Ohio
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34-1464672
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification No.)
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200 Public Square, Cleveland, Ohio
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44114-2315
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(Address of Principal Executive Offices)
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(Zip Code)
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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TABLE OF CONTENTS
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Page Number
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DEFINITIONS
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PART I - FINANCIAL INFORMATION
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Item 1.
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Financial Statements
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Statements of Unaudited Condensed Consolidated Financial Position as of March 31, 2019 and December 31, 2018
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Statements of Unaudited Condensed Consolidated Operations for the Three Months Ended March 31, 2019 and 2018
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Statements of Unaudited Condensed Consolidated Comprehensive Loss for the Three Months Ended March 31, 2019 and 2018
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Statements of Unaudited Condensed Consolidated Cash Flows for the Three Months Ended March 31, 2019 and 2018
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Statements of Unaudited Condensed Consolidated Changes in Equity for the Three Months Ended March 31, 2019 and 2018
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Notes to Unaudited Condensed Consolidated Financial Statements
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Item 2.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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Item 4.
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Controls and Procedures
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PART II - OTHER INFORMATION
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Item 1.
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Legal Proceedings
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Item 1A.
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Risk Factors
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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Item 4.
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Mine Safety Disclosures
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Item 5.
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Other Information
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Item 6.
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Exhibits
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Signatures
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Abbreviation or acronym
|
|
Term
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A&R 2015 Equity Plan
|
|
Cliffs Natural Resources Inc. Amended and Restated 2015 Equity and Incentive Compensation Plan
|
ABL Facility
|
|
Amended and Restated Syndicated Facility Agreement by and among Bank of America, N.A., as Administrative Agent and Australian Security Trustee, the Lenders that are parties hereto, as the Lenders, Cleveland-Cliffs Inc., as Parent and a Borrower, and the Subsidiaries of Parent party hereto, as Borrowers dated as of March 30, 2015, and Amended and Restated as of February 28, 2018
|
Adjusted EBITDA
|
|
EBITDA excluding certain items such as extinguishment/restructuring of debt, impacts of discontinued operations, foreign currency exchange remeasurement, impairment of other long-lived assets, severance and intersegment corporate allocations of SG&A costs
|
ArcelorMittal
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ArcelorMittal (as the parent company of ArcelorMittal Mines Canada, ArcelorMittal USA and ArcelorMittal Dofasco, as well as many other subsidiaries)
|
AMT
|
|
Alternative Minimum Tax
|
ASC
|
|
Accounting Standards Codification
|
ASU
|
|
Accounting Standards Update
|
CECL
|
|
Credit Expected Credit Losses model
|
Compensation Committee
|
|
Compensation and Organization Committee of the Board of Directors
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Dodd-Frank Act
|
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Dodd-Frank Wall Street Reform and Consumer Protection Act
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DR-grade
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Direct Reduction-grade
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EBITDA
|
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Earnings before interest, taxes, depreciation and amortization
|
Empire
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Empire Iron Mining Partnership
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Exchange Act
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Securities Exchange Act of 1934, as amended
|
FASB
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Financial Accounting Standards Board
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Fe
|
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Iron
|
FMSH Act
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U.S. Federal Mine Safety and Health Act 1977, as amended
|
GAAP
|
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Accounting principles generally accepted in the United States
|
HBI
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Hot briquetted iron
|
Hibbing
|
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Hibbing Taconite Company, an unincorporated joint venture
|
Hot-rolled coil steel price
|
|
Estimated average annual daily market price for hot-rolled coil steel
|
Long ton
|
|
2,240 pounds
|
LTVSMC
|
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LTV Steel Mining Company
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Metric ton
|
|
2,205 pounds
|
MMBtu
|
|
Million British Thermal Units
|
MSHA
|
|
U.S. Mine Safety and Health Administration
|
Monitor
|
|
FTI Consulting Canada Inc.
|
Net ton
|
|
2,000 pounds
|
Northshore
|
|
Northshore Mining Company
|
OPEB
|
|
Other postretirement employment benefits
|
Platts 62% Price
|
|
Platts IODEX 62% Fe Fines CFR North China
|
PPI
|
|
Producer Price Index
|
SEC
|
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U.S. Securities and Exchange Commission
|
SG&A
|
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Selling, general and administrative
|
Tilden
|
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Tilden Mining Company L.C.
|
Topic 606
|
|
ASC Topic 606, Revenue from Contracts with Customers
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Topic 815
|
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ASC Topic 815, Derivatives and Hedging
|
TSR
|
|
Total shareholder return
|
United Taconite
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United Taconite LLC
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U.S.
|
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United States of America
|
U.S. Steel
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U.S Steel Corporation and all subsidiaries
|
Item 1.
|
Financial Statements
|
|
(In Millions)
|
||||||
|
March 31,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
||||
CURRENT ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
430.2
|
|
|
$
|
823.2
|
|
Accounts receivable, net
|
20.1
|
|
|
226.7
|
|
||
Inventories
|
312.7
|
|
|
87.9
|
|
||
Supplies and other inventories
|
97.3
|
|
|
93.2
|
|
||
Derivative assets
|
107.4
|
|
