Cleveland-Cliffs Inc
2000 Annual Report
 
Company Profile
Core Values
Comparative Hightlights
Letter to Our Shareholders
Management's Discussion
Financial Information
Notes to Consolidated Financial Statements
Accounting Policies
Accounting and Disclosure Changes
Investments in Associated Companies
Segment Reporting
Environmental Obligations
Long-Term Debt
Lease Obligations
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Income Taxes
Fair Value of Financial Instruments
Stock Plans
Shareholders' Equity
Earnings Per Share
Non-Recurring Special Items
Commitments & Contingencies
Report of Ernst & Young
Quarterly Results of Operations
Cliffs Managed Mines
Eleven Year Summary
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NOTES  TO CONSOLIDATED FINANCIAL STATEMENTS

Note 13 – Non-Recurring Special Items
In 1999, the Company lost more than one million tons of iron ore pellet sales to Rouge Industries as a result of the extended shutdown of two blast furnaces following an explosion at the power plant that supplies Rouge. In 2000, the Company recorded a pre-tax insurance recovery and received proceeds on the claim of $15.3 million ($9.9 million after-tax). The Company continues to pursue modest additional recoveries, but given the complexity of the insurance issues, any additional amounts will not be recorded until all outstanding matters are resolved.

The Company held 842,000 shares of LTV common stock, which were originally valued at $11.5 million, or $13.65 per share. As of June 30, 2000, the investment was reclassified to “trading” and accordingly changes in market value are recognized in earnings as they occurred. The Company recognized a reduction to 2000 earnings of $10.9 million pretax ($7.1 million after-tax) related to the investment. In August, 2000, the Company commenced a program to reduce its investment in the LTV common stock and through December 31, had sold 300,000 shares, with the balance sold in January, 2001.

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