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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
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9 Months Ended |
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Sep. 30, 2013
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| Fair Value Disclosures [Abstract] |
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| Fair Value Of Assets And Liabilities |
The following represents the assets and liabilities of the Company measured at fair value at September 30, 2013 and December 31, 2012:
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(In Millions) |
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September 30, 2013 |
Description |
Quoted Prices in Active
Markets for Identical Assets/Liabilities
(Level 1)
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Significant Other Observable Inputs
(Level 2)
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Significant Unobservable Inputs
(Level 3)
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Total |
Assets: |
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Cash equivalents |
$ |
192.0 |
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$ |
— |
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$ |
— |
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$ |
192.0 |
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Derivative assets |
— |
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|
1.7 |
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|
66.7 |
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68.4 |
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Marketable securities |
26.7 |
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— |
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— |
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26.7 |
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Foreign exchange contracts |
— |
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4.3 |
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— |
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4.3 |
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Total |
$ |
218.7 |
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$ |
6.0 |
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$ |
66.7 |
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$ |
291.4 |
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Liabilities: |
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Derivative liabilities |
$ |
— |
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$ |
2.7 |
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$ |
11.4 |
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$ |
14.1 |
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Foreign exchange contracts |
— |
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22.0 |
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— |
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22.0 |
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Total |
$ |
— |
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$ |
24.7 |
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|
$ |
11.4 |
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$ |
36.1 |
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(In Millions) |
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December 31, 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: |
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Cash equivalents |
$ |
100.0 |
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|
$ |
— |
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|
$ |
— |
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|
$ |
100.0 |
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Derivative assets |
— |
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|
— |
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|
62.4 |
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62.4 |
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Marketable securities |
27.0 |
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— |
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— |
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27.0 |
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Foreign exchange contracts |
— |
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16.2 |
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— |
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16.2 |
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Total |
$ |
127.0 |
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$ |
16.2 |
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$ |
62.4 |
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$ |
205.6 |
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Liabilities: |
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Derivative liabilities |
$ |
— |
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$ |
— |
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$ |
11.3 |
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$ |
11.3 |
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Foreign exchange contracts |
— |
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1.9 |
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— |
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1.9 |
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Total |
$ |
— |
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$ |
1.9 |
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$ |
11.3 |
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$ |
13.2 |
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| Fair Value, Recurring and Nonrecurring, Valuation Techniques |
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:
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Qualitative/Quantitative Information About Level 3 Fair Value Measurements |
($ in millions) |
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Fair Value at |
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Balance Sheet Location |
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Valuation Technique |
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Unobservable Input |
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Range or Point Estimate
(Weighted Average)
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9/30/2013 |
Provisional Pricing Arrangements |
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$ |
4.6 |
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Derivative assets |
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Market Approach |
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Management's
Estimate of 62% Fe
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$131 |
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$ |
11.4 |
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Derivative liabilities |
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Customer Supply Agreement |
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$ |
62.1 |
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Derivative assets |
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Market Approach |
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Hot-Rolled Steel Estimate |
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$590 - $660 ($630) |
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| Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation |
The following tables represent 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, 2013 and 2012.