|
91.5
|
|
||
Income tax receivable, current
|
117.3
|
|
|
117.3
|
|
||
Other current assets
|
41.0
|
|
|
39.8
|
|
||
TOTAL CURRENT ASSETS
|
1,126.0
|
|
|
1,479.6
|
|
||
PROPERTY, PLANT AND EQUIPMENT, NET
|
1,410.3
|
|
|
1,286.0
|
|
||
OTHER ASSETS
|
|
|
|
||||
Deposits for property, plant and equipment
|
68.3
|
|
|
83.0
|
|
||
Income tax receivable, non-current
|
121.3
|
|
|
121.3
|
|
||
Deferred income taxes
|
466.6
|
|
|
464.8
|
|
||
Other non-current assets
|
113.8
|
|
|
94.9
|
|
||
TOTAL OTHER ASSETS
|
770.0
|
|
|
764.0
|
|
||
TOTAL ASSETS
|
$
|
3,306.3
|
|
|
$
|
3,529.6
|
|
|
(In Millions, Except Per Share Amounts)
|
||||||
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
REVENUES FROM PRODUCT SALES AND SERVICES
|
|
|
|
||||
Product
|
$
|
145.4
|
|
|
$
|
169.2
|
|
Freight
|
11.6
|
|
|
10.8
|
|
||
|
157.0
|
|
|
180.0
|
|
||
COST OF GOODS SOLD
|
(126.1
|
)
|
|
(118.5
|
)
|
||
SALES MARGIN
|
30.9
|
|
|
61.5
|
|
||
OTHER OPERATING EXPENSE
|
|
|
|
||||
Selling, general and administrative expenses
|
(28.1
|
)
|
|
(25.1
|
)
|
||
Miscellaneous – net
|
(3.6
|
)
|
|
(6.1
|
)
|
||
|
(31.7
|
)
|
|
(31.2
|
)
|
||
OPERATING INCOME (LOSS)
|
(0.8
|
)
|
|
30.3
|
|
||
OTHER INCOME (EXPENSE)
|
|
|
|
||||
Interest expense, net
|
(25.1
|
)
|
|
(32.4
|
)
|
||
Other non-operating income
|
0.1
|
|
|
4.4
|
|
||
|
(25.0
|
)
|
|
(28.0
|
)
|
||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
(25.8
|
)
|
|
2.3
|
|
||
INCOME TAX BENEFIT (EXPENSE)
|
3.7
|
|
|
(15.7
|
)
|
||
LOSS FROM CONTINUING OPERATIONS
|
(22.1
|
)
|
|
(13.4
|
)
|
||
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX
|
—
|
|
|
(70.9
|
)
|
||
NET LOSS
|
$
|
(22.1
|
)
|
|
$
|
(84.3
|
)
|
|
|
|
|
||||
LOSS PER COMMON SHARE – BASIC
|
|
|
|
||||
Continuing operations
|
$
|
(0.08
|
)
|
|
$
|
(0.05
|
)
|
Discontinued operations
|
—
|
|
|
(0.24
|
)
|
||
|
$
|
(0.08
|
)
|
|
$
|
(0.29
|
)
|
LOSS PER COMMON SHARE – DILUTED
|
|
|
|
||||
Continuing operations
|
$
|
(0.08
|
)
|
|
$
|
(0.05
|
)
|
Discontinued operations
|
—
|
|
|
(0.24
|
)
|
||
|
$
|
(0.08
|
)
|
|
$
|
(0.29
|
)
|
AVERAGE NUMBER OF SHARES (IN THOUSANDS)
|
|
|
|
||||
Basic
|
289,525
|
|
|
297,266
|
|
||
Diluted
|
289,525
|
|
|
297,266
|
|
|
(In Millions)
|
||||||
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
NET LOSS
|
$
|
(22.1
|
)
|
|
$
|
(84.3
|
)
|
OTHER COMPREHENSIVE INCOME
|
|
|
|
||||
Changes in pension and other post-retirement benefits, net of tax
|
5.7
|
|
|
6.7
|
|
||
Changes in foreign currency translation
|
—
|
|
|
0.7
|
|
||
Changes in derivative financial instruments, net of tax
|
2.7
|
|
|
0.3
|
|
||
OTHER COMPREHENSIVE INCOME
|
8.4
|
|
|
7.7
|
|
||
TOTAL COMPREHENSIVE LOSS
|
$
|
(13.7
|
)
|
|
$
|
(76.6
|
)
|
|
(In Millions)
|
||||||
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
||||
Net loss
|
$
|
(22.1
|
)
|
|
$
|
(84.3
|
)
|
Adjustments to reconcile net loss to net cash used by operating activities:
|
|
|
|
||||
Depreciation, depletion and amortization
|
19.9
|
|
|
23.9
|
|
||
Gain on derivatives
|
(5.7
|
)
|
|
(40.8
|
)
|
||
Other
|
9.8
|
|
|
25.9
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Receivables and other assets
|
199.9
|
|
|
196.3
|
|
||
Inventories
|
(224.8
|
)
|
|
(193.0
|
)
|
||
Payables, accrued expenses and other liabilities
|
(88.2
|
)
|
|
(70.9
|
)
|
||
Net cash used by operating activities
|
(111.2
|
)
|
|
(142.9
|
)
|
||
INVESTING ACTIVITIES
|
|
|
|
||||
Purchase of property, plant and equipment
|
(132.7
|
)
|
|
(12.4
|
)
|
||
Deposits for property, plant and equipment
|
(1.4
|
)
|
|
(59.0
|
)
|
||
Other investing activities
|
8.5
|
|
|
—
|
|
||
Net cash used by investing activities
|
(125.6
|
)
|
|
(71.4
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
||||
Repurchase of common shares
|
(124.3
|
)
|
|
—
|
|
||
Dividends paid
|
(14.8
|
)
|
|
—
|
|
||
Repurchase of debt
|
(10.3
|
)
|
|
—
|
|
||
Other financing activities
|
(8.4
|
)
|
|
(7.0
|
)
|
||
Net cash used by financing activities
|
(157.8
|
)
|
|
(7.0
|
)
|
||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
—
|
|
|
0.2
|
|
||
DECREASE IN CASH AND CASH EQUIVALENTS, INCLUDING CASH CLASSIFIED WITHIN OTHER CURRENT ASSETS RELATED TO DISCONTINUED OPERATIONS
|
(394.6
|
)
|
|
(221.1
|
)
|
||
LESS: DECREASE IN CASH AND CASH EQUIVALENTS FROM DISCONTINUED OPERATIONS, CLASSIFIED WITHIN OTHER CURRENT ASSETS
|
(1.6
|
)
|
|
—
|
|
||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(393.0
|
)
|
|
(221.1
|
)
|
||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
823.2
|
|
|
978.3
|
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
430.2
|
|
|
$
|
757.2
|
|
|
(In Millions)
|
|||||||||||||||||||||||||
|
Number
of Common Shares Outstanding |
|
Common
Shares |
|
Capital in
Excess of Par Value of Shares |
|
Retained
Deficit |
|
Common
Shares in Treasury |
|
Accumulated
Other Comprehensive Loss |
|
Total
|
|||||||||||||
December 31, 2018
|
292.6
|
|
|
$
|
37.7
|
|
|
$
|
3,916.7
|
|
|
$
|
(3,060.2
|
)
|
|
$
|
(186.1
|
)
|
|
$
|
(283.9
|
)
|
|
$
|
424.2
|
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(22.1
|
)
|
|
—
|
|
|
—
|
|
|
(22.1
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.4
|
|
|
8.4
|
|
||||||
Total comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
(13.7
|
)
|
||||||||||||
Stock and other incentive plans
|
1.7
|
|
|
—
|
|
|
(56.5
|
)
|
|
—
|
|
|
46.5
|
|
|
—
|
|
|
(10.0
|
)
|
||||||
Common stock repurchases
|
(11.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(124.3
|
)
|
|
—
|
|
|
(124.3
|
)
|
||||||
Common stock dividends ($0.05 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(14.5
|
)
|
|
—
|
|
|
—
|
|
|
(14.5
|
)
|
||||||
March 31, 2019
|
282.8
|
|
|
$
|
37.7
|
|
|
$
|
3,860.2
|
|
|
$
|
(3,096.8
|
)
|
|
$
|
(263.9
|
)
|
|
$
|
(275.5
|
)
|
|
$
|
261.7
|
|
|
(In Millions)
|
|||||||||||||||||||||||||||||
|
Number
of Common Shares Outstanding |
|
Common
Shares |
|
Capital in
Excess of Par Value of Shares |
|
Retained
Deficit |
|
Common
Shares in Treasury |
|
Accumulated
Other Comprehensive Loss |
|
Non-Controlling Interest
|
|
Total
|
|||||||||||||||
December 31, 2017
|
297.4
|
|
|
$
|
37.7
|
|
|
$
|
3,933.9
|
|
|
$
|
(4,207.3
|
)
|
|
$
|
(169.6
|
)
|
|
$
|
(39.0
|
)
|
|
$
|
0.2
|
|
|
$
|
(444.1
|
)
|
Adoption of accounting standard
|
—
|
|
|
—
|
|
|
—
|
|
|
34.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34.0
|
|
|||||||
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(84.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(84.3
|
)
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.7
|
|
|
—
|
|
|
7.7
|
|
|||||||
Total comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(76.6
|
)
|
||||||||||||||
Stock and other incentive plans
|
0.3
|
|
|
—
|
|
|
(15.8
|
)
|
|
—
|
|
|
17.7
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|||||||
March 31, 2018
|
297.7
|
|
|
$
|
37.7
|
|
|
$
|
3,918.1
|
|
|
$
|
(4,257.6
|
)
|
|
$
|
(151.9
|
)
|
|
$
|
(31.3
|
)
|
|
$
|
0.2
|
|
|
$
|
(484.8
|
)
|
Name
|
|
Location
|
|
Business Segment
|
|
Status of Operations
|
Northshore
|
|
Minnesota
|
|
Mining and Pelletizing
|
|
Active
|
United Taconite
|
|
Minnesota
|
|
Mining and Pelletizing
|
|
Active
|
Tilden
|
|
Michigan
|
|
Mining and Pelletizing
|
|
Active
|
Empire
|
|
Michigan
|
|
Mining and Pelletizing
|
|
Indefinitely Idled
|
Toledo HBI
|
|
Ohio
|
|
Metallics
|
|
Construction Stage
|
|
(In Millions)
|
||||||
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Net loss
|
$
|
(22.1
|
)
|
|
$
|
(84.3
|
)
|
Less:
|
|
|
|
||||
Interest expense, net
|
(25.1
|
)
|
|
(33.5
|
)
|
||
Income tax benefit (expense)
|
3.7
|
|
|
(15.7
|
)
|
||
Depreciation, depletion and amortization
|
(19.9
|
)
|
|
(23.9
|
)
|
||
EBITDA
|
$
|
19.2
|
|
|
$
|
(11.2
|
)
|
Less:
|
|
|
|
||||
Foreign exchange remeasurement
|
$
|
0.1
|
|
|
$
|
(0.4
