DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (Tables)
|
6 Months Ended |
Jun. 30, 2015 |
|---|
| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Line Items] |
Ìý
|
| 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
Income (Loss) from Discontinued Operations, net of tax |
QTD
June 30, 2015 |
$ |
(31.5 |
) |
Ìý |
$ |
134.9 |
|
$ |
— |
|
$ |
134.9 |
|
Ìý |
$ |
103.4 |
|
Income (Loss) from Discontinued Operations, net of tax |
QTD
June 30, 2014 |
$ |
(17.7 |
) |
Ìý |
$ |
(56.6 |
) |
$ |
(2.1 |
) |
$ |
(58.7 |
) |
Ìý |
$ |
(76.4 |
) |
Income (Loss) from Discontinued Operations, net of tax |
YTD
June 30, 2015 |
$ |
(107.2 |
) |
Ìý |
$ |
(717.8 |
) |
$ |
(0.1 |
) |
$ |
(717.9 |
) |
Ìý |
$ |
(825.1 |
) |
Income (Loss) from Discontinued Operations, net of tax |
YTD
June 30, 2014 |
$ |
(63.8 |
) |
Ìý |
$ |
(148.1 |
) |
$ |
(4.9 |
) |
$ |
(153.0 |
) |
Ìý |
$ |
(216.8 |
) |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Statements of Unaudited Condensed Consolidated Financial Position |
Short-term assets of discontinued operations |
As of
June 30, 2015
|
$ |
150.5 |
|
Ìý |
$ |
— |
|
$ |
— |
|
$ |
— |
|
Ìý |
$ |
150.5 |
|
Long-term assets of discontinued operations |
As of
June 30, 2015 |
$ |
— |
|
Ìý |
$ |
— |
|
$ |
— |
|
$ |
— |
|
Ìý |
$ |
— |
|
Short-term liabilities of discontinued operations |
As of
June 30, 2015 |
$ |
196.9 |
|
Ìý |
$ |
— |
|
$ |
— |
|
$ |
— |
|
Ìý |
$ |
196.9 |
|
Long-term liabilities of discontinued operations |
As of
June 30, 2015 |
$ |
— |
|
Ìý |
$ |
— |
|
$ |
— |
|
$ |
— |
|
Ìý |
$ |
— |
|
Short-term assets of discontinued operations |
As of
December 31, 2014
|
$ |
143.8 |
|
Ìý |
$ |
183.5 |
|
$ |
3.3 |
|
$ |
186.8 |
|
Ìý |
$ |
330.6 |
|
Long-term assets of discontinued operations |
As of
December 31, 2014 |
$ |
130.4 |
|
Ìý |
$ |
256.0 |
|
$ |
13.7 |
|
$ |
269.7 |
|
Ìý |
$ |
400.1 |
|
Short-term liabilities of discontinued operations |
As of
December 31, 2014 |
$ |
81.3 |
|
Ìý |
$ |
316.3 |
|
$ |
3.0 |
|
$ |
319.3 |
|
Ìý |
$ |
400.6 |
|
Long-term liabilities of discontinued operations |
As of
December 31, 2014 |
$ |
125.9 |
|
Ìý |
$ |
304.6 |
|
$ |
5.6 |
|
$ |
310.2 |
|
Ìý |
$ |
436.1 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Non-Cash Operating and Investing Activities |
Depreciation, depletion and amortization: |
YTD
June 30, 2015 |
$ |
3.2 |
|
Ìý |
$ |
— |
|
$ |
— |
|
$ |
— |
|
Ìý |
$ |
3.2 |
|
Purchase of property, plant and equipment |
YTD
June 30, 2015
|
$ |
5.5 |
|
Ìý |
$ |
— |
|
$ |
— |
|
$ |
— |
|
Ìý |
$ |
5.5 |
|
Impairment of long-lived assets |
YTD
June 30, 2015 |
$ |
73.4 |
|
Ìý |
$ |
— |
|
$ |
— |
|
$ |
— |
|
Ìý |
$ |
73.4 |
|
Depreciation, depletion and amortization: |
YTD
June 30, 2014 |
$ |
61.9 |
|
Ìý |
$ |
83.6 |
|
$ |
0.2 |
|
$ |
83.8 |
|
Ìý |
$ |
145.7 |
|
Purchase of property, plant and equipment |
YTD
June 30, 2014
|
$ |
20.2 |
|
Ìý |
$ |
74.1 |
|
$ |
— |
|
$ |
74.1 |
|
Ìý |
$ |
94.3 |
|
Impairment of long-lived assets |
YTD
June 30, 2014 |
$ |
— |
|
Ìý |
$ |
— |
|
$ |
— |
|
$ |
— |
|
Ìý |
$ |
— |
|
|
| North American Coal [Member] |
Ìý
|
| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Line Items] |
Ìý
|
| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Table Text Block] |
Recorded Assets and Liabilities
|
|
|
|
|
|
|
|
|
|
Ìý |
Ìý |
(In Millions) |
Assets and Liabilities of Discontinued Operations |
