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Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING SEGMENT REPORTING (Tables)

v3.10.0.1
SEGMENT REPORTING SEGMENT REPORTING (Tables)
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract] Ìý
Schedule Of Segment Reporting Information, By Segment
The following tables present a summary of our reportable segment including a reconciliation of segment sales margin to Income from Continuing Operations Before Income Taxes and a reconciliation of Net Income to EBITDA and Adjusted EBITDA:
Ìý
(In Millions)
Ìý
Three Months Ended
June 30,
Ìý
Six Months Ended
June 30,
Ìý
2018
Ìý
2017
Ìý
2018
Ìý
2017
Revenues from product sales and services:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
U.S. Iron Ore
$
714.3

Ìý
100
%
Ìý
$
471.3

Ìý
100
%
Ìý
$
894.3

Ìý
100
%
Ìý
$
757.5

Ìý
100
%
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Sales margin
$
284.5

Ìý
Ìý
Ìý
$
144.7

Ìý
Ìý
Ìý
$
346.0

Ìý
Ìý
Ìý
$
193.7

Ìý
Ìý
Other operating expense
(30.3
)
Ìý
Ìý
Ìý
(29.5
)
Ìý
Ìý
Ìý
(61.5
)
Ìý
Ìý
Ìý
(45.1
)
Ìý
Ìý
Other expense
(26.6
)
Ìý
Ìý
Ìý
(32.5
)
Ìý
Ìý
Ìý
(54.6
)
Ìý
Ìý
Ìý
(143.3
)
Ìý
Ìý
Income from continuing operations before income taxes
$
227.6

Ìý
Ìý
Ìý
$
82.7

Ìý
Ìý
Ìý
$
229.9

Ìý
Ìý
Ìý
$
5.3

Ìý
Ìý
Ìý
(In Millions)
Ìý
Three Months Ended
June 30,
Ìý
Six Months Ended
June 30,
Ìý
2018
Ìý
2017
Ìý
2018
Ìý
2017
Net Income
$
165.1

Ìý
$
30.1

Ìý
$
80.8

Ìý
$
0.3

Less:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Interest expense, net
(32.3
)
Ìý
(31.4
)
Ìý
(65.8
)
Ìý
(74.2
)
Income tax benefit (expense)
1.8

Ìý
(2.6
)
Ìý
(13.9
)
Ìý
(0.8
)
Depreciation, depletion and amortization
(25.5
)
Ìý
(21.6
)
Ìý
(49.4
)
Ìý
(44.8
)
EBITDA
$
221.1

Ìý
$
85.7

Ìý
$
209.9

Ìý
$
120.1

Less:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Impact of discontinued operations
$
(54.7
)
Ìý
$
(45.4
)
Ìý
$
(117.8
)
Ìý
$
6.5

Foreign exchange remeasurement
(0.1
)
Ìý
0.5

Ìý
(0.5
)
Ìý
15.3

Gain (loss) on extinguishment of debt
0.2

Ìý
(4.9
)
Ìý
0.2

Ìý
(76.8
)
Adjusted EBITDA
$
275.7

Ìý
$
135.5

Ìý
$
328.0

Ìý
$
175.1

Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
EBITDA
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
U.S. Iron Ore
$
296.0

Ìý
$
155.0

Ìý
$
368.5

Ìý
$
212.9

Corporate and Other1
(74.9
)
Ìý
(69.3
)
Ìý
(158.6
)
Ìý
(92.8
)
Total EBITDA
$
221.1

Ìý
$
85.7

Ìý
$
209.9

Ìý
$
120.1

Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Adjusted EBITDA:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
U.S. Iron Ore
$
301.3

Ìý
$
161.5

Ìý
$
378.4

Ìý
$
225.6

Corporate and Other1
(25.6
)
Ìý
(26.0
)
Ìý
(50.4
)
Ìý
(50.5
)
Total Adjusted EBITDA
$
275.7

Ìý
$
135.5

Ìý
$
328.0

Ìý
$
175.1

Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
1Corporate and Other includes immaterial costs related to the HBI project.
The following table summarizes our depreciation, depletion and amortization expense and capital additions:
Ìý
(In Millions)
Ìý
Three Months Ended
June 30,
Ìý
Six Months Ended
June 30,
Ìý
2018
Ìý
2017
Ìý
2018
Ìý
2017
Depreciation, depletion and amortization:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
U.S. Iron Ore
$
15.6

Ìý
$
16.7

Ìý
$
31.4

Ìý
$
33.1

Corporate and Other
1.4

Ìý
1.6

Ìý
2.8

Ìý
3.7

Total depreciation, depletion and amortization
$
17.0

Ìý
$
18.3

Ìý
$
34.2

Ìý
$
36.8

Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Capital additions1:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
U.S. Iron Ore
$
26.7

Ìý
$
24.6

Ìý
$
45.4

Ìý
$
51.7

Corporate and Other2
43.7

Ìý
—

Ìý
103.9

Ìý
—

Total capital additions
$
70.4

Ìý
$
24.6

Ìý
$
149.3

Ìý
$
51.7

Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
1ÌýIncludes cash paid for capital additions of $114.4 million, including deposits of $72.3 million, and an increase in non-cash accruals of $34.9 million for the six months ended June 30, 2018 compared to cash paid for capital additions of $48.5 million, including deposits of $5.1 million, and an increase in non-cash accruals of $3.2 million for the six months ended June 30, 2017.
2ÌýIncludes capital additions related to our HBI project.
Ìý
(In Millions)
Ìý
JuneÌý30,
2018
Ìý
DecemberÌý31,
2017
Land rights and mineral rights
$
549.6

Ìý
$
549.6

Office and information technology
65.1

Ìý
65.8

Buildings
84.0

Ìý
85.2

Mining equipment
531.2

Ìý
533.9

Processing equipment
616.0

Ìý
610.9

Electric power facilities
56.9

Ìý
56.9

Land improvements
24.2

Ìý
23.7

Asset retirement obligation
16.9

Ìý
16.9

Other
25.2

Ìý
25.2

Construction in-progress
102.2

Ìý
32.6

Ìý
2,071.3

Ìý
2,000.7

Allowance for depreciation and depletion
(990.0
)
Ìý
(966.9
)
Ìý
$
1,081.3

Ìý
$
1,033.8

Reconciliation of Assets from Segment to Consolidated [Table Text Block]
A summary of assets by segment is as follows:
Ìý
(In Millions)
Ìý
JuneÌý30,
2018
Ìý
DecemberÌý31,
2017
Assets:
Ìý
Ìý
Ìý
U.S. Iron Ore
$
1,822.8

Ìý
$
1,500.6

Corporate and Other1
1,183.4

Ìý
1,314.0

Assets of Discontinued Operations
45.3

Ìý
138.8

Total assets
$
3,051.5

Ìý
$
2,953.4

Ìý
1Corporate and Other includes assets related to the HBI project.