|
)
|
Impact of discontinued operations
|
—
|
|
|
(63.1
|
)
|
||
Loss on extinguishment of debt
|
(0.3
|
)
|
|
—
|
|
||
Severance costs
|
(1.7
|
)
|
|
—
|
|
||
Adjusted EBITDA
|
$
|
21.1
|
|
|
$
|
52.3
|
|
|
|
|
|
||||
EBITDA:
|
|
|
|
||||
Mining and Pelletizing
|
$
|
42.8
|
|
|
$
|
72.5
|
|
Metallics
|
(0.8
|
)
|
|
(0.3
|
)
|
||
Corporate and Other (including discontinued operations)
|
(22.8
|
)
|
|
(83.4
|
)
|
||
Total EBITDA
|
$
|
19.2
|
|
|
$
|
(11.2
|
)
|
|
|
|
|
||||
Adjusted EBITDA:
|
|
|
|
||||
Mining and Pelletizing
|
$
|
47.5
|
|
|
$
|
77.1
|
|
Metallics
|
(0.8
|
)
|
|
(0.3
|
)
|
||
Corporate
|
(25.6
|
)
|
|
(24.5
|
)
|
||
Total Adjusted EBITDA
|
$
|
21.1
|
|
|
$
|
52.3
|
|
|
|
(In Millions)
|
||||||
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Finished goods
|
|
$
|
287.7
|
|
|
$
|
77.8
|
|
Work-in-process
|
|
25.0
|
|
|
10.1
|
|
||
Total inventories
|
|
$
|
312.7
|
|
|
$
|
87.9
|
|
|
(In Millions)
|
||||||
|
March 31,
2019 |
|
December 31,
2018 |
||||
Land rights and mineral rights
|
$
|
549.6
|
|
|
$
|
549.6
|
|
Office and information technology
|
70.5
|
|
|
70.0
|
|
||
Buildings
|
87.4
|
|
|
87.2
|
|
||
Mining equipment
|
568.4
|
|
|
548.5
|
|
||
Processing equipment
|
660.9
|
|
|
645.8
|
|
||
Electric power facilities
|
58.7
|
|
|
58.7
|
|
||
Land improvements
|
23.8
|
|
|
23.8
|
|
||
Asset retirement obligation
|
14.8
|
|
|
14.8
|
|
||
Other
|
25.5
|
|
|
25.2
|
|
||
Construction-in-progress
|
392.0
|
|
|
284.8
|
|
||
|
2,451.6
|
|
|
2,308.4
|
|
||
Allowance for depreciation and depletion
|
(1,041.3
|
)
|
|
(1,022.4
|
)
|
||
|
$
|
1,410.3
|
|
|
$
|
1,286.0
|
|
(In Millions)
|
||||||||||||||||||
March 31, 2019
|
||||||||||||||||||
Debt Instrument
|
|
Annual Effective
Interest Rate
|
|
Total Principal Amount
|
|
Debt Issuance Costs
|
|
Unamortized Discounts
|
|
Total Debt
|
||||||||
Secured Notes:
|
|
|
|
|
|
|
|
|
|
|
||||||||
$400 Million 4.875% 2024 Senior Notes
|
|
5.00%
|
|
$
|
400.0
|
|
|
$
|
(5.5
|
)
|
|
$
|
(2.1
|
)
|
|
$
|
392.4
|
|
Unsecured Notes:
|
|
|
|
|
|
|
|
|
|
|
||||||||
$700 Million 4.875% 2021 Senior Notes
|
|
4.89%
|
|
114.0
|
|
|
(0.2
|
)
|
|
—
|
|
|
113.8
|
|
||||
$316.25 Million 1.50% 2025 Convertible Senior Notes
|
|
6.26%
|
|
316.3
|
|
|
(5.3
|
)
|
|
(73.0
|
)
|
|
238.0
|
|
||||
$1.075 Billion 5.75% 2025 Senior Notes
|
|
6.01%
|
|
1,073.3
|
|
|
(9.5
|
)
|
|
(14.1
|
)
|
|
1,049.7
|
|
||||
$800 Million 6.25% 2040 Senior Notes
|
|
6.34%
|
|
298.4
|
|
|
(2.2
|
)
|
|
(3.3
|
)
|
|
292.9
|
|
||||
ABL Facility
|
|
N/A
|
|
450.0
|
|
|
N/A
|
|
|
N/A
|
|
|
—
|
|
||||
Fair Value Adjustment to Interest Rate Hedge
|
|
|
|
|
|
|
|
|
|
0.2
|
|
|||||||
Long-term debt
|
|
|
|
|
|
|
|
|
|
$
|
2,087.0
|
|
(In Millions)
|
||||||||||||||||||
December 31, 2018
|
||||||||||||||||||
Debt Instrument
|
|
Annual Effective
Interest Rate
|
|
Total Principal Amount
|
|
Debt Issuance Costs
|
|
Unamortized Discounts
|
|
Total Debt
|
||||||||
Secured Notes:
|
|
|
|
|
|
|
|
|
|
|
||||||||
$400 Million 4.875% 2024 Senior Notes
|
|
5.00%
|
|
$
|
400.0
|
|
|
$
|
(5.7
|
)
|
|
$
|
(2.2
|
)
|
|
$
|
392.1
|
|
Unsecured Notes:
|
|
|
|
|
|
|
|
|
|
|
||||||||
$700 Million 4.875% 2021 Senior Notes
|
|
4.89%
|
|
124.0
|
|
|
(0.2
|
)
|
|
—
|
|
|
123.8
|
|
||||
$316.25 Million 1.50% 2025 Convertible Senior Notes
|
|
6.26%
|
|
316.3
|
|
|
(5.5
|
)
|
|
(75.6
|
)
|
|
235.2
|
|
||||
$1.075 Billion 5.75% 2025 Senior Notes
|
|
6.01%
|
|
1,073.3
|
|
|
(9.9
|
)
|
|
(14.6
|
)
|
|
1,048.8
|
|
||||
$800 Million 6.25% 2040 Senior Notes
|
|
6.34%
|
|
298.4
|
|
|
(2.3
|
)
|
|
(3.3
|
)
|
|
292.8
|
|
||||
ABL Facility
|
|
N/A
|
|
450.0
|
|
|
N/A
|
|
|
N/A
|
|
|
—
|
|
||||
Fair Value Adjustment to Interest Rate Hedge
|
|
|
|
|
|
|
|
|
|
0.2
|
|
|||||||
Long-term debt
|
|
|
|
|
|
|
|
|
|
$
|
2,092.9
|
|
|
(In Millions)
|
||||||
|
Three Months Ended
March 31, 2019
|
||||||
Debt Instrument
|
Debt Extinguished
|
|
Loss on Extinguishment
|
||||
$700 Million 4.875% 2021 Senior Notes
|
$
|
10.0
|
|
|
$
|
0.3
|
|
|
$
|
10.0
|
|
|
$
|
0.3
|
|
|
|
(In Millions)
|
||
|
|
Maturities of Debt
|
||
2019
|
|
$
|
—
|
|
2020
|
|
—
|
|
|
2021
|
|
114.0
|
|
|
2022
|
|
—
|
|
|
2023
|
|
—
|
|
|
2024
|
|
400.0
|
|
|
2025 and thereafter
|
|
1,688.0
|
|
|
Total maturities of debt
|
|
$
|
2,202.0
|
|
|
(In Millions)
|
||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||
Available borrowing base on ABL Facility
1
|
$
|
305.4
|
|
|
$
|
323.7
|
|
Letter of credit obligations and other commitments
2
|
(65.4
|
)
|
|
(55.0
|
)
|
||
Borrowing capacity available
3
|
$
|
240.0
|
|
|
$
|
268.7
|
|
|
|
|
|
||||
1
The ABL Facility has a maximum borrowing base of $450 million, 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, environmental obligations and certain Metallics' contracts.
|
|||||||
3
As of March 31, 2019 and December 31, 2018, we had no loans drawn under the ABL Facility.
|
|
(In Millions)
|
||||||||||||||
|
March 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
|
$
|
—
|
|
|
$
|
357.6
|
|
|
$
|
—
|
|
|
$
|
357.6
|
|
Derivative assets
|
—
|
|
|
0.7
|
|
|
106.7
|
|
|
107.4
|
|
||||
Total
|
$
|
—
|
|
|
$
|
358.3
|
|
|
$
|
106.7
|
|
|
$
|
465.0
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
—
|
|
|
$
|
0.7
|
|
|
$
|
9.8
|
|
|
$
|
10.5
|
|
Total
|
$
|
—
|
|
|
$
|
0.7
|
|
|
$
|
9.8
|
|
|
$
|
10.5
|
|
|
(In Millions)
|
||||||||||||||
|
December 31, 2018
|
||||||||||||||
|
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
|
$
|
0.8
|
|
|
$
|
542.6
|
|
|
$
|
—
|
|
|
$
|
543.4
|
|
Derivative assets
|
—
|
|
|
0.1
|
|
|
91.4
|
|
|
91.5
|
|
||||
Total
|
$
|
0.8
|
|
|
$
|
542.7
|
|
|
$
|
91.4
|
|
|
$
|
634.9
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
—
|
|
|
$
|
3.7
|
|
|
$
|
—
|
|
|
$
|
3.7
|
|
Total
|
$
|
—
|
|
|
$
|
3.7
|
|
|
$
|
—
|
|
|
$
|
3.7
|
|
|
(In Millions)
|
||||||
|
Level 3 Liabilities
|
||||||
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Beginning balance
|
$
|
—
|
|
|
$
|
(1.7
|
)
|
Total losses included in earnings
|
(9.8
|
)
|
|
(0.5
|
)
|
||
Settlements
|
—
|
|
|
2.2
|
|
||
Ending balance - March 31
|
$
|
(9.8
|
)
|
|
$
|
—
|
|
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date
|
$
|
(9.8
|
)
|
|
$
|
—
|
|
|
(In Millions)
|
||||||
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Service cost
|
$
|
4.1
|
|
|
$
|
4.7
|
|
Interest cost
|
8.7
|
|
|
7.6
|
|
||
Expected return on plan assets
|
(13.6
|
)
|
|
(15.0
|
)
|
||
Amortization:
|
|
|
|
||||
Prior service costs
|
0.3
|
|
|
0.5
|
|
||
Net actuarial loss
|
5.9
|
|
|
5.3
|
|
||
Net periodic benefit cost
|
$
|
5.4
|
|
|
$
|
3.1
|
|
|
(In Millions)
|
||||||
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Service cost
|
$
|
0.4
|
|
|
$
|
0.5
|
|
Interest cost
|
2.3
|
|
|
2.1
|
|
||
Expected return on plan assets
|
(4.2
|
)
|
|
(4.6
|
)
|
||
Amortization:
|
|
|
|
||||
Prior service credits
|
(0.5
|
)
|
|
(0.8
|
)
|
||
Net actuarial loss
|
1.3
|
|
|
1.2
|
|
||
Net periodic benefit credit
|
$
|
(0.7
|
)
|
|
$
|
(1.6
|
)
|
Grant Date
|
|
Grant Date Market Price
|
|
Average Expected Term (Years)
|
|
Expected Volatility
|
|
Risk-Free Interest Rate
|
|
Dividend Yield
|
|
Fair Value
|
|
Fair Value (Percent of Grant Date Market Price)
|
||||
February 19, 2019
|
|
$
|
11.24
|
|
|
2.87
|
|
67.5%
|
|
2.55%
|
|
—%
|
|
$
|
18.31
|
|
|
162.90%
|
|
(In Millions)
|
||||||
|
March 31,
2019 |
|
December 31,
2018 |
||||
Environmental
|
$
|
2.4
|
|
|
$
|
2.5
|
|
Mine closure
1
|
174.9
|
|
|
172.4
|
|
||
Total environmental and mine closure obligations
|
177.3
|
|
|
174.9
|
|
||
Less current portion
|
2.9
|
|
|
2.9
|
|
||
Long-term environmental and mine closure obligations
|
$
|
174.4
|
|
|
$
|
172.0
|
|
|
|
|
|
||||
1
Includes our active operating mines, our indefinitely idled Empire mine and a closed mine formerly operating as LTVSMC.
