Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

v2.4.0.6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]  
Fair Value Of Assets And Liabilities
The following represents the assets and liabilities of the Company measured at fair value at March 31, 2013 and December 31, 2012:
 
(In Millions)
 
March 31, 2013
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
$
135.0

 
$
—

 
$
—

 
$
135.0

Derivative assets
—

 
—

 
53.3

 
53.3

Marketable securities
30.0

 
—

 
—

 
30.0

Foreign exchange contracts
—

 
13.1

 
—

 
13.1

Total
$
165.0

 
$
13.1

 
$
53.3

 
$
231.4

Liabilities:

 

 

 

Derivative liabilities
$
—

 
$
—

 
$
6.8

 
$
6.8

Foreign exchange contracts
—

 
8.5

 
—

 
8.5

Total
$
—

 
$
8.5

 
$
6.8

 
$
15.3

 
(In Millions)
 
December 31, 2012
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
$
100.0

 
$
—

 
$
—

 
$
100.0

Derivative assets
—

 
—

 
62.4

 
62.4

Marketable securities
27.0

 
—

 
—

 
27.0

Foreign exchange contracts
—

 
16.2

 
—

 
16.2

Total
$
127.0

 
$
16.2

 
$
62.4

 
$
205.6

Liabilities:

 

 

 

Derivative liabilities
$
—

 
$
—

 
$
11.3

 
$
11.3

Foreign exchange contracts
—

 
1.9

 
—

 
1.9

Total
$
—

 
$
1.9

 
$
11.3

 
$
13.2

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques
The following table illustrates information about quantitative inputs and assumptions for the derivative assets and derivative liabilities categorized in Level 3 of the fair value hierarchy:
Qualitative/Quantitative Information About Level 3 Fair Value Measurements
($ in millions)
Fair Value at
 
Balance Sheet Location
 
Valuation Technique
 
Unobservable Input
 
Range
(Weighted Average)
3/31/2013
Provisional Pricing Arrangements
$
3.9

 
Derivative assets
 
Market Approach
 
Managements
Estimate of 62% Fe
 
$137
 
$
6.8

 
Other current liabilities
 
 
 
 
 
 
Customer Supply Agreement
$
49.4

 
Derivative assets
 
Market Approach
 
Hot-Rolled Steel Estimate
 
$600 - $645 ($630)
Fair Value, Assets and Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation
The following table represents a reconciliation of the changes in fair value of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2013 and 2012.
 
(In Millions)
 
Derivative Assets
(Level 3)
 
Derivative Liabilities
(Level 3)
 
Three Months Ended
March 31,
 
Three Months Ended
March 31,
 
2013
 
2012
 
2013
 
2012
Beginning balance - January 1
$
62.4

 
$
157.9

 
$
(11.3
)
 
$
(19.5
)
Total gains

 

 
 
 
 
Included in earnings
28.0

 
43.3

 
(6.8
)
 
(1.1
)
Included in other comprehensive income
—

 
—

 
—

 
—

Settlements
(37.1
)
 
(132.0
)
 
11.3

 
19.5

Transfers into Level 3
—

 
—

 
—

 
—

Transfers out of Level 3
—

 
—

 
—

 
—

Ending balance - March 31
$
53.3

 
$
69.2

 
$
(6.8
)
 
$
(1.1
)
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) on assets (liabilities) still held at the reporting date
$
28.0

 
$
43.3

 
$
(6.8
)
 
$
(1.1
)
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, 2013 and December 31, 2012 were as follows:
 
 
 
(In Millions)
 
 
 
March 31, 2013
 
December 31, 2012
 
Classification
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Other receivables:
 
 
 
 
 
 
 
 
 
Customer supplemental payments
Level 2
 
$
16.7

 
$
16.1

 
$
22.3

 
$
21.3

ArcelorMittal USA—Receivable
Level 2
 
17.4

 
19.1

 
19.3

 
21.3

Other
Level 2
 
10.5

 
10.5

 
10.9

 
10.9

Total receivables
 
 
$
44.6

 
$
45.7

 
$
52.5

 
$
53.5

Long-term debt:
 
 
 
 
 
 
 
 
 
Term loan—$1.25 billion
Level 2
 
$
—

 
$
—

 
$
753.0

 
$
753.0

Senior notes—$700 million
Level 2
 
699.4

 
751.4

 
699.4

 
759.4

Senior notes—$1.3 billion
Level 2
 
1,289.4

 
1,513.2

 
1,289.4

 
1,524.7

Senior notes—$400 million
Level 2
 
398.3

 
458.8

 
398.2

 
464.3

Senior notes—$500 million
Level 2
 
495.9

 
527.7

 
495.7

 
528.4

Revolving loan
Level 2
 
550.0

 
550.0

 
325.0

 
325.0

Total long-term debt
 
 
$
3,433.0

 
$
3,801.1

 
$
3,960.7

 
$
4,354.8

Fair Value, Assets Measured on Nonrecurring Basis
The following table presents information about the impairment charges on both financial and nonfinancial assets that were measured on a fair value basis for the year ended December 31, 2012. The table also indicates the fair value hierarchy of the valuation techniques used to determine such fair value. We had no financial assets and liabilities measured at fair value on a non-recurring basis at March 31, 2013.
 
(In Millions)
 
December 31, 2012
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:
 
 
 
 
 
 
 
Investment in ventures impairment -
     Amapá
$
—

 
$
—

 
$
72.5

 
$
72.5