Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.7.0.1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value, by Balance Sheet Grouping [Table Text Block]
The following represents the assets and liabilities of the Company measured at fair value at March 31, 2017 and December 31, 2016:    
 
(In Millions)
 
March 31, 2017
Description
Quoted Prices in Active
Markets for Identical Assets/Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents
$
90.0

 
$
45.0

 
$
—

 
$
135.0

Derivative assets
—

 
—

 
59.4

 
59.4

Loans to and accounts receivable from the Canadian Entities
—

 
—

 
49.0

 
49.0

Total
$
90.0

 
$
45.0

 
$
108.4

 
$
243.4

Liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
—

 
$
—

 
$
9.1

 
$
9.1

Contingent liabilities
—

 
—

 
37.5

 
37.5

Total
$
—

 
$
—

 
$
46.6

 
$
46.6

 
(In Millions)
 
December 31, 2016
Description
Quoted Prices in Active
Markets for Identical Assets/Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents
$
177.0

 
$
—

 
$
—

 
$
177.0

Derivative assets
—

 
1.5

 
31.6

 
33.1

Loans to and accounts receivable from the Canadian Entities
—

 
—

 
48.6

 
48.6

Total
$
177.0

 
$
1.5

 
$
80.2

 
$
258.7

Liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
—

 
$
—

 
$
0.5

 
$
0.5

Contingent liabilities
—

 
—

 
37.2

 
37.2

Total
$
—

 
$
—

 
$
37.7

 
$
37.7

Fair Value, Recurring and Nonrecurring, Valuation Techniques
The following table illustrates information about quantitative inputs and assumptions for the assets and liabilities categorized in Level 3 of the fair value hierarchy:
Qualitative/Quantitative Information About Level 3 Fair Value Measurements
 
 
(In Millions)
Fair Value at March 31, 2017
 
Balance Sheet Location
 
Valuation Technique
 
Unobservable Input
 
Range or Point Estimate per dry metric ton
(Weighted Average)
 
Provisional pricing arrangements
 
$
23.5

 
Other current assets
 
Market Approach
 
Management's
Estimate of Platts 62% Price
 
$79
 
 
 
 
Hot-Rolled Coil Steel Estimate
 
$651
Provisional pricing arrangements
 
$
9.1

 
Other current liabilities
 
Market Approach
 
Management's
Estimate of Platts 62% Price
 
$79
Customer supply agreement
 
$
35.9

 
Other current assets
 
Market Approach
 
Hot-Rolled Coil Steel Estimate
 
$520 - $630 ($575)
Loans to and accounts receivable from the Canadian Entities
 
$
49.0

 
Loans to and accounts receivable from the Canadian Entities
 
*
 
*
 
N/A
Contingent liabilities
 
$
37.5

 
Other liabilities
 
*
 
*
 
N/A
 
 
 
 
 
 
 
 
 
 
 
* To assess the fair value and recoverability of the amounts receivable from the Canadian Entities, we estimated the fair value of the underlying net assets of the Canadian Entities available for distribution to their creditors in relation to the estimated creditor claims and the priority of those claims. The recorded expenses include an accrual for the estimated probable loss related to claims that may be asserted against us. We are not able to estimate reasonably a range of possible losses in excess of the accrual because there are significant factual and legal issues to be resolved. Our estimates involve significant judgment. Our estimates are based on currently available information, an assessment of the validity of certain claims and estimated payments by the Canadian Entities.
Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation
 
(In Millions)
 
Level 3 Assets
 
Three Months Ended
March 31,
 
2017
 
2016
Beginning balance
$
80.2

 
$
80.7

Total gains (losses)
 
 
 
Included in earnings
42.5

 
8.2

Settlements
(14.3
)
 
(10.0
)
Transfers into Level 3
—

 
—

Transfers out of Level 3
—

 
—

Ending balance - March 31
$
108.4

 
$
78.9

Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date
$
33.2

 
$
3.6

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
 
(In Millions)
 
Level 3 Liabilities
 
Three Months Ended
March 31,
 
2017
 
2016
Beginning balance
$
(37.7
)
 
$
(135.8
)
Total gains (losses)
 
 
 
Included in earnings
(8.9
)
 
(7.9
)
Settlements
—

 
75.7

Transfers into Level 3
—

 
—

Transfers out of Level 3
—

 
—

Ending balance - March 31
$
(46.6
)
 
$
(68.0
)
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date
$
(9.1
)
 
$
(0.8
)
Schedule Of Carrying Value And Fair Value Of Financial Instruments
A summary of the carrying amount and fair value of other financial instruments at March 31, 2017 and December 31, 2016 were as follows:
 
 
 
(In Millions)
 
 
 
March 31, 2017
 
December 31, 2016
 
Classification
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Long-term debt:
 
 
 
 
 
 
 
 
 
Secured Notes
 
 
 
 
 
 
 
 
 
First Senior Lien Notes —$540 million
Level 1
 
$
508.6

 
$
583.9

 
$
506.3

 
$
595.0

1.5 Senior Lien Notes —$218.5 million
Level 2
 
—

 
—

 
284.2

 
229.5

Second Senior Lien Notes —$544.2 million
Level 1
 
—

 
—

 
339.1

 
439.7

Unsecured Notes
 
 
 
 
 
 
 
 
 
Senior Notes—$500 million
Level 1
 
491.7

 
486.3

 
—

 
—

Senior Notes—$400 million
Level 1
 
88.5

 
88.4

 
224.5

 
219.6

Senior Notes—$1.3 billion
Level 1
 
414.5

 
358.9

 
528.4

 
455.8

Senior Notes—$700 million
Level 1
 
137.9

 
134.3

 
308.2

 
283.1

ABL Facility
Level 2
 
—

 
—

 
—

 
—

Fair value adjustment to interest rate hedge
Level 2
 
1.7

 
1.7

 
1.9

 
1.9

Total long-term debt
 
 
$
1,642.9

 
$
1,653.5

 
$
2,192.6

 
$
2,224.6