|
|
|
(In Millions)
|
||||||||||||||||||||||
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||||||||||
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||
Derivative Instrument
|
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
||||||||
Derivatives designated as hedging instruments under ASC 815:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
|
Derivative assets
|
|
$
|
0.7
|
|
|
Derivative assets
|
|
$
|
0.1
|
|
|
Other current liabilities
|
|
$
|
0.7
|
|
|
Other current liabilities
|
|
$
|
3.7
|
|
Derivatives not designated as hedging instruments under ASC 815:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Customer supply agreement
|
|
Derivative assets
|
|
$
|
106.4
|
|
|
Derivative assets
|
|
$
|
89.3
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
Provisional pricing arrangements
|
|
Derivative assets
|
|
0.3
|
|
|
Derivative assets
|
|
2.1
|
|
|
Other current liabilities
|
|
9.8
|
|
|
|
|
—
|
|
||||
Total derivatives not designated as hedging instruments under ASC 815
|
|
|
|
$
|
106.7
|
|
|
|
|
$
|
91.4
|
|
|
|
|
$
|
9.8
|
|
|
|
|
$
|
—
|
|
Total derivatives
|
|
|
|
$
|
107.4
|
|
|
|
|
$
|
91.5
|
|
|
|
|
$
|
10.5
|
|
|
|
|
$
|
3.7
|
|
|
(In Millions)
|
||||||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||||||
|
Notional Amount
|
|
Unit of Measure
|
|
Varying Maturity Dates
|
|
Notional Amount
|
|
Unit of Measure
|
|
Varying Maturity Dates
|
Natural gas
|
4.0
|
|
MMBtu
|
|
April 2019 - February 2020
|
|
1.8
|
|
MMBtu
|
|
January 2019 - August 2019
|
Diesel
|
7.5
|
|
Gallons
|
|
April 2019 - December 2019
|
|
11.0
|
|
Gallons
|
|
January 2019 - December 2019
|
|
|
(In Millions)
|
||||||
|
|
Three Months Ended
March 31, |
||||||
|
|
2019
|
|
2018
|
||||
Net cash used by operating activities
|
|
|
|
|
||||
Asia Pacific Iron Ore
|
|
$
|
(0.8
|
)
|
|
$
|
(21.2
|
)
|
|
|
$
|
(0.8
|
)
|
|
$
|
(21.2
|
)
|
|
|
|
|
|
||||
Net cash provided (used) by investing activities
|
|
|
|
|
||||
Asia Pacific Iron Ore
|
|
$
|
0.1
|
|
|
$
|
(0.1
|
)
|
|
|
$
|
0.1
|
|
|
$
|
(0.1
|
)
|
|
|
(In Millions)
|
||||||
|
|
Three Months Ended
March 31, |
||||||
Loss from Discontinued Operations
|
|
2019
|
|
2018
|
||||
Revenues from product sales and services
|
|
$
|
—
|
|
|
$
|
59.0
|
|
Cost of goods sold and operating expenses
|
|
—
|
|
|
(124.1
|
)
|
||
Sales margin
|
|
—
|
|
|
(65.1
|
)
|
||
Other operating expense
|
|
(0.4
|
)
|
|
(2.5
|
)
|
||
Other expense
|
|
(0.1
|
)
|
|
(1.1
|
)
|
||
Impairment of long-lived assets
|
|
—
|
|
|
(2.6
|
)
|
||
Loss from discontinued operations, net of tax
|
|
$
|
(0.5
|
)
|
|
$
|
(71.3
|
)
|
|
(In Millions)
|
||||||||||
|
Postretirement Benefit Liability, net of tax
|
|
Derivative Financial Instruments, net of tax
|
|
Accumulated Other Comprehensive Loss
|
||||||
December 31, 2018
|
$
|
(281.1
|
)
|
|
$
|
(2.8
|
)
|
|
$
|
(283.9
|
)
|
Other comprehensive income before reclassifications
|
0.2
|
|
|
2.5
|
|
|
2.7
|
|
|||
Net loss reclassified from accumulated other comprehensive loss
|
5.5
|
|
|
0.2
|
|
|
5.7
|
|
|||
March 31, 2019
|
$
|
(275.4
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(275.5
|
)
|
|
(In Millions)
|
||||||||||||||
|
Postretirement Benefit Liability, net of tax
|
|
Foreign Currency Translation
|
|
Derivative Financial Instruments, net of tax
|
|
Accumulated Other Comprehensive Loss
|
||||||||
December 31, 2017
|
$
|
(263.9
|
)
|
|
$
|
225.4
|
|
|
$
|
(0.5
|
)
|
|
$
|
(39.0
|
)
|
Other comprehensive income before reclassifications
|
0.5
|
|
|
0.7
|
|
|
0.4
|
|
|
1.6
|
|
||||
Net loss (gain) reclassified from accumulated other comprehensive loss
|
6.2
|
|
|
—
|
|
|
(0.1
|
)
|
|
6.1
|
|
||||
March 31, 2018
|
$
|
(257.2
|
)
|
|
$
|
226.1
|
|
|
$
|
(0.2
|
)
|
|
$
|
(31.3
|
)
|
|
(In Millions)
|
||||||
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Capital additions
|
$
|
129.3
|
|
|
$
|
78.9
|
|
Less:
|
|
|
|
||||
Non-cash accruals
|
(11.5
|
)
|
|
7.5
|
|
||
Right-of-use assets – finance leases
|
15.1
|
|
|
—
|
|
||
Grants
|
(8.4
|
)
|
|
—
|
|
||
Cash paid for capital expenditures including deposits
|
$
|
134.1
|
|
|
$
|
71.4
|
|
|
|
|
|
Mine
|
|
Cleveland-Cliffs Inc.
|
|
ArcelorMittal
|
|
U.S. Steel
|
|||
Hibbing
|
|
23.0
|
%
|
|
62.3
|
%
|
|
14.7
|
%
|
|
(In Millions, Except Per Share Amounts)
|
||||||
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Loss from continuing operations
|
$
|
(22.1
|
)
|
|
$
|
(13.4
|
)
|
Loss from discontinued operations, net of tax
|
—
|
|
|
(70.9
|
)
|
||
Net loss
|
$
|
(22.1
|
)
|
|
$
|
(84.3
|
)
|
Weighted average number of shares:
|
|
|
|
||||
Basic
|
289.5
|
|
|
297.3
|
|
||
$316.25 million 1.50% 2025 Convertible Senior Notes
|
—
|
|
|
—
|
|
||
Employee stock plans
|
—
|
|
|
—
|
|
||
Diluted
|
289.5
|
|
|
297.3
|
|
||
Loss per common share - basic:
|
|
|
|
||||
Continuing operations
|
$
|
(0.08
|
)
|
|
$
|
(0.05
|
)
|
Discontinued operations
|
—
|
|
|
(0.24
|
)
|
||
|
$
|
(0.08
|
)
|
|
$
|
(0.29
|
)
|
Loss per common share - diluted:
|
|
|
|
||||
Continuing operations
|
$
|
(0.08
|
)
|
|
$
|
(0.05
|
)
|
Discontinued operations
|
—
|
|
|
(0.24
|
)
|
||
|
$
|
(0.08
|
)
|
|
$
|
(0.29
|
)
|
Unaudited Condensed Consolidating Statement of Financial Position
|
|||||||||||||||||||
As of March 31, 2019
|
|||||||||||||||||||
(In Millions)
|
|||||||||||||||||||
|
Cleveland-Cliffs Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
426.8
|
|
|
$
|
0.7
|
|
|
$
|
2.7
|
|
|
$
|
—
|
|
|
$
|
430.2
|
|
Accounts receivable, net
|
7.6
|
|
|
16.2
|
|
|
0.3
|
|
|
(4.0
|
)
|
|
20.1
|
|
|||||
Inventories
|
—
|
|
|
312.7
|
|
|
—
|
|
|
—
|
|
|
312.7
|
|
|||||
Supplies and other inventories
|
—
|
|
|
97.3
|
|
|
—
|
|
|
—
|
|
|
97.3
|
|
|||||
Derivative assets
|
0.7
|
|
|
106.7
|
|
|
—
|
|
|
—
|
|
|
107.4
|
|
|||||
Income tax receivable, current
|
117.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117.3
|
|
|||||
Other current assets
|
8.6
|
|
|
21.1
|
|
|
11.3
|
|
|
—
|
|
|
41.0
|
|
|||||
TOTAL CURRENT ASSETS
|
561.0
|
|
|
554.7
|
|
|
14.3
|
|
|
(4.0
|
)
|
|
1,126.0
|
|
|||||
PROPERTY, PLANT AND EQUIPMENT, NET
|
12.0
|
|
|
1,347.5
|
|
|
50.8
|
|
|
—
|
|
|
1,410.3
|
|
|||||
OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits for property, plant and equipment
|
—
|
|
|
53.6
|
|
|
14.7
|
|
|
—
|
|
|
68.3
|
|
|||||
Income tax receivable, non-current
|
117.2
|
|
|
4.1
|
|
|
—
|
|
|
—
|
|
|
121.3
|
|
|||||
Deferred income taxes
|
465.4
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
466.6
|
|
|||||
Investment in subsidiaries
|
1,448.5
|
|
|
30.1
|
|
|
—
|
|
|
(1,478.6
|
)
|
|
—
|
|
|||||
Long-term intercompany notes
|
—
|
|
|
—
|
|
|
121.3
|
|
|
(121.3
|
)
|
|
—
|
|
|||||
Other non-current assets
|
16.6
|
|
|
95.8
|
|
|
1.4
|
|
|
—
|
|
|
113.8
|
|
|||||
TOTAL OTHER ASSETS
|
2,047.7
|
|
|
183.6
|
|
|
138.6
|
|
|
(1,599.9
|
)
|
|
770.0
|
|
|||||
TOTAL ASSETS
|
$
|
2,620.7
|
|
|
$
|
2,085.8
|
|
|
$
|
203.7
|
|
|
$
|
(1,603.9
|
)
|
|
$
|
3,306.3
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
5.2
|
|
|
$
|
166.4
|
|
|
$
|
4.1
|
|
|
$
|
(4.0
|
)
|
|
$
|
171.7
|
|
Accrued employment costs
|
9.4
|
|
|
