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, 2012


	(In Millions)
	June 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:
Cash equivalents	$	25.0	$	-	$	-		$	25.0
Derivative assets		-		-		83.9	(1)		83.9
International marketable securities		25.0		-		-			25.0
Foreign exchange contracts		-		10.1		-			10.1

Total	$	50.0	$	10.1	$	83.9		$	144.0

Liabilities:
Derivative liabilities	$	-	$	-	$	15.8		$	15.8
Foreign exchange contracts		-		9.5		-			9.5

Total	$	-	$	9.5	$	15.8		$	25.3


	(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 $19.2 million and $83.8 million, respectively, classified as Accounts receivable in the Statement of Unaudited Condensed Consolidated Financial Position as of June 30, 2012 and 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

Quantitative Information About Level 3 Fair Value Measurements

($ in millions)

Fair Value at
6/30/12

Balance Sheet
Location

Valuation
Technique

Unobservable
Input

Range
(Weighted
Average)

Provisional Pricing Arrangement

3.3

Derivative Assets

Market Approach

Managements
Estimate of 62% Fe

$140-$160 ($148)

19.2

Accounts receivable

15.8

Other current liabilities

Customer Supply Agreement

61.4

Derivative Assets

Market Approach

Hot-Rolled Steel

Estimate

$650-$775 ($675)

Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation


	(In Millions)
	Derivative Assets (Level 3)
	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Beginning balance	$	69.2	$	68.1	$	157.9	$	45.6
Total gains
Included in earnings		61.4		46.5		104.7		91.1
Included in other comprehensive income		-		-		-		-
Settlements		(46.7)		(30.6)		(178.7)		(52.7)
Transfers into Level 3		-		-		-
Transfers out of Level 3		-		(20.0)		-		(20.0)

Ending balance - June 30	$	83.9	$	64.0	$	83.9	$	64.0

Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date	$	61.4	$	46.5	$	104.7	$	91.1

Fair Value, Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation


	(In Millions)
	Derivative Assets (Level 3)
	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Beginning balance	$	69.2	$	68.1	$	157.9	$	45.6
Total gains
Included in earnings		61.4		46.5		104.7		91.1
Included in other comprehensive income		-		-		-		-
Settlements		(46.7)		(30.6)		(178.7)		(52.7)
Transfers into Level 3		-		-		-
Transfers out of Level 3		-		(20.0)		-		(20.0)

Ending balance - June 30	$	83.9	$	64.0	$	83.9	$	64.0

Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date	$	61.4	$	46.5	$	104.7	$	91.1


	(In Millions)
	Derivative Liabilities (Level 3)
	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Beginning balance	$	(1.1)	$	-	$	(19.5)	$	-
Total losses
Included in earnings		(14.7)		-		(15.8)		-
Included in other comprehensive income		-		-		-		-
Settlements		-		-		19.5		-
Transfers into Level 3		-				-
Transfers out of Level 3		-		-		-		-

Ending balance - June 30	$	(15.8)	$	-	$	(15.8)	$	-

Total losses for the period included in earnings attributable to the change in unrealized losses on assets still held at the reporting date	$	(14.7)	$	-	$	(15.8)	$	-

Carrying Value And Fair Value Of Financial Instruments Disclosure


			(In Millions)
			June 30, 2012				December 31, 2011
	Classification		Carrying Value		Fair Value		Carrying Value		Fair Value
Receivables:
Customer supplemental payments		Level 2	$	11.1	$	10.5	$	22.3	$	20.8
ArcelorMittal USA—Receivable		Level 2		23.0		26.2		26.5		30.7
Other		Level 2		10.1		10.1		10.0		10.0

Total receivables			$	44.2	$	46.8	$	58.8	$	61.5

Long-term debt:
Term loan—$1.25 billion		Level 2	$	847.3	$	847.3	$	897.2	$	897.2
Senior notes—$700 million		Level 2		699.4		753.8		699.3		726.4
Senior notes—$1.3 billion		Level 2		1,289.3		1,526.4		1,289.2		1,399.4
Senior notes—$400 million		Level 2		398.1		461.5		398.0		448.8
Senior notes—$55 million		Level 2		55.0		62.1		325.0		348.7
Revolving loan		Level 2		325.0		325.0		—		—

Total long-term debt			$	3,614.1	$	3,976.1	$	3,608.7	$	3,820.5

- 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 (loss), 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, issues, 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 10

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-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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-SubTopic 10

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-Name Accounting Standards Codification

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-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

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-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

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-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

Reference 12: http://www.xbrl.org/2003/role/presentationRef

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-Section 50

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-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

+ Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes 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 (loss) 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, issues, 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 liability.

+ References + Details