Investments in Affiliates (Notes)

12 Months Ended

Dec. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investments in Affiliates

Investments in Affiliates

We have investments in several businesses accounted for using the equity method of accounting. Investees and equity ownership percentages are presented below:

	Equity Ownership %
Combined Metals of Chicago, LLC	40.0%
Delaco Processing, LLC	49.0%
Rockport Roll Shop LLC	50.0%
Spartan Steel Coating, LLC	48.0%

Cost of products sold includes $6.6, $7.0 and $12.3 in 2018, 2017 and 2016 for our share of income of equity investees. As of December 31, 2018, our carrying cost of our investment in Spartan Steel exceeded our share of the underlying equity in net assets by $9.2. This difference is being amortized and the amortization expense is included in cost of products sold.

Summarized financial statement data for all investees is presented below:

	2018		2017		2016
Revenue	$	329.8	$	292.7	$	286.4
Gross profit	91.0		88.9		96.3
Net income (loss)	19.4		20.7		31.8

	2018		2017
Current assets	$	123.6	$	115.2
Noncurrent assets	74.4		73.5
Current liabilities	16.9		16.2
Noncurrent liabilities	54.2		58.9

We regularly transact business with these equity investees. Transactions with all equity investees for the years indicated are presented below:

	2018		2017		2016
Sales to equity investees	$	104.4	$	80.6	$	69.2
Purchases from equity investees	31.2		33.0		213.5

Outstanding receivables and payables with all equity investees as of the end of the year indicated are presented below:

	2018		2017
Accounts receivable from equity investees	$	1.9	$	0.7
Accounts payable to equity investees	6.4		4.1

Magnetation

In 2016, we made a cash payment (“Termination Payment”) of $36.6 to the Chapter 11 estate of Magnetation LLC (“Magnetation”), our former joint venture, in order to terminate our iron ore pellet offtake agreement with Magnetation and cease purchasing iron ore pellets from Magnetation. In connection with the payment of the Termination Payment to the bankruptcy estate, we recognized a charge in 2016 for the Termination Payment and a charge of $32.9 for the present value of remaining obligations under contracts with other third parties to transport pellets to our facilities. In the fourth quarter of 2017, we reached an agreement for transportation

services that provides a timeframe to begin using the rail cars that were idled after the termination of the pellet supply agreement. As a result, we recorded a credit of $19.3 during the fourth quarter of 2017 to reduce the unpaid liability.