Annual report pursuant to Section 13 and 15(d)

STOCK COMPENSATION PLANS (Tables)

v3.10.0.1
STOCK COMPENSATION PLANS (Tables)
12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Approved Grants Equity Plans [Table Text Block]
Following is a summary of approved grants by the Compensation Committee:
Grant Year
 
Vesting Date
 
Plan Issued Under
 
Restricted Stock Units Granted
 
Performance Shares Granted
2018
 
12/31/2020
 
A&R 2015 Equity Plan
 
685,599

 
675,599

2017
 
12/31/2019
 
A&R 2015 Equity Plan
 
532,358

 
249,106

2017
 
12/31/2019
 
Amended 2015 Equity Plan
 
553,725

 
553,725

2016
 
12/31/2018
 
2015 Equity Plan
 
3,406,716

 
—

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
 
Forfeitures to Date
 
Expected to Vest
 
Grant Date
 
Grant Date Fair Value
 
Performance Period
2018
 
675,599

 
2,236

 
673,363

 
2/21/2018
 
$
11.93

 
1/1/2018 - 12/31/2020
2017
 
249,106

 
—

 
249,106

 
6/26/2017
 
$
10.74

 
5/31/2017 - 12/31/2019
2017
 
553,725

 
51,471

 
502,254

 
2/21/2017
 
$
19.69

 
1/1/2017 - 12/31/2019
Incentive Compensation and Other Benefit Plans for Employees and Directors [Table Text Block]
For the last three years, grants of restricted and/or deferred shares have been awarded to elected or re-elected nonemployee directors as follows:
Year of Grant
 
Restricted Shares
 
Deferred Shares
2018
 
92,718

 
17,170

2017
 
93,359

 
17,289

2016
 
135,038

 
29,583

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 in continuing operations:
 
(In Millions, except per
share amounts)
 
2018
 
2017
 
2016
Cost of goods sold and operating expenses
$
1.7

 
$
1.9

 
$
1.8

Selling, general and administrative expenses
13.4

 
16.3

 
11.8

Reduction of operating income from continuing operations before
    income taxes
15.1

 
18.2

 
13.6

Income tax benefit1
—

 
—

 
—

Reduction of net income from continuing operations attributable to Cliffs shareholders
$
15.1

 
$
18.2

 
$
13.6

Reduction of continuing operations earnings per common share attributable to Cliffs shareholders:
 
 
 
 
 
Basic
$
0.05

 
$
0.06

 
$
0.07

Diluted
$
0.05

 
$
0.06

 
$
0.07

 
 
 
 
 
 
1 No income tax benefit due to the full valuation allowance.
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]
Stock option, restricted stock awards and performance share activity under our long-term equity plans and Directors’ Plans are as follows:
 
2018
 
2017
 
2016
 
Shares
 
Shares
 
Shares
Stock options:
 
 
 
 
 
Outstanding at beginning of year
599,870

 
599,870

 
607,489

Exercised
(36,640
)
 
—

 
—

Forfeited/canceled
—

 
—

 
(7,619
)
Outstanding at end of year
563,230

 
599,870

 
599,870

Restricted awards:
 
 
 
 
 
Outstanding and restricted at beginning of year
4,776,483

 
5,461,783

 
2,338,070

Granted during the year
795,487

 
1,196,731

 
3,571,337

Vested and issued
(627,567
)
 
(1,813,315
)
 
(271,988
)
Forfeited/canceled
(140,155
)
 
(68,716
)
 
(175,636
)
Outstanding and restricted at end of year
4,804,248

 
4,776,483

 
5,461,783

Performance shares:

 

 

Outstanding at beginning of year
1,848,312

 
1,368,469

 
1,496,489

Granted during the year
675,599

 
802,831

 
—

Vested and issued
(489,953
)
 
—

 
(59,260
)
Forfeited/canceled
(609,235
)
 
(322,988
)
 
(68,760
)
Outstanding at end of year
1,424,723

 
1,848,312

 
1,368,469

Vested or expected to vest as of December 31, 20181
6,792,201

 
 
 
 
Directors’ retainer and voluntary shares:

 

 

Outstanding at beginning of year
—

 
—

 
—

Granted during the year
27,300

 
25,476

 
—

Vested and issued
(27,300
)
 
(25,476
)
 
—

Outstanding at end of year
—

 
—

 
—

Reserved for future grants or awards at end of year:
 
 
 
 
 
Employee plans
12,949,420

 
 
 
 
Directors’ plans
502,378

 
 
 
 
Total
13,451,798

 
 
 
 
 
 
 
 
 
 
1 With the adoption of ASU 2016-09, we assume all shares will vest until the date of vesting or forfeiture.

Employee Stock Awards Outstanding [Table Text Block]
A summary of our outstanding share-based awards as of December 31, 2018 is shown below:
 
Shares
 
Weighted
Average
Grant Date
Fair Value
Outstanding, beginning of year
7,224,665

 
$
6.79

Granted
1,498,386

 
$
9.51

Vested and issued
(1,181,460
)
 
$
7.38

Forfeited/canceled
(749,390
)
 
$
10.22

Outstanding, end of year
6,792,201

 
$
6.90