QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | |
Emerging growth company |
TABLE OF CONTENTS | |||||
Page Number | |||||
DEFINITIONS | |||||
PART I - FINANCIAL INFORMATION | |||||
Item 1. | Financial Statements | ||||
Statements of Unaudited Condensed Consolidated Financial Position as of June 30, 2020 and December 31, 2019 | |||||
Statements of Unaudited Condensed Consolidated Operations for the Three and Six Months Ended June 30, 2020 and 2019 | |||||
Statements of Unaudited Condensed Consolidated Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2020 and 2019 | |||||
Statements of Unaudited Condensed Consolidated Cash Flows for the Six Months Ended June 30, 2020 and 2019 | |||||
Statements of Unaudited Condensed Consolidated Changes in Equity for the Three and Six Months Ended June 30, 2020 and 2019 | |||||
Notes to Unaudited Condensed Consolidated Financial Statements | |||||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | ||||
Item 4. | Controls and Procedures | ||||
PART II - OTHER INFORMATION | |||||
Item 1. | Legal Proceedings | ||||
Item 1A. | Risk Factors | ||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||||
Item 4. | Mine Safety Disclosures | ||||
Item 5. | Other Information | ||||
Item 6. | Exhibits | ||||
Signatures | |||||
Abbreviation or acronym | Term | |
ABL Facility | Asset-Based Revolving Credit Agreement, by and among Bank of America, N.A., as Agent, the Lenders that are parties thereto, as the Lenders, and Cleveland-Cliffs Inc., as Parent and a Borrower, dated as of March 13, 2020, as amended | |
Adjusted EBITDA | EBITDA excluding certain items such as EBITDA of noncontrolling interests, extinguishment of debt, severance, acquisition-related costs, amortization of inventory step-up, impacts of discontinued operations and intersegment corporate allocations of selling, general and administrative costs | |
AK Coal | AK Coal Resources, Inc., an indirect, wholly owned subsidiary of AK Steel, and related coal mining operations | |
AK Steel | AK Steel Holding Corporation and its consolidated subsidiaries, including AK Steel Corporation, its direct, wholly owned subsidiary, collectively, unless stated otherwise or the context indicates otherwise | |
AK Tube | AK Tube LLC, an indirect, wholly owned subsidiary of AK Steel | |
AMT | Alternative Minimum Tax | |
AOCI | Accumulated Other Comprehensive Income (Loss) | |
ArcelorMittal USA | ArcelorMittal USA LLC (including many of its United States affiliates, subsidiaries and representatives. References to ArcelorMittal USA comprise all such relationships unless a specific ArcelorMittal USA entity is referenced) | |
ASC | Accounting Standards Codification | |
Atlantic Basin pellet premium | Platts Atlantic Basin Blast Furnace 65% Fe pellet premium | |
Board | The Board of Directors of Cleveland-Cliffs Inc. | |
CARES Act | Coronavirus Aid, Relief, and Economic Security Act | |
CECL | Current Expected Credit Losses | |
CERCLA | Comprehensive Environmental Response, Compensation and Liability Act | |
Compensation Committee | Compensation and Organization Committee of the Board | |
COVID-19 | A novel strain of coronavirus that the World Health Organization declared a global pandemic in March 2020 | |
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | |
DR-grade | Direct Reduction-grade | |
EAF | Electric Arc Furnace | |
EBITDA | Earnings before interest, taxes, depreciation and amortization | |
Empire | Empire Iron Mining Partnership | |
EPA | U.S. Environmental Protection Agency | |
ERISA | Employee Retirement Income Security Act of 1974, as amended | |
Exchange Act | Securities Exchange Act of 1934, as amended | |
Fe | Iron | |
FILO | First-in, last-out | |
Former ABL Facility | Amended and Restated Syndicated Facility Agreement by and among Bank of America, N.A., as Administrative Agent, the Lenders that are parties thereto, as the Lenders, Cleveland-Cliffs Inc., as Parent and a Borrower, and the Subsidiaries of Parent party thereto, as Borrowers, dated as of March 30, 2015, as amended and restated as of February 28, 2018, and as further amended | |
GAAP | Accounting principles generally accepted in the United States | |
HBI | Hot Briquetted Iron | |
Hibbing | Hibbing Taconite Company, an unincorporated joint venture | |
Hot-rolled coil steel price | Estimated average annual daily market price for hot-rolled coil steel | |
IRBs | Industrial Revenue Bonds | |
LIBOR | London Interbank Offered Rate | |
LIFO | Last-in, first-out | |
Long ton | 2,240 pounds | |
Merger | The merger of Merger Sub with and into AK Steel, with AK Steel surviving the merger as a wholly owned subsidiary of Cliffs, subject to the terms and conditions set forth in the Merger Agreement, effective as of March 13, 2020 | |
Merger Agreement | Agreement and Plan of Merger, dated as of December 2, 2019, among Cliffs, AK Steel and Merger Sub | |
Merger Sub | Pepper Merger Sub Inc., a direct, wholly owned subsidiary of Cliffs prior to the Merger | |
Metric ton | 2,205 pounds | |
MMBtu | Million British Thermal Units | |
MSHA | U.S. Mine Safety and Health Administration | |
Net ton | 2,000 pounds | |
Northshore | Northshore Mining Company | |
OPEB | Other postretirement benefits | |
Platts 62% Price | Platts IODEX 62% Fe Fines cost and freight North China | |
Precision Partners | PPHC Holdings, LLC (an indirect, wholly owned subsidiary of AK Steel) and its subsidiaries, collectively, unless stated otherwise or the context indicates otherwise | |
RCRA | Resource Conservation and Recovery Act | |
SEC | U.S. Securities and Exchange Commission | |
Section 232 | Section 232 of the Trade Expansion Act of 1962, as amended | |
Securities Act | Securities Act of 1933, as amended |
Abbreviation or acronym | Term | |
SunCoke Middletown | Middletown Coke Company, LLC, a subsidiary of SunCoke Energy, Inc. | |
Tilden | Tilden Mining Company L.C. | |
Topic 805 | ASC Topic 805, Business Combinations | |
Topic 815 | ASC Topic 815, Derivatives and Hedging | |
United Taconite | United Taconite LLC | |
U.S. | United States of America | |
U.S. Steel | Ontario Hibbing Company, a subsidiary of United States Steel Corporation and a participant in Hibbing | |
USMCA | United States-Mexico-Canada Agreement | |
VIE | Variable Interest Entity |
Item 1. | Financial Statements |
(In Millions) | |||||||
June 30, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Accounts receivable, net | |||||||
Inventories | |||||||
Income tax receivable, current | |||||||
Other current assets | |||||||
Total current assets | |||||||
Non-current assets: | |||||||
Property, plant and equipment, net | |||||||
Goodwill | |||||||
Intangible assets, net | |||||||
Income tax receivable, non-current | |||||||
Deferred income taxes | |||||||
Right-of-use asset, operating lease | |||||||
Other non-current assets | |||||||
TOTAL ASSETS | $ | $ | |||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | $ | |||||
Accrued liabilities | |||||||
Other current liabilities | |||||||
Total current liabilities | |||||||
Non-current liabilities: | |||||||
Long-term debt | |||||||
Operating lease liability, non-current | |||||||
Intangible liabilities, net | |||||||
Pension and OPEB liabilities | |||||||
Asset retirement obligations | |||||||
Other non-current liabilities | |||||||
TOTAL LIABILITIES | |||||||
Commitments and contingencies (See Note 18) | |||||||
Equity: | |||||||
Common shares - par value $0.125 per share | |||||||
Authorized - 600,000,000 shares (2019 - 600,000,000 shares); | |||||||
Issued - 428,645,866 shares (2019 - 301,886,794 shares); | |||||||
Outstanding - 399,159,988 shares (2019 - 270,084,005 shares) | |||||||
Capital in excess of par value of shares | |||||||
Retained deficit | ( | ) | ( | ) | |||
Cost of 29,485,878 common shares in treasury (2019 - 31,802,789 shares) | ( | ) | ( | ) | |||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Total Cliffs shareholders' equity | |||||||
Noncontrolling interest | |||||||
TOTAL EQUITY | |||||||
TOTAL LIABILITIES AND EQUITY | $ | $ |
(In Millions, Except Per Share Amounts) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||
Realization of deferred revenue | |||||||||||||||
Operating costs: | |||||||||||||||
Cost of goods sold | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Selling, general and administrative expenses | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Acquisition-related costs | ( | ) | ( | ) | |||||||||||
Miscellaneous – net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total operating costs | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Operating income (loss) | ( | ) | ( | ) | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Gain (loss) on extinguishment of debt | ( | ) | ( | ) | |||||||||||
Other non-operating income | |||||||||||||||
Total other income (expense) | ( | ) | ( | ) | |||||||||||
Income (loss) from continuing operations before income taxes | ( | ) | ( | ) | |||||||||||
Income tax benefit (expense) | ( | ) | ( | ) | |||||||||||
Income (loss) from continuing operations | ( | ) | ( | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | ( | ) | ( | ) | ( | ) | |||||||||
Net income (loss) | ( | ) | ( | ) | |||||||||||
Income attributable to noncontrolling interest | ( | ) | ( | ) | |||||||||||
Net income (loss) attributable to Cliffs shareholders | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Earnings (loss) per common share attributable to Cliffs shareholders - basic | |||||||||||||||
Continuing operations | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Discontinued operations | |||||||||||||||
$ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Earnings (loss) per common share attributable to Cliffs shareholders - diluted | |||||||||||||||
Continuing operations | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Discontinued operations | |||||||||||||||
$ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Average number of shares (in thousands) | |||||||||||||||
Basic | |||||||||||||||
Diluted |
(In Millions) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Other comprehensive income (loss): | |||||||||||||||
Changes in pension and OPEB, net of tax | |||||||||||||||
Changes in foreign currency translation | ( | ) | |||||||||||||
Changes in derivative financial instruments, net of tax | ( | ) | |||||||||||||
Total other comprehensive income | |||||||||||||||
Comprehensive income (loss) | ( | ) | ( | ) | |||||||||||
Comprehensive income attributable to noncontrolling interests | ( | ) | ( | ) | |||||||||||
Comprehensive income (loss) attributable to Cliffs shareholders | $ | ( | ) | $ | $ | ( | ) | $ |
(In Millions) | |||||||
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
OPERATING ACTIVITIES | |||||||
Net income (loss) | $ | ( | ) | $ | |||
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | |||||||
Depreciation, depletion and amortization | |||||||
Amortization of inventory step-up | |||||||
Deferred income taxes | ( | ) | |||||
Loss (gain) on extinguishment of debt | ( | ) | |||||
Loss (gain) on derivatives | ( | ) | |||||
Other | ( | ) | |||||
Changes in operating assets and liabilities, net of business combination: | |||||||
Receivables and other assets | |||||||
Inventories | ( | ) | ( | ) | |||
Payables, accrued expenses and other liabilities | ( | ) | ( | ) | |||
Net cash provided (used) by operating activities | ( | ) | |||||
INVESTING ACTIVITIES | |||||||
Purchase of property, plant and equipment | ( | ) | ( | ) | |||
Acquisition of AK Steel, net of cash acquired | ( | ) | |||||
Other investing activities | ( | ) | |||||
Net cash used by investing activities | ( | ) | ( | ) | |||
FINANCING ACTIVITIES | |||||||
Repurchase of common shares | ( | ) | |||||
Proceeds from issuance of debt | |||||||
Debt issuance costs | ( | ) | ( | ) | |||
Repurchase of debt | ( | ) | ( | ) | |||
Borrowings under credit facilities | |||||||
Repayments under credit facilities | ( | ) | |||||
Dividends paid | ( | ) | ( | ) | |||
Other financing activities | ( | ) | ( | ) | |||
Net cash provided (used) by financing activities | ( | ) | |||||
Decrease in cash and cash equivalents, including cash classified within other current assets related to discontinued operations | ( | ) | ( | ) | |||
Less: decrease in cash and cash equivalents from discontinued operations, classified within other current assets | ( | ) | ( | ) | |||
Net decrease in cash and cash equivalents | ( | ) | ( | ) | |||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | $ | $ |
(In Millions) | ||||||||||||||||||||||||||||||
Number of Common Shares Outstanding | Par Value of Common Shares Issued | Capital in Excess of Par Value of Shares | Retained Deficit | Common Shares in Treasury | AOCI | Non-controlling Interests | Total | |||||||||||||||||||||||
December 31, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Comprehensive income (loss) | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||||||
Stock and other incentive plans | — | ( | ) | — | — | — | ||||||||||||||||||||||||
Acquisition of AK Steel | — | — | — | |||||||||||||||||||||||||||
Common share dividends ($0.06 per share) | — | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||
Net distributions to noncontrolling interests | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
March 31, 2020 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||
Comprehensive income (loss) | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||||||
Stock and other incentive plans | — | ( | ) | — | — | — | ||||||||||||||||||||||||
Common share dividends | — | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||
Net distributions to noncontrolling interests | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
June 30, 2020 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ |
(In Millions) | ||||||||||||||||||||||||||
Number of Common Shares Outstanding | Par Value of Common Shares Issued | Capital in Excess of Par Value of Shares | Retained Deficit | Common Shares in Treasury | AOCI | Total | ||||||||||||||||||||
December 31, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
Comprehensive income (loss) | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||
Stock and other incentive plans | — | ( | ) | — | — | ( | ) | |||||||||||||||||||
Common share repurchases | ( | ) | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||
Common share dividends ($0.05 per share) | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||
March 31, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
Comprehensive income | — | — | — | — | ||||||||||||||||||||||
Stock and other incentive plans | — | — | — | |||||||||||||||||||||||
Common share repurchases | ( | ) | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||
Common share dividends ($0.06 per share) | — | — | — | ( | ) | — | — | ( | ) | |||||||||||||||||
June 30, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ |
Investee | Segment Reported Within | Equity Ownership Percentage | ||
Combined Metals of Chicago, LLC | Steel and Manufacturing | |||
Hibbing Taconite Company | Mining and Pelletizing | |||
Spartan Steel Coating, LLC | Steel and Manufacturing |
(In Millions) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Steel and Manufacturing: | |||||||||||||||
Automotive | $ | $ | $ | $ | |||||||||||
Infrastructure and manufacturing | |||||||||||||||
Distributors and converters | |||||||||||||||
Total Steel and Manufacturing | |||||||||||||||
Mining and Pelletizing: | |||||||||||||||
Steel producers1 | |||||||||||||||
Total revenues | $ | $ | $ | $ |
(In Millions) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Steel and Manufacturing: | |||||||||||||||
Carbon steel | $ | $ | $ | $ | |||||||||||
Stainless and electrical steel | |||||||||||||||
Tubular products, components and other | |||||||||||||||
Total Steel and Manufacturing | |||||||||||||||
Mining and Pelletizing: | |||||||||||||||
Iron ore1 | |||||||||||||||
Freight | |||||||||||||||
Total Mining and Pelletizing | |||||||||||||||
Total revenues | $ | $ | $ | $ |
(In Millions) | |||||||
2020 | 2019 | ||||||
Allowance for credit losses as of January 1 | $ | $ | |||||
Increase in allowance | |||||||
Allowance for credit losses as of June 30 | $ | $ |
(In Millions) | |||||||
June 30, 2020 | December 31, 2019 | ||||||
Product inventories | |||||||
Finished and semi-finished goods | $ | $ | |||||
Work-in-process | |||||||
Raw materials | |||||||
Total product inventories | |||||||
Manufacturing supplies and critical spares | |||||||
Inventories | $ | $ |
(In Millions) | |||||||||||||||
Deferred Revenue (Current) | Deferred Revenue (Long-Term) | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Opening balance as of January 1 | $ | $ | $ | $ | |||||||||||
Net decrease | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Closing balance as of June 30 | $ | $ | $ | $ |
(In Millions) | |||||||
June 30, 2020 | December 31, 2019 | ||||||
Accrued employment costs | $ | $ | |||||
Accrued interest | |||||||
Accrued dividends | |||||||
Other | |||||||
Accrued liabilities | $ | $ |
(In Millions) | |||||||
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Capital additions | $ | $ | |||||
Less: | |||||||
Non-cash accruals | ( | ) | |||||
Right-of-use assets - finance leases | |||||||
Grants | ( | ) | |||||
Cash paid for capital expenditures including deposits | $ | $ |
(In Millions) | |||||||
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Taxes paid on income | $ | $ | |||||
Income tax refunds | ( | ) | ( | ) | |||
Interest paid on debt obligations net of capitalized interest1 |
(In Millions) | |||||||
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Fair value of common shares issued for consideration for business combination | $ | $ | |||||
Fair value of equity awards assumed from AK Steel acquisition |
(In Millions) | |||
Fair value of Cliffs common shares issued for AK Steel outstanding common stock | $ | ||
Fair value of replacement equity awards | |||
Fair value of AK Steel debt | |||
Total purchase consideration | $ |
(In Millions, Except Per Share Amounts) | |||
Number of shares of AK Steel common stock issued and outstanding | |||
Exchange ratio | |||
Shares of Cliffs common shares issued to AK Steel stockholders | |||
Price per share of Cliffs common shares | $ | ||
Fair value of Cliffs common shares issued for AK Steel outstanding common stock | $ |
(In Millions) | |||
Credit Facility | $ | ||
7.50% Senior Secured Notes due July 2023 | |||
Fair value of debt included in consideration | $ |
(In Millions) | |||||||||||
Initial Allocation of Consideration | Measurement Period Adjustments | June 30, 2020 | |||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||
Accounts receivable | ( | ) | |||||||||
Inventories | ( | ) | |||||||||
Other current assets | ( | ) | |||||||||
Property, plant and equipment | |||||||||||
Intangible assets | ( | ) | |||||||||
Right of use asset, operating leases | ( | ) | |||||||||
Other non-current assets | |||||||||||
Accounts payable | ( | ) | ( | ) | ( | ) | |||||
Accrued liabilities | ( | ) | ( | ) | ( | ) | |||||
Other current liabilities | ( | ) | ( | ) | |||||||
Long-term debt | ( | ) | ( | ) | |||||||
Deferred income taxes | ( | ) | ( | ) | ( | ) | |||||
Operating lease liability, non-current | ( | ) | ( | ) | |||||||
Intangible liabilities | ( | ) | ( | ) | |||||||
Pension and OPEB liabilities | ( | ) | ( | ) | |||||||
Asset retirement obligations | ( | ) | ( | ) | |||||||
Other non-current liabilities | ( | ) | ( | ) | ( | ) | |||||
Net identifiable assets acquired | |||||||||||
Goodwill | ( | ) | |||||||||
Total net assets acquired | $ | $ | ( | ) | $ |
(In Millions) | Weighted Average Life (In Years) | ||||
Intangible assets: | |||||
Customer relationships | $ | ||||
Developed technology | |||||
Trade names and trademarks | |||||
Total identifiable intangible assets | $ | ||||
Intangible liabilities: | |||||
Above-market supply contracts | $ | ( | ) |
(In Millions) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||
Net income (loss) attributable to Cliffs shareholders | ( | ) | ( | ) |
1. | The elimination of intercompany revenues between Cliffs and AK Steel of $ |
2. | The 2020 pro forma net loss was adjusted to exclude $ |
3. | The elimination of nonrecurring transaction costs incurred by Cliffs and AK Steel in connection with the Merger of $ |
4. | Total other pro forma adjustments included expense of $ |
5. | The income tax impact of pro forma transaction adjustments that affect Net income (loss) attributable to Cliffs shareholders at a statutory rate of |
(In Millions, Except Sales Tons) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Sales volume (in thousands): | |||||||||||||||
Steel and Manufacturing (net tons) | |||||||||||||||
Mining and Pelletizing sales (long tons) | |||||||||||||||
Less: Intercompany sales (long tons) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Mining and Pelletizing consolidated sales (long tons) | |||||||||||||||
Revenues: | |||||||||||||||
Steel and Manufacturing net sales to external customers | $ | $ | $ | $ | |||||||||||
Mining and Pelletizing net sales1 | |||||||||||||||
Less: Intercompany sales | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Mining and Pelletizing net sales to external customers | |||||||||||||||
Total revenues | $ | $ | $ | $ | |||||||||||
Adjusted EBITDA: | |||||||||||||||
Steel and Manufacturing | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Mining and Pelletizing | |||||||||||||||
Corporate and eliminations | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total Adjusted EBITDA | $ | ( | ) | $ | $ | ( | ) | $ |
(In Millions) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Less: | |||||||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income tax benefit (expense) | ( | ) | ( | ) | |||||||||||
Depreciation, depletion and amortization | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total EBITDA | $ | $ | $ | ( | ) | $ | |||||||||
Less: | |||||||||||||||
EBITDA of noncontrolling interests1 | $ | $ | $ | $ | |||||||||||
Gain (loss) on extinguishment of debt | ( | ) | ( | ) | |||||||||||
Severance costs | ( | ) | ( | ) | ( | ) | |||||||||
Acquisition-related costs excluding severance costs | ( | ) | ( | ) | |||||||||||
Amortization of inventory step-up | ( | ) | ( | ) | |||||||||||
Impact of discontinued operations | ( | ) | ( | ) | ( | ) | |||||||||
Total Adjusted EBITDA | $ | ( | ) | $ | $ | ( | ) | $ |
(In Millions) | |||||||
June 30, 2020 | December 31, 2019 | ||||||
Assets: | |||||||
Steel and Manufacturing | $ | $ | |||||
Mining and Pelletizing | |||||||
Total segment assets | |||||||
Corporate and Other (including discontinued operations) | |||||||
Total assets | $ | $ |
(In Millions) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Capital additions1: | |||||||||||||||
Steel and Manufacturing | $ | $ | $ | $ | |||||||||||
Mining and Pelletizing | |||||||||||||||
Corporate and Other | |||||||||||||||
Total capital additions | $ | $ | $ | $ |
(In Millions) | |||||||
June 30, 2020 | December 31, 2019 | ||||||
Land, land improvements and mineral rights | $ | $ | |||||
Buildings | |||||||
Steel and Manufacturing equipment | |||||||
Mining and Pelletizing equipment | |||||||
Other | |||||||
Construction-in-progress | |||||||
Total property, plant and equipment1 | |||||||
Allowance for depreciation and depletion | ( | ) | ( | ) | |||
Property, plant and equipment, net | $ | $ |
(In Millions) | |||||||||||||
Classification1 | Gross Amount | Accumulated Amortization | Net Amount | ||||||||||
As of June 30, 2020 | |||||||||||||
Intangible assets: | |||||||||||||
Customer relationships | Intangible assets, net | $ | $ | ( | ) | $ | |||||||
Developed technology | Intangible assets, net | ( | ) | ||||||||||
Trade names and trademarks | Intangible assets, net | ( | ) | ||||||||||
Mining permits | Intangible assets, net | ( | ) | ||||||||||
Total intangible assets | $ | $ | ( | ) | $ | ||||||||
Intangible liabilities: | |||||||||||||
Above-market supply contracts | Intangible liabilities, net | $ | ( | ) | $ | $ | ( | ) | |||||
As of December 31, 2019 | |||||||||||||
Intangible assets: | |||||||||||||
Mining permits | Intangible assets, net | $ | $ | ( | ) | $ |
(In Millions) | ||||
Years ending December 31, | ||||
2020 (remaining period of the year) | $ | |||
2021 | ||||
2022 | ||||
2023 | ||||
2024 | ||||
2025 |
(In Millions) | ||||
Years ending December 31, | ||||
2020 (remaining period of the year) | $ | |||
2021 | ||||
2022 | ||||
2023 | ||||
2024 | ||||
2025 |
(In Millions) | ||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||
Debt Instrument | Issuer1 | Annual Effective Interest Rate | Total Principal Amount | Debt Issuance Costs | Unamortized Premiums (Discounts) | Total Debt | ||||||||||||||
Senior Secured Notes: | ||||||||||||||||||||
4.875% 2024 Senior Secured Notes | Cliffs | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||
9.875% 2025 Senior Secured Notes | Cliffs | ( | ) | ( | ) | |||||||||||||||
6.75% 2026 Senior Secured Notes | Cliffs | ( | ) | ( | ) | |||||||||||||||
Senior Unsecured Notes: | ||||||||||||||||||||
7.625% 2021 AK Senior Notes | AK Steel | |||||||||||||||||||
7.50% 2023 AK Senior Notes | AK Steel | |||||||||||||||||||
6.375% 2025 Senior Notes | Cliffs | ( | ) | ( | ) | |||||||||||||||
6.375% 2025 AK Senior Notes | AK Steel | ( | ) | |||||||||||||||||
1.50% 2025 Convertible Senior Notes | Cliffs | ( | ) | ( | ) | |||||||||||||||
5.75% 2025 Senior Notes | Cliffs | ( | ) | ( | ) | |||||||||||||||
7.00% 2027 Senior Notes | Cliffs | ( | ) | ( | ) | |||||||||||||||
7.00% 2027 AK Senior Notes | AK Steel | ( | ) | |||||||||||||||||
5.875% 2027 Senior Notes | Cliffs | ( | ) | ( | ) | |||||||||||||||
6.25% 2040 Senior Notes | Cliffs | ( | ) | ( | ) | |||||||||||||||
IRBs due 2024 to 2028 | AK Steel | Various | ||||||||||||||||||
ABL Facility | Cliffs2 | — | — | |||||||||||||||||
Total long-term debt | $ |
(In Millions) | ||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Debt Instrument | Issuer1 | Annual Effective Interest Rate | Total Principal Amount | Debt Issuance Costs | Unamortized Discounts | Total Debt | ||||||||||||||
Senior Secured Notes: | ||||||||||||||||||||
4.875% 2024 Senior Notes | Cliffs | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||
Senior Unsecured Notes: | ||||||||||||||||||||
1.50% 2025 Convertible Senior Notes | Cliffs | ( | ) | ( | ) | |||||||||||||||
5.75% 2025 Senior Notes | Cliffs | ( | ) | ( | ) | |||||||||||||||
5.875% 2027 Senior Notes | Cliffs | ( | ) | ( | ) | |||||||||||||||
6.25% 2040 Senior Notes | Cliffs | ( | ) | ( | ) | |||||||||||||||
Former ABL Facility | Cliffs2 | N/A | N/A | N/A | ||||||||||||||||
Total long-term debt | $ |
Redemption Period | Redemption Price1 | Restricted Amount | |||
Prior to August 15, 2020 - using proceeds of a regulatory debt facility | % | Up to 35% of original aggregate principal | |||
Prior to October 17, 2022 - using proceeds of equity issuance | Up to 35% of original aggregate principal | ||||
Prior to October 17, 20222 | |||||
Beginning on October 17, 2022 | |||||
Beginning on April 17, 2023 | |||||
Beginning on April 17, 2024 | |||||
Beginning on April 17, 2025 and thereafter | |||||
1 Plus accrued and unpaid interest, if any, up to, but excluding, the redemption date. | |||||
2 Plus a "make-whole" premium. |
Redemption Period | Redemption Price1 | Restricted Amount | |||
Prior to March 15, 2022 - using proceeds of equity issuance | % | Up to 35% of original aggregate principal | |||
Prior to March 15, 20222 | |||||
Beginning on March 15, 2022 | |||||
Beginning on March 15, 2023 | |||||
Beginning on March 15, 2024 | |||||
Beginning on March 15, 2025 and thereafter | |||||
1 Plus accrued and unpaid interest, if any, up to, but excluding, the redemption date. | |||||
2 Plus a "make-whole" premium. |
Redemption Period | Redemption Price1 | Restricted Amount | |||
Prior to October 15, 2020 - using proceeds of equity issuance | % | Up to 35% of original aggregate principal | |||
Prior to October 15, 20202 | |||||
Beginning on October 15, 2020 | |||||
Beginning on October 15, 2021 | |||||
Beginning on October 15, 2022 and thereafter | |||||
1 Plus accrued and unpaid interest, if any, up to but excluding the redemption date. | |||||
2 Plus a "make-whole" premium. |
Redemption Period | Redemption Price1 | ||
Prior to March 15, 20222 | % | ||
Beginning on March 15, 2022 | |||
Beginning on March 15, 2023 | |||