32.6
|
|
|
0.1
|
|
|
—
|
|
|
42.1
|
|
|||||
Accrued interest
|
23.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23.0
|
|
|||||
Partnership distribution payable
|
—
|
|
|
43.8
|
|
|
—
|
|
|
—
|
|
|
43.8
|
|
|||||
Other current liabilities
|
27.9
|
|
|
78.4
|
|
|
7.1
|
|
|
—
|
|
|
113.4
|
|
|||||
TOTAL CURRENT LIABILITIES
|
65.5
|
|
|
321.2
|
|
|
11.3
|
|
|
(4.0
|
)
|
|
394.0
|
|
|||||
PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES
|
64.1
|
|
|
414.8
|
|
|
(234.7
|
)
|
|
—
|
|
|
244.2
|
|
|||||
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
|
—
|
|
|
154.6
|
|
|
19.8
|
|
|
—
|
|
|
174.4
|
|
|||||
LONG-TERM DEBT
|
2,087.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,087.0
|
|
|||||
LONG-TERM INTERCOMPANY NOTES
|
121.3
|
|
|
—
|
|
|
—
|
|
|
(121.3
|
)
|
|
—
|
|
|||||
OTHER LIABILITIES
|
21.1
|
|
|
116.0
|
|
|
7.9
|
|
|
—
|
|
|
145.0
|
|
|||||
TOTAL LIABILITIES
|
2,359.0
|
|
|
1,006.6
|
|
|
(195.7
|
)
|
|
(125.3
|
)
|
|
3,044.6
|
|
|||||
EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
TOTAL EQUITY
|
261.7
|
|
|
1,079.2
|
|
|
399.4
|
|
|
(1,478.6
|
)
|
|
261.7
|
|
|||||
TOTAL LIABILITIES AND EQUITY
|
$
|
2,620.7
|
|
|
$
|
2,085.8
|
|
|
$
|
203.7
|
|
|
$
|
(1,603.9
|
)
|
|
$
|
3,306.3
|
|
Unaudited Condensed Consolidating Statement of Financial Position
|
|||||||||||||||||||
As of December 31, 2018
|
|||||||||||||||||||
(In Millions)
|
|||||||||||||||||||
|
Cleveland-Cliffs Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
819.8
|
|
|
$
|
0.7
|
|
|
$
|
2.7
|
|
|
$
|
—
|
|
|
$
|
823.2
|
|
Accounts receivable, net
|
9.2
|
|
|
221.3
|
|
|
0.3
|
|
|
(4.1
|
)
|
|
226.7
|
|
|||||
Inventories
|
—
|
|
|
87.9
|
|
|
—
|
|
|
—
|
|
|
87.9
|
|
|||||
Supplies and other inventories
|
—
|
|
|
93.2
|
|
|
—
|
|
|
—
|
|
|
93.2
|
|
|||||
Derivative assets
|
0.1
|
|
|
91.4
|
|
|
—
|
|
|
—
|
|
|
91.5
|
|
|||||
Income tax receivable, current
|
117.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117.3
|
|
|||||
Other current assets
|
10.0
|
|
|
16.9
|
|
|
12.9
|
|
|
—
|
|
|
39.8
|
|
|||||
TOTAL CURRENT ASSETS
|
956.4
|
|
|
511.4
|
|
|
15.9
|
|
|
(4.1
|
)
|
|
1,479.6
|
|
|||||
PROPERTY, PLANT AND EQUIPMENT, NET
|
13.3
|
|
|
1,221.9
|
|
|
50.8
|
|
|
—
|
|
|
1,286.0
|
|
|||||
OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits for property, plant and equipment
|
—
|
|
|
68.4
|
|
|
14.6
|
|
|
—
|
|
|
83.0
|
|
|||||
Income tax receivable, non-current
|
117.2
|
|
|
4.1
|
|
|
—
|
|
|
—
|
|
|
121.3
|
|
|||||
Deferred income taxes
|
463.6
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
464.8
|
|
|||||
Investment in subsidiaries
|
1,262.3
|
|
|
50.8
|
|
|
—
|
|
|
(1,313.1
|
)
|
|
—
|
|
|||||
Long-term intercompany notes
|
—
|
|
|
—
|
|
|
121.3
|
|
|
(121.3
|
)
|
|
—
|
|
|||||
Other non-current assets
|
8.0
|
|
|
85.4
|
|
|
1.5
|
|
|
—
|
|
|
94.9
|
|
|||||
TOTAL OTHER ASSETS
|
1,851.1
|
|
|
208.7
|
|
|
138.6
|
|
|
(1,434.4
|
)
|
|
764.0
|
|
|||||
TOTAL ASSETS
|
$
|
2,820.8
|
|
|
$
|
1,942.0
|
|
|
$
|
205.3
|
|
|
$
|
(1,438.5
|
)
|
|
$
|
3,529.6
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
5.3
|
|
|
$
|
181.4
|
|
|
$
|
4.2
|
|
|
$
|
(4.1
|
)
|
|
$
|
186.8
|
|
Accrued employment costs
|
28.5
|
|
|
45.4
|
|
|
0.1
|
|
|
—
|
|
|
74.0
|
|
|||||
Accrued interest
|
38.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38.4
|
|
|||||
Partnership distribution payable
|
—
|
|
|
43.5
|
|
|
—
|
|
|
—
|
|
|
43.5
|
|
|||||
Other current liabilities
|
30.6
|
|
|
86.7
|
|
|
8.2
|
|
|
—
|
|
|
125.5
|
|
|||||
TOTAL CURRENT LIABILITIES
|
102.8
|
|
|
357.0
|
|
|
12.5
|
|
|
(4.1
|
)
|
|
468.2
|
|
|||||
PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES
|
64.3
|
|
|
414.4
|
|
|
(230.0
|
)
|
|
—
|
|
|
248.7
|
|
|||||
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS
|
—
|
|
|
152.1
|
|
|
19.9
|
|
|
—
|
|
|
172.0
|
|
|||||
LONG-TERM DEBT
|
2,092.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,092.9
|
|
|||||
LONG-TERM INTERCOMPANY NOTES
|
121.3
|
|
|
—
|
|
|
—
|
|
|
(121.3
|
)
|
|
—
|
|
|||||
OTHER LIABILITIES
|
15.3
|
|
|
99.5
|
|
|
8.8
|
|
|
—
|
|
|
123.6
|
|
|||||
TOTAL LIABILITIES
|
2,396.6
|
|
|
1,023.0
|
|
|
(188.8
|
)
|
|
(125.4
|
)
|
|
3,105.4
|
|
|||||
EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
TOTAL EQUITY
|
424.2
|
|
|
919.0
|
|
|
394.1
|
|
|
(1,313.1
|
)
|
|
424.2
|
|
|||||
TOTAL LIABILITIES AND EQUITY
|
$
|
2,820.8
|
|
|
$
|
1,942.0
|
|
|
$
|
205.3
|
|
|
$
|
(1,438.5
|
)
|
|
$
|
3,529.6
|
|
Unaudited Condensed Consolidating Statement of Cash Flows
|
|||||||||||||||||||
For the Three Months Ended March 31, 2019
|
|||||||||||||||||||
(In Millions)
|
|||||||||||||||||||
|
Cleveland-Cliffs Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash used by operating activities
|
$
|
(71.6
|
)
|
|
$
|
(38.4
|
)
|
|
$
|
(1.2
|
)
|
|
$
|
—
|
|
|
$
|
(111.2
|
)
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase of property, plant and equipment
|
(0.3
|
)
|
|
(132.4
|
)
|
|
—
|
|
|
—
|
|
|
(132.7
|
)
|
|||||
Deposits for property, plant and equipment
|
—
|
|
|
(1.3
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(1.4
|
)
|
|||||
Intercompany investing
|
(157.6
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
158.0
|
|
|
—
|
|
|||||
Other investing activities
|
—
|
|
|
8.4
|
|
|
0.1
|
|
|
—
|
|
|
8.5
|
|
|||||
Net cash used by investing activities
|
(157.9
|
)
|
|
(125.7
|
)
|
|
—
|
|
|
158.0
|
|
|
(125.6
|
)
|
|||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase of common shares
|
(124.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(124.3
|
)
|
|||||
Dividends paid
|
(14.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14.8
|
)
|
|||||
Repurchase of debt
|
(10.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.3
|
)
|
|||||
Intercompany financing
|
—
|
|
|
157.5
|
|
|
0.5
|
|
|
(158.0
|
)
|
|
—
|
|
|||||
Other financing activities
|
(14.1
|
)
|
|
6.6
|
|
|
(0.9
|
)
|
|
—
|
|
|
(8.4
|
)
|
|||||
Net cash provided (used) by financing activities
|
(163.5
|
)
|
|
164.1
|
|
|
(0.4
|
)
|
|
(158.0
|
)
|
|
(157.8
|
)
|
|||||
DECREASE IN CASH AND CASH EQUIVALENTS, INCLUDING CASH CLASSIFIED WITHIN OTHER CURRENT ASSETS RELATED TO DISCONTINUED OPERATIONS
|
(393.0
|
)
|
|
—
|
|
|
(1.6
|
)
|
|
—
|
|
|
(394.6
|
)
|
|||||
LESS: DECREASE IN CASH AND CASH EQUIVALENTS FROM DISCONTINUED OPERATIONS, CLASSIFIED WITHIN OTHER CURRENT ASSETS
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
|
—
|
|
|
(1.6
|
)
|
|||||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(393.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(393.0
|
)
|
|||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
819.8
|
|
|
0.7
|
|
|
2.7
|
|
|
—
|
|
|
823.2
|
|
|||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
426.8
|
|
|
$
|
0.7
|
|
|
$
|
2.7
|
|
|
$
|
—
|
|
|
$
|
430.2
|
|
Unaudited Condensed Consolidating Statement of Cash Flows
|
|||||||||||||||||||
For the Three Months Ended March 31, 2018
|
|||||||||||||||||||
(In Millions)
|
|||||||||||||||||||
|
Cleveland-Cliffs Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash used by operating activities
|
$
|
(54.7
|
)
|
|
$
