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DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (Tables)
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3 Months Ended |
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Mar. 31, 2015
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| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Line Items] |
Ìý
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| Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] |
The chart below provides an asset group breakout for each financial statement line impacted by discontinued operations.
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Ìý |
Ìý |
Ìý |
Ìý |
Canadian Operations |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
North American Coal |
Ìý |
Eastern Canadian Iron Ore |
Other |
Total Canadian Operations |
Ìý |
Total of Discontinued Operations |
Statements of Unaudited Condensed Consolidated Operations |
Loss from Discontinued Operations, net of tax |
YTD
March 31, 2015
|
$ |
(75.7 |
) |
Ìý |
$ |
(852.7 |
) |
$ |
(0.1 |
) |
$ |
(852.8 |
) |
Ìý |
$ |
(928.5 |
) |
Loss from Discontinued Operations, net of tax |
YTD
March 31, 2014
|
$ |
(46.3 |
) |
Ìý |
$ |
(91.2 |
) |
$ |
(2.9 |
) |
$ |
(94.1 |
) |
Ìý |
$ |
(140.4 |
) |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Statements of Unaudited Condensed Consolidated Financial Position |
Short-term assets of discontinued operations |
As of
March 31, 2015
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$ |
188.6 |
|
Ìý |
$ |
8.6 |
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$ |
— |
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$ |
8.6 |
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Ìý |
$ |
197.2 |
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Long-term assets of discontinued operations |
As of
March 31, 2015 |
$ |
— |
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Ìý |
$ |
— |
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$ |
— |
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$ |
— |
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Ìý |
$ |
— |
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Short-term liabilities of discontinued operations |
As of
March 31, 2015 |
$ |
197.7 |
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Ìý |
$ |
67.3 |
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$ |
— |
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$ |
67.3 |
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Ìý |
$ |
265.0 |
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Long-term liabilities of discontinued operations |
As of
March 31, 2015 |
$ |
— |
|
Ìý |
$ |
125.2 |
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$ |
— |
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$ |
125.2 |
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Ìý |
$ |
125.2 |
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Short-term assets of discontinued operations |
As of
December 31, 2014
|
$ |
143.8 |
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Ìý |
$ |
183.5 |
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$ |
3.3 |
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$ |
186.8 |
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Ìý |
$ |
330.6 |
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Long-term assets of discontinued operations |
As of
December 31, 2014 |
$ |
130.4 |
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Ìý |
$ |
256.0 |
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$ |
13.7 |
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$ |
269.7 |
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Ìý |
$ |
400.1 |
|
Short-term liabilities of discontinued operations |
As of
December 31, 2014 |
$ |
81.3 |
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Ìý |
$ |
316.3 |
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$ |
3.0 |
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$ |
319.3 |
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Ìý |
$ |
400.6 |
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Long-term liabilities of discontinued operations |
As of
December 31, 2014 |
$ |
125.9 |
|
Ìý |
$ |
304.6 |
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$ |
5.6 |
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$ |
310.2 |
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Ìý |
$ |
436.1 |
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Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Non-Cash Operating and Investing Activities |
Depreciation, depletion and amortization: |
YTD
March 31, 2015
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$ |
3.2 |
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Ìý |
$ |
— |
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$ |
— |
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$ |
— |
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Ìý |
$ |
3.2 |
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Purchase of property, plant and equipment |
YTD
March 31, 2015
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$ |
2.5 |
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Ìý |
$ |
— |
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$ |
— |
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$ |
— |
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Ìý |
$ |
2.5 |
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Impairment of long-lived assets |
YTD
March 31, 2015 |
$ |
73.4 |
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Ìý |
$ |
— |
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$ |
— |
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$ |
— |
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Ìý |
$ |
73.4 |
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Depreciation, depletion and amortization: |
YTD
March 31, 2014
|
$ |
29.9 |
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Ìý |
$ |
41.2 |
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$ |
0.1 |
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$ |
41.3 |
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Ìý |
$ |
71.2 |
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Purchase of property, plant and equipment |
YTD
March 31, 2014
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$ |
10.0 |
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Ìý |
$ |
75.6 |
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$ |
— |
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$ |
75.6 |
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Ìý |
$ |
85.6 |
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Impairment of long-lived assets |
YTD
March 31, 2014 |
$ |
— |
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Ìý |
$ |
— |
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$ |
— |
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$ |
— |
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Ìý |
$ |
— |
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| North American Coal [Member] |
Ìý
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| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Line Items] |
Ìý
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| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Table Text Block] |
Recorded Assets and Liabilities
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Ìý |
Ìý |
(In Millions) |
Assets and Liabilities of Discontinued Operations |
Ìý |
MarchÌý31,
2015 |
Ìý |
DecemberÌý31,
2014 |
Accounts receivable, net |
Ìý |
$ |
42.7 |
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Ìý |
$ |
44.8 |
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Inventories |
Ìý |
59.7 |
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Ìý |
50.3 |
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Supplies and other inventories |
Ìý |
28.4 |
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Ìý |
28.2 |
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Other current assets |
Ìý |
29.4 |
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Ìý |
20.5 |
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Property, plant and equipment, net |
Ìý |
20.4 |
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Ìý |
94.7 |
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Other non-current assets |
Ìý |
8.0 |
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Ìý |
35.7 |
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Total assets of discontinued operations |
Ìý |
$ |
188.6 |
|
Ìý |
$ |
274.2 |
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Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Accounts payable |
Ìý |
$ |
23.3 |
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Ìý |
$ |
22.4 |
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Accrued liabilities |
Ìý |
16.7 |
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Ìý |
27.9 |
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Other current liabilities |
Ìý |
34.7 |
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Ìý |
31.0 |
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Pension and postemployment benefit liabilities1
|
Ìý |
56.7 |
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Ìý |
55.8 |
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Environmental and mine closure obligations |
Ìý |
34.4 |
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Ìý |
33.9 |
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Other liabilities |
Ìý |
31.9 |
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Ìý |
36.2 |
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Total liabilities of discontinued operations |
Ìý |
$ |
197.7 |
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Ìý |
$ |
207.2 |
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1ÌýThis does not include a liability of approximately $330 million, which is the most recent estimate of Pinnacle and Oak Grove’s combined share of the underfunded liability under the UMWA 1974 Pension Plan.
