Quarterly report pursuant to Section 13 or 15(d)

SUPPLEMENTARY GUARANTOR INFORMATION (Tables)

v3.19.3
SUPPLEMENTARY GUARANTOR INFORMATION (Tables)
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Supplemental Condensed Consolidating Financial Position
Unaudited Condensed Consolidating Statement of Financial Position
As of September 30, 2019
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
396.2

 
$
0.4

 
$
2.7

 
$

 
$
399.3

Accounts receivable, net
7.4

 
161.4

 
0.2

 
(4.1
)
 
164.9

Finished goods inventories

 
162.2

 

 

 
162.2

Work-in-process inventories

 
55.2

 

 

 
55.2

Supplies and other inventories

 
110.8

 

 

 
110.8

Derivative assets

 
72.8

 

 

 
72.8

Income tax receivable, current
58.7

 

 

 

 
58.7

Other current assets
9.3

 
22.9

 
8.5

 

 
40.7

TOTAL CURRENT ASSETS
471.6

 
585.7

 
11.4

 
(4.1
)
 
1,064.6

PROPERTY, PLANT AND EQUIPMENT, NET
12.3

 
1,706.8

 
50.8

 

 
1,769.9

OTHER ASSETS
 
 
 
 
 
 
 
 
 
Deposits for property, plant and equipment

 
27.1

 
14.5

 

 
41.6

Income tax receivable, non-current
58.6

 
4.1

 

 

 
62.7

Deferred income taxes
436.3

 

 
1.2

 

 
437.5

Investment in subsidiaries
1,780.5

 
39.7

 

 
(1,820.2
)
 

Long-term intercompany notes

 

 
121.3

 
(121.3
)
 

Other non-current assets
15.6

 
98.0

 
1.3

 

 
114.9

TOTAL OTHER ASSETS
2,291.0

 
168.9

 
138.3

 
(1,941.5
)
 
656.7

TOTAL ASSETS
$
2,774.9

 
$
2,461.4

 
$
200.5

 
$
(1,945.6
)
 
$
3,491.2

LIABILITIES
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
Accounts payable
$
4.7

 
$
207.8

 
$
4.4

 
$
(4.1
)
 
$
212.8

Accrued employment costs
17.1

 
40.1

 
0.1

 

 
57.3

Accrued interest
34.1

 

 

 

 
34.1

Derivative liabilities
2.4

 
30.2

 

 

 
32.6

Partnership distribution payable

 

 

 

 

Other current liabilities
38.5

 
75.9

 
7.3

 

 
121.7

TOTAL CURRENT LIABILITIES
96.8

 
354.0

 
11.8

 
(4.1
)
 
458.5

PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES
63.3

 
414.2

 
(244.3
)
 

 
233.2

ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS

 
159.7

 
19.4

 

 
179.1

LONG-TERM DEBT
2,109.1

 

 

 

 
2,109.1

LONG-TERM INTERCOMPANY NOTES
121.3

 

 

 
(121.3
)
 

OTHER LIABILITIES
24.5

 
120.8

 
6.1

 

 
151.4

TOTAL LIABILITIES
2,415.0

 
1,048.7

 
(207.0
)
 
(125.4
)
 
3,131.3

EQUITY
 
 
 
 
 
 
 
 
 
TOTAL EQUITY
359.9

 
1,412.7

 
407.5

 
(1,820.2
)
 
359.9

TOTAL LIABILITIES AND EQUITY
$
2,774.9

 
$
2,461.4

 
$
200.5

 
$
(1,945.6
)
 
$
3,491.2

Unaudited Condensed Consolidating Statement of Financial Position
As of December 31, 2018
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
819.8

 
$
0.7

 
$
2.7

 
$

 
$
823.2

Accounts receivable, net
9.2

 
221.3

 
0.3

 
(4.1
)
 
226.7

Finished goods inventories

 
77.8

 

 

 
77.8

Work-in-process inventories

 
10.1

 

 

