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)
 9 Months Ended
Sep. 30, 2012
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 September 30, 2012 and December 31, 2011:
 
(In Millions)
 
September 30, 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:
 
 
 
 
 
 
 
Derivative assets
$
—

 
$
—

 
$
55.9

 
$
55.9

International marketable securities
25.3

 
—

 
—

 
25.3

Foreign exchange contracts
—

 
23.5

 
—

 
23.5

Total
$
25.3

 
$
23.5

 
$
55.9

 
$
104.7

Liabilities:

 

 

 

Derivative liabilities
$
—

 
$
—

 
$
11.7

 
$
11.7

Foreign exchange contracts
—

 
1.3

 
—

 
1.3

Total
$
—

 
$
1.3

 
$
11.7

 
$
13.0

 
(In Millions)
 
December 31, 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
$
351.2

 
$
—

 
$
—

 
$
351.2

Derivative assets
—

 
—

 
157.9

(1)
157.9

International marketable securities
27.1

 
—

 
—

 
27.1

Foreign exchange contracts
—

 
8.0

 
—

 
8.0

Total
$
378.3

 
$
8.0

 
$
157.9

 
$
544.2

Liabilities:

 

 

 

Derivative liabilities
$
—

 
$
—

 
$
19.5

 
$
19.5

Foreign exchange contracts
—

 
3.5

 
—

 
3.5

Total
$
—

 
$
3.5

 
$
19.5

 
$
23.0

(1)Derivative assets includes $83.8 million classified as Accounts receivable in the Statements of Unaudited Condensed Consolidated Financial Position as of December 31, 2011. Refer to NOTE 3 - DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES for further information.
Schedule Of Quantitative Inputs And Assumptions For Level 3 Assets And Liabilities
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)
9/30/2012
Provisional Pricing Arrangements
$
1.4

 
Derivative assets
 
Market Approach
 
Managements
Estimate of 62% Fe
 
$105 - $115 ($125)
 
$
11.7

 
Other current liabilities
 
 
 
 
 

Customer Supply Agreement
$
54.5

 
Derivative assets
 
Market Approach
 
Hot-Rolled Steel Estimate
 
$635 - $695 ($665)
Fair Value, Assets 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 and nine months ended September 30, 2012 and 2011.
 
(In Millions)
 
Derivative Assets (Level 3)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2012
 
2011
 
2012
 
2011
Beginning balance
$
83.9

 
$
64.0

 
$
157.9

 
$
45.6

Total gains

 

 

 

Included in earnings
24.9

 
53.8

 
129.6

 
144.9

Included in other comprehensive income
—

 
—

 
—

 
—

Settlements
(52.9
)
 
(50.0
)
 
(231.6
)
 
(102.7
)
Transfers into Level 3
—

 
—

 
—

 
—

Transfers out of Level 3
—

 
—

 
—

 
(20.0
)
Ending balance - September 30
$
55.9

 
$
67.8

 
$
55.9

 
$
67.8

Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date
$
24.9

 
$
53.8

 
$
129.6

 
$
144.9

Fair Value, Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation
 
(In Millions)
 
Derivative Liabilities (Level 3)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2012
 
2011
 
2012
 
2011
Beginning balance
$
(15.8
)
 
$
—

 
$
(19.5
)
 
$
—

Total losses
 
 
 
 
 
 
 
Included in earnings
4.1

 
—

 
(11.7
)
 
—

Included in other comprehensive income
—

 
—

 
—

 
—

Settlements
—

 
—

 
19.5

 
—

Transfers into Level 3
—

 
—

 
—

 
—

Transfers out of Level 3
—

 
—

 
—

 
—

Ending balance - September 30
$
(11.7
)
 
$
—

 
$
(11.7
)
 
$
—

Total losses for the period included in earnings attributable to the change in unrealized losses on assets still held at the reporting date
$
4.1

 
$
—

 
$
(11.7
)
 
$
—

Carrying Value And Fair Value Of Financial Instruments Disclosure
The carrying amount for certain financial instruments (e.g. Accounts receivable, Accounts payable and Accrued expenses) approximate fair value and, therefore, have been excluded from the table below. A summary of the carrying amount and fair value of other financial instruments at September 30, 2012 and December 31, 2011 were as follows:
 
 
 
(In Millions)
 
 
 
September 30, 2012
 
December 31, 2011
 
Classification
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Other receivables:
 
 
 
 
 
 
 
 
 
Customer supplemental payments
Level 2
 
$
5.6

 
$
5.2

 
$
22.3

 
$
20.8

ArcelorMittal USA—Receivable
Level 2
 
21.2

 
23.5

 
26.5

 
30.7

Other
Level 2
 
10.6

 
10.6

 
10.0

 
10.0

Total receivables
 
 
$
37.4

 
$
39.3

 
$
58.8

 
$
61.5

Long-term debt:
 
 
 
 
 
 
 
 
 
Term loan—$1.25 billion
Level 2
 
$
822.4

 
$
822.4

 
$
897.2

 
$
897.2

Senior notes—$700 million
Level 2
 
699.4

 
772.7

 
699.3

 
726.4

Senior notes—$1.3 billion
Level 2
 
1,289.3

 
1,576.3

 
1,289.2

 
1,399.4

Senior notes—$400 million
Level 2
 
398.2

 
467.4

 
398.0

 
448.8

Senior notes—$55 million
Level 2
 
55.0

 
62.8

 
325.0

 
348.7

Revolving loan
Level 2
 
250.0

 
250.0

 
—

 
—

Total long-term debt
 
 
$
3,514.3

 
$
3,951.6

 
$
3,608.7

 
$
3,820.5