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| Schedule of Disposal Groups, including Discontinued Operations, Income Statement [Table Text Block] |
Loss on Discontinued Operations
Our planned sale of the Oak Grove and Pinnacle mine assets represents a strategic shift in our business. For this reason, our previously reported North American Coal operating segment results for all periods, prior to the March 31, 2015 held for sale determination, are classified as discontinued operations. This includes our CLCC assets, which were sold during the fourth quarter of 2014.
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Ìý |
Ìý |
(In Millions) |
Ìý |
Ìý |
Three Months Ended
March 31, |
Loss from Discontinued Operations |
Ìý |
2015 |
Ìý |
2014 |
REVENUES FROM PRODUCT SALES AND SERVICES |
Ìý |
$ |
116.6 |
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Ìý |
$ |
166.2 |
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COST OF GOODS SOLD AND OPERATING EXPENSES |
Ìý |
(107.3 |
) |
Ìý |
(214.6 |
) |
SALES MARGIN |
Ìý |
9.3 |
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Ìý |
(48.4 |
) |
OTHER OPERATING EXPENSE |
Ìý |
(11.3 |
) |
Ìý |
(4.5 |
) |
OTHER EXPENSE |
Ìý |
(0.4 |
) |
Ìý |
(0.6 |
) |
LOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES |
Ìý |
(2.4 |
) |
Ìý |
(53.5 |
) |
IMPAIRMENT OF LONG-LIVED ASSETS |
Ìý |
(73.4 |
) |
Ìý |
— |
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INCOME TAX BENEFIT |
Ìý |
0.1 |
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Ìý |
7.2 |
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LOSS FROM DISCONTINUED OPERATIONS, net of tax |
Ìý |
$ |
(75.7 |
) |
Ìý |
$ |
(46.3 |
) |
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| Discontinued Operations, Items Measured at Fair Value on a Non-Recurring Basis [Table Text Block] |
Items Measured at Fair Value on a Non-Recurring Basis
The following table presents information about the impairment charge on non-financial assets that was measured on a fair value basis at MarchÌý31, 2015. The tables also indicate the fair value hierarchy of the valuation techniques used to determine such fair value.
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Ìý |
Ìý |
(In Millions) |
Ìý |
Ìý |
March 31, 2015 |
Description |
Ìý |
Quoted Prices in Active
Markets for Identical Assets/
Liabilities
(Level 1)
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Ìý |
Significant Other Observable Inputs
(Level 2)
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Ìý |
Significant Unobservable Inputs
(Level 3)
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Ìý |
Total |
Ìý |
Total Losses |
Assets: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Other long-lived assets - Property, plant and equipment and Mineral rights: North American Coal operating unit |
Ìý |
$ |
— |
|
Ìý |
$ |
— |
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Ìý |
$ |
20.4 |
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Ìý |
$ |
20.4 |
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Ìý |
$ |
(73.4 |
) |
Ìý |
Ìý |
$ |
— |
|
Ìý |
$ |
— |
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Ìý |
$ |
20.4 |
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Ìý |
$ |
20.4 |
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Ìý |
$ |
(73.4 |
) |
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| Canadian Entities [Member] |
Ìý
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| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Line Items] |
Ìý
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| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Table Text Block] |
Recorded Assets and Liabilities
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Ìý |
Ìý |
(In Millions) |
Assets and Liabilities of Discontinued Operations |
Ìý |
March 31,
2015 |
Accounts receivable, net |
Ìý |
$ |
3.0 |
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Income tax receivable |
Ìý |
1.8 |
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Other non-current assets |
Ìý |
3.8 |
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Total Assets |
Ìý |
$ |
8.6 |
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Ìý |
Ìý |
Ìý |
Accounts payable |
Ìý |
$ |
0.5 |
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Accrued expenses |
Ìý |
51.1 |
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Other liabilities |
Ìý |
140.9 |
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Total Liabilities |
Ìý |
$ |
192.5 |
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Ìý |
Ìý |
(In Millions) |
Assets and Liabilities of Discontinued Operations |
Ìý |
DecemberÌý31,
2014 |
Cash and cash equivalents |
Ìý |
$ |
19.7 |
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Accounts receivable, net |
