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Annual report pursuant to Section 13 and 15(d)

STOCK COMPENSATION PLANS (Tables)

v3.10.0.1
STOCK COMPENSATION PLANS (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] Ìý
Approved Grants Equity Plans [Table Text Block]
Following is a summary of approved grants by the Compensation Committee:
Grant Year
Ìý
Vesting Date
Ìý
Plan Issued Under
Ìý
Restricted Stock Units Granted
Ìý
Performance Shares Granted
2018
Ìý
12/31/2020
Ìý
A&R 2015 Equity Plan
Ìý
685,599

Ìý
675,599

2017
Ìý
12/31/2019
Ìý
A&R 2015 Equity Plan
Ìý
532,358

Ìý
249,106

2017
Ìý
12/31/2019
Ìý
Amended 2015 Equity Plan
Ìý
553,725

Ìý
553,725

2016
Ìý
12/31/2018
Ìý
2015 Equity Plan
Ìý
3,406,716

Ìý
—

Stock Incentive Plans Disclosure [Table Text Block]
Following is a summary of our performance share award agreements currently outstanding:
Performance
Share
Plan Year
Ìý
Performance Shares Granted
Ìý
Forfeitures to Date
Ìý
Expected to Vest
Ìý
Grant Date
Ìý
Grant Date Fair Value
Ìý
Performance Period
2018
Ìý
675,599

Ìý
2,236

Ìý
673,363

Ìý
2/21/2018
Ìý
$
11.93

Ìý
1/1/2018 - 12/31/2020
2017
Ìý
249,106

Ìý
—

Ìý
249,106

Ìý
6/26/2017
Ìý
$
10.74

Ìý
5/31/2017 - 12/31/2019
2017
Ìý
553,725

Ìý
51,471

Ìý
502,254

Ìý
2/21/2017
Ìý
$
19.69

Ìý
1/1/2017 - 12/31/2019
Incentive Compensation and Other Benefit Plans for Employees and Directors [Table Text Block]
For the last three years, grants of restricted and/or deferred shares have been awarded to elected or re-elected nonemployee directors as follows:
Year of Grant
Ìý
Restricted Shares
Ìý
Deferred Shares
2018
Ìý
92,718

Ìý
17,170

2017
Ìý
93,359

Ìý
17,289

2016
Ìý
135,038

Ìý
29,583

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 in continuing operations:
Ìý
(InÌýMillions,Ìýexcept per
shareÌýamounts)
Ìý
2018
Ìý
2017
Ìý
2016
Cost of goods sold and operating expenses
$
1.7

Ìý
$
1.9

Ìý
$
1.8

Selling, general and administrative expenses
13.4

Ìý
16.3

Ìý
11.8

Reduction of operating income from continuing operations before
ÌýÌýÌýÌýincome taxes
15.1

Ìý
18.2

Ìý
13.6

Income tax benefit1
—

Ìý
—

Ìý
—

Reduction of net income from continuing operations attributable to Cliffs shareholders
$
15.1

Ìý
$
18.2

Ìý
$
13.6

Reduction of continuing operations earnings per common share attributable to Cliffs shareholders:
Ìý
Ìý
Ìý
Ìý
Ìý
Basic
$
0.05

Ìý
$
0.06

Ìý
$
0.07

Diluted
$
0.05

Ìý
$
0.06

Ìý
$
0.07

Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
1 No income tax benefit due to the full valuation allowance.
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]
Stock option, restricted stock awards and performance share activity under our long-term equity plans and Directors’ Plans are as follows:
Ìý
2018
Ìý
2017
Ìý
2016
Ìý
Shares
Ìý
Shares
Ìý
Shares
Stock options:
Ìý
Ìý
Ìý
Ìý
Ìý
Outstanding at beginning of year
599,870

Ìý
599,870

Ìý
607,489

Exercised
(36,640
)
Ìý
—

Ìý
—

Forfeited/canceled
—

Ìý
—

Ìý
(7,619
)
Outstanding at end of year
563,230

Ìý
599,870

Ìý
599,870

Restricted awards:
Ìý
Ìý
Ìý
Ìý
Ìý
Outstanding and restricted at beginning of year
4,776,483

Ìý
5,461,783

Ìý
2,338,070

Granted during the year
795,487

Ìý
1,196,731

Ìý
3,571,337

Vested and issued
(627,567
)
Ìý
(1,813,315
)
Ìý
(271,988
)
Forfeited/canceled
(140,155
)
Ìý
(68,716
)
Ìý
(175,636
)
Outstanding and restricted at end of year
4,804,248

Ìý
4,776,483

Ìý
5,461,783

Performance shares:

Ìý

Ìý

Outstanding at beginning of year
1,848,312

Ìý
1,368,469

Ìý
1,496,489

Granted during the year
675,599

Ìý
802,831

Ìý
—

Vested and issued
(489,953
)
Ìý
—

Ìý
(59,260
)
Forfeited/canceled
(609,235
)
Ìý
(322,988
)
Ìý
(68,760
)
Outstanding at end of year
1,424,723

Ìý
1,848,312

Ìý
1,368,469

Vested or expected to vest as of DecemberÌý31, 20181
6,792,201

Ìý
Ìý
Ìý
Ìý
Directors’ retainer and voluntary shares:

Ìý

Ìý

Outstanding at beginning of year
—

Ìý
—

Ìý
—

Granted during the year
27,300

Ìý
25,476

Ìý
—

Vested and issued
(27,300
)
Ìý
(25,476
)
Ìý
—

Outstanding at end of year
—

Ìý
—

Ìý
—

Reserved for future grants or awards at end of year:
Ìý
Ìý
Ìý
Ìý
Ìý
Employee plans
12,949,420

Ìý
Ìý
Ìý
Ìý
Directors’ plans
502,378

Ìý
Ìý
Ìý
Ìý
Total
13,451,798

Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
1ÌýWith the adoption of ASU 2016-09, we assume all shares will vest until the date of vesting or forfeiture.

Employee Stock Awards Outstanding [Table Text Block]
A summary of our outstanding share-based awards as of DecemberÌý31, 2018 is shown below:
Ìý
Shares
Ìý
Weighted
Average
GrantÌýDate
Fair Value
Outstanding, beginning of year
7,224,665

Ìý
$
6.79

Granted
1,498,386

Ìý
$
9.51

Vested and issued
(1,181,460
)
Ìý
$
7.38

Forfeited/canceled
(749,390
)
Ìý
$
10.22

Outstanding, end of year
6,792,201

Ìý
$
6.90