Beginning on March 15, 2024 | |||
Beginning on March 15, 2025 and thereafter | |||
1 Plus accrued and unpaid interest, if any, up to but excluding the redemption date. | |||
2 Plus a "make-whole" premium. |
Redemption Period | Redemption Price1 | ||
Prior to July 15, 2020 | % | ||
Beginning on July 15, 2020 | |||
Beginning on July 15, 2021 and thereafter | |||
1 Plus accrued and unpaid interest, if any, up to but excluding the redemption date. |
Redemption Period | Redemption Price1 | ||
Prior to October 15, 20202 | % | ||
Beginning on October 15, 2020 | |||
Beginning on October 15, 2021 | |||
Beginning on October 15, 2022 and thereafter | |||
1 Plus accrued and unpaid interest, if any, up to but excluding the redemption date. | |||
2 Plus a "make-whole" premium. |
Redemption Period | Redemption Price1 | ||
Prior to March 15, 20222 | % | ||
Beginning on March 15, 2022 | |||
Beginning on March 15, 2023 | |||
Beginning on March 15, 2024 | |||
Beginning on March 15, 2025 and thereafter | |||
1 Plus accrued and unpaid interest, if any, up to but excluding the redemption date. | |||
2 Plus a "make-whole" premium. |
(In Millions) | ||||||||||||||||
Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | |||||||||||||||
Debt Instrument | Debt Extinguished | Gain on Extinguishment | Debt Extinguished | Gain on Extinguishment | ||||||||||||
7.625% 2021 AK Senior Notes | $ | $ | $ | $ | ||||||||||||
7.50% 2023 AK Senior Notes | ||||||||||||||||
4.875% 2024 Senior Secured Notes | ||||||||||||||||
6.375% 2025 Senior Notes | ||||||||||||||||
1.50% 2025 Convertible Senior Notes | ||||||||||||||||
5.75% 2025 Senior Notes | ||||||||||||||||
7.00% 2027 Senior Notes | ||||||||||||||||
5.875% 2027 Senior Notes | ||||||||||||||||
6.25% 2040 Senior Notes | ||||||||||||||||
$ | $ | $ | $ |
(In Millions) | ||||||||||||||||
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||||||||||||
Debt Instrument | Debt Extinguished | (Loss) on Extinguishment | Debt Extinguished | (Loss) on Extinguishment | ||||||||||||
4.875% 2021 Senior Notes | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
5.75% 2025 Senior Notes | ( | ) | ( | ) | ||||||||||||
$ | $ | ( | ) | $ | $ | ( | ) |
(In Millions) | ||||
June 30, 2020 | ||||
Available borrowing base on ABL Facility1 | $ | |||
Borrowings | ( | ) | ||
Letter of credit obligations2 | ( | ) | ||
Borrowing capacity available | $ |
(In Millions) | ||||
Maturities of Debt | ||||
2020 (remaining period of year) | $ | |||
2021 | ||||
2022 | ||||
2023 | ||||
2024 | ||||
Thereafter | ||||
Total maturities of debt | $ |
(In Millions) | |||||||||||||||
June 30, 2020 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents - Money market funds | $ | $ | $ | $ | |||||||||||
Other current assets: | |||||||||||||||
Commodity contracts | |||||||||||||||
Customer supply agreement | |||||||||||||||
Provisional pricing arrangement | |||||||||||||||
Other non-current assets: | |||||||||||||||
Commodity contracts | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Other current liabilities: | |||||||||||||||
Commodity contracts | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Foreign exchange contracts | ( | ) | ( | ) | |||||||||||
Other non-current liabilities: | |||||||||||||||
Commodity contracts | ( | ) | ( | ) | |||||||||||
Foreign exchange contracts | ( | ) | ( | ) | |||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) |
(In Millions) | |||||||||||||||
December 31, 2019 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents - Commercial paper | $ | $ | $ | $ | |||||||||||
Other current assets: | |||||||||||||||
Customer supply agreement | |||||||||||||||
Provisional pricing arrangement | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Other current liabilities: | |||||||||||||||
Commodity contracts | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Provisional pricing arrangement | ( | ) | ( | ) | |||||||||||
Total | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Qualitative/Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||
Fair Value at June 30, 2020 (In Millions) | Balance Sheet Location | Valuation Technique | Unobservable Input | Range or Point Estimate (Weighted Average) | |||||||||
Customer supply agreement | $ | Other current assets | Market Approach | Management's estimate of hot-rolled coil steel price per net ton | $562 - $639 $(564) | ||||||||
Provisional pricing arrangements | $ | Other current assets | Market Approach | Management's estimate of Platts 62% price per dry metric ton | $ | ||||||||
Atlantic Basin Pellet Premium | $ |
(In Millions) | |||||||||||||||
Level 3 Assets | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||
Total gains included in earnings | |||||||||||||||
Settlements | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Ending balance | $ | $ | $ | $ | |||||||||||
Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date | $ | $ | $ | $ |
(In Millions) | |||||||||||||||
Level 3 Liabilities | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Beginning balance | $ | $ | ( | ) | $ | ( | ) | $ | |||||||
Total gains (losses) included in earnings | ( | ) | ( | ) | |||||||||||
Settlements | |||||||||||||||
Ending balance | $ | $ | $ | $ |
(In Millions) | |||||||||||||||||
June 30, 2020 | December 31, 2019 | ||||||||||||||||
Classification | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Long-term debt: | |||||||||||||||||
Senior Notes | Level 1 | $ | $ | $ | $ | ||||||||||||
IRBs due 2024 to 2028 | Level 1 | ||||||||||||||||
ABL Facility - outstanding balance | Level 2 | ||||||||||||||||
Total long-term debt | $ | $ | $ | $ |
(In Millions) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization: | |||||||||||||||
Prior service costs | |||||||||||||||
Net actuarial loss | |||||||||||||||
Net periodic benefit cost (credit) | $ | ( | ) | $ | $ | ( | ) | $ |
(In Millions) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization: | |||||||||||||||
Prior service credits | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net actuarial loss | |||||||||||||||
Net periodic benefit cost (credit) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(In Millions) | |||||||
June 30, 2020 | December 31, 2019 | ||||||
Asset retirement obligations1 | $ | $ | |||||
Less current portion | |||||||
Long-term asset retirement obligations | $ | $ |
(In Millions) | |||||||
2020 | 2019 | ||||||
Asset retirement obligation as of January 1 | $ | $ | |||||
Increase from AK Steel acquisition | |||||||
Accretion expense | |||||||
Remediation payments | ( | ) | ( | ) | |||
Asset retirement obligation as of June 30 | $ | $ |
Derivatives designated as hedging instruments under Topic 815: | Derivatives not designated as hedging instruments under Topic 815: | |||||||||||||||
Derivative Asset (Liability) | June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | ||||||||||||
Other current assets: | ||||||||||||||||
Customer supply agreement | $ | $ | $ | $ | ||||||||||||
Provisional pricing arrangements | ||||||||||||||||
Commodity contracts | ||||||||||||||||
Other non-current assets: | ||||||||||||||||
Commodity contracts | ||||||||||||||||
Other current liabilities: | ||||||||||||||||
Provisional pricing arrangements | ( | ) | ||||||||||||||
Commodity contracts | ( | ) | ( | ) | ( | ) | ||||||||||
Foreign exchange contracts | ( | ) | ||||||||||||||
Other non-current liabilities: | ||||||||||||||||
Commodity contracts | ( | ) | ( | ) | ||||||||||||
Foreign exchange contracts | ( | ) |
(In Millions) | |||||||||||
June 30, 2020 | December 31, 2019 | ||||||||||
Unit of Measure | Maturity Dates | Notional Amount | Notional Amount | ||||||||
Commodity contracts: | |||||||||||
Natural gas | MMBtu | July 2020 - December 2021 | |||||||||
Diesel | Gallons | — | |||||||||
Zinc | Pounds | July 2020 - December 2021 | |||||||||
Electricity | Megawatt hours | July 2020 - December 2021 | |||||||||
Foreign exchange contracts: | |||||||||||
Canadian dollars | CAD | July 2020 - December 2021 | C$ | C$ |
(In Millions) | ||||
Hedge: | Estimated Gains (Losses) | |||
Natural gas | $ | ( | ) | |
Zinc | ||||
Electricity | ( | ) |
(In Millions) | |||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivatives | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Customer supply agreements | Revenues | $ | $ | $ | $ | ||||||||||||||
Provisional pricing arrangements | Revenues | ||||||||||||||||||
Foreign exchange contracts | Other non-operating income | ||||||||||||||||||
Commodity contracts | Cost of goods sold | ( | ) | ||||||||||||||||
Total | $ | $ | $ | $ |
Declaration Date | Record Date | Payment Date | Dividend Declared per Common Share1 | |||||
2/18/2020 | 4/3/2020 | 4/15/2020 | $ | |||||
12/2/2019 | 1/3/2020 | 1/15/2020 | ||||||
9/3/2019 | 10/4/2019 | 10/15/2019 | ||||||
5/31/2019 | 7/5/2019 | 7/15/2019 | ||||||
2/19/2019 | 4/5/2019 | 4/15/2019 | ||||||
10/18/2018 | 1/4/2019 | 1/15/2019 |
(In Millions) | |||||||||||||||
Postretirement Benefit Liability, net of tax | Foreign Currency Translation | Derivative Financial Instruments, net of tax | Accumulated Other Comprehensive Loss | ||||||||||||
December 31, 2019 | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||
Other comprehensive loss before reclassifications | ( | ) | ( | ) | ( | ) | |||||||||
Net loss reclassified from accumulated other comprehensive loss | |||||||||||||||
March 31, 2020 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Other comprehensive income before reclassifications | |||||||||||||||
Net loss reclassified from accumulated other comprehensive loss | |||||||||||||||
June 30, 2020 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(In Millions) | |||||||||||
Postretirement Benefit Liability, net of tax | Derivative Financial Instruments, net of tax | Accumulated Other Comprehensive Loss | |||||||||
December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Other comprehensive income before reclassifications | |||||||||||
Net loss reclassified from accumulated other comprehensive loss | |||||||||||
March 31, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | |||||||
Net loss reclassified from accumulated other comprehensive loss | |||||||||||
June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(In Millions) | ||||||||||||||||||
Details about Accumulated Other Comprehensive Loss Components | Amount of (Gain)/Loss Reclassified into Income, Net of Tax | Affected Line Item in the Statement of Unaudited Condensed Consolidated Operations | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
Amortization of pension and OPEB liability: | ||||||||||||||||||
Prior service credits | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | Other non-operating income | |||||
Net actuarial loss | Other non-operating income | |||||||||||||||||
$ | $ | Total before taxes | ||||||||||||||||
( | ) | ( | ) | ( | ) | ( | ) | Income tax benefit (expense) | ||||||||||
$ | $ | $ | $ | Net of taxes | ||||||||||||||
Unrealized loss on derivative financial instruments: | ||||||||||||||||||
Commodity contracts | $ | $ | $ | $ | Cost of goods sold | |||||||||||||
( | ) | ( | ) | ( | ) | Income tax benefit (expense) | ||||||||||||
$ | $ | $ | $ | Net of taxes | ||||||||||||||
Total reclassifications for the period, net of tax | $ | $ | $ | $ |
Mine | Cleveland-Cliffs Inc. | ArcelorMittal USA | U.S. Steel | |||
Hibbing |
(In Millions) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenue from related parties | $ | $ | $ | $ | |||||||||||
Revenues1 | $ | $ | $ | $ | |||||||||||
Related party revenues as a percent of Revenues1 | % | % | % | % | |||||||||||
Purchases from related parties | $ | $ | $ | $ |
(In Millions) | ||||||||
Balance Sheet Location | June 30, 2020 | December 31, 2019 | ||||||
Accounts receivable, net | $ | $ | ||||||
Other current assets | ||||||||
Accounts payable | ( | ) | ||||||
Other current liabilities | ( | ) | ( | ) |
(In Millions) | |||
June 30, 2020 | |||
Cash and cash equivalents | $ | ||
Inventories | |||
Property, plant and equipment, net | |||
Accounts payable | ( | ) | |
Other assets (liabilities), net | ( | ) | |
Noncontrolling interests | ( | ) |
(In Millions, Except Per Share Amounts) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Income (loss) from continuing operations | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Income from continuing operations attributable to noncontrolling interest | ( | ) | ( | ) | |||||||||||
Net income (loss) from continuing operations attributable to Cliffs shareholders | ( | ) | ( | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | ( | ) | ( | ) | ( | ) | |||||||||
Net income (loss) attributable to Cliffs shareholders | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Weighted average number of shares: | |||||||||||||||
Basic | |||||||||||||||
Convertible senior notes | |||||||||||||||
Employee stock plans | |||||||||||||||
Diluted | |||||||||||||||
Earnings (loss) per common share attributable to Cliffs shareholders - basic: | |||||||||||||||
Continuing operations | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Discontinued operations | |||||||||||||||
$ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Earnings (loss) per common share attributable to Cliffs shareholders - diluted: | |||||||||||||||
Continuing operations | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Discontinued operations | |||||||||||||||
$ | ( | ) | $ | $ | ( | ) | $ |
(In Millions) | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Shares related to employee stock plans |
(In Millions) | |||||||
June 30, 2020 | December 31, 2019 | ||||||
Environmental obligations | $ | $ | |||||
Less current portion | |||||||
Long-term environmental obligations | $ | $ |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
(In Millions, Except Sales Tons) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Sales volume (in thousands): | |||||||||||||||
Steel and Manufacturing (net tons) | 619 | — | 818 | — | |||||||||||
Mining and Pelletizing sales (long tons) | 4,759 | 6,227 | 6,893 | 7,777 | |||||||||||
Less: Intercompany sales (long tons) | (1,041 | ) | (38 | ) | (1,824 | ) | (38 | ) | |||||||
Mining and Pelletizing consolidated sales (long tons) | 3,718 | 6,189 | 5,069 | 7,739 | |||||||||||
Revenues: | |||||||||||||||
Steel and Manufacturing net sales to external customers | $ | 715.1 | $ | — | $ | 932.6 | $ | — | |||||||
Mining and Pelletizing net sales1 | 489.0 | 747.2 | 718.4 | 904.2 | |||||||||||
Less: Intercompany sales | (111.4 | ) | (4.0 | ) | (199.2 | ) | (4.0 | ) | |||||||
Mining and Pelletizing net sales to external customers | 377.6 | 743.2 | 519.2 | 900.2 | |||||||||||
— | |||||||||||||||
Total revenues | $ | 1,092.7 | $ | 743.2 | $ | 1,451.8 | $ | 900.2 |
(In Millions) | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | Variance Favorable/ (Unfavorable) | 2020 | 2019 | Variance Favorable/ (Unfavorable) | ||||||||||||||||||
Cost of goods sold | $ | (1,207.5 | ) | $ | (480.2 | ) | $ | (727.3 | ) | $ | (1,563.5 | ) | $ | (606.3 | ) | $ | (957.2 | ) | |||||
Selling, general and administrative expenses | (62.1 | ) | (29.4 | ) | (32.7 | ) | (89.6 | ) | (56.7 | ) | (32.9 | ) | |||||||||||
Acquisition-related costs | (18.4 | ) | — | (18.4 | ) | (60.9 | ) | — | (60.9 | ) | |||||||||||||
Miscellaneous – net: | |||||||||||||||||||||||
Empire idle costs | (3.7 | ) | (5.3 | ) | 1.6 | (7.0 | ) | (9.3 | ) | 2.3 | |||||||||||||
HBI production plant startup costs | (7.1 | ) | (1.1 | ) | (6.0 | ) | (15.0 | ) | (1.9 | ) | (13.1 | ) | |||||||||||
Other | (2.3 | ) | (0.4 | ) | (1.9 | ) | (3.0 | ) | — | (3.0 | ) | ||||||||||||
Total Miscellaneous – net | (13.1 | ) | (6.8 | ) | (6.3 | ) | (25.0 | ) | (11.2 | ) | (13.8 | ) | |||||||||||
Total operating costs | $ | (1,301.1 | ) | $ | (516.4 | ) | $ | (784.7 | ) | $ | (1,739.0 | ) | $ | (674.2 | ) | $ | (1,064.8 | ) |
(In Millions) | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | Variance Favorable/ (Unfavorable) | 2020 | 2019 | Variance Favorable/ (Unfavorable) | ||||||||||||||||||
Interest expense, net | $ | (68.7 | ) | $ | (26.1 | ) | $ | (42.6 | ) | $ | (99.7 | ) | $ | (51.2 | ) | $ | (48.5 | ) | |||||
Other non-operating income (expense): | |||||||||||||||||||||||
Gain (loss) on extinguishment of debt | 129.4 | (17.9 | ) | 147.3 | 132.6 | (18.2 | ) | 150.8 | |||||||||||||||
Net periodic benefit credits (costs) other than service costs component | 15.1 | (0.1 | ) | 15.2 | 20.6 | (0.2 | ) | 20.8 | |||||||||||||||
Other | 0.1 | 0.7 | (0.6 | ) | 0.6 | 1.2 | (0.6 | ) | |||||||||||||||
Total other income (expense) | $ | 75.9 | $ | (43.4 | ) | $ | 119.3 | $ | 54.1 | $ | (68.4 | ) | $ | 122.5 |
(In Millions, Except Percentages) | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | Variance | 2020 | 2019 | Variance | ||||||||||||||||||
Income tax benefit (expense) | $ | 24.7 | $ | (22.0 | ) | $ | 46.7 | $ | 76.1 | $ | (18.3 | ) | $ | 94.4 | |||||||||
Effective tax rate | 18.6 | % | 12.0 | % | 6.6 | % | 32.6 | % | 11.6 | % | 21.0 | % |
(In Millions) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) | $ | (108.1 | ) | $ | 160.8 | $ | (156.7 | ) | $ | 138.7 | |||||
Less: | |||||||||||||||
Interest expense, net | (68.6 | ) | (26.3 | ) | (99.7 | ) | (51.4 | ) | |||||||
Income tax benefit (expense) | 24.7 | (22.0 | ) | 76.1 | (18.3 | ) | |||||||||
Depreciation, depletion and amortization | (77.1 | ) | (21.0 | ) | (111.5 | ) | (40.9 | ) | |||||||
EBITDA | $ | 12.9 | $ | 230.1 | $ | (21.6 | ) | $ | 249.3 | ||||||
Less: | |||||||||||||||
EBITDA of noncontrolling interests1 | $ | 20.5 | $ | — | $ | 25.1 | $ | — | |||||||
Gain (loss) on extinguishment of debt | 129.4 | (17.9 | ) | 132.6 | (18.2 | ) | |||||||||
Severance costs | (16.6 | ) | — | (35.9 | ) | (1.7 | ) | ||||||||
Acquisition-related costs excluding severance costs | (1.8 | ) | — | (25.0 | ) | — | |||||||||
Amortization of inventory step-up | (36.2 | ) | — | (59.4 | ) | — | |||||||||
Impact of discontinued operations | (0.4 | ) | (0.4 | ) | 0.3 | (0.4 | ) | ||||||||
Adjusted EBITDA | $ | (82.0 | ) | $ | 248.4 | $ | (59.3 | ) | $ | 269.6 |
(In Millions) | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||
Steel and Manufacturing | $ | (104.0 | ) | $ | (1.1 | ) | $ | (102.9 | ) | $ | (115.1 | ) | $ | (1.9 | ) | $ | (113.2 | ) | |||||
Mining and Pelletizing | 82.4 | 280.5 | (198.1 | ) | 164.2 | 328.0 | (163.8 | ) | |||||||||||||||
Corporate and eliminations | (60.4 | ) | (31.0 | ) | (29.4 | ) | (108.4 | ) | (56.5 | ) | (51.9 | ) | |||||||||||
Total Adjusted EBITDA | $ | (82.0 | ) | $ | 248.4 | $ | (330.4 | ) | $ | (59.3 | ) | $ | 269.6 | $ | (328.9 | ) |
Three Months Ended | Six Months Ended | ||||||
June 30, 2020 | June 30, 2020 | ||||||
Volumes - In Thousands of Net Tons | |||||||
Flat-rolled steel shipments | 619 | 818 | |||||
Operating Results - In Millions | |||||||
Revenues | $ | 715.1 | $ | 932.6 | |||
Cost of goods sold | $ | (859.9 | ) | $ | (1,106.5 | ) | |
Adjusted EBITDA1 | $ | (104.0 | ) | $ | (115.1 | ) | |
Selling Price - Per Net Ton | |||||||
Average net selling price per net ton of flat-rolled steel | $ | 1,056 | $ | 1,042 | |||
Revenues Attributable to International Customers | |||||||
Revenues to customers outside the United States (In Millions) | $ | 52.0 | $ | 70.9 | |||
Revenues to customers outside the United States as a percent of total revenues | 7.3 | % | 7.6 | % |
Three Months Ended | Six Months Ended | |||||
Market | June 30, 2020 | June 30, 2020 | ||||
Automotive | 51 | % | 52 | % | ||
Infrastructure and Manufacturing | 28 | % | 26 | % | ||
Distributors and Converters | 21 | % | 22 | % |
(In Millions) | |||||||||||||||
Three Months Ended June 30, | |||||||||||||||
2020 | 2019 | Change | Percent change | ||||||||||||
Volumes - In Thousands of Long Tons1,2 | |||||||||||||||
Sales tons | 4,759 | 6,227 | (1,468 | ) | (23.6 | )% | |||||||||
Production tons | 2,038 | 5,177 | (3,139 | ) | (60.6 | )% | |||||||||
Operating Results - In Millions2 | |||||||||||||||
Revenues | $ | 489.0 | $ | 747.2 | $ | (258.2 | ) | (34.6 | )% | ||||||
Cost of goods sold | $ | (427.2 | ) | $ | (482.6 | ) | $ | 55.4 | (11.5 | )% | |||||
Adjusted EBITDA | $ | 82.4 | $ | 280.5 | $ | (198.1 | ) | (70.6 | )% |
Three Months Ended June 30, | |||||||||||||||
Per Ton Information | 2020 | 2019 | Change | Percent change | |||||||||||
Realized product revenue rate1 | $ | 94.73 | $ | 112.64 | $ | (17.91 | ) | (15.9 | )% | ||||||
Cash cost of goods sold rate1,2 | $ | 77.71 | $ | 67.00 | $ | 10.71 | 16.0 | % | |||||||
Depreciation, depletion & amortization | 4.03 | 3.15 | 0.88 | 27.9 | % | ||||||||||
Total cost of goods sold | $ | 81.74 | $ | 70.15 | $ | 11.59 | 16.5 | % |
• | Lower sales volume of 1.5 million long tons, primarily due to reduced demand as customers idled their blast furnaces in response to the COVID-19 pandemic, which resulted in decreased revenue of $165 million. |
• | A decrease in the average year-to-date realized product revenue rate of $17.91 per long ton, or 15.9%, during the three months ended June 30, 2020, compared to the prior-year period, which resulted in a decrease of $86 million, predominantly due to lower pellet premiums, which negatively affected the realized revenue rate by $16 per long ton or $76 million. |
(In Millions) | |||||||||||||||
Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | Change | Percent change | ||||||||||||
Volumes - In Thousands of Long Tons1,2 | |||||||||||||||
Sales tons | 6,893 | 7,777 | (884 | ) | (11.4 | )% | |||||||||
Production tons | 6,870 | 9,578 | (2,708 | ) | (28.3 | )% | |||||||||
Operating Results - In Millions2 | |||||||||||||||
Revenues | $ | 718.4 | $ | 904.2 | $ | (185.8 | ) | (20.5 | )% | ||||||
Cost of goods sold | $ | (594.5 | ) | $ | (608.7 | ) | $ | 14.2 | (2.3 | )% | |||||
Adjusted EBITDA | $ | 164.2 | $ | 328.0 | $ | (163.8 | ) | (49.9 | )% |
Six Months Ended June 30, | |||||||||||||||
Per Ton Information | 2020 | 2019 | Change | Percent change | |||||||||||
Realized product revenue rate1,3 | $ | 96.21 | $ | 108.89 | $ | (12.68 | ) | (11.6 | )% | ||||||
Cash cost of goods sold rate1,2 | $ | 72.74 | $ | 65.99 | $ | 6.75 | 10.2 | % | |||||||
Depreciation, depletion & amortization | 5.50 | 4.90 | 0.60 | 12.2 | % | ||||||||||
Total cost of goods sold | $ | 78.24 | $ | 70.89 | $ | 7.35 | 10.4 | % |
• | Lower sales volume of 0.9 million long tons, primarily due to reduced demand as customers idled their blast furnaces in response to the COVID-19 pandemic, which resulted in decreased revenue of $96 million. |
• | A decrease in the average year-to-date realized product revenue rate of $12.68 per long ton, or 11.6%, during the six months ended June 30, 2020, compared to the prior-year period, which resulted in a decrease of $88 million, predominantly due to: |
◦ | Lower pellet premiums which negatively affected the realized revenue rate by $12 per long ton or $83 million; and |
◦ | A decrease in the hot-rolled coil steel price, which negatively affected the realized revenue rate by $5 per long ton, or $35 million, during the six months ended June 30, 2020. |
◦ | These decreases were offset partially by the realization of deferred revenue of $35 million, or $5 per long ton, as a result of the termination of the AK Steel iron ore pellet sales agreement. |
(In Millions) | |||
June 30, 2020 | |||
Cash and cash equivalents | $ | 73.7 | |
Cash and cash equivalents from discontinued operations, included within Other current assets | 5.3 | ||
Less: Cash and cash equivalents from variable interest entities | (1.0 | ) | |
Total cash and cash equivalents | $ | 78.0 | |
Available borrowing base on ABL Facility1 | $ | 1,652.1 | |
Borrowings | (550.0 | ) | |
Letter of credit obligations | (198.5 | ) | |
Borrowing capacity available | $ | 903.6 |
(In Millions) | |||||||
June 30, 2020 | December 31, 2019 | ||||||
Current assets | $ | 2,464.5 | $ | 891.0 | |||
Non-current assets | 5,104.5 | 2,381.8 | |||||
Current liabilities | 715.3 | 392.9 | |||||
Non-current liabilities | 6,344.6 | 2,791.7 |
(In Millions) | |||
Six Months Ended | |||
June 30, 2020 | |||
Revenues1 | $ | 1,414.2 | |
Cost of goods sold | (1,546.0 | ) | |
Loss from continuing operations | (168.0 | ) | |
Net loss | (167.3 | ) | |
Net loss attributable to Cliffs shareholders | (167.3 | ) |
(In Millions) | |||||||
June 30, 2020 | December 31, 2019 | ||||||
Balances with non-Guarantor subsidiaries: | |||||||
Accounts receivable, net | $ | 6.6 | $ | — | |||
Accounts payable | (14.0 | ) | — | ||||
Balances with other related parties: | |||||||
Accounts receivable, net | $ | 91.6 | $ | 31.1 | |||
Other current assets | 35.3 | 44.5 | |||||
Accounts payable | (2.4 | ) | — | ||||
Other current liabilities | (2.0 | ) | (2.0 | ) |
Positive or Negative Effect on Pre-tax Income (In Millions) | ||||||||
Commodity Derivative | 10% Increase or Decrease | 25% Increase or Decrease | ||||||
Natural gas | $ | 9.0 | $ | 22.3 | ||||
Electricity | 3.4 | 8.6 | ||||||
Zinc | 1.3 | 3.4 | ||||||
Other | 1.3 | 1.3 |
• | severe financial hardship, bankruptcy, temporary or permanent shutdowns or operational challenges, due to the ongoing COVID-19 pandemic or otherwise, of one or more of our major customers, including customers in the automotive market, key suppliers or contractors, which, among other adverse effects, could lead to reduced demand for our products, increased difficulty collecting receivables, and customers and/or suppliers asserting force majeure or other reasons for not performing their contractual obligations to us; |
• | uncertainty and weaknesses in global economic conditions, including downward pressure on prices caused by the COVID-19 pandemic, oversupply of imported products, reduced market demand and risks related to U.S. government actions with respect to Section 232, the USMCA and/or other trade agreements, treaties or policies; |
• | uncertainties associated with the highly competitive and highly cyclical steel industry and reliance on the demand for steel from the automotive industry; |
• | continued volatility of steel and iron ore prices and other trends, which may impact the price-adjustment calculations under certain of our sales contracts; |
• | our ability to successfully diversify our product mix and add new customers for our Mining and Pelletizing segment beyond our traditional blast furnace clientele; |
• | our ability to cost-effectively achieve planned production rates or levels, including at our HBI production plant currently under construction, and to resume full operations at certain facilities that are or were temporarily idled due to the COVID-19 pandemic; |
• | our ability to successfully identify and consummate any strategic investments or development projects, including our HBI production plant; |
• | the impact of our steelmaking customers reducing their steel production due to the COVID-19 pandemic, or increased market share of steel produced using methods other than those used by our customers, or increased market share of lighter-weight steel alternatives, including aluminum; |
• | our ability to maintain adequate liquidity, our level of indebtedness and the availability of capital could limit cash flow available to fund working capital, planned capital expenditures, acquisitions, and other general corporate purposes or ongoing needs of our business; |
• | our actual economic iron ore reserves or reductions in current mineral estimates, including whether any mineralized material qualifies as a reserve; |
• | the outcome of any contractual disputes with our customers, joint venture partners or significant energy, material or service providers or any other litigation or arbitration; |
• | problems or uncertainties with sales volume or mix, productivity, transportation, environmental liabilities, employee-benefit costs and other risks of the steel and mining industries; |
• | impacts of existing and increasing governmental regulation and related costs and liabilities, including failure to receive or maintain required operating and environmental permits, approvals, modifications or other authorization of, or from, any governmental or regulatory entity and costs related to implementing improvements to ensure compliance with regulatory changes; |
• | our ability to maintain appropriate relations with unions and employees; |
• | the ability of our customers, joint venture partners and third-party service providers to meet their obligations to us on a timely basis or at all; |
