Investments in Affiliates

12 Months Ended

Dec. 31, 2014

Equity Method Investments and Joint Ventures [Abstract]

Investments in Affiliates

Investments in Affiliates

The Company has investments in several businesses accounted for using the equity method of accounting. The investees and equity ownership percentages are presented below:

	Equity Ownership %
Combined Metals of Chicago, LLC	40.0%
Delaco Processing, LLC	49.0%
Double Eagle Steel Coating Company (a)	50.0%
Magnetation LLC	49.9%
Rockport Roll Shop LLC	50.0%
Spartan Steel Coating, LLC	48.0%

(a) Double Eagle Steel Coating Company (“DESCCO”) is a joint venture between United States Steel Corporation (“US Steel”) and AK Steel that was acquired as part of the Dearborn acquisition. See Note 10 for information on a dispute with US Steel regarding DESCCO.

The Company’s share of income (loss) related to Magnetation LLC (“Magnetation”) was included in other income (expense) and totaled $(15.2), $(4.9) and $7.7 for 2014, 2013 and 2012, respectively. The Company’s share of income from the remaining investees is included in cost of products sold since those investees are part of the Company’s integrated operations. Such income totaled $11.7, $8.1 and $7.4 in 2014, 2013 and 2012, respectively. As of December 31, 2014, the Company’s carrying cost of its investment in Spartan Steel exceeded its share of the underlying equity in net assets by $15.0. This difference is being amortized and is included in cost of products sold.

Summarized financial statement data for all investees is presented below. The financial results for the acquired joint ventures are only included for the period since the acquisition. The Company is required to report this information for 2014 and 2013 as a result of the comparative results of the investees to the Company. Although not previously required, 2012 amounts have been disclosed for comparison.

	2014		2013		2012
Revenue	$	386.1	$	293.9	$	297.9
Gross profit	93.2		103.7		92.6
Net income	10.8		20.1		40.8

	2014		2013
Current assets	$	211.8	$	279.9
Noncurrent assets	879.1		440.4
Current liabilities	157.1		58.5
Noncurrent liabilities	516.6		397.4

The Company regularly transacts business with its equity investees.  The following relates to the Company’s transactions with equity investees for the years indicated:

	2014		2013		2012
Sales to equity investees	$	93.4	$	71.6	$	60.4
Purchases from equity investees	67.7		12.5		11.8

The following is the Company’s outstanding receivables and payables with equity investees as of the end of the year indicated:

	2014		2013
Accounts receivable from equity investees	$	2.5	$	4.0
Accounts payable to equity investees	10.9		0.9

Magnetation

Magnetation utilizes advanced magnetic separation technology to recover iron ore from existing stockpiles of previously-mined material, such as tailings basins. Through a pellet purchase agreement, AK Steel has the right to purchase all of the pellets produced by Magnetations’s iron ore pelletizing plant and an obligation to purchase a portion of those pellets. The pelletizing plant began operations in September 2014. During 2014, AK Steel contributed $100.0 of capital to Magnetation, completing its total required investment of $297.5. AK Steel has no legal or contractual obligation to provide further financing to Magnetation beyond the amount mentioned above. As of December 31, 2014, the Company’s carrying cost of the investment exceeded its share of the underlying equity in net assets of Magnetation, recorded using historical carrying amounts, by $118.0. This difference is being amortized through other income (expense) and its amortization is included in the Company’s share of income (loss) amounts above.