Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.20.2
FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value, by Balance Sheet Grouping
The following represents the assets and liabilities measured at fair value:
 
(In Millions)
 
June 30, 2020
 
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 - Money market funds
$
21.8

 
$
—

 
$
—

 
$
21.8

Other current assets:
 
 
 
 
 
 
 
Commodity contracts
—

 
5.4

 
—

 
5.4

Customer supply agreement
—

 
—

 
27.3

 
27.3

Provisional pricing arrangement
—

 
—

 
8.0

 
8.0

Other non-current assets:
 
 
 
 
 
 
 
Commodity contracts
—

 
0.7

 
—

 
0.7

     Total
$
21.8

 
$
6.1

 
$
35.3

 
$
63.2

Liabilities:
 
 
 
 
 
 
 
Other current liabilities:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
(17.2
)
 
$
—

 
$
(17.2
)
Foreign exchange contracts
—

 
(1.0
)
 
—

 
(1.0
)
Other non-current liabilities:
 
 
 
 
 
 
 
Commodity contracts
—

 
(1.1
)
 
—

 
(1.1
)
Foreign exchange contracts
—

 
(0.4
)
 
—

 
(0.4
)
     Total
$
—

 
$
(19.7
)
 
$
—

 
$
(19.7
)
 
(In Millions)
 
December 31, 2019
 
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 - Commercial paper
$
—

 
$
187.6

 
$
—

 
$
187.6

Other current assets:
 
 
 
 
 
 
 
Customer supply agreement
—

 
—

 
44.5

 
44.5

Provisional pricing arrangement
—

 
—

 
1.3

 
1.3

Total
$
—

 
$
187.6

 
$
45.8

 
$
233.4

Liabilities:
 
 
 
 
 
 
 
Other current liabilities:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
(3.2
)
 
$
—

 
$
(3.2
)
Provisional pricing arrangement
—

 
—

 
(1.1
)
 
(1.1
)
Total
$
—

 
$
(3.2
)
 
$
(1.1
)
 
$
(4.3
)

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
 
 
 
Fair Value at June 30, 2020
(In Millions)
 
Balance Sheet
Location
 
Valuation Technique
 
Unobservable Input
 
Range or Point Estimate (Weighted Average)
 
 
Customer supply agreement
 
$
27.3

 
Other current assets
 
Market Approach
 
Management's estimate of hot-rolled coil steel price per net ton
 
$562 - $639
$(564)
 
Provisional pricing arrangements
 
$
8.0

 
Other current assets
 
Market Approach
 
Management's
estimate of Platts 62% price per dry metric ton
 
$94
 
 
 
 
 
Atlantic Basin Pellet Premium
 
$32

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):
 
(In Millions)
 
Level 3 Assets
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Beginning balance
$
19.6

 
$
106.7

 
$
45.8

 
$
91.4

Total gains included in earnings
40.0

 
74.3

 
13.8

 
89.6

Settlements
(24.3
)
 
(62.9
)
 
(24.3
)
 
(62.9
)
Ending balance
$
35.3

 
$
118.1

 
$
35.3

 
$
118.1

Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date
$
33.6

 
$
73.0

 
$
13.6

 
$
88.3


Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
 
(In Millions)
 
Level 3 Liabilities
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Beginning balance
$
—

 
$
(9.8
)
 
$
(1.1
)
 
$
—

Total gains (losses) included in earnings
—

 
4.5

 
(0.6
)
 
(5.3
)
Settlements
—

 
5.3

 
1.7

 
5.3

Ending balance
$
—

 
$
—

 
$
—

 
$
—


Schedule Of Carrying Value And Fair Value Of Financial Instruments A summary of the carrying value and fair value of other financial instruments were as follows:
 
 
 
(In Millions)
 
 
 
June 30, 2020
 
December 31, 2019
 
Classification
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Long-term debt:
 
 
 
 
 
 
 
 
 
Senior Notes
Level 1
 
$
3,807.3

 
$
3,681.8

 
$
2,113.8

 
$
2,237.0

IRBs due 2024 to 2028
Level 1
 
94.3

 
86.0

 
—

 
—

ABL Facility - outstanding balance
Level 2
 
550.0

 
550.0

 
—

 
—

Total long-term debt
 
 
$
4,451.6

 
$
4,317.8

 
$
2,113.8

 
$
2,237.0