• | events or circumstances that could impair or adversely impact the viability of a production plant or mine and the carrying value of associated assets, as well as any resulting impairment charges; |
• | uncertainties associated with natural disasters, weather conditions, unanticipated geological conditions, supply or price of energy, equipment failures, infectious disease outbreaks and other unexpected events; |
• | adverse changes in interest rates, foreign currency rates and tax laws; |
• | the potential existence of significant deficiencies or material weakness in our internal control over financial reporting; |
• | our ability to realize the anticipated benefits of the Merger and to successfully integrate the businesses of AK Steel into our existing businesses, including uncertainties associated with maintaining relationships with customers, vendors and employees, as well as realizing additional future synergies; |
• | additional debt we assumed or issued in connection with the Merger, as well as additional debt we incurred in connection with enhancing our liquidity during the COVID-19 pandemic, may negatively impact our credit profile and limit our financial flexibility; |
• | changes in the cost of raw materials and supplies; |
• | supply chain disruptions or poor quality of raw materials or supplies, including scrap, coal, coke and alloys; |
• | disruptions in, or failures of, our information technology systems, including those related to cybersecurity; and |
• | unanticipated costs associated with healthcare, pension and OPEB obligations. |
(In Millions) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Cost of goods sold | $ | 427.2 | $ | 482.6 | $ | 594.5 | $ | 608.7 | |||||||
Less: | |||||||||||||||
Freight | 38.2 | 45.8 | 55.2 | 57.4 | |||||||||||
Depreciation, depletion & amortization | 19.2 | 19.6 | 37.9 | 38.1 | |||||||||||
Cash cost of goods sold | $ | 369.8 | $ | 417.2 | $ | 501.4 | $ | 513.2 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares (or Units) Purchased1 | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | ||||||||||
April 1 - 30, 2020 | 2,369 | $ | 3.80 | — | $ | — | ||||||||
May 1 - 31, 2020 | 263,594 | $ | 4.45 | — | $ | — | ||||||||
June 1 - 30, 2020 | 20,662 | $ | 5.78 | — | $ | — | ||||||||
Total | 286,625 | $ | 4.54 | — | ||||||||||
1 All shares were delivered to us to satisfy tax withholding obligations due upon the vesting or payment of stock awards. |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit Number | Exhibit | |
Indenture, dated as of April 17, 2020, by and among Cleveland-Cliffs Inc., the guarantors party thereto and U.S. Bank National Association, as trustee and first lien notes collateral agent (relating to Cleveland-Cliffs Inc.’s 9.875% Senior Secured Notes due 2025) (including Form of Note) (filed herewith). | ||
First Supplemental Indenture, dated as of April 24, 2020, by and among Cleveland-Cliffs Inc., the guarantors party thereto and U.S. Bank National Association, as trustee and first lien notes collateral agent (relating to Cleveland-Cliffs Inc.’s 9.875% Senior Secured Notes due 2025) (including Form of Note) (filed herewith). | ||
Second Supplemental Indenture, dated as of May 22, 2020, by and among Cleveland-Cliffs Inc., the additional guarantors party thereto and U.S. Bank National Association, as trustee and first lien notes collateral agent (relating to Cleveland-Cliffs Inc.’s 9.875% Senior Secured Notes due 2025) (filed herewith). | ||
Sixth Supplemental Indenture, dated as of May 22, 2020, by and among Cleveland-Cliffs Inc., the additional guarantors party thereto and U.S. Bank National Association, as trustee (relating to Cleveland-Cliffs Inc.’s 5.75% Senior Notes due 2025) (filed herewith). | ||
Third Supplemental Indenture, dated as of May 22, 2020, by and among Cleveland-Cliffs Inc., the additional guarantors party thereto and U.S. Bank National Association, as trustee and first lien notes collateral agent (relating to Cleveland-Cliffs Inc.’s 4.875% Senior Secured Notes due 2024) (filed herewith). | ||
Second Supplemental Indenture, dated as of May 22, 2020, by and among Cleveland-Cliffs Inc., the additional guarantors party thereto and U.S. Bank National Association, as trustee (relating to Cleveland-Cliffs Inc.’s 5.875% Senior Guaranteed Notes due 2027) (filed herewith). | ||
First Supplemental Indenture, dated as of May 22, 2020, by and among Cleveland-Cliffs Inc., the additional guarantors party thereto and U.S. Bank National Association, as trustee (relating to Cleveland-Cliffs Inc.’s 7.00% Senior Guaranteed Notes due 2027) (filed herewith). | ||
First Supplemental Indenture, dated as of May 22, 2020, by and among Cleveland-Cliffs Inc., the additional guarantors party thereto and U.S. Bank National Association, as trustee (relating to Cleveland-Cliffs Inc.’s 6.375% Senior Guaranteed Notes due 2025) (filed herewith). | ||
First Supplemental Indenture, dated as of May 22, 2020, by and among Cleveland-Cliffs Inc., the additional guarantors party thereto and U.S. Bank National Association, as trustee and first lien notes collateral agent (relating to Cleveland-Cliffs Inc.’s 6.75% Senior Secured Notes due 2026) (filed herewith). | ||
Second Supplemental Indenture, dated as of June 19, 2020, by and among Cleveland-Cliffs Inc., the guarantors party thereto and U.S. Bank National Association, as trustee and first lien notes collateral agent (relating to Cleveland-Cliffs Inc.’s 6.75% Senior Secured Notes due 2026) (including Form of Note) (filed herewith). | ||
Schedule of the obligated group, including the parent and issuer and the subsidiary guarantors that have guaranteed the obligations under the 4.875% 2024 Senior Secured Notes, the 5.75% 2025 Senior Notes, the 6.375% 2025 Senior Notes, the 6.75% 2026 Senior Secured Notes, the 5.875% 2027 Senior Notes, the 7.00% 2027 Senior Notes and the 9.875% 2025 Senior Secured Notes issued by Cleveland-Cliffs Inc. (filed herewith). | ||
Certification Pursuant to 15 U.S.C. Section 7241, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed and dated by Lourenco Goncalves as of July 30, 2020 (filed herewith). | ||
Certification Pursuant to 15 U.S.C. Section 7241, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed and dated by Keith A. Koci as of July 30, 2020 (filed herewith). | ||
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed and dated by Lourenco Goncalves, Chairman, President and Chief Executive Officer of Cleveland-Cliffs Inc., as of July 30, 2020 (filed herewith). | ||
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed and dated by Keith A. Koci, Executive Vice President, Chief Financial Officer of Cleveland-Cliffs Inc., as of July 30, 2020 (filed herewith). | ||
Mine Safety Disclosures (filed herewith). | ||
101 | The following financial information from Cleveland-Cliffs Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Statements of Unaudited Condensed Consolidated Financial Position, (ii) the Statements of Unaudited Condensed Consolidated Operations, (iii) the Statements of Unaudited Condensed Consolidated Comprehensive Income (Loss), (iv) the Statements of Unaudited Condensed Consolidated Cash Flows, (v) the Statements of Unaudited Condensed Consolidated Changes in Equity, and (vi) Notes to the Unaudited Condensed Consolidated Financial Statements. | |
104 | The cover page from this Quarterly Report on Form 10-Q, formatted in Inline XBRL and contained in Exhibit 101. |
CLEVELAND-CLIFFS INC. | |||||||
By: | /s/ Kimberly A. Floriani | ||||||
Name: | Kimberly A. Floriani | ||||||
Title: | Vice President, Corporate Controller & Chief Accounting Officer | ||||||
Date: | July 30, 2020 |
TABLE OF CONTENTS | ||
PAGE |
ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE | |||
Section | 1.01 | Definitions | |
Section | 1.02 | Other Definitions | |
Section | 1.03 | Incorporation by Reference of Trust Indenture Act | |
Section | 1.04 | Rules of Construction | |
ARTICLE 2 THE NOTES | |||
Section | 2.01 | Form, Dating and Terms | |
Section | 2.02 | Execution and Authentication | |
Section | 2.03 | Registrar and Paying Agent | |
Section | 2.04 | Paying Agent to Hold Money in Trust | |
Section | 2.05 | Holder Lists | |
Section | 2.06 | Transfer and Exchange | |
Section | 2.07 | [Intentionally Omitted] | |
Section | 2.08 | [Intentionally Omitted] | |
Section | 2.09 | Form of Certificate to be Delivered in Connection with Transfers Pursuant to Regulation S | |
Section | 2.10 | Mutilated, Destroyed, Lost or Stolen Notes | |
Section | 2.11 | Outstanding Notes | |
Section | 2.12 | Temporary Notes | |
Section | 2.13 | Cancellation | |
Section | 2.14 | Payment of Interest; Defaulted Interest | |
Section | 2.15 | Computation of Interest | |
Section | 2.16 | CUSIP, Common Code and ISIN Numbers | |
ARTICLE 3 COVENANTS | |||
Section | 3.01 | Payment of Notes | |
Section | 3.02 | Limitation on Asset Dispositions of Notes Collateral | |
Section | 3.03 | Restrictions on Liens | |
Section | 3.04 | Restrictions on Sale and Leaseback Transactions | |
Section | 3.05 | [Intentionally Omitted] | |
Section | 3.06 | Change of Control Triggering Event | |
Section | 3.07 | Reports to Holders | |
Section | 3.08 | Additional Guarantees | |
Section | 3.09 | [Intentionally Omitted] | |
Section | 3.10 | Corporate Existence | |
Section | 3.11 | Compliance Certificate | |
Section | 3.12 | Further Instruments and Acts | |
Section | 3.13 | Stay, Extension and Usury Laws | |
ARTICLE 4 SUCCESSOR COMPANY | |||
Section | 4.01 | Consolidation, Merger or Sale of Assets | |
ARTICLE 5 REDEMPTION AND PREPAYMENT | |||
Section | 5.01 | Notices to Trustee | |
Section | 5.02 | Selection of Notes to Be Redeemed or Purchased |
TABLE OF CONTENTS | ||
PAGE |
Section | 5.03 | Notice of Redemption | |
Section | 5.04 | Effect of Notice of Redemption | |
Section | 5.05 | Deposit of Redemption or Purchase Price | |
Section | 5.06 | Notes Redeemed or Purchased in Part | |
Section | 5.07 | Optional Redemption | |
Section | 5.08 | Mandatory Redemption | |
ARTICLE 6 DEFAULTS AND REMEDIES | |||
Section | 6.01 | Events of Default | |
Section | 6.02 | Acceleration | |
Section | 6.03 | Other Remedies | |
Section | 6.04 | Waiver of Past Defaults | |
Section | 6.05 | Control by Majority | |
Section | 6.06 | Limitation on Suits | |
Section | 6.07 | Rights of Holders to Receive Payment | |
Section | 6.08 | Collection Suit by Trustee | |
Section | 6.09 | Trustee May File Proofs of Claim | |
Section | 6.10 | Priorities | |
Section | 6.11 | Undertaking for Costs | |
ARTICLE 7 TRUSTEE | |||
Section | 7.01 | Duties of Trustee | |
Section | 7.02 | Rights of Trustee | |
Section | 7.03 | Individual Rights of Trustee | |
Section | 7.04 | Trustee's Disclaimer | |
Section | 7.05 | Notice of Defaults | |
Section | 7.06 | Reports by Trustee to Holders | |
Section | 7.07 | Compensation and Indemnity | |
Section | 7.08 | Replacement of Trustee | |
Section | 7.09 | Successor Trustee by Merger | |
Section | 7.10 | Eligibility; Disqualification | |
Section | 7.11 | Collateral Documents | |
Section | 7.12 | Preferential Collection of Claims Against the Company | |
Section | 7.13 | Trustee and First Lien Notes Collateral Agent in Other Capacities | |
Section | 7.14 | USA Patriot Act | |
Section | 7.15 | Calculations in Respect of the Notes | |
Section | 7.16 | Brokerage Confirmations | |
ARTICLE 8 LEGAL DEFEASANCE AND COVENANT DEFEASANCE | |||
Section | 8.01 | Option to Effect Legal Defeasance or Covenant Defeasance: Defeasance | |
Section | 8.02 | Legal Defeasance and Discharge | |
Section | 8.03 | Covenant Defeasance | |
Section | 8.04 | Conditions to Legal or Covenant Defeasance | |
Section | 8.05 | Deposited Money and U.S. Government Obligations to be Held in Trust: Other Miscellaneous Provisions | |
Section | 8.06 | Repayment to the Company |
TABLE OF CONTENTS | ||
PAGE |
Section | 8.07 | Reinstatement | |
ARTICLE 9 AMENDMENTS | |||
Section | 9.01 | Without Consent of Holders | |
Section | 9.02 | With Consent of Holders | |
Section | 9.03 | [Intentionally Omitted] | |
Section | 9.04 | Revocation and Effect of Consents and Waivers | |
Section | 9.05 | Notation on or Exchange of Notes | |
Section | 9.06 | Trustee to Sign Amendments | |
ARTICLE 10 GUARANTEE | |||
Section | 10.01 | Guarantee | |
Section | 10.02 | Limitation on Liability; Termination; Release and Discharge | |
Section | 10.03 | Right of Contribution | |
Section | 10.04 | No Subrogation | |
Section | 10.05 | Execution and Delivery of a Guarantee | |
ARTICLE 11 COLLATERAL AND SECURITY | |||
Section | 11.01 | The Collateral | |
Section | 11.02 | Further Assurances | |
Section | 11.03 | Additional Property | |
Section | 11.04 | Impairment of Security Interest | |
Section | 11.05 | Post-Closing Collateral Documents | |
Section | 11.06 | Release of Liens on the Collateral | |
Section | 11.07 | Authorization of Actions to be Taken by the Trustee or the First Lien Notes Collateral Agent Under the Collateral Documents | |
Section | 11.08 | Collateral Accounts | |
Section | 11.09 | Appointment and Authorization of U.S. Bank National Association as First Lien Notes Collateral Agent | |
ARTICLE 12 SATISFACTION AND DISCHARGE | |||
Section | 12.01 | Satisfaction and Discharge | |
Section | 12.02 | Application of Trust Money | |
ARTICLE 13 MISCELLANEOUS | |||
Section | 13.01 | Reserved | |
Section | 13.02 | Notices | |
Section | 13.03 | Communication by Holders With Other Holders | |
Section | 13.04 | Certificate and Opinion as to Conditions Precedent | |
Section | 13.05 | Statements Required in Certificate or Opinion | |
Section | 13.06 | [Intentionally Omitted] | |
Section | 13.07 | Rules by Trustee, Paying Agent and Registrar | |
Section | 13.08 | Business Days | |
Section | 13.09 | GOVERNING LAW | |
Section | 13.10 | No Recourse Against Others | |
Section | 13.11 | Successors | |
Section | 13.12 | Multiple Originals |
TABLE OF CONTENTS | ||
PAGE |
EXHIBIT A | Form of Initial Note |
EXHIBIT B | Form of Indenture Supplement to Add Guarantors |
EXHIBIT C | Form of Certificate to be Delivered in Connection with Transfers Pursuant to Regulation S |
TIA Section | Indenture Section |
310(a)(1) | 7.10 |
(a)(2) | 7.10 |
(a)(3) | N.A. |
(a)(4) | N.A. |
(a)(5) | 7.10 |
(b) | 7.08, 7.10 |
(c) | 7.10 |
311(a) | 7.12 |
(b) | 7.12 |
(c) | N.A. |
312(a) | 2.06 |
(b) | 13.03 |
(c) | 13.03 |
313(a) | 7.06 |
(b)(1) | 7.06 |
(b)(2) | 7.06 |
(c) | 7.06 |
(d) | 7.06 |
314(a) | 3.07, 3.11, 13.05 |
(c)(1) | 13.04 |
(c)(2) | 13.04 |
(c)(3) | N.A. |
(d) | 11.06(c) |
(e) | 13.05 |
315(a) | 7.01 |
(b) | 7.05, 13.02 |
(c) | 7.01 |
(d) | 7.01 |
(e) | 6.11 |
316(a)(last sentence) | N.A. |
(a)(1)(A) | 6.05 |
(a)(1)(B) | 6.04 |
(a)(2) | N.A. |
(b) | 6.07 |
(c) | 6.05 |
317(a)(1) | 6.08 |
(a)(2) | 6.09 |
(b) | 2.05 |
318(a) | 13.01 |
(a) | the sale, lease, conveyance or other disposition of any assets other than in the ordinary course of business; provided that the sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company and its Subsidiaries taken as a whole will be governed by Section 3.06 and/or Section 4.01 and not by Section 3.02; and |
(b) | the issuance of Capital Stock in any of the Company’s Subsidiaries or the sale of Capital Stock in any of its Subsidiaries (other than directors’ qualifying shares or nominal shares required to be held by applicable law to be held by a Person other than the Company or any of its Subsidiaries). |
(i) | any single transaction or series of related transactions that involves assets having a Fair Market Value of less than $50.0 million; |
(ii) | a transfer of assets between or among the Company and the Guarantors; |
(iii) | an issuance of Capital Stock by a Subsidiary of the Company to the Company or to a Subsidiary of the Company; |
(iv) | the sale or lease of inventory, products or services in the ordinary course of business; |
(v) | the sale of accounts receivable in the ordinary course of business in connection with the compromise or collection thereof; |
(vi) | any transfer of property or assets that consists of grants by the Company or its Subsidiaries in the ordinary course of business of licenses or sub-licenses, including with respect to intellectual property rights; |
(vii) | (a) the sale or other disposition of damaged, obsolete, unusable or worn out equipment that is no longer needed in the conduct of the business of the Company and its Subsidiaries, (b) the sale or other disposition of inventory, used or surplus equipment or reserves and dispositions related to the burn-off of mines or (c) the abandonment or allowance to lapse or expire or other disposition of intellectual property no longer needed in the conduct of business of the Company and its Subsidiaries; |
(ix) | operating leases entered into in the ordinary course of business; |
(x) | the granting of a Lien otherwise permitted under this Indenture; |
(xi) | the surrender or waiver of contract rights or the settlement, release or surrender of contract, tort or other claims of any kind; and |
(1) | United States dollars; |
(2) | securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality of the United States government, Canada or any member of the European Union (provided that the full faith and credit of the United States, Canada or such member of the European Commission is pledged in support of those securities) having maturities of not more than twelve months from the date of acquisition; |
(3) | certificates of deposit and Eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers’ acceptances with maturities not exceeding twelve months from the date of acquisition, and overnight bank deposits, in each case, with any lender party to the ABL Facility or any affiliate thereof or with any domestic commercial bank having capital and surplus in excess of $500.0 million and a Thomson Bank Watch Rating of “B” or better; |
(4) | repurchase obligations with a term of not more than seven days for underlying securities of the types described in clauses (2) and (3) above entered into with any financial institution meeting the qualifications specified in clause (3) above; |
(5) | commercial paper having one of the two highest ratings obtainable from Moody’s or S&P, in each case, maturing within twelve months after the date of acquisition; |
(6) | money market funds, substantially all of the assets of which constitute Cash Equivalents of the kinds described in clauses (1) through (5) of this definition; and |
(7) | marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof, in each case maturing within one year after such date and having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s. |
(1) | Excluded Equity; |
(2) | motor vehicles (excluding, for the avoidance of doubt, Mobile Equipment), the perfection of a security interest in which cannot be accomplished by filing a UCC financing statement in the central filing office in which the Company or the Guarantor that owns such property is located; |
(3) | (i) any individual parcel of Real Property with a Fair Market Value (as reasonably determined by the Company) not to exceed $25.0 million; provided that such parcel is not necessary to operate the relevant complex or facility associated with such parcel (as reasonably determined by the Company), (ii) any Real Property or interest therein used or held in connection with a mine owned by a joint venture of which the Company or a Guarantor is a party, to the extent that the joint venture agreement or other relevant agreement with the relevant joint venture partner prohibits (or requires the consent of a party other than the Company or a Guarantor or any of their respective Subsidiaries) the creation of a security interest therein, except to the extent that such term in such contract, license, lease, agreement, instrument, general intangible or other document or shareholder, joint venture or similar agreement providing for such prohibition, breach, default or termination or requiring such consent is ineffective under applicable law; and (iii) any leasehold interest in the office headquarters of the Company located at 200 Public Square, Cleveland, Ohio 44114; |
(4) | any Principal Property and Principal Subsidiary Interests to the extent that the Obligations secured by any Principal Property or Principal Subsidiary Interests (together with any other CNTA Covered Debt) would exceed, at any time that any CNTA Covered Debt is incurred, the CNTA Limit at such time; |
(5) | any property to the extent that the grant of a security interest therein (x) is prohibited by any applicable law or regulation, requires a consent not obtained of any governmental authority pursuant to any applicable law or regulation, or (y) is prohibited by, or constitutes a breach or default under or results in the termination of or requires any consent not obtained under, any contract, lease, license, agreement, instrument, general intangible or other document evidencing or giving rise to such property or creating or governing a Permitted Lien applicable to such property or, in the case of any Capital Stock, any applicable shareholder, joint venture or similar agreement (for the avoidance of doubt, whether applying to any joint venture or parent of any joint venture), except to the extent that such law or regulation or the term in such contract, license, lease, agreement, instrument, general intangible or other document or shareholder, joint venture or similar agreement providing for such prohibition, breach, default or termination or requiring such consent is ineffective under applicable law; provided that in the case of clause (y), such contractual obligation (other than any such contractual obligation entered into in the ordinary course of business) existed on the Issue Date or, with respect to any Subsidiary acquired after the Issue Date (and so long as such contractual obligation was not incurred in contemplation of such acquisition), on the date such Subsidiary is so acquired; |
(6) | any United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal law, provided that upon submission and acceptance by the PTO of an amendment to allege use pursuant to 15 U.S.C. Section 1060(a) (or any successor provision), such intent-to-use trademark application shall be considered Collateral; |
(7) | any timber to be cut, the perfection of a security interest in which cannot be accomplished by the filing of an initial financing statement; and |
(8) | any property as to which the First Lien Notes Collateral Agent and the Company reasonably agree in writing that the cost of creating or perfecting a security interest in such property is excessive in relation to the benefit afforded thereby; |
Term | Section |
“Additional Restricted Notes” | 2.01(b) |
“Agent Members” | 2.01(e)(iii) |
“Authenticating Agent” | 2.02 |
“Change of Control Offer” | 3.06(a) |
“Change of Control Payment” | 3.06(a) |
“Change of Control Payment Date” | 3.06(b) |
“Clearstream” | 2.01(b) |
“Collateral Disposition Offer” | 3.02(e) |
“Company Order” | 2.02 |
“Covenant Defeasance” | 8.03 |
“Defaulted Interest” | 2.14 |
“Euroclear” | 2.01(b) |
“Event of Default” | 6.01 |
“Excess Collateral Proceeds” | 3.02(e) |
“Global Notes” | 2.01(b) |
“Guaranteed Obligations” | 10.01 |
“Intercreditor Agreement Order” | 11.09(n) |
“Legal Defeasance” | 8.02 |
“Notes Register” | 2.03 |
“Notice of Change of Control Offer” | 3.06(b) |
“Optional Collateral Disposition Offer” | 3.02(e) |
“Paying Agent” | 2.03 |
“Payment Default” | 6.01(f) |
“Permanent Regulation S Global Note” | 2.01(b) |
“Permitted Refinancing Lien” | 1.01 |
“Post-Closing Collateral Documents” | 11.05 |
“protected purchaser” | 2.10 |
“Refinanced Lien” | 1.01 |
“Registrar” | 2.03 |
“Regulation S Global Note” | 2.01(b) |
“Regulation S Notes” | 2.01(b) |
“Restricted Period” | 2.01(b) |
“Rule 144A Global Note” | 2.01(b) |
“Rule 144A Notes” | 2.01(b) |
“Security Document Order” | 11.09(m) |
“Special Interest Payment Date” | 2.14(a) |
“Special Record Date” | 2.14(a) |
“successor person” | 4.01(a) |
“Temporary Regulation S Global Note” | 2.01(b) |
Period | Redemption price |
October 17, 2022 | 107.406% |
April 17, 2023 | 104.938% |
April 17, 2024 | 102.469% |
April 17, 2025 and thereafter | 100.000% |
CLEVELAND-CLIFFS INC. | |
By: | /s/ Keith A. Koci |
Name: Keith A. Koci | |
Title: Executive Vice President, Chief Financial Officer | |
AH MANAGEMENT, INC. AK STEEL PROPERTIES, INC. AK TUBE LLC AKS INVESTMENTS, INC. CLIFFS MINNESOTA MINING COMPANY CLIFFS TIOP, INC. CLIFFS UTAC HOLDING LLC IRONUNITS LLC LAKE SUPERIOR & ISHPEMING RAILROAD COMPANY MOUNTAIN STATE CARBON, LLC PPHC HOLDINGS, LLC SILVER BAY POWER COMPANY SNA CARBON, LLC UNITED TACONITE LLC | |
By: | /s/ James D. Graham |
Name: James D. Graham | |
Title: Secretary |
CLIFFS TIOP HOLDING, LLC CLIFFS TIOP II, LLC | |
By: | /s/ James D. Graham |
Name: James D. Graham | |
Title: General Counsel and Secretary |
CLIFFS MINING COMPANY NORTHSHORE MINING COMPANY THE CLEVELAND-CLIFFS IRON COMPANY TILDEN MINING COMPANY L.C. By: The Cleveland-Cliffs Iron Company, as its manager | |
By: | /s/ James D. Graham |
Name: James D. Graham | |
Title: Executive Vice President, Chief Legal Officer & Secretary |
AK STEEL CORPORATION AK STEEL HOLDING CORPORATION | |
By: | /s/ James D. Graham |
Name: James D. Graham | |
Title: Vice President, General Counsel and Corporate Secretary |
U.S. BANK NATIONAL ASSOCIATION, as Trustee and First Lien Notes Collateral Agent | |
By: U.S. Bank National Association | |
By: | /s/ Elizabeth A. Thuning |
Name: Elizabeth A. Thuning | |
Title: Vice President |
No. [ ] | Principal Amount $[ ] |
CUSIP NO. [ ] | |
CLEVELAND-CLIFFS INC. 9.875% Senior Secured Note due 2025 Cleveland-Cliffs Inc., an Ohio corporation, promises to pay to Cede & Co., or its registered assigns, the principal sum of [ ] Dollars ($[ ]), [, as revised by the Schedule of Increases and Decreases in Global Note attached hereto,]1 on October 17, 2025. Interest Payment Dates: April 17 and October 17 Record Dates: April 2 and October 2 Additional provisions of this Note are set forth on the other side of this Note. |
1 Include only if the Note is issued in global form. | ||||
CLEVELAND-CLIFFS INC. | |
By: | |
Name: | |
Title: |
U.S. BANK NATIONAL ASSOCIATION, as Trustee | |
By: | |
Name: Elizabeth A. Thuning Title: Vice President |
1. | Interest |
2. | Method of Payment |
3. | Paying Agent and Registrar |
2 Insert the Interest Payment Date immediately preceding the date of issuance of the applicable Additional Notes, or if the date of issuance of such Additional Notes is an Interest Payment Date, such date of issuance. | ||||
4. | Indenture |
5. | Redemption and Prepayment |
Period | Redemption price |
October 17, 2022 | 107.406% |
April 17, 2023 | 104.938% |
April 17, 2024 | 102.469% |
April 17, 2025 and thereafter | 100.000% |
6. | Change of Control Triggering Event |
7. | Denominations; Transfer; Exchange |
8. | Persons Deemed Owners |
9. | Unclaimed Money |
10. | Defeasance |
11. | Amendment, Supplement, Waiver |
12. | Defaults and Remedies |
13. | Trustee Dealings with the Company |
14. | No Recourse Against Others |
15. | Authentication |
16. | Abbreviations |
17. | CUSIP, Common Code and ISIN Numbers |
18. | Governing Law |
19. | USA Patriot Act |
To assign this Note, fill in the form below: I or we assign and transfer this Note to: |
(Print or type assignee’s name, address and zip code) |
(Insert assignee’s social security or tax I.D. No.) |
and irrevocably appoint __________________agent to transfer this Note on the books of the Company. The agent may substitute another to act for him. |
Date: | Your Signature: | ||||
Signature Guarantee: | |||||
(Signature must be guaranteed) | |||||
Sign exactly as your name appears on the other side of this Note. |
Signature Guarantee: | Signature | |
(Signature must be guaranteed) | Signature |
Date of Exchange | Amount of decrease in Principal Amount of this Global Note | Amount of increase in Principal Amount of this Global Note | Principal Amount of this Global Note following such decrease or increase | Signature of authorized signatory of Trustee of Notes Custodian |
¨ 3.02 | ¨ 3.06 |
Date: | |||
Your Signature | |||
(Sign exactly as your name appears on the other side of this Note) | |||
Signature Guarantee: | |||
(Signature must be guaranteed) | |||
Sign exactly as your name appears on the other side of this Note. |
[SUBSIDIARY GUARANTOR], as a Guarantor | |
By: | |
Name: | |
Title: |
[Address] | |
U.S. BANK NATIONAL ASSOCIATION, as Trustee | |
By: | |
Name: | |
