Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

v2.4.0.8
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2014
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 March 31, 2014 and December 31, 2013:
 
(In Millions)
 
March 31, 2014
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
$
134.0

 
$
—

 
$
—

 
$
134.0

Derivative assets
—

 
0.6

 
43.3

 
43.9

Available-for-sale marketable securities
33.2

 
—

 
—

 
33.2

Foreign exchange contracts
—

 
4.1

 
—

 
4.1

Total
$
167.2

 
$
4.7

 
$
43.3

 
$
215.2

Liabilities:

 

 

 

Derivative liabilities
$
—

 
$
0.4

 
$
7.4

 
$
7.8

Foreign exchange contracts
—

 
17.0

 
—

 
17.0

Total
$
—

 
$
17.4

 
$
7.4

 
$
24.8

 
(In Millions)
 
December 31, 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
Assets:
 
 
 
 
 
 
 
Cash equivalents
$
85.0

 
$
—

 
$
—

 
$
85.0

Derivative assets
—

 
—

 
58.9

 
58.9

Available-for-sale marketable securities
21.4

 
—

 
—

 
21.4

Foreign exchange contracts
—

 
0.3

 
—

 
0.3

Total
$
106.4

 
$
0.3

 
$
58.9

 
$
165.6

Liabilities:

 

 

 

Derivative liabilities
$
—

 
$
2.1

 
$
10.3

 
$
12.4

Foreign exchange contracts
—

 
26.9

 
—

 
26.9

Total
$
—

 
$
29.0

 
$
10.3

 
$
39.3

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:
Qualitative/Quantitative Information About Level 3 Fair Value Measurements
($ in millions)
 
Fair Value at March 31, 2014
 
Balance Sheet Location
 
Valuation Technique
 
Unobservable Input
 
Range or Point Estimate
(Weighted Average)
 
Provisional Pricing Arrangements
 
$
1.3

 
Derivative assets
 
Market Approach
 
Management's
Estimate of 62% Fe
 
$117
 
 
$
7.4

 
Derivative liabilities
 
 
 
 
 
 
Customer Supply Agreement
 
$
42.0

 
Derivative assets
 
Market Approach
 
Hot-Rolled Steel Estimate
 
$625 - $660 ($645)
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 months ended March 31, 2014 and 2013.
 
(In Millions)
 
Derivative Assets (Level 3)
 
Three Months Ended
March 31,
 
2014
 
2013
Beginning balance
$
58.9

 
$
62.4

Total gains
 
 
 
Included in earnings
29.0

 
28.0

Settlements
(44.6
)
 
(37.1
)
Transfers into Level 3
—

 
—

Transfers out of Level 3
—

 
—

Ending balance - March 31
$
43.3

 
$
53.3

Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date
$
29.0

 
$
28.0

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
 
(In Millions)
 
Derivative Liabilities (Level 3)
 
Three Months Ended
March 31,
 
2014
 
2013
Beginning balance
$
(10.3
)
 
$
(11.3
)
Total gains
 
 
 
Included in earnings
(7.4
)
 
(6.8
)
Settlements
10.3

 
11.3

Transfers into Level 3
—

 
—

Transfers out of Level 3
—

 
—

Ending balance - March 31
$
(7.4
)
 
$
(6.8
)
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date
$
(7.4
)
 
$
(6.8
)
Schedule Of Carrying Value And Fair Value Of Financial Instruments
A summary of the carrying amount and fair value of other financial instruments at March 31, 2014 and December 31, 2013 were as follows:
 
 
 
(In Millions)
 
 
 
March 31, 2014
 
December 31, 2013
 
Classification
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Long-term debt:
 
 
 
 
 
 
 
 
 
Senior notes—$700 million
Level 2
 
$
699.5

 
$
743.0

 
$
699.4

 
$
718.2

Senior notes—$1.3 billion
Level 2
 
1,289.8

 
1,504.8

 
1,289.6

 
1,404.9

Senior notes—$400 million
Level 2
 
398.5

 
442.0

 
398.4

 
432.1

Senior notes—$500 million
Level 2
 
496.7

 
528.0

 
496.5

 
523.8

Revolving loan
Level 2
 
175.0

 
175.0

 
—

 
—

Equipment loan facilities
Level 2
 
135.3

 
135.3

 
140.8

 
140.8

Fair value adjustment to interest rate hedge
Level 2
 
—

 
—

 
(2.1
)
 
(2.1
)
Total long-term debt
 
 
$
3,194.8

 
$
3,528.1

 
$
3,022.6

 
$
3,217.7

Fair Value Measurements, Nonrecurring
The following table presents information about the impairment charges on both financial and nonfinancial assets that were measured on a fair value basis at December 31, 2013. The table also indicates the fair value hierarchy of the valuation techniques used to determine such fair value. We had no financial assets and liabilities measured at fair value on a non-recurring basis at March 31, 2014.
 
 
(In Millions)
 
 
December 31, 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
 
Total Losses
Assets:
 
 
 
 
 
 
 
 
 
 
Goodwill impairment -
Ferroalloys reporting unit
 
$
—

 
$
—

 
$
—

 
$
—

 
$
80.9

Other long-lived assets -
Property, plant and equipment
 
—

 
—

 
46.3

 
46.3

 
155.4

Other long-lived assets -
Intangibles and long-term
deposits
 
—

 
—

 
1.6

 
1.6

 
14.5

Investment in ventures
    impairment - Amapá
 
—

 
—

 
—

 
—

 
67.6

 
 
$
—

 
$
—

 
$
47.9

 
$
47.9

 
$
318.4