Cleveland-Cliffs Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of Derivative Instruments In Statement Of Financial Position, Fair Value

The following table presents the fair value of our derivative instruments and the classification of each in the Statements of Consolidated Financial Position as of December 31, 2012 and December 31, 2011:



	(In Millions)
	Derivative Assets						Derivative Liabilities
	December 31, 2012			December 31, 2011			December 31, 2012			December 31, 2011
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments under ASC 815:
Foreign Exchange Contracts	Derivative assets	$	16.2	Derivative assets	$	5.2	Other current liabilities	$	1.9	Other current liabilities	$	3.5
Total derivatives designated as hedging instruments under ASC 815		$	16.2		$	5.2		$	1.9		$	3.5
Derivatives not designated as hedging instruments under ASC 815:
Foreign Exchange Contracts	Derivative assets	$	—	Derivative assets	$	2.8		$	—		$	—
Customer Supply Agreements	Derivative assets	58.9		Derivative assets	72.9			—			—
Provisional Pricing Arrangements	Derivative assets	3.5		Derivative assets	1.2		Other current liabilities	11.3		Other current liabilities	19.5
	Accounts receivable, net	—		Accounts receivable, net	83.8			—			—
Total derivatives not designated as hedging instruments under ASC 815		$	62.4		$	160.7		$	11.3		$	19.5
Total derivatives		$	78.6		$	165.9		$	13.2		$	23.0

Schedule Of Derivative Gains (Losses) Recognized In Accumulated Other Comprehensive Income

The following summarizes the effect of our derivatives designated as hedging instruments, net of tax in Accumulated other comprehensive loss and the Statements of Consolidated Operations for the years ended December 31, 2012, 2011 and 2010:



	(In Millions)
Derivatives in Cash Flow	Amount of Gain (Loss) Recognized in Accumulated OCI on Derivative							Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings	Amount of Gain Reclassified from Accumulated OCI into Earnings
Hedging Relationships	(Effective Portion)							(Effective Portion)	(Effective Portion)
	Year Ended December 31,								Year Ended December 31,
	2012			2011		2010			2012		2011		2010
Australian Dollar Foreign Exchange Contracts (hedge designation)	$	20.2		$	1.8	$	1.9	Product revenues	$	14.8	$	2.6	$	—
Canadian Dollar Foreign Exchange Contracts (hedge designation)	6.7			—		—		Cost of goods sold and operating expenses	3.3		—		—
Australian Dollar Foreign Exchange Contracts (prior to de-designation)	—			—		—		Product revenues	—		0.7		3.2
Treasury Locks	(1.3		)	—		—		Changes in fair value of foreign currency contracts, net	—		—		—
Total	$	25.6		$	1.8	1.9			$	18.1	$	3.3	$	3.2

Schedule Of Derivatives Not Designated As Hedging Instruments Statements Of Financial Performance Location Table

The following summarizes the effect of our derivatives that are not designated as hedging instruments in the Statements of Consolidated Operations for the years ended December 31, 2012, 2011 and 2010:



(In Millions)
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain/(Loss) Recognized in Income on Derivative
		Year Ended December 31,
		2012			2011		2010
Foreign Exchange Contracts	Product revenues	$	—		$	1.0	$	11.1
Foreign Exchange Contracts	Other income (expense)	0.3			101.9		39.8
Foreign Exchange Contracts	Income (Loss) and Gain on Sale from Discontinued Operations, net of tax	(0.3		)	—		—
Treasury Locks	Changes in fair value of foreign currency contracts, net	(0.4		)	—		—
Customer Supply Agreements	Product revenues	171.4			178.0		120.2
Provisional Pricing Arrangements	Product revenues	(7.8		)	809.1		960.7
Total		$	163.2		$	1,090.0	$	1,131.8

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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