Title: |
CLEVELAND-CLIFFS INC. | |
By: | |
Name: | |
Title: |
c/o | U.S. Bank National Association |
Re: | [l]% Senior Secured Notes due 2025 (the “Notes”) |
Very truly yours, | |
[Name of Transferor] | |
By: | |
Authorized Signature |
(a) | The aggregate principal amount of the Additional Secured Notes that may be authenticated and delivered under the Indenture, as amended hereby, shall be $555,159,000. |
(b) | The Additional Secured Notes shall be issuable in whole or in part in the form of one or more Global Securities. The depositary for such Global Securities shall be The Depository Trust Company. |
(c) | The Additional Secured Notes shall have the other terms set forth in the form of global security attached hereto as Exhibit A. |
(d) | The Additional Secured Notes shall be considered Additional Notes issued pursuant to Section 2.01 of the Indenture. |
CLEVELAND-CLIFFS INC. | |
By: | /s/ Keith A. Koci |
Name: Keith A. Koci | |
Title: Executive Vice President, Chief Financial Officer | |
AH MANAGEMENT, INC. AK STEEL PROPERTIES, INC. AK TUBE LLC AKS INVESTMENTS, INC. CLIFFS MINNESOTA MINING COMPANY CLIFFS TIOP, INC. CLIFFS UTAC HOLDING LLC IRONUNITS LLC LAKE SUPERIOR & ISHPEMING RAILROAD COMPANY MOUNTAIN STATE CARBON, LLC PPHC HOLDINGS, LLC SILVER BAY POWER COMPANY SNA CARBON, LLC UNITED TACONITE LLC | |
By: | /s/ James D. Graham |
Name: James D. Graham | |
Title: Secretary |
CLIFFS TIOP HOLDING, LLC CLIFFS TIOP II, LLC | |
By: | /s/ James D. Graham |
Name: James D. Graham | |
Title: General Counsel and Secretary |
CLIFFS MINING COMPANY NORTHSHORE MINING COMPANY THE CLEVELAND-CLIFFS IRON COMPANY TILDEN MINING COMPANY L.C. By: The Cleveland-Cliffs Iron Company, as its manager | |
By: | /s/ James D. Graham |
Name: James D. Graham | |
Title: Executive Vice President, Chief Legal Officer & Secretary |
AK STEEL CORPORATION AK STEEL HOLDING CORPORATION | |
By: | /s/ James D. Graham |
Name: James D. Graham | |
Title: Vice President, General Counsel and Corporate Secretary |
U.S. BANK NATIONAL ASSOCIATION, as Trustee and First Lien Notes Collateral Agent | |
By: U.S. Bank National Association | |
By: | /s/ Elizabeth A. Thuning |
Name: Elizabeth A. Thuning | |
Title: Vice President |
No. [ ] | Principal Amount $[ ] |
CUSIP NO. [ ] | |
CLEVELAND-CLIFFS INC. 9.875% Senior Secured Note due 2025 Cleveland-Cliffs Inc., an Ohio corporation, promises to pay to Cede & Co., or its registered assigns, the principal sum of [ ] Dollars ($[ ]), [, as revised by the Schedule of Increases and Decreases in Global Note attached hereto,]1 on October 17, 2025. Interest Payment Dates: April 17 and October 17 Record Dates: April 2 and October 2 Additional provisions of this Note are set forth on the other side of this Note. |
1 Include only if the Note is issued in global form. | ||||
CLEVELAND-CLIFFS INC. | |
By: | |
Name: | |
Title: |
U.S. BANK NATIONAL ASSOCIATION, as Trustee | |
By: | |
Name: Elizabeth A. Thuning Title: Vice President |
1. | Interest |
2. | Method of Payment |
3. | Paying Agent and Registrar |
4. | Indenture |
5. | Redemption and Prepayment |
Period | Redemption price | |
October 17, 2022 | 107.406% | |
April 17, 2023 | 104.938% | |
April 17, 2024 | 102.469% | |
April 17, 2025 and thereafter | 100.000% |
6. | Change of Control Triggering Event |
7. | Denominations; Transfer; Exchange |
8. | Persons Deemed Owners |
9. | Unclaimed Money |
10. | Defeasance |
11. | Amendment, Supplement, Waiver |
12. | Defaults and Remedies |
13. | Trustee Dealings with the Company |
14. | No Recourse Against Others |
15. | Authentication |
16. | Abbreviations |
17. | CUSIP, Common Code and ISIN Numbers |
18. | Governing Law |
19. | USA Patriot Act |
To assign this Note, fill in the form below: I or we assign and transfer this Note to: |
(Print or type assignee’s name, address and zip code) |
(Insert assignee’s social security or tax I.D. No.) |
and irrevocably appoint __________________agent to transfer this Note on the books of the Company. The agent may substitute another to act for him. |
Date: | Your Signature: | ||||
Signature Guarantee: | |||||
(Signature must be guaranteed) | |||||
Sign exactly as your name appears on the other side of this Note. |
Signature Guarantee: | Signature | |
(Signature must be guaranteed) | Signature |
Date of Exchange | Amount of decrease in Principal Amount of this Global Note | Amount of increase in Principal Amount of this Global Note | Principal Amount of this Global Note following such decrease or increase | Signature of authorized signatory of Trustee of Notes Custodian |
¨ 3.02 | ¨ 3.06 |
Date: | |||
Your Signature | |||
(Sign exactly as your name appears on the other side of this Note) | |||
Signature Guarantee: | |||
(Signature must be guaranteed) | |||
Sign exactly as your name appears on the other side of this Note. |
METALLICS SALES COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Executive Vice President, Chief Legal Officer & Secretary |
CANNON AUTOMOTIVE SOLUTIONS - BOWLING GREEN, INC., as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
FLEETWOOD METAL INDUSTRIES, LLC, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
PRECISION PARTNERS HOLDING COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
CLEVELAND-CLIFFS INC. | |
By: | /s/ Keith A. Koci |
Name: | Keith A. Koci |
Title: | Executive Vice President, Chief Financial Officer |
U.S. BANK NATIONAL ASSOCIATION, as Trustee and First Lien Notes Collateral Agent | |
By: | /s/ Elizabeth A.Thuning |
Name: | Elizabeth A. Thuning |
Title: | Vice President |
METALLICS SALES COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Executive Vice President, Chief Legal Officer & Secretary |
CANNON AUTOMOTIVE SOLUTIONS - BOWLING GREEN, INC., as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
FLEETWOOD METAL INDUSTRIES, LLC, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
PRECISION PARTNERS HOLDING COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
CLEVELAND-CLIFFS INC. | |
By: | /s/ Keith A. Koci |
Name: | Keith A. Koci |
Title: | Executive Vice President, Chief Financial Officer |
U.S. BANK NATIONAL ASSOCIATION, as Trustee | |
By: | /s/ Elizabeth A. Thuning |
Name: | Elizabeth A. Thuning |
Title: | Vice President |
METALLICS SALES COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Executive Vice President, Chief Legal Officer & Secretary |
CANNON AUTOMOTIVE SOLUTIONS - BOWLING GREEN, INC., as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
FLEETWOOD METAL INDUSTRIES, LLC, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
PRECISION PARTNERS HOLDING COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
CLEVELAND-CLIFFS INC. | |
By: | /s/ Keith A. Koci |
Name: | Keith A. Koci |
Title: | Executive Vice President, Chief Financial Officer |
U.S. BANK NATIONAL ASSOCIATION, as Trustee and First Lien Notes Collateral Agent | |
By: | /s/ Elizabeth A.Thuning |
Name: | Elizabeth A. Thuning |
Title: | Vice President |
METALLICS SALES COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Executive Vice President, Chief Legal Officer & Secretary |
CANNON AUTOMOTIVE SOLUTIONS - BOWLING GREEN, INC., as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
FLEETWOOD METAL INDUSTRIES, LLC, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
PRECISION PARTNERS HOLDING COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
CLEVELAND-CLIFFS INC. | |
By: | /s/ Keith A. Koci |
Name: | Keith A. Koci |
Title: | Executive Vice President, Chief Financial Officer |
U.S. BANK NATIONAL ASSOCIATION, as Trustee | |
By: | /s/ Elizabeth A.Thuning |
Name: | Elizabeth A. Thuning |
Title: | Vice President |
METALLICS SALES COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Executive Vice President, Chief Legal Officer & Secretary |
CANNON AUTOMOTIVE SOLUTIONS - BOWLING GREEN, INC., as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
FLEETWOOD METAL INDUSTRIES, LLC, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
PRECISION PARTNERS HOLDING COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
CLEVELAND-CLIFFS INC. | |
By: | /s/ Keith A. Koci |
Name: | Keith A. Koci |
Title: | Executive Vice President, Chief Financial Officer |
U.S. BANK NATIONAL ASSOCIATION, as Trustee | |
By: | /s/ Elizabeth A.Thuning |
Name: | Elizabeth A. Thuning |
Title: | Vice President |
METALLICS SALES COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Executive Vice President, Chief Legal Officer & Secretary |
CANNON AUTOMOTIVE SOLUTIONS - BOWLING GREEN, INC., as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
FLEETWOOD METAL INDUSTRIES, LLC, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
PRECISION PARTNERS HOLDING COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
CLEVELAND-CLIFFS INC. | |
By: | /s/ Keith A. Koci |
Name: | Keith A. Koci |
Title: | Executive Vice President, Chief Financial Officer |
U.S. BANK NATIONAL ASSOCIATION, as Trustee | |
By: | /s/ Elizabeth A.Thuning |
Name: | Elizabeth A. Thuning |
Title: | Vice President |
METALLICS SALES COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Executive Vice President, Chief Legal Officer & Secretary |
CANNON AUTOMOTIVE SOLUTIONS - BOWLING GREEN, INC., as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
FLEETWOOD METAL INDUSTRIES, LLC, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
PRECISION PARTNERS HOLDING COMPANY, as a Guarantor | |
By: | /s/ James D. Graham |
Name: | James D. Graham |
Title: | Secretary |
CLEVELAND-CLIFFS INC. | |
By: | /s/ Keith A. Koci |
Name: | Keith A. Koci |
Title: | Executive Vice President, Chief Financial Officer |
U.S. BANK NATIONAL ASSOCIATION, as Trustee and First Lien Notes Collateral Agent | |
By: | /s/ Elizabeth A.Thuning |
Name: | Elizabeth A. Thuning |
Title: | Vice President |
(a) | The aggregate principal amount of the Additional Secured Notes that may be authenticated and delivered under the Indenture, as amended hereby, shall be $120,000,000. |
(b) | The Additional Secured Notes shall be issuable in whole or in part in the form of one or more Global Securities. The depositary for such Global Securities shall be The Depository Trust Company. |
(c) | The Additional Secured Notes shall have the other terms set forth in the form of global security attached hereto as Exhibit A. |
(d) | The Additional Secured Notes shall be considered Additional Notes issued pursuant to Section 2.01 of the Indenture. |
CLEVELAND-CLIFFS INC. | |
By: | /s/ Keith A. Koci |
Name: Keith A. Koci | |
Title: Executive Vice President, Chief Financial Officer | |
AH MANAGEMENT, INC. AK STEEL PROPERTIES, INC. AK TUBE LLC AKS INVESTMENTS, INC. CANNON AUTOMOTIVE SOLUTIONS - BOWLING GREEN, INC. CLIFFS MINNESOTA MINING COMPANY CLIFFS TIOP, INC. CLIFFS UTAC HOLDING LLC FLEETWOOD METAL INDUSTRIES, LLC IRONUNITS LLC LAKE SUPERIOR & ISHPEMING RAILROAD COMPANY MOUNTAIN STATE CARBON, LLC PPHC HOLDINGS, LLC PRECISION PARTNERS HOLDING COMPANY SILVER BAY POWER COMPANY SNA CARBON, LLC UNITED TACONITE LLC | |
By: | /s/ James D. Graham |
Name: James D. Graham | |
Title: Secretary |
CLIFFS TIOP HOLDING, LLC CLIFFS TIOP II, LLC | |
By: | /s/ James D. Graham |
Name: James D. Graham | |
Title: General Counsel and Secretary |
CLIFFS MINING COMPANY METALLICS SALES COMPANY NORTHSHORE MINING COMPANY THE CLEVELAND-CLIFFS IRON COMPANY TILDEN MINING COMPANY L.C. By: The Cleveland-Cliffs Iron Company, as its manager | |
By: | /s/ James D. Graham |
Name: James D. Graham | |
Title: Executive Vice President, Chief Legal Officer & Secretary |
AK STEEL CORPORATION AK STEEL HOLDING CORPORATION | |
By: | /s/ James D. Graham |
Name: James D. Graham | |
Title: Vice President, General Counsel and Corporate Secretary |
U.S. BANK NATIONAL ASSOCIATION, as Trustee and First Lien Notes Collateral Agent | |
By: U.S. Bank National Association | |
By: | /s/ Elizabeth A. Thuning |
Name: Elizabeth A. Thuning | |
Title: Vice President |
No. [ ] | Principal Amount $[ ] |
CUSIP NO. [ ] | |
CLEVELAND-CLIFFS INC. 6.75% Senior Secured Note due 2026 Cleveland-Cliffs Inc., an Ohio corporation, promises to pay to Cede & Co., or its registered assigns, the principal sum of [ ] Dollars ($[ ]), [, as revised by the Schedule of Increases and Decreases in Global Note attached hereto,]1 on March 15, 2026. Interest Payment Dates: March 15 and September 15 Record Dates: March 1 and September 1 Additional provisions of this Note are set forth on the other side of this Note. |
1 Include only if the Note is issued in global form. | ||||
CLEVELAND-CLIFFS INC. | |
By: | |
Name: | |
Title: |
U.S. BANK NATIONAL ASSOCIATION, as Trustee | |
By: | |
Name: Elizabeth A. Thuning Title: Vice President |
1. | Interest |
2. | Method of Payment |
3. | Paying Agent and Registrar |
4. | Indenture |
5. | Redemption and Prepayment |
Period | Redemption price | |
March 15, 2022 | 105.063% | |
March 15, 2023 | 103.375% | |
March 15, 2024 | 101.688% | |
March 15, 2025 and thereafter | 100.000% |
6. | Change of Control Triggering Event |
7. | Denominations; Transfer; Exchange |
8. | Persons Deemed Owners |
9. | Unclaimed Money |
10. | Defeasance |
11. | Amendment, Supplement, Waiver |
12. | Defaults and Remedies |
13. | Trustee Dealings with the Company |
14. | No Recourse Against Others |
15. | Authentication |
16. | Abbreviations |
17. | CUSIP, Common Code and ISIN Numbers |
18. | Governing Law |
19. | USA Patriot Act |
To assign this Note, fill in the form below: I or we assign and transfer this Note to: |
(Print or type assignee’s name, address and zip code) |
(Insert assignee’s social security or tax I.D. No.) |
and irrevocably appoint __________________agent to transfer this Note on the books of the Company. The agent may substitute another to act for him. |
Date: | Your Signature: | ||||
Signature Guarantee: | |||||
(Signature must be guaranteed) | |||||
Sign exactly as your name appears on the other side of this Note. |
Signature Guarantee: | Signature | |
(Signature must be guaranteed) | Signature |
Date of Exchange | Amount of decrease in Principal Amount of this Global Note | Amount of increase in Principal Amount of this Global Note | Principal Amount of this Global Note following such decrease or increase | Signature of authorized signatory of Trustee or Notes Custodian |
¨ 3.02 | ¨ 3.06 |
Date: | |||
Your Signature | |||
(Sign exactly as your name appears on the other side of this Note) | |||
Signature Guarantee: | |||
(Signature must be guaranteed) | |||
Sign exactly as your name appears on the other side of this Note. |
Exact Name of Issuer or Guarantor Subsidiary (1) | Reported as Issuer or Guarantor Subsidiary | State of Incorporation or Organization | Primary Standard Industrial Classification Code Number | IRS Employer Identification Number | ||||
Cleveland-Cliffs Inc. | Issuer | Ohio | 1000 | 34-1464672 | ||||
AH Management, Inc. | (3) | Delaware | 3312 | 51-0390893 | ||||
AKS Investments, Inc. | (3) | Ohio | 3312 | 31-1283531 | ||||
AK Steel Corporation | (3) | Delaware | 3312 | 31-1267098 | ||||
AK Steel Holding Corporation | (3) | Delaware | 3312 | 31-1401455 | ||||
AK Steel Properties, Inc. | (3) | Delaware | 3312 | 51-0390894 | ||||
AK Tube LLC | (3) | Delaware | 3312 | 31-1283531 | ||||
Cannon Automotive Solutions - Bowling Green, Inc. | (3) | Delaware | 3312 | 26-0766559 | ||||
Cliffs Mining Company | (2) | Delaware | 1000 | 34-1120353 | ||||
Cliffs Minnesota Mining Company | (2) | Delaware | 1000 | 42-1609117 | ||||
Cliffs TIOP Holding, LLC | (2) | Delaware | 1000 | 47-2182060 | ||||
Cliffs TIOP, Inc. | (2) | Michigan | 1000 | 34-1371049 | ||||
Cliffs TIOP II, LLC | (2) | Delaware | 1000 | 61-1857848 | ||||
Cliffs UTAC Holding LLC | (2) | Delaware | 1000 | 26-2895214 | ||||
Fleetwood Metal Industries, LLC | (3) | Delaware | 3312 | 98-0508950 | ||||
IronUnits LLC | (2) | Delaware | 1000 | 34-1920747 | ||||
Lake Superior & Ishpeming Railroad Company | (2) | Michigan | 1000 | 38-6005761 | ||||
Metallics Sales Company | (3) | Delaware | 1000 | 84-2076079 | ||||
Mountain State Carbon, LLC | (3) | Delaware | 3312 | 31-1267098 | ||||
Northshore Mining Company | (2) | Delaware | 1000 | 84-1116857 | ||||
PPHC Holdings, LLC | (3) | Delaware | 3312 | 31-1283531 | ||||
Precision Partners Holding Company | (3) | Delaware | 3312 | 22-3639336 | ||||
Silver Bay Power Company | (2) | Delaware | 1000 | 84-1126359 | ||||
SNA Carbon, LLC | (3) | Delaware | 3312 | 31-1267098 | ||||
The Cleveland-Cliffs Iron Company | (2) | Ohio | 1000 | 34-0677332 | ||||
Tilden Mining Company L.C. | (2) | Michigan | 1000 | 34-1804848 | ||||
United Taconite LLC | (2) | Delaware | 1000 | 42-1609118 | ||||
(1) The address and phone number of each issuer and guarantor subsidiary is c/o Cleveland-Cliffs Inc., 200 Public Square, Suite 3300, Cleveland, Ohio 44114, (216) 694-5700. | ||||||||
(2) The entity is included as a guarantor subsidiary as of June 30, 2020 and December 31, 2019. | ||||||||
(3) The entity is included as a guarantor subsidiary as of June 30, 2020. |
1. | I have reviewed this quarterly report on Form 10-Q of Cleveland-Cliffs Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | July 30, 2020 | By: | /s/ Lourenco Goncalves | ||
Lourenco Goncalves | |||||
Chairman, President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Cleveland-Cliffs Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | July 30, 2020 | By: | /s/ Keith A. Koci | ||
Keith A. Koci | |||||
Executive Vice President, Chief Financial Officer |
(1) | The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
(2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Form 10-Q. |
Date: | July 30, 2020 | ||
By: | /s/ Lourenco Goncalves | ||
Lourenco Goncalves | |||
Chairman, President and Chief Executive Officer |
(1) | The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
(2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Form 10-Q. |
Date: | July 30, 2020 | ||
By: | /s/ Keith A. Koci | ||
Keith A. Koci | |||
Executive Vice President, Chief Financial Officer |
(A) | The total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard under section 104 of the FMSH Act (30 U.S.C. 814) for which the operator received a citation from MSHA; |
(B) | The total number of orders issued under section 104(b) of the FMSH Act (30 U.S.C. 814(b)); |
(C) | The total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under section 104(d) of the FMSH Act (30 U.S.C. 814(d)); |
(D) | The total number of imminent danger orders issued under section 107(a) of the FMSH Act (30 U.S.C. 817(a)); |
(E) | The total dollar value of proposed assessments from MSHA under the FMSH Act (30 U.S.C. 801 et seq.); |
(F) | Legal actions pending before the Federal Mine Safety and Health Review Commission involving such coal or other mine as of the last day of the period; |
(G) | Legal actions instituted before the Federal Mine Safety and Health Review Commission involving such coal or other mine during the period; and |
(H) | Legal actions resolved before the Federal Mine Safety and Health Review Commission involving such coal or other mine during the period. |
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) | (G) | (H) | |||||||||||||||||||
Mine Name/ MSHA ID No. | Operation | Section 104 S&S Citations | Section 104(b) Orders | Section 104(d) Citations & Orders | Section 107(a) Orders | Total Dollar Value of MSHA Proposed Assessments (1) | Legal Actions Pending as of Last Day of Period | Legal Actions Instituted During Period | Legal Actions Resolved During Period | |||||||||||||||||
Tilden / 2000422 | Iron Ore | 6 | — | — | — | $ | 194,651 | 3 | (2) | 3 | — | |||||||||||||||
Empire / 2001012 | Iron Ore | — | — | — | — | — | — | — | — | |||||||||||||||||
Northshore Plant / 2100831 | Iron Ore | 1 | — | — | — | 8,537 | 8 | (3) | 3 | 1 | ||||||||||||||||
Northshore Mine / 2100209 | Iron Ore | — | — | — | — | — | 1 | (4) | 1 | 1 | ||||||||||||||||
United Taconite Plant / 2103404 | Iron Ore | — | — | — | — | — | 3 | (5) | 2 | 1 | ||||||||||||||||
United Taconite Mine / 2103403 | Iron Ore | — | — | — | — | — | — | — | — | |||||||||||||||||
Coal Innovations #1 / 3609406 | Coal | — | — | — | — | — | — | — | — | |||||||||||||||||
North Fork / 3610041 | Coal | — | — | — | — | 157 | 2 | (6) | — | — |
(1) | Amounts included under the heading “Total Dollar Value of MSHA Proposed Assessments” are the total dollar amounts for proposed assessments received from MSHA for the three months ended June 30, 2020. |
(2) | This number consists of 3 pending legal actions related to contests of proposed penalties referenced in Subpart C of FMSH Act's procedural rules. |
(3) | This number consists of 4 pending legal actions related to contests of proposed penalties referenced in Subpart C of FMSH Act's procedural rules and 4 pending legal actions related to appeals of judges' decisions or orders to FMSHRC referenced in Subpart H of FMSH Act's procedural rules. |
(4) | This number consists of 1 pending legal action related to contests of proposed penalties referenced in Subpart C of FMSH Act's procedural rules. |
(5) | This number consists of 3 pending legal actions related to contests of proposed penalties referenced in Subpart C of FMSH Act's procedural rules. |
(6) | This number consists of 2 pending legal actions related to contests of proposed penalties referenced in Subpart C of FMSH Act's procedural rules. |
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Statements Of Condensed Consolidated Financial Position (Parenthetical) - $ / shares |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common shares, par value | $ 0.125 | $ 0.125 |
Common shares, authorized (in shares) | 600,000,000 | 600,000,000 |
Common shares, issued (in shares) | 428,645,866 | 301,886,794 |
Common shares, outstanding (in shares) | 399,159,988 | 270,084,005 |
Common shares in treasury (in shares) | 29,485,878 | 31,802,789 |
Statements Of Unaudited Condensed Consolidated Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (108.1) | $ 160.8 | $ (156.7) | $ 138.7 |
Other comprehensive income (loss): | ||||
Changes in pension and OPEB, net of tax | 6.0 | 5.8 | 11.6 | 11.5 |
Changes in foreign currency translation | 0.7 | 0.0 | (0.2) | 0.0 |
Changes in derivative financial instruments, net of tax | 4.5 | (2.1) | 1.5 | 0.6 |
Total other comprehensive income | 11.2 | 3.7 | 12.9 | 12.1 |
Comprehensive income (loss) | (96.9) | 164.5 | (143.8) | 150.8 |
Comprehensive income attributable to noncontrolling interests | (15.8) | 0.0 | (19.3) | 0.0 |
Comprehensive income (loss) attributable to Cliffs shareholders | $ (112.7) | $ 164.5 | $ (163.1) | $ 150.8 |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Notes) |
6 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies [Text Block] | Business, Consolidation and Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with SEC rules and regulations and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations, comprehensive income (loss), cash flows and changes in equity for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its estimates on various assumptions and historical experience, which are believed to be reasonable; however, due to the inherent nature of estimates, actual results may differ significantly due to changed conditions or assumptions. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020 or any other future period. Due to the acquisition of AK Steel, certain balances have become material and are no longer being condensed in our Statements of Unaudited Condensed Consolidated Financial Position, such as balances for Right-of-use asset, operating lease and Operating lease liability, non-current. As a result, certain prior period amounts have been reclassified to conform with the current year presentation. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2019 and in our Quarterly Report on Form 10-Q for the three months ended March 31, 2020. Acquisition of AK Steel On March 13, 2020, we consummated the Merger, pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub was merged with and into AK Steel, with AK Steel surviving the Merger as a wholly owned subsidiary of Cliffs. Refer to NOTE 3 - ACQUISITION OF AK STEEL for further information. AK Steel is a leading North American producer of flat-rolled carbon, stainless and electrical steel products, primarily for the automotive, infrastructure and manufacturing markets. The acquisition of AK Steel has transformed us into a vertically integrated producer of value-added iron ore and steel products. COVID-19 In response to the COVID-19 pandemic, we made various operational changes to adjust to the demand for our products. Although steel and iron ore production have been considered “essential” by the states in which we operate, certain of our facilities and construction activities were temporarily idled during the second quarter of 2020. Nearly all of these temporarily idled facilities were restarted as of June 30, 2020, with the exception of the Dearborn hot-end operations and Mansfield operations, which were restarted in July 2020, and the Northshore mine, which we plan to restart in early August 2020. Basis of Consolidation The unaudited condensed consolidated financial statements consolidate our accounts and the accounts of our wholly owned subsidiaries, all subsidiaries in which we have a controlling interest and two variable interest entities for which we are the primary beneficiary. All intercompany transactions and balances are eliminated upon consolidation. Reportable Segments The acquisition of AK Steel has transformed us into a vertically integrated producer of value-added iron ore and steel products and we are organized according to our differentiated products in two reportable segments - the new Steel and Manufacturing segment and the Mining and Pelletizing segment. Our new Steel and Manufacturing segment includes the assets acquired through the acquisition of AK Steel and our previously reported Metallics segment, and our Mining and Pelletizing segment includes our three active operating mines and our indefinitely idled mine. Investments in Affiliates We have investments in several businesses accounted for using the equity method of accounting. We review an investment for impairment when circumstances indicate that a loss in value below its carrying amount is other than temporary. Investees and equity ownership percentages are presented below:
We recorded a basis difference for Spartan Steel of $32.5 million as part of our acquisition of AK Steel. The basis difference relates to the excess of the fair value over the investee's carrying amount of property, plant and equipment and will be amortized over the remaining useful lives of the underlying assets. Significant Accounting Policies A detailed description of our significant accounting policies can be found in the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC, which were updated and can be found in the unaudited condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 filed with the SEC. There have been no material changes in our significant accounting policies and estimates from those disclosed therein. Recent Accounting Pronouncements Issued and Adopted On March 2, 2020, the SEC issued a final rule that amended the disclosure requirements related to certain registered securities under SEC Regulation S-X, Rule 3-10, which required separate financial statements for subsidiary issuers and guarantors of registered debt securities unless certain exceptions are met. The final rule replaces the previous requirement under Rule 3-10 to provide condensed consolidating financial information in the registrant’s financial statements with a requirement to provide alternative financial disclosures (which include summarized financial information of the parent and any issuers and guarantors, as well as other qualitative disclosures) in either the registrant’s Management's Discussion and Analysis of Financial Condition and Results of Operations or its financial statements, in addition to other simplifications. The final rule is effective for filings on or after January 4, 2021, and early adoption is permitted. We elected to early adopt this disclosure update for the period ended March 31, 2020. As a result, we have excluded the footnote disclosures required under the previous Rule 3-10, and applied the final rule by including the summarized financial information and qualitative disclosures in Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report on Form 10-Q and Exhibit 22.1, filed herewith.