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(In Millions) |
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Derivative Assets (Level 3) |
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2013 |
|
2012 |
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2013 |
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2012 |
Beginning balance |
$ |
45.1 |
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$ |
83.9 |
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$ |
62.4 |
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$ |
157.9 |
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Total gains |
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Included in earnings |
57.6 |
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24.9 |
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118.0 |
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129.6 |
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Settlements |
(36.0 |
) |
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(52.9 |
) |
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(113.7 |
) |
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(231.6 |
) |
Transfers into Level 3 |
— |
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— |
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— |
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— |
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Transfers out of Level 3 |
— |
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— |
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— |
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— |
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Ending balance - September 30 |
$ |
66.7 |
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$ |
55.9 |
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$ |
66.7 |
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$ |
55.9 |
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Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date |
$ |
57.6 |
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$ |
24.9 |
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$ |
118.0 |
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$ |
129.6 |
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| Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation |
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(In Millions) |
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Derivative Liabilities (Level 3) |
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2013 |
|
2012 |
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2013 |
|
2012 |
Beginning balance |
$ |
(32.0 |
) |
|
$ |
(15.8 |
) |
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$ |
(11.3 |
) |
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$ |
(19.5 |
) |
Total gains |
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Included in earnings |
20.6 |
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4.1 |
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(11.4 |
) |
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(11.7 |
) |
Settlements |
— |
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— |
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11.3 |
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19.5 |
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Transfers into Level 3 |
— |
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— |
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— |
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— |
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Transfers out of Level 3 |
— |
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— |
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— |
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— |
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Ending balance - September 30 |
$ |
(11.4 |
) |
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$ |
(11.7 |
) |
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$ |
(11.4 |
) |
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$ |
(11.7 |
) |
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) on liabilities still held at the reporting date |
$ |
20.6 |
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$ |
4.1 |
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$ |
(11.4 |
) |
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$ |
(11.7 |
) |
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| Schedule Of Carrying Value And Fair Value Of Financial Instruments |
A summary of the carrying amount and fair value of other financial instruments at September 30, 2013 and December 31, 2012 were as follows:
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(In Millions) |
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September 30, 2013 |
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December 31, 2012 |
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Classification |
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Carrying
Value
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Fair Value |
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Carrying
Value
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Fair Value |
Other receivables: |
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Customer supplemental payments |
Level 2 |
|
$ |
— |
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$ |
— |
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$ |
22.3 |
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$ |
21.3 |
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ArcelorMittal USA—Receivable |
Level 2 |
|
13.4 |
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14.3 |
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19.3 |
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21.3 |
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Other |
Level 2 |
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10.1 |
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10.1 |
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10.9 |
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10.9 |
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Total receivables |
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$ |
23.5 |
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$ |
24.4 |
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$ |
52.5 |
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$ |
53.5 |
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Long-term debt: |
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Term loan—$1.25 billion |
Level 2 |
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$ |
— |
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$ |
— |
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$ |
753.0 |
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$ |
753.0 |
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Senior notes—$700 million |
Level 2 |
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699.4 |
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719.2 |
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699.4 |
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759.4 |
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Senior notes—$1.3 billion |
Level 2 |
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1,289.6 |
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1,442.2 |
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1,289.4 |
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1,524.7 |
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Senior notes—$400 million |
Level 2 |
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398.4 |
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439.7 |
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398.2 |
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464.3 |
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Senior notes—$500 million |
Level 2 |
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496.3 |
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528.4 |
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495.7 |
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528.4 |
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Revolving loan |
Level 2 |
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380.0 |
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380.0 |
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325.0 |
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325.0 |
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Equipment Loan Facilities |
Level 2 |
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54.2 |
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54.2 |
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— |
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— |
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Fair Value Adjustment to Interest Rate Hedge |
Level 2 |
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1.7 |
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1.7 |
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— |
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— |
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Total long-term debt |
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$ |
3,319.6 |
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$ |
3,565.4 |
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$ |
3,960.7 |
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$ |
4,354.8 |
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| Fair Value Measurements, Nonrecurring |
The following tables present information about the impairment charges on both financial and nonfinancial assets that were measured on a fair value basis at September 30, 2013 and December 31, 2012. The table also indicates the fair value hierarchy of the valuation techniques used to determine such fair value.
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(In Millions) |
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September 30, 2013 |
Description |
|
Quoted Prices in Active
Markets for Identical Assets/
Liabilities
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Total |
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Total Losses |
Assets: |
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Investment in ventures impairment -
Amapá
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— |
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— |
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— |
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$ |
— |
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$ |
67.6 |
|
In light of the March 28, 2013 collapse of the Santana port shiploader and subsequent evaluation of the effect that this event had on the carrying value of our investment in Amapá as of June 30, 2013, we recorded an impairment charge of $67.6 million in the second quarter of 2013.
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(In Millions) |
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December 31, 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: |
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Investment in ventures impairment -
Amapá
|
|
$ |
— |
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$ |
— |
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$ |
72.5 |
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$ |
72.5 |
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