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Annual report pursuant to Section 13 and 15(d)

STOCK COMPENSATION PLANS (Tables)

v2.4.1.9
STOCK COMPENSATION PLANS (Tables)
 12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] Ìý
Stock Incentive Plans Disclosure [Table Text Block]
Following is a summary of our performance share award agreements currently outstanding:
Performance
Share
Plan Year
Performance Shares Granted
Ìý
Estimated Forfeitures
Ìý
Expected to Vest
Ìý
Grant Date
Ìý
Performance Period
2014
400,000

Ìý
40,911

Ìý
359,089

Ìý
November 17, 2014
Ìý
8/7/2014 - 12/31/2017
2014
283,530

Ìý
24,380

Ìý
259,150

Ìý
July 29, 2014
Ìý
1/1/2014 - 12/31/2016
2014
124,630

Ìý
21,098

Ìý
103,532

Ìý
May 12, 2014
Ìý
1/1/2014 - 12/31/2016
2014
385,585

Ìý
120,299

Ìý
265,286

Ìý
February 10, 2014
Ìý
1/1/2014 - 12/31/2016
Incentive Compensation and Other Benefit Plans for Employees and Directors [Table Text Block]
For the last three years, Equity Grant shares have been awarded to elected or re-elected nonemployee Directors as follows:
Year of Grant
Ìý
Unrestricted Equity Grant Shares
Ìý
Restricted Equity Grant Shares
Ìý
Deferred Equity Grant Shares
2012
Ìý
1,498

Ìý
8,988

Ìý
2,996

2013
Ìý
3,985

Ìý
31,506

Ìý
7,970

2014
Ìý
—

Ìý
73,635

Ìý
—

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]
The following table summarizes the share-based compensation expense that we recorded for continuing operations in 2014, 2013 and 2012:
Ìý
(InÌýMillions,ÌýexceptÌý per
shareÌýamounts)
Ìý
2014
Ìý
2013
Ìý
2012
Cost of goods sold and operating expenses
$
7.8

Ìý
$
6.3

Ìý
$
4.0

Selling, general and administrative expenses
15.9

Ìý
14.8

Ìý
16.6

Reduction of operating income from continuing operations before income
ÌýÌýÌýÌýtaxes and equity income (loss) from ventures
23.7

Ìý
21.1

Ìý
20.6

Income tax benefit
(8.3
)
Ìý
(7.4
)
Ìý
(7.2
)
Reduction of net income attributable to Cliffs shareholders
$
15.4

Ìý
$
13.7

Ìý
$
13.4

Reduction of earnings per share attributable to Cliffs shareholders:

Ìý

Ìý

Basic
$
0.10

Ìý
$
0.09

Ìý
$
0.09

Diluted
$
0.10

Ìý
$
0.08

Ìý
$
0.09

Schedule Of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions
The following assumptions were utilized to estimate the fair value for the 2014 performance share grants:
Grant Date
Ìý
Grant Date Market Price
Ìý
Average Expected Term (Years)
Ìý
Expected Volatility
Ìý
Risk-Free Interest Rate
Ìý
Dividend Yield
Ìý
Fair Value
Ìý
Fair Value (Percent of Grant Date Market Price)
FebruaryÌý10, 2014
Ìý
$
20.58

Ìý
2.89
Ìý
54.0%
Ìý
0.54%
Ìý
2.92%
Ìý
$
22.21

Ìý
107.92%
MayÌý12, 2014
Ìý
$
17.54

Ìý
2.61
Ìý
54.0%
Ìý
0.54%
Ìý
2.92%
Ìý
$
18.93

Ìý
107.92%
JulyÌý29, 2014
Ìý
$
17.62

Ìý
2.42
Ìý
51.3%
Ìý
0.83%
Ìý
3.40%
Ìý
$
19.02

Ìý
107.92%
NovemberÌý17, 2014
Ìý
$
10.85

Ìý
3.12
Ìý
52.9%
Ìý
1.18%
Ìý
4.30%
Ìý
$
10.61

Ìý
97.79%
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]
Restricted share units, restricted stock awards, deferred stock allocation and performance share activity under our long-term equity plans and Directors’ Plans are as follows:
Ìý
2014
Ìý
2013
Ìý
2012
Ìý
Shares
Ìý
Shares
Ìý
Shares
Stock options:
Ìý
Ìý
Ìý
Ìý
Ìý
Outstanding at beginning of year
—