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SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Notes) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Disclosure Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary Financial Statement Information | Revenues The following table represents our consolidated Revenues (excluding intercompany revenues) by market:
1 Includes Realization of deferred revenue of $34.6 million for the six months ended June 30, 2020. The following table represents our consolidated Revenues (excluding intercompany revenues) by product line:
1 Includes Realization of deferred revenue of $34.6 million for the six months ended June 30, 2020. We sell domestically to customers located primarily in the Midwestern, Southern and Eastern United States and to foreign customers, primarily in Canada, Mexico and Western Europe. Net revenues to customers located outside the United States were $176.0 million and $222.7 million for the three and six months ended June 30, 2020, respectively, and $136.4 million and $179.4 million for the three and six months ended June 30, 2019, respectively. Allowance for Credit Losses The following is a roll forward of our allowance for credit losses associated with Accounts receivable, net:
Inventories The following table presents the detail of our Inventories in the Statements of Unaudited Condensed Consolidated Financial Position:
Deferred Revenue The table below summarizes our deferred revenue balances:
Prior to the Merger, our iron ore pellet sales agreement with Severstal, subsequently assumed by AK Steel, required supplemental payments to be paid by the customer during the period 2009 through 2013. Installment amounts received under this arrangement in excess of sales were classified as deferred revenue in the Statements of Consolidated Financial Position upon receipt of payment and the revenue was recognized over the term of the supply agreement, which had extended until 2022, in equal annual installments. As a result of the termination of that iron ore pellet sales agreement, we realized $34.6 million of deferred revenue, which was recognized within Realization of deferred revenue in the Statements of Unaudited Condensed Consolidated Operations, during the six months ended June 30, 2020. We have certain other sales agreements that require customers to pay in advance. Payments received pursuant to these agreements prior to revenue being recognized are recorded as deferred revenue in Other current liabilities. Accrued Liabilities The following table presents the detail of our Accrued liabilities in the Statements of Unaudited Condensed Consolidated Financial Position:
Cash Flow Information A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Cash payments (receipts) for income taxes and interest are as follows:
1 Capitalized interest was $23.3 million and $9.9 million for the six months ended June 30, 2020 and 2019, respectively. Non-Cash Investing and Financing Activities
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ACQUISITION OF AK STEEL (Notes) |
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Business Combination Disclosure [Text Block] | Transaction Overview On March 13, 2020, pursuant to the Merger Agreement, we completed the acquisition of AK Steel, in which we were the acquirer. As a result of the Merger, each share of AK Steel common stock issued and outstanding immediately prior to the effective time of the Merger (other than excluded shares) was converted into the right to receive 0.400 Cliffs common shares and, if applicable, cash in lieu of any fractional Cliffs common shares. The acquisition combined Cliffs, North America’s largest producer of iron ore pellets, with AK Steel, a leading producer of innovative flat-rolled carbon, stainless and electrical steel products, to create a vertically integrated producer of value-added iron ore and steel products. The combination is expected to create significant opportunities to generate additional value from market trends across the entire steel value chain and enable more consistent, predictable performance through normal market cycles. Together, Cliffs and AK Steel have a presence across the entire manufacturing process, from mining to pelletizing to the development and production of finished high value steel products, including Next Generation Advanced High Strength Steels for automotive and other markets. We expect the combination will generate additional cost synergies, which we have identified and already set into motion savings of approximately $150 million, primarily from consolidating corporate functions, reducing duplicative overhead costs, and procurement and energy cost savings, as well as operational and supply chain efficiencies. The combined company is well positioned to provide high-value iron ore and steel solutions to customers primarily across North America. Total net revenues for AK Steel for the most recent pre-acquisition year ended December 31, 2019 were $6,359.4 million. Following the acquisition, the operating results of AK Steel are included in our unaudited condensed consolidated financial statements and are reported as part of our Steel and Manufacturing segment. For the three months ended June 30, 2020, AK Steel generated Revenues of $715.1 million and a loss of $206.5 million included within Net income (loss) attributable to Cliffs shareholders, which included $36.2 million and $15.1 million related to amortization of the fair value inventory step-up and severance costs, respectively. For the period subsequent to the acquisition (March 13, 2020 through June 30, 2020), AK Steel generated Revenues of $932.6 million and a loss of $261.6 million included within Net income (loss) attributable to Cliffs shareholders, which included $59.4 million and $32.7 million related to amortization of the fair value inventory step-up and severance costs, respectively. Additionally, we incurred acquisition-related costs excluding severance costs of $1.8 million and $25.0 million for the three and six months ended June 30, 2020, respectively, which were recorded in Acquisition-related costs on the Statements of Unaudited Condensed Consolidated Operations. Refer to NOTE 7 - DEBT AND CREDIT FACILITIES for information regarding debt transactions executed in connection with the Merger. The Merger was accounted for under the acquisition method of accounting for business combinations. The acquisition date fair value of the consideration transferred totaled $1.5 billion. The following tables summarize the consideration paid for AK Steel and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The fair value of the total purchase consideration was determined as follows:
The fair value of Cliffs common shares issued for outstanding shares of AK Steel common stock and with respect to Cliffs common shares underlying converted AK Steel equity awards that vested upon completion of the Merger is calculated as follows:
The fair value of AK Steel's debt included in the consideration is calculated as follows:
Valuation Assumption and Preliminary Purchase Price Allocation We estimated fair values at March 13, 2020 for the preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed. During the measurement period, we will continue to obtain information to assist in finalizing the fair value of assets acquired and liabilities assumed, which may differ materially from these preliminary estimates. If we determine any measurement period adjustments are material, we will apply those adjustments, including any related impacts to net income, in the reporting period in which the adjustments are determined. We are in the process of conducting a valuation of the assets acquired and liabilities assumed related to the acquisition, most notably, inventories, including manufacturing supplies and critical spares, personal and real property, leases, investments, deferred taxes, asset retirement obligations, pension and OPEB liabilities and intangible assets and liabilities, and the final allocation will be made when completed, including the result of any identified goodwill. Accordingly, the provisional measurements noted below are preliminary and subject to modification in the future. The preliminary purchase price allocation to assets acquired and liabilities assumed in the Merger was:
During the second quarter of 2020, we made certain measurement period adjustments to the acquired assets and liabilities assumed due to clarification of information utilized to determine fair value during the measurement period. The Inventories measurement period adjustments of $37.8 million, resulted in a favorable impact of $7.8 million to Cost of goods sold for the three months ended June 30, 2020. The goodwill resulting from the acquisition of AK Steel was assigned to Precision Partners, our downstream tooling and stamping operations, and AK Tube, our tubing operations, that are reporting units included in the Steel and Manufacturing segment. Goodwill is calculated as the excess of the purchase price over the net identifiable assets recognized and primarily represents the growth opportunities in lightweighting solutions to automotive customers, as well as any synergistic benefits to be realized from the acquisition of AK Steel. None of the goodwill is expected be deductible for income tax purposes. The preliminary purchase price allocated to identifiable intangible assets and liabilities acquired was:
The above-market supply contracts relate to the long-term coke and energy supply agreements with SunCoke Energy, which includes SunCoke Middletown, a consolidated VIE. Refer to NOTE 16 - VARIABLE INTEREST ENTITIES for further information. Pro Forma Results The following table provides unaudited pro forma financial information, prepared in accordance with Topic 805, for the three and six months ended June 30, 2020 and 2019, as if AK Steel had been acquired as of January 1, 2019:
The unaudited pro forma financial information has been calculated after applying our accounting policies and adjusting the historical results with pro forma adjustments, net of tax, that assume the acquisition occurred on January 1, 2019. Significant pro forma adjustments include the following:
The unaudited pro forma financial information does not reflect the potential realization of synergies or cost savings, nor does it reflect other costs relating to the integration of the two companies. This unaudited pro forma financial information should not be considered indicative of the results that would have actually occurred if the acquisition had been consummated on January 1, 2019, nor are they indicative of future results.
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SEGMENT REPORTING (Notes) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure | Our Company is a vertically integrated producer of value-added iron ore and steel products. Our operations are organized and managed in two operating segments according to our upstream and downstream operations. Our Steel and Manufacturing segment is a leading producer of flat-rolled carbon, stainless and electrical steel products, primarily for the automotive, infrastructure and manufacturing, and distributors and converters markets. Our Steel and Manufacturing segment includes subsidiaries that provide customer solutions with carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components, and complex assemblies. Construction of our HBI production plant in Toledo, Ohio, now included as part of our Steel and Manufacturing segment, is expected to be completed in the fourth quarter of 2020. Our Mining and Pelletizing segment is a major supplier of iron ore pellets to the North American steel industry from our mines and pellet plants located in Michigan and Minnesota. All intersegment transactions were eliminated in consolidation. We evaluate performance on a segment basis, as well as a consolidated basis, based on Adjusted EBITDA, which is a non-GAAP measure. This measure is used by management, investors, lenders and other external users of our financial statements to assess our operating performance and to compare operating performance to other companies in the steel and iron ore industries. In addition, management believes Adjusted EBITDA is a useful measure to assess the earnings power of the business without the impact of capital structure and can be used to assess our ability to service debt and fund future capital expenditures in the business. Our results by segment are as follows:
1 Includes Realization of deferred revenue of $34.6 million for the six months ended June 30, 2020. The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
1 EBITDA of noncontrolling interests includes $15.8 million and $19.3 million for income and $4.7 million and $5.8 million of depreciation, depletion and amortization for the three and six months ended June 30, 2020, respectively. The following summarizes our assets by segment:
The following table summarizes our capital additions by segment:
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
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PROPERTY, PLANT AND EQUIPMENT (Notes) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | The following table indicates the carrying value of each of the major classes of our depreciable assets:
1 Includes right-of-use assets related to finance leases of $93.7 million and $49.0 million as of June 30, 2020 and December 31, 2019, respectively. We recorded capitalized interest into property, plant and equipment of $13.6 million and $23.3 million during the three and six months ended June 30, 2020, respectively, and $5.9 million and $9.9 million for the three and six months ended June 30, 2019, respectively. We recorded depreciation and depletion expense of $75.3 million and $110.7 million for the three and six months ended June 30, 2020, respectively, and $20.9 million and $40.5 million for the three and six months ended June 30, 2019, respectively.
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GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES (Notes) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill The increase in the balance of Goodwill as of June 30, 2020, compared to December 31, 2019, is due to the preliminary assignment of $137.2 million to Goodwill in 2020 based on the preliminary purchase price allocation for the acquisition of AK Steel. The carrying amount of goodwill related to our Mining and Pelletizing segment was $2.1 million as of both June 30, 2020 and December 31, 2019. Intangible Assets and Liabilities The following is a summary of our intangible assets and liabilities:
1 Amortization of intangible liabilities related to above-market supply contracts and intangible assets related to mining permits is recognized in Cost of goods sold. Amortization of all other intangible assets is recognized in Selling, general and administrative expenses. Amortization expense related to intangible assets was $2.4 million and $3.5 million for the three and six months ended June 30, 2020, respectively, and $0.2 million and $0.4 million for the three and six months ended June 30, 2019, respectively. Estimated future amortization expense related to intangible assets at June 30, 2020 is as follows:
Income from amortization related to the intangible liabilities was $0.6 million and $2.7 million for the three and six months ended June 30, 2020, respectively. Estimated future amortization income related to the intangible liabilities at June 30, 2020 is as follows:
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DEBT AND CREDIT FACILITIES (Notes) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT AND CREDIT FACILITIES | The following represents a summary of our long-term debt:
1 Unless otherwise noted, references in this column to "Cliffs" are to Cleveland-Cliffs Inc., and references to "AK Steel" are to AK Steel Corporation. 2 Refers to Cleveland-Cliffs Inc. as borrower under our ABL Facility.
1 Unless otherwise noted, references in this column to "Cliffs" are to Cleveland-Cliffs Inc. 2 Refers to Cleveland-Cliffs Inc. and certain of its subsidiaries as borrowers under our Former ABL Facility. 9.875% 2025 Senior Secured Notes Offerings On April 17, 2020, we entered into an indenture among Cliffs, the guarantors party thereto and U.S. Bank National Association, as trustee and notes collateral agent, relating to the issuance by Cliffs of $400.0 million aggregate principal amount of 9.875% 2025 Senior Secured Notes issued at 94.5% of face value. On April 24, 2020, we issued an additional $555.2 million aggregate principal amount of 9.875% 2025 Senior Secured Notes issued at 99.0% of face value. These additional notes are of the same class and series as, and otherwise identical to, the 9.875% 2025 Senior Secured Notes issued on April 17, 2020, other than with respect to the date of issuance and issue price. The 9.875% 2025 Senior Secured Notes were issued in private placement transactions exempt from the registration requirements of the Securities Act. The 9.875% 2025 Senior Secured Notes bear interest at a rate of 9.875% per annum, payable semi-annually in arrears on April 17 and October 17 of each year, commencing on October 17, 2020. The 9.875% 2025 Senior Secured Notes will mature on October 17, 2025. The 9.875% 2025 Senior Secured Notes are jointly and severally and fully and unconditionally guaranteed on a senior secured basis by substantially all of our material domestic subsidiaries and are secured (subject in each case to certain exceptions and permitted liens) by (i) a first-priority lien, on a pari passu basis with the 6.75% 2026 Senior Secured Notes and 4.875% 2024 Senior Secured Notes, on substantially all of our assets and the assets of the guarantors, other than the ABL Collateral (as defined below), and (ii) a second-priority lien on the ABL Collateral, which is junior to a first-priority lien for the benefit of the lenders under our ABL Facility. The 9.875% 2025 Senior Secured Notes may be redeemed, in whole or in part, at any time at our option upon not less than 30, and not more than 60, days' prior notice sent to the holders of the 9.875% 2025 Senior Secured Notes. The following is a summary of redemption prices for our 9.875% 2025 Senior Secured Notes:
In addition, if a change in control triggering event, as defined in the indenture, occurs with respect to the 9.875% 2025 Senior Secured Notes, we will be required to offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to, but not including, the date of purchase. The terms of the 9.875% 2025 Senior Secured Notes contain certain customary covenants; however, there are no financial covenants. Debt issuance costs of $9.1 million were incurred related to the offerings of the 9.875% 2025 Senior Secured Notes and are included in Long-term debt in the Statements of Unaudited Condensed Consolidated Financial Position. 6.75% 2026 Senior Secured Notes Offerings On March 13, 2020, we entered into an indenture among Cliffs, the guarantors party thereto and U.S. Bank National Association, as trustee and notes collateral agent, relating to the issuance of $725.0 million aggregate principal amount of 6.75% 2026 Senior Secured Notes issued at 98.783% of face value. On June 19, 2020, we issued an additional $120.0 million aggregate principal amount of 6.75% 2026 Senior Secured Notes issued at 99.25% of face value. These additional notes are of the same class and series as, and otherwise identical to, the 6.75% 2026 Senior Secured Notes issued on March 13, 2020, other than with respect to the date of issuance and issue price. The 6.75% 2026 Senior Secured Notes were issued in private placement transactions exempt from the registration requirements of the Securities Act. The 6.75% 2026 Senior Secured Notes bear interest at a rate of 6.75% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September 15, 2020. The 6.75% 2026 Senior Secured Notes mature on March 15, 2026. The 6.75% 2026 Senior Secured Notes are jointly and severally and fully and unconditionally guaranteed on a senior secured basis by substantially all of our material domestic subsidiaries and are secured (subject in each case to certain exceptions and permitted liens) by (i) a first-priority lien, on a pari passu basis with the 4.875% 2024 Senior Secured Notes and 9.875% 2025 Senior Secured Notes, on substantially all of our assets and the assets of the guarantors, other than the ABL Collateral, and (ii) a second-priority lien on the ABL Collateral, which is junior to a first-priority lien for the benefit of the lenders under our ABL Facility. The 6.75% 2026 Senior Secured Notes may be redeemed, in whole or in part, at any time at our option upon not less than 30, and not more than 60, days' prior notice sent to the holders of the 6.75% 2026 Senior Secured Notes. The following is a summary of redemption prices for our 6.75% 2026 Senior Secured Notes:
In addition, if a change in control triggering event, as defined in the indenture, occurs with respect to the 6.75% 2026 Senior Secured Notes, we will be required to offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to, but not including, the date of purchase. The terms of the 6.75% 2026 Senior Secured Notes contain certain customary covenants; however, there are no financial covenants. Debt issuance costs of $23.7 million were incurred related to the offerings of the 6.75% 2026 Senior Secured Notes and are included in Long-term debt in the Statements of Unaudited Condensed Consolidated Financial Position. Cliffs Senior Notes exchanged for AK Steel Corporation Senior Notes On March 16, 2020, we entered into indentures, in each case among Cliffs, the guarantors party thereto and U.S. Bank National Association, as trustee, relating to the issuance by Cliffs of $231.8 million aggregate principal amount of 6.375% 2025 Senior Notes and $335.4 million aggregate principal amount of 7.00% 2027 Senior Notes. The new notes were issued in exchange for equal aggregate principal amounts of 6.375% 2025 AK Senior Notes and 7.00% 2027 AK Senior Notes, respectively. The 6.375% 2025 Senior Notes and 7.00% 2027 Senior Notes were issued pursuant to exchange offers made by Cliffs in private placement transactions exempt from the registration requirements of the Securities Act. Pursuant to the registration rights agreements executed in connection with the issuance of the new notes, we agreed to file registration statements with the SEC with respect to registered offers to exchange the 6.375% 2025 Senior Notes and 7.00% 2027 Senior Notes for publicly registered notes within 365 days of the closing date, with all significant terms and conditions remaining the same. The 6.375% 2025 Senior Notes and 7.00% 2027 Senior Notes are unsecured obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. The notes are guaranteed on a senior unsecured basis by our material direct and indirect wholly owned domestic subsidiaries and, therefore, are structurally senior to any of our existing and future indebtedness that is not guaranteed by such guarantors and are structurally subordinated to all existing and future indebtedness and other liabilities of our subsidiaries that do not guarantee the notes. In addition, if a change in control triggering event, as defined in the indentures, occurs with respect to the 6.375% 2025 Senior Notes or 7.00% 2027 Senior Notes, we will be required to offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to, but not including, the date of purchase. The terms of the 6.375% 2025 Senior Notes and 7.00% 2027 Senior Notes contain certain customary covenants; however, there are no financial covenants. 6.375% 2025 Senior Notes The 6.375% 2025 Senior Notes bear interest at a rate of 6.375% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2020. The 6.375% 2025 Senior Notes mature on October 15, 2025. The 6.375% 2025 Senior Notes may be redeemed, in whole or in part, at any time at our option upon not less than 30, and not more than 60, days' prior notice sent to the holders of the 6.375% 2025 Senior Notes. The following is a summary of redemption prices for our 6.375% 2025 Senior Notes:
Debt issuance costs of $0.9 million were incurred in connection with the issuance of the 6.375% 2025 Senior Notes and are included in Long-term debt in the Statements of Unaudited Condensed Consolidated Financial Position. 7.00% 2027 Senior Notes The 7.00% 2027 Senior Notes bear interest at a rate of 7.00% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September 15, 2020. The 7.00% 2027 Senior Notes mature on March 15, 2027. The 7.00% 2027 Senior Notes may be redeemed, in whole or in part, at any time at our option upon not less than 30, and not more than 60, days' prior notice sent to the holders of the 7.00% 2027 Senior Notes. The following is a summary of redemption prices for our 7.00% 2027 Senior Notes:
Debt issuance costs of $1.3 million were incurred in connection with the issuance of the 7.00% 2027 Senior Notes and are included in Long-term debt in the Statements of Unaudited Condensed Consolidated Financial Position. AK Steel Corporation Senior Unsecured Notes As of June 30, 2020, AK Steel Corporation had outstanding a total of $141.0 million aggregate principal amount of 7.625% 2021 AK Senior Notes, 7.50% 2023 AK Senior Notes, 6.375% 2025 AK Senior Notes and 7.00% 2027 AK Senior Notes. These senior notes are unsecured obligations and rank equally in right of payment with AK Steel Corporation's guarantees of Cliffs' unsecured and unsubordinated indebtedness. These notes contain certain customary covenants; however, there are no financial covenants. We may redeem the 7.625% 2021 AK Senior Notes at 100.000% of their principal amount, together with all accrued and unpaid interest to the date of redemption. The following is a summary of redemption prices for the 7.50% 2023 AK Senior Notes:
The following is a summary of redemption prices for the 6.375% 2025 AK Senior Notes:
The following is a summary of redemption prices for the 7.00% 2027 AK Senior Notes:
Industrial Revenue Bonds AK Steel Corporation had outstanding $66.0 million aggregate principal amount of fixed-rate, tax-exempt IRBs as of June 30, 2020. The weighted-average fixed rate of the unsecured IRBs is 6.86%. The IRBs are unsecured senior debt obligations that are equal in ranking with AK Steel Corporation's senior unsecured notes and AK Steel Corporation's guarantees of Cliffs' unsecured and unsubordinated indebtedness. In addition, AK Steel Corporation had outstanding $26.0 million aggregate principal amount of variable-rate IRBs as of June 30, 2020 that are backed by a letter of credit. These IRBs contain certain customary covenants; however, there are no financial covenants. Debt Extinguishments - 2020 On April 24, 2020, we used the net proceeds from the offering of the additional 9.875% 2025 Senior Secured Notes to repurchase $736.4 million aggregate principal amount of our outstanding senior notes of various series, which resulted in debt reduction of $181.2 million. During the second quarter of 2020, we also repurchased an additional $11.2 million aggregate principal amount of our outstanding senior notes of various series with cash on hand. On June 1, 2020, we redeemed $7.3 million aggregate principal amount of our outstanding 2020 IRBs. On March 13, 2020, in connection with the Merger, we purchased $364.2 million aggregate principal amount of 7.625% 2021 AK Senior Notes and $310.7 million aggregate principal amount of 7.50% 2023 AK Senior Notes upon early settlement of tender offers made by Cliffs. The net proceeds from the offering of 6.75% 2026 Senior Secured Notes, along with a portion of the ABL Facility borrowings, were used to fund such purchases. As the 7.625% 2021 AK Senior Notes and 7.50% 2023 AK Senior Notes were recorded at fair value just prior to being purchased, there was no gain or loss on extinguishment. Additionally, in connection with the final settlement of the tender offers, on March 27, 2020, we purchased $8.5 million aggregate principal amount of the 7.625% 2021 AK Senior Notes and $56.5 million aggregate principal amount of the 7.50% 2023 AK Senior Notes with cash on hand. The following is a summary of the debt extinguished and the respective gain on extinguishment:
Debt Extinguishments - 2019 The following is a summary of the debt extinguished with cash and the respective loss on extinguishment:
ABL Facility On March 13, 2020, in connection with the Merger, we entered into a new ABL Facility with various financial institutions to replace and refinance Cliffs’ Former ABL Facility and AK Steel Corporation’s former revolving credit facility. The ABL Facility will mature upon the earlier of March 13, 2025 or 91 days prior to the maturity of certain other material debt and provides for up to $2.0 billion in borrowings, including a $555.0 million sublimit for the issuance of letters of credit and a $125.0 million sublimit for swingline loans. Availability under the ABL Facility is limited to an eligible borrowing base, as applicable, determined by applying customary advance rates to eligible accounts receivable, inventory and certain mobile equipment. The ABL Facility and certain bank products and hedge obligations are guaranteed by us and certain of our existing wholly owned U.S. subsidiaries and are required to be guaranteed by certain of our future U.S. subsidiaries. Amounts outstanding under the ABL Facility are secured by (i) a first-priority security interest in the accounts receivable and other rights to payment, inventory, as-extracted collateral, certain investment property, deposit accounts, securities accounts, certain general intangibles and commercial tort claims, certain mobile equipment, commodities accounts and other related assets of ours, the other borrowers and the guarantors, and proceeds and products of each of the foregoing (collectively, the “ABL Collateral”) and (ii) a second-priority security interest in substantially all of our assets and the assets of the other borrowers and the guarantors other than the ABL Collateral. Borrowings under the ABL Facility bear interest, at our option, at a base rate or, if certain conditions are met, a LIBOR rate, in each case plus an applicable margin. We may amend this agreement to replace the LIBOR rate with one or more secured overnight financing based rates or an alternative benchmark rate, giving consideration to any evolving or then existing convention for similar dollar denominated syndicated credit facilities for such alternative benchmarks. The ABL Facility contains customary representations and warranties and affirmative and negative covenants including, among others, covenants regarding the maintenance of certain financial ratios if certain conditions are triggered, covenants relating to financial reporting, covenants relating to the payment of dividends on, or purchase or redemption of, our capital stock, covenants relating to the incurrence or prepayment of certain debt, covenants relating to the incurrence of liens or encumbrances, covenants relating to compliance with laws, covenants relating to transactions with affiliates, covenants relating to mergers and sales of all or substantially all of our assets and limitations on changes in the nature of our business. The ABL Facility provides for customary events of default, including, among other things, the event of nonpayment of principal, interest, fees or other amounts, a representation or warranty proving to have been materially incorrect when made, failure to perform or observe certain covenants within a specified period of time, a cross-default to certain material indebtedness, the bankruptcy or insolvency of the Company and certain of its subsidiaries, monetary judgment defaults of a specified amount, invalidity of any loan documentation, a change of control of the Company, and ERISA defaults resulting in liability of a specified amount. If an event of default exists (beyond any applicable grace or cure period), the administrative agent may, and at the direction of the requisite number of lenders shall, declare all amounts owing under the ABL Facility immediately due and payable, terminate such lenders’ commitments to make loans under the ABL Facility and/or exercise any and all remedies and other rights under the ABL Facility. For certain events of default related to insolvency and receivership, the commitments of the lenders will be automatically terminated and all outstanding loans and other amounts will become immediately due and payable. On March 27, 2020, the ABL Facility was amended, by and among Cliffs, the lenders and the administrative agent. The amendment modified the ABL Facility to, among other things, provide for a new FILO tranche of commitments in the aggregate amount of $150.0 million by exchanging existing commitments under the ABL Facility. The total commitments under the ABL Facility after giving effect to the amendment remain at $2.0 billion. The terms and conditions (other than the pricing) that apply to the FILO tranche are substantially the same as the terms and conditions that apply to the tranche A facility of the ABL Facility immediately prior to the amendment. As of June 30, 2020, we were in compliance with the ABL Facility liquidity requirements and, therefore, the springing financial covenant requiring a minimum fixed charge coverage ratio of 1.0 to 1.0 was not applicable. The following represents a summary of our borrowing capacity under the ABL Facility:
1 As of June 30, 2020, the ABL Facility has a maximum borrowing base of $2.0 billion. The available borrowing base is determined by applying customary advance rates to eligible accounts receivable, inventory and certain mobile equipment. 2 We issued standby letters of credit with certain financial institutions in order to support business obligations including, but not limited to, workers' compensation, employee severance, IRBs and environmental obligations. Debt Maturities The following represents a summary of our maturities of debt instruments based on the principal amounts outstanding at June 30, 2020:
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FAIR VALUE MEASUREMENTS (Notes) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | The following represents the assets and liabilities measured at fair value:
Financial assets classified in Level 1 include money market funds. The valuation of these instruments is based upon unadjusted quoted prices for identical assets in active markets. The valuation of financial assets and liabilities classified in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable. Our foreign exchange contracts include Canadian dollars, and our commodity hedge contracts primarily include those related to natural gas, electricity and zinc. The Level 3 assets consist of a freestanding derivative instrument related to a certain supply agreement and derivative assets related to certain provisional pricing arrangements with our customers. The Level 3 liabilities consist of derivative liabilities related to certain provisional pricing arrangements with our customers. The supply agreement included in our Level 3 assets contains provisions for supplemental revenue or refunds based on the hot-rolled coil steel price in the year the iron ore product is consumed in the customer’s blast furnaces. We account for these provisions as a derivative instrument at the time of sale and adjust the derivative instrument to fair value through Revenues each reporting period until the product is consumed and the amounts are settled. The provisional pricing arrangements included in our Level 3 assets/liabilities specify provisional price calculations, where the pricing mechanisms generally are based on market pricing, with the final revenue rate to be based on market inputs at a specified point in time in the future, per the terms of the supply agreements. The difference between the estimated final revenue rate at the date of sale and the estimated final revenue rate at the measurement date is characterized as a derivative and is required to be accounted for separately once the revenue has been recognized. The derivative instruments are adjusted to fair value through Revenues each reporting period based upon current market data and forward-looking estimates provided by management until the final revenue rates are determined. The following table illustrates information about quantitative inputs and assumptions for the derivative assets and derivative liabilities categorized in Level 3 of the fair value hierarchy:
The significant unobservable input used in the fair value measurement of our customer supply agreement was a forward-looking estimate of the hot-rolled coil steel price determined by management. The significant unobservable inputs used in the fair value measurement of our provisional pricing arrangements at June 30, 2020 were the forward-looking estimate of Platts 62% price and the Atlantic Basin Pellet Premium based upon current market data determined by management. The following tables represent a reconciliation of the changes in fair value of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
The carrying values of certain financial instruments (e.g., Accounts receivable, net, Accounts payable and Other current liabilities) approximate fair value and, therefore, have been excluded from the table below. A summary of the carrying value and fair value of other financial instruments were as follows:
The fair value of long-term debt was determined using quoted market prices.
