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)

6 Months Ended

Jun. 30, 2012

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 June 30, 2012 and December 31, 2011:


	(In Millions)
	Derivative Assets						Derivative Liabilities
	June 30, 2012			December 31, 2011			June 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 (current)	$	10.1	Derivative assets (current)	$	5.2	Other current liabilities	$	9.5	Other current liabilities	$	3.5

Total derivatives designated as hedging instruments under ASC 815		$	10.1		$	5.2		$	9.5		$	3.5

Derivatives not designated as hedging instruments under ASC 815:
Foreign Exchange Contracts	Derivative assets (current)	$	-	Derivative assets (current)	$	2.8		$	-		$	-
Customer Supply Agreements	Derivative assets (current)		61.4	Derivative assets (current)		72.9			-			-
Provisional Pricing Arrangements	Derivative assets (current)		3.3	Derivative assets (current)		1.2	Other current liabilities		15.8	Other current liabilities		19.5
	Accounts receivable		19.2	Accounts receivable		83.8			-			-

Total derivatives not designated as hedging instruments under ASC 815		$	83.9		$	160.7		$	15.8		$	19.5

Total derivatives		$	94.0		$	165.9		$	25.3		$	23.0

Schedule Of Derivative Gains (Losses) Recognized In Accumulated Other Comprehensive Income


	(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 (Loss) Reclassified from Accumulated OCI into Income
Hedging Relationships	(Effective Portion)					(Effective Portion)	(Effective Portion)
	Three months ended June 30,						Three months ended June 30,
	2012			2011			2012			2011
Australian Dollar Foreign Exchange Contracts (hedge designation)	$	2.1		$	3.0	Product revenue	$	(0.4	)	$	0.8
Canadian Dollar Foreign Exchange Contracts (hedge designation)		(5.9	)		—	Cost of goods sold and operating expenses		(0.2	)		—
Australian Dollar Foreign Exchange Contracts (prior to de-designation)		—			—	Product revenue		—			0.5

Total	$	(3.8	)	$	3.0		$	(0.6	)	$	1.3


	Six months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
Australian Dollar Foreign Exchange Contracts (hedge designation)	$	5.1		$	4.9	Product revenue	$	2.7		$	1.0
Canadian Dollar Foreign Exchange Contracts (hedge designation)		(5.2	)		—	Cost of goods sold and operating expenses		0.3			—
Australian Dollar Foreign Exchange Contracts (prior to de-designation)		—			—	Product revenue		—			0.7

Total	$	(0.1	)	$	4.9		$	3.0		$	1.7

Schedule Of Derivatives Not Designated As Hedging Instruments Statements Of Financial Performance Location Table


(In Millions)
Derivatives Not Designated as Hedging Instruments	Location of Gain Recognized in Income on Derivative	Amount of Gain Recognized in Income on Derivative
		Three Months Ended June 30,				Six Months Ended June 30,
		2012		2011		2012		2011
Foreign Exchange Contracts	Product Revenues	$	-	$	2.6	$	-	$	3.2
Foreign Exchange Contracts	Other Income (Expense)		-		48.5		0.3		104.5
Customer Supply Agreements	Product Revenues		42.6		46.5		82.0		71.1
Provisional Pricing Arrangements	Product Revenues		98.3		289.4		98.3		309.4

Total		$	140.9	$	387.0	$	180.6	$	488.2

- 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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