Ìý |
37.9 |
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Inventories |
Ìý |
16.3 |
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Supplies and other inventories |
Ìý |
48.5 |
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Income tax receivable |
Ìý |
20.1 |
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Other current assets |
Ìý |
44.3 |
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Property, plant and equipment, net |
Ìý |
249.8 |
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Other non-current assets |
Ìý |
19.9 |
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Total Assets |
Ìý |
$ |
456.5 |
|
Ìý |
Ìý |
Ìý |
Accounts payable |
Ìý |
$ |
83.6 |
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Accrued expenses |
Ìý |
200.0 |
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Other current liabilities |
Ìý |
35.7 |
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Pension and postemployment benefit liabilities |
Ìý |
79.8 |
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Environmental and mine closure obligations |
Ìý |
56.5 |
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Other liabilities |
Ìý |
173.9 |
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Total Liabilities |
Ìý |
$ |
629.5 |
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| Schedule of Disposal Groups, including Discontinued Operations, Income Statement [Table Text Block] |
Loss on Discontinued Operations
Our Canadian exit represents a strategic shift in our business. For this reason, our previously reported Eastern Canadian Iron Ore and Ferroalloys operating segment results for all periods prior to the January 27, 2015 deconsolidation as well as costs to exit are classified as discontinued operations.
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Ìý |
Ìý |
(In Millions) |
Ìý |
Ìý |
Three Months Ended
March 31, |
Loss from Discontinued Operations |
Ìý |
2015 |
Ìý |
2014 |
REVENUES FROM PRODUCT SALES AND SERVICES |
Ìý |
$ |
11.3 |
|
Ìý |
$ |
158.3 |
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COST OF GOODS SOLD AND OPERATING EXPENSES |
Ìý |
(11.1 |
) |
Ìý |
(208.0 |
) |
ELIMINATIONS WITH CONTINUING OPERATIONS |
Ìý |
— |
|
Ìý |
(28.7 |
) |
SALES MARGIN |
Ìý |
0.2 |
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Ìý |
(78.4 |
) |
OTHER OPERATING EXPENSE |
Ìý |
(33.3 |
) |
Ìý |
(58.6 |
) |
OTHER EXPENSE |
Ìý |
(1.0 |
) |
Ìý |
(1.4 |
) |
LOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES |
Ìý |
(34.1 |
) |
Ìý |
(138.4 |
) |
PRETAX EXIT COSTS |
Ìý |
(818.7 |
) |
Ìý |
— |
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INCOME TAX BENEFIT |
Ìý |
— |
|
Ìý |
44.3 |
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LOSS FROM DISCONTINUED OPERATIONS, net of tax |
Ìý |
$ |
(852.8 |
) |
Ìý |
$ |
(94.1 |
) |
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| Discontinued Operations, Items Measured at Fair Value on a Non-Recurring Basis [Table Text Block] |
Items Measured at Fair Value on a Non-Recurring Basis
The following table presents information about the financial assets and liabilities that was measured on a fair value basis at MarchÌý31, 2015. The tables also indicate the fair value hierarchy of the valuation techniques used to determine such fair value.
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Ìý |
Ìý |
(In Millions) |
Ìý |
Ìý |
March 31, 2015 |
Description |
Ìý |
Quoted Prices in Active
Markets for Identical Assets/
Liabilities
(Level 1)
|
Ìý |
Significant Other Observable Inputs
(Level 2)
|
Ìý |
Significant Unobservable Inputs
(Level 3)
|
Ìý |
Total |
Ìý |
Total Losses |
Assets: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Loans to and accounts receivables from the Canadian Entities |
Ìý |
$ |
— |
|
Ìý |
$ |
— |
|
Ìý |
$ |
112.1 |
|
Ìý |
$ |
112.1 |
|
Ìý |
$ |
(476.0 |
) |
Liabilities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Contingent liabilities and joint and several liabilities |
Ìý |
$ |
— |
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Ìý |
$ |
— |
|
Ìý |
$ |
342.7 |
|
Ìý |
$ |
342.7 |
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Ìý |
$ |
(342.7 |
) |
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| PreTax Exit Costs [Table Text Block] |
The first quarter Canadian Entities pretax exit costs totaled $818.7 million and included the following:
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Ìý |
Ìý |
(In Millions) |
Ìý |
Ìý |
Three Months Ended
March 31, |
Pretax Exit Costs |
Ìý |
2015 |
Investment Impairment on Deconsolidation |
Ìý |
$ |
(476.0 |
) |
Contingent Liabilities |
Ìý |
(342.7 |
) |
Total Pretax Exit Costs |
Ìý |
$ |
(818.7 |
) |
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