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FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended
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Dec. 31, 2016
Fair Value Disclosures [Abstract] |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS The following represents the assets and liabilities of the Company measured at fair value at December 31, 2016 and 2015:
| (In Millions)
| December 31, 2016
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 | $ | 177.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 177.0 |
Derivative assets | — |  |  | 1.5 |  |  | 31.6 |  |  | 33.1 |
Total | $ | 177.0 |  |  | $ | 1.5 |  |  | $ | 31.6 |  |  | $ | 210.1 |
Liabilities: |  |  |  |  |  |  |
Derivative liabilities | $ | — |  |  | $ | — |  |  | $ | 0.5 |  |  | $ | 0.5 |
Total | $ | — |  |  | $ | — |  |  | $ | 0.5 |  |  | $ | 0.5 |
| (In Millions)
| December 31, 2015
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 | $ | 30.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 30.0 |
Derivative assets | — |  |  | — |  |  | 7.8 |  |  | 7.8 |
Total | $ | 30.0 |  |  | $ | — |  |  | $ | 7.8 |  |  | $ | 37.8 |
Liabilities: |  |  |  |  |  |  |
Derivative liabilities | $ | — |  |  | $ | 0.6 |  |  | $ | 3.4 |  |  | $ | 4.0 |
Total | $ | — |  |  | $ | 0.6 |  |  | $ | 3.4 |  |  | $ | 4.0 |
Financial assets classified in Level 1 as of December 31, 2016 and December 31, 2015, include money market funds, which are included in Cash and cash equivalents. The valuation of these instruments is based upon unadjusted quoted prices for identical assets in active markets. The valuation of financial assets and liabilities classified in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable. At December 31, 2016 and December 31, 2015, such derivative financial instruments included our commodity hedge contracts. The derivative financial assets classified within Level 3 at December 31, 2016 and December 31, 2015 primarily relate to a freestanding derivative instrument related to certain supply agreements with one of our U.S. Iron Ore customers. The agreements include provisions for supplemental revenue or refunds based on the customer’s annual steel pricing at the time the product is consumed in the customer’s blast furnaces. We account for this provision as a derivative instrument at the time of sale and adjust this provision to fair value as an adjustment to Product revenues each reporting period until the product is consumed and the amounts are settled. The fair value of the instrument is determined using a market approach based on an estimate of the annual realized price of hot-rolled coil at the steelmaker’s facilities, and takes into consideration current market conditions and nonperformance risk. The Level 3 derivative assets and liabilities also consisted of derivatives related to certain provisional pricing arrangements with our U.S. Iron Ore and Asia Pacific Iron Ore customers at December 31, 2016 and December 31, 2015. These provisional pricing arrangements specify provisional price calculations, where the pricing mechanisms generally are based on market pricing, with the final revenue rate to be based on market inputs at a specified point in time in the future, per the terms of the supply agreements. The difference between the estimated final revenue at the date of sale and the estimated final revenue rate is characterized as a derivative and is required to be accounted for separately once the revenue has been recognized. The derivative instrument is adjusted to fair value through Product revenues each reporting period based upon current market data and forward-looking estimates provided by management until the final revenue rate is determined. 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 December 31, 2016 |  | Balance Sheet Location |  | Valuation Technique |  | Unobservable Input |  | Range or Point Estimate (Weighted Average)
Provisional Pricing Arrangements |  | $ | 10.3 |  |  | Other current assets |  | Market Approach |  | Management's Estimate of Platts 62% Price |  | $80
| $ | 0.5 |  |  | Other current liabilities |  |  |
Customer Supply Agreement |  | $ | 21.3 |  |  | Other current assets |  | Market Approach |  | Hot-Rolled Coil Estimate |  | $505 - $620 ($555)
The significant unobservable inputs used in the fair value measurement of the reporting entity’s provisional pricing arrangements are management’s estimates of Platts 62% Price based upon current market data, index pricing, and the customer's average annual steel pricing for hot rolled coil, each of which include forward-looking estimates determined by management. Significant increases or decreases in these inputs would result in a significantly higher or lower fair value measurement, respectively. The significant unobservable input used in the fair value measurement of the reporting entity’s customer supply agreement is the future hot-rolled coil price that is estimated based on current market data, analysts' projections, projections provided by the customer and forward-looking estimates determined by management. Significant increases or decreases in this input would result in a significantly higher or lower fair value measurement, respectively. We recognize any transfers between levels as of the beginning of the reporting period, including both transfers into and out of levels. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the years ended December 31, 2016 and 2015. 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 years ended December 31, 2016 and 2015.
