Annual report [Section 13 and 15(d), not S-K Item 405]

DERIVATIVE INSTRUMENTS AND HEDGING

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DERIVATIVE INSTRUMENTS AND HEDGING
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging
NOTE 15 - DERIVATIVE INSTRUMENTS AND HEDGING
We are exposed to price risk associated with fluctuations in the market prices of purchased raw materials and energy sources and the sales price of certain steel products. We may use cash-settled commodity purchase swaps to hedge the market risk associated with the purchase of certain of our raw materials and energy requirements and cash-settled sales swaps to hedge the sales price risk of certain steel products. Our hedging strategy is to reduce the effect on earnings from the price volatility of these various exposures.
Our commodity purchase swaps are designated as cash flow hedges for accounting purposes, and we record the gains and losses for the derivatives in Accumulated other comprehensive income until we reclassify them into Cost of goods sold when we recognize the associated underlying operating costs. Impacts of our designated commodity purchase swaps are reflected within Other, net in the Statements of Consolidated Cash Flows. Refer to NOTE 17 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) for further information.
Our commodity purchase swaps are classified as Level 2 as values were determined using a market approach based upon quoted prices for similar assets in active markets or other inputs that were observable.
The following table presents the notional amount of our outstanding commodity purchase swaps:
Notional Amount
December 31,
Commodity Purchase Swaps Unit of Measure Maturity Dates 2024 2023
Natural Gas MMBtu January 2025 - August 2027 143,250,000 168,590,000
Electricity Megawatt hours January 2025 - October 2027 3,224,227 3,501,898
At December 31, 2024, we estimate $68 million of net losses related to our commodity purchase swaps will reclassify from Accumulated other comprehensive income into Cost of goods sold during the next 12 months. These estimates are based on December 31, 2024 fair values, some of which will change before their actual reclassification into Cost of goods sold.
The following table presents the fair value of our cash flow hedges and the classification on the Statements of Consolidated Financial Position:
December 31,
Balance Sheet Location (In millions) 2024 2023
Other current assets $ 5  $ — 
Other non-current assets 9  1 
Other current liabilities (41) (105)
Other non-current liabilities (6) (52)
FOREIGN CURRENCY CONTRACTS
On July 15, 2024, we announced that we had entered into the Arrangement Agreement with Stelco Holdings Inc. to acquire all of its common shares in a cash and stock transaction. We hedged a portion of the purchase price by entering into multiple foreign currency contracts. These hedge contracts were considered economic hedges and did not qualify for hedge accounting. During the year ended December 31, 2024, these contracts resulted in a loss of $29 million presented in Other non-operating income (loss) in the Statements of Consolidated Operations and in Other investing activities in the Statements of Consolidated Cash Flows. As of December 31, 2024, no foreign currency contracts are outstanding.