Ìý |
JuneÌý30,
2015 |
Ìý |
DecemberÌý31,
2014 |
Accounts receivable, net |
Ìý |
$ |
39.7 |
|
Ìý |
$ |
44.8 |
|
Inventories |
Ìý |
24.3 |
|
Ìý |
50.3 |
|
Supplies and other inventories |
Ìý |
28.3 |
|
Ìý |
28.2 |
|
Other current assets |
Ìý |
23.4 |
|
Ìý |
20.5 |
|
Property, plant and equipment, net |
Ìý |
26.7 |
|
Ìý |
94.7 |
|
Other non-current assets |
Ìý |
8.1 |
|
Ìý |
35.7 |
|
Total assets of discontinued operations |
Ìý |
$ |
150.5 |
|
Ìý |
$ |
274.2 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Accounts payable |
Ìý |
$ |
27.9 |
|
Ìý |
$ |
22.4 |
|
Accrued liabilities |
Ìý |
15.7 |
|
Ìý |
27.9 |
|
Other current liabilities |
Ìý |
27.8 |
|
Ìý |
31.0 |
|
Pension and postemployment benefit liabilities1
|
Ìý |
58.6 |
|
Ìý |
55.8 |
|
Environmental and mine closure obligations |
Ìý |
34.9 |
|
Ìý |
33.9 |
|
Other liabilities |
Ìý |
32.0 |
|
Ìý |
36.2 |
|
Total liabilities of discontinued operations |
Ìý |
$ |
196.9 |
|
Ìý |
$ |
207.2 |
|
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.
|
|
| 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
Ìý |
(In Millions) |
Ìý |
Ìý |
Three Months Ended June 30, |
Ìý |
Six Months Ended
June 30, |
Loss from Discontinued Operations |
Ìý |
2015 |
Ìý |
2014 |
Ìý |
2015 |
Ìý |
2014 |
Revenues from product sales and services |
Ìý |
$ |
142.7 |
|
Ìý |
$ |
179.2 |
|
Ìý |
$ |
259.3 |
|
Ìý |
$ |
345.4 |
|
Cost of goods sold and operating expenses |
Ìý |
(167.0 |
) |
Ìý |
(231.9 |
) |
Ìý |
(274.3 |
) |
Ìý |
(446.5 |
) |
Sales margin |
Ìý |
(24.3 |
) |
Ìý |
(52.7 |
) |
Ìý |
(15.0 |
) |
Ìý |
(101.1 |
) |
Other operating expense |
Ìý |
(7.1 |
) |
Ìý |
(5.1 |
) |
Ìý |
(18.3 |
) |
Ìý |
(9.6 |
) |
Other expense |
Ìý |
(0.5 |
) |
Ìý |
(0.4 |
) |
Ìý |
(1.0 |
) |
Ìý |
(1.0 |
) |
Loss from discontinued operations before income taxes |
Ìý |
(31.9 |
) |
Ìý |
(58.2 |
) |
Ìý |
(34.3 |
) |
Ìý |
(111.7 |
) |
Impairment of long-lived assets |
Ìý |
— |
|
Ìý |
— |
|
Ìý |
(73.4 |
) |
Ìý |
— |
|
Income tax benefit |
Ìý |
0.4 |
|
Ìý |
40.5 |
|
Ìý |
0.5 |
|
Ìý |
47.9 |
|
Loss from discontinued operations, net of tax |
Ìý |
$ |
(31.5 |
) |
Ìý |
$ |
(17.7 |
) |
Ìý |
$ |
(107.2 |
) |
Ìý |
$ |
(63.8 |
) |
|
| 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. There were no financial and non-financial assets and liabilities that were measured on a non-recurring fair value basis at JuneÌý30, 2015. The table also indicates the fair value hierarchy of the valuation techniques used to determine such fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
Ìý |
(In Millions) |
Ìý |
Ìý |
MarchÌý31, 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 |
Other long-lived assets - Property, plant and equipment and Mineral rights: North American Coal operating unit |
Ìý |
$ |
— |
|
Ìý |
$ |
— |
|
Ìý |
$ |
20.4 |
|
Ìý |
$ |
20.4 |
|
Ìý |
$ |
(73.4 |
) |
Ìý |
Ìý |
$ |
— |
|
Ìý |
$ |
— |
|
Ìý |
$ |
20.4 |
|
Ìý |
$ |
20.4 |
|
Ìý |
$ |
(73.4 |
) |
|
| Canadian Entities [Member] |
Ìý
|
| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Line Items] |
Ìý
|
| Schedule of Disposal Groups, Including Discontinued Operations, Assets and Liabilities [Table Text Block] |
Recorded Assets and Liabilities
|
|
|
|
|
|
Ìý |
Ìý |
(In Millions) |
Assets and Liabilities of Discontinued Operations |
Ìý |
DecemberÌý31,
2014 |
Cash and cash equivalents |
Ìý |
$ |
19.7 |
|
Accounts receivable, net |
