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Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.20.2
FAIR VALUE MEASUREMENTS (Tables)
9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract] Ìý
Fair Value, by Balance Sheet Grouping The following represents the assets and liabilities measured at fair value:
(In Millions)
September 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:
Other current assets:
Commodity contracts $ —Ìý $ 15.8Ìý $ —Ìý $ 15.8Ìý
Customer supply agreement —Ìý —Ìý 34.5Ìý 34.5Ìý
Provisional pricing arrangement —Ìý —Ìý 26.9Ìý 26.9Ìý
Other non-current assets:
Commodity contracts —Ìý 1.8Ìý —Ìý 1.8Ìý
ÌýÌýÌýÌýÌýTotal $ —Ìý $ 17.6Ìý $ 61.4Ìý $ 79.0Ìý
Liabilities:
Other current liabilities:
Commodity contracts $ —Ìý $ (8.7) $ —Ìý $ (8.7)
Provisional pricing arrangement —Ìý —Ìý (0.3) (0.3)
Foreign exchange contracts —Ìý (0.6) —Ìý (0.6)
Other non-current liabilities:
Foreign exchange contracts —Ìý (0.1) —Ìý (0.1)
ÌýÌýÌýÌýÌýTotal $ —Ìý $ (9.4) $ (0.3) $ (9.7)
(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 $ —Ìý $ 187.6Ìý $ —Ìý $ 187.6Ìý
Other current assets:
Customer supply agreement —Ìý —Ìý 44.5Ìý 44.5Ìý
Provisional pricing arrangement —Ìý —Ìý 1.3Ìý 1.3Ìý
Total $ —Ìý $ 187.6Ìý $ 45.8Ìý $ 233.4Ìý
Liabilities:
Other current liabilities:
Commodity contracts $ —Ìý $ (3.2) $ —Ìý $ (3.2)
Provisional pricing arrangement —Ìý —Ìý (1.1) (1.1)
Total $ —Ìý $ (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 September 30, 2020
(In Millions)
Balance Sheet
Location
Valuation Technique Unobservable Input Range or Point Estimate (Weighted Average)
Customer supply agreement $ 34.5Ìý Other current assets Market Approach Management's estimate of hot-rolled coil steel price per net ton
$542 - $634
$(548)
Provisional pricing arrangements $ 26.9Ìý Other current assets Market Approach Management's
estimate of Platts 62% Price per dry metric ton
$104 - $123
($105)
Atlantic Basin Pellet Premium $30
Provisional pricing arrangements $ (0.3) Other current liabilities Market Approach Management's
estimate of Platts 62% Price per dry metric ton
$104
PPI Estimates 110
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
September 30,
Nine Months Ended
September 30,
2020 2019 2020 2019
Beginning balance $ 35.3Ìý $ 118.1Ìý $ 45.8Ìý $ 91.4Ìý
Total gains (losses) included in earnings 29.5Ìý (6.5) 43.3Ìý 83.1Ìý
Settlements (3.4) (38.8) (27.7) (101.7)
Ending balance $ 61.4Ìý $ 72.8Ìý $ 61.4Ìý $ 72.8Ìý
Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) on assets still held at the reporting date $ 27.8Ìý $ (6.5) $ 40.4Ìý $ 81.8Ìý
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
(In Millions)
Level 3 Liabilities
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020 2019 2020 2019
Beginning balance $ —Ìý $ —Ìý $ (1.1) $ —Ìý
Total losses included in earnings (0.3) (34.4) (0.9) (39.7)
Settlements —Ìý 4.2Ìý 1.7Ìý 9.5Ìý
Ending balance $ (0.3) $ (30.2) $ (0.3) $ (30.2)
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date $ (0.3) $ (30.2) $ (0.3) $ (30.2)
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)
September 30, 2020 December 31, 2019
Classification
Carrying
Value
Fair Value
Carrying
Value
Fair Value
Long-term debt:
Senior Notes Level 1 $ 3,815.5Ìý $ 3,975.2Ìý $ 2,113.8Ìý $ 2,237.0Ìý
IRBs due 2024 to 2028 Level 1 94.3Ìý 90.2Ìý —Ìý —Ìý
ABL Facility - outstanding balance Level 2 400.0Ìý 400.0Ìý —Ìý —Ìý
Total long-term debt $ 4,309.8Ìý $ 4,465.4Ìý $ 2,113.8Ìý $ 2,237.0Ìý