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SEGMENT REPORTING | 3 Months Ended
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Mar. 31, 2019
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | NOTE 3 - SEGMENT REPORTING In alignment with our strategic goals, our Company’s continuing operations are organized and managed in two operating segments according to our differentiated products. Our Mining and Pelletizing 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. In our Metallics segment, we are currently constructing an HBI production plant in Toledo, Ohio. We expect to complete construction and begin production in 2020. We evaluate performance based on sales margin, defined as revenues less cost of goods sold 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 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 including a reconciliation of segment sales margin to Income (loss) from Continuing Operations Before Income Taxes and a reconciliation of Net loss to EBITDA and Adjusted EBITDA:
| (In Millions)
| Three Months Ended March 31,
| 2019 |  | 2018
Revenues from product sales and services: |  |  |
Mining and Pelletizing | $ | 157.0 |  |  | $ | 180.0 |
Sales margin: |  |  |
Mining and Pelletizing | $ | 30.9 |  |  | $ | 61.5 |
Other operating expense | (31.7 | ) |  | (31.2 | )
Other expense | (25.0 | ) |  | (28.0 | )
Income (loss) from continuing operations before income taxes | $ | (25.8 | ) |  | $ | 2.3 |
| (In Millions)
| Three Months Ended March 31,
| 2019 |  | 2018
Net loss | $ | (22.1 | ) |  | $ | (84.3 | )
Less: |  |  |
Interest expense, net | (25.1 | ) |  | (33.5 | )
Income tax benefit (expense) | 3.7 |  |  | (15.7 | )
Depreciation, depletion and amortization | (19.9 | ) |  | (23.9 | )
EBITDA | $ | 19.2 |  |  | $ | (11.2 | )
Less: |  |  |
Foreign exchange remeasurement | $ | 0.1 |  |  | $ | (0.4 | )
Impact of discontinued operations | — |  |  | (63.1 | )
Loss on extinguishment of debt | (0.3 | ) |  | — |
Severance costs | (1.7 | ) |  | — |
Adjusted EBITDA | $ | 21.1 |  |  | $ | 52.3 |
EBITDA: |  |  |
Mining and Pelletizing | $ | 42.8 |  |  | $ | 72.5 |
Metallics | (0.8 | ) |  | (0.3 | )
Corporate and Other (including discontinued operations) | (22.8 | ) |  | (83.4 | )
Total EBITDA | $ | 19.2 |  |  | $ | (11.2 | )
Adjusted EBITDA: |  |  |
Mining and Pelletizing | $ | 47.5 |  |  | $ | 77.1 |
Metallics | (0.8 | ) |  | (0.3 | )
Corporate | (25.6 | ) |  | (24.5 | )
Total Adjusted EBITDA | $ | 21.1 |  |  | $ | 52.3 |
The following table summarizes our depreciation, depletion and amortization expense and capital additions:
| (In Millions)
| Three Months Ended March 31,
| 2019 |  | 2018
Depreciation, depletion and amortization: |  |  |
Mining and Pelletizing | $ | 18.5 |  |  | $ | 15.8 |
Corporate | 1.4 |  |  | 1.4 |
Total depreciation, depletion and amortization | $ | 19.9 |  |  | $ | 17.2 |
Capital additions 1: |  |  |
Mining and Pelletizing | $ | 46.8 |  |  | $ | 18.7 |
Metallics | 82.4 |  |  | 60.0 |
Corporate | 0.1 |  |  | 0.2 |
Total capital additions | $ | 129.3 |  |  | $ | 78.9 |
1 Refer to NOTE 17 - CASH FLOW INFORMATION for additional information.
A summary of assets by segment is as follows:
| (In Millions)
| March 31, 2019 |  | December 31, 2018
Assets: |  |  |
Mining and Pelletizing | $ | 1,774.5 |  |  | $ | 1,694.1 |
Metallics | 350.0 |  |  | 265.9 |
Total segment assets | 2,124.5 |  |  | 1,960.0 |
Corporate and Other (including discontinued operations) | 1,181.8 |  |  | 1,569.6 |
Total assets | $ | 3,306.3 |  |  | $ | 3,529.6 |

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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