Ìý
—

Ìý
—

Granted during the year
250,000

Ìý
—

Ìý
—

Vested
—

Ìý
—

Ìý
—

Forfeited/canceled
—

Ìý
—

Ìý
—

Outstanding at end of year
250,000

Ìý
—

Ìý
—

Restricted awards:
Ìý
Ìý
Ìý
Ìý
Ìý
Outstanding and restricted at beginning of year
586,084

Ìý
393,787

Ìý
425,166

Granted during the year
531,030

Ìý
396,844

Ìý
151,869

Vested
(423,822
)
Ìý
(118,973
)
Ìý
(161,741
)
Forfeited/canceled
(170,116
)
Ìý
(85,574
)
Ìý
(21,507
)
Outstanding and restricted at end of year
523,176

Ìý
586,084

Ìý
393,787

Performance shares:

Ìý

Ìý

Outstanding at beginning of year
1,040,453

Ìý
772,484

Ìý
877,435

Granted during the year 1
1,233,685

Ìý
806,271

Ìý
501,346

Issued 2
(796,624
)
Ìý
(289,054
)
Ìý
(574,518
)
Forfeited/canceled
(405,138
)
Ìý
(249,248
)
Ìý
(31,779
)
Outstanding at end of year
1,072,376

Ìý
1,040,453

Ìý
772,484

Vested or expected to vest as of
ÌýÌýÌýÌýDecemberÌý31, 2014
1,723,728

Ìý
Ìý
Ìý
Ìý
Directors’ retainer and voluntary shares:

Ìý

Ìý

Outstanding at beginning of year
7,329

Ìý
2,880

Ìý
2,611

Granted during the year
2,281

Ìý
8,136

Ìý
1,823

Forfeited/canceled
—

Ìý
(1,521
)
Ìý
—

Vested
(9,610
)
Ìý
(2,166
)
Ìý
(1,554
)
Outstanding at end of year
—

Ìý
7,329

Ìý
2,880

Reserved for future grants or awards at end
ÌýÌýÌýÌýof year:
Ìý
Ìý
Ìý
Ìý
Ìý
Employee plans
6,222,434

Ìý
Ìý
Ìý
Ìý
Directors’ plans
225,955

Ìý
Ìý
Ìý
Ìý
Total
6,448,389

Ìý
Ìý
Ìý
Ìý
ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý
1
The shares granted in 2013 and 2012 include 54,051 shares and 191,506 shares, respectively, related to the 23% and 50% payouts associated with the prior-year pool as actual payout exceeded target.
2
For the year ended DecemberÌý31, 2014, the shares vesting on DecemberÌý31, 2013 were valued as of February 10, 2014, and the shares vesting due to the change in a majority of our Board of Directors that triggered the acceleration of vesting and payout of outstanding equity grants under our equity plans on August 6, 2014, were valued as of that date.
For the years ended DecemberÌý31, 2013 andÌýDecemberÌý31, 2012, the shares vested on December 31, 2012 and December 31, 2011, respectively, and were valued on FebruaryÌý21, 2013 and FebruaryÌý13, 2012, respectively.
Employee Stock Awards Outstanding [Table Text Block]
A summary of our outstanding share-based awards as of DecemberÌý31, 2014 is shown below:
Ìý
Shares
Ìý
Weighted
Average
GrantÌýDate
Fair Value
Outstanding, beginning of year
1,633,866

Ìý

$40.20

Granted
2,016,996

Ìý

$16.67

Vested
(1,230,056
)
Ìý

$38.48

Forfeited/expired
(575,254
)
Ìý

$24.76

Outstanding, end of year
1,845,552

Ìý

$16.55