|
(64.7
|
)
|
|
$
|
(23.5
|
)
|
|
$
|
—
|
|
|
$
|
(142.9
|
)
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase of property, plant and equipment
|
—
|
|
|
(12.3
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(12.4
|
)
|
|||||
Deposits for property, plant and equipment
|
—
|
|
|
(54.4
|
)
|
|
(4.6
|
)
|
|
—
|
|
|
(59.0
|
)
|
|||||
Intercompany investing
|
(137.7
|
)
|
|
(4.8
|
)
|
|
—
|
|
|
142.5
|
|
|
—
|
|
|||||
Net cash used by investing activities
|
(137.7
|
)
|
|
(71.5
|
)
|
|
(4.7
|
)
|
|
142.5
|
|
|
(71.4
|
)
|
|||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Intercompany financing
|
—
|
|
|
135.6
|
|
|
6.9
|
|
|
(142.5
|
)
|
|
—
|
|
|||||
Other financing activities
|
(2.9
|
)
|
|
(0.5
|
)
|
|
(3.6
|
)
|
|
—
|
|
|
(7.0
|
)
|
|||||
Net cash provided (used) by financing activities
|
(2.9
|
)
|
|
135.1
|
|
|
3.3
|
|
|
(142.5
|
)
|
|
(7.0
|
)
|
|||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|||||
DECREASE IN CASH AND CASH EQUIVALENTS, INCLUDING CASH CLASSIFIED WITHIN OTHER CURRENT ASSETS RELATED TO DISCONTINUED OPERATIONS
|
(195.3
|
)
|
|
(1.1
|
)
|
|
(24.7
|
)
|
|
—
|
|
|
(221.1
|
)
|
|||||
LESS: DECREASE IN CASH AND CASH EQUIVALENTS FROM DISCONTINUED OPERATIONS, CLASSIFIED WITHIN OTHER CURRENT ASSETS
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(195.3
|
)
|
|
(1.1
|
)
|
|
(24.7
|
)
|
|
—
|
|
|
(221.1
|
)
|
|||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
948.9
|
|
|
2.1
|
|
|
27.3
|
|
|
—
|
|
|
978.3
|
|
|||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
753.6
|
|
|
$
|
1.0
|
|
|
$
|
2.6
|
|
|
$
|
—
|
|
|
$
|
757.2
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
(In Millions)
|
||||||||||||||||||||||
|
|
|
|
Changes due to:
|
|
|
||||||||||||||||||
|
|
Three Months Ended
March 31, |
|
Revenue
and cost rate
|
|
Sales volume
|
|
Freight
|
|
Total change
|
||||||||||||||
|
|
2019
|
|
2018
|
|
|
|
|
||||||||||||||||
Revenues from product sales and services
|
|
$
|
157.0
|
|
|
$
|
180.0
|
|
|
$
|
(17.5
|
)
|
|
$
|
(6.3
|
)
|
|
$
|
0.8
|
|
|
$
|
(23.0
|
)
|
Cost of goods sold
|
|
(126.1
|
)
|
|
(118.5
|
)
|
|
(11.1
|
)
|
|
4.3
|
|
|
(0.8
|
)
|
|
(7.6
|
)
|
||||||
Sales margin
|
|
$
|
30.9
|
|
|
$
|
61.5
|
|
|
$
|
(28.6
|
)
|
|
$
|
(2.0
|
)
|
|
$
|
—
|
|
|
$
|
(30.6
|
)
|
|
|
Three Months Ended
March 31, |
|
|
|
|
|||||||||
Per Ton Information
|
|
2019
|
|
2018
|
|
Difference
|
|
Percent change
|
|||||||
Realized product revenue rate
1
|
|
$
|
93.81
|
|
|
$
|
105.03
|
|
|
$
|
(11.22
|
)
|
|
(10.7
|
)%
|
Cash cost of goods sold rate
1,2
|
|
61.94
|
|
|
57.05
|
|
|
4.89
|
|
|
8.6
|
%
|
|||
Depreciation, depletion & amortization
|
|
11.94
|
|
|
9.81
|
|
|
2.13
|
|
|
21.7
|
%
|
|||
Total cost of goods sold
|
|
73.88
|
|
|
66.86
|
|
|
7.02
|
|
|
10.5
|
%
|
|||
Sales margin
|
|
$
|
19.93
|
|
|
$
|
38.17
|
|
|
$
|
(18.24
|
)
|
|
(47.8
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Sales tons
3
(In thousands)
|
|
1,550
|
|
|
1,611
|
|
|
|
|
|
|||||
Production tons
3
(In thousands)
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
5,679
|
|
|
5,890
|
|
|
|
|
|
|||||
Cliffs’ share of total
|
|
4,401
|
|
|
4,500
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||
1
Excludes revenues and expenses related to domestic freight, which are offsetting and have no impact on sales margin.
|
|||||||||||||||
2
Cash cost of goods sold rate is a non-GAAP financial measure. Refer to "Non-GAAP Reconciliation" for reconciliation in dollars back to our consolidated financial statements.
|
|||||||||||||||
3
Tons are long tons.
|
•
|
Changes in hot-rolled coil steel pricing, which had a negative effect on the realized revenue rate of $19 per long ton, or $30 million, during the first three months of 2019 compared to the first three months of 2018. The imposition of the Section 232 actions increased the first quarter of 2018 actual pricing and our full-year estimates for hot-rolled coil steel in 2018. Additionally, due to current market trends, there has been a slight decrease in the full-year estimates for 2019.
|
•
|
This decrease was offset partially by higher full-year estimated Platts 62% Price as of March 31, 2019, compared to the prior-year period's full-year estimated Platts 62% Price as of March 31, 2018, which positively affected the realized revenue rate by $8 per long ton, or $12 million.
|
|
(In Millions)
|
||||||||||
|
Three Months Ended
March 31, |
||||||||||
|
2019
|
|
2018
|
|
Variance
|
||||||
Income tax benefit (expense)
|
$
|
3.7
|
|
|
$
|
(15.7
|
)
|
|
$
|
19.4
|
|
Effective tax rate
|
14.3
|
%
|
|
682.7
|
%
|
|
(668.4
|
)%
|
|
(In Millions)
|
||||||
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Net loss
|
$
|
(22.1
|
)
|
|
$
|
(84.3
|
)
|
Less:
|
|
|
|
||||
Interest expense, net
|
(25.1
|
)
|
|
(33.5
|
)
|
||
Income tax benefit (expense)
|
3.7
|
|
|
(15.7
|
)
|
||
Depreciation, depletion and amortization
|
(19.9
|
)
|
|
(23.9
|
)
|
||
EBITDA
|
$
|
19.2
|
|
|
$
|
(11.2
|
)
|
Less:
|
|
|
|
||||
Foreign exchange remeasurement
|
$
|
0.1
|
|
|
$
|
(0.4
|
)
|
Impact of discontinued operations
|
—
|
|
|
(63.1
|
)
|
||
Loss on extinguishment of debt
|
(0.3
|
)
|
|
—
|
|
||
Severance costs
|
(1.7
|
)
|
|
—
|
|
||
Adjusted EBITDA
|
$
|
21.1
|
|
|
$
|
52.3
|
|
|
|
|
|
||||
EBITDA:
|
|
|
|
||||
Mining and Pelletizing
|
$
|
42.8
|
|
|
$
|
72.5
|
|
Metallics
|
(0.8
|
)
|
|
(0.3
|
)
|
||
Corporate and Other (including discontinued operations)
|
(22.8
|
)
|
|
(83.4
|
)
|
||
Total EBITDA
|
$
|
19.2
|
|
|
$
|
(11.2
|
)
|
|
|
|
|
||||
Adjusted EBITDA:
|
|
|
|
||||
Mining and Pelletizing
|
$
|
47.5
|
|
|
$
|
77.1
|
|
Metallics
|
(0.8
|
)
|
|
(0.3
|
)
|
||
Corporate
|
(25.6
|
)
|
|
(24.5
|
)
|
||
Total Adjusted EBITDA
|
$
|
21.1
|
|
|
$
|
52.3
|
|
|
(In Millions)
|
||||||
|
March 31,
2019 |
|
December 31,
2018 |
||||
Cash and cash equivalents
|
$
|
430.2
|
|
|
$
|
823.2
|
|
Cash and cash equivalents from discontinued operations, included within
other current assets
|
10.8
|
|
|
12.4
|
|
||
Total cash and cash equivalents
|
$
|
441.0
|
|
|
$
|
835.6
|
|
|
|
|
|
||||
Available borrowing base on ABL Facility
1
|
$
|
305.4
|
|
|
$
|
323.7
|
|
ABL Facility loans drawn
|
—
|
|
|
—
|
|
||
Letter of credit obligations and other commitments
|
(65.4
|
)
|
|
(55.0
|
)
|
||
Borrowing capacity available
|
$
|
240.0
|
|
|
$
|
268.7
|
|
|
|
|
|
||||
1
The ABL Facility has a maximum borrowing base of $450 million, determined by applying customary advance rates to eligible accounts receivable, inventory and certain mobile equipment.
|
|
|
2019 Outlook Summary
|
Per Long Ton Information
|
Mining and Pelletizing
|
|
Cost of goods sold rate
|
$74 - $79
|
|
Less:
|
|
|
Freight expense rate
1
|
$8
|
|
Depreciation, depletion & amortization rate
|
$4
|
|
Cash cost of goods sold rate
|
$62 - $67
|
|
|
|
|
Sales volume (million long tons)
2
|
20.0
|
|
Production volume (million long tons)
|
20.0
|
|
|
||
1
Freight has an offsetting amount in revenue and has no impact on sales margin.
|
||
2
This includes approximately 500,000 long tons of intercompany sales volumes to Cliffs' HBI facility.
