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Annual report pursuant to Section 13 and 15(d)

FAIR VALUE OF FINANCIAL INSTRUMENTS

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FAIR VALUE OF FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract] Ìý
FAIR VALUE OF FINANCIAL INSTRUMENTS
NOTE 9 - FAIR VALUE OF FINANCIAL INSTRUMENTS
There were no significant assets or liabilities measured at fair value as of DecemberÌý31, 2021 or DecemberÌý31, 2020.
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
2021 2020
Beginning balance - January 1 $ —Ìý $ 45Ìý
Total gains included in earnings —Ìý 122Ìý
Settlements —Ìý (27)
Settlement of pre-existing relationship —Ìý (140)
Ending balance - December 31 $ —Ìý $ —Ìý
Total gains for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date $ —Ìý $ —Ìý
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, 2021 December 31, 2020
Classification Carrying
Value		 Fair Value Carrying
Value		 Fair Value
Senior notes Level 1 $ 3,561Ìý $ 3,911Ìý $ 3,802Ìý $ 4,446Ìý
IRBs due 2024 to 2028 Level 1 68Ìý 66Ìý 94Ìý 91Ìý
EDC Revolving Facility - outstanding balance Level 2 —Ìý —Ìý 18Ìý 18Ìý
ABL Facility - outstanding balance Level 2 1,609Ìý 1,609Ìý 1,510Ìý 1,510Ìý
Total $ 5,238Ìý $ 5,586Ìý $ 5,424Ìý $ 6,065Ìý
The fair value of both current and long-term debt was determined using quoted market prices.