Cleveland-Cliffs Inc
2000 Annual Report
 
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Letter to Our Shareholders
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Earnings Per Share
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Report of Ernst & Young
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Cliffs Managed Mines
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NOTES  TO CONSOLIDATED FINANCIAL STATEMENTS

Note 6 – Lease Obligations
The Company and its ventures lease certain mining, production, data processing and other equipment under operating leases. The Company’s operating lease expense, including its share of ventures, was $12.9 million in 2000, $10.0 million in 1999 and $9.1 million in 1998.

Assets acquired under capital leases by the Company, including its share of ventures, were $10.5 million and $10.3 million, respectively, at December 31, 2000 and 1999. Corresponding accumulated amortization of capital leases included in respective allowances for depreciation was $5.9 million and $5.2 million at December 31, 2000 and 1999, respectively.

Future minimum payments under capital leases and noncancellable operating leases, including the Company’s share of ventures, at December 31, 2000 were:

  (In Millions)
Year Ending December 31 Capital Leases Operating Leases
    2001 $1.7 $13.3
    2002 1.4 10.9
    2003 .8 10.1
    2004 .5 7.5
    2005 .2 5.4
    2006 and thereafter .1 8.9
Total minimum lease payments 4.7 $56.1
   
Amounts representing interest .7  
 
Present value of net minimum lease payments $4.0  

The $60.8 million of total minimum lease payments comprises the Company’s direct obligation of $4.8 million and the Company’s share of ventures’ obligations of $56.0 million, which are largely non-recourse to the Company.

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