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PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Notes) |
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Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PENSIONS AND OTHER POSTRETIREMENT BENEFITS | We offer defined benefit pension plans, defined contribution pension plans and OPEB plans, primarily consisting of retiree healthcare benefits, to most employees as part of a total compensation and benefits program. The defined benefit pension plans are noncontributory and benefits generally are based on a minimum formula or employees’ years of service and average earnings for a defined period prior to retirement. As a result of the acquisition of AK Steel, we assumed the obligations under AK Steel's defined benefit pension plans and OPEB plans. Noncontributory pension and various healthcare and life insurance benefits are provided to a significant portion of our employees and retirees. AK Steel also contributes to multiemployer pension plans according to collective bargaining agreements that cover certain union-represented employees and defined contribution pension plans. The AK Steel pension and OPEB plans were remeasured as of March 13, 2020. The following are the components of defined benefit pension and OPEB costs (credits): Defined Benefit Pension Costs (Credits)
OPEB Costs (Credits)
As a result of the CARES Act enacted on March 27, 2020, we have deferred pension contributions starting in the second quarter of 2020. Based on prior funding requirements, we made defined benefit pension contributions of $0.2 million and $4.0 million for the three and six months ended June 30, 2020, respectively, compared to defined benefit pension contributions of $3.5 million and $6.7 million for the three and six months ended June 30, 2019, respectively. OPEB contributions for our voluntary employee benefit association trust plans are typically made on an annual basis in the first quarter of each year, but due to plan funding requirements being met, no OPEB contributions for our voluntary employee benefit association trust plans were required or made for the three and six months ended June 30, 2020 and 2019.
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INCOME TAXES (Notes) |
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Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Our 2020 estimated annual effective tax rate before discrete items as of June 30, 2020 is 31.1%. The estimated annual effective tax rate differs from the U.S. statutory rate of 21.0% primarily due to the deduction for percentage depletion in excess of cost depletion related to our Mining and Pelletizing segment operations, as well as non-deductible transaction costs, executive officers' compensation, global intangible low-taxed income and income of noncontrolling interests for which no tax is recognized. The 2019 estimated annual effective tax rate before discrete items as of June 30, 2019 was 12.1%. The increase in the estimated annual effective tax rate before discrete items is driven by the change in the mix of income, as well as transaction costs and other acquisition-related charges that were incurred only in 2020. For the three and six months ended June 30, 2020, we recorded discrete items that resulted in an income tax expense of $0.3 million and benefit of $3.7 million, respectively. The discrete adjustments are primarily related to interest on uncertain tax positions in the quarter and the refund of amounts sequestered by the Internal Revenue Service on previously filed AMT credit refunds. For the three and six months ended June 30, 2019, we recorded discrete items that resulted in an income tax benefit of $0.4 million and $0.8 million, respectively.
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ASSET RETIREMENT OBLIGATIONS (Notes) |
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Asset Retirement Obligation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSET RETIREMENT OBLIGATIONS | The following is a summary of our asset retirement obligations:
1 Includes $33.0 million and $22.0 million related to our active operations as of June 30, 2020 and December 31, 2019, respectively. The accrued closure obligation is predominantly related to our indefinitely idled and closed iron ore mining operations and provides for contractual and legal obligations associated with the eventual closure of those operations. Additionally, we have included in our asset retirement obligation $13.9 million for our integrated steel facilities acquired in the Merger. The closure date for each of our active mine sites was determined based on the exhaustion date of the remaining iron ore reserves and the amortization of the related asset and accretion of the liability is recognized over the estimated mine lives. The closure date and expected timing of the capital requirements to meet our obligations for our indefinitely idled or closed mines is determined based on the unique circumstances of each property. For indefinitely idled or closed mines, the accretion of the liability is recognized over the anticipated timing of remediation. As the majority of our asset retirement obligations at our steelmaking operations have indeterminate settlement dates, asset retirement obligations have been recorded at present values using estimated ranges of the economic lives of the underlying assets. The following is a roll forward of our asset retirement obligation liability:
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DERIVATIVE INSTRUMENTS (Notes) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS | The following table presents the fair value of our derivative instruments and the classification of each in the Statements of Unaudited Condensed Consolidated Financial Position:
Derivatives Designated as Hedging Instruments - Cash Flow Hedges Exchange rate fluctuations affect a portion of revenues and operating costs that are denominated in foreign currencies, and we use forward currency and currency option contracts to reduce our exposure to certain of these currency price fluctuations. Contracts to purchase Canadian dollars are designated as cash flow hedges for accounting purposes, and we record the gains and losses for the derivatives and premiums paid for option contracts in Accumulated other comprehensive loss until we reclassify them into Cost of goods sold when we recognize the associated underlying operating costs. We are exposed to fluctuations in market prices of raw materials and energy sources. We may use cash-settled commodity swaps and options to hedge the market risk associated with the purchase of certain of our raw materials and energy requirements. Our hedging strategy is to reduce the effect on earnings from the price volatility of these various commodity exposures, including timing differences between when we incur raw material commodity costs and when we receive sales surcharges from our customers based on those raw materials. Independent of any hedging activities, price changes in any of these commodity markets could negatively affect operating costs. The following table presents our outstanding hedge contracts:
Estimated gains (losses) before tax expected to be reclassified into Cost of goods sold within the next 12 months for our existing derivatives that qualify as cash flow hedges are presented below:
Derivatives Not Designated as Hedging Instruments Customer Supply Agreement A supply agreement with one customer provides for supplemental revenue or refunds to the customer based on the hot-rolled coil steel price at the time the iron ore product is consumed in the customer’s blast furnaces. The supplemental pricing is characterized as a freestanding derivative instrument and is required to be accounted for separately once control transfers to the customer. The derivative instrument, which is finalized based on a future price, is adjusted to fair value through Revenues each reporting period based upon current market data and forward-looking estimates provided by management until the pellets are consumed and the amounts are settled. Provisional Pricing Arrangements Certain of our supply agreements specify provisional price calculations, where the pricing mechanisms generally are based on market pricing, with the final revenue rate based on certain market inputs at a specified period in time in the future, per the terms of the supply agreements. Market inputs are tied to indexed price adjustment factors that are integral to the iron ore supply contracts and vary based on the agreement. The pricing mechanisms typically include adjustments based upon changes in the Platts 62% Price, Atlantic Basin pellet premiums and Platts international indexed freight rates. The pricing adjustments generally operate in the same manner, with each factor typically comprising a portion of the price adjustment, although the weighting of each factor varies based upon the specific terms of each agreement. The price adjustment factors have been evaluated to determine if they qualify as embedded derivatives. The price adjustment factors share the same economic characteristics and risks as the host sales contract and are integral to the host sales contract as inflation adjustments; accordingly, they have not been separately valued as derivative instruments. Revenue is recognized generally upon delivery to our customers. Revenue is measured at the point that control transfers and represents the amount of consideration we expect to receive in exchange for transferring goods. Changes in the expected revenue rate from the date that control transfers through final settlement of contract terms is recorded in accordance with Topic 815 and is characterized as a derivative instrument and accounted for separately. Subsequently, the derivative instruments are adjusted to fair value through Revenues each reporting period based upon current market data and forward-looking estimates provided by management until the final revenue rate is determined. The following summarizes the effect of our derivatives that are not designated as hedging instruments in the Statements of Unaudited Condensed Consolidated Operations:
Refer to NOTE 8 - FAIR VALUE MEASUREMENTS for additional information.
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SHAREHOLDERS' EQUITY (Notes) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | Acquisition of AK Steel As more fully described in NOTE 3 - ACQUISITION OF AK STEEL, we acquired AK Steel on March 13, 2020. At the effective time of the Merger, each share of AK Steel common stock issued and outstanding prior to the effective time of the Merger was converted into, and became exchangeable for, 0.400 Cliffs common shares, par value $0.125 per share. We issued a total of 126.8 million Cliffs common shares in connection with the Merger at a fair value of $617.6 million. Following the closing of the Merger, AK Steel's common stock was de-listed from the New York Stock Exchange. Dividends The below table summarizes our recent dividend activity:
1 The dividend declared on September 3, 2019 included a special cash dividend of $0.04 per common share. Subsequent to the dividend paid on April 15, 2020, our Board temporarily suspended future dividends as a result of the COVID-19 pandemic in order to preserve cash during this time of economic uncertainty. Preferred Stock We have 3,000,000 Class A preferred shares authorized and 4,000,000 Class B preferred shares authorized; no preferred shares are issued or outstanding. Share Repurchase Program In November 2018, our Board authorized a program to repurchase outstanding common shares in the open market or in privately negotiated transactions, up to a maximum of $200 million, excluding commissions and fees. In April 2019, our Board increased the common share repurchase authorization by an additional $100 million, excluding commissions and fees. During the six months ended June 30, 2019 we repurchased 24.4 million common shares at a cost of $252.9 million in the aggregate, including commissions and fees. The share repurchase program was effective until December 31, 2019.
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Notes) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | The following tables reflect the changes in Accumulated other comprehensive loss related to shareholders’ equity:
The following table reflects the details about Accumulated other comprehensive loss components related to shareholders’ equity:
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RELATED PARTIES (Notes) |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RELATED PARTIES | We have certain co-owned joint ventures with companies from the steel and mining industries, including integrated steel companies, their subsidiaries and other downstream users of steel and iron ore products. In addition, we have certain long-term contracts, and from time to time, enter into other sales agreements with these parties, and as a result, generate Revenues from related parties. Hibbing is a co-owned joint venture with companies that are integrated steel producers or their subsidiaries. The following is a summary of the mine ownership of the co-owned iron ore mine at June 30, 2020:
The tables below summarize our material related party transactions: Revenues from related parties were as follows:
1 Includes Realization of deferred revenue of $34.6 million for the six months ended June 30, 2020. The following table presents the classification of related party assets and liabilities in the Statements of Unaudited Condensed Consolidated Financial Position:
Other current assets A supply agreement with one customer provides for supplemental revenue or refunds to the customer based on the hot-rolled coil steel price at the time the product is consumed in the customer’s blast furnaces. The supplemental pricing is characterized as a freestanding derivative. Refer to NOTE 12 - DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES for further information.
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VARIABLE INTEREST ENTITIES (Notes) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity Disclosure [Text Block] | SunCoke Middletown We purchase all the coke and electrical power generated from SunCoke Middletown’s plant under long-term supply agreements. SunCoke Middletown is a VIE because we have committed to purchase all the expected production from the facility through 2032 and we are the primary beneficiary. Therefore, we consolidate SunCoke Middletown’s financial results with our financial results, even though we have no ownership interest in SunCoke Middletown. SunCoke Middletown had income before income taxes of $16.0 million and $19.5 million for the three and six months ended June 30, 2020, respectively, that was included in our consolidated income before income taxes. The assets of the consolidated VIE can only be used to settle the obligations of the consolidated VIE and not obligations of the Company. The creditors of SunCoke Middletown do not have recourse to the assets or general credit of the Company to satisfy liabilities of the VIE. The consolidated balance sheet as of June 30, 2020 includes the following amounts for SunCoke Middletown:
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EARNINGS PER SHARE (Notes) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | The following table summarizes the computation of basic and diluted earnings per share:
The following table summarizes the shares that have been excluded from the diluted earnings per share calculation as they were anti-dilutive:
There was no dilution during the three and six months ended June 30, 2020 related to the common share equivalents for the convertible senior notes as our common shares average price did not rise above the conversion price.
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COMMITMENTS AND CONTINGENCIES (Notes) |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | Purchase Commitments HBI production plant In 2017, we began to incur capital commitments related to the construction of our HBI production plant in Toledo, Ohio; however, due to the COVID-19 pandemic, we temporarily halted construction in March 2020. In June 2020, we resumed construction and expect to complete the project in the fourth quarter of 2020. In total, to complete the project, we expect to spend approximately $1 billion on the HBI production plant, excluding capitalized interest, of which $894.3 million was paid as of June 30, 2020. As of June 30, 2020, we have contracts and purchase orders in place for $92.2 million. Contingencies We are currently the subject of, or party to, various claims and legal proceedings incidental to our operations. These claims and legal proceedings are subject to inherent uncertainties and unfavorable rulings could occur. An unfavorable ruling could include monetary damages, additional funding requirements or an injunction. If an unfavorable ruling were to occur, there exists the possibility of a material effect on the financial position and results of operations for the period in which the ruling occurs or future periods. However, based on currently available information we do not believe that any pending claims or legal proceedings will result in a material effect in relation to our consolidated financial statements. Environmental Contingencies Although we believe our operating practices have been consistent with prevailing industry standards, hazardous materials may have been released at operating sites or third-party sites in the past, including operating sites that we no longer own. If we reasonably can, we estimate potential remediation expenditures for those sites where future remediation efforts are probable based on identified conditions, regulatory requirements or contractual obligations arising from the sale of a business or facility. For sites involving government required investigations, we typically make an estimate of potential remediation expenditures only after the investigation is complete and when we better understand the nature and scope of the remediation. In general, the material factors in these estimates include the costs associated with investigations, delineations, risk assessments, remedial work, governmental response and oversight, site monitoring, and preparation of reports to the appropriate environmental agencies. The following is a summary of our environmental obligations:
We cannot predict the ultimate costs for each site with certainty because of the evolving nature of the investigation and remediation process. Rather, to estimate the probable costs, we must make certain assumptions. The most significant of these assumptions is for the nature and scope of the work that will be necessary to investigate and remediate a particular site and the cost of that work. Other significant assumptions include the cleanup technology that will be used, whether and to what extent any other parties will participate in paying the investigation and remediation costs, reimbursement of past response costs and future oversight costs by governmental agencies, and the reaction of the governing environmental agencies to the proposed work plans. Costs for future investigation and remediation are not discounted to their present value, unless the amount and timing of the cash disbursements are readily known. To the extent that we have been able to reasonably estimate future liabilities, we do not believe that there is a reasonable possibility that we will incur a loss or losses that exceed the amounts we accrued for the environmental matters discussed below that would, either individually or in the aggregate, have a material adverse effect on our consolidated financial condition, results of operations or cash flows. However, since we recognize amounts in the consolidated financial statements in accordance with GAAP that exclude potential losses that are not probable or that may not be currently estimable, the ultimate costs of these environmental matters may be higher than the liabilities we currently have recorded in our consolidated financial statements. Except as we expressly note below, we do not currently anticipate any material effect on our consolidated financial position, results of operations or cash flows as a result of compliance with current environmental regulations. Moreover, because all domestic steel and iron ore producers operate under the same federal environmental regulations, we do not believe that we are more disadvantaged than our domestic competitors by our need to comply with these regulations. Some foreign competitors may benefit from less stringent environmental requirements in the countries where they produce, resulting in lower compliance costs for them and providing those foreign competitors with a cost advantage on their products. According to RCRA, which governs the treatment, handling and disposal of hazardous waste, the EPA and authorized state environmental agencies may conduct inspections of RCRA-regulated facilities to identify areas where there have been releases of hazardous waste or hazardous constituents into the environment and may order the facilities to take corrective action to remediate such releases. Environmental regulators may inspect our major iron ore and steelmaking facilities. While we cannot predict the future actions of these regulators, it is possible that they may identify conditions in future inspections of these facilities which they believe require corrective action. Under authority from CERCLA, the EPA and state environmental authorities have conducted site investigations at certain of our facilities and other third-party facilities, portions of which previously may have been used for disposal of materials that are currently regulated. The results of these investigations are still pending, and we could be directed to spend funds for remedial activities at the former disposal areas. Because of the uncertain status of these investigations, however, we cannot reliably predict whether or when such spending might be required or its magnitude. On April 29, 2002, AK Steel entered a mutually agreed-upon administrative order on consent with the EPA pursuant to Section 122 of CERCLA to perform a Remedial Investigation/Feasibility Study (“RI/FS”) of the Hamilton Plant site located in New Miami, Ohio. The plant ceased operations in 1990 and all of its former structures have been demolished. AK Steel submitted the investigation portion of the RI/FS and completed supplemental studies. We currently have accrued $0.7 million for the remaining cost of the RI/FS. Until the RI/FS is complete, we cannot reliably estimate the additional costs, if any, we may incur for potentially required remediation of the site or when we may incur them. On September 26, 2012, the EPA issued an order under Section 3013 of RCRA requiring a plan to be developed for investigation of four areas at the Ashland Works coke plant. The Ashland Works coke plant ceased operations in 2011 and all of its former structures have been demolished and removed. In 1981, AK Steel acquired the plant from Honeywell International Corporation (as successor to Allied Corporation), who had managed the coking operations there for approximately 60 years. In connection with the sale of the coke plant, Honeywell agreed to indemnify AK Steel against certain claims and obligations that could arise from the investigation, and we intend to pursue such indemnification from Honeywell, if necessary. We cannot reliably estimate how long it will take to complete the site investigation. On March 10, 2016, the EPA invited AK Steel to participate in settlement discussions regarding an enforcement action. Settlement discussions between the parties are ongoing, though whether the parties will reach agreement and any such agreement’s terms are uncertain. We currently have accrued $1.4 million for the projected cost of the investigation and known remediation. Until the site investigation is complete, we cannot reliably estimate the costs, if any, we may incur for potential additional required remediation of the site or when we may incur them. On May 12, 2014, the Michigan Department of Environment, Great Lakes, and Energy (“EGLE”) (previously the Michigan Department of Environmental Quality) issued to Dearborn Works an Air Permit to Install No. 182-05C (the “PTI”) to increase the emission limits for the blast furnace and other emission sources. The PTI was issued as a correction to a prior permit to install that did not include certain information during the prior permitting process. On July 10, 2014, the South Dearborn Environmental Improvement Association (“SDEIA”), Detroiters Working for Environmental Justice, Original United Citizens of Southwest Detroit and the Sierra Club filed a Claim of Appeal of the PTI in the State of Michigan, Wayne County Circuit Court, Case No. 14-008887-AA. The appellants and EGLE required the intervention of Severstal Dearborn, LLC (later merged into AK Steel Corporation) in this action as an additional appellee. The appellants allege multiple deficiencies with the PTI and the permitting process. On July 2, 2019, the Circuit Court dismissed the PTI appeal and ruled that EGLE appropriately issued the permit modification. The appellants have appealed that decision. Until the appeal is resolved, we cannot determine what the ultimate permit limits will be. Until the permit limits are determined and final, we cannot reliably estimate the costs we may incur, if any, or when we may incur them. On August 21, 2014, the SDEIA filed a Complaint under the Michigan Environmental Protection Act (“MEPA”) in the State of Michigan, Wayne County Circuit Court, Case No. 14-010875-CE. The plaintiffs allege that the air emissions from Dearborn Works are impacting the air, water and other natural resources, as well as the public trust in such resources. The plaintiffs are requesting, among other requested relief, that the court assess and determine the sufficiency of the PTI’s limitations. On October 15, 2014, the court ordered a stay of the proceedings until a final order is issued in Wayne County Circuit Court Case No. 14-008887-AA (discussed above). When the proceedings resume, we intend to vigorously contest these claims. Until the claims in this complaint are resolved, we cannot reliably estimate the costs we may incur, if any, or when we may incur them. On November 18, 2019, November 26, 2019, and March 16, 2020, EGLE issued Notices of Violations (“NOVs”) with respect to the basic oxygen furnace electrostatic precipitator at Dearborn Works alleging violations of manganese, lead and opacity limits. We are investigating these claims and will work with EGLE to attempt to resolve them. We intend to vigorously contest any claims which cannot be resolved through a settlement. Until a settlement is reached with EGLE or the claims of the NOVs are otherwise resolved, we cannot reliably estimate the costs, if any, associated with any potentially required work. In addition to the foregoing matters, we are or may be involved in proceedings with various regulatory authorities that may require us to pay fines, comply with more rigorous standards or other requirements or incur capital and operating expenses for environmental compliance. We believe that the ultimate disposition of the proceedings will not have, individually or in the aggregate, a material adverse effect on our consolidated financial condition, results of operations or cash flows. Other Contingencies In addition to the matters discussed above, there are various pending and potential claims against us and our subsidiaries involving product liability, commercial, employee benefits, and other matters arising in the ordinary course of business. Because of the considerable uncertainties which exist for any claim, it is difficult to reliably or accurately estimate what the amount of a loss would be if a claimant prevails. If material assumptions or factual understandings we rely on to evaluate exposure for these contingencies prove to be inaccurate or otherwise change, we may be required to record a liability for an adverse outcome. If, however, we have reasonably evaluated potential future liabilities for all of these contingencies, including those described more specifically above, it is our opinion, unless we otherwise noted, that the ultimate liability from these contingencies, individually and in the aggregate, should not have a material adverse effect on our consolidated financial position, results of operations or cash flows.
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SUBSEQUENT EVENTS (Notes) |
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Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | We have evaluated subsequent events through the date of financial statement issuance.
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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||
Basis of Accounting | Business, Consolidation and Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with SEC rules and regulations and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations, comprehensive income (loss), cash flows and changes in equity for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its estimates on various assumptions and historical experience, which are believed to be reasonable; however, due to the inherent nature of estimates, actual results may differ significantly due to changed conditions or assumptions. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020 or any other future period. Due to the acquisition of AK Steel, certain balances have become material and are no longer being condensed in our Statements of Unaudited Condensed Consolidated Financial Position, such as balances for Right-of-use asset, operating lease and Operating lease liability, non-current. As a result, certain prior period amounts have been reclassified to conform with the current year presentation. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2019 and in our Quarterly Report on Form 10-Q for the three months ended March 31, 2020.
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Nature of Operations | Acquisition of AK Steel On March 13, 2020, we consummated the Merger, pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub was merged with and into AK Steel, with AK Steel surviving the Merger as a wholly owned subsidiary of Cliffs. Refer to NOTE 3 - ACQUISITION OF AK STEEL for further information. AK Steel is a leading North American producer of flat-rolled carbon, stainless and electrical steel products, primarily for the automotive, infrastructure and manufacturing markets. The acquisition of AK Steel has transformed us into a vertically integrated producer of value-added iron ore and steel products. COVID-19 In response to the COVID-19 pandemic, we made various operational changes to adjust to the demand for our products. Although steel and iron ore production have been considered “essential” by the states in which we operate, certain of our facilities and construction activities were temporarily idled during the second quarter of 2020. Nearly all of these temporarily idled facilities were restarted as of June 30, 2020, with the exception of the Dearborn hot-end operations and Mansfield operations, which were restarted in July 2020, and the Northshore mine, which we plan to restart in early August 2020.
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Basis of Consolidation | Basis of Consolidation The unaudited condensed consolidated financial statements consolidate our accounts and the accounts of our wholly owned subsidiaries, all subsidiaries in which we have a controlling interest and two variable interest entities for which we are the primary beneficiary. All intercompany transactions and balances are eliminated upon consolidation. Reportable Segments The acquisition of AK Steel has transformed us into a vertically integrated producer of value-added iron ore and steel products and we are organized according to our differentiated products in two reportable segments - the new Steel and Manufacturing segment and the Mining and Pelletizing segment. Our new Steel and Manufacturing segment includes the assets acquired through the acquisition of AK Steel and our previously reported Metallics segment, and our Mining and Pelletizing segment includes our three active operating mines and our indefinitely idled mine.
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Equity Method Investments | Investments in Affiliates We have investments in several businesses accounted for using the equity method of accounting. We review an investment for impairment when circumstances indicate that a loss in value below its carrying amount is other than temporary. Investees and equity ownership percentages are presented below:
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New Accounting Pronouncements | Recent Accounting Pronouncements Issued and Adopted On March 2, 2020, the SEC issued a final rule that amended the disclosure requirements related to certain registered securities under SEC Regulation S-X, Rule 3-10, which required separate financial statements for subsidiary issuers and guarantors of registered debt securities unless certain exceptions are met. The final rule replaces the previous requirement under Rule 3-10 to provide condensed consolidating financial information in the registrant’s financial statements with a requirement to provide alternative financial disclosures (which include summarized financial information of the parent and any issuers and guarantors, as well as other qualitative disclosures) in either the registrant’s Management's Discussion and Analysis of Financial Condition and Results of Operations or its financial statements, in addition to other simplifications. The final rule is effective for filings on or after January 4, 2021, and early adoption is permitted. We elected to early adopt this disclosure update for the period ended March 31, 2020. As a result, we have excluded the footnote disclosures required under the previous Rule 3-10, and applied the final rule by including the summarized financial information and qualitative disclosures in Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report on Form 10-Q and Exhibit 22.1, filed herewith.
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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | Investees and equity ownership percentages are presented below:
Hibbing is a co-owned joint venture with companies that are integrated steel producers or their subsidiaries. The following is a summary of the mine ownership of the co-owned iron ore mine at June 30, 2020:
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SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION (Tables) |
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Disclosure Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues from Product Sales and Services [Table Text Block] | The following table represents our consolidated Revenues (excluding intercompany revenues) by market:
1 Includes Realization of deferred revenue of $34.6 million for the six months ended June 30, 2020. The following table represents our consolidated Revenues (excluding intercompany revenues) by product line:
1 Includes Realization of deferred revenue of $34.6 million for the six months ended June 30, 2020.
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Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following is a roll forward of our allowance for credit losses associated with Accounts receivable, net:
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Schedule of Inventory, Current [Table Text Block] | The following table presents the detail of our Inventories in the Statements of Unaudited Condensed Consolidated Financial Position:
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Contract with Customer, Asset and Liability [Table Text Block] | The table below summarizes our deferred revenue balances:
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Schedule of Accrued Liabilities [Table Text Block] | The following table presents the detail of our Accrued liabilities in the Statements of Unaudited Condensed Consolidated Financial Position:
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Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | A reconciliation of capital additions to cash paid for capital expenditures is as follows:
Cash payments (receipts) for income taxes and interest are as follows:
1 Capitalized interest was $23.3 million and $9.9 million for the six months ended June 30, 2020 and 2019, respectively. Non-Cash Investing and Financing Activities
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ACQUISITION OF AK STEEL (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions by Acquisition, by Acquisition [Table Text Block] | The fair value of the total purchase consideration was determined as follows:
The fair value of AK Steel's debt included in the consideration is calculated as follows:
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Schedule of Business Acquisitions by Acquisition, Equity Interest Issued or Issuable [Table Text Block] | The fair value of the total purchase consideration was determined as follows:
The fair value of Cliffs common shares issued for outstanding shares of AK Steel common stock and with respect to Cliffs common shares underlying converted AK Steel equity awards that vested upon completion of the Merger is calculated as follows:
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The preliminary purchase price allocation to assets acquired and liabilities assumed in the Merger was:
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Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The preliminary purchase price allocated to identifiable intangible assets and liabilities acquired was:
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Business Acquisition, Pro Forma Information [Table Text Block] | The following table provides unaudited pro forma financial information, prepared in accordance with Topic 805, for the three and six months ended June 30, 2020 and 2019, as if AK Steel had been acquired as of January 1, 2019:
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SEGMENT REPORTING (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Segment Reporting Information, By Segment | Our results by segment are as follows:
1 Includes Realization of deferred revenue of $34.6 million for the six months ended June 30, 2020. The following table provides a reconciliation of our consolidated Net income (loss) to total Adjusted EBITDA:
1 EBITDA of noncontrolling interests includes $15.8 million and $19.3 million for income and $4.7 million and $5.8 million of depreciation, depletion and amortization for the three and six months ended June 30, 2020, respectively. The following table summarizes our capital additions by segment:
1 Refer to NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION for additional information.
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Reconciliation of Assets from Segment to Consolidated | The following summarizes our assets by segment:
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value Of Each Of The Major Classes Of Consolidated Depreciable Assets | The following table indicates the carrying value of each of the major classes of our depreciable assets:
1 Includes right-of-use assets related to finance leases of $93.7 million and $49.0 million as of June 30, 2020 and December 31, 2019, respectively.
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GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following is a summary of our intangible assets and liabilities:
1 Amortization of intangible liabilities related to above-market supply contracts and intangible assets related to mining permits is recognized in Cost of goods sold. Amortization of all other intangible assets is recognized in Selling, general and administrative expenses.
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Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Estimated future amortization expense related to intangible assets at June 30, 2020 is as follows:
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Schedule of Finite-Lived Intangible Liabilities, Future Amortization Credit [Table Text Block] | Estimated future amortization income related to the intangible liabilities at June 30, 2020 is as follows:
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DEBT AND CREDIT FACILITIES (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Instrument, Redemption [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Long-Term Debt | The following represents a summary of our long-term debt:
1 Unless otherwise noted, references in this column to "Cliffs" are to Cleveland-Cliffs Inc., and references to "AK Steel" are to AK Steel Corporation. 2 Refers to Cleveland-Cliffs Inc. as borrower under our ABL Facility.
1 Unless otherwise noted, references in this column to "Cliffs" are to Cleveland-Cliffs Inc. 2 Refers to Cleveland-Cliffs Inc. and certain of its subsidiaries as borrowers under our Former ABL Facility.
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Schedule of Extinguishment of Debt | The following is a summary of the debt extinguished and the respective gain on extinguishment:
Debt Extinguishments - 2019 The following is a summary of the debt extinguished with cash and the respective loss on extinguishment:
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Schedule of Line of Credit Facilities | The following represents a summary of our borrowing capacity under the ABL Facility:
1 As of June 30, 2020, the ABL Facility has a maximum borrowing base of $2.0 billion. The available borrowing base is determined by applying customary advance rates to eligible accounts receivable, inventory and certain mobile equipment. 2 We issued standby letters of credit with certain financial institutions in order to support business obligations including, but not limited to, workers' compensation, employee severance, IRBs and environmental obligations.
