

 
474.7

 
35.3

OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
(29.5
)
 
(29.5
)
 

 
(93.1
)
 
(93.1
)
 

Gain on extinguishment of debt

 

 

 
0.2

 
0.2

 

Other non-operating income
4.3

 
4.3

 

 
13.1

 
13.1

 

 
(25.2
)
 
(25.2
)
 

 
(79.8
)
 
(79.8
)
 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
200.3

 
194.9

 
5.4

 
430.2

 
394.9

 
35.3

INCOME TAX EXPENSE
(0.5
)
 
(0.5
)
 

 
(14.4
)
 
(14.4
)
 

INCOME FROM CONTINUING OPERATIONS
199.8

 
194.4

 
5.4

 
415.8

 
380.5

 
35.3

INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX
238.0

 
238.0

 

 
102.8

 
102.8

 

NET INCOME ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
$
437.8

 
$
432.4

 
$
5.4

 
$
518.6

 
$
483.3

 
$
35.3

INCOME PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS – BASIC
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.67

 
$
0.65

 
$
0.02

 
$
1.40

 
$
1.28

 
$
0.12

Discontinued operations
0.80

 
0.80

 

 
0.35

 
0.35

 

 
$
1.47

 
$
1.45

 
$
0.02

 
$
1.75

 
$
1.63

 
$
0.12

INCOME PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS – DILUTED
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.64

 
$
0.62

 
$
0.02

 
$
1.37

 
$
1.25

 
$
0.12

Discontinued operations
0.77

 
0.77

 

 
0.34

 
0.34

 

 
$
1.41

 
$
1.39

 
$
0.02

 
$
1.71

 
$
1.59

 
$
0.12

AVERAGE NUMBER OF SHARES (IN THOUSANDS)
 
 
 
 
 
 
 
 
 
 
 
Basic
297,878

 
297,878

 
 
 
297,587

 
297,587

 
 
Diluted
310,203

 
310,203

 
 
 
303,518

 
303,518

 
 
 
 
($ in Millions)
 
 
September 30, 2018
 
 
As Reported
 
Balances without Adoption of Topic 606
 
Effect of Change
ASSETS
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 


Cash and cash equivalents
 
$
897.1

 
$
897.1

 
$

Accounts receivable, net
 
141.4

 
34.8

 
106.6

Inventories
 
187.9

 
257.5

 
(69.6
)
Supplies and other inventories
 
88.2

 
88.2

 

Derivative assets
 
190.8

 
156.6

 
34.2

Income tax receivable
 
110.3

 
110.3

 

Current assets of discontinued operations
 
16.1

 
16.1

 

Other current assets
 
18.8

 
18.8

 

TOTAL CURRENT ASSETS
 
1,650.6

 
1,579.4

 
71.2

PROPERTY, PLANT AND EQUIPMENT, NET
 
1,144.8

 
1,144.8

 

OTHER ASSETS
 
 
 
 
 
 
Deposits for property, plant and equipment
 
94.6

 
94.6

 

Income tax receivable
 
113.6

 
113.6

 

Other non-current assets
 
121.4

 
121.4

 

TOTAL OTHER ASSETS
 
329.6

 
329.6

 

TOTAL ASSETS
 
$
3,125.0

 
$
3,053.8

 
$
71.2

 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
Accounts payable
 
$
140.8

 
$
140.1

 
$
0.7

Accrued expenses
 
95.1

 
95.1

 

Accrued interest
 
26.2

 
26.2

 

Partnership distribution payable
 
43.1

 
43.1

 

Current liabilities of discontinued operations
 
14.2

 
14.2

 

Other current liabilities
 
61.3

 
61.5

 
(0.2
)
TOTAL CURRENT LIABILITIES
 
380.7

 
380.2

 
0.5

PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES
 
225.0

 
225.0

 

ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
 
174.4

 
174.4

 

LONG-TERM DEBT
 
2,300.0

 
2,300.0

 

NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS
 
9.3

 
9.3

 

OTHER LIABILITIES
 
121.8

 
121.8

 

TOTAL LIABILITIES
 
3,211.2

 
3,210.7

 
0.5

EQUITY
 
 
 
 
 
 
CLIFFS SHAREHOLDERS' DEFICIT
 
(86.2
)
 
(156.9
)
 
70.7

TOTAL LIABILITIES AND DEFICIT
 
$
3,125.0

 
$
3,053.8

 
$
71.2