|
•
|
uncertainty and weaknesses in global economic conditions, including downward pressure on prices caused by oversupply or imported products, reduced market demand and risks related to U.S. government actions with respect to Section 232 of the Trade Expansion Act (as amended by the Trade Act of 1974), the United States-Mexico-Canada Agreement and/or other trade agreements, treaties or policies;
|
•
|
continued volatility of iron ore and steel prices and other trends, which may impact the price-adjustment calculations under our sales contracts;
|
•
|
our ability to successfully diversify our product mix and add new customers beyond our traditional blast furnace clientele;
|
•
|
our ability to cost-effectively achieve planned production rates or levels, including at our HBI plant;
|
•
|
our ability to successfully identify and consummate any strategic investments or development projects, including our HBI plant;
|
•
|
the impact of our customers reducing their steel production due to increased market share of steel produced using other methods or lighter-weight steel alternatives;
|
•
|
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, tons mined, transportation, mine-closure obligations, environmental liabilities, employee-benefit costs and other risks of the mining industry;
|
•
|
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 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 ability to continue to pay cash dividends, and the amount and timing of any cash dividends;
|
•
|
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 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 and other unexpected events;
|
•
|
adverse changes in interest rates and tax laws; and
|
•
|
the potential existence of significant deficiencies or material weakness in our internal control over financial reporting.
|
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) Purchased
1
|
|
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
2
|
||||||
January 1 - 31, 2019
|
|
19,882
|
|
|
$
|
7.53
|
|
|
18,400
|
|
|
$
|
152,512,897
|
|
February 1 - 28, 2019
|
|
6,016,477
|
|
|
$
|
11.37
|
|
|
4,773,252
|
|
|
$
|
98,087,097
|
|
March 1 - 31, 2019
|
|
6,756,243
|
|
|
$
|
10.29
|
|
|
6,756,243
|
|
|
$
|
28,595,269
|
|
|
|
12,792,602
|
|
|
$
|
10.79
|
|
|
11,547,895
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
1
Includes 1,244,707 shares that were delivered to us to satisfy tax withholding obligations due upon the vesting or payment of stock awards.
|
||||||||||||||
2
On November 26, 2018, we announced a new share repurchase program which was authorized by the Board of Directors, pursuant to which we may buy back our outstanding common shares in the open market or in private negotiated transactions up to a maximum of $200 million. Subsequent to the period indicated above, on April 25, 2019, we announced that the Board of Directors authorized the repurchase of additional common shares up to a maximum of $100 million. When combined with the additional amount of share repurchase authorization, we now have share repurchase authorization remaining of up to a maximum of approximately $129 million. The program may be executed through open-market purchases, including through Rule 10b5-1 agreements, or privately negotiated transactions. The authorization is effective until December 31, 2019.
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
Exhibit
Number
|
|
Exhibit
|
|
* Severance Agreement and Release, by and between Timothy K. Flanagan and Cleveland-Cliffs Inc., effective February 12, 2019 (filed herewith)
|
|
|
* Form of Director and Officer Indemnification Agreement between Cleveland-Cliffs Inc. and Directors and Officers (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 April 25, 2019 (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 Koci as of April 25, 2019 (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 April 25, 2019 (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 Koci, Executive Vice President, Chief Financial Officer of Cleveland-Cliffs Inc., as of April 25, 2019 (filed herewith)
|
|
|
Mine Safety Disclosures (filed herewith)
|
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
CLEVELAND-CLIFFS INC.
|
||||
|
|
|
|
|
|||
|
|
|
By:
|
|
/s/ R. Christopher Cebula
|
||
|
|
|
|
|
Name:
|
|
R. Christopher Cebula
|
|
|
|
|
|
Title:
|
|
Vice President, Corporate Controller & Chief Accounting Officer
|
|
|
|
|
|
|
|
|
Date:
|
April 25, 2019
|
|
|
|
|
|
|
1.
|
Cash payments equal to One Million Six Hundred Ninety-Six Thousand and 00/100 Dollars ($1,696,000), which is equal to twenty-four (24) months Base Pay ($424,000 * 2 = $848,000) plus two times an additional amount that represents an annual incentive bonus payable at target ($424,000 * 100% * 2 = $848,000). The cash payments shall be made in three equal installments of Five Hundred Sixty-Five Thousand Three Hundred Thirty-Three and 33/100 Dollars ($565,333.33)
less
appropriate federal, State of Ohio and local withholdings and deductions. The first installment shall be paid within thirty (30) days after the Effective Date. The second installment shall be paid on the one-year anniversary of the Effective Date. The third installment shall be paid on the two-year anniversary of the Effective Date.
|
2.
|
Provided that the Employee properly and timely completes and submits all of the necessary documentation relating to the receipt of COBRA coverage for medical, dental and vision benefits, the
|
3.
|
Employee shall be entitled to vest in the performance share (“PSU”) awards (including applicable dividend equivalent rights that would have been paid on the earned PSUs had the earned PSUs been issued and outstanding Common Shares on the record date for the dividend or distribution) held by him on the date hereof and listed on Schedule I based on actual performance through the entire applicable performance period of each such award, in each case with the number of shares earned prorated by multiplying (1) the number of shares earned, without regard to this sentence, by (2) the quotient of (i) the number of full months in the applicable performance period through the Termination Date, over (ii) the number of full months in such performance period; with the number of shares so earned to be paid out in the manner and at the time (but not prior to the Effective Date) specified by the terms of each such award.
|
4.
|
Employee shall be entitled to vest in the restricted stock unit (“RSU”) awards (including applicable dividend equivalent rights that would have been paid on the RSUs had the RSUs been issued and outstanding Common Shares on the record date for the dividend or distribution ) held by him on the date hereof and listed on Schedule I, with the number of shares earned in the case of each such award prorated by multiplying (1) the number of shares earned, without regard to this sentence, by (2) the quotient of (i) the number of full months in the applicable vesting period through the Termination Date, over (ii) the number of full months in such vesting period; with the number of shares so earned to be paid out in the manner and at the time (but not prior to the Effective Date) specified in Schedule I.
|
5.
|
Employee shall be entitled to vest in the performance cash awards held by him on the date hereof and listed on Schedule I, with the amount of cash earned in the case of each such award prorated by multiplying (1) the number of cash earned, without regard to this sentence, by (2) the quotient of (i) the number of full months in the applicable vesting period through the Termination Date, over (ii) the number of full months in such vesting period; with the amount of cash so earned to be paid out in the manner and at the time (but not prior to the Effective Date) specified by the terms of each such award.
|
6.
|
Company provided C-suite executive-level outplacement services through a provider selected in the reasonable discretion of the Company.
|
7.
|
Company provided financial planning services through The Ayco Company, L.P., under the same terms and conditions as Employee enjoyed while employed by the Company through April 15, 2021.
|
8.
|
Employee shall continue to be covered by any provision for indemnification by the Company in effect on the date of the execution of this Agreement. In addition, the Company shall continue to maintain D&O coverage that covers past executives to the same extent that it covers present executives. Finally, in the event of a change in control in which the Company is not the survivor, the Company shall use its reasonable best efforts to require as part of such transaction that the surviving company provide indemnification and D&O coverage that covers the past executives of the Company.
|
9.
|
As provided in the Company’s 2012 Non-Qualified Deferred Compensation Plan (the “NQDC Plan”), by September 2, 2019, the Company shall pay to Employee the full amount of his balance in the NQDC Plan, in a single lump sum, less applicable tax withholdings.
|
10.
|
As provided in the Company’s Supplemental Retirement Benefit Plan (the “SERP”), by September 2, 2019, the Company shall pay to Employee the full amount of his balance in the SERP, in a single lump sum, less applicable tax withholdings.
|
•
|
Employee has the sole right and exclusive authority to execute this Agreement.
|
•
|
The Company is not obligated to pay, and will not pay, to Employee any Payment or Benefits until this Agreement and the Release have become effective.
|
•
|
Employee executes this Agreement knowingly and voluntarily, in order to induce Company to provide the Payments and Benefits.
|
•
|
Employee has not sold, assigned, transferred, conveyed or otherwise disposed of any of the claims, demands, obligations or causes of action referred to in this Agreement.
|
•
|
No other person or entity has an interest in the claims, demands, obligations or causes of action referred to in this Agreement.
|
•
|
The Payments and Benefits that Employee will receive in exchange for executing this Agreement and the Release are in addition to anything of value to which Employee is already entitled.
|
•
|
The Payments and Benefits provided for in this Agreement are the only consideration that Employee ever will receive from the Company or any Released Parties (as defined below) for any and all claims, demands, obligations or causes of action released by this Agreement and the Release.
|
•
|
The Payments and Benefits provided for in this Agreement are not intended to be provided in addition to any payments or benefits that now may be due or in the future become due or payable to Employee under the Worker Adjustment and Retraining Notification (“WARN”) Act (if applicable). Therefore, if WARN Act payments are or become due to Employee, any Payment and Benefits made under this Agreement in excess of one month’s Base Pay, up to the full amount necessary to satisfy such obligation, shall be treated as having been paid in satisfaction of any such obligation, and the rest of the Payments and Benefits shall be treated as having been given in exchange for the other covenants, agreements and obligations of this Agreement and the Release.
|
•
|
This Agreement and its terms shall not be construed as an admission of any liability whatsoever on the part of the Company or any other Released Parties described in this Agreement, by which/whom any liability is and always has been expressly denied.
|
•
|
With the payments contemplated by this Agreement, the Company will have paid Employee for all vacation and any other paid time off accrued through the Termination Date with the exception of whatever Employee is entitled to receive as a retiree of the Company.
