XML 23 R9.htm IDEA: XBRL DOCUMENT
v3.5.0.2

SEGMENT REPORTING | 9 Months Ended
--- | ---
Sep. 30, 2016
Segment Reporting [Abstract] |
SEGMENT REPORTING | NOTE 2 - SEGMENT REPORTING Our continuing operations are organized and managed according to geographic location: U.S. Iron Ore and Asia Pacific Iron Ore. Our U.S. Iron Ore segment is a major supplier of iron ore pellets to the North American steel industry from our mines and pellet plants located in Michigan and Minnesota. The Asia Pacific Iron Ore segment is located in Western Australia and provides iron ore to the seaborne market for Asian steel producers. There were no intersegment revenues in the first nine months of 2016 or 2015. We have historically evaluated segment performance based on sales margin, defined as revenues less cost of goods sold, and operating expenses identifiable to each segment. Additionally, we evaluate segment performance based on the key indicators of EBITDA, defined as net income (loss) before interest, income taxes, depreciation, depletion and amortization, and Adjusted EBITDA, defined as EBITDA excluding certain items such as impacts of impairment of other long-lived assets, discontinued operations, extinguishment/restructuring of debt, severance and contractor termination costs, foreign currency remeasurement, and intersegment corporate allocations of SG&A costs. These measures allow management and investors to focus on our ability to service our debt, as well as, illustrate how the business and each operating segment is performing. Additionally, EBITDA and Adjusted EBITDA assist management and investors in their analysis and forecasting as these measures approximate the cash flows associated with operational earnings. The following tables present a summary of our reportable segments for the three and nine months ended September 30, 2016 and 2015, including a reconciliation of segment sales margin to Income (Loss) from Continuing Operations Before Income Taxes and a reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA:
| (In Millions)
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
Revenues from product sales and services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Iron Ore | $ | 428.3 |  |  | 77 | % |  | $ | 471.0 |  |  | 79 | % |  | $ | 975.5 |  |  | 72 | % |  | $ | 1,152.5 |  |  | 75 | %
Asia Pacific Iron Ore | 125.0 |  |  | 23 | % |  | 122.2 |  |  | 21 | % |  | 379.5 |  |  | 28 | % |  | 384.8 |  |  | 25 | %
Total revenues from product sales and services | $ | 553.3 |  |  | 100 | % |  | $ | 593.2 |  |  | 100 | % |  | $ | 1,355.0 |  |  | 100 | % |  | $ | 1,537.3 |  |  | 100 | %
Sales margin: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Iron Ore | $ | 66.5 |  |  |  |  | $ | 48.7 |  |  |  |  | $ | 149.7 |  |  |  |  | $ | 177.7 |  |  |
Asia Pacific Iron Ore | 18.9 |  |  |  |  | 6.4 |  |  |  |  | 58.1 |  |  |  |  | 15.5 |  |  |
Sales margin | 85.4 |  |  |  |  | 55.1 |  |  |  |  | 207.8 |  |  |  |  | 193.2 |  |  |
Other operating expense | (50.7 | ) |  |  |  | (25.9 | ) |  |  |  | (98.7 | ) |  |  |  | (66.4 | ) |  |
Other income (expense) | (66.9 | ) |  |  |  | 17.4 |  |  |  |  | 8.3 |  |  |  |  | 221.7 |  |  |
Income (loss) from continuing operations before income taxes | $ | (32.2 | ) |  |  |  | $ | 46.6 |  |  |  |  | $ | 117.4 |  |  |  |  | $ | 348.5 |  |  |
| (In Millions)
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
Net Income (Loss) | $ | (27.8 | ) |  | $ | 6.0 |  |  | $ | 118.5 |  |  | $ | (690.5 | )
Less: |  |  |  |  |  |  |
Interest expense, net | (48.7 | ) |  | (62.3 | ) |  | (156.2 | ) |  | (170.7 | )
Income tax benefit (expense) | 7.1 |  |  | 4.8 |  |  | 1.7 |  |  | (167.3 | )
Depreciation, depletion and amortization | (26.8 | ) |  | (35.6 | ) |  | (88.9 | ) |  | (99.1 | )
EBITDA | $ | 40.6 |  |  | $ | 99.1 |  |  | $ | 361.9 |  |  | $ | (253.4 | )
Less: |  |  |  |  |  |  |
Impairment of other long-lived assets | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (3.3 | )
Impact of discontinued operations | (2.7 | ) |  | (44.8 | ) |  | (0.6 | ) |  | (865.9 | )
Gain (loss) on extinguishment/restructuring of debt | (18.3 | ) |  | 79.2 |  |  | 164.1 |  |  | 392.9 |
Severance and contractor termination costs | — |  |  | 2.2 |  |  | (0.1 | ) |  | (9.3 | )
Foreign exchange remeasurement | (0.3 | ) |  | 2.4 |  |  | (1.2 | ) |  | 15.2 |
Adjusted EBITDA | $ | 61.9 |  |  | $ | 60.1 |  |  | $ | 199.7 |  |  | $ | 217.0 |
EBITDA: |  |  |  |  |  |  |
U.S. Iron Ore | $ | 61.1 |  |  | $ | 69.2 |  |  | $ | 196.6 |  |  | $ | 239.6 |
Asia Pacific Iron Ore | 21.2 |  |  | 11.1 |  |  | 69.6 |  |  | 38.7 |
Other | (41.7 | ) |  | 18.8 |  |  | 95.7 |  |  | (531.7 | )
Total EBITDA | $ | 40.6 |  |  | $ | 99.1 |  |  | $ | 361.9 |  |  | $ | (253.4 | )
Adjusted EBITDA: |  |  |  |  |  |  |
U.S. Iron Ore | $ | 65.3 |  |  | $ | 72.3 |  |  | $ | 208.6 |  |  | $ | 254.6 |
Asia Pacific Iron Ore | 23.7 |  |  | 9.7 |  |  | 73.2 |  |  | 32.8 |
Other | (27.1 | ) |  | (21.9 | ) |  | (82.1 | ) |  | (70.4 | )
Total Adjusted EBITDA | $ | 61.9 |  |  | $ | 60.1 |  |  | $ | 199.7 |  |  | $ | 217.0 |
| (In Millions)
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
Depreciation, depletion and amortization: |  |  |  |  |  |  |
U.S. Iron Ore | $ | 18.8 |  |  | $ | 27.9 |  |  | $ | 65.1 |  |  | $ | 71.6 |
Asia Pacific Iron Ore | 6.3 |  |  | 6.1 |  |  | 19.2 |  |  | 19.1 |
Other | 1.7 |  |  | 1.6 |  |  | 4.6 |  |  | 5.2 |
Total depreciation, depletion and amortization | $ | 26.8 |  |  | $ | 35.6 |  |  | $ | 88.9 |  |  | $ | 95.9 |
Capital additions 1: |  |  |  |  |  |  |
U.S. Iron Ore | $ | 25.8 |  |  | $ | 15.0 |  |  | $ | 39.5 |  |  | $ | 35.8 |
Asia Pacific Iron Ore | 0.2 |  |  | 0.3 |  |  | 0.2 |  |  | 4.8 |
Other | 0.4 |  |  | 2.4 |  |  | 4.8 |  |  | 6.0 |
Total capital additions | $ | 26.4 |  |  | $ | 17.7 |  |  | $ | 44.5 |  |  | $ | 46.6 |
1 Includes capital lease additions and non-cash accruals. Refer to NOTE 17 - CASH FLOW INFORMATION. A summary of assets by segment is as follows:
| (In Millions)
| September 30, 2016 |  | December 31, 2015
Assets: |  |  |
U.S. Iron Ore | $ | 1,429.0 |  |  | $ | 1,476.4 |
Asia Pacific Iron Ore | 137.7 |  |  | 202.5 |
Total segment assets | 1,566.7 |  |  | 1,678.9 |
Corporate | 206.2 |  |  | 441.7 |
Assets of Discontinued Operations | — |  |  | 14.9 |
Total assets | $ | 1,772.9 |  |  | $ | 2,135.5 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration