Annual report pursuant to Section 13 and 15(d)

STOCK COMPENSATION PLANS (Tables)

v2.4.0.8
STOCK COMPENSATION PLANS (Tables)
 12 Months Ended
Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]
Restricted share units, restricted stock awards, deferred stock allocation and performance share activity under our long-term equity plans and Directors’ Plans are as follows:
 
2013
 
2012
 
2011
 
Shares
 
Shares
 
Shares
Restricted awards:
 
 
 
 
 
Outstanding and restricted at beginning of year
393,787

 
425,166

 
371,712

Granted during the year
396,844

 
151,869

 
125,059

Vested
(118,973
)
 
(161,741
)
 
(61,330
)
Canceled
(85,574
)
 
(21,507
)
 
(10,275
)
Outstanding and restricted at end of year
586,084

 
393,787

 
425,166

Performance shares:

 

 

Outstanding at beginning of year
772,484

 
877,435

 
843,238

Granted during the year 1
806,271

 
501,346

 
263,816

Issued 2
(289,054
)
 
(574,518
)
 
(215,870
)
Forfeited/canceled
(249,248
)
 
(31,779
)
 
(13,749
)
Outstanding at end of year
1,040,453

 
772,484

 
877,435

Vested or expected to vest as of
    December 31, 2013
1,030,351

 
 
 
 
Directors’ retainer and voluntary shares:

 

 

Outstanding at beginning of year
2,880

 
2,611

 
2,509

Granted during the year
8,136

 
1,823

 
1,815

Canceled
(1,521
)
 
—

 
—

Vested
(2,166
)
 
(1,554
)
 
(1,713
)
Outstanding at end of year
7,329

 
2,880

 
2,611

Reserved for future grants or awards at end
    of year:
 
 
 
 
 
Employee plans
2,988,310

 
 
 
 
Directors’ plans
40,932

 
 
 
 
Total
3,029,242

 
 
 
 
                                         
1
The shares granted during the year include 54,051 shares, 191,506 shares and 71,956 shares for each year presented, respectively, related to the 23%, 50% and 50% payout associated with the prior-year pool as actual payout exceeded target.
2
For each year presented, the shares vested on December 31, 2012, December 31, 2011 and December 31, 2010, respectively, and were valued on February 21, 2013, February 13, 2012 and February 14, 2011, respectively.
Employee Stock Awards Outstanding [Table Text Block]
A summary of our outstanding share-based awards as of December 31, 2013 is shown below:
 
Shares
 
Weighted
Average
Grant Date
Fair Value
Outstanding, beginning of year
1,169,151

 

$61.81

Granted
1,211,251

 

$19.84

Vested
(410,193
)
 

$51.24

Forfeited/expired
(336,343
)
 

$36.42

Outstanding, end of year
1,633,866

 

$40.20

Incentive Compensation and Other Benefit Plans for Employees and Directors [Table Text Block]
For the last three years, Equity Grant shares have been awarded to elected or re-elected nonemployee Directors as follows:
Year of Grant
 
Unrestricted Equity Grant Shares
 
Restricted Equity Grant Shares
 
Deferred Equity Grant Shares
2011
 
1,850

 
6,475

 
1,850

2012
 
1,498

 
8,988

 
2,996

2013
 
3,985

 
31,506

 
7,970

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
Outstanding
 
 
 
Forfeitures (1)
 
Grant Date
 
Performance Period
2013
574,941

 

 
177,279

 
March 11, 2013
 
1/1/2013 - 12/31/2015
2012
239,072

 

 
70,768

 
March 12, 2012
 
1/1/2012 - 12/31/2014
2011
156,178

 

 
32,112

 
March 8, 2011
 
1/1/2011 - 12/31/2013
2011
1,717

 

 
373

 
April 14, 2011
 
1/1/2011 - 12/31/2013
2011
1,290

 

 
—

 
May 2, 2011
 
1/1/2011 - 12/31/2013
2010
12,480

 
(2)
 
—

 
March 8, 2010
 
12/31/2009 - 12/31/2013
2009
44,673

 
(2)
 
—

 
December 17, 2009
 
12/31/2009 - 12/31/2013
(1)
The 2013 and 2012 awards are based on assumed forfeitures. The 2011 awards reflect actual forfeitures.
(2)
Represents the target payout as of December 31, 2013 related to the 44,673 shares awarded on December 17, 2009 and the 12,480 shares awarded on March 8, 2010 based upon the Compensation Committee’s ability to exercise negative discretion.
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 for continuing operations in 2013, 2012 and 2011:
 
(In Millions, except  per
share amounts)
 
2013
 
2012
 
2011
Cost of goods sold and operating expenses
$
6.3

 
$
4.0

 
$
2.7

Selling, general and administrative expenses
14.8

 
16.6

 
13.2

Reduction of operating income from continuing operations before income
    taxes and equity income (loss) from ventures
21.1

 
20.6

 
15.9

Income tax benefit
(7.4
)
 
(7.2
)
 
(5.6
)
Reduction of net income attributable to Cliffs shareholders
$
13.7

 
$
13.4

 
$
10.3

Reduction of earnings per share attributable to Cliffs shareholders:

 

 

Basic
$
0.09

 
$
0.09

 
$
0.07

Diluted
$
0.08

 
$
0.09

 
$
0.07

Schedule Of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions
The following assumptions were utilized to estimate the fair value for the 2013 performance share grants:
Grant Date
 
Grant Date Market Price
 
Average Expected Term (Years)
 
Expected Volatility
 
Risk-Free Interest Rate
 
Dividend Yield
 
Fair Value
 
Fair Value (Percent of Grant Date Market Price)
March 11, 2013
 
$
23.83

 
2.81
 
52.9%
 
0.40%
 
2.52%
 
$
17.01

 
71.38%