 
10.1

Supplies and other inventories

 
93.2

 

 

 
93.2

Derivative assets
0.1

 
91.4

 

 

 
91.5

Income tax receivable, current
117.3

 

 

 

 
117.3

Other current assets
10.0

 
16.9

 
12.9

 

 
39.8

TOTAL CURRENT ASSETS
956.4

 
511.4

 
15.9

 
(4.1
)
 
1,479.6

PROPERTY, PLANT AND EQUIPMENT, NET
13.3

 
1,221.9

 
50.8

 

 
1,286.0

OTHER ASSETS
 
 
 
 
 
 
 
 
 
Deposits for property, plant and equipment

 
68.4

 
14.6

 

 
83.0

Income tax receivable, non-current
117.2

 
4.1

 

 

 
121.3

Deferred income taxes
463.6

 

 
1.2

 

 
464.8

Investment in subsidiaries
1,262.3

 
50.8

 

 
(1,313.1
)
 

Long-term intercompany notes

 

 
121.3

 
(121.3
)
 

Other non-current assets
8.0

 
85.4

 
1.5

 

 
94.9

TOTAL OTHER ASSETS
1,851.1

 
208.7

 
138.6

 
(1,434.4
)
 
764.0

TOTAL ASSETS
$
2,820.8

 
$
1,942.0

 
$
205.3

 
$
(1,438.5
)
 
$
3,529.6

LIABILITIES
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
Accounts payable
$
5.3

 
$
181.4

 
$
4.2

 
$
(4.1
)
 
$
186.8

Accrued employment costs
28.5

 
45.4

 
0.1

 

 
74.0

Accrued interest
38.4

 

 

 

 
38.4

Derivative liabilities
3.7

 

 

 

 
3.7

Partnership distribution payable

 
43.5

 

 

 
43.5

Other current liabilities
26.9

 
86.7

 
8.2

 

 
121.8

TOTAL CURRENT LIABILITIES
102.8

 
357.0

 
12.5

 
(4.1
)
 
468.2

PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES
64.3

 
414.4

 
(230.0
)
 

 
248.7

ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS

 
152.1

 
19.9

 

 
172.0

LONG-TERM DEBT
2,092.9

 

 

 

 
2,092.9

LONG-TERM INTERCOMPANY NOTES
121.3

 

 

 
(121.3
)
 

OTHER LIABILITIES
15.3

 
99.5

 
8.8

 

 
123.6

TOTAL LIABILITIES
2,396.6

 
1,023.0

 
(188.8
)
 
(125.4
)
 
3,105.4

EQUITY
 
 
 
 
 
 
 
 
 
TOTAL EQUITY
424.2

 
919.0

 
394.1

 
(1,313.1
)
 
424.2

TOTAL LIABILITIES AND EQUITY
$
2,820.8

 
$
1,942.0

 
$
205.3

 
$
(1,438.5
)
 
$
3,529.6



Schedule of Supplemental Statements of Condensed Consolidating Operations and Comprehensive Income (Loss)

Unaudited Condensed Consolidating Statement of Operations and Comprehensive Income
For the Three Months Ended September 30, 2019
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
REVENUES FROM PRODUCT SALES AND SERVICES
 
 
 
 
 
 
 
 
 
Product
$

 
$
515.0

 
$

 
$

 
$
515.0

Freight

 
40.6

 

 

 
40.6

 

 
555.6

 

 

 
555.6

COST OF GOODS SOLD

 
(400.7
)
 

 

 
(400.7
)
SALES MARGIN

 
154.9

 

 

 
154.9

OTHER OPERATING EXPENSE
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
(20.7
)
 
(4.7
)
 
(0.1
)
 

 
(25.5
)
Miscellaneous – net

 
(7.7
)
 
(0.1
)
 

 
(7.8
)
 
(20.7
)
 
(12.4
)
 
(0.2
)
 

 
(33.3
)
OPERATING INCOME (LOSS)
(20.7
)
 