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Schedule of Maturities of Long-term Debt | The following represents a summary of our maturities of debt instruments based on the principal amounts outstanding at June 30, 2020:
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9.875% 2025 Senior Secured Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Redemption | The following is a summary of redemption prices for our 9.875% 2025 Senior Secured Notes:
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6.375% 2025 Senior Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Redemption | The following is a summary of redemption prices for our 6.375% 2025 Senior Notes:
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7.00% 2027 Senior Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Redemption | The following is a summary of redemption prices for our 7.00% 2027 Senior Notes:
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7.50% 2023 AK Senior Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Redemption | The following is a summary of redemption prices for the 7.50% 2023 AK Senior Notes:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6.375% 2025 AK Senior Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Redemption | The following is a summary of redemption prices for the 6.375% 2025 AK Senior Notes:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6.75% 2026 Senior Secured Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Redemption | The following is a summary of redemption prices for our 6.75% 2026 Senior Secured Notes:
|
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7.00% 2027 AK Senior Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Redemption | The following is a summary of redemption prices for the 7.00% 2027 AK Senior Notes:
|
FAIR VALUE MEASUREMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following represents the assets and liabilities measured at fair value:
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Fair Value, Recurring and Nonrecurring, Valuation Techniques | The following table illustrates information about quantitative inputs and assumptions for the derivative assets and derivative liabilities categorized in Level 3 of the fair value hierarchy:
|
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Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation | The following tables represent a reconciliation of the changes in fair value of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
|
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation |
|
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Schedule Of Carrying Value And Fair Value Of Financial Instruments | A summary of the carrying value and fair value of other financial instruments were as follows:
|
PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The following are the components of defined benefit pension and OPEB costs (credits): Defined Benefit Pension Costs (Credits)
OPEB Costs (Credits)
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ASSET RETIREMENT OBLIGATIONS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Asset Retirement Obligations | The following is a summary of our asset retirement obligations:
1 Includes $33.0 million and $22.0 million related to our active operations as of June 30, 2020 and December 31, 2019, respectively.
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Schedule of Change in Asset Retirement Obligation | The following is a roll forward of our asset retirement obligation liability:
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DERIVATIVE INSTRUMENTS (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Derivative Instruments In Statement Of Financial Position, Fair Value | The following table presents the fair value of our derivative instruments and the classification of each in the Statements of Unaudited Condensed Consolidated Financial Position:
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Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents our outstanding hedge contracts:
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Derivative Instruments, Gain (Loss) [Table Text Block] | Estimated gains (losses) before tax expected to be reclassified into Cost of goods sold within the next 12 months for our existing derivatives that qualify as cash flow hedges are presented below:
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Schedule Of Derivatives Not Designated As Hedging Instruments Statements Of Financial Performance Location Table | The following summarizes the effect of our derivatives that are not designated as hedging instruments in the Statements of Unaudited Condensed Consolidated Operations:
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SHAREHOLDERS' EQUITY - Dividends Declared (Tables) |
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends Declared [Table Text Block] | The below table summarizes our recent dividend activity:
1 The dividend declared on September 3, 2019 included a special cash dividend of $0.04 per common share.
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables reflect the changes in Accumulated other comprehensive loss related to shareholders’ equity:
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Details of Accumulated Other Comprehensive Income (Loss) Components | The following table reflects the details about Accumulated other comprehensive loss components related to shareholders’ equity:
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RELATED PARTIES (Tables) |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | Investees and equity ownership percentages are presented below:
Hibbing is a co-owned joint venture with companies that are integrated steel producers or their subsidiaries. The following is a summary of the mine ownership of the co-owned iron ore mine at June 30, 2020:
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Summary Of Related Party Transactions Table Disclosure | The tables below summarize our material related party transactions: Revenues from related parties were as follows:
1 Includes Realization of deferred revenue of $34.6 million for the six months ended June 30, 2020. The following table presents the classification of related party assets and liabilities in the Statements of Unaudited Condensed Consolidated Financial Position:
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VARIABLE INTEREST ENTITIES (Tables) |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities [Table Text Block] | The consolidated balance sheet as of June 30, 2020 includes the following amounts for SunCoke Middletown:
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EARNINGS PER SHARE (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share Computation | The following table summarizes the computation of basic and diluted earnings per share:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table summarizes the shares that have been excluded from the diluted earnings per share calculation as they were anti-dilutive:
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COMMITMENTS AND CONTINGENCIES (Tables) |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Environmental Obligations | The following is a summary of our environmental obligations:
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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Equity Method Investments (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Mar. 13, 2020 |
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Combined Metals of Chicago, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 40.00% | |
Hibbing Taconite Company [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 23.00% | |
Spartan Steel Coating, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 32.5 | |
Equity Method Investment, Ownership Percentage | 48.00% |
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Allowance for Credit Losses (Details) - USD ($) $ in Millions |
6 Months Ended | |
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Jun. 30, 2020 |
Jun. 30, 2019 |
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Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses as of beginning of period | $ 0.0 | $ 0.0 |
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 4.3 | 0.0 |
Allowance for credit losses as of end of period | $ 4.3 | $ 0.0 |
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Inventories (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
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Inventory Disclosure [Abstract] | ||
Finished and semi-finished goods inventories | $ 1,026.4 | $ 114.1 |
Work-in-process | 89.5 | 68.7 |
Raw materials | 438.0 | 9.4 |
Total product inventories | 1,553.9 | 192.2 |
Manufacturing supplies and critical spares | 379.7 | 125.2 |
Inventories | $ 1,933.6 | $ 317.4 |
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Deferred Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
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Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Realization of deferred revenue | $ 0.0 | $ 0.0 | $ 34.6 | $ 0.0 |
Other Current Liabilities [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Opening balance as of January 1 | 22.1 | 21.0 | ||
Contract With Customer, Liability, Period Increase (Decrease) | (17.2) | (5.5) | ||
Closing balance as of June 30 | 4.9 | 15.5 | 4.9 | 15.5 |
Other Noncurrent Liabilities [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Opening balance as of January 1 | 25.7 | 38.5 | ||
Contract With Customer, Liability, Period Increase (Decrease) | (25.7) | (4.2) | ||
Closing balance as of June 30 | $ 0.0 | $ 34.3 | $ 0.0 | $ 34.3 |
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Accrued Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
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Disclosure Text Block [Abstract] | ||
Accrued employment costs | $ 153.8 | $ 61.7 |
Accrued interest | 71.5 | 29.0 |
Accrued dividends | 1.1 | 17.8 |
Other | 61.9 | 17.8 |
Accrued liabilities | $ 288.3 | $ 126.3 |
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Cash Flow Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
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Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
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Supplemental Cash Flow Information [Abstract] | ||||||
Capital additions | $ 230.7 | $ 320.9 | ||||
Non-cash accruals | (91.6) | 3.6 | ||||
Right-of-use assets obtained in exchange for new finance lease liabilities1 | 39.4 | 24.8 | ||||
Grants | 0.0 | (8.4) | ||||
Cash paid for capital expenditures including deposits | 282.9 | 300.9 | ||||
Taxes paid on income | 0.2 | 0.1 | ||||
Income tax refunds | (60.4) | (117.9) | ||||
Interest paid on debt obligations net of capitalized interest | [1] | 63.0 | 53.2 | |||
Interest Costs Capitalized | $ 13.6 | $ 5.9 | $ 23.3 | $ 9.9 | ||
|
SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION - Non-Cash Investing and Financing Activities (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Common Stock [Member] | ||
Other Significant Noncash Transactions [Line Items] | ||
Other Significant Noncash Transaction, Value of Consideration Given | $ 617.6 | $ 0.0 |
Share-based Payment Arrangement [Member] | ||
Other Significant Noncash Transactions [Line Items] | ||
Other Significant Noncash Transaction, Value of Consideration Given | $ 3.9 | $ 0.0 |
ACQUISITION OF AK STEEL - Transaction Overview (Details) $ in Millions |
3 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 13, 2020
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
Jul. 01, 2020
USD ($)
|
||||
Business Acquisition [Line Items] | |||||||||||
Revenues | $ 1,092.7 | $ 743.2 | $ 1,451.8 | [1] | $ 900.2 | ||||||
Net income (loss) | (123.9) | 160.8 | (176.0) | 138.7 | |||||||
Amortization of inventory step-up | 59.4 | 0.0 | |||||||||
Acquisition-related costs | 18.4 | $ 0.0 | 60.9 | $ 0.0 | |||||||
AK Steel Holding Corporation [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Acquisition, Shares Exchange Ratio | 0.400 | ||||||||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | $ 6,359.4 | ||||||||||
Revenues | 715.1 | $ 932.6 | |||||||||
Net income (loss) | (206.5) | (261.6) | |||||||||
Amortization of inventory step-up | 36.2 | 59.4 | |||||||||
Severance costs | 15.1 | $ 32.7 | |||||||||
Acquisition-related costs | $ 1.8 | $ 25.0 | |||||||||
Business Combination, Consideration Transferred | $ 1,535.1 | ||||||||||
Forecast [Member] | AK Steel Holding Corporation [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cost synergies | $ 150.0 | ||||||||||
|
ACQUISITION OF AK STEEL - Transaction Consideration (Details) $ / shares in Units, $ in Millions |
Mar. 13, 2020
USD ($)
$ / shares
shares
|
Jun. 30, 2020
shares
|
Mar. 31, 2020
shares
|
Dec. 31, 2019
shares
|
Jun. 30, 2019
shares
|
Mar. 31, 2019
shares
|
Dec. 31, 2018
shares
|
---|---|---|---|---|---|---|---|
Business Acquisition [Line Items] | |||||||
Fair value of Cliffs common shares issued for AK Steel outstanding common stock | $ 617.6 | ||||||
Number of shares of AK Steel common stock issued and outstanding | shares | 399,159,988 | 270,084,005 | |||||
AK Steel Holding Corporation [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of Cliffs common shares issued for AK Steel outstanding common stock | 617.6 | ||||||
Fair value of debt included in consideration | 913.6 | ||||||
Business Combination, Consideration Transferred | $ 1,535.1 | ||||||
Number of shares of AK Steel common stock issued and outstanding | shares | 316,900,000 | ||||||
Business Acquisition, Shares Exchange Ratio | 0.400 | ||||||
Shares of Cliffs common shares issued to AK Steel stockholders | shares | 126,800,000 | ||||||
Price per share of Cliffs common shares | $ / shares | $ 4.87 | ||||||
Credit Facility | AK Steel Holding Corporation [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of debt included in consideration | $ 590.0 | ||||||
7.50% 2023 AK Senior Notes [Member] | AK Steel Holding Corporation [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of debt included in consideration | 323.6 | ||||||
Share-based Payment Arrangement [Member] | AK Steel Holding Corporation [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of Cliffs common shares issued for AK Steel outstanding common stock | 3.9 | ||||||
Common Stock [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Number of shares of AK Steel common stock issued and outstanding | shares | 399,200,000 | 398,600,000 | 270,100,000 | 270,000,000.0 | 282,800,000 | 292,600,000 | |
Common Stock [Member] | AK Steel Holding Corporation [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of Cliffs common shares issued for AK Steel outstanding common stock | $ 617.6 |
ACQUISITION OF AK STEEL - Assets and Liabilities Assumed (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
|
Business Acquisition [Line Items] | |||
Goodwill | $ 139.3 | $ 2.1 | |
AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 39.7 | $ 37.7 | |
Accounts receivable | 662.8 | 666.0 | |
Inventories | 1,525.0 | 1,562.8 | |
Other current assets | 53.0 | 67.5 | |
Property, plant and equipment | 2,187.3 | 2,184.4 | |
Intangible assets | 148.0 | 163.0 | |
Right of use asset, operating leases | 209.6 | 225.9 | |
Other non-current assets | 111.8 | 85.9 | |
Accounts payable | (639.2) | (636.3) | |
Accrued liabilities | (224.6) | (222.5) | |
Other current liabilities | (174.8) | (181.8) | |
Long-term debt | (1,179.4) | (1,179.4) | |
Deferred income taxes | (21.4) | (19.7) | |
Operating lease liability, non-current | (188.1) | (188.1) | |
Intangible liabilities | (75.0) | (140.0) | |
Pension and OPEB liabilities | (873.0) | (873.0) | |
Asset retirement obligations | (13.9) | (13.9) | |
Other non-current liabilities | (149.9) | (144.2) | |
Net identifiable assets acquired | 1,397.9 | 1,394.3 | |
Goodwill | 137.2 | 141.2 | |
Total net assets acquired | 1,535.1 | $ 1,535.5 | |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Net Identifiable Assets | 3.6 | ||
Goodwill, Purchase Accounting Adjustments | (4.0) | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | (0.4) | ||
Cash and Cash Equivalents [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | 2.0 | ||
Accounts Receivable [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | (3.2) | ||
Inventories [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | (37.8) | ||
Other Current Assets [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | (14.5) | ||
Property, Plant and Equipment [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | 2.9 | ||
Finite-Lived Intangible Assets [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | (15.0) | ||
Right-of-use asset, operating lease [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | (16.3) | ||
Other Noncurrent Assets [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | 25.9 | ||
Accounts Payable [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | (2.9) | ||
Accrued Liabilities [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | (2.1) | ||
Other Current Liabilities [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 7.0 | ||
Long-term Debt [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 0.0 | ||
Deferred income taxes [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | (1.7) | ||
Operating lease liability, non-current [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 0.0 | ||
Intangible liabilities [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | 65.0 | ||
Pension and OPEB liabilities [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 0.0 | ||
Asset Retirement Obligation [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 0.0 | ||
Other Noncurrent Liabilities [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | (5.7) | ||
Cost of Sales [Member] | AK Steel Holding Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments Related to Previous Period | $ 7.8 |
ACQUISITION OF AK STEEL - Intangible Assets and Liabilities (Details) - AK Steel Holding Corporation [Member] $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 148.0 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (in years) | 17 years |
Intangible Liability Assumed | $ (75.0) |
Assumed Finite-lived Intangible Liabilities, Weighted Average Useful Life (in years) | 12 years |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 77.0 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (in years) | 18 years |
Technology-Based Intangible Assets [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 60.0 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (in years) | 17 years |
Trademarks and Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 11.0 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (in years) | 10 years |
ACQUISITION OF AK STEEL - Pro Forma Information (Details) - AK Steel Holding Corporation [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Business Acquisition, Pro Forma Revenue | $ 979.1 | $ 2,233.8 | $ 2,427.7 | $ 4,021.1 |
Business Acquisition, Pro Forma Net Income (Loss) | (125.3) | 184.9 | $ (163.7) | 128.3 |
Business Acquisition, Pro Forma Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 24.30% | |||
Business Acquisition, Pro Forma Income Tax Expense (Benefit) | 1.6 | (8.0) | $ (3.3) | 2.8 |
Fair Value Adjustment to Inventory [Member] | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Business Acquisition, Pro Forma Net Income (Loss) | 36.2 | 18.5 | 59.4 | 74.2 |
Acquisition-related Costs [Member] | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Business Acquisition, Pro Forma Net Income (Loss) | 1.8 | 28.4 | ||
Other Adjustments [Member] | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Business Acquisition, Pro Forma Net Income (Loss) | (12.3) | (4.0) | (1.0) | (6.9) |
Intersegment Eliminations [Member] | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Business Acquisition, Pro Forma Revenue | $ 113.6 | $ 189.9 | $ 259.2 | $ 257.3 |
SEGMENT REPORTING - Results by Segment (Details) T in Thousands, $ in Millions |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020
USD ($)
T
|
Jun. 30, 2019
USD ($)
T
|
Jun. 30, 2020
USD ($)
unit
T
|
Jun. 30, 2019
USD ($)
T
|
||||||
Segment Reporting Information [Line Items] | |||||||||
Number of Reporting Units | unit | 2 | ||||||||
Revenues | $ 1,092.7 | $ 743.2 | $ 1,451.8 | [1] | $ 900.2 | ||||
Adjusted EBITDA | (82.0) | 248.4 | (59.3) | 269.6 | |||||
Realization of deferred revenue | $ 0.0 | $ 0.0 | $ 34.6 | $ 0.0 | |||||
Steel and Manufacturing [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales Volume (Net Tons) | T | 619 | 0 | 818 | 0 | |||||
Revenues | $ 715.1 | $ 0.0 | $ 932.6 | $ 0.0 | |||||
Adjusted EBITDA | $ (104.0) | $ (1.1) | $ (115.1) | $ (1.9) | |||||
Mining and Pelletizing [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales Volume (Long Tons) | T | 3,718 | 6,189 | 5,069 | 7,739 | |||||
Revenues | $ 377.6 | $ 743.2 | $ 519.2 | $ 900.2 | |||||
Adjusted EBITDA | 82.4 | 280.5 | 164.2 | 328.0 | |||||
Corporate and Other [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Adjusted EBITDA | $ (60.4) | $ (31.0) | $ (108.4) | $ (56.5) | |||||
Operating Segments [Member] | Mining and Pelletizing [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales Volume (Long Tons) | T | 4,759 | 6,227 | 6,893 | 7,777 | |||||
Revenues | $ 489.0 | $ 747.2 | $ 718.4 | [2] | $ 904.2 | ||||
Intersegment Eliminations [Member] | Mining and Pelletizing [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales Volume (Long Tons) | T | (1,041) | (38) | (1,824) | (38) | |||||
Revenues | $ (111.4) | $ (4.0) | $ (199.2) | $ (4.0) | |||||
|
SEGMENT REPORTING - Net Income (Loss) to Total Adjusted EBITDA (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|||||
Segment Reporting Information [Line Items] | ||||||||
Net income (loss) | $ (108.1) | $ 160.8 | $ (156.7) | $ 138.7 | ||||
Interest expense, net | (68.7) | (26.1) | (99.7) | (51.2) | ||||
Income tax benefit (expense) | 24.7 | (22.0) | 76.1 | (18.3) | ||||
Depreciation, depletion and amortization | (111.5) | (40.9) | ||||||
EBITDA | 12.9 | 230.1 | (21.6) | 249.3 | ||||
Gain (loss) on extinguishment of debt | 129.4 | (17.9) | 132.6 | (18.2) | ||||
Acquisition-related costs excluding severance costs | (18.4) | 0.0 | (60.9) | 0.0 | ||||
Amortization of Inventory Step-up | (59.4) | 0.0 | ||||||
Impact of discontinued operations | (0.3) | (0.6) | 0.3 | (0.6) | ||||
Adjusted EBITDA | (82.0) | 248.4 | (59.3) | 269.6 | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | 15.8 | 0.0 | 19.3 | 0.0 | ||||
Depreciation, Depletion and Amortization Attributable to Noncontrolling Interests | 4.7 | 5.8 | ||||||
EBITDA Calculation [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Interest expense, net | (68.6) | (26.3) | (99.7) | (51.4) | ||||
Income tax benefit (expense) | 24.7 | (22.0) | 76.1 | (18.3) | ||||
Depreciation, depletion and amortization | (77.1) | (21.0) | (111.5) | (40.9) | ||||
Adjusted EBITDA Calculation [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
EBITDA of Noncontrolling Interests | 20.5 | [1] | 0.0 | 25.1 | [1] | 0.0 | ||
Gain (loss) on extinguishment of debt | 129.4 | (17.9) | 132.6 | (18.2) | ||||
Severance costs | (16.6) | 0.0 | (35.9) | (1.7) | ||||
Acquisition-related costs excluding severance costs | (1.8) | 0.0 | (25.0) | 0.0 | ||||
Amortization of Inventory Step-up | (36.2) | 0.0 | (59.4) | 0.0 | ||||
Impact of discontinued operations | $ (0.4) | $ (0.4) | $ 0.3 | $ (0.4) | ||||
|
SEGMENT REPORTING - Segment Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Total assets | $ 8,490.7 | $ 3,503.8 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 604.0 | 947.1 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 7,886.7 | 2,556.7 |
Operating Segments [Member] | Steel and Manufacturing [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 6,201.6 | 913.6 |
Operating Segments [Member] | Mining and Pelletizing [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,685.1 | $ 1,643.1 |
SEGMENT REPORTING - Segment Capital Additions (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Segment Reporting Information [Line Items] | ||||
Property, Plant and Equipment, Additions | $ 73.0 | $ 191.6 | $ 230.7 | $ 320.9 |
Steel and Manufacturing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property, Plant and Equipment, Additions | 55.6 | 155.1 | 178.8 | 237.5 |
Mining and Pelletizing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property, Plant and Equipment, Additions | 17.4 | 35.6 | 51.6 | 82.4 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property, Plant and Equipment, Additions | $ 0.0 | $ 0.9 | $ 0.3 | $ 1.0 |
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment, Gross | [1] | $ 5,885.8 | $ 5,885.8 | $ 3,027.4 | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 1,337.9 | 1,337.9 | 1,098.4 | ||||
Property, plant and equipment, net | 4,547.9 | 4,547.9 | 1,929.0 | ||||
Finance Lease, Right-of-Use Asset | 93.7 | 93.7 | 49.0 | ||||
Interest Costs Capitalized | 13.6 | $ 5.9 | 23.3 | $ 9.9 | |||
Depreciation and depletion expense | 75.3 | $ 20.9 | 110.7 | $ 40.5 | |||
Land, Land Improvements and Mineral Rights [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment, Gross | 653.2 | 653.2 | 582.2 | ||||
Building [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment, Gross | 454.4 | 454.4 | 157.8 | ||||
Steel and Manufacturing Equipment [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment, Gross | 2,147.9 | 2,147.9 | 42.0 | ||||
Mining and Pelletizing Equipment [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment, Gross | 1,448.6 | 1,448.6 | 1,413.6 | ||||
Other Assets [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment, Gross | 123.4 | 123.4 | 101.5 | ||||
Construction in Progress [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment, Gross | $ 1,058.3 | $ 1,058.3 | $ 730.3 | ||||
|
GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES - Goodwill (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 139.3 | $ 2.1 |
Steel and Manufacturing [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 137.2 | |
Mining and Pelletizing [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 2.1 | $ 2.1 |
GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES - Intangible Assets and Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 220.2 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (27.6) | |
Finite-Lived Intangible Assets, Net | 192.6 | |
Finite-Lived Intangible Liabilities, Gross | (75.0) | |
Finite-Lived Intangible Liabilities, Accumulated Amortization | 2.7 | |
Finite-Lived Intangible Liabilities, Net | (72.3) | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 77.0 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (1.5) | |
Finite-Lived Intangible Assets, Net | 75.5 | |
Technology-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 60.0 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (1.2) | |
Finite-Lived Intangible Assets, Net | 58.8 | |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 11.0 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (0.4) | |
Finite-Lived Intangible Assets, Net | 10.6 | |
Mining Permits [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 72.2 | $ 72.2 |
Finite-Lived Intangible Assets, Accumulated Amortization | (24.5) | (24.1) |
Finite-Lived Intangible Assets, Net | $ 47.7 | $ 48.1 |
GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES - Amortization of Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 2.4 | $ 0.2 | $ 3.5 | $ 0.4 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 5.0 | 5.0 | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 10.0 | 10.0 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 10.0 | 10.0 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 10.0 | 10.0 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 10.0 | 10.0 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 10.0 | $ 10.0 |
GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES - Amortization of Intangible Liability (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2020
USD ($)
|
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Liabilities | $ 0.6 | $ 2.7 |
Finite-Lived Intangible Liabilities, Amortization Credit, Remainder of Fiscal Year | 4.1 | 4.1 |
Finite-Lived Intangible Liabilities, Amortization Credit, Next Twelve Months | 8.2 | 8.2 |
Finite-Lived Intangible Liabilities, Amortization Credit, Year Two | 8.2 | 8.2 |
Finite-Lived Intangible Liabilities, Amortization Credit, Year Three | 8.2 | 8.2 |
Finite-Lived Intangible Liabilities, Amortization Credit, Year Four | 8.2 | 8.2 |
Finite-Lived Intangible Liabilities, Amortization Credit, Year Five | $ 8.2 | $ 8.2 |
DEBT AND CREDIT FACILITIES - Schedule Of Long-Term Debt (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Jun. 19, 2020 |
Apr. 24, 2020 |
Apr. 17, 2020 |
Mar. 16, 2020 |
Mar. 13, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 4,640.7 | ||||||
LONG-TERM DEBT | 4,451.6 | $ 2,113.8 | |||||
9.875% 2025 Senior Secured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 555.2 | $ 400.0 | |||||
6.75% 2026 Senior Secured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 120.0 | $ 725.0 | |||||
6.375% 2025 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 231.8 | ||||||
7.00% 2027 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 335.4 | ||||||
Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Line of Credit | $ 550.0 | ||||||
Cleveland-Cliffs Inc. [Member] | 4.875% 2024 Senior Secured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.00% | 5.00% | |||||
Long-term Debt, Gross | $ 394.5 | $ 400.0 | |||||
Unamortized Debt Issuance Expense | (4.0) | (4.6) | |||||
Debt Instrument, Unamortized Discount | (1.6) | (1.8) | |||||
Long-term Debt | $ 388.9 | $ 393.6 | |||||
Cleveland-Cliffs Inc. [Member] | 9.875% 2025 Senior Secured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 10.57% | ||||||
Long-term Debt, Gross | $ 955.2 | ||||||
Unamortized Debt Issuance Expense | (8.7) | ||||||
Debt Instrument, Unamortized Discount | (26.7) | ||||||
Long-term Debt | $ 919.8 | ||||||
Cleveland-Cliffs Inc. [Member] | 6.75% 2026 Senior Secured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.99% | ||||||
Long-term Debt, Gross | $ 845.0 | ||||||
Unamortized Debt Issuance Expense | (22.6) | ||||||
Debt Instrument, Unamortized Discount | (9.4) | ||||||
Long-term Debt | $ 813.0 | ||||||
Cleveland-Cliffs Inc. [Member] | 6.375% 2025 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.11% | ||||||
Long-term Debt, Gross | $ 64.3 | ||||||
Unamortized Debt Issuance Expense | (0.2) | ||||||
Debt Instrument, Unamortized Discount | (4.8) | ||||||
Long-term Debt | $ 59.3 | ||||||
Cleveland-Cliffs Inc. [Member] | 1.50% 2025 Convertible Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.26% | 6.26% | |||||
Long-term Debt, Gross | $ 296.3 | $ 316.3 | |||||
Unamortized Debt Issuance Expense | (3.9) | (4.6) | |||||
Debt Instrument, Unamortized Discount | (55.6) | (65.0) | |||||
Long-term Debt | $ 236.8 | $ 246.7 | |||||
Cleveland-Cliffs Inc. [Member] | 5.75% 2025 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.01% | 6.01% | |||||
Long-term Debt, Gross | $ 396.2 | $ 473.3 | |||||
Unamortized Debt Issuance Expense | (2.8) | (3.6) | |||||
Debt Instrument, Unamortized Discount | (4.3) | (5.5) | |||||
Long-term Debt | $ 389.1 | $ 464.2 | |||||
Cleveland-Cliffs Inc. [Member] | 7.00% 2027 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 9.24% | ||||||
Long-term Debt, Gross | $ 88.0 | ||||||
Unamortized Debt Issuance Expense | (0.3) | ||||||
Debt Instrument, Unamortized Discount | (9.8) | ||||||
Long-term Debt | $ 77.9 | ||||||
Cleveland-Cliffs Inc. [Member] | 5.875% 2027 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.49% | 6.49% | |||||
Long-term Debt, Gross | $ 555.5 | $ 750.0 | |||||
Unamortized Debt Issuance Expense | (4.5) | (6.3) | |||||
Debt Instrument, Unamortized Discount | (19.0) | (27.3) | |||||
Long-term Debt | $ 532.0 | $ 716.4 | |||||
Cleveland-Cliffs Inc. [Member] | 6.25% 2040 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.34% | 6.34% | |||||
Long-term Debt, Gross | $ 262.7 | $ 298.4 | |||||
Unamortized Debt Issuance Expense | (1.9) | (2.2) | |||||
Debt Instrument, Unamortized Discount | (2.8) | (3.3) | |||||
Long-term Debt | $ 258.0 | 292.9 | |||||
Cleveland-Cliffs Inc. [Member] | Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.79% | ||||||
Long-term Debt, Gross | $ 2,000.0 | 450.0 | |||||
Long-term Line of Credit | $ 550.0 | $ 0.0 | |||||
AK Steel Holding Corporation [Member] | 7.625% 2021 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.33% | ||||||
Long-term Debt, Gross | $ 33.5 | ||||||
Unamortized Debt Issuance Expense | 0.0 | ||||||
Debt Instrument, Unamortized Premium | 0.1 | ||||||
Long-term Debt | $ 33.6 | ||||||
AK Steel Holding Corporation [Member] | 7.50% 2023 AK Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.17% | ||||||
Long-term Debt, Gross | $ 12.8 | ||||||
Unamortized Debt Issuance Expense | 0.0 | ||||||
Debt Instrument, Unamortized Premium | 0.5 | ||||||
Long-term Debt | $ 13.3 | ||||||
AK Steel Holding Corporation [Member] | 6.375% 2025 AK Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.11% | ||||||
Long-term Debt, Gross | $ 38.4 | ||||||
Unamortized Debt Issuance Expense | 0.0 | ||||||
Debt Instrument, Unamortized Discount | (2.9) | ||||||
Long-term Debt | $ 35.5 | ||||||
AK Steel Holding Corporation [Member] | 7.00% 2027 AK Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 9.24% | ||||||
Long-term Debt, Gross | $ 56.3 | ||||||
Unamortized Debt Issuance Expense | 0.0 | ||||||
Debt Instrument, Unamortized Discount | (6.2) | ||||||
Long-term Debt | 50.1 | ||||||
AK Steel Holding Corporation [Member] | Industrial Revenue Bonds [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | 92.0 | ||||||
