星空传媒 Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTIES

RELATED PARTIES

6 Months Ended

Jun. 30, 2018

听

NOTE 18 - RELATED PARTIES

One of our four operating mines is a co-owned joint venture with companies that are integrated steel producers or their subsidiaries. We are the manager of such co-owned mine and rely on our joint venture partners to make their required capital contributions and to pay for their share of the iron ore pellets that we produce. Our joint venture partners are often our customers. The following is a summary of the mine ownership of the co-owned iron ore mine at June听30, 2018:



Mine	听	星空传媒 Inc.		听	ArcelorMittal		听	U.S. Steel
Hibbing	听	23.0	%	听	62.3	%	听	14.7	%

Product revenues from related parties were as follows:



听	(In Millions)
听	Three Months Ended June 30,							听	Six Months Ended June 30,
听	2018			听	2017			听	2018			听	2017
Product revenues from related parties	$	409.4		听	$	227.5		听	$	471.4		听	$	336.9
Total product revenues	$	672.0		听	$	417.0		听	$	841.2		听	$	664.3
Related party product revenue as a percent of total product revenue	60.9		%	听	54.6		%	听	56.0		%	听	50.7		%

The following table presents the classification of related party assets and liabilities in the Statements of Unaudited Condensed Consolidated Financial Position:



听	(In Millions)
听	Balance Sheet Location	听	June 30, 2018			听	December 31, 2017
Amounts due from related parties	Accounts receivable, net	听	$	83.2		听	$	68.1
Customer supply agreement and provisional pricing agreements	Derivative assets	听	169.4			听	37.9
Amounts due to related parties	Partnership distribution payable	听	(44.2		)	听	(44.2		)
Amounts due to related parties	Other current liabilities	听	(3.6		)	听	(12.3		)
Amounts due to related parties	Other liabilities	听	(42.7		)	听	(41.4		)
Net amounts due from related parties	听	听	$	162.1		听	$	8.1

During 2017, our ownership interest in Empire increased to 100% as we reached an agreement to distribute the noncontrolling interest net assets of $132.7 million to ArcelorMittal, in exchange for its interest in Empire. The net assets were agreed to be distributed in three installments of $44.2 million each, the first of which was paid upon the execution of the agreement and the remaining two of which are due in August 2018 and August 2019. The remaining two outstanding installments are reflected in Partnership distribution payable and Other liabilities in the听Statements of Unaudited Condensed Consolidated Financial Position听as of听June听30, 2018.

A supply agreement with a customer provides for supplemental revenue or refunds to the customer based on the average annual daily market price for hot-rolled coil steel at the time the product is consumed in the customer鈥檚 blast furnace. The supplemental pricing is characterized as a freestanding derivative. Refer to NOTE 15 - DERIVATIVE INSTRUMENTS for further information.