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Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES

v3.20.1
GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES
 3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] Ìý
Goodwill and Intangible Assets Disclosure [Text Block]
Goodwill
The increase in the balance of Goodwill as of MarchÌý31, 2020 is due to the preliminary assignment of $141.2 million to Goodwill in the first quarter of 2020 based on the preliminary purchase price allocation for the acquisition of AK Steel. The carrying amount of goodwill related to our Mining and Pelletizing segment was $2.1 million as of both MarchÌý31, 2020 and DecemberÌý31, 2019.
Intangible Assets and Liabilities
The following is a summary of our intangible assets and liability:
Ìý
Ìý
Ìý
(In Millions)
Ìý
Classification
Ìý
Gross Amount
Ìý
Accumulated Amortization
Ìý
Net Amount
As of March 31, 2020
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Intangible assets:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Customer relationships
Intangible assets, net
Ìý
$
91.0

Ìý
$
(0.5
)
Ìý
$
90.5

Developed technology
Intangible assets, net
Ìý
61.0

Ìý
(0.3
)
Ìý
60.7

Trade names and trademarks
Intangible assets, net
Ìý
11.0

Ìý
(0.1
)
Ìý
10.9

Mining permits
Intangible assets, net
Ìý
72.2

Ìý
(24.3
)
Ìý
47.9

Total intangible assets
Ìý
Ìý
$
235.2

Ìý
$
(25.2
)
Ìý
$
210.0

Intangible liability:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Above-market supply contract
Intangible liability, net
Ìý
$
(140.0
)
Ìý
$
2.1

Ìý
$
(137.9
)
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
As of December 31, 2019
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Intangible assets:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Mining permits
Intangible assets, net
Ìý
$
72.2

Ìý
$
(24.1
)
Ìý
$
48.1


Amortization expense related to intangible assets was $1.1 million and $0.2 million for the three months ended MarchÌý31, 2020 and 2019, respectively, and is recognized in Selling, general and administrative expenses in the Statements of Unaudited Condensed Consolidated Operations.
Estimated future amortization expense related to intangible assets at MarchÌý31, 2020 is as follows:
Ìý
Ìý
(In Millions)
Years ending December 31,
Ìý
Ìý
2020 (remaining period of the year)
Ìý
$
8.1

2021
Ìý
10.8

2022
Ìý
10.8

2023
Ìý
10.8

2024
Ìý
10.8

2025
Ìý
10.8


Income from amortization of the intangible liability was $2.1 million for the three months ended MarchÌý31, 2020 and is recognized in Cost of goods sold in the Statements of Unaudited Condensed Consolidated Operations.
Estimated future amortization income related to the intangible liability at MarchÌý31, 2020 is as follows:
Ìý
Ìý
(In Millions)
Years ending December 31,
Ìý
Ìý
2020 (remaining period of the year)
Ìý
$
7.0

2021
Ìý
10.9

2022
Ìý
10.9

2023
Ìý
10.9

2024
Ìý
10.9

2025
Ìý
10.9