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Annual report pursuant to Section 13 and 15(d)

FAIR VALUE OF FINANCIAL INSTRUMENTS

v3.20.4
FAIR VALUE OF FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract] Ìý
FAIR VALUE OF FINANCIAL INSTRUMENTS
There were no significant assets or liabilities measured at fair value as of DecemberÌý31, 2020. The following represents the assets and liabilities measured at fair value as of DecemberÌý31, 2019:
(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 $ —Ìý $ 188Ìý $ —Ìý $ 188Ìý
Other current assets:
Customer supply agreement —Ìý —Ìý 45Ìý 45Ìý
Total $ —Ìý $ 188Ìý $ 45Ìý $ 233Ìý
The valuation of financial assets classified in Level 2 was determined using a market approach based upon quoted prices for similar assets in active markets, or other inputs that were observable.
Our supply agreement with ArcelorMittal USA contained provisions for supplemental revenue or refunds based on the HRC price in the year the iron ore product was consumed in ArcelorMittal USA’s blast furnaces. We accounted for these provisions as derivative instruments at the time of sale and adjusted the derivative instruments to fair value through Revenues each reporting period until the product was consumed and the amounts were settled. These instruments were classified as Level 3 assets. Upon the completion of the AM USA Transaction, the outstanding derivatives were settled as part of acquisition accounting.
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
2020 2019
Beginning balance - January 1 $ 45Ìý $ 89Ìý
Total gains included in earnings 122Ìý 79Ìý
Settlements (27) (123)
Settlement of pre-existing relationship (140) —Ìý
Ending balance - December 31 $ —Ìý $ 45Ìý
Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date $ —Ìý $ 45Ìý
The carrying values of certain financial instruments (e.g. Accounts receivable, net, Accounts payable and Other current liabilities) approximate fair value and, therefore, have been excluded from the table below. A summary of the carrying value and fair value of other financial instruments were as follows:
(In Millions)
December 31, 2020 December 31, 2019
Classification Carrying
Value		 Fair Value Carrying
Value		 Fair Value
Senior notes Level 1 $ 3,802Ìý $ 4,446Ìý $ 2,114Ìý $ 2,237Ìý
IRBs due 2024 to 2028 Level 1 94Ìý 91Ìý —Ìý —Ìý
EDC Revolving Facility - outstanding balance Level 2 18Ìý 18Ìý —Ìý —Ìý
ABL Facility - outstanding balance Level 2 1,510Ìý 1,510Ìý —Ìý —Ìý
Total $ 5,424Ìý $ 6,065Ìý $ 2,114Ìý $ 2,237Ìý
The fair value of both current and long-term debt was determined using quoted market prices.