142.5

 
(0.2
)
 

 
121.6

OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
 
 
Interest income (expense), net
(24.9
)
 
(0.6
)
 
0.2

 

 
(25.3
)
Other non-operating income (expense)
(0.9
)
 
(3.4
)
 
4.6

 

 
0.3

 
(25.8
)
 
(4.0
)
 
4.8

 

 
(25.0
)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(46.5
)
 
138.5

 
4.6

 

 
96.6

INCOME TAX EXPENSE
(4.8
)
 

 

 

 
(4.8
)
EQUITY IN INCOME OF SUBSIDIARIES
142.2

 
4.6

 

 
(146.8
)
 

INCOME FROM CONTINUING OPERATIONS
90.9

 
143.1

 
4.6

 
(146.8
)
 
91.8

LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX

 
(0.3
)
 
(0.6
)
 

 
(0.9
)
NET INCOME
$
90.9

 
$
142.8

 
$
4.0

 
$
(146.8
)
 
$
90.9

OTHER COMPREHENSIVE INCOME
6.2

 
6.8

 

 
(6.8
)
 
6.2

TOTAL COMPREHENSIVE INCOME
$
97.1

 
$
149.6

 
$
4.0

 
$
(153.6
)
 
$
97.1

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

 
$
684.7

 
$

 
$

 
$
684.7

Freight

 
57.1

 

 

 
57.1

 

 
741.8

 

 

 
741.8

COST OF GOODS SOLD

 
(480.2
)
 

 

 
(480.2
)
SALES MARGIN

 
261.6

 

 

 
261.6

OTHER OPERATING EXPENSE
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
(23.1
)
 
(5.7
)
 
(0.3
)
 

 
(29.1
)
Miscellaneous – net

 
(6.5
)
 
(0.5
)
 

 
(7.0
)
 
(23.1
)
 
(12.2
)
 
(0.8
)
 

 
(36.1
)
OPERATING INCOME (LOSS)
(23.1
)
 
249.4

 
(0.8
)
 

 
225.5

OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
 
 
Interest income (expense), net
(29.2
)
 
(0.4
)
 
0.1

 

 
(29.5
)
Other non-operating income (expense)
(0.9
)
 
0.1

 
5.1

 

 
4.3

 
(30.1
)
 
(0.3
)
 
5.2

 

 
(25.2
)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(53.2
)
 
249.1

 
4.4

 

 
200.3

INCOME TAX EXPENSE
(0.3
)
 

 
(0.2
)
 

 
(0.5
)
EQUITY IN INCOME OF SUBSIDIARIES
471.0

 
4.7

 

 
(475.7
)
 

INCOME FROM CONTINUING OPERATIONS
417.5

 
253.8

 
4.2

 
(475.7
)
 
199.8

INCOME FROM DISCONTINUED OPERATIONS, net of tax
20.3

 
12.9

 
204.8

 

 
238.0

NET INCOME
$
437.8

 
$
266.7

 
$
209.0

 
$
(475.7
)
 
$
437.8

OTHER COMPREHENSIVE INCOME (LOSS)
(221.2
)
 
6.1

 
(230.5
)
 
224.4

 
(221.2
)
TOTAL COMPREHENSIVE INCOME (LOSS)
$
216.6

 
$
272.8

 
$
(21.5
)
 
$
(251.3
)
 
$
216.6


Schedule of Supplemental Statements of Condensed Consolidating Cash Flows
Unaudited Condensed Consolidating Statement of Cash Flows
For the Nine Months Ended September 30, 2019
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided (used) by operating activities
$
(11.0
)
 
$
402.8

 
$
(3.7
)
 
$

 
$
388.1

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment
(1.2
)
 
(446.7
)
 

 

 
(447.9
)
Deposits for property, plant and equipment

 
(12.3
)
 
(0.5
)
 

 
(12.8
)
Intercompany investing
(83.6
)
 
(1.2
)
 

 
84.8

 

Other investing activities

 
10.4

 
0.8

 

 
11.2

Net cash provided (used) by investing activities
(84.8
)
 
(449.8
)
 
0.3

 
84.8

 
(449.5
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
Repurchase of common shares
(252.9
)
 

 

 

 
(252.9
)
Dividends paid
(45.1
)
 

 

 

 
(45.1
)
Proceeds from issuance of debt
720.9

 

 

 

 
720.9

Debt issuance costs
(6.8
)
 

 

 

 
(6.8
)
Repurchase of debt
(729.3
)
 

 

 

 
(729.3
)
Distributions of partnership equity

 
(44.2
)
 

 

 
(44.2
)
Intercompany financing

 
83.1

 
1.7

 
(84.8
)
 

Other financing activities
(14.6
)
 
7.8

 
(2.7
)
 

 
(9.5
)
Net cash provided (used) by financing activities
(327.8
)
 
46.7

 
(1.0
)
 
(84.8
)
 
(366.9
)
DECREASE IN CASH AND CASH EQUIVALENTS, INCLUDING CASH CLASSIFIED WITHIN OTHER CURRENT ASSETS RELATED TO DISCONTINUED OPERATIONS
(423.6
)
 
(0.3
)
 
(4.4
)
 

 
(428.3
)
LESS: DECREASE IN CASH AND CASH EQUIVALENTS FROM DISCONTINUED OPERATIONS, CLASSIFIED WITHIN OTHER CURRENT ASSETS

 

 
(4.4
)
 

 
(4.4
)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(423.6
)
 
(0.3
)
 

 

 
(423.9
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
819.8

 
0.7

 
2.7

 

 
823.2

CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
396.2

 
$
0.4

 
$
2.7

 
$

 
$
399.3


Unaudited Condensed Consolidating Statement of Cash Flows
For the Nine Months Ended September 30, 2018
(In Millions)
 
Cleveland-Cliffs Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided (used) by operating activities
$
(100.6
)
 
$
425.6

 
$
(136.3
)
 
$

 
$
188.7

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment
(1.1
)
 
(110.2
)
 
(0.1
)
 

 
(111.4
)
Deposits for property, plant and equipment

 
(78.1
)
 
(5.2
)
 

 
(83.3
)
Intercompany investing
185.7

 
(6.3
)
 
120.7

 
(300.1
)
 

Other investing activities

 
3.1

 
17.9

 

 
21.0

Net cash provided (used) by investing activities
184.6

 
(191.5
)
 
133.3

 
(300.1
)
 
(173.7
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
Debt issuance costs
(1.5
)
 

 

 

 
(1.5
)
Repurchase of debt
(16.3
)
 

 

 

 
(16.3
)
Distributions of partnership equity

 
(44.2
)
 

 

 
(44.2
)
Intercompany financing
(120.7
)
 
(188.6
)
 
9.2

 
300.1

 

Other financing activities
(1.9
)
 
(1.5
)
 
(42.3
)
 

 
(45.7
)
Net cash used by financing activities
(140.4
)
 
(234.3
)
 
(33.1
)
 
300.1

 
(107.7
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

 
(2.3
)
 

 
(2.3
)
DECREASE IN CASH AND CASH EQUIVALENTS, INCLUDING CASH CLASSIFIED WITHIN OTHER CURRENT ASSETS RELATED TO DISCONTINUED OPERATIONS
(56.4
)
 
(0.2
)
 
(38.4
)
 

 
(95.0
)
LESS: DECREASE IN CASH AND CASH EQUIVALENTS FROM DISCONTINUED OPERATIONS, CLASSIFIED WITHIN OTHER CURRENT ASSETS

 

 
(13.8
)
 

 
(13.8
)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(56.4
)
 
(0.2
)
 
(24.6
)
 

 
(81.2
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
948.9

 
2.1

 
27.3

 

 
978.3

CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
892.5

 
$
1.9

 
$
2.7

 
$

 
$
897.1