Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES (Tables)

v2.4.0.6
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES (Tables)
 9 Months Ended
Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule Of Goodwill
The following table summarizes changes in the carrying amount of goodwill allocated by operating segment for the nine months ended September 30, 2012 and the year ended December 31, 2011:
 
(In Millions)
 
September 30, 2012
 
December 31, 2011 (1)
 
 
U.S. Iron Ore
 
Eastern Canadian Iron Ore
 
Asia Pacific
Iron Ore
 
Other
 
Total
 
U.S. Iron Ore
 
Eastern
Canadian Iron Ore
 
Asia Pacific Iron Ore
 
North American Coal
 
Other
 
Total
Beginning Balance
$
2.0

 
$
986.2

 
$
83.0

 
$
80.9

 
$
1,152.1

 
$
2.0

 
$
3.1

 
$
82.6

 
$
27.9

 
$
80.9

 
$
196.5

Arising in business combinations
—

 
13.8

 
—

 
—

 
13.8

 
—

 
983.5

 
—

 
(0.1
)
 
—

 
983.4

Impairment
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(27.8
)
 
—

 
(27.8
)
Impact of foreign currency translation
—

 
—

 
1.3

 
—

 
1.3

 
—

 
—

 
0.4

 
—

 
—

 
0.4

Other
—

 
—

 
—

 
—

 
—

 
—

 
(0.4
)
 
—

 
—

 
—

 
(0.4
)
Ending Balance
$
2.0

 
$
1,000.0

 
$
84.3

 
$
80.9

 
$
1,167.2

 
$
2.0

 
$
986.2

 
$
83.0

 
$
—

 
$
80.9

 
$
1,152.1

(1)
Represents a 12-Month rollforward of our goodwill by reportable segment at December 31, 2011.
Schedule Of Finite-Lived Intangible Assets By Major Class
Following is a summary of intangible assets and liabilities as of September 30, 2012 and December 31, 2011:
 
 
 
(In Millions)
 
 
 
September 30, 2012
 
December 31, 2011
 
Classification
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Definite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Permits
Intangible assets, net
 
$
135.3

 
$
(28.9
)
 
$
106.4

 
$
134.3

 
$
(23.2
)
 
$
111.1

Utility contracts
Intangible assets, net
 
54.7

 
(29.7
)
 
25.0

 
54.7

 
(21.3
)
 
33.4

Leases
Intangible assets, net
 
5.5

 
(3.1
)
 
2.4

 
5.5

 
(3.0
)
 
2.5

Total intangible assets
 
 
$
195.5

 
$
(61.7
)
 
$
133.8

 
$
194.5

 
$
(47.5
)
 
$
147.0

Below-market sales contracts
Other current liabilities
 
$
(46.0
)
 
$
—

 
$
(46.0
)
 
$
(77.0
)
 
$
24.3

 
$
(52.7
)
Below-market sales contracts
Below-market sales contracts, net
 
(250.7
)
 
166.9

 
(83.8
)
 
(252.3
)
 
140.5

 
(111.8
)
Total below-market sales contracts
 
 
$
(296.7
)
 
$
166.9

 
$
(129.8
)
 
$
(329.3
)
 
$
164.8

 
$
(164.5
)
Estimated Useful Lives Of Intangible Assets Subject To Periodic Amortization On A Straight-Line Basis

The intangible assets are subject to periodic amortization on a straight-line basis over their estimated useful lives as follows:
Intangible Asset
 
Useful Life (years)
Permits
 
15 - 28
Utility contracts
 
5
Leases
 
1.5 - 4.5
Estimated Amortization Expense Relating To Intangible Assets
Amortization expense relating to intangible assets was $4.8 million and $14.1 million, respectively, for the three and nine months ended September 30, 2012, and is recognized in Cost of goods sold and operating expenses in the Statements of Unaudited Condensed Consolidated Operations. Amortization expense relating to intangible assets was $3.3 million and $12.5 million, respectively, for the comparable periods in 2011. The estimated amortization expense relating to intangible assets for the remainder of 2012 and each of the five succeeding years is as follows:

(In Millions)

Amount
Year Ending December 31

2012 (remaining three months)
$
4.5

2013
17.9

2014
17.9

2015
6.0

2016
6.0

2017
6.0

Total
$
58.3

Schedule Of Earnings To Be Recognized On Below-Market Sales Contract
The below-market sales contracts are classified as a liability and recognized over the terms of the underlying contracts, which have remaining lives ranging from two to five years. For the three and nine months ended September 30, 2012, we recognized $14.7 million and $31.3 million, respectively, in Product revenues related to the below-market sales contracts, compared with $16.7 million and $40.4 million, respectively, for the three and nine months ended September 30, 2011. The following amounts are estimated to be recognized in Product revenues for each of the five succeeding fiscal years:
 
(In Millions)
 
Amount
Year Ending December 31
 
2012 (remaining three months)
$
14.7

2013
46.0

2014
23.1

2015
23.0

2016
23.0

2017
—

Total
$
129.8