Cleveland-Cliffs Inc
2000 Annual Report
 
Company Profile
Core Values
Comparative Hightlights
Letter to Our Shareholders
Management's Discussion
2000 Versus 1999
1999 Versus 1998
Cash Flow
Capitalization
Iron Ore
Ferrous Metallics
Actuarial Assumptions
Environmental Costs
Market Risk
Forward Looking
Financial Information
Notes to Consolidated Financial Statements
Report of Ernst & Young
Quarterly Results of Operations
Cliffs Managed Mines
Eleven Year Summary
Investor & Corporate Information
Officers and Directors
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MANAGEMENT'S  DISCUSSION

Actuarial Assumptions
As a result of a decrease in long-term interest rates, the Company re-evaluated the rates used to calculate its pension and other postretirement benefit (“OPEB”) obligations. The discount rate used to calculate the Company’s pension and OPEB obligations was decreased to 7.75 percent at December 31, 2000 from 8.0 percent at December 31, 1999. The change in the discount rate assumption is projected to increase pension and OPEB expense for 2001 by approximately $.3 million.

Additionally, as a result of recent experience, the Company increased the medical trend rate assumption it utilizes in determining its OPEB obligation. An annual rate of increase in the per capita cost of covered healthcare benefits of 8.0 percent was assumed for 2001 (6.5 percent in 2000) decreasing to an annual rate of 5.0 percent in 2008 and annually thereafter. The increase in the trend rate assumption will increase the Company’s OPEB expense by $1.2 million in 2001.

The Company makes contributions to the pension plans within income tax deductibility restrictions in accordance with statutory requirements. In 2000, the Company contributed $1.7 million, including its share of ventures funding, an increase of $.6 million from 1999.

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