| (In Millions)
| Derivative Assets (Level 3) |  | Derivative Liabilities (Level 3)
| Year Ended December 31, |  | Year Ended December 31,
| 2016 |  | 2015 |  | 2016 |  | 2015
Beginning balance - January 1 | $ | 7.8 |  |  | $ | 63.2 |  |  | $ | (3.4 | ) |  | $ | (9.5 | )
Total gains (losses) |  |  |  |  |  |  |
Included in earnings | 103.8 |  |  | 35.1 |  |  | (14.1 | ) |  | (61.0 | )
Settlements | (80.0 | ) |  | (90.5 | ) |  | 17.0 |  |  | 67.1 |
Transfers into Level 3 | — |  |  | — |  |  | — |  |  | — |
Transfers out of Level 3 | — |  |  | — |  |  | — |  |  | — |
Ending balance - December 31 | $ | 31.6 |  |  | $ | 7.8 |  |  | $ | (0.5 | ) |  | $ | (3.4 | )
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 | $ | 23.7 |  |  | $ | 29.1 |  |  | $ | (0.5 | ) |  | $ | (3.4 | )
Gains and losses included in earnings are reported in Product revenues in the Statements of Consolidated Operations for the years ended December 31, 2016 and 2015. The carrying amount for certain financial instruments (e.g. Accounts receivable, net, Accounts payable and Accrued expenses) approximate fair value and, therefore, have been excluded from the table below. A summary of the carrying amount and fair value of other financial instruments at December 31, 2016 and 2015 were as follows:
|  |  | (In Millions)
|  |  | December 31, 2016 |  | December 31, 2015
| Classification |  | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Long-term debt: |  |  |  |  |  |  |  |  |
Secured Notes |  |  |  |  |  |  |  |  |
Senior First Lien Notes—$540 million | Level 1 |  | $ | 506.3 |  |  | $ | 595.0 |  |  | $ | 497.4 |  |  | $ | 414.5 |
1.5 Senior Lien Notes—$218 million | Level 2 |  | 284.2 |  |  | 229.5 |  |  | — |  |  | — |
Senior Second Lien Notes—$544.2 million | Level 1 |  | 339.1 |  |  | 439.7 |  |  | 403.2 |  |  | 134.7 |
Unsecured Notes |  |  |  |  |  |  |  |  |
Senior Notes—$400 million | Level 1 |  | 224.5 |  |  | 219.6 |  |  | 288.9 |  |  | 52.8 |
Senior Notes—$1.3 billion | Level 1 |  | 528.4 |  |  | 455.8 |  |  | 787.9 |  |  | 137.4 |
Senior Notes—$700 million | Level 1 |  | 308.2 |  |  | 283.1 |  |  | 410.6 |  |  | 69.4 |
Senior Notes—$500 million | Level 1 |  | — |  |  | — |  |  | 309.1 |  |  | 87.1 |
ABL Facility | Level 2 |  | — |  |  | — |  |  | — |  |  | — |
Fair Value Adjustment to Interest Rate Hedge | Level 2 |  | 1.9 |  |  | 1.9 |  |  | 2.3 |  |  | 2.3 |
Total long-term debt |  |  | $ | 2,192.6 |  |  | $ | 2,224.6 |  |  | $ | 2,699.4 |  |  | $ | 898.2 |
The fair value of long-term debt was determined using quoted market prices or discounted cash flows based upon current borrowing rates. Items Measured at Fair Value on a Non-Recurring Basis There were no financial and non-financial assets and liabilities that were measured on a non-recurring fair value basis at December 31, 2016 and 2015.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
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