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

Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Financial Instruments (Tables)

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2011

Fair Value, Assets and Liabilities Measured on Recurring Basis


	(In Millions)
	June 30, 2011
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	$	130.0	$	-		$	-	$	130.0
Derivative assets		-		29.9	(1)		64.0		93.9
U.S. marketable securities		15.1		-			-		15.1
International marketable securities		41.8		-			-		41.8
Foreign exchange contracts		-		30.4			-		30.4

Total	$	186.9	$	60.3		$	64.0	$	311.2

(1)	Derivative assets includes $14.1 million classified as Accounts receivable on the Statement of Unaudited Condensed Consolidated Financial Position as of June 30, 2011. Refer to NOTE 3 - DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES for further information.


	(In Millions)
	December 31, 2010
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	$	1,307.2	$	-	$	-	$	1,307.2
Derivative assets		-		-		45.6		45.6
U.S. marketable securities		22.0		-		-		22.0
International marketable securities		63.9		-		-		63.9
Foreign exchange contracts		-		39.0		-		39.0

Total	$	1,393.1	$	39.0	$	45.6	$	1,477.7

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation


	(In Millions)
	Derivative Assets
	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Beginning balance	$	68.1	$	171.0	$	45.6	$	63.2
Total gains (losses)
Included in earnings		46.5		437.7		91.1		799.8
Included in other comprehensive income		-		-		-		-
Settlements		(30.6)		(369.8)		(52.7)		(624.1)
Transfers out of Level 3		(20.0)		-		(20.0)		-

Ending balance - June 30	$	64.0	$	238.9	$	64.0	$	238.9


Total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses on assets and liabilities still held at the reporting date	$	46.5	$	400.9	$	91.1	$	639.8

Carrying Value and Fair Value of Financial Instruments Disclosure


	(In Millions)
	June 30, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term receivables:
Customer supplemental payments	$	22.3	$	19.9	$	22.3	$	19.5
ArcelorMittal USA - Ispat receivable		29.7		35.0		32.8		38.9
Other		8.7		8.7		8.1		8.1

Total long-term receivables ⁽¹⁾	$	60.7	$	63.6	$	63.2	$	66.5

Long-term debt:
Term loan - $1.25 billion	$	1,187.5	$	1,187.5	$	-	$	-
Senior notes - $700 million		699.3		684.0		-		-
Senior notes - $1.3 billion		1,289.1		1,299.9		990.3		972.5
Senior notes - $400 million		397.9		430.2		397.8		422.8
Senior notes - $325 million		325.0		353.9		325.0		355.6
Customer borrowings		5.1		5.1		4.0		4.0

Total long-term debt	$	3,903.9	$	3,960.6	$	1,717.1	$	1,754.9

(1) Includes current portion.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

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-Publisher FASB
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+ Details

- Definition

Tabular disclosure of the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods. Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References

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+ Details