Unamortized Debt Issuance Expense | 0.0 | ||||||
Debt Instrument, Unamortized Premium | 2.3 | ||||||
Long-term Debt | $ 94.3 |
DEBT AND CREDIT FACILITIES - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 19, 2020 |
Apr. 24, 2020 |
Apr. 17, 2020 |
Mar. 16, 2020 |
Mar. 13, 2020 |
|
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 4,640.7 | |||||
6.375% 2025 Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 231.8 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | |||||
Repurchase price if triggering event occurs | 101.00% | |||||
Debt Issuance Costs, Gross | $ 0.9 | |||||
7.00% 2027 Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 335.4 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||||
Debt Issuance Costs, Gross | $ 1.3 | |||||
9.875% 2025 Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 555.2 | $ 400.0 | ||||
Debt issuance, discount rate | 99.00% | 94.50% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 9.875% | |||||
Repurchase price if triggering event occurs | 101.00% | |||||
Debt Issuance Costs, Gross | $ 9.1 | |||||
6.75% 2026 Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 120.0 | $ 725.0 | ||||
Debt issuance, discount rate | 99.25% | 98.783% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||||
Repurchase price if triggering event occurs | 101.00% | |||||
Debt Issuance Costs, Gross | $ 23.7 | |||||
Cleveland-Cliffs Inc. [Member] | 6.375% 2025 Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | 64.3 | |||||
Cleveland-Cliffs Inc. [Member] | 7.00% 2027 Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 88.0 | |||||
Repurchase price if triggering event occurs | 101.00% | |||||
Cleveland-Cliffs Inc. [Member] | 9.875% 2025 Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 955.2 | |||||
Cleveland-Cliffs Inc. [Member] | 6.75% 2026 Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | 845.0 | |||||
AK Steel Holding Corporation [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unsecured Long-term Debt, Noncurrent | 141.0 | |||||
AK Steel Holding Corporation [Member] | Unsecured Industrial Revenue Bonds [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 66.0 | |||||
Debt, Weighted Average Interest Rate | 6.86% | |||||
AK Steel Holding Corporation [Member] | Secured Industrial Revenue Bonds [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 26.0 |
DEBT AND CREDIT FACILITIES - Debt Instrument Redemption (Details) |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
6.75% 2026 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One, Upon Equity Issuance [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 106.75% |
6.75% 2026 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One, Including Premium [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
6.75% 2026 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 105.063% |
6.75% 2026 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.375% |
6.75% 2026 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.688% |
6.75% 2026 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Five [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
9.875% 2025 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One, Using Proceeds of a Regulatory Debt Facility[Member] [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.00% |
9.875% 2025 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One, Upon Equity Issuance [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 109.875% |
9.875% 2025 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One, Including Premium [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
9.875% 2025 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 107.406% |
9.875% 2025 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 104.938% |
9.875% 2025 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.469% |
9.875% 2025 Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Five [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
6.375% 2025 Senior Notes [Member] | Debt Instrument, Redemption, Period One, Upon Equity Issuance [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 106.375% |
6.375% 2025 Senior Notes [Member] | Debt Instrument, Redemption, Period One, Including Premium [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
6.375% 2025 Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.188% |
6.375% 2025 Senior Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.594% |
6.375% 2025 Senior Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
7.00% 2027 Senior Notes [Member] | Debt Instrument, Redemption, Period One, Including Premium [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
7.00% 2027 Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.50% |
7.00% 2027 Senior Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.333% |
7.00% 2027 Senior Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.167% |
7.00% 2027 Senior Notes [Member] | Debt Instrument, Redemption, Period Five [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
7.625% 2021 AK Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
7.50% 2023 AK Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.75% |
7.50% 2023 AK Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.875% |
7.50% 2023 AK Senior Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
6.375% 2025 AK Senior Notes [Member] | Debt Instrument, Redemption, Period One, Including Premium [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
6.375% 2025 AK Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.188% |
6.375% 2025 AK Senior Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.594% |
6.375% 2025 AK Senior Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
7.00% 2027 AK Senior Notes [Member] | Debt Instrument, Redemption, Period One, Including Premium [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
7.00% 2027 AK Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.50% |
7.00% 2027 AK Senior Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.333% |
7.00% 2027 AK Senior Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.167% |
7.00% 2027 AK Senior Notes [Member] | Debt Instrument, Redemption, Period Five [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
DEBT AND CREDIT FACILITIES - Schedule of Extinguishment of Debt (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Apr. 24, 2020 |
Mar. 27, 2020 |
Mar. 13, 2020 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | $ 736.4 | $ 747.6 | $ 714.0 | $ 1,487.5 | $ 724.0 | ||
Reduction of Principal Long-Term Debt | $ 181.2 | ||||||
Gain (loss) on extinguishment of debt | 129.4 | (17.9) | 132.6 | (18.2) | |||
Senior Notes [Member] | |||||||
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | 11.2 | ||||||
7.625% 2021 AK Senior Notes [Member] | |||||||
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | $ 8.5 | $ 364.2 | 0.0 | 372.7 | |||
Gain (loss) on extinguishment of debt | 0.0 | 0.4 | |||||
7.50% 2023 AK Senior Notes [Member] | |||||||
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | $ 56.5 | $ 310.7 | 0.0 | 367.2 | |||
Gain (loss) on extinguishment of debt | 0.0 | 2.8 | |||||
4.875% 2024 Senior Secured Notes [Member] | |||||||
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | 5.5 | 5.5 | |||||
Gain (loss) on extinguishment of debt | 0.5 | 0.5 | |||||
6.375% 2025 Senior Notes [Member] | |||||||
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | 167.5 | 167.5 | |||||
Gain (loss) on extinguishment of debt | 21.3 | 21.3 | |||||
1.50% 2025 Convertible Senior Notes [Member] | |||||||
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | 20.0 | 20.0 | |||||
Gain (loss) on extinguishment of debt | 1.3 | 1.3 | |||||
4.875% 2021 Senior Notes [Member] | |||||||
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | 114.0 | 124.0 | |||||
Gain (loss) on extinguishment of debt | (5.0) | (5.3) | |||||
5.75% 2025 Senior Notes [Member] | |||||||
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | 77.1 | 600.0 | 77.1 | 600.0 | |||
Gain (loss) on extinguishment of debt | 16.3 | $ (12.9) | 16.3 | $ (12.9) | |||
7.00% 2027 Senior Notes [Member] | |||||||
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | 247.3 | 247.3 | |||||
Gain (loss) on extinguishment of debt | 28.4 | 28.4 | |||||
5.875% 2027 Senior Notes [Member] | |||||||
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | 194.5 | 194.5 | |||||
Gain (loss) on extinguishment of debt | 48.7 | 48.7 | |||||
6.25% 2040 Senior Notes [Member] | |||||||
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | 35.7 | 35.7 | |||||
Gain (loss) on extinguishment of debt | 12.9 | $ 12.9 | |||||
AK Steel Holding Corporation [Member] | Unsecured Industrial Revenue Bonds [Member] | |||||||
Extinguishment of Debt [Line Items] | |||||||
Extinguishment of Debt, Amount | $ 7.3 |
DEBT AND CREDIT FACILITIES - ABL Facility (Details) $ in Millions |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2020
USD ($)
| ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000.0 | |||||
Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Sublimit for letters of credit | 555.0 | |||||
Sublimit for swingline loans | 125.0 | |||||
FILO Tranche Commitments | 150.0 | |||||
Available borrowing base on ABL Facility | 1,652.1 | [1] | ||||
Long-term Line of Credit | (550.0) | |||||
Borrowing capacity available | $ 903.6 | |||||
Fixed Charge Coverage Ratio | 1.0 | |||||
Letter of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Long-term Line of Credit | $ (198.5) | [2] | ||||
|
DEBT AND CREDIT FACILITIES - Schedule of Debt Maturities (Details) $ in Millions |
Jun. 30, 2020
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Debt Maturities 2020 | $ 0.0 |
Debt Maturities 2021 | 33.5 |
Debt Maturities 2022 | 0.0 |
Debt Maturities 2023 | 12.8 |
Debt Maturities 2024 | 456.5 |
2025 and thereafter | 4,137.9 |
Total maturities of debt | $ 4,640.7 |
FAIR VALUE MEASUREMENTS - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, Fair Value Disclosure | $ 63.2 | $ 233.4 |
Liabilities, Fair Value Disclosure | (19.7) | (4.3) |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, Fair Value Disclosure | 21.8 | 0.0 |
Liabilities, Fair Value Disclosure | 0.0 | 0.0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, Fair Value Disclosure | 6.1 | 187.6 |
Liabilities, Fair Value Disclosure | (19.7) | (3.2) |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, Fair Value Disclosure | 35.3 | 45.8 |
Liabilities, Fair Value Disclosure | 0.0 | (1.1) |
Cash and Cash Equivalents [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 21.8 | 187.6 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 21.8 | 0.0 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0.0 | 187.6 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0.0 | 0.0 |
Commodity Contract [Member] | Other Current Assets [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 5.4 | |
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0.0 | |
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 5.4 | |
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0.0 | |
Commodity Contract [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0.7 | |
Commodity Contract [Member] | Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0.0 | |
Commodity Contract [Member] | Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0.7 | |
Commodity Contract [Member] | Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0.0 | |
Commodity Contract [Member] | Other Current Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (17.2) | (3.2) |
Commodity Contract [Member] | Other Current Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0.0 | 0.0 |
Commodity Contract [Member] | Other Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (17.2) | (3.2) |
Commodity Contract [Member] | Other Current Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0.0 | 0.0 |
Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (1.1) | |
Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0.0 | |
Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (1.1) | |
Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0.0 | |
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (1.0) | |
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0.0 | |
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (1.0) | |
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0.0 | |
Foreign Exchange Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (0.4) | |
Foreign Exchange Contract [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0.0 | |
Foreign Exchange Contract [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (0.4) | |
Foreign Exchange Contract [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0.0 | |
Customer Supply Agreement [Member] | Other Current Assets [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 27.3 | 44.5 |
Customer Supply Agreement [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0.0 | 0.0 |
Customer Supply Agreement [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0.0 | 0.0 |
Customer Supply Agreement [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 27.3 | 44.5 |
Provisional Pricing Arrangements [Member] | Other Current Assets [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 8.0 | 1.3 |
Provisional Pricing Arrangements [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0.0 | 0.0 |
Provisional Pricing Arrangements [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0.0 | 0.0 |
Provisional Pricing Arrangements [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | $ 8.0 | 1.3 |
Provisional Pricing Arrangements [Member] | Other Current Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (1.1) | |
Provisional Pricing Arrangements [Member] | Other Current Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0.0 | |
Provisional Pricing Arrangements [Member] | Other Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0.0 | |
Provisional Pricing Arrangements [Member] | Other Current Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | $ (1.1) |
FAIR VALUE MEASUREMENTS - Quantitative Inputs And Assumptions For Level 3 Assets And Liabilities (Details) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Managements Estimate Of Sixty Two Percent [Member] | Fair Value, Inputs, Level 3 [Member] | Not Designated as Hedging Instrument [Member] | Valuation, Market Approach [Member] | Provisional Pricing Arrangements [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement With Unobservable Inputs Range | 94 | |
Atlantic Basin Pellet Premium [Member] | Fair Value, Inputs, Level 3 [Member] | Not Designated as Hedging Instrument [Member] | Valuation, Market Approach [Member] | Provisional Pricing Arrangements [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement With Unobservable Inputs Range | 32 | |
Customer's Hot-Rolled Steel Estimate [Member] | Fair Value, Inputs, Level 3 [Member] | Not Designated as Hedging Instrument [Member] | Valuation, Market Approach [Member] | Customer Supply Agreement [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement With Unobservable Inputs Range | 562 | |
Customer's Hot-Rolled Steel Estimate [Member] | Fair Value, Inputs, Level 3 [Member] | Not Designated as Hedging Instrument [Member] | Valuation, Market Approach [Member] | Customer Supply Agreement [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement With Unobservable Inputs Range | 639 | |
Customer's Hot-Rolled Steel Estimate [Member] | Fair Value, Inputs, Level 3 [Member] | Not Designated as Hedging Instrument [Member] | Valuation, Market Approach [Member] | Customer Supply Agreement [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement With Unobservable Inputs Range | 564 | |
Other Current Assets [Member] | Customer Supply Agreement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $ 27.3 | $ 44.5 |
Other Current Assets [Member] | Provisional Pricing Arrangements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 8.0 | 1.3 |
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Customer Supply Agreement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 27.3 | 44.5 |
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Provisional Pricing Arrangements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 8.0 | 1.3 |
Other Current Assets [Member] | Fair Value, Inputs, Level 3 [Member] | Customer Supply Agreement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 27.3 | 44.5 |
Other Current Assets [Member] | Fair Value, Inputs, Level 3 [Member] | Provisional Pricing Arrangements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $ 8.0 | $ 1.3 |
FAIR VALUE MEASUREMENTS - Fair Value, Assets and Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | $ 19.6 | $ 106.7 | $ 45.8 | $ 91.4 |
Included in earnings | 40.0 | 74.3 | 13.8 | 89.6 |
Settlements | (24.3) | (62.9) | (24.3) | (62.9) |
Ending balance | 35.3 | 118.1 | 35.3 | 118.1 |
Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date | 33.6 | 73.0 | 13.6 | 88.3 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 0.0 | (9.8) | (1.1) | 0.0 |
Included in earnings | 0.0 | 4.5 | (0.6) | (5.3) |
Settlements | 0.0 | 5.3 | 1.7 | 5.3 |
Ending balance | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
FAIR VALUE MEASUREMENTS - Carrying Value And Fair Value Of Financial Instruments Disclosure (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, fair value | $ 4,451.6 | $ 2,113.8 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, fair value | 4,317.8 | 2,237.0 |
Senior Notes [Member] | Carrying Value [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, fair value | 3,807.3 | 2,113.8 |
Senior Notes [Member] | Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, fair value | 3,681.8 | 2,237.0 |
Industrial Revenue Bonds [Member] | Carrying Value [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, fair value | 94.3 | 0.0 |
Industrial Revenue Bonds [Member] | Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, fair value | 86.0 | 0.0 |
Line of Credit [Member] | Carrying Value [Member] | Fair Value, Inputs, Level 2 [Member] | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, fair value | 550.0 | 0.0 |
Line of Credit [Member] | Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, fair value | $ 550.0 | $ 0.0 |
PENSIONS AND OTHER POSTRETIREMENT BENEFITS - Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 5.3 | $ 4.2 | $ 10.6 | $ 8.3 |
Interest cost | 14.9 | 8.6 | 23.1 | 17.3 |
Expected return on plan assets | (36.7) | (13.7) | (55.2) | (27.3) |
Prior service cost (credits) | 0.3 | 0.3 | 0.5 | 0.6 |
Net actuarial loss | 6.6 | 5.9 | 13.3 | 11.8 |
Net periodic benefit cost (credit) | (9.6) | 5.3 | (7.7) | 10.7 |
Defined Benefit Pension Contributions | 0.2 | 3.5 | 4.0 | 6.7 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1.4 | 0.4 | 1.9 | 0.8 |
Interest cost | 4.3 | 2.4 | 6.5 | 4.7 |
Expected return on plan assets | (4.6) | (4.2) | (9.1) | (8.4) |
Prior service cost (credits) | (0.5) | (0.5) | (1.0) | (1.0) |
Net actuarial loss | 0.7 | 1.2 | 1.4 | 2.5 |
Net periodic benefit cost (credit) | 1.3 | (0.7) | (0.3) | (1.4) |
OPEB Contributions | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 31.10% | 12.10% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount of Expense (Benefit) | $ 0.3 | $ (0.4) | $ (3.7) | $ (0.8) |
ASSET RETIREMENT OBLIGATIONS - Summary Of Asset Retirement Obligations (Details) - USD ($) $ in Millions |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|||||
Environmental Exit Cost [Line Items] | ||||||||
Asset Retirement Obligation | $ 183.3 | [1] | $ 177.1 | $ 165.3 | [1] | $ 172.4 | ||
Asset Retirement Obligation, Current | 2.2 | 2.1 | ||||||
Long-term asset retirement obligations | 181.1 | 163.2 | ||||||
Increase from AK Steel acquisition | 13.9 | $ 0.0 | ||||||
Operating Segments [Member] | ||||||||
Environmental Exit Cost [Line Items] | ||||||||
Asset Retirement Obligation | $ 33.0 | $ 22.0 | ||||||
|
ASSET RETIREMENT OBLIGATIONS - Asset Retirement Obligation Disclosure (Details) - USD ($) $ in Millions |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
||||
Asset Retirement Obligation [Roll Forward] | |||||
Asset retirement obligation at beginning of period | $ 165.3 | [1] | $ 172.4 | ||
Increase from AK Steel acquisition | 13.9 | 0.0 | |||
Accretion expense | 4.9 | 5.1 | |||
Remediation payments | (0.8) | (0.4) | |||
Asset retirement obligation at end of period | $ 183.3 | [1] | $ 177.1 | ||
|
DERIVATIVE INSTRUMENTS - Schedule Of Derivative Instruments In Statement Of Financial Position, Fair Value (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 5.4 | |
Commodity Contract [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0.7 | |
Commodity Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (17.2) | $ (3.2) |
Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (1.1) | |
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (1.0) | |
Foreign Exchange Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (0.4) | |
Customer Supply Agreement [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 27.3 | 44.5 |
Provisional Pricing Arrangements [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 8.0 | 1.3 |
Provisional Pricing Arrangements [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (1.1) | |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 1.6 | 0.0 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0.6 | 0.0 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (14.2) | (3.2) |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (0.9) | 0.0 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (1.0) | 0.0 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (0.4) | 0.0 |
Designated as Hedging Instrument [Member] | Customer Supply Agreement [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0.0 | 0.0 |
Designated as Hedging Instrument [Member] | Provisional Pricing Arrangements [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0.0 | 0.0 |
Designated as Hedging Instrument [Member] | Provisional Pricing Arrangements [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0.0 | 0.0 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 3.8 | 0.0 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0.1 | 0.0 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (3.0) | 0.0 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (0.2) | 0.0 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0.0 | 0.0 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0.0 | 0.0 |
Not Designated as Hedging Instrument [Member] | Customer Supply Agreement [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 27.3 | 44.5 |
Not Designated as Hedging Instrument [Member] | Provisional Pricing Arrangements [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 8.0 | 1.3 |
Not Designated as Hedging Instrument [Member] | Provisional Pricing Arrangements [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 0.0 | $ (1.1) |
DERIVATIVE INSTRUMENTS - Schedule of Notional Amounts of Outstanding Derivatives (Details) - Designated as Hedging Instrument [Member] lb in Millions, gal in Millions, MWh in Millions, MMBTU in Millions, $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2020
CAD ($)
gal
lb
MMBTU
MWh
|
Dec. 31, 2019
CAD ($)
gal
lb
MMBTU
MWh
|
|
Natural Gas [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBTU | 39.2 | 20.1 |
Diesel [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | gal | 0.0 | 0.8 |
Zinc [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | lb | 18.2 | 0.0 |
Electricity [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | MWh | 1.5 | 0.0 |
Canada, Dollars | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 48.7 | $ 0.0 |
DERIVATIVE INSTRUMENTS - Estimated Losses in Future Periods (Details) - Designated as Hedging Instrument [Member] $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Natural Gas [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ (4.6) |
Zinc [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 0.6 |
Electricity [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ (1.0) |
DERIVATIVE INSTRUMENTS - Schedule Of Derivatives Not Designated As Hedging Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 41.3 | $ 74.8 | $ 8.5 | $ 80.3 |
Customer Supply Agreement [Member] | Revenue from Contract with Customer Benchmark [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 31.2 | 57.5 | 5.6 | 74.6 |
Provisional Pricing Arrangements [Member] | Revenue from Contract with Customer Benchmark [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 8.8 | 17.3 | 7.6 | 5.7 |
Foreign Exchange Contract [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0.1 | 0.0 | 0.0 | 0.0 |
Commodity Contract [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 1.2 | $ 0.0 | $ (4.7) | $ 0.0 |
SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Mar. 13, 2020 |
Dec. 31, 2019 |
Apr. 24, 2019 |
Nov. 26, 2018 |
|
Class of Stock [Line Items] | |||||||||
Common shares, par value | $ 0.125 | $ 0.125 | |||||||
Fair value of Cliffs common shares issued for AK Steel outstanding common stock | $ 617.6 | ||||||||
Stock Repurchase Program, Authorized Amount | $ 100.0 | $ 200.0 | |||||||
Stock Repurchased During Period, Shares | 24,400,000 | ||||||||
Payments for Repurchase of common shares | $ 0.0 | $ 252.9 | |||||||
Preferred Class A [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares authorized (in shares) | 3,000,000 | ||||||||
Preferred Stock, Shares Issued | 0 | ||||||||
Preferred Stock, Shares Outstanding | 0 | ||||||||
Preferred Class B [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares authorized (in shares) | 4,000,000 | ||||||||
Preferred Stock, Shares Issued | 0 | ||||||||
Preferred Stock, Shares Outstanding | 0 | ||||||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock Issued During Period, Shares, Acquisitions | 126,800,000 | 126,800,000 | |||||||
Stock Repurchased During Period, Shares | 12,900,000 | 11,500,000 |
SHAREHOLDERS' EQUITY - Dividends Declared (Details) - $ / shares |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
||||
Dividends Payable [Line Items] | |||||||||
Cash dividends paid, per share | $ 0.06 | $ 0.06 | $ 0.10 | [1] | $ 0.06 | $ 0.05 | $ 0.05 | ||
Special Dividend [Member] | |||||||||
Dividends Payable [Line Items] | |||||||||
Cash dividends paid, per share | $ 0.04 | ||||||||
|
ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in AOCI (loss) related to shareholders' equity (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax, Beginning Balance | $ (310.1) | $ (315.7) | $ (275.4) | $ (281.1) | $ (315.7) | $ (281.1) |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Beginning Balance | (0.9) | 0.0 | 0.0 | |||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax, Beginning Balance | (6.1) | (3.1) | (0.1) | (2.8) | (3.1) | (2.8) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | (317.1) | (318.8) | (275.5) | (283.9) | (318.8) | (283.9) |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax, Ending Balance | (304.1) | (310.1) | (269.6) | (275.4) | (304.1) | (269.6) |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Ending Balance | (0.2) | (0.9) | (0.2) | |||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax, Ending Balance | (1.6) | (6.1) | (2.2) | (0.1) | (1.6) | (2.2) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | (305.9) | (317.1) | (271.8) | (275.5) | $ (305.9) | $ (271.8) |
Changes in Pension and Other Post-Retirement Benefits, net of tax [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications | 0.4 | 0.0 | 0.3 | 0.2 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 5.6 | 5.6 | 5.5 | 5.5 | ||
Unrealized Net Gain (Loss) on Foreign Currency Translation [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications | 0.7 | (0.9) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.0 | 0.0 | ||||
Net Unrealized Gain (Loss) on Derivative Financial Instruments, net of tax [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications | 1.4 | (5.2) | (2.3) | 2.5 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3.1 | 2.2 | 0.2 | 0.2 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications | 2.5 | (6.1) | (2.0) | 2.7 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 8.7 | $ 7.8 | $ 5.7 | $ 5.7 |
ACCUMULATED OTHER COMPREHENSIVE LOSS - Accumulated Other Comprehensive Income (Loss) Components (Details) - Reclassification out of Accumulated Other Comprehensive Income [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | $ (0.2) | $ (0.2) | $ (0.5) | $ (0.4) |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax | 7.3 | 7.1 | 14.7 | 14.3 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 7.1 | 6.9 | 14.2 | 13.9 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax | (1.5) | (1.4) | (3.0) | (2.9) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax | 5.6 | 5.5 | 11.2 | 11.0 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 3.9 | 0.2 | 6.7 | 0.5 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | (0.8) | 0.0 | (1.4) | (0.1) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 3.1 | 0.2 | 5.3 | 0.4 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 8.7 | $ 5.7 | $ 16.5 | $ 11.4 |
RELATED PARTIES - Summary Of Ownership Interests (Details) - Hibbing [Member] |
Jun. 30, 2020 |
---|---|
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 23.00% |
Arcelor Mittal [Member] | |
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 62.30% |
U. S. Steel [Member] | |
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 14.70% |
RELATED PARTIES - Summary Of Related Party Transactions Table Disclosure (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
||||||
Related Party Transaction [Line Items] | ||||||||||
Product revenues from related parties | $ 281.8 | $ 452.4 | $ 292.6 | $ 499.3 | ||||||
Revenues | $ 1,092.7 | $ 743.2 | $ 1,451.8 | [1] | $ 900.2 | |||||
Related party product revenue as a percent of total product revenue | 25.80% | 60.90% | 20.20% | [2] | 55.50% | |||||
Purchases from related parties | $ 9.7 | $ 0.0 | $ 12.2 | $ 0.0 | ||||||
Realization of deferred revenue | 0.0 | $ 0.0 | 34.6 | $ 0.0 | ||||||
Trade Accounts Receivable [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Due from Related Parties, Current | 91.6 | 91.6 | $ 31.1 | |||||||
Other Current Assets [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Due from Related Parties, Current | 35.3 | 35.3 | 44.5 | |||||||
Accounts Payable [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Due to Related Parties, Current | (2.4) | (2.4) | 0.0 | |||||||
Other Current Liabilities [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Due to Related Parties, Current | $ (2.0) | $ (2.0) | $ (2.0) | |||||||
|
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Variable Interest Entity [Line Items] | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 15.8 | $ 0.0 | $ 19.3 | $ 0.0 | |
Cash and cash equivalents | 73.7 | 73.7 | $ 352.6 | ||
Inventories | 1,933.6 | 1,933.6 | 317.4 | ||
Property, plant and equipment, net | 4,547.9 | 4,547.9 | 1,929.0 | ||
Accounts payable | (504.8) | (504.8) | (193.2) | ||
Noncontrolling interest | (325.3) | (325.3) | $ 0.0 | ||
SunCoke Middletown [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | 16.0 | 19.5 | |||
Cash and cash equivalents | 1.0 | 1.0 | |||
Inventories | 21.2 | 21.2 | |||
Property, plant and equipment, net | 309.2 | 309.2 | |||
Accounts payable | (5.6) | (5.6) | |||
Other Assets (Liabilities), Net | (1.2) | (1.2) | |||
Noncontrolling interest | $ (324.6) | $ (324.6) |
EARNINGS PER SHARE - Earnings Per Share Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations | $ (107.8) | $ 161.4 | $ (157.0) | $ 139.3 |
Income attributable to noncontrolling interest | 15.8 | 0.0 | 19.3 | 0.0 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (123.6) | 161.4 | (176.3) | 139.3 |
Income (loss) from discontinued operations, net of tax | 0.3 | 0.6 | (0.3) | 0.6 |
Net income (loss) attributable to Cliffs shareholders | $ (123.9) | $ 160.8 | $ (176.0) | $ 138.7 |
Weighted average number of shares: | ||||
Basic | 399,088 | 275,769 | 348,302 | 282,647 |
Convertible Senior Notes | 0 | 6,700 | 0 | 6,900 |
Employee stock plans | 0 | 3,000 | 0 | 4,100 |
Diluted | 399,088 | 285,479 | 348,302 | 293,580 |
Earnings (loss) per common share attributable to Cliffs shareholders - basic: | ||||
Continuing operations (in dollars per share) | $ (0.31) | $ 0.59 | $ (0.51) | $ 0.49 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Earnings (Loss) per Common Share - Basic (in dollars per share) | (0.31) | 0.59 | (0.51) | 0.49 |
Earnings (loss) per common share attributable to Cliffs shareholders - diluted: | ||||
Continuing operations (in dollars per share) | (0.31) | 0.57 | (0.51) | 0.47 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Earnings (Loss) per Common Share - Diluted (in dollars per share) | $ (0.31) | $ 0.57 | $ (0.51) | $ 0.47 |
EARNINGS PER SHARE - Antidilutive Securities (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Convertible Debt Securities [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.0 | 0.0 | ||
Share-based Payment Arrangement [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.8 | 0.0 | 1.8 | 0.0 |
COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Estimated Project Capital Expenditures | $ 1,000.0 |
Total Project Expenditures, Excluding Capitalized Interest | 894.3 |
Capital Addition Purchase Commitments [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Capital Additions, Purchase Commitments | $ 92.2 |
COMMITMENTS AND CONTINGENCIES - Contingencies (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Loss Contingencies [Line Items] | ||
Environmental obligations | $ 41.4 | $ 2.0 |
Less current portion | 6.5 | 0.3 |
Long-term environmental obligations | 34.9 | $ 1.7 |
Hamilton Plant [Member] | ||
Loss Contingencies [Line Items] | ||
Environmental obligations | 0.7 | |
Ashland Works Coke Plant [Member] | ||
Loss Contingencies [Line Items] | ||
Environmental obligations | $ 1.4 |
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