|
•
|
Cleveland-Cliffs Inc.;
|
•
|
Northshore Mining Company;
|
•
|
Silver Bay Power Company;
|
•
|
Tilden Mining Company LC;
|
•
|
Empire Iron Mining Partnership;
|
•
|
Cliffs Mining Company;
|
•
|
Hibbing Taconite Company Joint Venture;
|
•
|
United Taconite LLC;
|
•
|
The Cleveland-Cliffs Iron Company;
|
•
|
Cliffs Mining Services Company;
|
•
|
Lake Superior & Ishpeming Railroad Company;
|
•
|
Cliffs International Management Company LLC;
|
•
|
Cliffs Sales Company;
|
•
|
IronUnits, LLC;
|
•
|
All affiliates of Cleveland-Cliffs Inc. not already listed above, including any corporation or other entity which is controlled by or under common control with Cleveland-Cliffs Inc., or which is in the same affiliated service group or otherwise required to be aggregated with Cleveland-Cliffs Inc. under Sections 414 or 1563 of the Internal Revenue Code;
|
•
|
All current or former owners, officers, directors, shareholders, members, employees, managers, agents, attorneys, partners and insurers of the above entities; and
|
•
|
The predecessors, successors, and assigns of the above entities and individuals and the spouses, children, and family members of the individuals.
|
•
|
The federal Civil Rights Acts of 1866, 1871, 1964 and 1991 and all similar state civil rights statutes;
|
•
|
The Employee Retirement Income Security Act of 1974;
|
•
|
Unpaid wages, salary, bonuses (including but not limited to any bonus or payment under the 2018 and 2019 Executive Management Performance Incentive Plans), commissions, vacation or other employee benefits;
|
•
|
Any claims for change in control payments or benefits under any agreement, including without limitation that certain 2016 Change in Control Severance Agreement between Employee and the Company dated August 7, 2016.
|
•
|
Claims for Payments or Benefits under this Agreement including without limitation any claim for indemnification coverage provided under Section I.B.8.; or
|
•
|
Claims for benefits under any pension plan or welfare plan of the Company; or
|
•
|
Claims arising out of acts or practices which occur after the execution of this Agreement.
|
|
|
CLEVELAND-CLIFFS INC.
|
|
|
/s/ Maurice D. Harapiak
|
|
|
Executive Vice President, Chief Human Resources & Administration Officer
|
|
|
|
|
|
|
Date: March 4, 2019
|
|
/s/ Timothy K. Flanagan
|
|
|
Timothy K. Flanagan
|
Grant Date
|
Type of Award
|
Number of Shares or Amount at time of Grant (subject to performance where applicable and proration as detailed in Section I.B of this Agreement)
|
Vesting Date/Incentive Period
|
2/21/2017
|
RSU
|
24,265
|
12/31/2019 (Paid by September 2, 2019 on prorated basis)
|
2/21/2017
|
PSU
|
24,265
|
1/1/2017 - 12/31/2019
|
2/21/2017
|
Performance Cash
|
$238,000
|
1/1/2017 - 12/31/2019
|
2/21/2018
|
RSU
|
32,773
|
12/31/2020 (Paid by September 2, 2019 on prorated basis)
|
2/21/2018
|
PSU
|
32,773
|
1/1/2018 - 12/31/2020
|
2/21/2018
|
Performance Cash
|
$245,140
|
1/1/2018 - 12/31/2020
|
•
|
Employee has the sole right and exclusive authority to execute this Release.
|
•
|
The Company is not obligated to pay, and will not pay, to Employee any Payment or Benefits under the Severance Agreement until this Release has become effective.
|
•
|
Employee executes this Release knowingly and voluntarily, in order to induce Company to provide the Payments and Benefits under the Severance Agreement.
|
•
|
Employee has not sold, assigned, transferred, conveyed or otherwise disposed of any of the claims, demands, obligations or causes of action referred to in this Release.
|
•
|
No other person or entity has an interest in the claims, demands, obligations or causes of action referred to in this Release.
|
•
|
The Payments and Benefits that Employee will receive under the Severance Agreement in exchange for executing this Release are in addition to anything of value to which Employee is already entitled.
|
•
|
The Payments and Benefits provided for in the Severance Agreement are the only consideration that Employee ever will receive from the Company or any Released Parties (as defined below) for any and all claims, demands, obligations or causes of action released by this Release.
|
•
|
The Payments and Benefits provided for in the Severance Agreement are not intended to be provided in addition to any payments or benefits that now may be due or in the future become due or payable to Employee under the Worker Adjustment and Retraining Notification (“WARN”) Act (if applicable). Therefore, if WARN Act payments are or become due to Employee, any Payment and Benefits made under the Severance Agreement in excess of one month’s Base Pay (as defined in the Severance Agreement), up to the full amount necessary to satisfy such obligation, shall be treated as having been paid in satisfaction of any such obligation, and the rest of the Payments and Benefits under the Severance Agreement shall be treated as having been given in exchange for the other covenants, agreements and obligations of this Release.
|
•
|
This Release and its terms shall not be construed as an admission of any liability whatsoever on the part of the Company or any other Released Parties described in this Release, by which/whom any liability is and always has been expressly denied.
|
•
|
With the payments contemplated by the Severance Agreement, the Company will have paid Employee for all vacation and any other paid time off accrued through the Termination Date.
|
•
|
Cleveland-Cliffs Inc.;
|
•
|
Northshore Mining Company;
|
•
|
Silver Bay Power Company;
|
•
|
Tilden Mining Company LC;
|
•
|
Empire Iron Mining Partnership;
|
•
|
Cliffs Mining Company;
|
•
|
Hibbing Taconite Company Joint Venture;
|
•
|
United Taconite LLC;
|
•
|
The Cleveland-Cliffs Iron Company;
|
•
|
Cliffs Mining Services Company;
|
•
|
Lake Superior & Ishpeming Railroad Company;
|
•
|
Cliffs International Management Company LLC;
|
•
|
Cliffs Sales Company;
|
•
|
IronUnits, LLC;
|
•
|
All affiliates of Cleveland-Cliffs Inc. not already listed above, including any corporation or other entity which is controlled by or under common control with Cleveland-Cliffs Inc., or which is in the same affiliated service group or otherwise required to be aggregated with Cleveland-Cliffs Inc. under Sections 414 or 1563 of the Internal Revenue Code;
|
•
|
All current or former owners, officers, directors, shareholders, members, employees, managers, agents, attorneys, partners and insurers of the above entities; and
|
•
|
The predecessors, successors, and assigns of the above entities and individuals and the spouses, children, and family members of the individuals.
|
•
|
The federal Civil Rights Acts of 1866, 1871, 1964 and 1991 and all similar state civil rights statutes;
|
•
|
The Employee Retirement Income Security Act of 1974;
|
•
|
Unpaid wages, salary, bonuses (including but not limited to any bonus or payment under the 2018 and 2019 Executive Management Performance Incentive Plans), commissions, vacation or other employee benefits;
|
•
|
Any claims for change in control payments or benefits under any agreement, including without limitation that certain 2016 Change in Control Severance Agreement between Employee and the Company dated August 7, 2016.
|
•
|
Claims for Payments or Benefits under the Severance Agreement; or
|
•
|
Claims for benefits under any pension plan or welfare plan of the Company (including any other plan or program covered by the Employee Retirement Income Security Act of 1974); or
|
•
|
Claims arising out of acts, omissions, or practices which occur after the execution of this Release.
|
V.
|
TIME TO CONSIDER AND CANCEL RELEASE; EFFECTIVE DATE
|
Date: March 4, 2019
|
|
|
/s/ Timothy K. Flanagan
|
|
|
|
Timothy K. Flanagan
|
|
|
|
|
STATE OF OHIO
|
)
|
|
|
|
)
|
SS.
|
|
COUNTY OF CUYAHOGA
|
)
|
|
|
|
|
|
|
On this 4
th
day of March, 2019, before me personally appeared Timothy K. Flanagan, to me known to be the person described in and who executed this Severance Agreement and acknowledged that he/she executed the same as his/her free act and deed.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the County and State aforesaid, the day and year first above written.
|
|||
|
|
|
/s/ Sheila Ann Maio
|
|
|
|
Notary Public
|
My Commission Expires:
|
|
|
|
October 17, 2020
|
|
|
|
CLEVELAND-CLIFFS INC.
200 Public Square, Suite 3300
Cleveland, Ohio 44114
|
|
|
|
By:
|
|
|
Name:
|
|
Title
|
|
|
[INDEMNITEE]
[Address]
|
|
|
|
[Indemnitee]
|
|
STATE OF OHIO
|
)
|
|
|
|
|
)
|
SS
|
|
|
COUNTY OF
|
)
|
|
|
|
|
|
|
|
|
|
|
[Indemnitee Name]
|
|
|
|
|
|
|
|
|
|
|
|
[Indemnitee Name]
|
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:
|
April 25, 2019
|
|
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:
|
April 25, 2019
|
|
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:
|
|
April 25, 2019
|
|
|
|
|
|
|
|
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:
|
|
April 25, 2019
|
|
|
|
|
|
|
|
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 initiated 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 March 31, 2019
|
|||||||||||||||||||||||
|
|
|
(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 Initiated During Period
|
|
Legal Actions Resolved During Period
|
|||||||||
Tilden / 2000422
|
Iron Ore
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
197,041
|
|
|
4
|
|
(2)
|
3
|
|
|
3
|
|
Empire / 2001012
|
Iron Ore
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Northshore Plant / 2100831
|
Iron Ore
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,020
|
|
|
5
|
|
(3)
|
—
|
|
|
3
|
|
|
Northshore Mine / 2100209
|
Iron Ore
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
363
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Hibbing / 2101600
|
Iron Ore
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,056
|
|
|
3
|
|
(4)
|
1
|
|
|
2
|
|
|
United Taconite Plant / 2103404
|
Iron Ore
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
138,053
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
United Taconite Mine / 2103403
|
Iron Ore
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,012
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(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
March 31, 2019
.
|
(2)
|
This number consists of 4 pending legal actions related to contests of proposed penalties referenced in Subpart C of FMSH Act's procedural rules.
|
(3)
|
This number consists of 1 pending legal action related to the contest of proposed penalties referenced in Subpart C 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 3 pending legal actions related to contests of proposed penalties referenced in Subpart C of FMSH Act's procedural rules.
|