Cleveland-Cliffs Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Components Of Income From Continuing Operations Before Income Tax And Equity Loss From Ventures


	(In Millions)
	2011		2010		2009
United States	$	1,506.5	$	602.1	$	136.6
Foreign		735.0		700.9		159.9

	$	2,241.5	$	1,303.0	$	296.5

Components Of Consolidated Income Taxes


	(In Millions)
	2011			2010			2009
Current provision (benefit):
United States federal	$	246.8		$	109.6		$	(44.5	)
United States state & local		2.8			2.6			3.4
Foreign		237.1			166.1			2.8

		486.7			278.3			(38.3	)
Deferred provision (benefit):
United States federal		23.8			61.1			13.2
United States state & local		4.7			5.2			(6.1	)
Foreign		(95.1	)		(51.1	)		53.7

		(66.6	)		15.2			60.8

Total provision on continuing operations	$	420.1		$	293.5		$	22.5

Schedule of Effective Income Tax Rate Reconciliation


	(In Millions)
	2011			2010			2009
Tax at U.S. statutory rate of 35 percent	$	784.5		$	456.0		$	103.8
Increase (decrease) due to:
Foreign exchange remeasurement		(62.6	)		—			—
Non-taxable income related to noncontrolling interests		(63.6	)		—			—
Impact of tax law change		—			16.1			—
Percentage depletion in excess of cost depletion		(153.4	)		(103.1	)		(66.2	)
Impact of foreign operations		(49.4	)		(89.1	)		(44.3	)
Legal entity restructuring		—			(87.4	)		—
Income not subject to tax		(67.5	)		—			—
Non-taxable hedging income		(32.4	)		—			—
State taxes, net		7.5			3.1			(2.1	)
Manufacturer's deduction		(11.9	)		—			(0.1	)
Valuation allowance		49.5			83.3			39.0
Tax uncertainties		17.7			—			—
Other items — net		1.7			14.6			(7.6	)

Income tax expense	$	420.1		$	293.5		$	22.5

Income Taxes Other Than Continuing Operations, Disclosure


	(In Millions)
	2011			2010			2009
Other comprehensive (income) loss:
Minimum pension/OPEB liability	$	(60.2	)	$	14.0		$	(4.7	)
Mark-to-market adjustments		(17.7	)		1.7			(12.3	)

	$	(77.9	)	$	15.7		$	(17.0	)
Paid in capital — stock based compensation	$	(4.6	)	$	(4.0	)	$	3.5
Discontinued Operations	$	(9.2	)	$	(1.5	)	$	(1.7	)

Significant Components Of Deferred Tax Assets and Liabilities


	(In Millions)
	2011			2010
Deferred tax assets:
Pensions	$	154.8		$	108.5
Postretirement benefits other than pensions		109.8			92.0
Alternative minimum tax credit carryforwards		228.5			153.4
Capital loss carryforwards		3.8			1.3
Development		—			0.9
Asset retirement obligations		42.9			42.0
Operating loss carryforwards		260.7			134.2
Product inventories		30.1			21.0
Properties		44.8			38.7
Lease liabilities		38.8			36.9
Other liabilities		149.3			85.4

Total deferred tax assets before valuation allowance		1,063.5			714.3
Deferred tax asset valuation allowance		223.9			172.7

Net deferred tax assets		839.6			541.6
Deferred tax liabilities:
Properties		1,345.0			222.6
Investment in ventures		155.9			72.7
Intangible assets		13.5			14.8
Income tax uncertainties		56.7			37.5
Financial derivatives		1.3			11.7
Deferred revenue		—			45.3
Other assets		98.2			58.3

Total deferred tax liabilities		1,670.6			462.9

Net deferred tax (liabilities) assets	$	(831.0	)	$	78.7

Deferred Tax Assets And Liabilities


	(In Millions)
	2011			2010
Deferred tax assets:
United States
Current	$	17.7		$	2.1
Long-term		162.8			134.5

Total United States		180.5			136.6
Foreign
Current		4.2			—
Long-term		46.7			5.8

Total deferred tax assets		231.4			142.4
Deferred tax liabilities:
Foreign
Long-term		1,062.4			63.7

Total deferred tax liabilities		1,062.4			63.7

Net deferred tax (liabilities) assets	$	(831.0	)	$	78.7

Summary Of Deferred Tax Liability Not Recognized


	(In Millions)
	2011			2010		2009
Unrecognized tax benefits balance as of January 1	$	79.8		$	75.2	$	53.7
Increases for tax positions in prior years		42.1			1.9		23.8
Increases for tax positions in current year		29.5			—		2.5
Increase due to foreign exchange		—			0.7		4.7
Settlements		(3.5	)		—		(9.1	)
Lapses in statutes of limitations		(45.8	)		—		(0.4	)
Other		—			2.0		—

Unrecognized tax benefits balance as of December 31	$	102.1		$	79.8	$	75.2

- Definition

Tabular disclosure of deferred tax liabilities not recognized because of the exceptions to comprehensive recognition of deferred taxes, including a description of the temporary differences, events that would cause the temporary differences to become taxable, the cumulative amounts of the temporary differences and the amounts not recognized as deferred tax liabilities or a statement that the determination of the deferred tax liabilities is not practicable.

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