Ìý |
37.9 |
|
Inventories |
Ìý |
16.3 |
|
Supplies and other inventories |
Ìý |
48.5 |
|
Income tax receivable |
Ìý |
20.1 |
|
Other current assets |
Ìý |
44.3 |
|
Property, plant and equipment, net |
Ìý |
249.8 |
|
Other non-current assets |
Ìý |
19.9 |
|
Total Assets |
Ìý |
$ |
456.5 |
|
Ìý |
Ìý |
Ìý |
Accounts payable |
Ìý |
$ |
83.6 |
|
Accrued expenses |
Ìý |
200.0 |
|
Other current liabilities |
Ìý |
35.7 |
|
Pension and postemployment benefit liabilities |
Ìý |
79.8 |
|
Environmental and mine closure obligations |
Ìý |
56.5 |
|
Other liabilities |
Ìý |
173.9 |
|
Total Liabilities |
Ìý |
$ |
629.5 |
|
|
| 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 respective deconsolidations as well as costs to exit are classified as discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
Ìý |
(In Millions) |
Ìý |
Ìý |
Three Months Ended
June 30, |
Ìý |
Six Months Ended
June 30, |
Loss from Discontinued Operations |
Ìý |
2015 |
Ìý |
2014 |
Ìý |
2015 |
Ìý |
2014 |
Revenues from product sales and services |
Ìý |
$ |
— |
|
Ìý |
$ |
174.0 |
|
Ìý |
$ |
11.3 |
|
Ìý |
$ |
332.3 |
|
Cost of goods sold and operating expenses |
Ìý |
— |
|
Ìý |
(212.5 |
) |
Ìý |
(11.1 |
) |
Ìý |
(420.5 |
) |
Eliminations with continuing operations |
Ìý |
— |
|
Ìý |
(0.3 |
) |
Ìý |
— |
|
Ìý |
(29.0 |
) |
Sales margin |
Ìý |
— |
|
Ìý |
(38.8 |
) |
Ìý |
0.2 |
|
Ìý |
(117.2 |
) |
Other operating expense |
Ìý |
(0.5 |
) |
Ìý |
(54.5 |
) |
Ìý |
(33.8 |
) |
Ìý |
(113.0 |
) |
Other expense |
Ìý |
— |
|
Ìý |
(1.6 |
) |
Ìý |
(1.0 |
) |
Ìý |
(3.0 |
) |
Loss from discontinued operations before income taxes |
Ìý |
(0.5 |
) |
Ìý |
(94.9 |
) |
Ìý |
(34.6 |
) |
Ìý |
(233.2 |
) |
Gain (loss) from deconsolidation |
Ìý |
134.7 |
|
Ìý |
— |
|
Ìý |
(684.0 |
) |
Ìý |
— |
|
Income tax benefit |
Ìý |
0.7 |
|
Ìý |
36.2 |
|
Ìý |
0.7 |
|
Ìý |
80.2 |
|
Income (loss) from discontinued operations, net of tax |
Ìý |
$ |
134.9 |
|
Ìý |
$ |
(58.7 |
) |
Ìý |
$ |
(717.9 |
) |
Ìý |
$ |
(153.0 |
) |
|
| 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 JuneÌý30, 2015. The table also indicates the fair value hierarchy of the valuation techniques used to determine such fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
Ìý |
(In Millions) |
Ìý |
Ìý |
June 30, 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 |
$ |
94.5 |
|
Ìý |
$ |
94.5 |
|
Ìý |
$ |
(480.4 |
) |
Liabilities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Contingent liabilities |
Ìý |
$ |
— |
|
Ìý |
$ |
— |
|
Ìý |
$ |
160.5 |
|
Ìý |
$ |
160.5 |
|
Ìý |
$ |
(203.6 |
) |
|
| PreTax Exit Costs [Table Text Block] |
For the three months ended June 30, 2015, Canadian Entities gain from deconsolidation totaled $134.7 million and for the six months ended June 30, 2015, Canadian Entities loss from deconsolidation totaled $684.0 million and included the following:
|
|
|
|
|
|
|
|
|
|
Ìý |
Ìý |
(In Millions) |
Ìý |
Ìý |
Three Months Ended
June 30, |
Ìý |
Six Months Ended
June 30, |
Ìý |
Ìý |
2015 |
Ìý |
2015 |
Investment impairment on deconsolidation1
|
Ìý |
$ |
(4.4 |
) |
Ìý |
$ |
(480.4 |
) |
Contingent liabilities |
Ìý |
139.1 |
|
Ìý |
(203.6 |
) |
Total gain (loss) from deconsolidation |
Ìý |
$ |
134.7 |
|
Ìý |
$ |
(684.0 |
) |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
1 Includes the adjustment to fair value of our remaining interest in the Canadian Entities
|
|