LEASE OBLIGATIONS

12 Months Ended

Dec. 31, 2015

NOTE 10 - LEASE OBLIGATIONS

We lease certain mining, production and other equipment under operating and capital leases. The leases are for varying lengths, generally at market interest rates and contain purchase and/or renewal options at the end of the terms. Our operating lease expense was $12.0 million, $17.8 million and $23.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. Capital lease assets were $32.5 million and $72.7 million at December 31, 2015 and 2014, respectively. In 2014 we had impairment charges of $64.0 million on our capital lease assets at our Asia Pacific Iron Ore operations. Corresponding accumulated amortization of capital leases included in respective allowances for depreciation were $8.7 million and $14.9 million at December 31, 2015 and 2014, respectively.

Future minimum payments under capital leases and non-cancellable operating leases at December 31, 2015 are as follows:



	(In Millions)
	Capital Leases			Operating Leases
2016	$	24.3		$	8.4
2017	22.3			7.2
2018	18.0			6.5
2019	10.0			4.8
2020	9.0			4.9
2021 and thereafter	9.0			5.0
Total minimum lease payments	$	92.6		$	36.8
Amounts representing interest	18.5
Present value of net minimum lease payments	$	74.1	⁽¹⁾


⁽¹⁾	The total is comprised of $17.9 million and $56.2 million classified as Other current liabilities and Other liabilities, respectively, in the Statements of Consolidated Financial Position at December 31, 2015.