XML 24 R8.htm IDEA: XBRL DOCUMENT
v3.8.0.1

SEGMENT REPORTING | 9 Months Ended
--- | ---
Sep. 30, 2017
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 2017 or 2016. We evaluate segment performance based on sales margin, defined as revenues less cost of goods sold and operating expenses identifiable to each segment. Additionally, we evaluate performance on a segment basis, as well as a consolidated basis, based on EBITDA and Adjusted EBITDA. 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 are 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, 2017 and 2016, including a reconciliation of segment sales margin to Income 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,
| 2017 |  | 2016 |  | 2017 |  | 2016
Revenues from product sales and services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Iron Ore | $ | 596.7 |  |  | 85 | % |  | $ | 428.3 |  |  | 77 | % |  | $ | 1,354.2 |  |  | 78 | % |  | $ | 975.5 |  |  | 72 | %
Asia Pacific Iron Ore | 101.7 |  |  | 15 | % |  | 125.0 |  |  | 23 | % |  | 375.1 |  |  | 22 | % |  | 379.5 |  |  | 28 | %
Total revenues from product sales and services | $ | 698.4 |  |  | 100 | % |  | $ | 553.3 |  |  | 100 | % |  | $ | 1,729.3 |  |  | 100 | % |  | $ | 1,355.0 |  |  | 100 | %
Sales margin: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Iron Ore | $ | 157.2 |  |  |  |  | $ | 66.5 |  |  |  |  | $ | 349.8 |  |  |  |  | $ | 149.7 |  |  |
Asia Pacific Iron Ore | 3.0 |  |  |  |  | 18.9 |  |  |  |  | 51.2 |  |  |  |  | 58.1 |  |  |
Sales margin | 160.2 |  |  |  |  | 85.4 |  |  |  |  | 401.0 |  |  |  |  | 207.8 |  |  |
Other operating expense | (30.5 | ) |  |  |  | (50.7 | ) |  |  |  | (74.8 | ) |  |  |  | (98.7 | ) |  |
Other income (expense) | (116.7 | ) |  |  |  | (66.9 | ) |  |  |  | (266.2 | ) |  |  |  | 8.3 |  |  |
Income (loss) from continuing operations before income taxes | $ | 13.0 |  |  |  |  | $ | (32.2 | ) |  |  |  | $ | 60.0 |  |  |  |  | $ | 117.4 |  |  |
| (In Millions)
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Net Income (Loss) | $ | 52.9 |  |  | $ | (27.8 | ) |  | $ | 53.2 |  |  | $ | 118.5 |
Less: |  |  |  |  |  |  |
Interest expense, net | (28.9 | ) |  | (48.7 | ) |  | (103.1 | ) |  | (156.2 | )
Income tax benefit | 7.6 |  |  | 7.1 |  |  | 6.8 |  |  | 1.7 |
Depreciation, depletion and amortization | (21.5 | ) |  | (26.8 | ) |  | (66.3 | ) |  | (88.9 | )
EBITDA | $ | 95.7 |  |  | $ | 40.6 |  |  | $ | 215.8 |  |  | $ | 361.9 |
Less: |  |  |  |  |  |  |
Gain (loss) on extinguishment/restructuring of debt | $ | (88.6 | ) |  | $ | (18.3 | ) |  | $ | (165.4 | ) |  | $ | 164.1 |
Foreign exchange remeasurement | (2.4 | ) |  | (0.3 | ) |  | 11.2 |  |  | (1.2 | )
Impact of discontinued operations | 32.3 |  |  | (2.7 | ) |  | (13.6 | ) |  | (0.6 | )
Severance and contractor termination costs | — |  |  | — |  |  | — |  |  | (0.1 | )
Adjusted EBITDA | $ | 154.4 |  |  | $ | 61.9 |  |  | $ | 383.6 |  |  | $ | 199.7 |
EBITDA |  |  |  |  |  |  |
U.S. Iron Ore | $ | 168.9 |  |  | $ | 61.1 |  |  | $ | 381.8 |  |  | $ | 196.6 |
Asia Pacific Iron Ore | 2.3 |  |  | 21.2 |  |  | 54.9 |  |  | 69.6 |
Other | (75.5 | ) |  | (41.7 | ) |  | (220.9 | ) |  | 95.7 |
Total EBITDA | $ | 95.7 |  |  | $ | 40.6 |  |  | $ | 215.8 |  |  | $ | 361.9 |
Adjusted EBITDA: |  |  |  |  |  |  |
U.S. Iron Ore | $ | 174.2 |  |  | $ | 65.3 |  |  | $ | 399.8 |  |  | $ | 208.6 |
Asia Pacific Iron Ore | 4.9 |  |  | 23.7 |  |  | 61.7 |  |  | 73.2 |
Other | (24.7 | ) |  | (27.1 | ) |  | (77.9 | ) |  | (82.1 | )
Total Adjusted EBITDA | $ | 154.4 |  |  | $ | 61.9 |  |  | $ | 383.6 |  |  | $ | 199.7 |
| (In Millions)
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Depreciation, depletion and amortization: |  |  |  |  |  |  |
U.S. Iron Ore | $ | 16.5 |  |  | $ | 18.8 |  |  | $ | 49.6 |  |  | $ | 65.1 |
Asia Pacific Iron Ore | 3.3 |  |  | 6.3 |  |  | 11.3 |  |  | 19.2 |
Other | 1.7 |  |  | 1.7 |  |  | 5.4 |  |  | 4.6 |
Total depreciation, depletion and amortization | $ | 21.5 |  |  | $ | 26.8 |  |  | $ | 66.3 |  |  | $ | 88.9 |
Capital additions: |  |  |  |  |  |  |
U.S. Iron Ore | $ | 19.2 |  |  | $ | 25.8 |  |  | $ | 70.9 |  |  | $ | 39.5 |
Asia Pacific Iron Ore | 0.8 |  |  | 0.2 |  |  | 1.6 |  |  | 0.2 |
Other | 7.1 |  |  | 0.4 |  |  | 7.1 |  |  | 4.8 |
Total capital additions 1 | $ | 27.1 |  |  | $ | 26.4 |  |  | $ | 79.6 |  |  | $ | 44.5 |
1 Includes cash paid for capital additions of $78.9 million and $45.8 million and an increase in non-cash accruals of $0.7 million and a decrease in non-cash accruals of $1.3 million for the nine months ended September 30, 2017 and 2016, respectively.
A summary of assets by segment is as follows:
| (In Millions)
| September 30, 2017 |  | December 31, 2016
Assets: |  |  |
U.S. Iron Ore | $ | 1,467.2 |  |  | $ | 1,372.5 |
Asia Pacific Iron Ore | 139.4 |  |  | 155.1 |
Total segment assets | 1,606.6 |  |  | 1,527.6 |
Corporate | 316.7 |  |  | 396.3 |
Total assets | $ | 1,923.3 |  |  | $ | 1,923.9 |

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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration