Cleveland-Cliffs Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 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 Unaudited Condensed Consolidated Financial Position as of September 30, 2012 and December 31, 2011:



	(In Millions)
	Derivative Assets						Derivative Liabilities
	September 30, 2012			December 31, 2011			September 30, 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	$	22.4	Derivative assets	$	5.2	Other current liabilities	$	1.3	Other current liabilities	$	3.5
Total derivatives designated as hedging instruments under ASC 815		$	22.4		$	5.2		$	1.3		$	3.5
Derivatives not designated as hedging instruments under ASC 815:
Foreign Exchange Contracts		$	—	Derivative assets	$	2.8		$	—		$	—
Foreign Exchange Contracts	Assets held for sale	1.1			—			—			—
Customer Supply Agreements	Derivative assets	54.5		Derivative assets	72.9			—			—
Provisional Pricing Arrangements	Derivative assets	1.4		Derivative assets	1.2		Other current liabilities	11.7		Other current liabilities	19.5
		—		Accounts receivable	83.8			—			—
Total derivatives not designated as hedging instruments under ASC 815		$	57.0		$	160.7		$	11.7		$	19.5
Total derivatives		$	79.4		$	165.9		$	13.0		$	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 Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2012 and 2011:



	(In Millions)
Derivatives in Cash Flow	Amount of Gain (Loss) Recognized in OCI on Derivative					Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain Reclassified from Accumulated OCI into Income
Hedging Relationships	(Effective Portion)					(Effective Portion)	(Effective Portion)
	Three Months Ended September 30,						Three Months Ended September 30,
	2012		2011				2012		2011
Australian Dollar Foreign Exchange Contracts (hedge designation)	$	1.4	$	(15.2	)	Product revenues	$	5.1	$	1.5
Canadian Dollar Foreign Exchange Contracts (hedge designation)	11.3		—			Cost of goods sold and operating expenses	1.3		—
Total	$	12.7	$	(15.2	)		$	6.4	$	1.5
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2012		2011				2012		2011
Australian Dollar Foreign Exchange Contracts (hedge designation)	$	7.5	$	(10.3	)	Product revenues	$	7.8	$	2.5
Canadian Dollar Foreign Exchange Contracts (hedge designation)	6.2		—			Cost of goods sold and operating expenses	1.6		—
Australian Dollar Foreign Exchange Contracts (prior to de-designation)	—		—			Product revenues	—		0.7
Total	$	13.7	$	(10.3	)		$	9.4	$	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 Unaudited Condensed Consolidated Operations for the three and nine months ended September 30, 2012 and 2011:



		(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
		Three Months Ended September 30,						Nine Months Ended September 30,
		2012			2011			2012			2011
Foreign Exchange Contracts	Product revenues	$	—		$	—		$	—		$	1.0
Foreign Exchange Contracts	Other income (expense)	—			(6.2		)	0.3			100.5
Foreign Exchange Contracts	Income (Loss) from Discontinued Operations	1.1			—			1.1			—
Customer Supply Agreements	Product revenues	49.8			53.8			131.8			124.9
Provisional Pricing Arrangements	Product revenues	(10.3		)	193.0			(10.3		)	623.5
Total		$	40.6		$	240.6		$	122.9		$	849.9

- 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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